U.S. computer and video game industry raised $1.5 million Tues. night at annual “Nite to Unite -- For Kids” charity dinner. Money was raised for various charities. Interactive Digital Software Assn. (IDSA) said it was donating additional $500,000 to organizations working to aid victims of last month’s terrorist attacks. At event, late Sega Corp. Pres.-Chmn. Isao Okawa was posthumous recipient of IDSA’s Champion Award and Sega of America donated $50,000 in his honor to IDSA Foundation. Microsoft Chmn. Bill Gates also announced Bill and Melinda Gates Foundation would contribute $200,000 to IDSA Foundation in memory of Okawa. Co- chairs of event were Capcom Entertainment Pres.-CEO Bill Gardner, Microsoft Chief Xbox OFficer-Senior Vp Robbie Bach, Nintendo of America Exec. Vp Peter Main, Sega of America Pres.-COO Peter Moore.
DTS Entertainment set Nov. 20 street date on DVD-Audio release of Queen’s A Night at the Opera ($24.97). Disc will feature 5.1-surround remix of entire album and original 1975 music video of Bohemian Rhapsody released in 5.1 multichannel audio for first time. Remix was created by Elliot Scheiner and album’s original producer Roy Baker.
As EchoStar reportedly lined up $5.5 billion in financing for its bid to buy Hughes Electronics, Hughes reported 3rd quarter net loss widened to $227.2 million from $93.8 million year earlier. Loss includes $65 million charge on 2% work force reduction. EchoStar executives declined comment at our deadline on financing reports. Hughes also took $212 million noncash charge for revaluation of its SkyPerfecTV investment in Japan. Overall revenues rose to $2.1 billion from $1.6 billion year ago.
Electronics Boutique (EB) revised its earnings estimate for 3rd quarter ending Nov. 3. Computer and videogame chain based in W. Chester, Pa., said although it still expected to report year- over-year improvement in income, result would wind up being at low end of previously announced estimate of 11-14? per share. Company posted 6? per share profit for same quarter year ago. EB said it expected to report 3rd quarter sales would fall below estimates but with better-than-expected gross margins due to enhanced operating efficiencies and benefits from expansion of its preowned videogame business. Chain said comparable-store sales would “be in the negative single-digit range” after “delays in consumer purchases attributable, in part, to the events on and after September 11.” EB Pres.-CEO Jeffrey Griffiths said mall traffic was “not at last year’s level [but] appears to be improving and we remain optimistic that the last few weeks of October, a traditionally robust sales period, will be strong.” But he said it was “difficult to gauge the continued impact of recent events on consumer spending.” EB, he said, still expected “videogame market will grow more than 25% annually over the next few years.” Griffiths said “a number of software title introductions were delayed to late in the quarter or have been shifted by publishers from the 3rd to the 4th quarter.” He said that would coincide with U.S. rollouts of GameCube (Nov. 18) and Xbox (Nov. 15). Griffiths also said sales of PlayStation 2 console had “been particularly strong in Australia and Europe since Sony’s price reduction in late September.” Meanwhile, shares in U.K. Electronics Boutique dropped Wed. after U.S. EB sold its 18% stake (66.4 million shares).
Theatrical posters from 1977’s Star Wars: A New Hope will be available for $19.99 at Suncoast and Media Play video chains to coincide with this week’s DVD debut of recent Star Wars: The Phantom Menace.
In long-awaited comment from CD co-licensor Philips Wed., company told us music discs that impose playback restrictions in interest of copy prevention can’t be called Compact Discs without violating its trademark.
Consumer electronics industry is lightly regulated and would prefer to stay that way, although industry groups recognize some regulation is helpful. Regulatory mandates could prove greater challenge than that faced by heavily-regulated industries such as telecom, industry officials said. Phone company faces regulation from states and federal agencies such as FCC, but because of global reach of consumer electronics, industry faces regulation from agencies worldwide, EIA Senior Vp-Govt. Relations Brian Kelly said. Consumer electronics is becoming more regulated and “biggest piece is going to be the environment… as environmentalists become more active on telling manufacturers how to build machines lead-free and mercury-free,” he said. Kelly predicted World Trade Organization (WTO) eventually would take lead in environmental mandates due to pressure from European Commission, Japanese govt. and, to lesser degree, U.S. govt.
InFocus reported 3rd quarter net income shrank to $2.7 million from $16.7 million year as projector maker took $6.1 million charge to cover layoffs in U.S. and Norway and merger- related expenses. Revenue slid 3% to $180.2 million.
NovaLogic is expanding its Comanche game franchise) to Xbox console. Calabasas, Cal., game maker said Xbox helicopter title would ship in late 2002. Comanche will be NovaLogic’s first title for Xbox, it said.
Activision acquired worldwide publishing rights excluding Japan for videogame Wreckless. Santa Monica game maker called title “first mission-based driving game for the Xbox.” Game, developed by Bunkasha Publishing, will ship in first quarter 2002, coinciding with European rollout of Microsoft’s console. Rating for game had yet to be determined as of Wed. Xbox Gen. Mgr. J. Allard said: “As one of the premier titles for Xbox, we are putting full marketing muscle behind Wreckless to build consumer awareness for what we believe to be one of this winter’s most anticipated releases.”