Top-selling DVD in 4-1/2-year history of format is Shrek, which sold 5.5 million copies to consumers in N. America in just over 4 weeks of release, DreamWorks said Tues. Previous recordholder, Gladiator, has sold 5 million copies since its 2000 release, DreamWorks said. Studio said retailers had purchased 7.3 million Shrek DVDs, and additional copies were being made to avert holiday shortages.
New line of single-chip Class D audio amplifier devices was introduced by Philips Semiconductors, targeted at multiple applications, including DVD receivers. First such device, TDA8920TH, claims high efficiency for reduced power consumption and heat dissipation. As result, Philips said, minimizing use of heat sinks can mean smaller application size and lower cost. Samples will be available in first quarter, with volume production starting in 2nd quarter. Estimated cost will be $5.50 per device in quantities of 1,000 or more.
Philips is adding 3 audio CD recorders to line in Europe, including 2 dubbing decks. Each has 3-CD changer and separate recorder drive. Top-shelf CDR820 ($500) has 4x recording, MP3 playback, Direct Line Recording function that makes bit-for-bit transfer, thereby preserving HDCD and DTS encoding.
Audiovox shares were down about 1% in early-afternoon Nasdaq trading Tues., day after shares fell to $6 in after-hours trading from its Nasdaq close of $7.27 on announcement that company would miss its previously disclosed forecast for 4th quarter. Audiovox said it expected “modest” improvements sequentially in 2nd half of fiscal 2002. But in preliminary guidance for first quarter, company said it expected net profit decline to $1-1.5 million (4- 7? per share) vs. year-earlier income of $2.6 million (12?) on flat revenue growth to $320-$330 million. Chmn. John Shalam said fiscal 2001 was marked by “challenging business climate” from economic slowdown and effects of Sept. 11. He said company recently had observed start of “some positive signs of stabilization” in market, but price erosion in wireless phones was “stronger than ever.”
Ubi Soft Entertainment and Take-Two Interactive will be facing off in London court starting Jan. 22. That’s date for first round of legal battle between game makers, Ubi Soft said Tues. At issue is Take-Two’s sales of Ubi Soft’s Red Storm Entertainment games. Ubi Soft said that before acquiring Red Storm, latter had granted Take-Two right to distribute Red Storm videogames in Europe and some other regions outside U.S. until Dec. 2000. Red Storm is suing Take-Two for ?6.3 million ($8.95 million), which it claims Take-Two owes for sales of Red Storm products made by Take-Two for which latter allegedly hasn’t paid Red Storm. Red Storm parent Ubi Soft has been in litigation with Take-Two for 12 months, Paris-based game maker said, adding that Take-Two paid ?1.75 million ($2.49 million) to Red Storm and additional ?250,000 ($355,311) in legal expenses. Ubi Soft said litigation over payment of outstanding balance would begin in court this winter and final claim could reach as much as ?7.5 million ($10.66 million) after interest payments and legal fees.
Hollywood Entertainment (HE) CEO Mark Wattles opened 2 stores in Ore. under licensing agreement with chain that was part of employment contract signed earlier this year. Under agreement, Wattles, which isn’t expected to open more than 20 stores, must pay $25,000 per store license fee, royalty of 2% of revenue and purchase some products and services from HE, chain said in proxy for Dec. 17 annual meeting filed with SEC. As of Sept. 29, Wattles owed HE $506,000, payment that has been delayed as company seeks to comply with franchise laws, SEC filing said. Wattles’ HE stores are first that would operate as franchisees. Chain has 1,809 company-owned stores. Wattles, which is being paid $975,000 annual salary under current contract, was granted 3 million shares of common stock as part of original 1993 incentive plan and given options for another 3 million shares at $1.09 under 2001 program. Chain also has terminated consulting contract that Wattles’s father, Bruce, had with previous management. Bruce Wattles, who operates Game Trader Entertainment that supplies testing services, had worked with chain’s Game Crazy Div., which operates videogames section in 60 HE stores. HE paid $392,312 to Game Trader in 2000, SEC filing said. Mark Wattles, who founded HE, returned in Aug. 2000 and replaced former COO Jeffrey Yapp. Three other Wattles relatives are employed by chain and are paid salaries of $62,000-$140,000, according to SEC filing.
Roxio has reached tentative agreement to buy MGI Software for $32.8 million in merger that would combine former’s CD and DVD recording software with latter’s photo and video editing products.
Copy-protected CD title from Universal Music also will be available on analog cassette. Label is making available tape of More Music from Fast & Furious to accommodate customers whose audio equipment is unable to play copy-protected CD. First copy- protected title from Universal will be released Dec. 18 and is believed to use Cactus Data Shield system from Tel Aviv’s Midbar Tech, as BMG does on problem-prone White Lilies Island CD by Natalie Imbruglia. Universal has said Fast & Furious CD will have label advising that disc is copy protected. Label has advised retailers that disc won’t play in some CD players, DVD players, videogame consoles or Apple Macintosh PCs -- effects already encountered with Cactus-encoded Imbruglia CD. Universal has changed its policy and authorized retailers to accept returns of opened CDs from customers.
HQ began shipping game MX 2002 featuring Ricky Carmichael for Xbox. Title was developed for Calabasas Hills, Cal., game maker by its Pacific Coast Power & Light subsidiary.
While other Japanese companies pursue layoffs and employee buyouts, Hitachi is planning to add workers over and above original expansion plans -- another 900 new staffers by March 2003, in addition to 3,000 new hirings it plans. New employees will be added in sales and engineering, Japan press report said.