Video Game Firm Expecting Rebound.(INTERNET & TECHNOLOGY)(Q & A)

Byline: Doug Tsuruoka

Game console makers Microsoft Corp., Sony Corp. and Nintendo Co. are going toe to toe to make their hardware the favored way of playing video games.

But the real winners in that battle might be the software companies that create and sell the games that run on the consoles.

So says Kelly Sumner, chief executive of interactive games maker Take-Two Interactive Software Inc. The New York-based company is known for video games that feature Hollywood personalities.

With Microsoft, Sony and Nintendo spending more than $1 billion to popularize their products, Sumner says demand for all sorts of games is expected to take off. He hopes so.

In its last three quarters, Take-Two has seen its sales fall from $131.2 million to $93.3 million to $84.5 million. For its third fiscal quarter ended July 31, it reported a profit of 4 cents a share, excluding special items, down from the year-earlier 12 cents.

But its historically best two quarters lie ahead, and the company says its fourth quarter and fiscal 2002 are on track with analysts' estimates.