Gamenews Weekly
Production Pages
14 June 2005 Gamenews Weekly: Production Pages - games in development in Australia. To get the next issue, and lots more, subscribe to Gamenews Weekly today!

Dissecta 22 November 2005: Heroes of the Pacific!

Events
Next Gen War - Reports from the E3 Expo Frontline; 28 June 2005
Gamenews.com.au editor and others have formed Dissecta, game fan and game maker events. Dissecta is a series of events for the game industry, to be held in Melbourne. The first event is an E3 Expo review to be held 28 June 2005. "Next Gen War - Reports from the E3 Expo Frontline" will feature a panel of speakers drawn from the game industry including IR Gurus, developers of soon to be released AFL Premiership 2005 and Heroes of the Pacific, represented by Mike Fegan, and via prerecorded video just for Dissecta, Ben Lenzo of Perception (Stargate SG-1). High quality E3 Expo video footage will be shown, provided by Next Gen Videos, the only company officially sanctioned to record E3 Expo. The event will start at 7:00 pm and run 1.5 hours (includes Q&A time). The panel will run through the key issues, trends, and products as seen at this year's E3 held in Los Angeles in May. Dissecta is an event based community for the video game industry and keen game fans and aims to encourage better understanding of the creative and business side of the video game industry and Australia's part in it. The venue is to be confirmed but will most likely be ACMI, Federation Square, Melbourne CBD. See www.dissecta.com for more information, to join Dissecta News, and register for tickets. [31 May 2005] [top]

Industry
Greek Publisher Secures Bet On Soldier
Greek publisher and distributer Hell-tech has secured the rights to PC-based FPS Bet On Soldier (See UK Publisher Digital Jesters To Enter US Market, 9 March 2005). Hell-tech will release Bet On Soldier August 2005, throughout Greece, former Yugoslavia, and South Africa. For the Hell-tech website, click here. [31 May 2005] [top]

Online Games
Warhammer MMORPG; Prior Connection to VUG
Washington DC based Mythic Entertainment, established 1995, announced 18 May 2005 that is has secured the exclusive worldwide rights to create massively multiplayer online games for PC and console set in the fantasy world of Warhammer. The attraction of the Warhammer world generally, and success of Warhammer:Dawn of War released September 2004, bodes well for an online Warhammer world game. Mythic says the first game based upon the dark, medieval world of Warhammer will be released on PC in 2007. It shouldn't be overlooked that Vivendi Universal Games, which recently confirmed a turnaround in it's game business due to the online MMORPG World of Warcraft, has a prior relationship with Mythic, as distributors of Mythic online game Dark Age of Camelot. For the Mythic Warhammer site, click the link here. [30 May 2005] [top]

Industry
Ubisoft at War With Electronic Arts
Ubisoft Chair and Chief Executive Yves Guillemot, has categorised Electronic Arts purchase of about 20 percent of Ubisoft, bought December 2004, as hostile reported Reuters.com Friday last week, but would "not rule out being acquired by larger U.S. rival Electronic Arts if offered a high enough price". Yves Guillemot founded Ubisoft in 1986 with his four brothers, and hold 17.5% of the company. BBC News has an article on the company today, suggesting the company has been fighting Electronic Arts since the equity stake was purchased, "We prefer by far to remain independent as we will be able to double our value in the next two years as we will double our effort" BBC reports Guillemot as stating. Ubisoft is suggesting investors should hold onto their shares due to the growing revenues and profits rather than sell to EA. For the Reuters.com article click the link here, for the BBC article click the link here. [30 May 2005] [top]

Industry
Xbox360/PS3: Marginalising Games
The current Gamerdad.com LongShot column takes a look at E3 this week with some interesting comments. The columnist, an avid gamer, recently chose only the mainstream press as his sole source of E3 Expo news, and has now caught up and reviewed the major announcements from the event commenting "My absolute biggest observation, now having gone through all that's coming out this fall, is that I still think a lot of companies are making a huge mistake by not pouring games into the current consoles in time for Christmas. I honestly think Nintendo will clean up with Zelda..." and " The PS3 and Xbox 360 are marginalizing games even more as we get to a point where games are more expensive to produce than ever before. That seems so wrong to me as a gamer but also looks like a business plan that squeezes even more game makers out of this business because the companies making the hardware are less committed to games as their primary business." For the column, click the link here. [30 May 2005] [top]

Government
Illinois Banning Certain Game Sales; Developers Hit Battle Stations
In the US, the Illinois parliament has voted to ban the sale and rental of violent video games to those under 18 years (Illinois, US: Update: Proposed Law to Ban Certain Computer Game Sales, 9 April 2005) with the bill now with the Govenor for signing into law. For the Govenor's press release click the link here. For a brief item on the bill in the Seattle Times, which mentions "a federal judge last summer struck down a Washington state ban as a violation of free speech", click here. In related news, in the last week the International Game Developers Association has issued a call for action for Californian members to "to contact their local Assemblymember to express opposition to anti-game bill AB 450" (Update: Californian Bill to Ban Certain Computer Game Sales, 20 April 2005). The IGDA state "This legislation would treat video games differently from any other form of media, criminalizing the sale or rental of video games to minors that contain vaguely defined "violent" material and would require retailers to place "custom" warning labels on any games containing such content." For the IGDA call for action, click here. [29 May 2005] [top]

Development
Industry Veteran Joins Pandemic Studios
Innovative Australian and New Zealand game dev site Sumea.com.au reports that co-creator of 1990's game Halloween Harry and of several others, John Passfield, has joined Pandemic in Brisbane as Creative Director. Passfield recently left Krome Studios, which he co-founded in 1999. [27 May 2005] [top]

