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Game Industry Highlights 2001 January 3 * As many as five thousand jobs may be created by Microsoft Corp.'s expected contract to build European market Xboxes at the Flextronics plant in Hungary. In real terms, expected Xbox production would rival the importance of the Audi engine and auto plant in the country. January 6 * Using the Consumer Electronics Show as a platform, Microsoft Corp. chairman Bill Gates presides over the first technology demo of the Xbox console. January 9 * The entertainment division of The Learning Company is renamed to Game Studios for all internal and external development. Offices remain in Novato. Gores Technology Group acquired the Learning Co. assets from Mattel in 2000. * Nvidia and Apple confirm that the GeForce2 MX will be standard equipment in new Power Mac G4 systems. Previously, 3D graphics add-ons for Power Macs were only available from ATI and 3dfx. January 12 * The British press reports that Sony Computer Entertainment is under such pressure to produce PlayStation 2s that quality control has been over looked. The Sun reported that 2,000 complaints were recorded about faulty PS2s on Christmas day. Problems included disc tray failures, power problems, discs not being read correctly and faulty game controllers. * In both units sold and revenue, Activision reports that Tony Hawk's Pro Skater 2 was the best-selling PlayStation game in 2000, based on NPD TRSTS data. However, four Pokemon titles and a computer game, The Sims, had higher sales then Tony Hawks in 2000. January 15 * Within three months, Sony Computer Entertainment pledges to double its existing production capacity of 1 million PS2 units. January 17 * Interactive entertainment industry software revenue in the U.S. declined five percent in 2000, according to the NPD Group. Despite years of consecutive sales growth, game software sales amounted to $5.66 billion in 2000. Despite the revenue drop, software unit sales were up one percent in 2000 to over 200 million in the U.S.. January 22 * Crash Bandicoot developer Naughty Dog is acquired by Sony Computer Entertainment of America and becomes a wholly-owned subsidiary. The developer's day-to-day operations will continue to be run by the existing management team, under the Naughty Dog brand name. Also acquired is Red Zone Interactive, which created NFL GameDay titles for the 989 Sports brand. January 23 * The Nihon Keizai newspaper reports that Sega Enterprises will scrap the Dreamcast console in March to focus on software development for other platforms such as the PlayStation 2, GameCube and Xbox. The report said Sega will no longer accept new orders for Dreamcast, instead only assembling units from parts in inventory. Sega denies the report, but says in a statement that it will make some changes in production, sales and distribution of the system. * Sega of America issues a statement, "That the company globally reaffirms its commitment to Dreamcast." * Ziff Davis Publishing and CNET Networks reach an agreement to release 11 ZD magazines and editorial content from a five-year online content licensing contract signed when CNET purchased ZD Net. The new arrangement includes such game publications as Electronic Gaming Monthly and Computer Gaming World. Starting March 1, both outlets will share online rights to the content for one year. The non-exclusive license agreement will then terminate on March 1, 2002. January 24 * Sega Enterprises in Tokyo acknowledging that the gamemaker may cease Dreamcast production. "We are considering restructuring Dreamcast hardware operations worldwide for the next business year and ending Dreamcast console production is one of the options." Sega shares rise 15 percent on the news. January 25 * Senator Joseph Lieberman vows to join with other senators such as Sam Brownback Herbert Kohl to draft a law punishing publishers of videogames, movies and music that market violent content to children. Lieberman accuses the entertainment industry of only half-hearted efforts to control false and misleading advertising aimed at minors. * Sony Computer Entertainment launches a new subsidiary to manage development and growth of PlayStation.com online site. PlayStation.com Inc. not only will supervise e-commerce operations, but will also develop SCEA's gateway to distributing electronic content over the Internet. January 29 * Infogrames Entertainment completes its $100 million acquisition of Hasbro