Phoenix Gold swung to $31,000 4th quarter loss from $185,000 profit year earlier, blaming “slowing” U.S. market that increased competition for retail shelf space. Revenue slipped to $8.6 million from $8.9 million. While sales of AudioSource products increased, revenue from Phoenix Gold and Carver gear declined. Inventories swelled to $7.9 million from $5.7 million as accounts receivable rose to $5.3 million from $4.1 million. Phoenix Gold said it had cut 38 jobs, reducing work force to 152. It acquired AudioSource year ago and has focused Carver brand on professional audio market since acquiring it in 1995.

Mad Catz Interactive sales from continuing operations in its 2nd quarter ended Sept. 30 jumped 51% to $15.7 million from $10.4 million same quarter year ago. Toronto videogame maker posted $324,509 (1? per share) revenue after taxes and goodwill charges, compared with $597,602 loss (-1?) year ago. Company’s full loss for year-ago quarter, including discontinued operations, was $1.8 million (-4?). Commenting on results, Mad Catz CEO Morris Perlis said: “We continue to focus on reducing expenses allowing us to achieve profitability during our lower revenue quarters.” He said that although company’s results in quarter “were solidly in the black, the slowdown in retail sales that resulted from the events of September 11 did have an impact.” But Perlis said: “We strongly believe that the growing demand for [PlayStation 2] and Game Boy Advance accessories, coupled with the upcoming introduction of Microsoft’s Xbox and Nintendo’s GameCube, should bode well for Mad Catz for the balance of the year.” He said: “If, as we believe, consumer confidence rebounds, we expect that Mad Catz will achieve the $80 million net sales estimates that analysts projected for fiscal year 2002.” Perlis said he expected company’s short-term gross margin to “be under some pressure for the balance of the year” because of increased airfreight expenses for shipments of its accessories for GameCube and Xbox and “aggressive pricing by some of our competitors on several of the new launch products.”

TDK Mediactive is finding it helps to have right partners as licensor DreamWorks is picking up marketing slack for its Shrek Xbox game by packing ads and promotions in 20 million Shrek DVD and VHS videos expected to ship by year-end. Marketing boost is aimed at finding ways to generate mind-share for 3rd party publisher in holiday selling season that’s likely to be dominated by heavy marketing by Microsoft and Nintendo.

Mythic Entertainment entered into publishing and online partnership deal with Italy-based videogames and accessories distributor C.T.O., which also is major online videogaming provider in Italy. Deal allows C.T.O. to distribute Mythic’s massively multiplayer online role-playing game (MMORPG) Dark Age of Camelot and establish localized servers and support in Italy. Title was released in U.S. Oct. 9 and Fairfax, Va.-based Mythic said game had attracted more than 120,000 players to date. Game will be beta tested and released in Italy in first quarter next year with monthly subscription fee. Online hosting and community management will be handled by C.T.O. Game will be translated and customer support, as well as community management, will be handled in Italian to ensure best support and quality of service, Mythic said.

Special treat for Star Wars fans comes Fri., said distributor 20th Century Fox Home Entertainment Tues. On Nov. 9, owners of Star Wars: Episode I The Phantom Menace DVD will be able to use disc’s PC link to see previews of forthcoming Star Wars: Episode II Attack of the Clones. Preview is locked on DVD and needs PC connection to Internet to unlock it for viewing. Studio said preview was different from trailers in theaters, with never-before-seen footage.

Latest analyst to say Microsoft would face major losses with Xbox until console broke even was Morgan Stanley’s Mary Meeker. Reports said Meeker told clients in note: “We believe that Xbox could lose around [$1 billion]… before breaking even in [fiscal 2004] if the product is reasonably successful.” Microsoft spokesman didn’t return call for comment by our Tues. deadline. Merrill Lynch analysts Henry Blodget and Justin Baldauf had offered gloomier forecast in March, saying: “We estimate $2 billion in losses before break-even in FY 2005.” In same report, they said “we believe it will be very challenging for Microsoft to become the industry leader soon” and Sony was in driver’s seat at least for now.

In first 3 days after release Microsoft’s Windows XP sold through 300,000 copies at retail, research firm NPD Intelect said Tues. Total for Oct. 25-27 exceeded that of Windows Millenium Edition (200,000) in Sept. 2000, but was 100,000 below sales for Windows 98 in same time period, NPD said.

Family Friendly value-priced computer game maker eGames said it entered into new bank agreement with Fleet to pay off outstanding balance owed over 22 months. Langhorne, Pa., game maker said agreement also provided that, despite its defaults under loan documents that previously provided company with $2 million secured line of credit, bank wouldn’t enforce its rights and remedies under those loan documents as long as eGames remained in compliance with terms of new agreement. Under new deal, remaining outstanding balance owed under credit facility will be repaid in monthly installments with interest at prime plus 3%. EGames also issued warrants to bank for purchase of 750,000 shares of company’s common stock exercisable until Oct. 31, 2006, at exercise price of 9? per share.

Acclaim Sports starts shipping its first title for GameCube -- All-Star Baseball 2002 -- later this week at $49.99. Title was developed by Glen Cove, N.Y., game maker Acclaim Entertainment’s Acclaim Studios Austin under license from Major League Baseball Properties and Major League Baseball Players Assn. Acclaim said it planned to ship 4 other GameCube titles through holiday season -- Crazy Taxi, Dave Mirra Freestyle BMX 2, NFL QB Club 2002, XG3 Extreme G Racing.

RadioShack said Oct. sales declined to $363.9 million from $371.1 million year earlier on flat same-store sales at company- owned outlets. For year to date, sales were up 2% to $3.52 billion on 2% same-store sales increase. On same-store sales for Oct., company said parts, batteries and accessories were up by mid-single digits. It said strong sales of special-purpose batteries and video accessories were negated in part by drop in computer accessories. Wireless communications rose 40% in dollars, 70% in units. Core AV category fell by high teens, with DirecTV business down 25%, mainly on decline in average selling price to $50 from $100 year ago. Personal electronics fell by mid-single digits on difficult comparisons with promotionally active Oct. 2000. RadioShack said it expected to post flat total merchandise sales for 4th quarter.