Electronic Arts said Tues. it would cut 200-250 positions at its EA.com online division -- 1/3 of staff. Impact of job cuts on content at EA.com Web site was unclear at our deadline. EA Pres. John Riccitiello said cuts were made “in order to achieve our goal of reaching profitability in FY ‘03 as committed earlier this year.” News came as Redwood City, Cal., game maker was holding media preview of new games at Studio 54 in N.Y.C.

First shipment of DVD Star Wars: Episode I The Phantom Menace has sold through 65% at tradition retail outlets in first week following N. American release, 20th Century Fox Home Entertainment said. Studio said that made movie fastest selling DVD to date, eclipsing this year’s leader The Mummy Returns and all-time leader The Gladiator. It didn’t divulge quantities of Star Wars DVD shipped or sold.

As Blockbuster continues to increase prominence of DVD at its stores, CEO John Antioco told analysts in conference call Tues. that format could represent half of its domestic rental revenue by 2003. Antioco said DVD currently made up 20% of Blockbuster’s domestic rental revenue and should widen to 30% by year-end: “As a matter of fact, on some new titles as much as 40% of our rentals are DVD, so it’s probably not a stretch to assume that by 2002, 40% of our domestic rentals will come from DVD and we can be trending at 50% DVD, 50% VHS going into 2003. Clearly, DVD has gone mainstream.”

Apple Computer took wraps off digital audio player on Tues., joining already crowded market with device containing 5 GB hard drive with space for 1,000 songs. IPod ($399) connects to Macintosh PCs using FireWire port, has 10-hour lithium polymer battery, 20-min. antiskip protection and works with Mac OS 9 and Mac OS X operating systems. Device also automatically links to Apple’s iTunes software that allows downloading of digital audio files and burning CDs. Unit has LED backlight and LCD with 160x128 resolution that displays artist and album names and song titles. Using FireWire port, iPod can download CD in under 10 sec., 1,000 songs in less than 10 min.

Universal Electronics signed licensing and supply agreements with Recoton and DirecTV, respectively, gaining 2 new customers amid slowdown in its cable business. Recoton has licensed Universal’s infrared code database, which will be including in new line of Jensen branded remote controls that will ship in 2nd quarter, Recoton Pres. Robert Borchardt said. Universal will receive royalty based on sales of remotes.

EchoStar had record-breaking 3rd quarter and is prepared for future regardless of whether merger with DirecTV takes place, CEO Charles Ergen told investors in conference call Tues. He was tight-lipped about discussions with DirecTV parent GM and offer to purchase Hughes Electronics unit, but said company was pushing forward to close deal: “We're serious” about acquisition, but we're well-positioned as a company regardless of the outcome. If it doesn’t happen, we're still a solid financial company.” Tough economic conditions that had hampered performance of other high- tech and satellite companies didn’t affect EchoStar because of financial “discipline,” Ergen said: “This is the kind of environment I personally like best. When everything is tight, the cream rises to the top. We are going to shine” because of our policies.

International Game Developers Assn. (IGDA) opened “members profile” section at its Web site, www.igda.org/Community/Profiles/profiles.htm

Clarification: Matsushita’s proposed 50 GB dual-layer recordable disc is 1.1 mm thick, composed of 1 mm thick substrate and 0.1 mm thick cover plate. Although disc is 0.1 mm thinner than standard DVD, Matsushita engineers say they anticipate no compatibility problems with existing laser optics and drives when dual-layer 50 GB disc is commercialized.

Sega will start charging $9.95 per month for unlimited access to its SegaNet online multiplayer videogame network on Nov. 1, spokesman told us Oct 23. But company’s most successful online game -- Phantasy Star Online, which has 300,000 players -- will remain free. ISP service offered by SegaNet was scrapped this past summer and subscribers were transferred to EarthLink. New SegaNet service that will be in place Nov. 1 will offer features including game tournaments, instant messaging, member profiles. Separately, report out of Japan said Sega Corp. expected to report larger group net loss for fiscal first half ended Sept. 30 because of appraisal loss of ?23.8 billion on its securities holdings after share prices dropped. Report said Sega now expected to post group net loss of ?20 billion yen, compared with ?4.3 billion predicted earlier. But company expects to report group pretax income of ?4.5 billion instead of previously projected ?2.4 billion loss on sales of ?97 billion instead of earlier-projected ?82 billion. Report said Sega expected to report group net loss of ?15 billion for full year instead of earlier-projected profit of ?2.1 billion, and group pretax profit for year of ?10 billion on sales of ?200 billion -- improvement over previously-expected ?5.4 billion pretax profit and ?198 billion sales forecasts.

InterAct Accessories said it would be “one of a few selected vendors” that would have permanent free-standing kiosk at new flagship Toys “R” Us store scheduled to open this fall in Times Sq., N.Y.C. Accessory maker said kiosk would exclusively showcase its entire GameShark product line and would feature “state-of-the-art multimedia display” providing GameShark demonstrations. InterAct said it also would feature GameShark product line in end cap displays at over 450 Toys “R” Us locations throughout U.S. GameShark Codecenter displays, located in R-Zone section, will spotlight latest GameShark products and be updated each quarter, InterAct said.