Warner Bros has signalled its intention of expanding more aggressively into the video games industry with the acquisition of TT Games, the UK publisher of the LEGO Star Wars series which has sold 12m copies around the world.
The deal, for an undisclosed sum, will give Time Warner’s Hollywood studio a stronger in-house capacity for developing game spin-offs of its film franchises, but will also allow it to create video games which are unrelated to its movies.
“We’re very serious about building this [games business],” said Kevin Tsujihara, president of Warner’s Home Entertainment Group, adding that TT would be the “cornerstone” of its games plans. “There will be a number of pieces of the puzzle. This is an important piece but it’s not the whole puzzle.”
The deal comes as media groups are becoming increasingly interested in the video games business, as one of the few sectors to have shown consistent growth through a period when the growth of the internet has disrupted other media business models.
The TT Games acquisition follows September’s announcement of a multibillion-dollar partnership to develop an entertainment hub in Abu Dhabi, which included the creation of a $500m fund for video game development.
The transaction will secure a multi-million pound windfall for Jon Burton, TT Group’s controlling shareholder, who founded the company as Traveller’s Tales 18 years ago in the era of the Commodore Amiga and Sega Mega Drive.
The value of TT Games, based in Knutsford in Cheshire, had been estimated by one local newspaper at about £80m, making Mr Burton’s stake worth more than £60m.
The company’s family-friendly positioning was one reason for Warner’s attraction to TT Games, Mr Tsujihara said.
“TT Games is the leading video game developer for young gamers and their families,” he said, making it “a great match with our brands”, which would benefit from Warner’s global infrastructure.
TT Games is already developing its first title for Warner Bros, a LEGO Batman game, based on its Batman film franchise. It also develops for other studios, however, including Walt Disney and LucasArts, maker of the Star Wars films.
Warner Bros Interactive Entertainment, the games division created in 2004, will maintain its license agreements with other games companies such as Electronic Arts and Eidos, the group said.
TT Games was created in 2005 through the merger of Traveller’s Tales, one of the largest independent game developers, and Giant Interactive Entertainment, a games publisher started by LEGO.
It has sold over 12m copies of its two Star Wars titles, “LEGO Stars Wars: The Videogame” - published in 2005 - and “LEGO Star Wars 2: The Original Trilogy”, released in September 2006.
“After 18 years in the video games industry, the opportunity to become a meaningful part of the world’s leading entertainment company is the fulfillment of a dream,” Mr Burton said.
Source: FT
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Friday, November 09, 2007
Atari: Hanging On By A Thread
Pretty soon, it's likely that we won't have Atari to kick around anymore.
The embattled videogame publisher, having already sold off most of its major game franchises and in danger of losing its flagship Dragon Ball titles, has filed a quarterly earnings report with the SEC that paints a bleak picture of a company on the rocks.
Reporting an $11.9 million quarterly loss, Atari said outright in the statement that the company has "substantial doubt about our ability to continue as a going concern."
A going concern is a company that will "continue to operate indefinitely, and will not go out of business and liquidate assets."
Atari notes that its only current line of credit is in real danger of being canceled by the lenders "if, as is likely, we fail to meet financial covenants."
Atari's hottest property right now is the fact that it produces games based on the Dragon Ball Z animated series, but it notes in the SEC report that license holder FUNimation is currently pursuing a breach of contract notice and is attempting to pull the games from Atari.
Atari's plans to save itself, such as they are, have been to sell off its internal studios* and divest itself of valuable properties like Stuntman, which it sold to THQ for $9 million last year.
But this can't go on forever, of course, if Atari plans to release any video games at all: " Further significant asset sales may not be practical if we are going to continue to engage in our current activities," reads the report.
Thus, the one concrete (if one can call it that) proposal that Atari offers by way of bettering itself is the following:
The "Atari" name (which we license) has been an important part of our branding strategy, and we believe it provides us with an important competitive advantage in dealing with video game developers and in distributing products. Further, our management has been working on a strategic plan to replace part of the revenues we lost in recent years by expanding into new emerging aspects of the video game industry, including casual games, on-line sites, and digital downloading. In addition, we are considering licensing the "Atari" name for use in products other than video games. However, our ability to do at least some of those things will require expansion and extension of our rights to use and sublicense others to use the "Atari" name. We have no agreements or understandings that assure us that we will be able to expand the purposes for which we can use the "Atari" name or extend the period during which we will be able to use it.
In other words, Atari realizes that its name could be much better used to sell casual games, toys, T-shirts, and electric cake mixers branded with the stylized Mount Fuji. But it isn't quite sure if it has the right to even do that, because they are, technically, licensing the Atari name from their majority stockholder company Infogrames.
Infogrames became owner of the Atari brand name (and the company's back catalog of legendary games like Pong, Asteroids and Centipede) for a song in 2001, when it acquired Hasbro Interactive for $95 million in Infogrames stock and $5 million in cash.
