THQ SCORES IN 4TH QUARTER.

Byline: Ben Sullivan Daily News Staff Writer

Reflecting increased demand for high-end digital entertainment, video game maker THQ Inc. is expected to report a 26.7 percent gain in fourth-quarter earnings today.

The maker of software for the Sony, Nintendo, Sega and PC game platforms has had a healthy year of growth despite the disappointing news last spring that it had lost to rival Electronic Arts the right to continue marketing games under the World Championship Wrestling title. Its 1997 sales of WCW games, which feature characters such as Hollywood Hogan and Andre the Giant, accounted for more than 40 percent of THQ's revenues.

Based on a consensus estimate of five analysts surveyed by First Call Corp., THQ is expected to earn 71 cents per share, or $7.8 million, for the quarter ended Dec. 31, compared with actual earnings of 56 cents, or $6.15 million, per share in the same period one year ago.

For the entire year, the video game maker is expected to earn $1.74 per share, a whopping 93 percent gain over the 90 cents per share it earned in fiscal 1997. In 1997 the company had sales of $89.7 million.

Boding well for THQ going forward, the company said Wednesday that its ``WCW/NWO Thunder'' wrestling game for the Sony PlayStation was the No. 1-selling console game in January, and that two other titles - ``WCW/NWO Revenge'' and ``Rugrats: Search for Reptar'' - were among the top 20 best-selling games during the month, based on total dollars and units sold.

THQ's share price - while volatile - has largely kept pace with the company's earnings gains. The issue closed at $24.125 Wednesday, up 68.75 cents, and 29 percent ahead of its price one year ago.