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.
Jakks Pacific reported $10.9 million profit (56? per diluted share) for 3rd quarter ended Sept. 30, up from $9.8 million profit (48?) year ago. Revenue inched up to $92.8 million from $91.8 million. CEO-Chmn. Jack Friedman said: “In light of recent world events and the slowdown that is affecting virtually all segments of the economy including retail, we are well satisfied” with results. Malibu, Cal., company makes videogames and toys. Friedman said his company’s key videogame franchise -- World Wrestling Federation (shared with game maker THQ) -- would spawn 3 new titles in 4th quarter, including SKUs for Game Boy Advance, PlayStation 2, Xbox: “As the installed base for the new hardware systems increases, it bodes extremely well for sales of our World Wrestling Federation videogames for the 4th quarter, fiscal 2002 and beyond.”
TDK Mediactive reported $94,918 loss for 2nd quarter ended Sept. 30, reversing $153,669 profit (2? per share) in same quarter last year, but revenue for game maker rose to $4.6 million from $1.2 million. CEO Vincent Bitetti said: “Although our sales improved substantially over the prior year and the prior quarter, the results were somewhat impacted by slower than anticipated sales of Game Boy Advance hardware at retail, the natural next-generation cycling of the Game Boy Color marketplace and a general disruption of business during the month of September, exacerbated by the tragic events of September 11.”
Three-Five Systems scaled back forecast revenue from liquid- crystal-on-silicon (LCoS) microdisplay business for current fiscal year to $3-$4 million from $15 million as OEM customers start to bring product to market. Thomson had been expected to deliver first 50W rear-projection TVs containing Three-Five’s 0.78” microdisplay to West Coast dealers by late Sept., but since had postponed move until late this year. “We had some refinements we had to make before the product met our specifications,” Thomson spokesman said. Samsung and 3M have licensed technology for PC monitors and front projectors, respectively, but have yet to deliver product. Samsung was to deliver product year ago, but pushed it back as it sought to improve resolution of microdisplays panels. “The revenues [from LCoS] will be below plan, but the demand remains high,” CEO Jack Saltich told analysts in earnings conference call late Wed. Some issues remain with components of display, including color quads and lamps, he said. Ramp-up for volume production of microdisplays is expected to begin in Tempe, Ariz., in first half next year, Saltich said. Three-Five, citing costs of developing LCoS, said it lost $4 million in 3rd quarter, reversing $4.3 million profit year earlier, as sales plunged to $26.6 million from $40.2 million. Earnings downturn also was tied to lower selling prices for LCD modules that Three-Five builds for cellular phones marketed by Motorola, which accounted for 75% of revenue in quarter. While Three-Five had hoped to reduce Motorola to 60% of revenue by 4th quarter, slower-than-expected rollout of LCoS will prevent it from meeting target, Saltich said. Three-Five’s LCD production, most of which has been switched to Far East after shutdown of Ariz. facility, is expected to break even in 4th quarter, he said. LCoS business will break even with sales of $15-$20 million, he said. Three- Five’s organic light-emitting diode (OLED) joint venture with DuPont is expected to start pilot of production of 1-5” passive matrix displays in 4th quarter, shifting to volume quantities by 2nd half 2002 at contract manufacturer Ritek’s plant in Taiwan. While Saltich earlier this year indicated OLEDs would target cellular phones at start, he told analysts that “power and lifetime” issues remain with that application and that joint venture would look at other products. OLEDs will generate $2 million revenue in 2002, Saltich said.
Mad Catz Interactive became latest licensee of Immersion’s TouchSense technology for videogame console peripherals, companies said Wed. Deal expands partnership established by companies in 1998. Mad Catz Pres.-COO Darren Richardson said technology was “valuable asset to console and peripheral manufacturers” because it added “increased sense of realism” to gameplay.
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.”
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.
Hit from Sept. 11 attacks on Thomson Multimedia 3rd quarter revenues was about 150 million euros ($135 million), company said Wed.
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.
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.