Infogrames' American subsidiary changed its name to Atari in 2003.
*That post made me laugh when I read it again.
Source: WIRED
The embattled videogame publisher, having already sold off most of its major game franchises and in danger of losing its flagship Dragon Ball titles, has filed a quarterly earnings report with the SEC that paints a bleak picture of a company on the rocks.
Reporting an $11.9 million quarterly loss, Atari said outright in the statement that the company has "substantial doubt about our ability to continue as a going concern."
A going concern is a company that will "continue to operate indefinitely, and will not go out of business and liquidate assets."
Atari notes that its only current line of credit is in real danger of being canceled by the lenders "if, as is likely, we fail to meet financial covenants."
Atari's hottest property right now is the fact that it produces games based on the Dragon Ball Z animated series, but it notes in the SEC report that license holder FUNimation is currently pursuing a breach of contract notice and is attempting to pull the games from Atari.
Atari's plans to save itself, such as they are, have been to sell off its internal studios* and divest itself of valuable properties like Stuntman, which it sold to THQ for $9 million last year.
But this can't go on forever, of course, if Atari plans to release any video games at all: " Further significant asset sales may not be practical if we are going to continue to engage in our current activities," reads the report.
Thus, the one concrete (if one can call it that) proposal that Atari offers by way of bettering itself is the following:
The "Atari" name (which we license) has been an important part of our branding strategy, and we believe it provides us with an important competitive advantage in dealing with video game developers and in distributing products. Further, our management has been working on a strategic plan to replace part of the revenues we lost in recent years by expanding into new emerging aspects of the video game industry, including casual games, on-line sites, and digital downloading. In addition, we are considering licensing the "Atari" name for use in products other than video games. However, our ability to do at least some of those things will require expansion and extension of our rights to use and sublicense others to use the "Atari" name. We have no agreements or understandings that assure us that we will be able to expand the purposes for which we can use the "Atari" name or extend the period during which we will be able to use it.
In other words, Atari realizes that its name could be much better used to sell casual games, toys, T-shirts, and electric cake mixers branded with the stylized Mount Fuji. But it isn't quite sure if it has the right to even do that, because they are, technically, licensing the Atari name from their majority stockholder company Infogrames.
Infogrames became owner of the Atari brand name (and the company's back catalog of legendary games like Pong, Asteroids and Centipede) for a song in 2001, when it acquired Hasbro Interactive for $95 million in Infogrames stock and $5 million in cash.
Infogrames' American subsidiary changed its name to Atari in 2003.
*That post made me laugh when I read it again.
Source: WIRED
Target - remove violent video games
A controversial video game has been removed from the shelves of Minneapolis-based Target Corporation stores.
"Manhunt 2" has already been banned from sale in the United Kingdom. For months, activists have been calling on retailers to ban its sale in the U.S.
"It is some of the most horrific, senselessly violent stuff you've ever seen," said James Steyer, CEO of Common Sense Media, a media watchdog group that has worked with retailers on making sure the videogame rating system is enforced.
The game tells the story of an inmate of an insane asylum who escaped. As government agents hunt the game's hero, he uses extreme violence, killing anyone who gets in his way.
Target issued a statement to WCCO-TV, writing, "All video games and computer software sold at Target currently carry ratings by the Entertainment Software Rating Board (ESRB) -- from early childhood through mature audiences."
The company said it took issue with a software fix put into place by Rockstar Games, the creator of "Manhunt 2." Rockstar also developed the controversial "Grand Theft Auto" games.
Initially, the game was given a restrictive "Adults Only" rating by the ESRB. Major retailers like Target and Wal-Mart do not sell stories with that rating.
The company went back to the board, after inserting software filters to hide the objectionable content. Within the past several days, hackers have been able to remove those filters, in editions of the game for PlayStation Portable. Games made for PlayStation 3 and Nintendo's Wii don't appear to be hackable.
"While 'Manhunt 2' was given a 'Mature' rating by the ERSB, we received additional information that players can potentially view previously filtered content by altering the game code. As a result, we have decided not to carry the game," explained Target Corporation.
"It's a very violent game, there's no question about it," said Matt Helgeson, senior editor of Minneapolis-based Game Informer Magazine. Helgeson said he played the game for approximately 15 hours, completing it, as part of his work reviewing the game for the magazine.
"It is not a game for kids, it is very much a game for adults," said Helgeson. "And any adult thinking about buying the game for their kids should really reconsider that."
However, Helgeson believes that much like adults can buy violent films rated "R," they should have the opportunity to buy violent video games rated "M."
"I would say there are probably ten movies I could walk in right now and buy in Target that are every bit as gory as 'Manhunt,' if not more," he said.
For now, Target is the only major U.S. retailer pulling the game from shelves. Richfield, Minn.-based Best Buy Corporation explained, "Best Buy offers a wide variety of game content to suit our broad spectrum of customers. ... 'Man Hunt 2' will be available for our customers to purchase. Best Buy recognizes the concerns regarding video games, which is why we've worked with the industry to develop and refine the ESRB rating system."