Interactive, which includes a catalog of 250 titles, as well as licensing access to 600 Hasbro franchises. January 30 * A broad restructuring plan is announced by Sega Enterprises to turn the gamemaker into a platform-agnostic publisher, Sega Corp.. Effective Feb. 4, the Dreamcast price will drop to $99 in North America, and Sega of America will begin selling off inventory. Sega will cease production of Dreamcast units, but plans to ship 30 games for the system in 2001. * Securing year 2000 bragging rights is Electronic Arts. According to the NPD Group, in the U.S. EA held a 44 share on the PlayStation 2 console, an 18 share on the PlayStation, and a 21 share on PC. The market share data makes the publisher No. 1 in PS2 and PSX games. However, for the overall year 2000, Nintendo remains far and away the leading software publisher in the U.S. February 1 * Best Buy completes its acquisition of Musicland Stores. February 2 * Citing decreasing revenue, AOL Time Warner decides to shut down its 130 Warner Bros. Store retail locations. February 6 * Vivendi Universal pays $140 million for online games company Uproar. In addition to merging Uproar into Flipside.com, Vivendi pledges to invest another $80 million into the combined venture to better secure market share. * Game rights to the film hit The Matrix are awarded to Interplay Productions. At least one title is currently in development at Shiny Entertainment, which is distributed through Interplay. Expectations are the Shiny game will be released at the same time as the film's sequel. February 7 * Financially ailing Sega Corp. received an infusion of capital in the form of $739 million in Sega and CSK stock from its president Isao Okawa. The gift was seen in Japan as a form of financial atonement for the $504 million year-end net loss posted as a result of shutting down Sega's Dreamcast business. February 8 * German computer game publisher Blue Byte Software is acquired by Ubi Soft Entertainment. Blue Byte is best known for its Settlers strategy series. February 10 * The Kyodo News Service reports that Nintendo Co. Ltd. expects to take 3 million orders for its upcoming Game Boy Advance from Japanese distributors and direct retailer accounts. Unfortunately, the report says Nintendo executives will have trouble manufacturing more than 1 million units by the March 21 launch. February 12 * Hoping to provide a unique online subscriber game experience for EA.com, Electronic Arts unveils its atypical interactive mystery, Majestic. Players will interact with the game via email, voice mail, fax, or instant messenging. The game will launch online during the spring. * At the Milia conference in Cannes, France, Vivendi Universal chairman and CEO Jean-Marie Messier declared that the PC-centric world is dead. Messier predicted that set-top boxes that grow out of 128-bit game consoles will have "almost limitless capabilities," and will eclipse PCs as content delivery platform. February 13 * Nintendo of America announces that the North American launch date for the Game Boy Advance has been set: June 11. February 14 * To better penetrate the Japanese market, Microsoft Corp. signs agreements with Softbank Commerce Corp. and Happinet Corp. The Japanese firms will open up their distribution and wholesale networks to the Xbox when it arrives in Japan. February 26 * Blizzard Entertainment sues New Line Cinema in order to protect the Diablo name. Claiming it has its own Diablo movie plans, Blizzard is attempting to keep a New Line action movie from using the game's brand name. February 27 * Nvidia Corp. announces that is shipping GeForce3 chipsets to card manufacturers. PC and Macintosh add-in and OEM 3D graphics cards using the new chipset are expected to reach consumers in March. The GeForce3 uses the same core as the graphics processor employed in the upcoming Xbox. February 28 * Taking the fast track to building its subscriber list, EA.com purchases Pogo.com (formerly known as the Total Entertainment Network) for its 17 million registered parlor games users. March 5 * Five months previous when it was acquired by Gores Technology Group, Mattel's Interactive Division was losing $1.5 million a day. Subsequently renamed Game Studios, Gores says the division is now in the black and ready to make a profit in 2001. Gores promptly agrees to sell the division's entertainment holdings to Ubi Soft. * EA.com launches its first premium subscription service: EA Sports Service. For $4.99 a month, the service