Activision will ship Tony Hawk’s Pro Skater 3 for PlayStation at $39.99 and PlayStation 2 (PS2) at $49.99 Oct. 30. Title, developed by Neversoft Entertainment, will be first online game for PS2, Activision said. PS2 version of title is rated T (Teen), while PlayStation SKU is rated E (Everyone).
David Nagel, who was lured from AT&T to head Palm’s new operating system (OS) subsidiary, will receive $620,000 starting salary and $200,000 hiring bonus, said letter in recent SEC filing. Palm in July announced plan to separate OS business as subsidiary and letter outlined steps being taken to accomplish that, including possible spinoff. “The separation process may include legal separation, third party investments by strategic partners, sub-IPO and spinoff,” Palm said. Nagel also will get restricted stock grant in Palm shares along with options to buy 6.5% of shares in Palm OS business once it has made subsidiary late this year. Grant of 50,000 shares will vest in 2 years, but will “accelerate” after first release of Palm OS based on StrongArm processor, Plam said. ARM-based OS is expected to be released in 2002 and company has said project remains on track.
David Margolese, who resigned last week as CEO of Sirius Satellite Radio (CED Oct 17 p1), qualifies for $5-million severance payment, company said Fri. in SEC filing. Margolese will receive $200,000 in annual fee for serving as Sirius non- executive chmn., and his stock options have been extended through April 16, 2007, filing said. Margolese has 2-year noncompete clause in employment agreement, Sirius said.
Electronic Arts became pilot customer of Kontiki, company that offers secure network for delivering digital media files over Web. Kontiki said its network allowed its customers to deliver entertainment and other TV-quality content direct to users’ PCs. Other pilot customers of Kontiki include Amazon.com, LivePlanet, MP3.com, Palm, Sony Pictures Entertainment, TiVo, Verisign. Companies said Kontiki services might dramatically lower their cost of sales, marketing, training and travel, while increasing revenue and customer royalty. Preview of pilot network is available by downloading Kontiki at www.kontiki.com. Following pilot period, first production release of Kontiki Delivery Network is expected later in 4th quarter.
Corning posted 3rd quarter net loss amid restructuring and slumping revenue that stretched across entire company from telecommunications to CRTs. Glass maker, which increasingly has relied on optical fiber and components related to telecom to drive its business, said it had net loss of $220 million, down from year-earlier net income of $254 million. Revenue plunged 21% to $1.51 billion. It said latest results involved $339 million pretax charge that included $236 million for writing down fixed assets in closing plants related to telecom business in North Wales, U.K., and Henrietta, N.Y. Charge also covered layoffs that are expected to affect 12,000 employees by end of year. Restructuring will yield $400 million in annualized savings, Corning said.
First plausible evidence is emerging of impending price breaks on DLP-based rear-projection TVs as LG Electronics, Optoma and Vestel prepare models for 2002 introduction, possibly at tags as low as $3,000-$5,000.
Matsushita will start selling “Q” DVD player -- SL-GC10 -- that can play games for Nintendo’s GameCube system Dec. 14 in Japan at ?39,800 ($329). In addition to GameCube and DVD-Video discs, Q will be compatible with audio CD, CD-RW, DVD-R, Video CD formats. CE manufacturer said that while player also was compatible with DVD-R discs recorded with its Panasonic DMR-E20 DVD-Video recorder, “other DVD-R discs may not be able to play back depending on the DVD-R disc used and the recording conditions.” Matsushita said it intends to produce 15,000 units of new DVD player monthly. Player features LCD display on front panel. Matsushita said it had “various sound and visual effect functions for enhanced enjoyment of movies and games software.” But U.S. Matsushita spokesman told us Fri.: “There are no plans -- currently anyway -- for [a] U.S. launch. This is a Japan market product only.” Matsushita supplies disc drives and discs for GameCube console. Companies first announced they were collaborating on GameCube console in May 1999, when console was code-named Dolphin. Later, at Spaceworld show in Tokyo in Aug. 2000, companies revealed GameCube would incorporate drive that played 8 cm proprietary 1.5 optical disc from Matsushita. GameCube and Q represent reentry into videogame arena for Matsushita, which was one of original hardware licensees for 3DO’s ill-fated Multiplayer. Matsushita spent $100 million in 1995 to buy 3DO’s M2 gaming technology before eventually deciding against bringing product to market.
Cyberian Outpost said 2nd quarter loss widened to $7.3 million from $6.7 million year ago in what was likely be its last quarter as publicly traded company. Net sales declined to $27.5 million from $45.2 million year ago and gross margin to $5.4 million from $10.7 million. In quarter, Cyberian transferred $600,000 to Tweeter as part of joint venture that’s being discontinued in wake of expected sale of online retailer to Fry’s Electronics. Tweeter also received $84,000 as share of net income of Tweeter@Outpost.com. Cyberian ended quarter with $551,000 in cash and cash equivalents, but since has received $13 million loan from Fry’s pending completion of acquisition. Cyberian also reversed $777,000 of restructuring charges incurred in first quarter as it negotiated termination of lease for 17,000-sq.-ft. facility in Bethel, Conn. Cyberian paid Berkshire Industrial Corp. $100,000 in Sept. and Oct. to cover amount remaining under lease. Cyberian ended quarter with 1.5 million customers. Shareholders meeting to vote on proposed sale to Fry’s is scheduled for Nov. 8 in Danbury, Conn.
Latest DVD-Audio supporter in U.S. is EMI Music, which will issue first 3 pop titles in Dec. Label already has shipped 9 titles in Europe, all classical. Like those, pop titles for U.S. are remastered for surround sound from original analog multitrack recordings for stereo, EMI spokeswoman told us Fri. Titles are Al Green -- Greatest Hits, Leon Russell -- Retrospective and Dave Koz -- The Dance. Spokeswoman said titles were mixed and mastered by Capitol Studios, authored by Henninger and would be replicated by Panasonic Disc Services Corp. That company’s parent, Matsushita Electric, is providing other support that industry sources characterized as subsidy to EMI for releasing DVD-Audio titles. EMI wouldn’t comment on nature of Matsushita’s support. Matsushita spokesman gave us following statement but declined further comment: “Matsushita Electric is offering the music industry technical support such as authoring services, marketing support such as hardware/software joint promotions, and also promotion of DVD-Audio in general.”