Mobile-game firms post disappointing results: Glu, EA and THQ predict continued struggles for Q4

The mobile gaming playground remains a tumultuous space, according to new earnings reports from three of the industry’s biggest players.
Shares of Glu Mobile Inc. plunged after the publisher issued fourth-quarter guidance that fell short of analysts’ expectations. Glu narrowed its quarterly loss significantly-reporting a net loss of $753,000 compared with a $3.8 million deficit during the year-ago period-while revenues rose 26% to $16.7 million.
But the San Mateo, Calif.-based firm said it expects to post a net loss of between $1.7 million and $2.1 million next quarter, citing the loss of its Hasbro license and “recent market dynamics in Europe” including pricey data plans.
Four research firms downgraded the stock from “buy” to “hold,” and shares sank $3.41, or nearly one-third, to $7 each.
Meanwhile, Electronic Arts Inc. said its mobile business generated $37 million during the quarter, up 6% during the year-ago period. But the publishing giant lowered expectations for next year, saying it expects mobile to generate $155 million in 2008 as opposed to the $175 million it had forecast earlier.
“We have temporarily lost some momentum, given a weaker-than-expected North America segment and a few execution issues,” EA CFO Warren Jenson said during an earnings call. “That said, we have every confidence that the team is doing the right things to grow this business.”
Finally, THQ Inc. saw its mobile business continue to erode. The company said wireless accounted for 2.1% of overall revenues, or roughly $4.8 million, down dramatically from the $7 million in mobile sales THQ reported last year.