Samsung Electronics is partnering with Macy’s for in-store promotion supporting manufacturer’s Yepp digital audio players. Companies said Yepp line would be sold in new “Tech Shop” in Macy’s Herald Square flagship store’s Cellar section starting Mon., marking introduction of digital convergence products to store. In fact, addition of Yepp line marks return of CE products to Macy’s, which had CE section in its stores before exiting business in late 1990s to concentrate on more profitable items. Samsung digital audio kiosk is being installed in Tech Shop, companies said. As part of promotion, companies will be giving away merchandise, offering product demonstrations, conducting contest offering chance to win 20” Samsung TV/DVD combo. Companies also will host in-store performance by R&B group City High Nov. 12. Yepp players and City High event are being promoted on Macy’s Jumbotron outside store, and on radio.
In report to FCC, NCTA said CableLabs released specifications for digital TV set that would allow interactive services. Set won’t require set-top box for compatibility. NCTA also said consumers with current generation DTV sets could receive broadcast digital or HDTV programming over their cable systems where cable companies and broadcasters had reached carriage agreements. In those cases, cable operators provide set-top boxes to subscribers. This was NCTA’s 3rd progress report on compatibility between cable systems and consumer electronics equipment. Report was filed in response to FCC order asking for progress reports on DTV compatibility issues every 6 months until Oct. 2002.
Amazon.com revealed in SEC filing that as of Sept. 30, “1,320 employees had been terminated and actual termination benefits paid were $11 million.” E-tailer said job cuts were made as part of restructuring to reduce operating costs, streamline structure and consolidate certain fulfillment and customer service operations. Cuts made were throughout company in clerical, fulfillment, professional and technical departments. Company said it also saved money via “migration of a large portion of its technology infrastructure to a Linux-based operating platform.” Technology costs were significantly reduced in 3rd quarter as result of that migration, Amazon said: “We expect to continue to invest in technology and improvements in our Web sites during the remainder of 2001 and 2002, which may include, but is not limited to, offering additional product categories to our customers and implementing additional strategic alliances, as well as potentially continuing our international expansion.” Company also described impact terrorist attacks had on its business in filing: “Immediately following the events of September 11, 2001, customer purchases significantly declined but have recovered. We estimate that the net sales impact as a result of the events… was between $25 million and $35 million.”
Take-Two Interactive Software started shipping “T"-rated (Teen) PS2 game Smuggler’s Run 2: Hostile Territory at $49.99 in N. America. N.Y.C. game maker said title, developed by Angel Studios and published by company’s Rockstar subsidiary, would be available Fri. in Europe.
Las Vegas CES will take all “reasonable” steps to provide “safe haven” for attendees and exhibitors, CEA Pres. Gary Shapiro and other senior officials told reporters Tues. Shapiro and Karen Chupka, CEA vp-events & conferences, avoided disclosing details, but indicated security measures would be somewhat less restrictive than those outlined earlier same day by officials at Comdex (CED Oct 31 p1), which opens Nov. 12 in same Las Vegas Convention Center. Most obvious difference between CES and Comdex policies is rule on carrying of bags onto show floor. Comdex management says it’s intent on strict enforcement of “no bags” rule, except for women’s handbags and somewhat looser restrictions that will apply to reporters. Comdex also plans to provide no facilities for checking or storing bags and therefore is advising general attendees to leave them in their hotel rooms.
Retailers are finalizing their plans for debuts at their stores in conjunction with Microsoft Xbox and Nintendo GameCube rollouts later this month. Meanwhile, Electronics Boutique (EB) was among retail chains to tell us they were confident Xbox and GameCube introductions would indeed happen as planned on, respectively, Nov. 15 and Nov. 18 in N. America.
Ken Gold, ex-eYada Media Group, joins Majesco as mktg. vp… Ta-Wei Chien shifts to TiVo senior vp in charge of new Technology Business Unit from senior vp-engineering & service operations… Peter Fannon, Matsushita America vp-technology policy & regulatory affairs, named chmn. of new CEA DTV Subdivision through 2002… Retiring from Polaroid: Samuel Liggero, vp-media R&D; Paul Lambert, senior vp; Thomas Hennigan, vp-information technology… Robert Gargus, ex-TelCom Semiconductor, joins Silicon Image as CFO and vp-finance & administration… CVS Exec. Vp-CFO David Rickard elected a dir., Harris Corp.
Ubi Soft Entertainment expressed confidence Wed. about 2nd half of its fiscal year, saying that despite “uncertain economic climate… the videogame industry remains dynamic due to the fast growth of the new machine installed base.” Paris-based game maker said it planned to ship “over 100 new games between now and March 22, 61 of them in the 3rd quarter” (Oct.-Dec.) across all platforms and genres. Company said: “By the end of the current fiscal year, the group will have added another 160 titles to its catalog, 30 of them PlayStation 2 (PS2), 5 for GameCube (with 2 titles at the console’s launch in the U.S.A., Disney’s Tarzan Untamed and Batman: Vengeance), 3 for Xbox and 30 for Game Boy Advance” (GBA). In addition to 2 U.S. GameCube titles, Ubi Soft said other games showing “particular promise” included Rayman Arena and Tom Clancy’s Ghost Recon. Company made comments as it announced 2nd quarter consolidated sales increased 24% to 53.1 million euros ($47.8 million) from 42.9 million euros ($38.6 million) in same quarter year ago, while first-half sales improved 72% to 113.4 million euros ($102.2 million) from 65.9 million euros ($59.4 million). Game maker said it published 46 new titles in first half of its year -- 6 more than same period year ago. While PC games represented 50% of first-half sales, GBA generated 21% of revenue. Best-selling titles included Myst III: Exile, of which “more than 750,000 copies were sold worldwide,” Ubi Soft said. On geographical basis, N. America contribution to company’s sales doubled from first half year ago, accounting for 40% of sales as result of what company said was “success of [its] acquisitions and of the distribution strategy for this geographical area.” Ubi Soft added: “The good performance in the first half of the year, which normally does not exceed 30% of Ubi Soft’s business for the year, combined with the quality of the future portfolio of games, allows the group to confirm its targets for the 2001/2002 fiscal year: 35-40% increase in sales [and] net margin of between 4 and 5%.” Company plans to report first-half earnings Dec. 14.
Recoton said it expected to report breakeven results for 3rd quarter, compared with $1.93 million loss in same year-earlier quarter. However, it said it anticipated 13.7% lower revenue of $136 million on sluggish economic environment and impact of “horrific” events Sept. 11. Chmn. Robert Borchardt said company still expected profitable 4th quarter and year, but “we anticipate these same factors could also adversely affect our results for the final 3 months of 2001.” He said Recoton estimated 4th quarter revenue would fall to range of $210-$215 million, up slightly from $209.57 million year earlier. He said on that revenue base, net profit for quarter should increase to $8.5-9.5 million range compared with year-ago profit of $7.9 million.
Electronic Arts development studio Origin Systems signed agreement with director/producer and Spawn creator Todd McFarlane to create characters exclusively for new version of Ultima Online game. Ultima Online: Lord Blackthorn’s Revenge will ship in Feb., company said. Origin also is collaborating with McFarlane and McFarlane Toys to develop line of 6 action figures based on new creatures from game and 2 comics based on game.