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by
Daniel Huebner and Jennifer Olsen
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 News
Week
of November 8-14, 1999
[Friday,
November 12, 1999]
Sony
Plans Online Sales
Sony will launch a new Playstation website in February that will initiate
online sales to coincide with the Japanese launch of the Playstation 2
on March 4, 2000. The site, at Playstation.com will feature direct sales
of the Playstation 2 console, peripherals, and software titles as well
as existing Playstation games and hardware, and Sony has pledge to reserve
a portion of its Playstation 2 allotments for the site. By 2002, Sony
hopes to use the site as gateway to provide digital movies, games, and
music directly to the Playstation 2 owners over cable television networks
Pokemon
Rules
Nintendo's ultra-successful Pokemon franchise continues to dominate the
U.S. video game market. The Pokemon series, comprised of the Red, Blue,
and Yellow editions, as well as Pokemon Snap and Pokemon Pinball, accounted
for 10.5 percent of all console game sales and nearly 9 percent of all
console revenues in the United States so far in 1999. In addition, Pokemon
titles held all five top spots in NPD's October top-ten lists. The Pokemon
franchise has accounted for over thirty percent of Nintendo's revenues
this year.
Consoles
gain Ground
A report from the Yankee Group projects that console ownership in American
homes will grow to 43.5 million by the end of 2003, a significant increase
from the nearly 36 million homes with consoles last year. Not surprisingly,
most of this growth will be fueled by demand for next generation units,
which are projected to comprise 85 percent of the installed base in 2003
because of new feature like internet connectivity. These same new features
are expected to help consoles compete more aggressively with PC for spots
in American homes.
[Thursday,
November 11, 1999]
Sega
Raided
Officials from Japan's Fair Trade Commission raided the Tokyo offices
of Sega Enterprises Limited in search of evidence of price fixing. The
commission is investigating allegation that Sega and its sales affiliate
pressured Japanese retailers into not discounting Dreamcast units below
their suggested retail price and to not trade in second hand units. Such
actions would be a violation of Japan's anti-cartel laws. Sega has pledged
to cooperate with the investigation.
3DO
Beaten by Snuggles
A Federal court has again granted an injunction to prevent 3DO from
using its 'Tready Bear' character in ads promoting Battle Tanx.
The action was brought by Unilever, who felt that the character was an
infringement on the copyrighted 'Snuggles' bear which the company uses
to promote it fabric soften brand. Unilever was granted a permanent injunction
against 'Tready' and 3DO on the same grounds last January, and a Federal
judge deemed that 3DO's conduct in the most recent ad constituted willful
conduct to dilute the Snuggle brand.
AMD
Looks for Black Ink
AMD is forecasting in excess of $800 million dollars in revenue in
the fourth quarter and the possibility of breaking even. AMD had earlier
stated that it would need to reach $850 million in fourth quarter revenues
to break even, and the company now believes that goal is within reach.
Much of this turnaround was attributed to AMD surpassing its manufacturing
goals. While the company had planned to be able to produce a total 1 million
Athlon processors by the end of the year, the company now believes it
will produce 1 million processors in the fourth quarter alone. AMD is
also looking to roll out its Athlon 800 part three months ahead of schedule.
"I just think that company is executing very well," theorized chairman
and CEO Jerry Sanders.
Sony
and Sun Partner
Sony and Sun have agreed to jointly develop technology that will allow
a variety of home appliances, set-top boxes, and audio and video equipment
to connect to the internet. The first stage of the pact will focus on
creating software for set-top boxes and digital television, but the long
term focus could well be part of Sony's ambitious Playstation 2 plans
by creating a simple way to distribute digital content directly to consumers.
"This partnership with Sun will accelerate the development and proliferation
of interactive digital content to consumer electronic devices via the
Internet, enabling the delivery of advanced services that will increase
serviceability and end-user benefits," explained Sony Corporation president
and chief executive officer
Nobuyuki Idei.
[Wednesday,
November 10, 1999]
Learning Company Leadership Changes
Following
closely on a $105 million dollars third quarter loss at Mattel's The Learning
Company software division, leadership changes are in the works. The Learning
Company's chairman Micheal Perik and president Kevin O'Leary announced
their departures from the troubled company. Mattel had been projecting
a $50 million dollar profit from The Learning Company when it was acquired
last May. Other changes include naming Francesca Luzuriaga, formerly executive
vice president of worldwide business planning, to the position of chief
operating officer of Mattel interactive, the unit that oversee The Learning
Company. A search is underway to replace Perik and O'Leary.
Midway
Looks to Syndicate Classic Games
Midway has partnered with Shockwave.com to create a system for the syndication
of Midway's classic games titles. Using a virtual device called a 'Shock
Machine", players will be able to download, save, and play golden oldies
like Joust, Defender, Spy Hunter, Marble Madness,
and Moon Patrol. The games will be available exclusively at Shockwave.com
for a period of three months after which the games will move to Midway's
own site and could be syndicated to other sites as well. "We will offer
a syndication model that will enable our classic games to live on much
in the same way that classic television programs do today," says Mike
Ribero, executive vice president of Midway Games.
Interplay's
Losses Increase
Interplay reported net revenues of $23.6 million dollars and a net loss
of $17 million dollars for the third quarter, a two million dollar increase
over the loss of $15 million dollars in the third quarter last year. Interplay
attributes much of this loss to charges related to the restructuring of
the company's distribution activities as well as to problems relating
to the cancellation of a series of licensed sports titles. Interplay plans
to use a recent influx of cash from Titus to put more energy into console
titles. "Interplay will continue to develop high quality PC games, as
well as increase its emphasis on higher unit volume console games going
forward, and more emphasis will be placed on product line and project
profitability, as well as on high volume international distribution,"
explained new Interplay president, Herve Caen.
Cavedog Classics
It may not be Carnegie Hall, but the Regina Symphony Orchestra will
be giving the full concert hall treatment to the work of Cavedog composer
Jeremy Soule. The orchestra will enthrall the patrons of the Saskatchewan
Centre of the Arts will over thirty minutes of Soule's arragements, including
pieces from the soundtracks of Total Annihilation and Amen,
The Awakening. The concert also includes work by other soundtrack
composers, including Danny Elfman and John Williams.
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