* CEO sees new titles, Wii add-on hardware boosting rev
* Expects to sell 1 million uDraw tablets by March
* Shares down 20 pct from July high
* Social games to target hard-core gaming audience
By Liana B. Baker
NEW YORK, Sept 27 (Reuters) - THQ Inc
The company is producing the game device, known as uDraw, exclusively for Nintendo's Wii, and marks THQ's first big entry into the hardware segment of the video game business. The device is slated to hit U.S. stores on Nov. 21, in time for holiday shopping.
Chief Executive Brian Farrell said in a recent interview that uDraw could provide THQ with "long-term revenue and profit opportunity" as it attracts more casual players, expanding beyond its current base of hard-core gamers.
THQ estimates it will sell 1 million of the $69.99 add-on devices by March, which would yield roughly $70 million in sales. Last quarter it posted revenue of $160.3 million.
"A million units is a good number for a company the size of THQ," said Mike Hickey, a Janco Partners analyst.
Initial demand from retailers in North America and Europe for the tablet has surprised THQ's Farrell, who said the company, known for shooting and fighting games, had been hesitant to enter the hardware business.
"The demand's been 'Whoa,' and surprised us pleasantly," Farrell said.
Over the next few weeks, THQ is figuring out how to ramp up production in case there is more demand for the product than the company expects.
THQ could use another hit. Earlier this month, it lowered its outlook for the year after delaying the release of the game "Red Faction: Armageddon," to May 2011.
The company also forecasts weak results in the second quarter because it doesn't have a major title scheduled for release.
THQ shares have fallen 20 percent from their July high, as video game sales have been slumping worldwide. They closed at $4.00 in Nasdaq trading on Friday.
The company is also banking on industry trends toward social games and is developing games for Facebook that will likely draw from THQ's biggest brands, like UFC (Ultimate Fighting Championship), WWE (World Wrestling Entertainment) and Saints Row, Farrell said.
THQ's new social games won't necessarily cater to the casual gaming audience that made games like Zynga's FarmVille a hit.
"The core gamers are not playing Family but they're on Facebook for other reasons," Farrell said. "(Our games) will be a way to keep them engaged so they're goofing around with our core product when they're on Facebook." (Reporting by Liana B. Baker; Editing by Derek Caney)