Consoles
PS3 Could Launch With PS2 Pricing
GameShout.com reports "new information appears that Sony would launch the Sony PS3 at the same price point it launched the Sony PS2... This would mean a price around [US] $370". For the brief article, which suggests an international launch for PS3 as well, click the link here. [27 May 2005] [top]

Industry
Brief: Nintendo Results Released
Nintendo has reported "profits rose in the year to 31 March with net income doubling to 87.42bn yen (US$810m)" reports the BBC, although warning "earnings this year will suffer amid strong competition." The article reports "according to analyst firm Jupiter Research, Sony's PlayStation 2 is market leader in the US with 43% of the console market. Microsoft's Xbox is in second place with 19%, and Nintendo's GameCube has 14% of the market." For the article, click the link here. [27 May 2005] [top]

Industry
Overseas Hires for Australian Game Studio
GamesIndustry.biz has a job advertisement titled "Project Manager Australia - Exclusive" and stating "this is the Australian studio of a major company who develop, publish, and distribute interactive entertainment software. The studio was founded in 2003 and have grown to 50+ staff in that time. They are currently working on a high profile project for all three major consoles with pre-production just stating on another title. They are looking to expand to 70 people in the next year." For the ad, click the link here. [27 May 2005] [top]

Industry
Game Developer Buys Part of Film Company
Newly formed Foundation 9 Entertainment, the largest independent games developer in North America, has taken an equity interest in Circle of Confusion, a New York and Los Angeles-based feature film management and production company established in 1990. Circle of Confusion specializes in "genre" material, and has top names from science fiction to horror to comics on their books; including the Wachowskis (The Matrix Trilogy), writers Gregg Chabot & Kevin Pererka (Reign of Fire), and comic creator and screenwriter Brian Michael Bendis (Powers, Jinx). Foundation 9 Entertainment has studios in San Francisco Bay Area, Vancouver, Boston, Los Angeles, Newport Beach, Eugene, and Honolulu, and brands Backbone Entertainment, The Collective, Pipeworks, ImaginEngine, and Digital Eclipse. For the Foundation 9 Entertainment website, click the link here. [27 May 2005] [top]

Industry
Update: US Actor Unions, Game Industry Negotiations Break
Reuters.com reports that US actor unions and US game publishers have broken off their negotiations, with the existing agreement set to expire next week (see Update: US Actor Unions and Video Game Industry Negotiations). The two groups are at a stand off over residual payments; the publishers offering better health benefits and a 35% increase in pay but no residuals, while the Unions want a residual. An actors strike may result however the publishers reportedly said "they would not only weather a strike but make it a point to use non-union actors in the near- and long-term." For the article, click the link here. [26 May 2005] [top]

Development
Sony PS3 Development Tools Forming
Although the Sony Playstation 3 Tools and Middleware Program appears yet to have started, Nasdaq listed Autodesk Inc has been quick to announce 3ds Max Software will support the program, while Epic Games was even quicker, announcing just after the E3 PS3 press release that it intends to offer its Unreal Engine 3 technology and tools under the program. Incidently, Epic Games' engine will be used in one of the first Namco Hometek Inc releases planned for the Xbox 360, Frame City Killer. For the Epic Games website, click the link here. For the Autodesk website, click here. [26 May 2005] [top]

Development
Denmark Company Chosen as Xbox360 Gamepad Dev Partner
RTX Telecom of Noerresundby Denmark, has announced it is a development partner for the wireless interface to the Xbox 360 game pad. The wireless interface solution has been defined by Microsoft and will be optimized by Microsoft and RTX; RTX providing some hardware development tools and supply of mass production test equipment. For the RTX Telecom website, click the link here. [26 May 2005] [top]

Industry
Activision Buys Quebec Studio Beenox
Nasdaq listed Activision Inc has bought Quebec based developer Beenox Inc, establishing a development foothold in the province. Beenox has 32 staff. Activision states the province is "recognized as one of the fastest growing development talent pools in North America". Activision has worked with Beenox since 2003; for Shrek 2, Tony Hawk's Underground 2, and the upcoming release, Fantastic Four. Activision indicates that Beenox's capability in platform conversion technologies, allowing for simultaneous multiplatform game development, was a factor in the purchase. Beenox's management team and key employees have signed long-term employment contracts with Activision and the studio will continue to be based in Quebec City, Canada. For the studio's website, click the link here. [26 May 2005] [top]

Industry
Infinite Gameplay Sponsors Canberra Games Festival
Infinite Gameplay, which was established in 1 June 2004 and launched online 18 April 05, proves the versatility of internet based businesses. Husband and wife team David and Sarah Tracy say they built the business from the ground up. They wanted to develop a business that allowed them spend more time with their children, and haven't looked back, with Infinite Gameplay now sponsoring the Canberra Games Festival. The team, which provides an online and mail order game rental service, says the company has grown to service members all over Australia and there is a strong possibility of establishing offices in each of Australia's main cities. Infinite Gameplay is also looking a putting an affiliate company in New Zealand by the end of the year. To visit their website, click here. [25 May 2005] [top]

Online Events
IBM Online Game Virtual Conferences
IBM has announced a quarterly series of on demand video game conferences, the first to be held 1 June 2005 (2:30 pm to 5:30 pm GMT). Game developers, manufacturers, and worldwide industry specialists, will be able to discuss issues affecting online game roll outs. The conferences appear to be pan-European events. The first conference will include NCSoft, ArenaNet, and Sony Online Entertainment. The conferences will be made available afterwards online. Check out the IBM website here. [25 May 2005] [top]

