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ArchivesReport: Video Game Console Sales Down Nearly 50% in 2004Authored by Mark Hefflinger on November 30, 2004 - 4:15am.
Scottsdale, Ariz. -- The video game console market is at the back end of its current cycle, with shipments and prices now expected to decline until the release of the next generation of consoles, according to a report from Arizona-based market research firm In-Stat/MDR. Worldwide shipments of consoles this year are predicted to reach 19.3 million, down almost half from the 35 million shipped in 2003. The first next-generation console should hit the market in the fourth quarter of 2005 with the introduction of Microsoft's Xbox 2. Sony is expected to launch its PS3 console by mid-2006, with Nintendo to release its next console either before, or simultaneously with Sony. In-Stat projects that Sony will ship the most next-generation consoles through 2008; the company reported shipping its 70 millionth PlayStation 2 in January.
Sony Releases Hard Drive-Based Walkman Portable Music PlayerAuthored by Mark Hefflinger on November 30, 2004 - 4:14am.
Amsterdam -- Japanese consumer electronics firm Sony on Tuesday introduced its first Walkman portable music player to feature a hard drive and support for the ubiquitous MP3 format. The 20GB player will go on sale in the U.K. and Japan next month for $462, nearly $40 more than Apple's comparable 20GB model iPod. The device, which comes in five colors, will be released in the rest of Europe early next year. The Walkman will not play songs purchased from Apple's iTunes Store; likewise, the iPod cannot play songs purchased from Sony's Connect online music store. Sony contends that the Walkman can hold up to twice as many songs as an iPod, though, if songs are formatted using its proprietary ATRAC3plus compression.
Animation Production Company Wild Brain Raises $30 MillionAuthored by Mark Hefflinger on November 30, 2004 - 4:12am.
San Francisco -- Wild Brain, a producer of animated entertainment, announced on Tuesday that it has raised $30 million in a round of funding led by Valence Capital Management. Previous investors including Syntek Capital AG also participated. San Francisco-based Wild Brain recently announced a deal to co-finance and co-produce 3D CGI animated films with Miramax Films and Dimension Films. Their first joint production will be "Opus," which is adapted from an idea by illustrator Berkeley Breathed. Wild Brain said it will use the proceeds to further accelerate and support its production of feature film, commercial advertising and television properties.
Game Developer Valve Wins Contract Dispute with Vivendi Over CybercafesAuthored by Mark Hefflinger on November 30, 2004 - 4:12am.
Kirkland, Wash. -- Video game developer Valve Software announced that the U.S. District Court in Seattle has ruled that publishing partner Vivendi Universal Games breached its contract with the company when it distributed Valve's PC games in cybercafés around the world. The court did not rule on what, if any, damages to award Valve. "We're happy the court has affirmed the meaning of our publishing contract," said Valve CEO Gabe Newell. "This is good news for Valve and its cybercafé partners around the world." Valve and Vivendi have several other lawsuits pending, including a charge from Vivendi that Valve violated its publishing agreement with Vivendi by distributing its "Half-Life 2" game through an online system in addition to in stores, where Vivendi would share in profits.
Midway Games Acquires "Mortal Kombat" Developer Paradox DevelopmentAuthored by Mark Hefflinger on November 30, 2004 - 4:11am.
Chicago -- Video game publisher Midway Games said on Tuesday that it has acquired Moorpark, Calif.-based Paradox Development, which is developing Midway's upcoming "Mortal Kombat: Shaolin Monks" title. Midway tendered 333,334 shares for Paradox; the company's shares closed up slightly on Tuesday at $10.84. Midway said the "Mortal Kombat" franchise has generated over $1 billion in games, movies, music, toys and other merchandise since launching in 1992. The acquisition is Chicago-based Midway's third in recent months. The company also bought Austin-based Inevitable Entertainment, developer of its "Area 51" title, and Seattle-based Surreal Software, which created Midway's "The Suffering."
Chinese Online Game Operator Shanda Buys Stake in Korean Developer ActozAuthored by Mark Hefflinger on November 30, 2004 - 4:10am.