offers exclusive versions of its existing sports game franchises. NASCAR Web Racing, Tiger Woods PGA Tour, Web Golf and Knockout Kings Web Boxing. More titles are promised. * Vivendi Universal cuts 150 employees between its Flipside and Uproar staffs as redundant. March 6 * For the North American market, Nintendo of America sets the Game Boy Advance suggested list price at $99.95, and promises a slate of 15 launch titles. March 8 * The list of third-party developers confirmed for Xbox content grows to 24. March 12 * Electronic Arts and Nintendo of America drop their lawsuit against Yahoo. The publishers had sought to force the online portal to restrict sales of counterfeit videogame products via auctions and other user transactions. In a settlement, Yahoo agreed to prohibit the listing of counterfeit merchandise, as well as deploy new proprietary blocking technology pre-empt the sale of pirated video games on its network. March 14 * Placing its bets on Sony, Konami Co. Ltd. says it will spend about 70 percent of its development resources on games for PlayStation 2 and PS one consoles during the next year. March 21 * Japanese consumers snap up 650,000 Game Boy Advance units in one day. March 28 * After three years of attempting to unload its interest in Blockbuster Video, declining advertising revenues have made the retailer's solid revenue stream more attractive to Viacom. Sufficiently attractive for the entertainment conglomerate to cancel its plans to sell Blockbuster. April 12 * According to published sales data over 1 million Game Boy Advances have sold through in Japan in less than a month of availability. April 17 * The Game Boy Advance will get a marketing boost for its June 11 launch in the form of $100 million in advertising and promotion by Nintendo of America. Of that budget amount, $25 million will be spent prior to the North American launch, and $75 afterward. April 23 * Family members of victims slain at Columbine High School file a $5 billion lawsuit against Sony Computer Entertainment, Nintendo of America, Sega of America, id Software, AOL Time Warner, InfoGrames Entertainment and other companies. The families contend that the high school shooters were motivated by violent games. April 25 * In just five weeks, 1.6 million Game Boy Advance units are sold in Japan. April 26 * Senator Joseph Lieberman introduces a bill to expand the authority of the Federal Trade Commission to further regulate videogames and other entertainment media. The legislation includes fine up to $11,000 a day for firms that market adult material to minors. May 1 Posting losses in nine out of previous 10 quarters, Interplay Productions secures a $5 million loan from Microsoft Games in order to secure six-month Xbox exclusive for Shiny's The Matrix title. In addition, the game will include online features, more vehicles, weapons, music and perhaps a video of the movie that won't show up on the versions slated for other platforms. Interplay agreed to pay back the loan by June 30, 2003, through $20-per-unit royalties on the sale of The Matrix game, and four other games in North America. * The IDSA announced results of a Robert Damuth of Nathan Associates Inc. study that found the game industry generating 220,000 jobs, as well as $9 billion in wages and taxes during 2000. The industry also inspired $10.5 billion in related economic activity from the sale of game software and hardware. May 2 * As part of an ongoing effort to curtail its in-house publishing operations and cut back on expenses, Fox Interactive signs an exclusive three-agreement with Vivendi Universal for the latter to distribute all upcoming Fox titles. Aliens vs. Predator 2 for the PC is the first game to fall under the deal. May 3 * At 8.5 million units sold, the Age of Empires computer strategy game franchise has been one of the stars of Microsoft Games' publishing operation. To keep Ensemble Studios from distributing non-Age of Empires titles through other publishers, Microsoft acquires the Dallas-based studio. May 8 * After selling 7 million units in Japan since 1998, Konami Corp. says it is bringing Yu-Gi-Oh! videogame to North America by Christmas. May 14 * The Xbox is set for a Nov. 8 launch with a suggested list price of $299. Microsoft Games promises from between 15 and 20 first-party games at launch. May 15 Setting the stage for future broadband Internet access for PlayStation 2 owners in North America, Sony Computer Entertainment of America partners with