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by Daniel Huebner and Jennifer Olsen

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News

Week of February 7- February 13, 2000

[Thursday, February 11, 2000]

Bonnel Takes Over At GT
Infogrames chairman and CEO Bruno Bonnell has taken up the reins at GT Interactive as chairman and CEO. Bonnell is filling the positions left vacant by the departure of GT CEO Thomas Heymann and COO John Baker from GT's executive management team. Los Angeles residents Heymann and Baker both decided to leave in part because of the company's decision to remain headquarted in New York. The moves follow Infogrames acquisition of a 70 percent stake in GT, and could signal the start of Bonnell's efforts to merge the two companies. Bonnell has proposed that GT Interactive and Infogrames merge their North American operations, and GT has appointed a special committee of outside directors to consider the proposal.

Connectix Wins Appeal
Playstation emulator maker Connectix has won the reversal and remand of court injunction banning the sale of its Virtual Game Station for Macintosh. Sony had contended that the Virtual Game Station infringed on Sony copyrights, especially in relation to the Playstation BIOS, and tarnished the Playstation reputation. Connectix, backed by software makers and trade associations, argued that they had the right to replicate non-copyrightable functional elements included a reverse engineered BIOS. The court agreed, and recognized Connectix as a legitimate and innovative competitor. Connectix plans to begin shipping the Mac Virtual Game Station immediately. Further, the company plans to offer a Windows version of the Playstation emulator in the near future. "The court has recognized that reverse engineering is a common, legitimate, and valuable development practice, protected under law,'' stated Connectix CEO Roy McDonald.

MIT Hosts Conference on Cultural Significance of Games
By Dan Teven The Computer and Video Games Come of Age conference opened today, giving Massachusetts Institute of Technology students the chance to hear an impressive list of guest speakers. Although the conference is free and open to the public, it was not widely publicized. About half of the approximately 450 attendees seemed to be from MIT, with a minority contingent from Boston-area game development houses like Looking Glass, Turbine, GameFX, Stainless Steel Studios, and Harmonix.

The conference is co-sponsored by the Interactive Digital Software Association and MIT’s Program in Comparative Media Studies, a first-year department that’s not to be confused with the famous Media Lab. There were no holographic game interfaces or wearable computers to be found. In fact, it felt more like a "GDC Lite", with an overly long keynote by 3DO’s Trip Hawkins but without the technical sessions or the hangover.

Trip’s big theme? Computers need to become more natural to use – and they will.

For both content and style, the speakers from academia acquitted themselves better than those from our industry. However, many respected developers have yet to speak, such as Hal Barwood, Peter Molyneux, Gabe Newell, David Perry, Bruce Shelley and Warren Spector.

The best session of the day belonged to Geoffrey Goldstein, a psychologist from the University of Utrecht. After debunking the notion that games are addictive, Goldstein explained the difference between aggression and mere aggressive play. Boys running around and yelling on the playground are engaged in aggressive play, because they don’t really mean to hurt each other. On the other hand, girls who say “let’s have a party on Friday night and not invite her” are actually the aggressive ones!

Doug Lowenstein of the IDSA talked about demographics, revenues, and piracy. Lowenstein’s best moment was his story about walking into a software store in Singapore, realizing that everything around him was pirated, and noticing a “Shoplifters will be prosecuted” sign by the register.

MIT’s Henry Jenkins introduced the conference by citing Gilbert Seldes. In the 1924 book, "The Seven Lively Arts,” Seldes argued that comics, jazz, and cinema should be taken as seriously as ballet or opera. Jenkins drew many parallels between video games and these forms of expression, and in particular, between games and cinema. (We’ve all heard the movie comparisons before, but I suppose we should be grateful, because Seldes also tagged vaudeville and musical revues as “lively arts”.)

The conference concludes today, with sessions on the Aesthetics of Game Design, Games and Education, Games as Popular Culture, Games as Interactive Storytelling, and The Future of Games. More information and proceedings from the event can be found at http://web.mit.edu/cms/games/.

Losses Mount, Cavedog Closes
GT Interactive's third quarter results were short on bright spots, as the company announced that net losses for the third quarter reached $118 million. Revenues slipped to just $102 million for the third quarter versus $246 million for the same period last year. Though GT blames the quarter's slump on a light release schedule, as much as $89 million of the quarters loss can be attributed to charges related restructuring and reorganization related to the company's acquisition by Infogrames. GT's reorganization includes an end to its European operation, folding its budget publishing business, and the closure of Total Annihilation developer Cavedog Studios.

