Video Game Developer Expects 2nd-Quarter Loss

THQ Inc., a Calabasas-based developer of video games, said it expects to report a second-quarter loss of between $3 million and $4 million.

The loss for the quarter that ended June 30 would compare with net income of $26,000 in the year-earlier quarter.

THQ said the loss is expected because of product-development and licensing costs. The company also cited the closing of its Redmond, Wash., software-development office, which employed about six people. The software development function will be moved to Calabasas.

In addition, THQ said it planned to increase reserves for product markdowns and allowances, including its Super Nintendo version of “Home Alone II: Lost in New York.” The game’s price has been lowered as part of a promotion for the release of the home video of the movie.