Pace Micro Technology has postponed delivery of digital set- top box (STB) with on-demand games feature to 2003 as it works to develop device compatible with multiple platforms, Mktg. Dir. David Novak said. “For it to be successful and widely deployed, it has to have a broad selection” of videogame platforms, he said.

Microsoft displayed unaccustomed candor with news media at Thurs. news conference in London to introduce Windows XP operating system. Event at London’s Royal Festival Hall was far cry from Microsoft’s previous Windows policy of beginning with loud party but taking no questions. Instead, as in prelaunch briefings, executives went out of way to be responsive. Despite that, new operating system already had shown clay feet -- such as incompatibility with Disney’s recently released Snow White and the Seven Dwarfs DVD.

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.”

Westwood Studios opened www.Be-A-Renegade.com life-style Web site featuring commentary, news, pop culture-based humor, reviews.

Tony Hawk Foundation said game maker Activision donated $50,000 to it. Funding will be used to assist foundation in its efforts to finance and promote public skateboarding in parks nationwide, it said. Foundation is nonprofit endowment created by pro skater Hawk. With donation, Activision became foundation’s first Gold Level sponsor. Tony Hawk’s Pro Skater is one of Activision’s top-selling game franchises.

“DTVLink” is “baseline” term and logo approved by CEA Video Div. board to be applied to IEEE-1394 digital video products capable of interfacing with other gear. Logo requires that product use 1394 serial connection, conform to EIA-840 technical standard, and use Digital Transmission Content Protection. CEA said “matching logos” program would help retail salespeople determine product compatibility and ease purchasing decisions for consumers.

Earthlink will formally float $5 million tender offer next week for Cidco, which has struggled as market for Internet appliances has dried up. All-cash offer of 36? per share is contingent on tendering of 51% of Cidco common by Feb. 28. ISP Earthlink will acquire 119,000 subscribers who paid $9.95 monthly to access e-mail using Cidco’s MailStation and Mivo ($99) products. Number of Cidco subscribers was “far short” of 200,000 needed for positive cash flow, Cidco said in SEC filing. As result, it posted $7.5 million 3rd quarter loss on flat revenue at $5.6 million. Earnings downturn was result of $3 million write-down of inventory. Cidco had been reviewing “strategic alternatives” including sale of company since March, and Sept. 11 attacks put further crimp in business plan. Retailers reduced co-op funding with Cidco on ad circulars and as result Cidco participated in less than 30% of ad circulars that were planned and budgeted for 3rd quarter, it said. Reduced ads lowered gross subscriber acquisitions in 3rd quarter by 60%, it said. Cidco, which got its start marketing telephone answering machines, sells MailStation and Mivo through 7,500 retail stores. Meanwhile, Earthlink reported 3rd quarter loss deepened to $77 million from $72 million year ago as revenue rose 28% to $319 million. Earthlink, which increased price for analog dial-up Internet service to $21.95 from $19.95, reported that number of analog subscribers declined 4% to 4.2 million while digital subscriber line (DSL) customers increased 17% from 2nd quarter to 406,000.

Movie Gallery (MG) said 3rd quarter net income rose to $1.2 million from $561,000 year ago on strength of strong DVD sales. Revenue increased to $86.4 million from $75.3 million on 5.6% gain in same-store sales. DVD titles accounted for 12% of overall revenue in quarter and were forecast to reach 20% by year-end, company said. Rental revenue jumped to $74.3 million from $64.5 million and product sales to $12.1 million from $10.8 million despite MG’s reducing number of new sellthrough titles it carries as result of lower margins. Sellthrough titles carried 20% gross margin in 3rd quarter, while rentals improved to 70.3% from 68.9%. As movie studios and video rental chains negotiate revenue-sharing agreements for DVD, margins “will stay similar to where they are now,” CEO Joseph Malugen said. MGM has reached DVD agreements with Blockbuster and Hollywood Entertainment, but has yet to do so with MG. Meanwhile, MG is awaiting final audits of Video Update (VU) before completing acquisition of 280-315 stores as part of proposed bankruptcy reorganization plan scheduled for hearing Oct. 31. MG has invested $15 million in chain since paying $10 million in May for 92% of VU’s $121 senior secured bank debt. Investment provided VU with working capital and ability to update computer system, Malugen said. Total investment is forecast at $30-$32 million including $20-$22 million cash and $10-$12 million for accrued liabilities and payables, CFO Stephen Roy said. Audit of VU has been slowed by investigation started by unsecured creditors committee into alleged fraud and embezzling of funds by former management. VU co-founder Daniel Potter, COO Daniel Howard and Exec. Vp Richard Bedard resigned in June. U.S. Bankruptcy Court Judge Judith Wizmer, Camden, N.J., amended VU’s reorganization plan in Sept. to include $125,000 trust for litigation stemming from claims against former management.

Roxio said 2nd quarter loss narrowed to $1 million from $1.8 million year ago as revenue increased to $30.5 million from $29.4 million. Amortization of intangible assets shrank to $1.4 million from $3.8 million while charge for stock-based compensation surged to $1.5 million from $648,000. Roxio’s Easy CD Creator burning software for Windows PCs and Toast for Apple’s Macintosh accounted for 79% and 14% of revenue, respectively. Go Back 3 system recovery software represented 7% of sales, company said. Easy CD Creator 5.1 is being packaged with new Windows XP operating system, which made formal debut Thurs. Roxio also has released DVD authoring software in Europe and U.S. and plans to add recording version here by early 2002. In effort to boost sales of Go Back, Roxio signed agreement with Symantec to package it with Norton SystemWorks 2002, deal expected to generate revenue of $3-$5 million in next 18 months. Meanwhile, Roxio said ad campaign, begun Aug. 27, has achieved 17% awareness among target 18-34-year-old audience with goal of reaching 33% by 2002. It remained bullish on CD burning prospects despite recording industry’s efforts to add copy protection to some releases. Confidence stemmed from recording industry’s failure thus far to establish single copy protection standard. Indeed, while Macrovision’s SafeAudio copy prevention system is playback- compatible with PCs, Sony’s key2audio is not. “There has not showed yet the holy grail of copy protection,” it said.

Despite transition to new game platforms, economic slowdown and various other obstacles in past quarter, Acclaim, Midway Games and 3DO all said Wed., after our deadline, they were optimistic about results entering holiday selling season. Boost in interest among consumers, they said, will be provided by rollouts of Microsoft Xbox and Nintendo GameCube videogame consoles starting on Nov. 15 and 18, respectively, as PlayStation 2 (PS2) installed base continues to rise.