Supreme Court on Mon. rejected Indianapolis appeal of lower court ruling on city’s law against violent videogames that was adopted in July 2000. Seventh U.S. Appeals Court, Chicago, ruled on case -- Kendrick v. American Amusement Machine Assn. -- in March 2001, saying Indianapolis law requiring parent’s consent for child to play violent videogames in arcades or other commercial locations violated First Amendment. Judge Richard Posner in decision held that studies so far hadn’t provided “evidence that violent videogames are any more harmful to the consumer or to the public safety than violent movies or other violent, but passive, entertainments.” He said “violent videogames played in public spaces are a tiny fraction of the media violence to which modern American children are exposed” -- and violence in movies and on TV seemed to be even more graphic, especially in light of games’ “cartoon characters” that “no one would mistake” for images of real people. Indianapolis later appealed to Supreme Court, asking it to decide on govt.’s power to limit chidren’s access to violent videogames. In turning down appeal, Supreme Court offered no comment. Under original law, Indianapolis could have fined arcade owners $200 per day for each violation.
YP-30S Yepp joined widening line of digital audio players from Samsung Electronics America. New wearable device at $169.99 features download speed of 7 Mbps, which Samsung said made it “fastest unit on the market.” Device comes bundled with Rio Port Digital Music software and 64 MB of embedded memory, which Samsung said allowed it to download up to 64 min. of high-quality (128 kbps) music in less than 10 sec. Unit can be worn around arm or neck via included straps or attached to clothing with included belt clip. YP-30S also is smallest digital audio player from company to date, measuring 1.7” (W) x 2.5” (H) x .67” (D). Retailers carrying device include Best Buy, CompUSA, Musicland.
Nam Tai Electronics, blaming worldwide economic slowdown, said 3rd quarter net income slid 12% to $3.7 million from $4.2 million year earlier, despite 4% rise in sales to $59.6 million from $57.2 million. Nam Tai, which took $5.5 million charge in 2nd quarter for write-off of assets and provisions for slow- moving raw materials, ended quarter with $40.1 million cash. It also has invested $15 million in designing and building new STN LCD production line in China that will mainly produce panels for mobile phones marketed under own and Vtech brands, company said.
Word of mouth will drive telematics adoption, said Ebrain Market research, div. of CEA. While only 3% U.S. households own telematics device, almost 90% of auto owners are aware of technology, report said. Of those aware of telematics devices, 14% have used one, most on autos other than own including rentals. Reaction is “overwhelmingly positive” and 83% found telematics product “very or somewhat useful,” report said: “Key to increasing sales may be to get consumers to try one at various public events.” Consumer interest is driven by increased safety features including ability to send distress signals, monitor auto maintenance and traffic information, ability to obtain maps, it said. In separate report, Allied Business Intelligence predicted worldwide market for telematics in personal vehicles will reach $13 billion by 2006 from $3 billion today. Recurring annual service revenue by auto makers and other service providers will account for more than $4 billion of $13 billion total, it said.
InFocus and OEM partners Toshiba and Runco were expected to release specs today for new line of retail-oriented front projectors based on Texas Instruments’ Digital Light Processing (DLP) technology. DLP-based projectors are expected to be delivered in Nov. at $4,999. Projectors, which will have single 0.8” DLP chip, will have 848x480 and 800x600 resolution for widescreen and conventional formats, 400:1 contrast and 1,000 lumens. InFocus, which also supplies light engine, is expected to build projectors at Ore. factory. It primarily will market own brand to custom installers, while Toshiba offers product to larger retailers. Toshiba is said to have discussions with Best Buy in recent weeks about carrying product, but no deal has been finalized. Best Buy officials weren’t available for comment. Other manufacturers have unveiled new front projectors using TI’s 2nd generation chip, but at higher prices. Sim2 Seleco USA recently showed model that will retail for $14,999, price drive largely by sealed box design, glass optics and inclusion of Sage’s Faroudja deinterlacing technology.
NPD Group started new toy and videogame market information service, NPDFunworld, Mon. New Web-based service (www.npdfunworld.com) enables on-demand access to marketing information by Port Washington, N.Y., company. NPD said site was “customizable” and “available 24 hours a day, 7 days a week.” Features include “ClientCenter,” electronic library of information including access to full NPD reports and presentations. Site also includes 3rd-party content, feeds, links. NPDFunworld is 3rd marketing information portal started by company, following NPDFashionworld and NPDFoodworld. Company said it also would open NPDTechworld portal providing marketing information for technology industry, but didn’t provide specific date.
There’s 50-50 chance DirecTV-EchoStar merger will be blocked by antitrust regulators, said former Justice Dept. Antitrust Div. Chief Don Baker. Baker, who worked as staffer 1966-1975, was appointed by President Ford in 1976, and now is partner in Baker & Miller antitrust law firm. “Clearly there are a couple of different issues,” Baker told us. He and other attorneys said EchoStar faced uphill regulatory battle, but they said hiring antitrust lawyer David Boies should help. Former DoJ telecom legal expert Don Russell now is top EchoStar lawyer.
At our deadline there was no explanation or reaction to astonishing $500 price cut that headlined debut of Panasonic DVD- RAM recorder at Best Buy, N.Y. area chain The Wiz and other retailers last weekend. New DMR-E20 deck hit street at $999.99 - - steep cut from $1,495.99 MSRP Panasonic announced at June preview. Surprise change came just as rival format Philips DVD+RW and Pioneer DVD-RW decks wended way to market at $2,000 and $2,800 MSRP, respectively (Pioneer has said recorder should street at $2,500). Explanation for pricing change hadn’t been received from Panasonic, Philips or Pioneer by our deadline. Blank discs for DMR-E20 were advertised as $14.99 for write-once DVD-R media and $34.99 for 3-pack of rewritable DVD-RAM blanks -- each in line with what Panasonic forecast this summer.
There was no shortage of videogame promotions in Sun. retail circulars. Most intriguing was CompUSA spotlighting its new “game fixx” online Web site, www.gamefixx.com. Site already is taking Xbox preorders without need for deposit by customer. Like its online competitors, site is selling console only as part of pricey bundle. In this case, consumer must buy console with 2 first party games, one 3rd party game, 2 accessories. Minimum cost of any bundle that can be selected is $479.94. Site said Mon. “we will be shipping on a weekly basis” once system starts rolling out Nov. 15 in N. America “and will make every effort to ensure delivery prior to Christmas.” Company also said it planned to start taking preorders for GameCube but didn’t say when. Nintendo game system is scheduled to ship in N. America Nov. 18. Meanwhile, Best Buy announced $5 discount on all Game Boy Advance (GBA) software titles in stock. Chain, which sells GBA titles for $29.99 and $39.99, also promoted online preorder campaign for PlayStation 2 (PS2) videogame Crash Bandicoot: The Wrath of Cortex at BestBuy.com; game is to ship Thurs. N.Y. metro area CE chain The Wiz promoted 10% discount offer on any 2nd software title when consumer buys either PS One or PS2 and one game. Toys “R” Us is offering free The Mummy Returns DVD movie to consumers who buy PS2 game of same name at $59.99.