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Microsoft's Entertainment Unit Posts First Profit on Strong "Halo 2" Sales

Authored by Mark Hefflinger on January 28, 2005 - 5:28am.
Redmond, Wash. -- Microsoft said that strong sales of its "Halo 2" video game for its Xbox console helped to bring its entertainment division into the black two years earlier than expected, and more than double its quarterly profit. Microsoft's entertainment division saw revenue of $126 million for the quarter, compared with a loss of $213 million during the same period last year. Over 6.3 million copies of "Halo 2" have now been sold, generating $300 million for the company's games division, which saw a profit of $84 million compared to a loss of $397 million a year earlier. The game's sales also helped offset slightly weaker sales for its PC games and Xbox consoles. However, Microsoft investor relations manager Curt Anderson told the Los Angeles Times that Xbox shipments are already approaching targets set to be met six months from now, while noting that profitability for the company's games unit isn't expected until 2007.
tags: Microsoft's Entertainment Unit | First Profit | Halo 2 |

Sony Revenue Drops on Weaker Sales for PlayStation 2, Other Devices

Authored by Mark Hefflinger on January 28, 2005 - 5:26am.
Tokyo -- Sony Corp. said that its revenue for the quarter ended Dec. 31 fell 7.5% to $20.9 billion, citing in part sluggish sales for its portable audio players and PlayStation 2 video game console. The company said it faced parts shortages for its redesigned PlayStation 2 that caused detrimental shortages during the holiday shopping period, which were exacerbated by an effort to rapidly increase production to meet demand. While Sony's Walkman portable CD players once dominated the market, the company's portable digital music players have faltered amid its insistence on proprietary formats and the booming popularity of Apple's iPod.
tags: Sony | PlayStation 2 | Revenue Drops | Weaker Sales |

Volkswagen Sues Makers of Suicide Bomber Spoof Internet Ad

Authored by Mark Hefflinger on January 28, 2005 - 5:24am.
Frankfurt -- Automaker Volkswagen has filed a criminal lawsuit against the anonymous creators of a controversial spoof ad for its Polo car that has recently spread across the Internet, Reuters reported. The ad for the Polo, whose motto is "Small but Tough," features the car absorbing the blast from a suicide bomber's explosives detonated from within the car, parked outside a crowded café. Volkswagen and its ad agency deny having created the ad, and sued under a provision of German law that allows charges to be filed against unknown defendants, compelling prosecutors and law enforcement to then track them down. "This is an attack on Volkswagen's good name," company spokesman Hartwig von Sass told Reuters. The U.K. newspaper Guardian reported that a London-based advertising duo called Lee and Dan admit to creating the ad as a calling card for their business, were horrified by the reaction, and have since apologized.
tags: Sues | Volkswagen | Suicide Bomber Spoof Internet Ad |

Mobile Gaming Set to Become Most Common Wireless App

Authored by Mark Hefflinger on January 28, 2005 - 5:22am.
London -- According to a new report by market analysis firm IDC, mobile gaming is set overtake ringtones by year's end to become the most common type of wireless data application. The global mobile gaming market is growing so quickly, in fact, that IDC estimates it will be a $1.4 billion industry by the year 2008. What's more, IDC predicts mobile games will soon evolve from single player, device-only game play towards virtual community gaming. The report also said the interdependence in the market would necessitate that carriers, handset manufacturers, game developers, aggregators and others would have to work together more closely to maximize revenues and accelerate market penetration.
tags: Mobile Gaming | Common Wireless App |

German Court Rules ISPs Need Not Reveal Identities of File-Swappers

Authored by Mark Hefflinger on January 28, 2005 - 5:19am.
Frankfurt -- The Higher Regional Court of Frankfurt has ruled that ISPs in Germany are not obligated to reveal the identities of their subscribers who are accused of copyright infringement on file-sharing services, the German newspaper Heise reported. The denial to record labels seeking to sue such anonymous file-swappers was the second such ruling delivered in Germany, in stark contrast to U.S. precedent, where courts have enabled record labels and movie studios to file "John Doe" copyright suits that compel ISPs to reveal the identities of their customers. The German court said that ISPs only supply technical access to the Internet, and aren't generally obligated to inspect the data transmitted along their networks, but must block access when they learn of illegal content.
tags: ISP | File-Swappers | German Court | Reveal Identities |

Report: U.K. Accounts for 80% of All Online Gambling in Europe

Authored by Mark Hefflinger on January 28, 2005 - 5:17am.
London -- About 80% of the total online gambling market in Europe is generated in the U.K., according to a new survey conducted by uSwitch.com. "Increased access to the Internet at home means that you can now partake in activities and pastimes that you would traditionally have to leave the comfort of your home for," said uSwitch director Jon Miller. More 18 to 29 year-olds gambled online than any other age group, accounting for 14% of the 3.9 million households that have used the Internet for gambling. uSwitch also found that British women, which account for as much as 40% of the local market, are far more likely to gamble online than women on the Continent, which account for just 5% of the European market.
tags: Europe | Reports | U.K | Accounts | Online Gambling |

Set-Top Maker Pace Micro Fined Record $849,000 for Listing Violation

Authored by Mark Hefflinger on January 28, 2005 - 5:14am.
London -- After a three-year investigation, the U.K. Financial Services Authority (FSA) has fined Pace Micro, a U.K.-based TV set-top box manufacturer, a record $849,000 for breaching stock exchange listing rules. The FSA levied the fine, more than five times the previous record, after deciding Pace Micro had failed to keep investors properly updated. After a profits warning in March 2002, Pace Micro shares lost 67% of their value in a single day. The company had published interim results only two months previous. "The effect of Pace's omission from its interim announcement on January 8, 2002, was further compounded by the delay in announcing its changed expectation as to its financial performance until March 5, 2002," said FSA director of markets Gay Huey Evans. "These were clear breaches of the listing rules."
tags: Law | Pace Micro | Set-Top Maker | Listing Violation |