Jeff Hwang covered Electronic Arts' (NASDAQ:ERTS) earnings bomb yesterday; the entertainment-software publisher got mercilessly tackled like one of the digital football players in its Madden franchise, reporting a drop both in revenues and GAAP income. To make matters worse, the company looked downfield and saw a loss coming up for next quarter. After such a negative report from EA, the video-game industry's 800-pound gorilla, investors were probably shaking in their boots as they awaited results from THQ (NASDAQ:THQI). Thankfully, a look at THQ's press release should calm the nerves of any quivering spectator. However, it shares one important failing with EA, which I will talk about in short order.

Let's scroll through the numbers. For the company's fiscal fourth quarter, net revenues increased 40%, good for $171.9 million. Net income jumped 86% (71% on a per-share basis) to $10.1 million (or $0.24 per diluted share). That's a great quarter -- what about the entire year?

Fiscal 2005 revenues increased 18%, coming in at $756.7 million. Net income for the year was $62.8 million against $35.8 million in 2004. Taking away beneficial tax credits and an insurance settlement, the diluted net income would be $1.37 per share this fiscal year versus $0.85 the previous fiscal year, representing more than 60% growth in per-share earnings.

There's a lot to like here, in my opinion. THQ achieved excellent results, producing yet another enviable earnings report card. Like last time, the company highlighted how its growth is tied to important licensed assets that allow it to leverage the brands of Disney (NYSE:DIS), Pixar (NASDAQ:PIXR), World Wrestling Entertainment (NYSE:WWE) and Viacom (NYSE:VIA). The current earnings release lists titles based on shows such as WWE's SmackDown! and RAW, as well as movies such as The Incredibles and the one featuring SpongeBob SquarePants, which drove the company's successful trailing 12 months. Fans (and/or shareholders) of Marvel Enterprises (NYSE:MVL) will be happy to know that THQ's game featuring The Punisher did some heavy lifting as well.

So, yes, we have some balance in the world of video games. Just when Electronic Arts made it seem like stocks in this industry might not be a resilient investment, THQ comes along to renew Wall Street's hopes. However, there's a downside to all this happy news: THQ expects a loss in its upcoming first quarter because of increased investments for marketing endeavors and continued expansion for its wireless operations. Also, THQ sees lower earnings per diluted share for fiscal 2006, coming in at $1.00. These are not small issues, but I still see an overall positive shine to THQ and its future prospects. If you're a trader, you might want to bail. But those courageous enough to buy during the dips when quality players like THQ and Electronic Arts suffer short-term woes might harvest substantial rewards years from now, especially as the new console cycle ramps up. Remember, Fools think in large blocks of time, not small ones.

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Fool contributor Steven Mallas owns shares of Disney and Marvel Enterprises. The Fool has a disclosure policy. Post your impressions on this subject at the THQ discussion board.