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.”
Industry shipped 75.9 million DVD movies and music video titles in 3rd quarter, 77.8% rise from same 2000 quarter, said survey by Ernst & Young compiled for DVD Entertainment Group. Survey said 226.8 million DVD software units had shipped this year, accounting for more than half of total since format was introduced in March 1997. Group forecast 4th-quarter DVD software unit shipments would top 170 million, which would increase 2001’s 12-month total more than 400 million.
Maxtor, taking $70 million charge, said 3rd quarter loss widened to $165.7 million from $13.9 million year ago as sales rose to $1.04 billion from $619.3 million. Sales included revenue from recently acquired MMC Technology and Quantum’s Hard Disk Drive (HDD) Group. Purchases of MMC and Quantum HDD resulted in nonrecurring $63.3 million charge for amortization of goodwill. Maxtor, which with acquisition of Quantum HDD became major drive supplier to personal video recorder (PVR) makers, said its blended average selling price in 3rd quarter was $82 and that it retained 35% share of market. Dell accounted for 10% of revenue. Maxtor also introduced its first 40 GB per platter drive and planned to have technology in more than 90% of products in 4th quarter. In 3rd quarter, Maxtor reduced inventory to $236 million from $261 million. It shipped 12.5 million desktop and SCSI drives in 3rd quarter and forecast shipments of 13-13.5 million in 4th quarter. Gross profit rose to $81 million from $62.9 million, but long-term debt jumped to $253.4 million from $92.2 million in Dec. due largely to acquisitions of MMC and Quantum HDD. While Maxtor’s core business remains desktop PCs, CEO Michael Cannon company remained “committed to make the investment to grow the high-end drive” and PVR businesses.
Wireless entertainment provider YourMobile and game developer NuvoStudios are starting games network for mobile phones in U.S. As part of deal, NuvoStudios will make its games including Brain Check and Nuvo Blaster available to mobile phone users via YorMobile network of wireless carrier partners. In return, YourMobile will make its messaging services, phone graphics and ringtones available to NuvoStudios for redistribution to its corporate customers.
World market for microdisplay components is expected to grow 19% annually to $1.9 billion in 2007 from $668 million in 2001, said 2nd annual Microdisplays 2002 report published by Stanford Resources. Unit shipments of microdisplays are expected to reach 44 million in 2007, with “near-eye” applications such as camcorders and viewfinders accounting for 72% of total, report said. In dollar terms, projection TV applications are expected to account for 74% of 2007 volume, report said. It said LCDs would continue to dominate other microdisplay technologies in market-share terms, but their prevalence would fall to 59% of units and 52% of value by 2007 (from 89% and 76%, respectively, in 2001) at expense of micro-electromechanical systems (MEMS) and liquid-crystal-on-silicon (LCOS) technologies.
Kodak will cut additional 3,500-4,000 jobs this quarter worldwide as part of continuing cost-reduction effort, company said Wed. as it reported decreased sales and profit for 3rd quarter. Company said that by year-end it would “have completed or initiated cost actions that will result in total employment reduction in the range of 6,500 to 7,500.” Kodak said revenue dropped 8% to $3.3 billion from $3.6 billion same quarter year ago as profit fell to $96 million (33? per share) from $418 million ($1.36). CEO Daniel Carp blamed weakened sales on “economic downturn [that] intensified,” adding “all signs suggest the weakness will continue into next year.” But he said: “I am pleased that in these challenging times, Kodak generated strong cash flow by reducing inventories and restraining capital expenditures. This allowed us to pare debt and positions Kodak to benefit once the economic rebound begins.” Imaging sector has been hit hard by economic slowdown. Earlier this month, competitor Polaroid filed for Chapter 11 bankruptcy protection as it attempted to restructure $950 million in debt.
Enix America is backing release of PlayStation title Dragon Warrior VII Nov. 1 with million-dollar marketing campaign that will include extensive print ads, co-op marketing programs with videogame retailers, online promotions and contests, PR campaign to mainstream media. Enix Pres. Paul Handelman said campaign “represents our most aggressive push to date for a single product, as it targets not only the dedicated videogame audience, but also strategic vertical markets as well.”
Infinite Ventures will ship what it’s billing as “the first interactive live-action horror game on DVD-Video” in Nov. Game - - Dracula Unleashed -- will be available online at www.draculaunleashed.com. Purcellville, Va.-based independent production company said it was “in discussions with a number of companies about worldwide retail distribution.” Company said it acquired rights to Dracula Unleashed from Viacom in 1997, along with rights to Sherlock Holmes, Consulting Detective. Infinite said titles, originally developed by ICOM Simulations, were released on CD-ROM in early 1990s. Digitally remastered version of Holmes title was released on DVD-Video in 1999. Infinite Pres. Eugene Evans said DVD owners “have come to expect depth through bonus content” and “we're taking that expectation to unmatched levels by creating a fully interactive mystery game” that consumers would use more often than typical DVD-Video movie.
Standout titles at Electronic Arts (EA) game showcase in N.Y.C. this week included Need for Speed: Hot Pursuit 2 for PS2. EA spokesman told us title, currently in pre-alpha stage of development cycle, was scheduled to ship next spring. He said Need for Speed was key franchise from company’s EA Games division and it spent time evaluating capabilities of PS2 before developing title for system. Objective, he said, was to gain “photo realism” with cars featured in game. Title features more than 20 licensed vehicles from car makers including Ferrari, Lamborghini and Porsche rendered with more detailed graphics than had been possible in past. Cars in game, he said, are about 60% complete at this point. Other titles at game showcase included Cel Damage, debut title for Xbox next month that will ship in mid-Dec. for GameCube. Also spotlighted were Command & Conquer Renegade for PC (Feb. 12), Harry Potter and the Sorcerer’s Stone for Game Boy Advance/Game Boy Color/PC/ PlayStation (Nov. 16, day and date with feature film of same name), James Bond 007 in Agent Under Fire for PS2 (Nov. 17), Motor City Online (Oct. 30), NBA Live 2002 for PS2 (Oct. 30) and Xbox (Dec. 4), Knockout Kings 2002 for PS2/Xbox, Sid Meier’s Sim Golf for PC (late Jan.-early Feb.), The Simpsons Road Rage for GameCube (Dec.), PS2 (Nov. 20) and Xbox (Nov. 13), The Sims Hot Date for PC (Nov. 13), SSX Tricky for GameCube (Dec. 4), PS2 (Nov. 13) and Xbox (Dec. 18), Tiger Woods PGA Tour 2002 for PC/PS2 (mid-Feb.).