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by Daniel Huebner and Jennifer Olsen

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News

Week of October 30 - November 4, 2000

[Thursday, November 2, 2000]

PS2 Tariff Debate
Sony is pushing the United Kingdom to re-classify the Playstation 2 for tax purposes. Sony would like to see the machine classified as a computer, thus avoiding the higher tariffs imposed on products classified as videogames. Costums officials denied an earlier request from Sony to consider the console to be a computer on the grounds that the Playstation 2 was not significantly different from its predecessor. The original Playstation was classified as a videogame. "We may consider appealing to an international organisation, possibly the World Trade Organisation, although that is a long way ahead," said a Sony Computer Entertainment spokesperson.

Activison Gets Tenchu
Activison is acquiring the Tenchu franchise from Sony. Activison has entered into an agreement to acquire woldwide intellectual property rights to the best selling game series from Sony Music Entertainment. "Tenchu remains the leading franchise in the action-stealth genre," said Activision President Ron Doornink, "The acquisition of this property further underscores Activision's commitment to brands that can be market leaders across all platforms." Activisoin is planning to release a new Tenchu game for Playstation 2.

Minesweeper Math
A British mathematics professor believes Minesweeper could help to solve one of the fields most perplexing problems. Richared Kaye, of the University of Birmingham, believes that Minesweeper might lead to a solution to the P versus NP problem. According to Kaye, an algorithm for determining all combination of mine placement in an enlarged game of Minesweeper would also solve the P versus NP problem. "It's surprising that such a simple game would put us at such a frontier of mathematics. But the big questions in math are not very far below the surface of everyday life."

[Wednesday, November 1, 2000]

Sega Shifts Gears
Sega plans to address its recent financial woes by shifting its focus from hardware to software. The company is taking the wraps off an ambitious plan to boost its share of the videogame software market to 25 percent. Sega currently holds a 4.2 share, with Nintendo leading the industry with a 19.6 percent share. Sega's plans to reach that goal include providing software for rival consoles and licensing Dreamcast technology to makers of PCs and cell phones. "We aim to win the top share of the world market in the near future by increasing the number of platforms which can operate Sega software,'' explained Sega's Strategic Counsel Tetsu Kayama, "Our focus on content provision is back in place. Sega aims to become a real game creator." To that end, Sega is looking to overhaul its software development operation, including redirecting more than $200 million in investment funds from third-parties back to its own internal developers. Sega hopes these moves will put the company back into the black as soon as next year.

Edios CEO Adios
Eidos Chief Executive Officer Charles Cornwall is leaving the company. Cornwall's departure closely follows that of CFO Jeremy Lewis, who quit last month. Statements from the company have both Cornwall and Lewis leaving amicably to pursue other interests. COO Michael McGarvey will take up Cornwall's CEO role, and Eidos is still in search of a new CFO. "I believe that Mike McGarvey is one of the most talented and capable executives in the interactive industry and as a shareholder I have every faith in his ability to optimize the company's development in the future," said departing CEO Charles Cornwall.

Mical Joins Red Jade
Amiga and 3DO veteran RJ Mical is joining Red Jade. Mical will join the wireless entertainment start-up to identify technical objectives for the company and to lead internal and external software groups. Mical's previous roles include the co-invention of the 3DO gaming platform, co-creation of the Lynx handheld game system, and leading the software engineering team for Amiga. "Mical's extensive experience and proven track record will be invaluable to the development of our product," said Red Jade CEO Gunnar Tyrsing, "His history with bleeding-edge interactive entertainment hardware and software companies contributes to his profound understanding of what consumers are looking for in the future." Red Jade is developing a mobile, wireless hardware platform that combines games, music, and PDA functions.

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