Shanghai, China -- Chinese online game operator Shanda Interactive Entertainment announced on Tuesday that it has purchased a 29% controlling stake in Korean online game developer Actoz Soft for $97.1 million in cash. Actoz is co-owner of the copyright for "The Legend of Mir II," currently the most popular online game in China. Shanda operates "Mir II" in China, as well as other titles including "BNB," currently the most popular casual online game in China. Shanghai-based Shanda said the strategic investment secures an alliance with its leading supplier of online game content.
Ampex to Get $40 Million in Sony SettlementAuthored by Mark Hefflinger on November 30, 2004 - 4:07am.
Redwood City, Calif. -- Ampex, a developer of audio-visual technologies, said on Monday that it will receive $40 million in a settlement of its patent infringement suit against Sony. The suit, filed in July, revolved around technology relating to digital still cameras manufactured and sold by Sony. Under the settlement, Sony will be permitted to use Ampex patents in any of its products through April 2006. Ampex also recently announced patent license agreements with Canon and Sanyo Electric Company.
E-Book Systems Lands $3 Million as Part of Asian Joint VentureAuthored by Mark Hefflinger on November 30, 2004 - 4:01am.
Santa Clara, Calif. -- E-Book Systems, developer of a 3-D page-flipping interface, has announced that it will receive a $3 million investment from Japan's Softbank Media & Marketing as part of a joint venture between the two companies. Specifically, the investment will go to E-Book Systems' Singapore-based unit, which holds a number of patents for e-publishing technologies. The new joint venture company, E-Book Systems Kabushiki Kaisha (KK), will direct the establishment of electronic publishing in Japan and Korea. E-Book Systems KK anticipates turning a profit by 2006. Currently, 273 magazine titles worldwide use the company's technology, which delivers multimedia content in the form of a virtual book.
Kazaa Parent Co. Sharman Networks, U.S. Record Labels Spar in Aussie CourtAuthored by Mark Hefflinger on November 29, 2004 - 4:21am.
Sydney -- In an Australian court on Monday, the major U.S. record labels and 25 other companies commenced their arguments against peer-to-peer file-sharing software provider Sharman Networks, distributor of Kazaa. In addition to copyright infringement, the record industry is suing Sharman, its chief executive and several partners in Australia for misrepresentation to the public, unconscionable conduct and civil conspiracy to inflict harm. Music industry attorney Tony Bannon told Australian Justice Murray Wilcox in court on Monday that Kazaa profits "by selling advertising space on the computer screens of the users while they are in the very act of infringing copyright," ZDNet Australia reported. Bannon also argued that ownership of Sharman, which has been kept secret through its registration on the tax haven island of Vanuatu, is in fact controlled by Kevin Bermeister, CEO of Kazaa partner Altnet. Bermeister's home, along with the home of Sharman CEO Nikki Hemming, was raided in February as part of the Australian record industry's investigation of Kazaa. Bannon said there is "ready inference that Kevin Bermeister is in fact the ultimate controller of Sharman," ZDNet reported. While Sharman still battles the record industry in Australia, the U.S. Court of Appeals has upheld that Sharman is not liable for any copyright infringement committed by Kazaa users, prompting the music industry here to lobby lawmakers for new statutes that prohibit file-sharing.
Judge Rules MPAA Can't Lump Movie File-Swapper Lawsuits TogetherAuthored by Mark Hefflinger on November 29, 2004 - 4:20am.
San Francisco -- A federal judge in California has slowed Hollywood's recently-launched legal campaign against Internet movie file-swappers, ruling last week that the Motion Picture Association of America (MPAA) may not lump its "John Doe" defendants into groups and sue them collectively. The MPAA is seeking to have its "John Doe" defendants identified by their Internet service providers, via the IP address registered when they allegedly used file-sharing networks. In a tactic first used by the record industry before being ruled illegal in court, the MPAA joined defendants into groups of 12 or more. U.S. District Court Judge William Alsup wrote in his order, released last week, that "such joinder may be an attempt to circumvent the filing fees by grouping defendants into arbitrarily-joined actions but it could nonetheless appear improper." Wendy Seltzer, a staff attorney for the Electronic Frontier Foundation, which filed a friend of the court brief objecting to the grouped lawsuits, said the decision "helps to give due process rights to the Internet users accused of infringement. Lumping them together makes it more difficult for everyone to defend against these claims."
Four Hollywood Studios Sign On to Support Toshiba HD DVD FormatAuthored by Mark Hefflinger on November 29, 2004 - 4:19am.
