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by Daniel Huebner and Jennifer Olsen

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News

Week of September 4 - September 10, 2000

[Friday, September 8, 2000]

Poke Mart
Nintendo is planning to open a number of Pokemon retail stores. The company hopes to open more than ten locations, with the first outlets appearing in London and New York early next year. The shops, which will supplement existing Pokemon merchandise with exclusive products, are part of a Nintendo plan to increase long-term financial stability and balance the peaks and valleys of the videogame business. "This is one of many measures that I have in mind to help Nintendo stay successful for the long term, even after I leave the company," said Nintendo President Hiroshi Yamauchi.

EA Agrees
Electronic Arts is voicing its support of retail sales restrictions for mature game titles. The world's leading publisher of videogames issued a statement of support following the announcement of retail controls on mature content at Kmart and Wal-Mart. "While M-rated games are a very small percentage of EA's portfolio, we applaud the decision by retailers to enforce the MSDA rating system," said Electronic Arts CEO Larry Probst
.

[Thursday, September 7, 2000]

Retail Standards
Kmart and Walmart are joining Toys R Us restricting the sale of mature games. Kmart has announced that the chain will refuse to sell 'M' rated mature game titles to anyone under the age of 17. The chain will use a barcode scanner to remind clerks to check ID. Walmart has announced that its stores will enact the same policy. "Kmart recognizes its responsibilities in helping parents monitor the content of video and computer games purchased for their children," said Kmart COO Andy Giancamilli. Kmart will enact the new standard on October 15 in all of its 2,164 stores.

IP Suit Settled
Hasbro is settling more of its classic game intellectual property suits. The company has come to terms with eGames, MVP Software, and Webfoot Technologies in a suit concerning the intellectual property rights for a number of classic Atari game titles. Under the agreement, eGames, MVP, and Webfoot will acknowledge Hasbro's copyright and discontinue sales of the offending titles. Hasbro will also receive an undisclosed monetary settlement. "The protection of our core assets is critical to ensuring Hasbro Interactive delivers to the marketplace the highest quality, best-playing games possible," said Hasbro Interactive President Tom Dusenberry. Hasbro had previously reached settlements with GT Interactive and Varcon Systems.

[Wednesday, September 6, 2000]

Sony Court Date
Sony and Connectix have a court date to finally settle their differences. Judge Charles Legge ahs ordered the case on the legality of Connectix's Virtual Game Station emulator to go before a jury next March. The judge had previously dismissed seven of Sony's nine complaints against Connectix; only the two remaining allegations of unfair competition and trade secret violations will be tried in March. Sony has a separate patent infringement suit pending.

Infogrames of Steel
Infogrames is planning to bring Superman back to the gaming world. The company is entering into a wide-ranging deal with both DC Comics and Warner Brothers to create a number of games across multiple platforms based on both the Superman comic books and the Superman animated series. "The exciting range of Superman's powers, the richness of his supporting cast, his colorful rogues gallery and his entire universe give us incredible material to draw upon," said Infogrames Kerri Orders, "We intend to use this material to create epic adventures for the Man of Steel that will leave gamers in awe."

Tangent Adds Talent
Wild Tangent is adding some experienced game producers to it ranks. Joining the company are Sanjay Bala-Krishnan, David Schwartz, and Phil Shenk. Bala-Krishnan, formerly executive producer for strategy games with Dynamix, will serve Wild Tangent as senior director of product development. Former Midway Technology Director Schwartz joins Wild Tangent as director of product development, as does Diablo 2 artist Phil Shenk. "The addition of these industry experts to our content group will enable Wild Tangent to produce more of the top-notch entertainment content that our users and customers have come to expect," said Wild Tangent's Kevin Gliner.

Sony Promotions
Sony Computer Entertainment America is making some changes in the head office. The company is promoting two long serving executives to the title of senior vice president. Andrew House, who's past accomplishments include the marketing program that made Playstation a household name, will handle the day to day management of SCEA's third party program, including licensee relations, product planning, and strategic relationships. Jack Tretton, a founding member of SCEA, will look after sales and distribution as well as merchandising and channel marketing. "As we prepare to launch the long-anticipated PlayStation 2 computer entertainment system, we understand the importance of further strengthening our management team so that our valued retail and third party partners are supported by seasoned executives that can ensure the broadest continuing support for the platform," said SCEA President Kaz Hirai.

No New Laws
A report from the Federal Trade Commission attacking the marketing of violent entertainment doesn't ask for new regulations. Variety is reporting that the report stops short of recommending specific legislation regulating the entertainment industry, but Senator John McCain still intends to make the FTC's findings a key part of a Senate Commerce Committee hearing on the matter.

Shockwave Goes Game
Shockwave.com will return its focus to games as it nears an IPO. The company had been spending millions to attract Hollywood talent to create original programming, but is backing away from that strategy in a move to cut costs. Projects from the likes of Tim Burton and David Lynch will be completed and showcased on the site, but interactive games will once become Shockwave.com's main focus.

[Tuesday, September 5, 2000]

THQ Buys Volition
Champaign, Illinois, based Volition is now a part of THQ. The publisher bought the Parallax Software spin off in exchange for stock and assumed $500,000 in net liabilities. "Volition is a strategic addition to THQ's business,'' said THQ CEO Brian Farrell, "Their technological capability and creative talent have brought about some of the most original, innovative gameplay in the industry." The deal, which also includes Volition's Parallax Online game matching service, was finalized on August 31. Volition is currently working on Summoner and Red Faction for PC and PS2.

More THQ
The Volition buy is not THQ's only new move. The company is also reaching to the wireless market by signing a deal to provide game content for Siemens mobile devices ranging from WAP phones to Internet appliances. The first game under the new agreement, Pocket Golf, will appear on a variety of platforms in 2001. In the more traditional handheld market, THQ is bolstering its offerings by picking up the publishing and distribution rights to a number of Lucas Arts Star Wars and Indiana Jones titles. THQ will distribute Lucas Arts developed Gameboy and Gameboy Advance versions of Indiana Jones and the Infernal Machine and Obi-Wan Adventures, as well as four future titles.

Past News


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