Video Game Maker 3DO Issues Profit Warning

3DO Corp., a video-game maker led by Trip Hawkins, warned that its fiscal 2001 results will lag estimates as demand wanes and development costs rise for online games and titles for new systems. The Redwood City, Calif.-based company also said its chief financial officer, John Adams, plans to quit but didn’t say when. 3DO said profit for its fiscal year ended March 31 will be $9 million to $11 million, compared with earnings expectations of $20 million to $25 million. The company will spend $8 million to $12 million more than expected on developing Internet games and software for systems such as Microsoft Corp.’s Xbox and Nintendo Co.’s Dolphin and Game Boy Advance, all expected to be released next year. Sales of games for Sony Corp.’s PlayStation will be less than expected for the first two fiscal quarters as demand falls because of PlayStation shortages, the company said. 3DO’s warning, made after the close of regular trading, follows similar statements from rivals such as Activision Inc. and THQ Inc. 3DO shares closed down 47 cents at $5.59 on Nasdaq.