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Report: U.S. Video Game Sales Up 23% to $2.2 Billion in First Quarter

Authored by Mark Hefflinger on April 25, 2005 - 7:29am.
Port Washington, N.Y. -- First quarter U.S. video game sales rose 23% over the same period a year ago, to $2.2 billion, while total unit sales climbed 18% to 63 million units, according to a report from market research firm NPD Group. The figures include sales of video game consoles and handhelds, in addition to game software for these platforms. Portable game hardware showed the most growth, rising 162% to $293 million -- fueled by the Nintendo DS and Sony PSP -- while console hardware and software saw more modest gains of 8% and 7%, respectively. Total console software sales exceeded $1 billion. "While we expected to see impressive sales in the portable categories, the fact that all categories saw positive sales growth in terms of both dollars and units is a real testament to the broadening appeal of video games as a form of entertainment," said NPD analyst Anita Frazier. The ten top-selling game titles for the first three months of 2005 included Sony's "Gran Turismo 4" in the top spot, Take-Two's "Grand Theft Auto: San Andreas," Capcom's "Resident Evil 4" and LucasArts' "Mercenaries."
tags: Reports | First Quarter | U.S. Video Game | Sales Up |

Online Ad Firm DoubleClick Acquired by Investors for $1.1 Billion

Authored by Mark Hefflinger on April 25, 2005 - 7:27am.
New York -- DoubleClick, a provider of online advertising technology and services, announced on Monday that it has signed an agreement to be acquired and taken private by San Francisco-based private equity firm Hellman & Friedman LLC. DoubleClick shareholders will receive about $1.1 billion, a 10.6% premium over the recent average value of DoubleClick shares. San Diego-based venture capital firm JMI Equity also invested in the acquisition. New York-based DoubleClick said in November that it had hired an advisor to explore a possible sale of the company. "We look forward to partnering with the DoubleClick team to help realize the company's significant opportunities for growth in both its online advertising and marketing and data businesses," said Hellman & Friedman managing director Philip Hammarskjold. Following the deal's closing, expected in the third quarter, DoubleClick CEO Kevin Ryan will step down to pursue other opportunities, and a new chairman and board of directors will be appointed.
tags: DoubleClick | Investors | Online Ad | Acquired |

Wireless Industry Creating Ratings System for Cell Phone Media Content

Authored by Mark Hefflinger on April 25, 2005 - 7:24am.
Washington -- In a move to head off potential scrutiny from the Federal Communications Commission (FCC), the wireless industry is developing its own content ratings system that would apply to all multimedia content delivered to cell phones, Reuters reported. The Cellular Telecommunications & Internet Association (CTIA), an industry trade group, said it is working with the RIAA, MPAA and Entertainment Software Ratings Board, which assigns video game ratings, to come up with a content classification system -- partly in response to the roll-out of adult wireless content from providers like Playboy, Hustler and Brickhouse Mobile. "The adult side of things has really kick-started it," CTIA vice president Mark Desautels told Reuters. "As indecency becomes an increasing point of interest on the part of policymakers, we really need to be proactive about it… We want to develop more sophisticated filtering tools, so that the ability to filter or to block certain types of content will be another part of the suite of services that carriers seek to provide." The CTIA aims to create a "restricted" category for content not appropriate for those under 18 by the middle of 2005, with a more detailed system coming within a year.
tags: Wireless Industry | Ratings System | Cell Phone Media |

Google to Sell Banner Ad Placements on Third-Party Websites

Authored by Mark Hefflinger on April 25, 2005 - 7:22am.
Mountain View, Calif. -- Looking to expand a lucrative online ad business that generated $1.26 billion during the first quarter, Google on Monday began offering advertisers the ability to place multimedia banner ads on third-party websites. A test of the Site Targeting service requires advertisers to bid on the potential audience their ads will reach, like the method used to determine the cost of ads on TV and radio, as opposed to its keyword search ads -- where advertisers only pay when users click on their ads. Advertisers will bid a minimum of $2 to reach 1,000 people using the cost per impression (CPM) system, and will be able to choose which third-party sites their banner ads will appear on. The Site Targeting service is aimed at larger, brand-oriented companies that are more inclined to buy ads with visual impact than text-only ads.
tags: Google | Banner Ad Placements | Third-Party Websites |