News

Week of December 13- December 19, 1999

[Friday, December 17, 1999]

Brazil Bans Six Games
In response to a recent shooting linked by the media to videogames, Brazil's Justice Ministry has issued an order banning several game titles. The ministry labeled Doom, Mortal Kombat, Requiem, Blood, Postal and Duke Nukem, as being too violent for sale. Police were ordered to remove all copies of the named titles from store shelves, and vendors failing to comply have been threatened with a fine of nearly $11,000 a day. "The games are considered violent and [and are] affecting people who play them, particularly children,'' said a government spokesperson, "[Duke Nukem] may have motivated Mateus da Costa Meira to stage the cinema shooting on November 3 in Sao Paulo." Police in Brazil believe the shooter was reenacting a scene from the game. The ministry plans to issue a ruling on other games considered violent someitme in next 120 days.

Infogrames Completes GT Buy
Infogrames Entertainment announced that it has completed its acquisition of a controlling stake in GT Interactive. Infogrames took the controlling interest with a total investment of $135 million. The companies are expected to combine many of their operations as GT looks to shift its interests and cut costs. On top of the influx of cash from Infogrames, GT will take a $70 charge in relation to it ongoing restructuring program. Infogrames looks to benefit by adding GT's robust North American distribution network to Infogrames established networks in Europe and Australia.

Havas Plays it Safe
Havas has joined the list of companies that are relying on Macrovision's SafeDisc copy protection scheme to safeguard their games. The system uses a combination of digital signature and multi-layer encryption to prevent CD recorders from making working copies. Other companies using Macrovision's technology include Electronic Arts, Microsoft, Eidos, and Hasbro.

Take Two Invests in eUniverse
Take Two Interactive has reached an agreement with online gaming network eUniverse to invest up to three million dollars in eUniverse common stock. The deal has Take Two picking up 400,000 shares of eUniverse at five dollars a share, with an option for an additional 200,000 shares as part of separate cooperative advertising plan. The agreement will see the two companies develop strategic marketing and online initiatives to combine Take Two's game development and distribution strengths with eUniverse's established gaming sites. "As part of our corporate plan to expand our Internet presence, we believe that eUniverse's 3 million unique users coupled with eUniverse's ability to deliver gaming content and community to our shared demographic provides a competitive advantage in executing an online strategy for the video games industry," commented Take Two CEO Ryan Brant.

[Thursday, December 16, 1999]

Take Two Financials
The fiscal year ending October 31 saw Take Two's sales increase a healthy 58 percent while net income increased a whopping 127 percent. Take Two posted net sales of $305 million and a net income of $16 million for the year. The company attributes most of the increases to growth in internal publishing with the remaining protion coming as result of successful corporate acquisitions. "1999 was a breakthrough year for Take-Two. During the year, the company achieved exceptional internal growth, while successfully integrating several significant acquisitions it completed in 1998," said Take Two CEO Ryan Brant, "The coming quarters will also see the company strategically focus its expansion efforts on the Internet, specifically enhancing the Internet business-to- business capabilities of its Jack of All Games subsidiary, and Internet brand identity of Rockstar Games, TalonSoft and the multiplayer capabilities of their respective gaming properties."

Sega Sends Warning
Sega's expectations of selling one million Dreamcast unit by the end of the year appear to have been misguided, as sale thus far are exceeding that mark by more than fifty percent. A revised forecast of 1.5 million units sold by December 31 has induced Sega to publicly warn would be holiday Dreamcast buyers that the consoles may become very difficult to find. Sega feels that supplies shortages could reach a critical level by December 19. "We have all our factories in Asia working at full capacity,'' said Sega of America Senior Vice President Chris Gilbert, "The simple fact is we can't make enough Sega Dreamcast videogame consoles to meet the surge in demand from consumers and retailers."

Universal Teams With Konami
Konami and Universal Studios have entered into a global strategic alliance that will have Konami taking on the marketing and distribution of games developed and produced by Universal Interactive Studios. Games covered by the agreement will be drawn from Universal Studios properties such as Woody Woodpecker and The Mummy. Konami will also get first look options on games based on other Universal franchises. The agreement is expected to evolve to included tie-in between other media, included television, cinema, arcade, and consumer products. "This partnership will give Konami an incredibly strong and diverse product portfolio for many years to come,'' said Konami Managing Director Kazumi Kitaue.