AOL Time Warner. As part of the pact, America Online will create PS2-specific versions of its email, instant messaging, and chat utilities. In addition, Sony will have access to AOL's 29 million users. Sony says PS2 owners will have to plug in a hard drive, keyboard, LCD monitor display and mouse into their PS2s in order to access AOL. * Sega Corp.'s restructuring plan includes making 11 video-game software titles for Microsoft's Xbox, most are new versions of existing titles, plus a new title, Gun Valkyrie. For the GameCube, Sega has a minimum of 10 games slated, including arcade hit Super Monkey Ball, Virtua Striker 3 Ver.2002. for soccer fans, and an online RPG, Phantasy Star Online. May 21 * Nintendo of America waits until after the close of E3 to confirm that the GameCube will be priced at $199 in North America, and will launch with six $49.95 first-party games on Nov. 5. May 24 * In a show of competitive hubris, Sony Computer Entertainment president Ken Kutaragi tells the Financial Times: "Microsoft was finished before it even got started,'' Kutaragi said of the Xbox. "They have no games,'' and "retailers in the U.S. are already disappointed." * To make sure those without credit cards can play EverQuest and other subscription titles available from Sony Online Entertainment, consumers will be able to purchase 90-day Game Cards from retailers this fall that can be used instead of credit cards. May 29 * Interplay Productions confirms that it is in negotiations to sell itself to an unnamed party. March 31 * As of its fiscal year-end, Sony Computer Entertainment reports that it has sold 3.34 PlayStation 2s in Japan, and 9.2 million worldwide. June 4 * Sun Microsystems signs on Sony Computer Entertainment, the latter pledging to add Java platform support to the PlayStation 2 by the end of 2001. Java is widely used to network a broad array of electronics devices. June 5 * Although it is not looking to sell its 34 percent interest in Interplay Productions, Titus Interactive reports that it has been approached by an unnamed company looking to acquire that stake in the U.S. publisher. June 12 * Ebworld.com launches a game rental network called EB1. The service is aimed at broadband subscribers and rents PC game titles for 72 hours for $4.99. EB1 uses Into Networks technology. * To quickly get six of its game licenses, such as Asteroids and Centipede, on PalmOS handhelds, Infogrames Inc. partners with developer Springtoys in Finland. The first releases are not expected before summer. June 13 * Blockbuster Video says it will begin renting Game Boy Advance hardware and software on June 15. Customers will be offered hardware/software package — a five-day rental of a Game Boy Advance, plus two games for $14.99. Blockbuster stores will initially carry 15 GBA titles for rent. June 18 * In its first week of release, 540,000 Game Boy Advance units were purchased, generating $45 million in revenue. The new system achieves a 76 percent share of console hardware sales for the week. Nintendo of America immediately pumps another 100,000 units into the channel for the second week of release, and promises 1 million total units will ship by the end of June. * To reduce rising costs of overseas distribution, and online game development, Japanese videogame companies Square Co. Ltd., Namco Ltd., and Enix Corp. set up a joint task force to cooperate in these markets. June 20 * With seven games in development for the PlayStation 2, Sega Corp. signs an agreement giving Sony Computer Entertainment Europe the rights to manufacture, distribute and market the games in five European languages. June 22 * As a result of the decline in the videogame coin-op business, Midway Games Inc. decides to get out of the arcade market entirely to focus on developing for 128-bit home consoles. June 28 * To better its position against the upcoming Nintendo GameCube, Sony Computer Entertainment lowers the price of the PlayStation 2 in Japan from $320 to $281. July 10 * Jack of All Games joins Ingram Entertainment as an official Xbox distributor in North America. The distributor, a division of Take-Two Interactive, claims it supplies 4,000 storefronts. * Blizzard Entertainment is awarded a preliminary injunction motion against New Line Cinema, prohibiting the film studio from advertising, promoting or releasing an upcoming motion picture under the name Diablo in any form, whether used alone or in combination with any other words. July 20 * Less than a year after