Spate of Recent Deals Boost Video-Game Maker THQ.

AFTER going through a rough patch when it lost the rights to make pro wrestling video games, THQ Inc. has bounced back with a spate of recent licensing deals and acquisitions.

The Calabasas-based company recently penned an agreement with LucasAtrs Entertainment Co. LLC to publish Game Boy games based on the popular "Star Wars" and "Indiana Jones" brands. Game Boy Color  owners will be able to play the first title, "ObiWan's Adventures," this fall, and "Indiana Jones and the Infernal Machine" in the spring. Four additional games will follow for the next-generation Game Boy Advance, slated for release next year.

"We've had a longstanding relationship with Lucas," said Brian Farrell, chief executive of THQ. "This is one of the larger (deals)."

As in almost all video-game publishing deals, THQ will pay LucasArts an advance for the use of characters and other material from the movies. Then it will make the games, sell them, and collect the revenue. THQ will then pay LucasArts a percentage of sales as royalties.

This deal is likely to be very profitable for ThQ, considering the revival of interest in "Star Wars" thanks to the new trilogy of movies that started with last year's "Star Wars: Episode I, The Phantom Menace."

"This deal takes us through the 'Episode II' universe," Farrell said. "So we've got all the 'Star Wars' that either was or will be in the next couple of years. We think that's very positive."

In addition to producing a number of games for LucasArts, THQ currently acts as the company's distributor in Germany.

Meanwhile, ThQ has acquired Champaign, Ill., video-game developer Volition Inc. in a deal worth about $20 million. Executives from the two companies met about 18 months ago and have collaborated on two titles for the Playstation 2 and personal computer, "Summoner" and "Red Faction."

"We're always looking for quality development studios with either great technology or intellectual property. Volition fits both those models," Farrell said.

Volition's employees will stay in Illinois and the company's current management will stay in place. "It's not broken, so we're not even going to try to fix it," Farrell explained.

Finally, THQ is moving into the next level of video-game entertainment through its deal with German electronics producer Siemens AG. THQ will provide game content for handheld devices manufactured by Siemens, such as devices that combine wireless phone services, an Internet connection and a personal digital assistant.

"There's all sorts of devices coming down the road," Farrell said. "(Games will be available) probably mostly through the Internet. You can imbed simple games (directly into the device's hardware), but the real win is when we can download levels or questions through the Internet, through the wireless devices."