[Wednesday, December 15, 1999]

Games.com
Hasbro is gearing up to launch its Games.com online games portal, and has chosen Go2Net as its technology partner. Hasbro is looking to launch the game service sometime in the middle of next year, and plans to offer no fewer than fifty titles encompassing Hasbro properties like Atari, Wizards of the Coast, and Microprose. The majority of the planned online games will be multiplayer java versions of classic games like Monopoly, Clue, and Battleship. Go2Net will, under the terms of their three-year agreement with Hasbro, build the site and provide technology for chats, messages, and community management. Hasbro will gain accessing to games on or in development for Go2Nets PlaySite gaming service, while Go2Net gains the rights to Hasbro's most popular games for use on a co-branded site as well as $7.5 million fee from Hasbro. Hasbro plans to spend $60 million in the next year to launch and develop Games.com, and hopes to eventually expand the sight to six separate game channels focusing on family, kids, arcade, game shows, sports, and hardcore gamers.

Cable Ready Windows
NDS and Peach Networks have announced a collaboration that could bring PC games directly to customers televisions. The service will combine conditional access technology from NDS with Peach's proprietary system that allows Windows and Internet access through digital set-top boxes to give cable television operators a secure way to offer customers Internet access and Windows 95/98 applications and games. "Subscribers will be able to use Peach's technology to access games, a variety of Windows applications and the Internet, all on the TV, while operators will be able to use NDS functions to develop and implement pricing and billing plans," said Peach Networks CEO Ofir Paz.

PC Data's Hits Top Games
For the month of November, 1999
1. MP Roller Coaster Tycoon Hasbro Interactive
2. Microsoft Age Of Empires II: Age of Kings Microsoft
3. Deer Hunter III GT Interactive
4. Tom Clancy's Rainbow Six: Rogue Spear Red Storm Entertainment
5. Delta Force 2 Nova Logic
6. MP Roller Coaster Tycoon Corkscrew Follies Hasbro Interactive
7. Frogger Hasbro Interactive
8. Cabela's Big Game Hunter 3 Activision
9. Barbie Generation Girl Gotta Groove Mattel Interactive
10. Sim City 3000 Electronic Arts
11. Microsoft Flight Simulator Microsoft
12. Starcraft Havas Interactive
13. Harley Davidson: Race Across America GT Interactive
14. Command & Conquer 2: Tiberian Sun Electronic Arts
15. Who Wants To Be A Millionaire Disney
16. Microsoft Asheron's Call Microsoft
17. Tom Clancy's Rainbow Six Gold Edition Red Storm Entertainment
18. Sim Theme Park Electronic Arts
19. Hot Wheels Stunt Track Driver Mattel Interactive
20. Microsoft Flight Simulator Pro Microsoft

Macintosh only:
1. Sim City 3000 Electronic Arts
2. Starcraft Havas Interactive
3. FLY! Gathering of Developers
4. Madden NFL 2000 Aspyr
5. Quake II Activision
6. Fun Pack GT Interactive
7. Tomb Raider III Aspyr
8. Unreal GT Interactive
9. Age Of Empires For Mac GT Interactive
10. Mac Action Games Encore

[Tuesday, December 14, 1999]

Bleem! Battle
The court battle between Sony Computer Entertainment and Playstation emulator developer Bleem! took a turn on Friday as a U.S District Court judge granted Bleems! motion for leave to amend and assert counterclaims against Sony. Bleem! claims that Sony unlawfully acquired, maintained, and extended its monopoly in the video game market through a combination of anti-competitive practices, including misuse of copyright, patents and other intellectual property. The judge also blocked a Sony request to modify a protective order covering Bleems! confidential business data. Sony had sought access to source code as well as reseller and customer information. "Sony simply has no business demanding this kind of proprietary data from innocent third-parties, particularly when it has no bearing on the case whatsoever," said Bleem lead attorney Jon Hangartner.

EA Studio OZ
Electronic Arts has announced the opening of its new Australian development studio. The new section will be known as EA Studio OZ, and hopes to produce two internal titles and three to external titles annually. While the studio will focus on development of Australian sports simulations like cricket and rugby, new studio head Steve Dauterman hopes to lead the group towards some more innovative titles as well. The studio plans a staff of 20-30 people by the end of 2000, increasing to a projected 100 staff members in the next four years.

