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by
Daniel Huebner and Jennifer Olsen
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 News
Week
of June 26-July 2, 2000
[Friday,
June 30, 2000]
Sony
Drops Suit
Sony is withdrawing the patent infringement it had brought against Connectix.
The suit, filed in February alleging that Connectix's Virtual Game Station
Playstation emulator violated Sony patents, was dropped just one day before
it was to go to trial. "While we recognize that Sony may still attempt
to bring some of these claims back before the court at a later date, this
represents the third victory in a row for Connectix in this case, said
Connectix CEO Roy McDonald, "We hope that at some point Sony will recognize
the merits of cooperating with us in giving added flexibility to consumers
and fans of the PlayStation." Sony had two remaining copyright claims
pending against Connectix.
Rumors Fuel Eidos
Eidos shares continue to soar on talk of takeover. The latest speculation,
which has Electronic Arts coming into to thwart a hostile takeover bid
from Infogrames, had Eidos stock on the London exchange closing in on
the five pound mark. Eidos was trading as low as 2.60 pounds before the
buyout speculation began.
Sony
Partners
Sony has become the latest player to line up broadband partners in Japan.
Close on the heels of the announced partnership of AT&T and Microsoft
affiliated cable provider in Japan, Sony has announced that it will team
with Tokyu Cable Television to jointly develop a high-speed broadband
network in Japan. Sony has taken a 10 percent stake in Tokyu as part of
the deal, with the option to increase its investment in the future. The
companies hope to add more cable providers to the partnership.
[Thursday,
June 29, 2000]
Softimage
Acquires
Avid Technology is acquiring the Motion Factory. The goal of the purchase
is to unite the interactive 3D animation technologies of the Motion Factory
with Avid subsidiary Softimage's top of the line tools, and to that end
Avid is placing former Motion Factory President and CEO David Pritchard
to the post of general manager of Softimage. "Uniting The Motion Factory
technology with the Softimage XSI will make Softimage the clearly preferred
choice for both linear and interactive developers," said Pritchard.
Infogrames
Paradigm
Infogrames SA is purchasing Paradigm Entertainment. Texas-based Paradigm,
best known as a developer of Nintendo 64 titles, will become a wholly
owned subsidiary of Inforgrames. "Infogrames' US strategy moving forward
is to increase the percentage of titles developed internally, focus on
high quality titles and lead next-generation console publishing," said
Infogrames Chairman Bruno Bonnell, "Paradigm's 80-plus person development
team will propel us towards these goals with their proven track record
of quality content and technological prowess." Infogrames will spend up
to 700,000 shares for the purchase.
[Wednesday,
June 28, 2000]
GT
Q4
GT Interactive, now known as Inforgrames, Inc., is reporting a sharp decline
in fourth quarter revenues. The company brought in $61.1 million for the
quarter, compared to $93.5 million in the same period last year. The net
loss for the quarter, including charges for restructuring and reorganizing
including layoffs and the closure of GT's international offices, stretched
to $140.6 million from last year's $54.8. Excluding charges, Infogrames,
Inc.'s fourth quarter loss totaled just $6.6 million. The company is continuing
to consider ways in which to align Infogrames, Inc with parent company
Infogrames, SA, including the possibility of combining operations.
Sony Broadband Head
The Industry Standard is reporting that Sony has hired a leader for its
Sony Broadband unit. According to the report, Sony has attracted Credit
Suisse First Boston Managing Director Robert Wiesenthal to take on the
role of chief strategy officer. Wiesentahl's main task will be to seek
out digital content and distribution investments to jump-start Sony's
broadband ambitions.
[Tuesday,
June 27, 2000]
Computec
USA Closes
German publisher Computec Media has shuttered its U.S. offices. Affected
by the closure are Incite PC and Incite Video Games and MCV Now. The company
has previously abandoned the print edition of its MCV offering amid stiff
market competition. The company will retain a skeleton crew, consisting
of former Incite PC Editor Tasos Kaiafas and former MCV Now Co-Editors
Mike Sabine and Simon Price, as a U.S. new bureau. Computec U.S. CEO Torsten
Opperman will return to Germany.
Jack
for ABC
ABC is bringing You Don't Know Jack to TV. The network, which had enjoyed
great success with Who Wants to Be a Millionaire, is ordering 13 episodes
of the Carsey-Warner produced television version of the popular video
game show.
Broadband
Japan
Microsoft and AT&T are joining forces to provide broadband service in
Japan. Jupiter Telecommunications, co-owned by AT&T subsidiary Liberty
Media, will merge with Titus Communication, in which Microsoft holds a
60 percent stake, effective September 1. The move is expected to make
the merged company a strong contender to Nippon Telegraph and Telephone
in Japan's underdevelopment high-speed Internet market. Liberty Media
will take a 35 percent share of the merged company, while Microsoft will
hold a 24 percent stake.
[Monday,
June 26, 2000]
Infogrames
Reverse
Infogrames has completed its 1 for 5 reverse stock split. The stock consolidation,
which the company had previously announced, was identified by Infogrames
as the cause of a distortion in its stock price that led the company to
face delisting from the Nasdaq National Market. Infogrames will begin
trading on a post-split basis at the opening of business on June 27.
Past
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