Vivendi Universal Publishing subsidiary Knowledge Adventure started shipping 2 new interactive adventure games based on Fisher-Price’s Rescue Heroes preschool toy line. Rescue Heroes Meteor Madness is computer game for Windows and Macintosh priced at $19.99, while Rescue Heroes Molten Menace at $29.99 is for PlayStation. Each title is targeted at kids 4-7 years old.
Konami of America will follow Sept. release of PlayStation 2 (PS2) videogame Silent Hill 2 with exclusive version of title for Xbox “within weeks of the new system’s launch” on Nov. 15 that will feature additional characters, graphical enhancements, new chapter. M rated (Mature) Silent Hill 2: Restless Dreams for Xbox will be priced at $49.99. Also coming from Konami of America is Power Pro Tennis -- WTA Tour Edition (working title) for Game Boy Advance (GBA) at $39.99 and PS2 at $49.99. Each version will ship “in early 2002” and is equipped with 4-player mode allowing for doubles competition, said Redwood City, Cal., subsidiary of Japanese game maker Konami. Company said Power Pro was “first videogame to utilize the Women’s Tennis Assn. license.” Game features likenesses of real-life tennis pros including Jelena Dokic, Martina Hingis, Monica Seles, Serena Williams.
Independent online game company NCsoft made Lineage: The Blood Pledge available to N. American gamers. Company based in Austin, Tex., said Lineage “with more than 3 million subscribers and 250,000 concurrent users… is the leading worldwide subscription-based online game.” Game, which already had been made available in Asia, is being distributed via free download at new Web site, www.lineage-us.com. CDs also can be ordered from site and mailed for shipping and handling fee. Game comes with free 30-day trial. After that, charge is $15 per month in U.S. but players also can subscribe for 4 months at $11.25 per month.
After canceling its plan to offer 6 million shares of common stock earlier this week, Activision announced Thurs. that its board had approved 3-for-2 split of outstanding common shares. Split is payable Nov. 20 to shareholders of record Nov. 6, Santa Monica, Cal., game maker said. Company said split would be accomplished via 50% stock dividend. Instead of issuing fractional shares, shareholders will receive cash payment based on average of high and low sale prices of common on record date. Once split is completed, Activision said it would have 51 million common shares outstanding. CFO William Chardavoyne said split would “increase the number of shares outstanding, thereby enhancing our liquidity.” In withdrawing registration statement for public offering of common, Activision CEO Robert Kotick blamed decision on “current market conditions” and “volatility resulting from recent events.”
Movie Gallery (MG) said 3rd quarter net income rose to $1.2 million from $561,000 year ago on strength of strong DVD sales. Revenue increased to $86.4 million from $75.3 million on 5.6% gain in same-store sales. DVD titles accounted for 12% of overall revenue in quarter and were forecast to reach 20% by year-end, company said. Rental revenue jumped to $74.3 million from $64.5 million and product sales to $12.1 million from $10.8 million despite MG’s reducing number of new sellthrough titles it carries as result of lower margins. Sellthrough titles carried 20% gross margin in 3rd quarter, while rentals improved to 70.3% from 68.9%. As movie studios and video rental chains negotiate revenue-sharing agreements for DVD, margins “will stay similar to where they are now,” CEO Joseph Malugen said. MGM has reached DVD agreements with Blockbuster and Hollywood Entertainment, but has yet to do so with MG. Meanwhile, MG is awaiting final audits of Video Update (VU) before completing acquisition of 280-315 stores as part of proposed bankruptcy reorganization plan scheduled for hearing Oct. 31. MG has invested $15 million in chain since paying $10 million in May for 92% of VU’s $121 senior secured bank debt. Investment provided VU with working capital and ability to update computer system, Malugen said. Total investment is forecast at $30-$32 million including $20-$22 million cash and $10-$12 million for accrued liabilities and payables, CFO Stephen Roy said. Audit of VU has been slowed by investigation started by unsecured creditors committee into alleged fraud and embezzling of funds by former management. VU co-founder Daniel Potter, COO Daniel Howard and Exec. Vp Richard Bedard resigned in June. U.S. Bankruptcy Court Judge Judith Wizmer, Camden, N.J., amended VU’s reorganization plan in Sept. to include $125,000 trust for litigation stemming from claims against former management.
Roxio said 2nd quarter loss narrowed to $1 million from $1.8 million year ago as revenue increased to $30.5 million from $29.4 million. Amortization of intangible assets shrank to $1.4 million from $3.8 million while charge for stock-based compensation surged to $1.5 million from $648,000. Roxio’s Easy CD Creator burning software for Windows PCs and Toast for Apple’s Macintosh accounted for 79% and 14% of revenue, respectively. Go Back 3 system recovery software represented 7% of sales, company said. Easy CD Creator 5.1 is being packaged with new Windows XP operating system, which made formal debut Thurs. Roxio also has released DVD authoring software in Europe and U.S. and plans to add recording version here by early 2002. In effort to boost sales of Go Back, Roxio signed agreement with Symantec to package it with Norton SystemWorks 2002, deal expected to generate revenue of $3-$5 million in next 18 months. Meanwhile, Roxio said ad campaign, begun Aug. 27, has achieved 17% awareness among target 18-34-year-old audience with goal of reaching 33% by 2002. It remained bullish on CD burning prospects despite recording industry’s efforts to add copy protection to some releases. Confidence stemmed from recording industry’s failure thus far to establish single copy protection standard. Indeed, while Macrovision’s SafeAudio copy prevention system is playback- compatible with PCs, Sony’s key2audio is not. “There has not showed yet the holy grail of copy protection,” it said.
Sony Thurs. posted 2nd-quarter consolidated net loss of $111 million ($1 = ?119) on weakness in its core electronics business and despite 5.7% overall revenue increase to $15.02 billion.
Westwood Studios opened www.Be-A-Renegade.com life-style Web site featuring commentary, news, pop culture-based humor, reviews.
“DTVLink” is “baseline” term and logo approved by CEA Video Div. board to be applied to IEEE-1394 digital video products capable of interfacing with other gear. Logo requires that product use 1394 serial connection, conform to EIA-840 technical standard, and use Digital Transmission Content Protection. CEA said “matching logos” program would help retail salespeople determine product compatibility and ease purchasing decisions for consumers.
More than 4 in 10 U.S. consumers are at least somewhat likely to buy digital TV set in next few years, said NAB- commissioned telephone poll of 1,000 adults Sept. 20-25. Picture quality by far is leading driver of consumer interest in DTV, followed by audio quality, survey showed. “For consumers, the future is now,” NAB Pres. Edward Fritts said. “They know about digital television, they like it and they want it.”