it was launched, Sega Corp.'s dedicated ISP and game service SegaNet sheds its connection operations, transferring its subscribers to Earthlink Inc. for Internet access. July 23 * Rumors begin to surface that Microsoft Corp. will delay the North American Xbox release past the current Nov. 8 date. July 24 * Reversing the common launch practice of Japanese gamemakers, Microsoft Corp. confirms that the North American market will receive its Xbox introduction first, with Japan to follow not long afterward. A firm Japanese release date is not set, but analysts predict not until the first half of 2002. August 7 * A survey funded by the Ziff Davis Media Game Group predicts that 42 percent of all videogamers in North America plan on purchasing at least one 128-bit console by year-end. Of that percentage, 62 percent said they would buy a PS2, 34 percent said they would prefer an Xbox, and 33 percent will purchase GameCubes. August 9 * 3D Realms sells the motion picture and television rights to action shooter Max Payne to Collision Entertainment, with distribution through divisions of Miramax Film Corp. August 13 * To hasten the sell-off of Dreamcast units in inventory, Sega of America lowers the suggested retail price to $79.95. August 14 * Despite a terrible advertising revenue year for print publishers, Ziff Davis Media is confident enough of the videogame sector to launch GameNow, a multi-platform magazine directed at teens between 10 and 16 years old. The monthly will launch with a November issue, with a circulation of 150,000. August 15 * In addition to closing down its Dynamix studio, Sierra On-line lays off 245 employees. Owned by Vivendi Universal, the downsizing is not based on financial concerns, according to executives. August 23 * Experiencing production delays, Nintendo of America pushes the GameCube launch date back to Nov. 18 in an attempt to guarantee that the 700,000 units promised to retailers are delivered. August 27 * Taking the opportunity to cut approximately $10 million from its budget, financially ailing Interplay Productions signs an agreement for Vivendi Universal to distribute Interplay games in North America. The cost savings to Interplay would come from eliminating marketing and distribution staff. September 4 * The first batch of Xbox pre-order bundles go on sale at Toysrus.com for $499, and completely sell out in 30 minutes. The division's executives won't say how many units were released to sale. September 10 * Market research firm Odyssey concludes North American consumer interest in buying a new PC is at an all-time low. Only seven percent of households polled were extremely likely to purchase a new computer within the next six months. Odyssey's data also shows PC penetration remains flat at 60 percent. September 12 * To counteract demographic changes in Japan that indicate contraction of software sales, Konami announces that it intends to restructure its development efforts to better appeal to American and European gamers, and sell more titles in these markets. The publisher has already seen its U.S. market share rise from two percent to seven percent between 2000 and 2001, with hopes of upping its share to 15 percent in 2002. September 18 * Despite public shock so close to the terrorist attacks in New York City on the 11th, Nintendo Co. Ltd. reports that 330,000 of the 450,000 GameCube units shipped in Japan are sold during the first weekend after the launch on Sept. 14. The gamemaker had hoped to ship 500,000 units at launch, but problems with production and transportation kept the extra units from retailers. Nintendo promised it would get the extra 50,000 units shipped before the end of the month, and projects another 100,000 units will reach Japanese retailers in October, 200,000 in November and 600,000 in December. September 19 * Rumors from within the retail community suggest that Microsoft Games will not be able to supply the 600,000 to 800,000 Xbox units promised for the system's launch. Speculation grows that the actual number may be as low as 300,000. September 21 * Microsoft Games pushes the Xbox launch date back to Nov. 15, but won't disclose how many units it will ship. The company does say it is confident that production will support shipping 100,000 units per week after launch — reaching 1.5 million units by Dec. 31. Major retailers begin calling Nintendo of America about obtaining extra GameCubes as a stopgap measure. October 1 * Economic slowdown be damned, Nobuyuki