Single packs of Memorex DVD+RW discs will be available this month at $19.99 list, company announced Tues. Memorex already markets DVD-R and DVD-RAM blank media, and Pres. Michael Golacinski said company’s sales of those products had “far exceeded our expectations.”
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.”
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.
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.
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.
Electronics Boutique (EB) acquired “substantially all” assets of Kempten, Germany’s, Game it!, W. Chester, Pa., videogame retail chain said Tues. EB said Game it! ranked among leading Web entertainment software retailers in Germany. Terms weren’t disclosed. Commenting on acquisition, EB CEO Jeffrey Griffiths said: “Europe represents a significantly large potential market for expansion opportunities. The Game it! acquisition is a unique opportunity to accelerate our growth overseas through an existing retail distribution and fulfillment infrastructure.” He said EB intended to retain existing management of Game it! and “most of its key employees.”
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.
“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).
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.