Capcom started shipping Devil May Cry, exclusive for PlayStation 2 (PS2) that company described as “gothic action” game. M-rated (Mature) game is being backed by multimillion- dollar marketing campaign including national TV ads and features in various PS2 promotions such as demo discs. Devil May Cry was designed by Shinji Mikami, creator of Resident Evil.

Boston Acoustics 2nd-quarter profit fell 67% to $736,255 (15? per share) on 41% sales decline to $20.54 million from $38.58 million. Sales in OEM/multimedia sector were especially hard hit, falling 63%, although core audio and home theater revenue also slid significant 14%. CEO Andrew Kotsatos said company managed to remain profitable in quarter despite sharply lower sales by improving gross margin, boosting operating efficiencies and realizing benefits of cost-tightening steps started last Jan.

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.

James Warren, ex-Panasonic, joins Samsung Professional Products Group as systems application engineer… David Novak, mktg. dir., Pace Micro Technology Americas, named featured panelist at Kagan VoD Summit Oct. 24 in N.Y.C… Cecil van Alsburg to retire Oct. 24 as chmn., Applied Films Corp., succeeded by Richard Beck… John Sculley, senior partner at Signature21 and onetime Apple, joins nextSource advisory board.

LodgeNet Entertainment said revenue increased to $57.7 million in 3rd quarter ended Sept. 30 from $52.9 million same quarter year ago. But Sioux Falls, S.D., interactive service provider to lodging industry said its loss deepened to $4.7 million (-38? per share) from $4.1 million (-34?) year earlier. LodgeNet CEO-Pres. Scott Petersen said: “Despite the tragic events of Sept. 11 and the subsequent impact on the overall travel industry, we posted our 32nd consecutive record quarter for revenue and cash flow as we continued to solidly execute on our long-term strategic growth plan.” He said that while terrorist attacks were causing company “to moderate our capital expenditure plans to some degree, we remain on track to serve approximately 810,000 guest rooms with interactive television services and have our new digital platform in more than 100,000 rooms by the end of 2001.” Company’s services include Nintendo videogames on demand.

Microsoft declined to say how many Xbox consoles would actually ship on first day of videogame system’s European rollout in spring. Company said Xbox would ship March 14 at 479 euros (1 euro = 90 cents) in 16 major European markets. Details were announced by company at X01 show in Cannes, France, Wed. after our deadline. Microsoft did say, however, that through end of June, it planned to ship 1.5 million Xbox hardware units in Europe. Shipments there will include weekly replenishment from Xbox manufacturing facility in Hungary, it said. Majority of Xbox games would be priced at 69 euros but company didn’t say how many titles would ship at European rollout. Microsoft spotlighted 40 playable games at X01 while other games were announced for first time or shown on video. New games announced included Xbox exclusive BC from Lionhead Studios division Intrepid Games. Lionhead also demonstrated role-playing game Project Ego for first time. Both games are being published by Microsoft Games. Microsoft also announced more new first party titles, including Brute Force and Rallisport Challenge. Games were announced and/or demonstrated by Activision, Eidos, Electronic Arts, Infogrames, Sega, Tecmo, THQ, Ubi Soft. X01 was held at Maison Bulles mansion designed almost 30 years ago by Pierre Cardin. Xbox is scheduled to ship in N. America Nov. 15 and in Japan Feb. 22. As in Europe, it remained unclear at our deadline how many consoles would ship in N. America on Day One. Nintendo said its GameCube, to be available in N. America Nov. 18, would ship in Europe early next year but has yet to provide ship date.

Kimball International said first quarter net income plunged to $4.8 million from $10.8 million year ago as sales slid to $285.7 million from $320.8 million. Lower profit came as sales of Kimball’s furniture and cabinets business, including rear- projection TVs, and electronic contract assemblies dropped. Furniture revenue fell to $193.5 million from $223.7 million as sales shifted to lower margin products, company said. Operating profit improved at Kimball’s projection-TV cabinet plant in Juarez despite downturn in sales. Kimball purchased Juarez factory from Zenith in late 1990s as CE company disposed of manufacturing businesses. Electronic contract assemblies segment sales declined to $92.2 million from $97.1 million in year.

Electronics Boutique online subsidiary EBWorld.com signed definitive agreement with Microsoft to provide PC games on broadband games-on-demand Web site EB1, www.eb1.com. As part of deal, visitors to site will be able to rent full retail versions of recently shipped games published by Microsoft. Other game makers who have signed similar deals with EBWorld.com include Eidos Interactive, Infogrames, Take-Two Interactive.

TiVo signed new 7-year worldwide licensing agreement with Sony that’s forecast to generate $10-$15 million in incremental revenue for TiVo in next 12 months, CEO Michael Ramsay said.

Online music company Pressplay signed licensing agreements with 6 independent labels. Pressplay said deals expanded its online music library that already included tracks from major record labels EMI Recorded Music, Sony Music Entertainment, Universal Music Group. Latter 2 companies jointly own Pressplay. New, nonexclusive deals included one with Navarre. Via new agreements, Pressplay’s library will be getting songs by artists including Marshall Crenshaw, Herman’s Hermits, Billie Holiday, Alison Krauss, Mannheim Steamroller, Charlie Parker, Graham Parker, Jonathan Richman, Kenny Rogers, George Thorogood, 2 Live Crew, Buckwheat Zydeco. Pressplay service is scheduled to start this fall, but date hasn’t been announced. Competing MusicNet service jointly owned by BMG, EMI, RealNetworks and Warner also is also to start soon, although that date also hasn’t been announced.