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.
Boris Muchnik, ex-StorageTek, joins ColorLink as manufacturing vp… Terri Dial, recently retired Wells Fargo chmn., elected to Wink Communications board.
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.
Independent online game company NCsoft made Lineage: The Blood Pledge available to N. American gamers. Company based in Austin, Tex., said Lineage “with more than 3 million subscribers and 250,000 concurrent users… is the leading worldwide subscription-based online game.” Game, which already had been made available in Asia, is being distributed via free download at new Web site, www.lineage-us.com. CDs also can be ordered from site and mailed for shipping and handling fee. Game comes with free 30-day trial. After that, charge is $15 per month in U.S. but players also can subscribe for 4 months at $11.25 per month.
After canceling its plan to offer 6 million shares of common stock earlier this week, Activision announced Thurs. that its board had approved 3-for-2 split of outstanding common shares. Split is payable Nov. 20 to shareholders of record Nov. 6, Santa Monica, Cal., game maker said. Company said split would be accomplished via 50% stock dividend. Instead of issuing fractional shares, shareholders will receive cash payment based on average of high and low sale prices of common on record date. Once split is completed, Activision said it would have 51 million common shares outstanding. CFO William Chardavoyne said split would “increase the number of shares outstanding, thereby enhancing our liquidity.” In withdrawing registration statement for public offering of common, Activision CEO Robert Kotick blamed decision on “current market conditions” and “volatility resulting from recent events.”
Sony Thurs. posted 2nd-quarter consolidated net loss of $111 million ($1 = ?119) on weakness in its core electronics business and despite 5.7% overall revenue increase to $15.02 billion.
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.
Take-Two Interactive’s Rockstar division started shipping Grand Theft Auto 3 for PS2 in U.S. Title, developed by Take- Two’s DMA Design subsidiary, will ship in Europe Oct. 26.
Westwood Studios opened www.Be-A-Renegade.com life-style Web site featuring commentary, news, pop culture-based humor, reviews.
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.”