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May 07, 2008

THQ nabs Marvel's Super Hero Squad. More Marvel games to come?

In tomorrow's Daily Variety: THQ has nabbed a long-term deal to make games based on Marvel's upcoming animated series aimed at little kids: "Super Hero Squad."Marvel_squad

Makes pretty obvious sense for THQ, which has had a lot of success with kids games based on the Nickelodeon and Pixar licenses.

What's notable here is that THQ is banking on a license before it's a success. Well, sort of. Certainly the Marvel heroes are well known. But in their incarnations as brightly colored little guys with big heads, they're new. The "Super Hero Squad" series won't hit TV until 2009 and Marvel doesn't even have a network signed up to air the show yet (though it surely won't have much trouble finding one).

I spoke to THQ CEO Brian Farrell and Marvel's head of videogames Simon Phillips for the story and they both commented that they hope this is the start of a longer-term relationship between the two.

It's especially important since THQ's lucrative deal with Pixar is likely coming to an end. There's "Wall*E" this year, "Up" next year, then in 2010 Disney Interactive is adapting "Toy Story 3," then THQ has "Newt" in 2011 and the deal is up. A lot of people in the industry will be shocked if Disney Interactive doesn't start making all the Pixar-based game after that.

Here are a few other interesting comments from Farrell:

You just made a deal for DreamWorks Animation's 2010 film "Master Mind" and now this. Are you on a new licensing spree?

We're all about building big entertainment brands in the videogame space and we think this Marvel deal is more of what we have done very well. If you look at the Dreamworks deal, I think the reason we won that is execution. They’ve seen that we outperformed "Shrek 3," which is a great videogame property, with "Ratatouille," which isn't obviously one. It's about our ability to understand that younger demo space and execute well on the game, marketing and at retail.

But you recently said on an earnings call that both "Ratatouille" and your Nickelodeon games last year didn't sell as well as you had hoped. What's the reason for that?

If you look at game quality in the kids space, we lead that. Last year, "Ratatouille" was a great film, but didn’t translate well into any consumer products. We've done over 4 million units of "Ratatouille," which a lot of people blown away by for a property that doesn’t translate.

We have a great relationship with NIckelodeon. We’d love to see a new hit property from them.

Your deal for "Master Mind" is just a single movie. But given that DreamWorks Animation's long-term deal with Activision is ending, are you hoping to be their new partner for a while to come?

The "Master Mind" license does include sequel rights, or if becomes series. We don’t like one-off deals. We like long term deals... and to the extent that there's a sequel or a series, it can be long term. For us it’s about building a relationship.

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Well THQ is performing a great job and providing good service to peoples.

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Variety video games reporter and reviews editor Ben Fritz tracks the business of games and their intersection with Hollywood.

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