Electronics

Everything “retro” is hot today, and the success of our TV Games line of plug it in and play video game products is evidence of this rebirth. We originally attained TV Games, and other electronics, including radio control vehicles and Laser Challenge™, through our Toymax acquisition, and believed TV Games in particular had the potential to be a fruitful franchise for JAKKS Pacific.

Virtually all of our customers clamored for TV Games, and we also added new retailers, including Best Buy, Circuit City, Urban Outfitters, Saks Fifth Avenue, GameStop and Electronics Boutique. Namco® TV Games with Pac-Man®, and Atari® TV Games were named Toys of the Year by Nick Jr., Family Fun and Toy Wishes magazines, and as one of the most innovative products of 2003 by PC World magazine.

We looked ahead in 2003, and secured top licenses for TV Games. In addition to securing the most beloved classic video game titles, we also aligned with top entertainment properties of today. In summer 2004, we shipped Ms. Pac-Man®, Classic Arcade Pinball™ and an Atari® Paddle TV Games; many additional units are slated for late 2004 and beyond, featuring Spider-Man®, Batman®, Disney® characters, World Poker Tour®, Star Wars® and EA Sports’ Madden NFL ’95; we even developed TV Games Kids, a line of plug it and play activities geared toward young kids. We believe we have positioned TV Games to appeal to a wide audience—from pre-schoolers to college students.

Also in 2003, we launched three new WWE video game titles under our joint venture with THQ® Inc. including WWE™ SmackDown!™ Here Comes the Pain! for the PlayStation®2, which was named Best Fighting Game at Spike TV’s Video Game Awards. We expect to launch several new WWE video titles for multiple platforms in 2004.