Publisher THQ has reportedly entered into an agreement with Nintendo to develop games based on Nintendo franchises and characters.

Continuing with their current trend, Nintendo is outsourcing more of its intellectual property to THQ, adding to a growing list which already includes developers like Capcom, Sega and Namco.

The agreement applies to the Nintendo DS only though, and grants THQ "the right to use certain of Nintendo's intellectual property to develop, publish and distribute video games for the Nintendo DS handheld platform until Jan 25, 2008 in all countries in the Western Hemisphere in accordance with the terms of the agreement."

Fortunately, Nintendo will still retain a veto on THQ's use of their IPs, so as to stop any unworthy titles getting through.