Chrysler said it would use Bluetooth wireless technology in new telematics system that would work with user’s personal mobile phone and existing phone number. Building on Mercedes-Benz Tele Aid telematics system, new product will be available on aftermarket in first half next year and factory installed early in 2003. Unlike existing telematics systems, voice recognition communication is driven through user’s wireless phone and works inside and outside vehicle, company said. System will work with up to 5 mobile phones or customers will have option through Chrysler of AT&T Wireless services, including mobile data. Vehicle hardware will include receiver module for phone behind dashboard and embedded microphone in rearview mirror. Upon entering vehicle, mobile phone connects to system via Bluetooth. Phone audio is fed through existing speaker system, overriding radio. In operation, system requires button push to make or complete call, with all other functions voice activated. System provides multilingual (English, Spanish, French) and multivoice recognition. Chrysler said it was working with several companies to develop system including: (1) AT&T Wireless as development partner and preferred wireless carrier for system. (2) Johnson Controls to provide telematics system integration, design and engineering and to supply hands-free electronics module. (3) Gentex to design self-dimming rearview mirror with microphone and driver communication interface for system. (4) IBM to supply Embedded ViaVoice speech software to enable users to dial phone numbers or access audio address book by speaking preprogrammed commands. (5) Intel to supply Bluetooth wireless technology, audio processing for voice recognition and speech-to-text, and vehicle interface electronics.
Despite transition to new game platforms, economic slowdown and various other obstacles in past quarter, Acclaim, Midway Games and 3DO all said Wed., after our deadline, they were optimistic about results entering holiday selling season. Boost in interest among consumers, they said, will be provided by rollouts of Microsoft Xbox and Nintendo GameCube videogame consoles starting on Nov. 15 and 18, respectively, as PlayStation 2 (PS2) installed base continues to rise.
Boris Muchnik, ex-StorageTek, joins ColorLink as manufacturing vp… Terri Dial, recently retired Wells Fargo chmn., elected to Wink Communications board.
Earthlink will formally float $5 million tender offer next week for Cidco, which has struggled as market for Internet appliances has dried up. All-cash offer of 36? per share is contingent on tendering of 51% of Cidco common by Feb. 28. ISP Earthlink will acquire 119,000 subscribers who paid $9.95 monthly to access e-mail using Cidco’s MailStation and Mivo ($99) products. Number of Cidco subscribers was “far short” of 200,000 needed for positive cash flow, Cidco said in SEC filing. As result, it posted $7.5 million 3rd quarter loss on flat revenue at $5.6 million. Earnings downturn was result of $3 million write-down of inventory. Cidco had been reviewing “strategic alternatives” including sale of company since March, and Sept. 11 attacks put further crimp in business plan. Retailers reduced co-op funding with Cidco on ad circulars and as result Cidco participated in less than 30% of ad circulars that were planned and budgeted for 3rd quarter, it said. Reduced ads lowered gross subscriber acquisitions in 3rd quarter by 60%, it said. Cidco, which got its start marketing telephone answering machines, sells MailStation and Mivo through 7,500 retail stores. Meanwhile, Earthlink reported 3rd quarter loss deepened to $77 million from $72 million year ago as revenue rose 28% to $319 million. Earthlink, which increased price for analog dial-up Internet service to $21.95 from $19.95, reported that number of analog subscribers declined 4% to 4.2 million while digital subscriber line (DSL) customers increased 17% from 2nd quarter to 406,000.
Top-renting videogame for week ended Oct. 21 was Spy Hunter for PS2, which took in weekly earnings of $280,000 for total of $920,000 since its debut Sept. 25. Game was followed by Devil May Cry for PS2 ($280,000 in first week on sale), Tony Hawk’s Pro Skater 2 for Nintendo 64 ($270,000, $2.47 million to date), Madden NFL 2002 for PS2 ($240,000, $1.82 million to date), Silent Hill 2 for PS2 ($190,000, $700,000 to date).
Take-Two Interactive’s Rockstar division started shipping Grand Theft Auto 3 for PS2 in U.S. Title, developed by Take- Two’s DMA Design subsidiary, will ship in Europe Oct. 26.
Tony Hawk Foundation said game maker Activision donated $50,000 to it. Funding will be used to assist foundation in its efforts to finance and promote public skateboarding in parks nationwide, it said. Foundation is nonprofit endowment created by pro skater Hawk. With donation, Activision became foundation’s first Gold Level sponsor. Tony Hawk’s Pro Skater is one of Activision’s top-selling game franchises.
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.