Licensed games don’t usually stand out for their critical acclaim, but from a business standpoint, games based on popular IP from other entertainment media – whether movies, comics, books or TV – can be quite lucrative. Publisher THQ has been an expert in the field of licensing for many, many years and there are few people in the industry who know more about the strategy behind licensed games than Germaine Gioia. the[a]listdaily picked her brain about marketing licensed games and what strategies should be employed to effectively leverage the licenses THQ works so hard to secure.
[a]list: A good license doesn’t guarantee a good game or sales. What are the hurdles to overcome and keys to operating a solid licensed games business?
Germaine Gioia: Great question. There is certainly never a guarantee …but if you pay for a license, you should be paying for some underlying art, story and an interested, anxiously awaiting audience ready to buy. Ensuring that the property target demographic overlaps squarely with the particular game platform demo is critical. Furthermore, efforts made to deliver some innovative, authentic game play based on the property also can mean the difference between real success, mediocrity or failure. Take THQ’s Core Division’s efforts on behalf of Gamesworkshop’s Warhammer 40k – creating SpaceMarines in 3D and delivering them to the rabid fans of the original table top war gaming universe has met with huge sales success to a very discriminating fan. THQ’s Kid, Family and Casual Division’s game development on behalf of NBC’s Biggest Loser, and truly integrating into the format of the TV series, has been revolutionary. These are great examples of when a good license and the right game development make the ideal combination.
[a]list: How do you identify what properties to go after when you’re searching for licenses?
GG: THQ has been identifying licensed properties for interactive development for decades. We look at it all – movies, TV, toys, comics. All publishers are most interested in brands with cross cultural, global appeal – those are often quite hard to find. We also try to tie in with a major marketing effort – get a game released when a film launches – tie a TV show based game concept in with the show itself. It is also a bit about realizing what you are good at – THQ has quite a lock on fighting with exclusive interactive offerings for the UFC and WWE, as an example. We must maintain only the highest quality, most innovative products there. Fans keep coming back for each new game launch – 10 years and counting for the WWE titles!
[a]list: How crucial is marketing to the licensed games business? How does your marketing strategy change versus marketing for original IP?
GG: One of the strongest attributes a licensed game offers the publisher is the built-in awareness that comes with the underlying property. We still deliver robust marketing campaigns for our licensed games but we are able to leverage the existing awareness built by our TV or book publishing partners. We work very hard to coincide the game launch with the major motion picture release. It all is and should be mutually beneficial.
[a]list: We’ve seen many games with hot licenses ultimately fail at retail. What are some of the big mistakes that publishers have made with licensed games?
GG: THQ has been a leader in delivering entertainment-based games to a primarily younger skewing, family friendly audience since the early 1990s. Now we have a specific business unit – Kids, Family and Casual Division — dedicated to that very audience. Games delivered by this group are timed and priced appropriately for this trend savvy, mass market, licensed driven demo. For the most part, core gaming audiences interested in the latest technology and most beautiful graphics – more the 17+ male, specialty retail target demo — are not the focus of THQ’s movie, TV show and toy-based licensing efforts.
[a]list: We noticed that The Last Airbender is exclusive to Wii and DS. Do you feel that certain licenses are just better suited to certain platforms?
GG: Matching platform demographics to the property audience is simply critical.
[a]list: We’ve seen publishers release movie tie-in games weeks before, weeks after, or in some cases, months after the movie arrives in theaters. What do you believe the best timing strategy is to maximize the market and ROI?
GG: Even in this latest generation, game making is still not an exact science. All publishers of movie based games attempt to tie into the many millions spent on marketing leading up to a major motion picture release. Getting as close to that as possible is the goal.
[a]list: When dealing with Hollywood licenses, how helpful (or hurtful) can the movie studio be to the game’s success? What’s the best approach to leveraging this relationship?
GG: Most studios are in fact very supportive of any interactive efforts. Games are the “new master toy” for the movie property. They are usually eager to deliver assets, approvals, and marketing support in a timely manner whenever possible.
[a]list: THQ has published sequels to Disney/Pixar movie games, like The Incredibles and Cars. Considering that those movies haven’t had sequels, under what circumstances does a game sequel like that get approved?
GG: That alone is a testament to well planned and well executed, licensed game making — extremely creative content to start, solid games targeted squarely at the intended audience, timed perfectly with the film launch, and innovative sequels that keep families coming back again and again. Each of those sequels were very profitable for THQ. We’ve shipped more than seven million units of the original Incredibles game and more than 2.4 million units of the sequel. We’ve shipped over 12 million units of Cars, nearly three million units of Cars Mater National, and another 1.5 million units of the latest release, Cars Race O’Rama, four years after the original film.
[a]list: What are your metrics for success in the licensed games biz? Do they differ from original IP, or good sales are good sales and that’s it?
GG: Of course creating an original game – a successful one – is the beginning of a franchise. Create a great game IP and you are soon selling comics, and toys, and apparel, and soundtracks, and electronics, and blankets and perfume based on the title. Now so much energy is being devoted to ancillary merchandise building – well planned and executed property expansion. This is not exactly the opportunity afforded a publisher creating a game based on another’s IP. There can be some shared efforts, of course. And this is more and more the model – making a property a success in interactive is now leading to participation in ancillary merchandising areas. These are such exciting times for interactive game makers.
[a]list: Looking at THQ today, we know that more emphasis is being placed lately on original IP like Darksiders and Saints Row. Roughly what percentage of THQ’s business is comprised of licensed games? Do you want to maintain this level?
GG: A majority of our revenues today are generated by licensed games, driven primarily by our two fighting franchises. While we plan to continue to build on our success in the fighting category, each of our three business units are focused on growing net sales from owned IPs.