Tokyo -- Further increasing the competition between competing next-generation DVD formats, Japanese electronics firm Toshiba announced on Monday that four Hollywood movie studios have agreed to release movies on its high-capacity HD DVD format. Paramount Pictures, Universal Pictures, New Line Cinema and Warner Bros. Studios all said on Monday they would support Toshiba's HD DVD format, while none ruled out the possibility of also releasing titles on Sony's rival Blu-ray Disc format. Both Toshiba's and Sony's next-generation DVD formats use blue laser technology and offer capacities of around 30GB per disc, up from today's standard 4.5GB DVD disc. Toshiba expects HD DVD players to begin shipping in late 2005, when Universal says it will release select titles in HD DVD format; Paramount plans its first releases on HD DVD in 2006.
Report: U.K. to Spend $757 Million on Digital TV SwitchoverAuthored by Mark Hefflinger on November 29, 2004 - 4:18am.
London -- According to a new report released by the Consumer Panel, the U.K. government can expect to pay as much as $757 million when it makes the switch from analog to digital TV. Set up by communications and media watchdog Ofcom, the independent panel of experts said practical help and support for society's "most vulnerable members" would cost about $208 million, while financial assistance for the switchover, which could occur as early as 2012, could cost as much as $511 million. The panel went on to say that informing the public was even more important than financial assistance when it came to reaching the elderly, the disabled and people with poor English. It urged the government to start a public information campaign on digital TV immediately.
EU Court to Rule on Microsoft Appeal in DecemberAuthored by Mark Hefflinger on November 29, 2004 - 4:17am.
Brussels -- Judge Bo Vesterdorf has announed that Europe's second-highest court will decide on Dec. 18-20 whether to accept Microsoft's appeal to suspend EU sanctions against the U.S. software giant. In March of this year, the European Commission ruled that Microsoft had abused its dominant market position and ordered the company to pay a fine of $613 million and remove Media Player software from its Windows operating system. The sanctions have been suspended until the appeal is heard. Vesterdorf called a meeting with Microsoft earlier this week to discuss the fact that U.S.-based Novell and the Computer and Communications Industry Association (CCIA) recently received multimillion out-of-court settlements from Microsoft. After meeting with Microsoft executives and Commission officials on Thursday morning, Vesterdorf said he decided to keep testimony from Novell and the CCIA on the record.
Report: Online Shopping on "Black Friday" Jumps 11%Authored by Mark Hefflinger on November 29, 2004 - 4:16am.
New York -- Online shopping on the day after Thanksgiving, traditionally known as "Black Friday," jumped 11% from the year before in terms of unique shoppers, according to data released on Monday by Nielsen/NetRatings, a provider of Internet audience measurement services. Tracking activity at 109 key retail and shopping sites, the firm said that 13.3 million people visited online stores during the day. The firm credited shoppers researching products and prices before heading out to the mall. eBay led the top online shopping destinations with 5.4 million unique visitors, followed by Amazon (2.6 million), Wal-Mart (1.4 million), Target (923,000) and BestBuy.com (847,000).
Report: U.S. Broadband Use Trails Other Nations; Rural, Minority Adoption LagsAuthored by Mark Hefflinger on November 23, 2004 - 4:34am.
Washington -- The number of Americans with high-speed Internet access doubled between 2001 and late 2003, to 20% of U.S. households, according to a Commerce Department report conducted in September and released this week. U.S. broadband adoption is still far outpaced by countries including South Korea, Taiwan and Canada. "This is lousy," Harris Miller, head of industry trade group the Information Technology Association of America, told the Associated Press. "We're just not keeping up with our competitors. We're not even keeping up with countries we don't consider competitors. It's not acceptable." Rural and minority U.S. residents were also below expectations for broadband usage. One-in-seven black and less than one-in-eight Hispanic households have broadband, and only 24.7% of rural households reported a high-speed connection compared with 40.4% of urban households. The report did find that Americans with high-speed connections were more likely to be daily Internet users (66.1%) than those with dial-up service (51.1%), and that broadband users engaged in a larger variety of online activities, such as entertainment, banking, commerce and information gathering.
Congress Creates Federal Copyright Enforcement CzarAuthored by Mark Hefflinger on November 23, 2004 - 4:32am.
