Industry executives may want to knock wood and count their blessings, but current holiday season for videogame industry so far is turning up nothing but good news, executives and retail sources we spoke to said. While much of post-Thanksgiving focus continues to be on strong launch of new systems GameCube and Xbox, difference this year might lie in performance of older platforms as Sony PlayStation 2 (PS2), PS one, Nintendo’s Game Boy Advance, GB Color and even Sega’s DreamCast that continue to find new customers.
EMachines was granted early termination of waiting period under Hart-Scott Rodino Antitrust Improvements Act for proposed $166 million sale of company to EM Holdings, it said in SEC filing. EM Holdings’ $1.06 per share tender offer for eMachines, which expires Dec. 27, would take latter private with largely same management including CEO Wayne Inouye. EM Holdings’ parent is KDS America, whose CEO Lap Shun Hui, also is member of eMachines board.
Gold Peak Industies (GPI) said 6-month net income tumbled 24.2% to $10.8 million on slowdown in cellular and laptop PC markets. Revenue dipped 1.5% to $282.1 million. Downturn in revenue was partly cushioned by “strong demand” from private label customers for 9 v alkaline batteries, company said. While demand for nickel metal hydride batteries “remained satisfactory” in 6 months, profit margins were affected by fierce price competition brought on by oversupply, especially in rechargeable batteries, company said. Amid “sluggish demand” for laptop PCs, GPI said it had slowed plans to increase production of lithium ion batteries but it was continuing development of those batteries for cellular phones, with products to be introduced in 2002.
Unnamed investor provided Palm with $50 million in financing to help fund company’s wireless and corporate sales efforts, company said Fri. Investment is convertible into Palm shares at $4.63, which it said was 130% of average price of Palm shares 5 days before closing of deal. Palm can force conversion of bond any time after year if its shares trade above $7.13 for some period of time. Note has 5-year term, 5% interest rate. Palm has said it would hire additional employees for corporate sales even as it scaled back in other areas. It recently said it would lay off 250 employees. Palm also is in process of spinning off operating system business, task that’s expected to be completed in first half 2002. Palm shares closed week at $3.72.
Despite hype over next-generation videogame consoles, Infogrames Senior Sales & Distribution Vp Wim Stocks said “PC games business is thriving and titles for gamers of all ages and interests are selling.” Saying company’s PC games had been among top performers in NPD’s top 10 PC chart, he said “we have every expectation that these [PC games] will continue to perform throughout the holiday season.”
PlanetWolfenstein.com Web site was launched providing information on game Return to Castle Wolfenstein from Activision, Gray Matter Interactive Studios, id Software.
Dropping from first place to 3rd among videogames rented in week ended Dec. 2 was Konami’s PlayStation 2 (PS2) title Metal Gear Solid 2: Sons of Liberty, according to Video Software Dealers Assn. (VSDA). Game earned additional $550,000 for total of $2.22 million since it shipped Nov. 14. In first place for week was Grand Theft Auto 3, another PS2 title, which earned $710,000 for total of $4.63 million since Oct. 3. Despite hype over GameCube and Xbox launches, game renters apparently still were content with PS2 games. Rounding out top 5 were more PS2 titles: Agent Under Fire at #2 with $670,000 in weekly earnings for $1.33 million total; WWF Smackdown Just Bring It at #4 ($480,000 for week, $1.15 million to date); Tony Hawk’s Pro Skater 3 at #5 ($330,000, $3.07 million).
FCC ruled that Time Warner Cable’s analog must carry obligations didn’t require cable company to carry Gemstar-TV Guide International’s electronic program guide (EPG). FCC said decision didn’t preclude companies from entering into commercial agreements that would involve carriage, and companies said they were in negotiations to that end. Commission used 3-pronged test to determine whether material carried in the vertical blanking interval (VBI) of local broadcasts was program-related and thus required carriage: (1) Is information intended to be seen by same viewers as are watching main program? (2) Must information be available during same interval of time as main program? (3) Is information integral part of main program? Commission ruled 4-0 that answer to questions was “no” on all counts.
Top 3 search terms so far this holiday season at Shop@AOL are Sony PlayStation, Miniskirts and Harry Potter despite hype over GameCube and Xbox console launches this month, AOL’s shopping service said. In same announcement, KBToys.com/eToys Product Development and Mktg. Vp Scott Wilder said over his company’s “biggest holiday shopping weekend of the year, AOL brought us more traffic, more sales and more first-time buyers than any of our other strategic partners.”
Sanyo will halt VCR production at Indonesia plant by spring in bow to intense price competition that has overtaken market. Sanyo confirmed it would continue to market VCRs sourced from S. Korean manufacturers. In discontinuing VCR manufacturing, Indonesia plant will boost capacity for digital cameras and recorders for surveillance cameras. Sanyo, which closed VCR plant in Germany earlier this year, is forecasting VCR sales in fiscal 2001 of $274 million, half level of 3 years ago. VCR price competition in U.S. has been fierce, with all models retailing for less than $100. As example, Walmart.com Web site Thurs. promoted Emerson 4-head mono model built at Funai plant in China at $49.