Events
Update: Game Writing Workshop, Adelaide, 28-29 May
The Australian Writers Guild Game Writing Workshop "WRITING FOR GAMES an introduction to writing for interactive games," is on this weekend, with informal drinks to launch the event to be held Friday night. The Guild has Pat Mac and Alex James, freelance games writers, and Robin Potanin from Ratbag speaking, together with Christine Sweeney and Kathy Mueller. The organisers report a pretty good turn out so far although they have said they will take registrations on the first morning of the workshop as well, see www.awg.com.au or better yet email sa@awg.com.au. [24 May 2005] [top]

International Retail
US Electronics Boutique to buy Spain's Jump
US based Electronics Boutique has announced it has entered a definitive agreement to buy Spain's Jump Ordenadores S.L.U., which should be settled Q2 2006. EB states Jump provides entry for EB into the Spanish marketplace. Jump operates from Valencia, Spain, and has 141 stores selling computers and digital equipment located primarily in central business districts throughout several Spanish provinces. EB plans to add video game products over the next several months. EB state that Spain is the fourth largest video game market in Europe. For the press release, click the link here. For previous news see Game Retailing Shaken Up. [24 May 2005] [top]

Industry
Canada's Video Game Booty
Canada.com Financial Post has a huge article on the Canadian game industry, titled " No longer just a game - 300 studios, 5,000 employees and growing". The article focusses on why the game industry, and Canada's part in it, is highly sustainable, with one of the founders of Bioware, Dr. Zeschuk, reportedly saying Canada's edge... is due to a glut of talented people. "The infrastructure here is really set up for technical development. There's a really well-educated, quality workforce". For the article, click here. [23 May 2005] [top]

Industry
Renewed Interest in Movie Based Games
In the article "Older motion pictures getting another run as video-game settings", the LA Times (as reproduced in the Fortwayne Journal Gazette) reviews the current state of film based game products with a nice summary of upcoming titles, and historical perspective. The article states "Studios often license titles to outside companies, which can complicate quality control. To bolster the caliber of its offerings, Warner Bros. instituted a quality standard in April 2004 - the only one in the industry, studio executives say. An independent third party is brought in to assess the video game, and if a certain measure isn't achieved, the developer pays the studio higher royalties." For the article, click here. [23 May 2005] [top]

Online
Update: Chinese Online Game Market
Marketwatch.com reports that online game operator The9 Ltd "is expected to give market watchers an update on the progress of its World of Warcraft online game trial when it announces first quarter 2005 earnings on Wednesday." Blizzard Entertainment and The9 Ltd announced last week that they had "500,000 concurrent users on World of Warcraft during the first two weeks of the open trial" according to Marketwatch.com. For the investor focussed article, click here. [23 May 2005] [top]

Event
Convergence Jam 2005, 30 May 2005
International Production Services and lab.3000 present Convergence Jam, an innovative converging media laboratory to be held 30 and 31 May at RMIT University, Melbourne. The event is a huge creative workshop aiming to bring games developers, filmmakers, animators, digital media practitioners and new media artists together in teams, to explore creative concepts for different media. International guests include Keith Clarkson and Patrick Crowe, Canadian International award winning producers, of Xenophile Media, and the event will feature a welcoming address by Robbie Stamp, Executive Producer of The Hitchhikers Guide to the Galaxy. For times and registration details visit www.convergencejam.com; ticket prices: full price ticket - $125, members of (AIMIA, SPAA, SSAV and GDAA) - $110, freelancers (or companies with less than 3 staff) - $95, and Students - $55. [20 May 2005] [top]

Development
John Woo Directs, Chow Yun-Fat Stars, Midway Makes
Midway Games has released details of a game using the likeness of action star Chow Yun-Fat, and the film direction talents of John Woo. It appears Chow Yun-Fat himself is acting out character movements for the game with direction provided by John Woo, in a collaboration between Midway and John Woo's Tiger Entertainment company. The game, called Stranglehold, is currently in development for next generation consoles at Midway's Chicago studio. For the Midway details, click here. [20 May 2005] [top]

Development
Namco Joins JoWood and Perception for SG-1
Stargate website Gateworld.com reports that "Namco Hometek Inc will publish Stargate SG-1: The Alliance in North America, Namco and co-publisher JoWood Productions Software AG announced today....Namco is one of the game industry's leading publishers and distributors, and has committed more than $2 million U.S. in marketing funds for the video game." For the article, click the link here. For a picture of the Stargate at E3 Expo 2005 (JoWood's booth) click here. The October 2004 Game Developers' Association of Australia newsletter had a story on the game, reporting "Stargate SG-1 is a property owned by MGM Interactive, which unusually for a developer, Perception licenced directly. Perception's Ben Lenzo comments "we approached MGM about licensing the Stargate series. After some serious technical and financial due diligence on Perception we were able to negotiate a deal with them. We then went around to a number of publishers with the license in hand and spoke to them about what we could do. Some publishers wanted to...". For the full story get the newsletter here and why not subscribe to it at the same time. [20 May 2005] [top]

Industry
Vivendi Confirms World of Warcraft Is Big Bucks
Vivendi Universal Games has confirmed first quarter earnings; riding on the back of World of Warcraft, Vivendi has turned around its operations. Revenue's for the game business for the quarter were 113 million Euros, compared to 77 million Euros for the same quarter last year, with earnings of 11 million Euros for the quarter compared to a loss of 48 million Euros for the same quarter last year. Vivendi Universal Games says the improvement "reflects combined actions taken in order to restore profitability: a significant increase in net sales (+47% when compared to 2004) due to World of Warcraft, a favourable shift in ongoing business composition more heavily weighted on the high margin World of Warcraft subscription business model and significantly lower fixed operating expenses resulting from the global turnaround plan." For the results, click here. [20 May 2005] [top]