[Thursday, February 10, 2000]

Sega Names Two VPs
Sega of American has hired new vice presidents to oversee the company's quality assurance and information technology departments. Munawwar Ali Daimee, joining Sega from Sun Microsystems, will be responsible for establishing quality control systems for all aspects of Sega's business with an emphasis on outgoing product quality. Taking on the role of vice president of information technology will be Steven McIntosh. McIntosh was previously director of information technology for Hitachi PC Corporation. Sega also promoted eastern regional sales director Tim Flynn to the position national sales director. Flynn will service both e-commerce and traditional retail sales channels for all of North America.

Playstation 2 Compatibility Problems
Sony Computer Entertainment is reporting some possible problems with the promised compatibility of existing Playstation software with the upcoming Playstation 2. While the company insists that most older games will function perfectly, several older Playstation titles may have problems with images or sound when played on the newer console. Sony has yet to nail down the exact nature of the problem, hinting that most of the difficulties are with third party games that bypass Sony's APIs and write directly to the hardware. Sony has promised more details, including a list of incompatible games, when it has better determined the nature of the problem.

Egames Responds
At least one defendant in a video game intellectual property suit filed by Hasbro is vowing to fight. Jerry Klein, CEO of budget game publisher eGame has called the allegations of copyright infringement without merit and has promised that his company will defend it right to use the fundamental game play concepts that are at the heart of the classic games Hasbro is claiming were infringed upon. "Hasbro is unfortunately trying to control the ideas behind certain video games when such ideas are free for others to use and improve upon," said Klein.

Activision Gets Tesh
Activison has signed on with Viacom Consumer Products to snag one the oddest interactive entertainment licenses around. Under the terms of the agreement, Activision has worldwide exclusive rights to develop and publish titles based on Paramount Television's Entertainment Tonight. While ET is the number one syndicated entertainment magazine, it is unclear exactly how it will translate into an entertaining title. "Now is the optimum time to bring a popular television show with worldwide recognition like Entertainment Tonight to the PC," said a suitably vague Kathy Vrabeck, VP of global brand management for Activision. The first Activison product based on the license should ship this year, to coincide with Entertainment Tonight's 20th anniversary.

[Wednesday, February 9, 2000]

S3 and Nvidia Settle
Rival 3D chipmakers Nvidia and S3 have come to a settlement in their ongoing patent infringement battle. The two companies settled their differenced by entering into a seven year agreement to cross license a broad range of the companies respective patents. As part of the deal, both companies will drop their pending patent infringement suits. "Based on our intellectual property strengths, S3 and nVidia rank as possibly the only two companies positioned to win long-term in the PC graphics market," said S3 chief technology officer Andrew Wolfe.

Dreamcast Network in March
Sega first fully networked Dreamcast game will arrive three months earlier than expected, but later than many gamers had hoped. Puzzle action hybrid Chu Chu Rocket will make its debut on March 2, featuring full multiplayer online gaming via the Dreamcast network. Sega consider the game to be the complete of the fourth phase of its online game development strategy, with the next phase involving a move towards providing 3D online games by the fall of 2000. Sega promises more first and third party online games will appear throughout this year.

Acclaim Promotes Cook
Acclaim Entertainment has announced the promotion of Nigel Cook to the position of vice president and studio head at Acclaim Studios Austin. Cook had previously served as Acclaim Austin's vice president of product development. "Having been at the studio for the past eight years, I know that Acclaim Austin will continue to evolve as one of the best game development studios in the industry," said the newly appointed studio head. Cook will be responsible for managing all aspects of the Austin facility.

[Tuesday, February 8, 2000]

Rage Acquires
Acquisitive Rage is expanding further to position itself for a push into handheld, Internet, and mobile games. The company has spent $5.5 million, which is to be financed through the issuing of 6.5 million Rage shares, to acquire new studios in Scotland and Leeds, while also taking a 20 percent stake in newly formed handheld developer Denki Ltd. Rage has signed DMA Design founder David Jones to oversee its new Scottish operations. Rage also formed a new Leeds studio in a $3.2 million deal with conversion specialist house RGB Tree. "The development of on-line Internet gaming platforms and [wireless application protocol] devices provide us with significant new opportunities to ensure mass-market penetration for our titles," says Rage's Paul Finnegan.

