THQ CEO Brian Farrell has revealed that the company needs to up its portfolio of new IP, after confirming details yet another record fiscal year.

The company secured over $1 billion in revenues during FY2006/2007 – up 27 per cent on the year before. But Farrell has set his sights on areas that need improvement – including an increase in games born from in-house development and THQ owned-IP.

In a comprehensive THQ report, Farrell offered: "Although we believe we have one of the strongest portfolios of licensed franchises, over time we expect revenue from owned intellectual properties to increase at a faster rate than from our licensed properties. We are currently targeting about one third of revenues from owned properties in fiscal 2008, up from 20 per cent in fiscal 2007.”

Farrell added that the company is targeting 50 per cent of revenues to come from internally developed titles in FY2008 – and noted that in FY2007, revenue from these games was up ten per cent year-on-year to 40 per cent.

“THQ’s Studio System, the creative engine behind our success, has never been stronger,” added Farrell.

“We now have more than 1,500 people and 16 studios, up from only 200 people at the start of the last cycle. During the last year, we acquired Paradigm Entertainment, the developers of our highly anticipated Stuntman: Ignition game, and we acquired Mass Media to support our PlayStation 3 development efforts.”

Farrell ended the report by outlining the company’s five key strategies for the coming year: Growing annual revenues from licensed franchises, to extend the firm’s growing portfolio of owned intellectual properties, to introduce one to three new intellectual properties each year that have long-term franchise potential, to exploit the revenue opportunities in digital downloads, in-game advertising and wireless gaming and to continue to expand THQ’s international business.