Events
Free Play 2005: Independent Game Developers Conference
The second annual independent game developer conference, known as Free Play, will be held 15-17 July at ACMI, Federation Square, Flinders Street Melbourne, Australia. Catering for independent and DIY game developers, game modders and mappers, and a range of independent creators, the conference builds on the excitement generated with Free Play 2004 held May last year. creatively frustrated professionals, game development students and digital artists from every state in Australia. Its aim is to bring together these communities in a forum that is financially reasonable, with a programme developed by the communities themselves. Tickets can be purchased from Tuesday 14 June 2005 through the ACMI Box Office and online www.acmi.net.au. Prices are: $50 for a 3 day pass (full), $35 for a 3 day pass (conc), $20 for a single day pass (full) & $15 for a single day pass (conc). The conference will also provide the opportunity to demo games. Gamers can also volunteer by contacting the organisers at Gamers@nextwave.org.au. For the website, click on the link here. [20 May 2005] [top]

Image taken at Free Play 2004

Industry
Six Ways to Grow the Game Industry
President of the American Entertainment Software Association, Doug Lowenstein, believes the game industry can certainly broaden its audience base, and in comparing the game industry to the film and TV industries, comments the game industry needs "mass-market appeal at mass-market prices" according to E3insider.com. Lowenstein also points to the industry needing to become more approachable to female gamers, in order to "create a gender-neutral, inclusive community." For the article, which outlines six ways the industry can grow, click on the link here. [19 May 2005] [top]

DiStreams' Game xStream Service to Power 'Prey'
Digital Interactive Streams Inc (or DiStreams) has announced that its Game xStream service will power the online distribution of developer 3D Realms' upcoming game Prey. Game xStream is promoted as using dynamic streaming, allowing gamers to start playing games within minutes of pressing the "Buy" button, as the game continues to download behind the action until finished. 3D Realms CEO, Scott Miller, states "gamers will be able to pre-order and pre-load Prey onto their hard drives, ready for instant activation and play upon the official release date... or, after the official release, players will be able to buy the game and begin playing in minutes, as if the full game was already downloaded." Miller adds "this is what sets Game xStream apart from anything else the industry has seen." For the 3D Realms website, click the link here. [19 May 2005] [top]

Government
Isle of Man Talking it up at E3
The oldest uninterrupted legislature in the world says it is "eager to be represented at E3." The Isle of Man, a self-governing dependent territory of the British Crown, with a parliament founded by the Vikings over 1,000 years ago, is also a hot-bed of technology and business reforms. The Isle of Man government says more than $90 million has been invested in the Island's telecommunications infrastructure over the past five years, evidence by having Europe's first Super Fast 3G network, two self healing fiber rings connecting the Isle of Man to both the UK and Ireland, and 100 percent broadband coverage with free ADSL and ISDN connections for businesses and individuals. At E3, Isle of Man representatives are looking to promote the island's technology industry and detail tax initiatives as well as grants offered to help companies grow their business on the island. For instance, the Isle of Man is abolishing its general corporate tax rate, effective April 2006, and currently provides generous grant packages of up to 40% to help offset the cost incurred by technology companies moving, and setting up operations on the island. For more information see their website, by clicking the link here. [19 May 2005] [top]

Industry
Update: Turner and AOL Team Up for Gametap
Turner Broadcasting System Inc and America Online Inc have announced a 3 year deal to team up on the Turner GameTap.com service (see GameTap to Exploit Game Back Catalogues). They will integrate the AOL Instant Messenger and ICQ instant messaging services to GameTap. AOL potentially brings more than 46 million Americans using AOL messaging to GameTap and the deal has the potential to shut out competing messaging systems. GameTap has organised nearly 1,000 games from 17 publishers, with the launch to provide access to a first set of 300 games, providing subscribers "all-you-can-play" gaming accessible from up to two household computers. Click here for the website link. [19 May 2005] [top]

Industry
Update: US Actor Unions and Video Game Industry Negotiations
It appears the US actor unions negotiation talks with US game publishers (see US Actor Unions Raise Stakes in Video Game Industry Negotiations) have stalled, with the unions now consulting their respective boards. The unions are the Screen Actors Guild and the American Federation of Television and Radio Artists. The negotiations appear to have stalled over the issue of residual payments for game sales; the publishers do not want to provide these, only offering up-front payments. Reuters.com reports the lawyer for the publishers stated "It is not that we don't value their (actors') professional talent ... (but) we do not value it to the extent of giving them a lifetime income stream from the product." For the article, click here. [18 May 2005] [top]

Consoles
Nintendo Console: Code-Named Revolution
Nintendo has released details of its next console, code-named Revolution, to be released in 2006. Not only will the Revolution will be backwards compatible with GameCube games, it will have download access to 20 years worth of "fan-favorite titles originally released for Nintendo 64, the Super Nintendo Entertainment System (SNES) and even the Nintendo Entertainment System (NES)." It will also feature Nintendo Wi-Fi for linking systems, have a stand to allow display of the device vertically or horizontally, and an additional and attachable DVD player. For the press release, click here. [18 May 2005] [top]

