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Game Developer Acclaim Lays Off 600, Will File for Bankruptcy

Authored by Mark Hefflinger on August 31, 2004 - 10:08am.
Glen Cove, N.Y. -- Struggling video game developer Acclaim Entertainment has laid off all 600 of its employees and will file for Ch. 7 bankruptcy on Tuesday, according to various published reports citing sources within the company. Acclaim was unable to renew its loan with GMAC Commercial Finance, and unsuccessful in locating an alternative $65 million loan. Company CFO Gerald Agoglia told employees at the company's Glen Cove, N.Y. headquarters of the news late Friday, IGN.com reported; Acclaim also operated development studios in Austin, Texas and Manchester and Cheltenham in Great Britain. The company will not publish titles such as "The Red Star" and "Juiced," which were slated for release in September. Acclaim has suffered weak sales of its titles over the past year, and was also compelled to restate results from the past three years after discovering an accounting error. Acclaim shares were delisted from the Nasdaq last week after failing to meet Nasdaq requirements.
tags: Games | Acclaim | File | Bankruptcy |

Large Webcasters, SoundExchange Propose Music Royalty Agreement

Authored by Mark Hefflinger on August 31, 2004 - 10:03am.
Washington -- The Digital Media Association (DiMA), a trade group of large music webcasters, announced that it has filed a joint petition with SoundExchange, the recording industry's digital royalty collection body, to renew the current webcasting royalty rates for the period of 2005-2006. The U.S. Copyright Office will publish the agreement and accept comments in its review of the proposed deal, which would eliminate the necessity of holding another contentious Copyright Arbitration Royalty Panel (CARP). The agreement would cover large webcasters including AOL, Microsoft, Yahoo and RealNetworks, while smaller webcasters would still be free to negotiate their own terms. "DiMA companies continue to believe that royalties paid by our industry to sound recording companies and artists are unfairly high and above-market-rate," said DiMA executive director Jon Potter. "Nevertheless, in the interests of focusing our industry's limited resources on the continuing effort to build profitable businesses and defeat piracy, DiMA has agreed to avoid arbitration and the associated costs for at least another year or two."
tags: Music | Agreement | SoundExchange | Royalty | Webcasters |

WSJ: America Online Testing Internet Phone Service

Authored by Mark Hefflinger on August 31, 2004 - 10:01am.
Dulles, Va. -- Hoping to cash in on a growing trend in telecommunications, America Online is testing a new Internet telephone service, The Wall Street Journal reported on Tuesday. The service, which is based on Voice-over-Internet Protocol (VoIP) technology -- will allow the company to offer phone service to broadband customers at low prices. The Journal reported that AOL, which has about 23 million Internet customers, is working with Level 3 Communications to test the service. Recently, cable companies have been exploring the possibility of adding VoIP services, which are gaining popularity as more consumers switch to broadband Internet connections. Traditional phone companies, such as AT&T, Verizon and Qwest, also have announced plans to enter the market in an attempt to keep their customer bases in tact.
tags: Internet | WSJ | America | Phone Service |

Report: Music Downloads to Hit $4.2 Billion in Western Europe by 2009

Authored by Mark Hefflinger on August 31, 2004 - 10:00am.
Cambridge, Mass. -- The digital music market in Western Europe will grow to $4.2 billion in 2009, gradually catching up with U.S. sales after the launch of services from Apple, Sony, Napster and Microsoft in the region, according to a report from Massachusetts-based market research firm Forrester Research. Over 60% of European downloads will be generated in Britain, France and Germany in 2009, Forrester projected, with Spain and Italy growing to account for an additional 20% of the market. The report also found that half of the current market for digital music sales is generated by consumers aged 16-24, but predicts that older users will increasingly access such services as they become more easy to use.
tags: Downloads | Reports | Musics | Western Europe |

Audible, Random House Joint Venture to Sell Audiobooks in Germany

Authored by Mark Hefflinger on August 31, 2004 - 9:59am.
Wayne, N.J. -- Audiobook publisher Audible on Tuesday announced the formation of an international joint venture with publisher Verlagsgruppe Random House and Holtzbrinck Networxs to create a German-language version of its online audiobook store. Audible.de is expected to launch in the fourth quarter of 2004 and will consist of a German language site featuring German audio content as well as Audible's English-language content for download. New Jersey-based Audible also announced on Tuesday that it partnered with C-SPAN to offer free audio downloads of keynote speeches from the 2004 Republican National Convention.
tags: Germany | Audible | Venture | Audiobooks | Random |

Wireless Entertainment Publisher Dwango Raises $3 Million

Authored by Mark Hefflinger on August 31, 2004 - 9:57am.
Seattle -- Dwango North America, a developer and publisher of wireless entertainment content, announced on Tuesday that it has raised $3 million in new funding from Weiss, Peck & Greer Investments. The investment follows an earlier aggregate funding of $5 million from Alexandria Investment Management. Seattle-based Dwango, the U.S. arm of Japanese firm Dwango Co. Ltd., has delivered games and ringtones to partners including Rolling Stone and ESPN. "This most recent investment will drive continued product development, brand acquisitions and international expansion to meet increasing global demand for our mobile entertainment content," said Dwango CEO Rick Hennessey.
tags: VC | Dwango | Wireless Entertainment |

Game Developer Crave Entertainment Secures $58 Million Credit Facility

Authored by Mark Hefflinger on August 31, 2004 - 9:39am.
Los Angeles -- Video game developer and publisher Crave Entertainment announced on Tuesday that it has secured a new three-year, $58 million credit facility with GE Capital. The package includes a $55 million revolving credit line for working capital needs and a $3 million loan. The company also announced that it has relocated its warehouse operations from Rancho Dominguez, Calif. to a larger facility in nearby Carson. Crave Entertainment has developed titles including "Ultimate Fighting Championship," "Freedom Force" and "Battle Realms."
tags: Games | Crave Entertainment | Secures | Credit Facility |

Paramount Buys Film Rights to Midway Games' "AREA 51"

Authored by Mark Hefflinger on August 31, 2004 - 9:39am.
Hollywood -- Viacom's Paramount Pictures announced on Tuesday that it has acquired the rights from Chicago-based developer Midway Games to create a feature-length film based on the company's upcoming "AREA 51" video game. The title, scheduled for release in March 2005 for PlayStation 2 and Xbox, is an alien-themed sci-fi game that features voice talent from David Duchovny, Powers Boothe and Marilyn Manson. Paramount said that producer Christine Peters ("How to Lose a Guy in 10 Days") will be collaborating with Midway Games on the film, billed as an action-packed thriller.
tags: Paramount | Midway Games | AREA 51 |