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.”
“Xbox Unleashed” 48-hour continuous play marathon is planned by Microsoft in L.A. and N.Y.C. Nov. 2-3. At event, gamers will be able to compete against one another in head-to-head Xbox videogame competition. Event also will enable consumers to get their first hands on Xbox console and games before system rolls out in N. America Nov. 15 at $299. Prizes will be given to winners at event. Grand prize will be Ford Explorer Sport Trac with Pioneer stereo and integrated Xbox system. Second-place winners will get Xbox console and games, along with spring break trip for 4 to Mexico. Third-place winners will get Xbox console and games plus year’s supply of food from Taco Bell and beverages from SoBe. Event kicks off at 12:01 a.m. local time at each location Nov. 2 and ends at 11:59 p.m. Nov. 3.
CEA Pres. Gary Shapiro offered to testify at now-postponed hearing on copyright protection standards in CE devices but was turned down by Senate Commerce Committee Chmn. Hollings (D-S.C.). We incorrectly reported that Shapiro declined to testify (CED Oct 17 p2).
As Bender/Helper Impact celebrates 15th anniversary, L.A.- based PR company said it was divided into 4 separate business units: Consumer Products, Digital Entertainment, Home Entertainment, Interactive Entertainment. Last division’s primary client base consists of game publishers and developers. Clients include Bethesda Softworks, Codemasters, Konami of America, Ubi Soft Entertainment, Universal Interactive.
Nintendo GameCube “should have a significant advantage in the console wars, specifically because of its $100 price advantage,” said new report, Ready to Rumble: The Video Game Console Market. It added: “To cost-conscious parents and gamers, a $199 console may prove to be more appealing than a $299 console, particularly in current market conditions.” Both PlayStation 2 from Sony and Xbox from Microsoft are priced $100 higher than GameCube.
Kopin said 3rd quarter net loss swelled to $9.2 million, reversing year-earlier $4.2 million profit, as revenue fell to $12.3 million from $23.8 million. Sharp slide in revenue was largely result of slowing sales of heterojunction bipolar transistors (HBT) that are used as power amplifiers in wireless phones, it said. HBT sales fell to $5.6 million from $17.9 million year ago, but were up from $3.8 million in 2nd quarter. Earnings also were hit by impairment charge, offset by $680,000 gain on sale of 200,000 shares of Microcell Telecommunications stock, CFO Richard Sneider said. Partly offsetting revenue decline was Kopin’s CyberDisplay microdisplay business, which reported sales gain to $6.4 million from $5.3 million year ago, $5.2 million in 2nd quarter. JVC, Matsushita and Samsung each accounted for more than 10% of Kopin’s overall revenue in replacing CRT-based camcorder viewfinders with CyberDisplays. Sanyo also recently signed agreement to build CyberDisplay into 2 wireless phones capable of displaying video. Cyberdisplays for phone applications are priced in $40-$50 range vs. $10-$12 for camcorder viewfinders, Chmn.-CEO John Fan told analysts in conference call. CyberDisplay has 20% share of camcorder viewfinder market and production is running 200,000 units per month, he said. CyberDisplay business can achieve break-even with monthly production of 300,000 units and revenue of $9 million, Sneider said. HBT business has 20% installed base in wireless phones, replacing, in some cases, silicon power amplifiers. HBTs, which have average selling price of $600, could gain sales in future with debut of 3G wireless service, which requires separate power amplifier for each of 3 frequencies -- 800, 1800 and 1900 MHz, Sneider said.
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.
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.
RadioShack (RS), taking $13.5 million charge to cover cutting of 298 jobs, said 3rd quarter net income plunged to $43.8 million from $77.1 million as sales dipped 5% to $1 billion on 4% decline in same-store sales. RS trimmed 197 jobs at corporate level in Aug., including eliminating 10 vice president posts. Downturn in revenue was largely result of 47% dive in PC sales, COO David Edmundson said. Minus PCs, RS sales rose 1% from year ago, he said. Attach rates -- sale of PC with peripheral or accessories -- “weren’t very successful,” he said. Wireless handset sales jumped 18% and wireless accessories 25%. Residuals, largely from wireless, were up 40% and parts, batteries and accessories sales 3%. On downside, service revenue, which included sales of prepaid cellular service, declined 13% and DirecTV 20%, due largely to “shortfall” among RS franchise dealers, Edmondson said.
Alan McGlade, ex-MTV, named pres.-CEO, MusicNet… Scott Mercer, ex-Dell, rejoins Western Digital as interim CFO, replacing Terry Hopp, resigned… W.S. Wen, HannStar exec. vp, advanced to gen. mgr. of new LCD panel business div… John Foster, Bender/Helper Impact dir., promoted to vp.