Nintendo Revolution - to be released 2006

Handhelds
Nintendo Announce Game Boy Micro
Nintendo has announced a new, sleeker, version of the Game Boy Advance to be released Q3 2005 called the Game Boy Micro; "Nintendo takes aim at the pocket of your tightest jeans with the tiny Game Boy Micro system, quite simply the smallest and sleekest Game Boy product that Nintendo has ever created." Nintendo says it weighs about 80 paperclips, and measures 4 inches wide, 2 inches tall and 0.7 inches deep. Inside, it is the same as a GBA, plays all the same games and so on. It features removable face plates, with an adjustable (brightness) screen. For the press release, click here. [18 May 2005] [top]

Nintendo Game Boy Micro - due Q3 2005

Consoles
Xbox 360 To Be Backwards Compatible With Top Selling Games
The Microsoft webcast of their E3Expo Xbox 360 press conference is now online (see links bottom left of the Xbox website, link through here). In the press conference they announce that the Xbox 360 will be backwards compatible with top selling games (whatever that means), that they will launch the console in 3 regions simultaneously (North America, Europe and Japan), and that Dead or Alive 4 will be exclusive to Xbox 360. They also had representatives from Electronic Arts and Japanese developer Square Enix on stage in support of Xbox 360 game development and initiatives, with EA announcing they wanted to be able to support the launch of the Xbox 360 by having at least 6 Xbox 360 games at retail, and Square Enix announcing Final Fantasy XI online will be accessible through Xbox 360 and Xbox Live. The Xbox 360 team outlined that 160 games were in development. [17 May 2005] [top]

Consoles
PS3 Specifications Released
Bigkid.com.au has a useful overview of the Xbox 360 compared to the PS3. The new convex PS3 design and specifications make for interesting reading, with backwards compatibility standard, and up to seven wireless controllers at a time. For the report, click here. [17 May 2005] [top]

Sony PS3 (left) and Xbox 360

Developers
Q&A: Tom Crago - Anaka Short Film
Game developer Tantalus Interactive has launched a short animated film called Anaka, in a novel way to show off their in-house IP creation. See our Q&A, left hand column, with CEO Tom Crago about the short film. By Tim Richards. [17 May 2005] [top]

Peripherals
Controllers and Direct to TV Classic Game Systems
Radica Games Limited, a Nasdaq listed company headquartered in Hong Kong, has released details of products under their brands Play TV and Gamester as part of their E3 Expo promotions. Some of the controllers are interesting, allowing players to invert sticks and in one case physically change the set up; excellent for those who don't like how game developers have set up the controller options. The classic game systems continue to reflect the industry trend to revive old games. We have summarised their product promo below and included the indicative prices in US dollars. Some are on the market, some soon to be. [17 May 2005] [top]

Radica Games Limited Play TV Brand E3 Line Up (Below)		Radica Games Limited Gamester Brand E3 Line Up (Below)
OUTRUN 2019: Replicates the original racing game with a handheld wheel. US $29.99 Out Q3 2005.		WIRELESS XBL: Full-function wireless Xbox controller (2.4 GHz); Xbox Live communicator built-in; includes headset; adjustable tension stick. US $69.99 Out June 2005.
MENACER: Light gun and six games: Pest Control, Space Station Defender, Whack Ball, Front Line, Rockman's Zone and Ready, Aim Tomatoes. Stars SEGA characters ToeJam & Earl. US $29.99. Out Q3 2005.		PS2 PHOENIX PLUS: PS2 gamepad; switch to invert right thumbstick; tension dial allowing players to adjust the tension of the stick. US $14.99 Out June 2005
SEGA GENESIS STREET FIGHTER II SPECIAL CHAMPIONS EDITION: 2 six-button Sega Genesis controllers; original Street Fighter characters & grand masters. Bonus game, Ghouls and Ghosts. US $29.99 Out Soon.		XBOX PHOENIX PLUS: Xbox gamepad; switch to invert right thumbstick; tension dial allowing players to adjust the tension of the stick; 3 color schemes. US $24.99 Out June 2005.
SEGA GENESIS VOLUME 2: Billed as an official Sega Genesis multi-game unit which replicates in detail six classic Genesis games includes Sonic 2, Ecco the Dolphin, and Alex Kid & the Enchanted Castle. US $29.99 Out now.		RACE PAC: Wheel/seat combination that folds up for easy storage, adjustable frame, works with Xbox and PS2. US $99.99 Out Now.
Websites: Gamester Radica		PHOENIX REVOLUTION: Gamers can physically rearrange the setup of the pad anytime; switch the left and right analog sticks and relocate the Dpad. Lefties can switch the entire setup around. Works with all PS2 games. US $24.99 Out Now.

Handhelds
PSP Media Management Kit From UK's Fire International
UK Company Fire International has announced the release of a movie conversion, media management, and game enchancement kit for the Sony PSP. The kit, which consists of Xploder X Tunes PC software and a USB cable console, supports several movie file formats, the proprietary PSP save format (.gsp), and online updates. Interestingly, the online updates will include saves for new release games so players can get ahead instantly. PSP Xploder X Tunes will be available at the end of Q2 2005 and will cost 19.99 UK pounds. For the website, click here. [17 May 2005] [top]

Handhelds
Atari Arcade Classics for N-Gage
Classic Atari games are being packaged for the Nokia N-Gage, to be released in September 2005 (Atari Masterpieces Volume 1) and December 2005 (Volume 2). Volume 1 includes Asteroids, Battlezone, Black Widow, Millipede, Missile Command, Red Baron, Lunar Launcher, and Super Breakout. The all important high-scores will be able to be uploaded to N-Gage Arena for all players to view. A demo is being shown at E3Expo this week. For the press release click here. [17 May 2005] [top]