SCi Get Thunderbirds
SCi Entertainment Group and Carlton International have entered into an agreement giving SCi exclusive worldwide video and computer game rights to cult favorite sci-fi series Thunderbirds. SCi plans to create games for next generation consoles as well as multi-player internet gaming experiences. All of the games are to be released in conjunction with a re-release of a series of digitally restored Thunderbirds episodes. "SCi's investment in the Thunderbirds video game once again illustrates the massive pulling power of the show. Everything points to another enormous success when Thunderbirds returns to our screens in the autumn of 2000. What a great way to start the millennium," said Thunderbirds creator Gary Anderson. Carlton International acquired Thunderbirds last year and has already signed up more than 20 product licensees.

PC Data Top Ten Selling Game
Week of November 28-December 4, 1999
1. Who Wants To Be A Millionaire Disney
2. Pokemon Studio Blue Mattel Interactive
3. MP Roller Coaster Tycoon Hasbro Interactive
4. Pokemon Studio Red Mattel Interactive
5. Barbie Generation Girl Gotta Groove Mattel Interactive
6. Microsoft Age of Empires II: Age Of Kings Microsoft
7. Deer Hunter III GT Interactive
8. Toy Story 2 Action Game Disney
9.Tonka Construction 2 Hasbro Interactive
10. Half-Life Opposing Force Expansion Pack Havas Interactive

[Monday, December 13, 1999]

Split Decision
While ruling that the Creative Technology patent at the heart of long running lawsuit between Creative and Aurreal was valid and enforceable, a federal court also decided that Aureal's Vortex and Vortex 2 chip do not infringe on that patent. Kip Kokinakis, CEO and President of Aureal, was pleased with the verdict, "It is a great victory for Aureal, but also a victory for innovation and competition that we did not yield to a company with vast resources and an intent to eliminate our ability to bring new and exciting products to the market. We can now turn our undivided attention to compete in the marketplace where our products and technology speak for themselves." The jury's decision is far from the end of the suit, however. Creative has promised to appeal the infringement decision. "We are pleased that Aureal's remaining defenses concerning the validity of our patent have now been rejected and the patent has been held to be valid and enforceable. We are, of course, disappointed that the jury did not also find infringement," said Creative General Counsel John Danforth. Aureal has also decided to continue the fight. "Aureal also intends to pursue its efforts to invalidate Creative's patent and to have the patent declared unenforceable because it was obtained by inequitable conduct before the patent office," said Aureal General Counsel Brenden O'Flaherty.

Toy Story Protest
More than 120 people gathered outside Activision's Santa Monica offices to protest what they deemed to be offensive content in Activision's Toy Story 2 Playstation title. The peaceful demonstration was sparked be the appearance of a mustachioed Mexican bandito character that many found to be a mocking portrayal of Hispanic stereotypes. The character does not appear in Disney's Toy Story 2 movie. While the company has promised to alter the appearance of the character in a future mastering of the game, there currently no plans to remove or amend copies already on the shelves.

iSmell
Cooksey Thomas, formerly a senior designer for Sega Dreamcast, has joined Digiscents. Thomas will lead the team working on the Digiscent ScentStream API, a software system that allows the broadcast of scents with electronic media in conjunction with a personal scent synthesizer called, um, iSmell. Cooksey Thomas had previously developed Sega's Dreamcast audio API. "Just as sound has become an integral part of the gaming experience and soundtracks have become a necessity in movies, we believe that over time, digital scent will also become ubiquitous in most forms of media" said Digiscents CEO Joel Bellenson, "Cooksey's development tools have been used to create hundreds of interactive games, so we are excited to have him spearhead the development of the API for digital scent."

Eidos's Magic Kingdom
Disney and Eidos have announced an agreement to create a series of console and handheld game based on Disney content including popular Disney character and Disney themeparks. "With this collaboration, Eidos is reaching out to a broader mass market audience that is established on the PlayStation and Game Boy, as well as delivering proven brand name titles to the exciting new Sega Dreamcast platform," said Mike McGarvey, COO, Eidos Interactive. "Given Disney's cache with families and Eidos's reputation as a premiere developer and publisher of best-selling games, we believe this alliance will result in top-quality products that both kids and parents will clamor for." The first is titled Walt Disney World Racing and is scheduled to appear in spring 2000. More games will follow in the fall of 2000. All of the games will be developed by Eidos's Crystal Dynamics studio.

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