Washington -- Congress has approved the creation of a federal copyright enforcement czar, as part of the $388 billion omnibus spending bill pushed through by lawmakers last weekend, according to The Hollywood Reporter. Appointed by the president, the anti-piracy czar will be charged with coordinating law enforcement in charge of international efforts to curb piracy, and will oversee the National Intellectual Property Law Enforcement Coordination Council (NIPLAC). Congress also for the first time provided funding to NIPLAC, which will get $2 million to protect U.S. intellectual property overseas and organize IP law enforcement. THR said that proponents of the idea, including Sen. Judd Gregg (R-N.H.) and Sen. Ted Stevens (R-AK), had originally asked for $20 million for the agency. Critics of the idea argued that monies could be better spent than to prop up a for-profit industry. "I think the taxpayers would be surprised that there's money being spent for copyright enforcement when terrorists and criminals still roam the streets," Gigi Sohn, president of the nonprofit fair-use advocacy group Public Knowledge, told Reuters. "When every dollar is being counted for education, health care and homeland security, it seems like a strange priority."
EMI: Digital Music Sales Up 300% to $22.8 Million for First Half of 2004Authored by Mark Hefflinger on November 23, 2004 - 4:31am.
London -- EMI, the world's third-largest record label, reported that sales of digital music increased 300% in the first six months of its fiscal year to $22.8 million, or just over 2% of the company's $1.6 billion in total sales. The company credited the recording industry's legal campaign against illegal downloading, although during the period the market also saw the launch of Apple's iTunes Stores in the U.K., France and Germany, and Napster's launch in the U.K. "The legitimate digital music market continues to expand rapidly and we remain confident that digital represents a key driver for future industry growth," said EMI chairman Eric Nicolli.
Napster, Blockbuster Offer Combined Digital Music, Online DVD Rental CardsAuthored by Mark Hefflinger on November 23, 2004 - 4:30am.
Los Angeles -- Napster announced on Tuesday that it has partnered with video rental giant Blockbuster to offer a "Digital Duo" card, providing consumers with one month of digital music service and one month of Blockbuster online DVD rentals for $20. The card will provide unlimited access to Napster's on-demand streaming service and two a la carte song downloads, as well as unlimited mail-order DVD rentals with up to three titles out at one time, plus two free in-store movie or game rentals per month. The companies said the card provides a 32% savings off the retail value of the combined services. During the initial launch period, the Digital Duo card will only be available at electronics retailer RadioShack's 5,000 retail locations. A spokeswoman for Napster would not say whether the cards will eventually be available at Blockbuster.
U.K. Retail Giant Dixons Decides to Stop Selling VCRsAuthored by Mark Hefflinger on November 23, 2004 - 4:28am.
London -- U.K.-based consumer electronics retail giant Dixons has announced that it plans to stop selling VCRs before the holiday season, because of the overwhelming popularity of DVD players. Dixons said customers increasingly preferred portable and recordable DVD and hard disk drive machines to video cassette recorders, leading to company to shift its focus toward the "next generation" of home entertainment systems. "The [VCR] has been with us for a generation, and many of us have grown up with the joys, and occasional frustrations, of tape-based recording," said Dixons marketing director John Mewett. "We are now entering the digital age, and the new DVD technology available represents a step change in picture quality and convenience." Dixons said it currently sells about 40 DVDs for every VCR it sells.
Thomson, VeriSign Partner on Secure E-Commerce Service for Music, MoviesAuthored by Mark Hefflinger on November 23, 2004 - 4:27am.
Paris -- Thomson, a provider of video equipment to media and entertainment firms, announced on Tuesday that it has partnered with VeriSign, a provider of e-commerce security software, to create an on-demand content authentication and authorization service to support the secure delivery of music, movies, games and other media over the Internet. The companies say they have already demonstrated the service with entertainment, telecom and technology firms and plan a commercial launch by mid-2005. Paris-based Thomson and Mountain View, Calif.-based VeriSign are also developing proprietary technology to provide secure authentication and authorization of digital content over home networks and devices like PCs, digital video recorders and recordable media. Yesterday, Thomson announced that it purchased a 33% stake in ContentGuard, a digital rights management joint venture with Microsoft and Time Warner.
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