Idei, Sony Corp. CEO, announces that the PlayStation is already making a profit, and that Sony Computer Entertainment should be profitable by the fiscal year-end on March 31. October 8 * In its first major pre-order sale since the Sept. 11 attacks, Toyrus.com sells out of its first $399 GameCube preorder bundle in four minutes. October 16 * Despite the splashy Nintendo GameCube and Microsoft Xbox introductions set for mid-November, retailers are saying they expect Sony Computer Entertainment's year-old PlayStation 2 to steal the show as this holiday season's best selling console. The dealers were queried in a survey released last week at the third annual PlayDate 2001 media showcase for the toy industry, held in New York City. October 17 * The European Xbox launch is set for March 14 at 479 euros. Microsoft Corp. says it will ship 1.5 million units through June to 16 European markets. October 23 * SegaNet informs users of its game matchmaking service that they will be charged $9.95 a month starting Nov. 1 to use the site. Sega Corp. hopes to grow SegaNet as a cross-platform service as PlayStation 2 and Xbox online games materialize. * Determined that EA.com show a profit by 2003 as promised to stockholders, Electronic Arts lays off 250 employees from the online unit. October 29 * Looking for new revenue sources, Interplay Productions launches Interplay Streaming Games to rent titles for $5.99 per month. The service is built and managed by Stream Theory Inc. November 2 * The Department of Justice settles its three-year anti-trust suit with Microsoft. However, the settlement does not require a break-up of the corporation or harsh remedies, as previously sought by the government. The agreement does require Microsoft to give computer makers additional flexibility in how they customize Microsoft applications, and forces the corporation to open up Windows OS source code with other software makers. November 6 * Ubi Soft launches Ubi.com, a PC game match-making and community site. Main draws include Red Storm's Tom Clancy's Rainbow Six franchises. November 8 * Sony Computer Entertainment will not lower the price of the PlayStation 2 in the U.S., saying such a move is unnecessary. But Sony does boost production from 1.8 million units per month to 2 million units. November 15 * The Microsoft Xbox launches. November 18 * The Nintendo GameCube launches. November 26 Sony Computer Entertainment cuts the price of the PlayStation 2 in Japan again, to $240. November 28 * In an unexpected decision, Nintendo Co. Ltd. reduced the royalty fees charged to third-party publishers who make games for the Game Boy Advance (GBA). The exact terms of the reduction was not disclosed by the gamemaker, but speculation is Nintendo doesn't like the tie rates between Game Boy Advance hardware and software, and wants to lower game prices. Because the GBA plays Game Boy Color games that cost $29 instead of $39, new GBC titles continue to sell much better than expected. December 3 * In its first 15 days after launch, Nintendo of America reports that it has sold 600,000 of the 740,000 GameCube units shipped to retailers. December 10 * TRSTS sales figures show a substantial boost in videogame revenue following the Xbox and GameCube launches. For the week ending November 10, videogame sales topped out at $47 million. Following the introductions, sales surged to $127 million for the week ending November 24. Sales dipped the week after Thanksgiving to $101 million. * Nintendo of America boosts GameCube shipments by an additional 200,000 units through Dec. 31 to 1.3 million total. In addition, 500,000 more units would be added to the number heading to North America between January and March 31. December 19 * The NPD Group reports that videogame revenue in November increased 624 percent over the same month in 2000, Thanks to the Xbox and GameCube introductions, and extremely strong PS2 sales. Almost 2.6 million next generation consoles were purchased during the month. December 31 * Based on preliminary sales reports, North American retailers sold over 1.5 million videogame systems between Dec. 24-29. Leading the sales surge was the Game Boy Advance and PlayStation 2, with over 1.1 million units sold between the two platforms. According to preliminary estimates, during Christmas week over 600,000 Game Boy Advances cleared registers, followed by over 500,000 PS2 units, 250,000 GameCubes and 150,000 Xboxes. |
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