Hasbro Earning Up
Despite a $53 million dollar loss on the year from the company interactive division, Hasbro managed to ride strong sales of popular Pokemon and Furby tales to fourth quarter earnings 18 percent better than same period last year. Hasbro reported $155.4 million in the fourth quarter, compared to $131.8 million in the fourth quarter last year. Net earnings for the year increased 30 percent to $286.6 million, compared to $220 million in earning the previous year.

AIS Buys Zombie
Game maker Zombie has been acquired by Advanced Interactive Systems, a company specializing in video based simulators for law enforcement. AIS President Al Davis explained the reasoning behind the acquisition, "Zombie gains by accessing our global sales force, resources for future growth, international presence and skill at marketing simulator technology. AIS gains immediate access to the international gaming market, as well as Zombie's applied research and development capabilities in such areas as computer graphics and gaming via the Web." Zombie will become a subsidiary of AIS and will operate independently under the management of Zombie founder Joanna Alexander. Zombie will continue to create original game titles, the next being a new chapter in the Spec Ops series using the Lith Tech engine.

Favorite Game Nominees
Nominees for the first ever videogames awards in the sixth annual Blockbuster Awards have been announced. The line up for the coveted Favorite Videogame category are Army Men: Sarge's Hereos, Super Smash Bros., Driver, Resident Evil 3: Nemesis, and Pokémon Yellow. Favorite Playstation contenders include Driver, Gran Turismo 2, Resident Evil 3: Nemesis, Syphon Filter, Tomorrow Never Dies and Tony Hawk's Pro Skater. Winners will be announced as at the Blockbuster Awards ceremony in June.

PC Data's Top Ten
PC Data has let us in on the best selling game PC games for the week of January 23-January 29, 2000.

1. Who Wants To Be A Millionaire, Disney
2. Centipede, Hasbro Interactive
3. Parker Brothers Classic Card Games, Hasbro Interactive
4. Milton Bradley Classic Games, Hasbro Interactive
5. MP Roller Coaster Tycoon, Hasbro Interactive
6. Final Fantasy VIII, Electronic Arts
7. Microsoft Age of Empires II: Age Of Kings, Microsoft
8. MP Roller Coaster Tycoon Corkscrew Follies, Hasbro Interactive
9. Microsoft Flight Simulator Pro, Microsoft
10. Starcraft, Havas Interactive

[Monday, February 7, 2000]

Reynolds Leave Firaxis
Firaxis has announced that game designer Brian Reynolds has decided to part way with the company that he co-founded. Reynolds was involved with both of Firaxis' works in progress, a new chapter in the Civilization series for Hasbro and dinosaur strategy for game Electronic Arts, but the company reports that his departure will not affect the development of either title.

Hasbro Files Suit
Hasbro Interactive has filed suit against several game companies over unauthorized versions of some well-known videogames. The suit, filed in Monday morning in United States District Court in Boston, maintains that eGames, GT Interactive, and several other game makers alleging infringement on Hasbro copyrights to games like Centipede and Asteroids. Also named in the suit are Xtreme Games, MVP Software, Webfoot Technologies, and Varcon Systems. The games in question are largely low cost games, with titles like TetriMania or Mac-Man, that are rip-offs of classic game titles. Hasbro acquired the exclusive rights to many of these games as part of its purchase of Atari, and in the past year has become more interested in enforcing its copyrights as it has released new 3D versions of Centipede and Missile Command. "Content is Hasbro's core business and other companies don't have the right to profit from the success of our intellectual properties and our ability to make them successful. We're committed to protecting our brands and licenses to the full extent of the law," said Hasbro general counsel Barry Nagler.

Blockbuster Adds Game Award
The Sixth Annual Blockbuster Entertainment Awards will, for the first time, honor the year's top videogames. The new category will join the awards current slate of awards for movie actors and actresses in top performing movies and musical artists based on top selling albums. Presumably, the new video games will also be based upon game sales. The awards will be presented live from Los Angeles' Shrine Auditorium on Fox television in June.

Quantum 3D Appoints CEO
Quantum 3D has announced the appointment of Jeff Edson as the company's new CEO. Edson spent 17 years at Intergraph Corporation, where he was involved in the launch of Intergraph's Digital Media Division before becoming Intergraph's president of visual computing. Edson replaces acting CEO Gordon Campbell, who has served as Quantum's chairman of the board since the company's founding in 1997.

Past News


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