Industry
Yahoo! Games Enters PC to Mobile Game Market
Internet company Yahoo! and US mobile carrier Sprint have announced an agreement to offer Yahoo! Games' multiplayer PC-to-mobile games to customers in Sprint's Game Lobby. The first game is Yahoo! Poker (incorporating personalization and community features, such as Yahoo! Messenger and Yahoo! Avatars), which is a feature of Yahoo! Games presence at E3Expo this year. From mid-June 2005 Sprint PCS Vision Phone owners will be able to play "against thousands of people playing Yahoo! Poker on their PCs at any time, as well as mobile-to-mobile and PC-to-PC game play", although only ten players are allowed in any one game at a time. Sprint's Game Lobby has more than 500,000 members according to the company, and is a "virtual mobile community for gamers to meet, recommend games and challenge each other...accessed from both the fixed Internet and the mobile web" and powered by M7 Networks. [17 May 2005] [top]

Industry
Does the Game Industry Misunderstand Investors?
The LA Business Journal takes a look at recent US publishing company revenue announcements, declaring publishers are "caught between seasons." By encouraging investors to "look at their business as entertainment," the game industry may be misunderstanding just how investors judge the industry. Blockbusters tied into peak buying and holiday times may actually be overrated, with investors prefering consistent returns over the year. Further, comparisons between the film business and the game business can only go so far; "while the marketing challenges are similar to the movie industry, video game makers must still cope with high development costs and rapid change that epitomize their technology roots." For the article, click here. [16 May 2005] [top]

Consoles
Xbox 360 Information from Microsoft
Microsoft promises to webcast the E3Expo Xbox 360 press conference today [Monday US time] (see ad here) and has published console specifications and peripheral specifications on the Xbox.com website. [16 May 2005] [top]

Industry
Update: Wicked Witch Studio
Game4x.com has posted a lengthy interview with Wicked Witch, a Melbourne game studio. For the article, click here. [16 May 2005] [top]

Society
'Game Art as Art' Movement
As a Hollywood gallery starts to wind down a month long exhibition of old skool game inspired artwork, the "Into the Pixel" exhibition of game art is about to get underway at the Los Angeles Convention Center, reports Reuters. The gallery exhibition seeks to prove game art is art; "The opening of the show called "I Am 8 Bit" at Gallery Nineteen Eighty Eight in Hollywood drew the city's young and beautiful to upscale Melrose Avenue on a breezy spring night with a nostalgic look at the good, old days of gaming" reports Reuters. For the Reuters article, click here. The "Into the Pixel" art exhibition "is an exploration and celebration of the art of the video game, curated by interactive entertainment industry veterans and experts from the art establishment" states the organisers. Into the Pixel will display up to 16 pieces of representative game art, as chosen by a panel of jurors. In its second year, Into the Pixel 2005 will be held 18-20 May 2005 in the Concourse Lobby of the Los Angeles Convention Center, during the E3 Expo. For the I Am 8 Bit website, click here. For the Into the Pixel website, click here. [16 May 2005] [top]

Console
Xbox 360 Revealed
Microsoft's second take on the XBox, the Xbox 360 (previously known as Xenon), has been shown on MTV. For the MTV news page, click here. For more information on the new console, expected to be commercially released by year's end, see here (Bloomberg), and to see what the balance of opinion of BBC readers think, click here. [13 May 2005] [top]

Gamers
Q&A: South East United Clan
SEUCLAN.com is a Pro Evolution Soccer 4/Winning Eleven 8 game players group with Australian and Malaysian leagues. See our Q&A, left hand column, with co-organiser Lee Lister about the game group. By Tim Richards. [13 May 2005] [top]

Government
Scottish Digital Media and Creative Industries Worth 5 Billion Pounds Annually
Scottish Development International has released a fact sheet on the Scottish creative industry, as part of its E3 Expo promotions. The SDI wesbite states the organisation is 100% government funded and is jointly operated by the Scottish government and the government's main economic development agency, Scottish Enterprise. SDI is a key part of Scotland's international economic development strategy.

The Fact Sheet notes:
* The Digital Media and Creative Industries in Scotland are estimated to be worth annual sales of 5 billion pounds, providing more than 100,000 jobs and accounting for 4% of Scottish GDP;
* In Scotland, there is support for creative industries sub-sectors including digital media, games, TV, music, film and publishing; One of Scotland�fs three Intermediate Technology Institutes (ITIs) will serve the Digital Content and Communications Technology industries and will be based in Glasgow;
* The industry provides around 6.7% of employment in Scotland - a higher proportion than any other part of the UK outside London and the South-east;
* Internationally creative industries have enjoyed consistent growth of around 10% in recent years and, in some areas such as digital content production, has witnessed averages of around 20%;
* It has been estimated that the value of global entertainment and media industries will increase from $831 billion in 2000 to $1.3 trillion in 2005, an annual compound growth rate of 7.2% (Pricewaterhousecoopers, 2001);
* Glasgow is home to Pacific Quay, a major physical infrastructure investment aimed at the digital media sector;
* Dundee is currently developing a new digital media park to support the growth of its vibrant games and digital media community;
* The Proof of Concept Fund has backed several creative industries related ventures - evidence that Scottish Universities are developing ideas which have commercial applications in this sector. This connects strongly with the ITI initiative.
For the SDI website, click here. [13 May 2005] [top]

