Video game makers turn to familiar faces to propel sales - Retailing & Entertainment Licensing Update - Brief Article

DSN Retailing Today, June 10, 2002 by Doug Desjardins

The video game industry has become a self-contained world in recent years, with home-grown franchises, such as "Tomb Raider," becoming household names. But software publishers still find that basing a new game on a popular film or TV property helps establish an identity and instant brand recognition.

Take the case of "Spider-Man." Activision Inc. released the video game version of the hit film in April and it's been a huge hit on five major platforms. "It's been our No. 1 seller on Playstation 2 for weeks," said Peter Roithmayr, vp of video game merchandising for game retailer Electronics Boutique. "It's a great game that would have been a hit no matter what, but the success of the movie definitely helped."

Though coupling a known brand with a new game doesn't guarantee success, it helps when the game hits the shelves for the first time. "When you have a built-in audience and the potential for repeat business, that's a big positive," said Michael Goodman, an analyst with The Yankee Group in Boston.

At Activision, acquiring the rights to name brands is part of a comprehensive strategy to build franchises with staying power. "The video game industry just exploded in the past few years and it's more important that ever to reach mainstream consumers," said Cathy Vrabeck, executive vp of global publishing and brand managing for Los Angeles-based Activision.

Vrabeck said the company has made a point of getting together with movie studios to launch video lines based on high-profile movies, such as "Toy Story 2" and "X-Men." "It's part of our strategy to launch games based on movie characters or brands people recognize," said Vrabeck.

The company also looks for films that have long legs and franchise potential, something it's found with "Spider-Man." Both director Sam Raimi and star Toby Maguire are committed to produce a second "Spider-Man" film scheduled for release in 2004. "We're not looking for one-hit wonders," said Vrabeck. "We really want properties that have sequel potential."

Game publisher Electronic Arts (EA) has found its newest franchise in Harry Potter. The first film based on J.K. Rowling's popular series of books--"Harry Potter and the Sorcerer's Stone"--generated more than $300 million at the box office and helped propel the video game version to record sales.

"We believe the 'Harry Potter' release is the best-selling title ever, period, with more than nine million units sold in less than five months," EA executive vp Stan McKee told analysts during a conference call in May. The game publisher already is at work on a game version of "Harry Potter and the Chamber of Secrets." Both the film and video game are scheduled for release in late 2002.

EA also has video games planned for the next two installments in the "Lord of the Rings" film trilogy. Both the film and video game version of "The Two Towers" is scheduled for release in December 2002, followed by "The Return of the King" in 2003.

The publisher also has the rights to the most enduring film franchise in history with James Bond. Its newest Bond title, "James Bond 007 In Agent Under Fire," was one of its best sellers in its fourth quarter ended March 31. And EA will release another new Bond title, "Nightfire," in November to coincide with the box-office release of the 20th Bond film, "Die Another Day."

Video games based on TV properties also continue to thrive. Game publisher Infogames began releasing games two years ago based on the popular kids program "Blue's Clues." In August, Infogames will release a game based on "Dora the Explorer" and a title called "Nickelodeon Party Blast," which will feature SpongeBob SquarePants and other favorites from the kid's network.

"We also have a lot of games based on [sequel] movies coming up, like "Men in Black" and "Stuart Little," said Infogames spokeswoman Stacy Clement. Later this year, Infogames will release games based on "Terminator" and "Mission Impossible."

In addition to brand recognition, game publishers also benefit from the media exposure their properties generate. In the case of a show like "Blue's Clues," Infogames is guaranteed repeated showings on daytime TV for years to come. And while the buzz around a hit film, such as "Spider-Man," only lasts for a few weeks or months at best, it generates millions of all-important "consumer impressions" in a short period of time.

"When a film is in the movie houses, the level of brand awareness that a big marketing campaign generates for a game is incredible," said Activision's Vrabeck.

But in the long run, the success of a game depends on the quality of the product, not box-office results or Nielsen ratings. "If a game is bad, it doesn't matter how great the movie is," said Roithmayr. "It might sell well for a week or two, but once word gets around in the gaming community, it's gone."

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