Thq Inc

Despite record quarterly sales of its video games, THQ Inc.'s profit tumbled 89% because of higher development and marketing costs and lower than expected sales of its key titles, including "Red Faction 2." The Calabasas company posted net income of just $3.1 million, or 8 cents a share, in the fourth quarter on sales of $217.8 million. A year earlier, it had $28.5 million in profit, or 75 cents, and sales of $196.4 million. For the year, sales rose 27% to $480.5 million.

Calabasas video game publisher THQ Inc. slashed its fourth-quarter and 2003 revenue and earnings forecasts Monday, another sign that holiday sales of games are failing to live up to expectations. The news surprised both industry observers and investors, given that the fourth quarter traditionally is the company's most vital, last year having accounted for nearly half of annual sales and 75% of profit. THQ shares traded as low as $9.50 on Nasdaq before recovering to end the day at $12.

With unprecedented numbers of American homes equipped with video game consoles, game publisher THQ Inc. posted double-digit increases in profit and sales but surprised investors by throttling back guidance for its growth in 2003. The Calabasas-based publisher of such games as "Red Faction" and "SpongeBob SquarePants" reported $4.8 million in net income, or 12 cents a share, in its third quarter on sales of $97.3 million. That's up from $3.

Video game maker THQ Inc. said it was shutting down a venture that sold an online soccer game in Britain, a step that will crimp second-quarter profit. The game, which put players in the role of managers rather than athletes, didn't attract enough consumers who were willing to pay the monthly fee, THQ said. The experience mirrors that of Electronic Arts Inc., the biggest video game maker, which has yet to make a profit from its online games unit. THQ's net income will be reduced by $2.

THQ Inc., a video-game software publisher, plans to buy closely held game developer Rainbow Studios for about $57.4 million in stock, to add to its ranks of game programmers and artists. THQ, publisher of games such as "Rugrats" and "WWF Smack Down," will exchange 1 million shares for Rainbow Studios, based in Phoenix, the company said in a statement. THQ, of Calabasas Hills, publishes games for computers and game systems including Sony Corp.'s PlayStation 2, Nintendo Co.'

Sega Corp. and THQ Inc. agreed to jointly release 16 titles in North America during the next two years for Nintendo Co.'s Game Boy Advance hand-held video game player. Sega, which in February discontinued its Dreamcast console after losing hundreds of millions of dollars, has been searching for ways to ramp up its titles on other consoles. It already has announced that it will publish its games on Sony Corp.'s PlayStation 2, Microsoft Corp.'

Lost in the carnage of the technology-stock slaughter has been one of the best-performing sectors of the stock market: video games. Shares of the top 10 independent U.S. game publishers have surged 69% during the last year, with two Southland companies--Activision Inc. and THQ Inc.--leading the charge. The Nasdaq composite index, by comparison, executed a 46% belly-flop in the same period. Behind the impressive numbers, however, is a story of an industry in the throes of frantic consolidation.

Cable powerhouse Nickelodeon and Calabasas Hills-based video game publisher THQ are expected to announce today a joint venture to co-develop projects that can be first played on the PC, then broadcast on the TV. Financial details of the deal were not disclosed. Under the agreement, which executives say is designed to blur the line between games and movies, the two companies will create or obtain original entertainment properties that THQ will develop and publish as games.

THQ Inc. of Calabasas reported net income for the fourth quarter that ended Dec. 31 of $21.5 million, compared with $14.9 million for the same period the previous year. Net sales increased to $190.9 million from $127.6 million. For the year, the company reported net income of $26.7 million, compared with $32.9 million. Net sales rose to $347 million from $302.3 million. THQ develops, publishes and distributes interactive entertainment software.

Video game software publisher THQ Inc. on Thursday posted a rise in fourth-quarter profit that handily beat Wall Street's estimate and reaffirmed earnings forecasts for the rest of the year. The Calabasas Hills-based company said net income for the quarter was $21.5 million, or 99 cents a share, compared with $14.9 million, or 72 cents a share, a year earlier.