E3Expo
Activision Value Publishing and Krome do Deal for TY 3
Activision, Inc. subsidiary Activision Value Publishing has signed a co-publishing agreement with Brisbane based Krome Studios, for the third installment of TY the Tasmanian Tiger. Currently in development at Krome Studios, the game will be available for the PS2, Xbox, gameCube, and GBA later this year. Dave Oxford, General Manager, Activision Value Publishing, Inc said "We are very excited about the new found partnership with Krome Studios.. The partnership between Activision Value, with its dedication to providing customers with great games, and Krome Studios, which produces award winning content, should result in great gains for both companies." More info on our E3Expo 2005 page, here. [13 May 2005] [top]

Industry
PS3 and Xbox2 Game Budgets to Make or Break Industry
The Age has published an article proposing that the Australian game industry is entering a turbulent period due to the increased resources demanded by game projects for the new PS3 and Xbox 2. In essence, the increased resource demands may not be able to be met by local development companies resulting in financial difficulty. However, if the demands on local studios were supported by easy access to capital, local studios could use this period to double in size. The article, entitled "Australian game industry 'under threat'", is available here. [13 May 2005] [top]

Industry
Representing Independent Developers
GameDaily.com has an interesting interview with the head of Interactive Studio Management Dan Rogers following the acquisition of BizDev by ISM. GameDaily comments that ISM "is now the world's largest representation agency for interactive entertainment clients." The interview also involves Denis Dyack of Silicon Knights. The interview focusses on independent developers and deal negotiation, whether it be for a game development or acquisition of the development studio; Rogers remarks "if you think about it, when a publisher acquires a developer, it is more like "consumption" than it is "acquisition". An acquisition is something permanent, like an automobile collector who buys automobiles and his collection keeps getting bigger over time. Developer acquisitions aren't like that. Historically, developers that have been acquired are simply consumed. Westwood Studios, for example, was acquired by EA in 1998 for 122 million dollars. Where are they now? There are parts of Westwood in EA LA, and there are other parts scattered throughout North America in other companies as well. Westwood was consumed." Click here for the article. [12 May 2005] [top]

E3Expo
King Kong to be Revealed at E3 Expo 2005
The game for New Zealand Filmmaker Peter Jackson's King Kong film will be shown off at the E3Expo, with French publisher Ubisoft announcing 40% of Ubisoft's booth space devoted to the game. For more info, click here. [11 May 2005] [top]

Industry
Midway Games Financial Quarter Ending 31 March 2005 Report
Midway Games Inc has announced results of operations for the three months ending 31 March 2005. Midway reports net revenue for the quarter was $13.8 million, down 31% as compared with $21.1 million for quarter ended 31 March 2004, with a net loss of $15.2 million; a greater loss than the $13.8 million reported for the same quarter last year. Midway President and CEO David F. Zucker said the loss was less than projected, and focussed on their strengthening product line stating "the recently executed publishing agreements with Warner Bros. Interactive Entertainment for animated film and Cartoon Network properties add high profile licensed content to our portfolio and provide a solid foundation from which to build our new family-friendly line of games." Outlook wise, Midway expects current quarter ending 30 June 2005 to show net revenue of $40 million and net loss of $25 million, and for the full year expects net revenue of $225 million (a 40% increase on last year) and net loss of $47 million (up from prior expectation of $38 million). Results can be found here (Midway pdf). [10 May 2005] [top]

Industry
First Quarter Results due for Midway; Atari Holding Back Full Year and Q4?
Midway Games Inc. are to release financial results for the three-month period ended March 31, 2005 after the close of the market on Monday, May 9, 2005. The results will be for the first quarter of the financial year, as they have calendar year financials. For their investor website, click here. Meanwhile, this time last year Atari had released their full year 2004 and last quarter financials, however there is little indication as yet when full year 2005 will be released. [9 May 2005] [top]

Society
USA: Live Concert for Game Music
Game music composers Tommy Tallarico and Jack Wall will present a game music concert tour featuring music from The Legend of Zelda, Super Mario Bros., and Halo, amongst others reports the Wham Gaming page of Canoe C News. Jack Wall reportedly said "this music represents a true art form. The success of this tour will demonstrate to the world that video game music can command the attention of gamers and non-gamers alike." For the article, click here. The first concert is 6th July 2005 at The Hollywood Bowl in LA. [9 May 2005] [top]

Industry
Activision Financial Year Ending 31 March 2005 Report
Activision has announced preliminary results for financial year ended 31 March 2005, and for the last quarter. Activision reports net revenue for the year was $1405.9 million, up 48% as compared with $947.7 million for year ended 31 March 2004, with net income up 78%; $138.3 million as compared with $77.7 million for the prior year. Activision's last quarter comparison saw net sales increase 25%; $203.9 million as compared with $162.9 million for the prior year. Further, net income for the quarter was down 46%; $3.6 million as compared with $6.7 million for the prior year. Activision Chair and CEO Robert Kotick focussed on its cash reserves of $841 million, its highest yearly net revenue ever, and its cashflow. Kotick highlighted the game industry now had "the largest installed base of video gaming platforms in the industry's history" adding and that Activision has the "strongest product release slate ever." Kotick commented "our lineup includes new versions of our top-selling franchises - Tony Hawk, Spider-Man, Shrek, Call of Duty, DOOM, X-Men, True Crime and Quake - as well as, Fantastic Four, Madagascar, The Movies and an original property from the development team behind the Tony Hawk series." Outlook wise, Activision expect 2006 financial year to show net revenue of $1.43 billion, a tiny bit higher than financial year 2005. Activision expect net revenue for the first quarter of the 2006 financial year to be around $200 million. Results can be found here. [7 May 2005] [top]

