It's THQ vs. Electronic Arts

THQ has picked up the World Wrestling Federation license and will go head-to-head at retailers with EA, the new WCW license holder, as early as next year. In effect, it's THQ saying, "Let's get ready to rrrrrrrrumble!" to Electronic Arts.

THQ's contract with World Championship Wrestling (WCW) accounted for more than one-third of the company's revenues last year. So, when THQ lost that license to Electronic Arts earlier this year, THQ's revenues appeared poised to plummet. But a joint venture announced today between THQ and toy maker Jakks Pacific Inc. could change that.

The two companies have formed THQ/Jakks Pacific, a 50/50 joint venture between the two companies. That venture will "design, develop, manufacture, and market electronic games across all platforms" based on Vince McMahon's World Wrestling Federation (WWF). THQ/Jakks signed a ten-year exclusive agreement with Titan Sports Inc., which owns the WWF. The companies plan to release at least two WWF games per year throughout the length of the license.

It will be a while before EA-WCW and THQ-WWF get to go head-to-head, however.

That's because THQ's agreement with WCW runs through Dec. 29, 1998. EA's first WCW title isn't expected until mid-1999.

Acclaim has the current WWF license, and that agreement runs through Nov. 15, 1999. Still, THQ/Jakks expects its first WWF title to hit the market in late 1999.