"Manhunt 2" has already been banned from sale in the United Kingdom. For months, activists have been calling on retailers to ban its sale in the U.S.
"It is some of the most horrific, senselessly violent stuff you've ever seen," said James Steyer, CEO of Common Sense Media, a media watchdog group that has worked with retailers on making sure the videogame rating system is enforced.
The game tells the story of an inmate of an insane asylum who escaped. As government agents hunt the game's hero, he uses extreme violence, killing anyone who gets in his way.
Target issued a statement to WCCO-TV, writing, "All video games and computer software sold at Target currently carry ratings by the Entertainment Software Rating Board (ESRB) -- from early childhood through mature audiences."
The company said it took issue with a software fix put into place by Rockstar Games, the creator of "Manhunt 2." Rockstar also developed the controversial "Grand Theft Auto" games.
Initially, the game was given a restrictive "Adults Only" rating by the ESRB. Major retailers like Target and Wal-Mart do not sell stories with that rating.
The company went back to the board, after inserting software filters to hide the objectionable content. Within the past several days, hackers have been able to remove those filters, in editions of the game for PlayStation Portable. Games made for PlayStation 3 and Nintendo's Wii don't appear to be hackable.
"While 'Manhunt 2' was given a 'Mature' rating by the ERSB, we received additional information that players can potentially view previously filtered content by altering the game code. As a result, we have decided not to carry the game," explained Target Corporation.
"It's a very violent game, there's no question about it," said Matt Helgeson, senior editor of Minneapolis-based Game Informer Magazine. Helgeson said he played the game for approximately 15 hours, completing it, as part of his work reviewing the game for the magazine.
"It is not a game for kids, it is very much a game for adults," said Helgeson. "And any adult thinking about buying the game for their kids should really reconsider that."
However, Helgeson believes that much like adults can buy violent films rated "R," they should have the opportunity to buy violent video games rated "M."
"I would say there are probably ten movies I could walk in right now and buy in Target that are every bit as gory as 'Manhunt,' if not more," he said.
For now, Target is the only major U.S. retailer pulling the game from shelves. Richfield, Minn.-based Best Buy Corporation explained, "Best Buy offers a wide variety of game content to suit our broad spectrum of customers. ... 'Man Hunt 2' will be available for our customers to purchase. Best Buy recognizes the concerns regarding video games, which is why we've worked with the industry to develop and refine the ESRB rating system."
Mario Galaxy sells 250k in first week
The long-awaited Wii title outsells most of the rest of the top ten
Super Mario Galaxy for the Nintendo Wii has rocketed into the Japanese software chart at number one, selling over a quarter of a million units in its first week on sale, according to the latest data from Media Create.
That represents a number that's almost equal to the rest of the top ten put together, despite Ace Combat 6 entering the chart at number two, and Final Fantasy Tactics A2 continuing to sell well.
The Xbox 360 flying action game sold 77,000 units, and was one of three titles in the top 30 for Microsoft's platform, otherwise dominated for the most part by DS, which accounted for over half of titles.
The full list is as follows:
1. Super Mario Galaxy (Wii)
2. Ace Combat 6: Fires of Liberation (360)
3. Final Fantasy Tactics A2 (DS)
4. Super Robot Wars Scramble Commander the 2nd (PS2)
5. DS Literature Collection (DS)
6. DS Nishimura Kyotarou Suspense Detective Series: Deadly Intent (DS)
7. Wii Sports (Wii)
8. Flash Focus: Vision Training in Minutes a Day (DS)
9. World Soccer Winning Eleven DS: Goal to Goal (DS)
10. Pokemon Mysterious Dungeon: Time Expedition Party (DS)
Super Mario Galaxy for the Nintendo Wii has rocketed into the Japanese software chart at number one, selling over a quarter of a million units in its first week on sale, according to the latest data from Media Create.
That represents a number that's almost equal to the rest of the top ten put together, despite Ace Combat 6 entering the chart at number two, and Final Fantasy Tactics A2 continuing to sell well.
The Xbox 360 flying action game sold 77,000 units, and was one of three titles in the top 30 for Microsoft's platform, otherwise dominated for the most part by DS, which accounted for over half of titles.
The full list is as follows:
1. Super Mario Galaxy (Wii)
2. Ace Combat 6: Fires of Liberation (360)
3. Final Fantasy Tactics A2 (DS)
4. Super Robot Wars Scramble Commander the 2nd (PS2)
5. DS Literature Collection (DS)
6. DS Nishimura Kyotarou Suspense Detective Series: Deadly Intent (DS)
7. Wii Sports (Wii)
8. Flash Focus: Vision Training in Minutes a Day (DS)
9. World Soccer Winning Eleven DS: Goal to Goal (DS)
10. Pokemon Mysterious Dungeon: Time Expedition Party (DS)
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