Matsushita plans to boost monetary incentives and other early retirement support in bid to counter “severe” economic environment that’s expected to result in ?265 billion net loss in fiscal year ending in March 2002, company said Tues. in releasing 2nd quarter results. Senior executives told reporters that 8,000 employees were expected to apply for early retirement by end of March. They said 3,000 applications had been received as of mid- Oct. Matsushita said it expected to cut personnel costs ?100 billion in fiscal 2002 as result of early retirement and other initiatives.
Microsoft selected Activision as distribution partner for Xbox videogame system in Germany. As part of agreement, Santa Monica, Cal., game maker Activision will distribute Xbox hardware and software to German independent retail channels -- excluding toy channel -- via its established NBG EDV Handles & Verlags subsidiary. Activision said deal “further strengthens” its “distribution and marketing operations in Germany where it currently provides videogames from Activision and other leading independent software publishers.” Xbox Gen. Mgr. J Allard said his company had “invested considerable time and resources into potential distribution partnerships” and believes Activision deal “will result in greater overall efficiencies for Microsoft.” Latter said NBG was named Xbox partner “after a thorough selection process led by” Microsoft Home and Retail Div. Dir. Risto Rautakorpi and “was chosen based on meeting a number of criteria including skills, experience, efficiencies in customer management, leading edge approach, account management, logistical execution, system’s flexibility, adequacy of storage facilities and financial strength.” Xbox is slated to ship in Europe on March 14 at 479 euros ($434), following Nov. 15 N. America rollout at $299.
Lycos global Web network said “Xbox” was 29th most popular online search by its users in week ended Oct. 27. Xbox beat out PlayStation 2 (#39) for first time during week and was considerably ahead of GameCube, which Lycos said missed top 50.
Aaron Rents reported $1.9 million 3rd quarter loss, reversing year-earlier $6.7 million profit as it took $5.6 million in one-time noncash charges related to its struggling rent-to-rent (RTR) business. Sales rose to $132.5 million from $124.8 million as revenue from rentals and fees jumped to $99.3 million from $89.4 million. Charge included $3.8 million in future real estate lease obligations and $1 million for write- down of inventory. Aaron’s sold 6 RTR stores in quarter and gradually reduced number to 72 from peak of 186. RTR declined 18% in same-store sales. RTR “has lost a lot of business not only in the last 6 months, but in the last 10 to 15 years,” CEO Charles Loudermilk said. At same time, Aaron’s has expanded number of sales and lease ownership stores to 556 -- 357 company- owned and 199 franchised -- including opening of 60 in quarter. Many of new openings stemmed from acquisition of 80 former Heilig-Meyer stores, Richmond-based chain that liquidated earlier this year. Sales and lease ownership business posted 20% gain in revenue in quarter to $96 million. Systemwide, which included revenue from franchised locations, sales jumped to $141.9 million from $118.7 million.
Digital watermarking for DVD-Video will be in place by next Christmas, with DVD Copy Control Assn. (DVD CCA) scheduled to select system by April, Macrovision CEO William Krepick said. Meanwhile, record labels are testing variety of copy protection technologies for CDs but are unlikely to sign exclusive licensing agreements for any until they're satisfied with balance of protection and playback compatibility, he said.
BMC Industries, hampered by slowdown in sales of TV and PC monitor masks, reported $4.1 million 3rd quarter loss, vs. $2.7 million profit year ago as revenue plunged to $73.3 million from $90.2 million.
Boston Acoustics and Visteon will develop and deliver Boston Acoustics-branded OEM autosound systems to automakers under joint development agreement announced Tues. Agreement could provide boost to Boston Acoustics OEM business, which has slumped because of its reliance on Gateway Computer as dominant customer of multimedia PC speakers.
Consumer intentions on buying TV sets fell in Oct. from Sept., according to preliminary data in Conference Board monthly survey. Of 5,000 households polled, 6.7% said they planned to buy TV set in next 6 months, down from 7.5% in Sept., 7.3% in Aug., 6.9% in Oct. 2000. Consumer Confidence Index fell in Oct. for 4th consecutive month, and at 85.5 stood at lowest point since Feb. 1994. Conference Board said: “Widespread layoffs and rising unemployment do not signal a rebound in confidence any time soon. With the holiday season quickly approaching, there is little positive stimuli on the horizon.”
Sears opened 2nd store that melds CE and appliances in freestanding location in Bolingbrook, Ill., and will add 3rd in Mount Prospect, Ill., by early Nov., Home Electronics Vp-Gen. Mgr. Ray Brown said. Sears opened first test store in Ind. earlier this year and thus far has posted sales incremental to existing department store locations, Brown said. “If you look at the trading area and the stores that used to service it incrementally we are growing that business,” he said. Brown declined to release sales figures. While first 3 stores have same format, “I can’t say we won’t looking at tweaking it next year and 2002, to a certain degree, will vary [in format] at least slightly.”
NCUBE Corp. and Widevine Technologies announced agreement to offer streaming media security to broadband service operators. “Encryption on the fly” integrates nCUBE’s n4 Streaming Media Appliance with Widevine Cypher, Widevine video-on-demand (VoD) technologies. Idea is to provide broadband service operators, media and entertainment companies secure means for deploying digital content on-demand to consumer devices such as personal computer and TV set-top box. Partnership will work to secure “valuable and proprietary digital content from being stolen, hacked or otherwise compromised,” nCube Pres. Michael Pohl said.