Data Filter: The News You Need in Easy-to-Swallow Gel Cap Form

Electronic Gaming Business, Sept 24, 2003

News-o-Matic

Whassup?: THQ Wireless launches Madtap.com, a European multi-lingual portal
for purchasing and downloading mobile Java-based titles. Users buy games by
sending an SMS message and receiving a download link in return. Madtap will
feature THQ titles but also carry games from other publishers. Madtap
provides the back end fulfillment and billing system. THQ Wireless
anticipates expanding offerings to include ringtones, screensavers and
multimedia messaging.
So What?: THQ shows the mobile carriers how it should be done in this
excellent portal that lets users quickly find games that are compatible with
their handsets and tastes. While it doesn't allow for online demo
 play, the portal gives liberal screenshots and matches users with the right
games for their hardware in an efficient interface. Take that, Cingular and
AT&T! The portal is a nice end run around the carriers and their
abysmal sites. Despite THQ's promise, we saw no sign of other
publishers yet at the site, and who knows how Madtap will handle
competitor content.

Whassup?: Microsoft partners with online digital music service Eatsleepmusic
to provide downloadable karaoke music to the Xbox's upcoming Music
Mixer karaoke/music library product. Users can purchase any of 20,000
voice-less popular tunes from www.XboxKaraoke.com, download the files
to their PC and transfer them to their Xbox. Special song packs will be
available directly through the Xbox Live service as well. Music Mixer
goes on sale on Oct. 18.
So What?: With the PS2 EyeToy gaining momentum (UK sales are through
 the roof), and EA throwing in with the Sony online strategy, MS needs a
win for its upcoming gadget. This partnership makes the Music Mixer much
more attractive, since XboxKaraoke.com offers a wide range of familiar
pop songs for download at $1.99 each, although we would prefer that
users didn't need the PC as a go-between. The EyeToy is cooler.
..for a couple of days...but the Music Mixer is more likely to be used
 as a credible MP3 library and playback device.

Whassup?: IBM gave a dry run for its GameGrid in late August in an attempt
to stress test a distributed computing system that is designed to handle
massive multiplayer gaming more efficiently. IBM invited students to download
and play a customized version of id's Quake 2 to show that hundreds
or thousands of players could be handled simultaneously in an arena on
relatively simple hardware.
So What?: What if they gave a beta test and nobody came? IBM netted only
80 participants of the GameGrid in this first try, after fewer than 900
people downloaded the software. IBM is going to try a re-test using bots
instead of unreliable students. Nevertheless, the relevance of distributed
style processing to online game play is undeniable. IBM is deliberately
 trying to run server- and network-intensive tasks on Neanderthal
hardware to demonstrate the efficiencies gained by a grid approach.
As MS and Sony console networks already approach 1 million users,
the cost of maintaining a robust online gaming network could be
monstrous in years to come, and techniques like IBM's could
make available to publishers and hardware makers more flexible
revenue models.

Whassup?: Xbox.com relaunches. According to Microsoft, the site is in direct
response to user requests for more streamlined access to more game
information. In addition to feature stories about the platform, upcoming
 titles promos, etc. the new site also gives Xbox Live players easy
access to online friends lists, high score info, and head-to-head
competition. The site also sports an accessible, and massive,
 message forum for most Xbox topics and specific titles.
Some forums have tens of thousands of entries.
So What?: Gamers will need to bring their enthusiasm with them. So clean
and well-lit, Xbox.com looks downright bland. Partners will enjoy an
oversized frame for promo animations, and the re-design puts lists of
upcoming titles in clear view. Otherwise, the site does little to
merchandise the platform or offer any unique selling points or even
embody any of the excitement of gaming. Alluring media assets are
fairly well hidden, aside form some trailers, and the site asks you to
sign in with Microsoft's Passport system but never tells you what good
it does. Also, and this is inexcusable for a Web site, some prominent areas
of the site list as "upcoming" titles that have been out for
weeks.

August Sales (Sort of) Meets Expectations

* $334.4 million (up 4.1% over same period 2002 and up 21.8% over July 2003)

* YTD software sales at $2.7 billion ( 5.7% over same period 2002)

* YTD PS2 game sales 19.9%

* YTD Xbox game sales 23%

* YTD GameCube game sales 38%

* YTD PS1 game sales -56.3%

* YTD GBA game sales 10.3%

* Aug. PS2 console sales 291,000

* Aug. Xbox console sales 144,000

* Aug. GameCube console sales 100,000

Sources: NPD/Piper Jaffrey/Reuters

According to Piper Jaffrey analyst Tony Gikas, the strong performance of Xbox software is surprising and puts the platform on track to enjoy 20% to 25% growth in 2003 overall. Nevertheless, with overall YTD game sales up 5.7% and slightly behind expectations, Gikas now thinks the industry will be lucky to achieve 14% growth in 2003. He also warns that the substantial console/game bundling expected to dominate this holiday season could cut into game sales among companies that do not have placement in these deals because bundles "automatically take that first software sale away from the market. We view double-software bundles as a risk to market-wide sales of video games." Harris Nesbitt Gerard analyst Edward Williams told Reuters that PS2 sales were softer than expected and on track to sell only 8.5 million units in 2003, 1 million below his own initial expectations and about .5 million below Sony's own target for the year.