Industry
THQ Financial Year Ending 31 March 2005 Report
THQ has announced preliminary results for financial year ended 31 March 2005, and for the last quarter. THQ reports net sales for the year was $756.7 million, up 18% as compared with $640.8 million for year ended 31 March 2004, with net income up 75%; $62.8 million as compared with $35.8 million for the prior year. THQ's last quarter comparison saw net sales increase just under 40%; $171.9 million as compared with $123.1 million for the prior year. Further, net income for the quarter was up 87%; $10.1 million as compared with $5.4 million for the prior year. THQ President and CEO Brian Farrell appears to put their strong performance down to leveraging licenced properties with broad appeal to the children, teen, and young adult sectors while also targetting game development that will attract gamers who just like playing games; Farrell said "THQ's record growth in fiscal 2005 demonstrated our success in increasing sales of games based on our three core brands, Disney/Pixar, Nickelodeon and World Wrestling Entertainment, and also delivering strong performance from internally developed titles targeted to avid gamers, such as MX vs. ATV Unleashed, The Punisher and Warhammer 40,000: Dawn of War." Outlook wise, THQ expect 2006 financial year to show net sales of $750 million, about the same as financial year 2005. THQ expect net sales for the first quarter of the 2006 financial year to be around $135 to $140 million. Results can be found here. [7 May 2005] [top]

Events
E3Expo Warming Up
With more than a week to go before the largest game industry event in the world gets underway in LA, USA, we have added our E3Expo Information Page to keep up to date with what goes on. Check it out here. [4 May 2005] [top]

Industry
EA Financial Year Ending 31 March 2005
Electronic Arts has announced preliminary results for financial year ended 31 March 2005, and for the last quarter of that financial year. Amongst other key points, EA reports net revenue for the year was $3.129 billion, up 6% as compared with $2.957 billion for year ended 31 March 2004, however net income was down 12.6%; $504 million as compared with $577 million for the prior year. The results suggest EA had a tough last quarter, and although 31 titles went platinum (over 1 million units sold) in the financial year compared to 27 a year ago, net revenue was down 8% in the last quarter; $553 million as compared with $598 million for the prior year. Further, net income for the quarter was down 91%; $8 million as compared with $90 million for the prior year. Outlook wise, EA Chairman and CEO Larry Probst commented EA are focussed on "successfully navigating through the console transition" indicating they are prepared for the next console releases this year with a range of titles. EA's outlook statement provides they are looking for a 9-12% increase in net revenue for the following financial year, however in the quarter May to July 2005 they expect a drop in net revenue (net revenue is expected to be between $300 and $340 million - as compared with $432 million for the prior year). Results can be found here. [4 May 2005] [top]

Industry
Results Due for Activision, EA, and THQ
Given recent reports from market analysis companies that sales in the US video game market increased markedly for the first three months of 2005 (see US Game Industry: Q1 2005 [27 April 2005] below), results to be released soon by EA, Activision, and THQ are being anticipated with interest. Specifically given EA, in March, issued a profit warning. "EA spooked gaming investors, cautioning that sales of both old and new games fell short of expectations, compounded by shortages of Sony Corp.'s PlayStation 2 and Microsoft Corp.'s Xbox." reports Reuters.com. The profit warning had a flow on effect for the sector, affecting Take-Two Interactive, Activision, and THQ reports Reuters. Financial reports (quarterly and full year) are due from Electronic Arts today (Tuesday in USA), THQ tomorrow, and Activision Thursday. For the report click here. [3 May 2005] [top]

Consoles
News Show for PSP
Reuters.com has a report that the American ABC network will provide a news based show for the Sony PSP. For the article, click here. (For a quick look at 'unoffical' web browsing using the PSP, click here.) [3 May 2005] [top]

International Business
Valve and Vivendi Settle Legal Dispute
Game developer Valve and publisher Vivendi Universal Games have announced that they have come to an agreement on their long standing legal dispute. The dispute originated in 2002 with Valve suing Videndi in the US Federal court system. The parties have agreed that effective 31 August 2005, Vivendi will "cease distribution of retail packaged versions of Valve's games, including Half-LifeR, Half-Life 2, Counter-StrikeTM, Counter-Strike: Condition Zero and Counter-Strike". For the press release, click here. Valve has an online distribution system, called Steam, with which they used very successfully in the release of their much anticipated game Half-Life 2 late last year. While the game could be bought online direct from Steam or as a retail box published by Vivendi, even if a gamer bought the retail box version of the game, to get started they still had to register with Steam online. TheInquirer.com has noted that the settlement is the "death knell for of the entire software distribution network" due to Valve saying in effect, that although it is a game developer it no longer needs publishers. For the very brief TheInquirer.com comment, click here. Only last week Vivendi group announced that their March quarter 2005 revenue for the Vivendi Universal Games business increased by 47% compared to same quarter 2004 (see page five of their results pdf here). By Tim Richards. [2 May 2005] [top]

International Business
Bandai and Namco to Merge
Bloomberg Radio reports that Japanese companies Bandai and Namco have announced they will merge. For the article, click here. By Tim Richards. [2 May 2005] [top]

Industry
Start-ups Form From Game Studio Alumni
An article from the Register-Guard online explores the after effect of the 2001 closure of Dynamix on its surrounding area, Eugene, Oregon, USA. "The future for computer game development in Eugene looked bleak when Dynamix began laying off workers and eventually shut its Eugene studio in 2001" commences the article, "but several startups formed by Dynamix alumni have proven that the game is not over in Eugene." For the article, click here. One of the game businesses formed is GarageGames.com, devleopers of the Torque game engine, a popular independent game development engine. Other businesses other Buzz Monkey Software and Tesseraction Games. For the interesting article, click here. By Tim Richards. [2 May 2005] [top]

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