As most of you know, on August 31, Volition was acquired by THQ. This is great for all of us here at Volition. It allows us to be more focused on product development and we know it will result in better games. While we're extremely happy to fully join forces with THQ, customers of Descent and FreeSpace have raised concerns about the future of these franchises. People who have been looking forward to Summoner and Red Faction have asked what it means for these titles.

As to Summoner and Red Faction, I see no changes. These titles remain in development with THQ. We believe they will be completed in time for their scheduled release dates. Our hope for all our projects is that they will merit sequels. I hope that's true of both Summoner and Red Faction. As to what other platforms we might support, I can't say.

Regarding Descent sequels, it's very unlikely that Volition would ever be involved in one. Interplay owns the sequel rights to Descent. It's possible Outrage will develop another Descent sequel, but I don't know what their plans are. I also don't know what Interplay's plans are for the franchise.

Regarding FreeSpace sequels, I don't know what Interplay's plans are. As with Descent, they own the sequel rights. Interplay could elect to have someone else develop a FreeSpace sequel. I can't say any more about FreeSpace at this time.

Regarding Parallax Online, THQ has acquired Parallax Online in conjunction with its acquisition of Volition. PXO will continue to support all current titles indefinitely. We expect PXO will be better as a result of the acquisition. I'm not sure what Outrage's involvement with PXO will be going forward, but they were a key part of it in the past.

As to what kind of projects we might work on in the future, we have no public announcements to make at this time. However, I don't think the kind of project we will do will change as a result of the acquisition. Prior to the acquisition we had talked to THQ and other publishers about a variety of projects, some very different than anything we had done before. We have always tried to work on things that we find interesting and haven't tried to focus on one genre. I expect this will continue. The one thing for certain is that new projects will be published by THQ.

We're extremely happy to be a part of THQ. We've gotten to know them very well over the past 20 months since we first showed them Summoner. I have every confidence that our games will be better as a result of the acquisition.

I hope to be able to make public more details in the next few weeks. For now, we're completely busy with getting Summoner and Red Faction done, just like we were before the acquisition.

Mike Kulas
President, Volition