After "Grand Theft" revs up, how much in its tank?

By David Ward

SAN DIEGO (Hollywood Reporter) - While there's little doubt about the power of this week's launch of "Grand Theft Auto IV," there is some question about the video game's legs.

The latest chapter in the wildly popular and controversial criminal action franchise will likely smash the $300 million global first-week sales figure for Microsoft's "Halo 3" in September, but how the game will fare by year's end is subject to debate.

"I think all the preorder programs now in place for these top titles really end up taking the long-term sales out of many games," said Michael Goodman, director of digital entertainment at Yankee Group. "So I don't think 'Grand Theft Auto IV' is going to have those kind of legs."

Many stores are opening up at midnight Monday to accommodate eager customers.

Take-Two Interactive Software Inc, parent company of developer Rockstar Games, even suggested that worldwide actual game sales could reach 6 million, generating $400 million for the publisher as it battles a hostile takeover attempt from rival Electronic Arts.

"Halo 3," for example, exhausted 67% of its total U.S. sales-to-date in its first month, and though NPD games analyst Anita Frazier said the game still is selling 100,000 copies a month, it no longer is in the tracking firm's top 10 monthly charts.

But David Cole, president of market research firm DFC Intelligence, stressed that "Grand Theft Auto IV" always has been a different type of franchise. "If you look at 'Halo' titles historically, they've always been the type of games that everybody rushed out to buy, but the 'Auto' titles have always had lots of legs," he said.

Because "Grand Theft Auto" depicts carjacking, murder and other questionable content that has upset parents, Cole noted many people forget that the games are very accessible and have real mass-market appeal, despite their M (for Mature) rating. Cole said "Grand Theft Auto 3" not only was the best-selling title of 2001 but also the second-best-selling tile of 2002 -- right behind "Grand Theft Auto: Vice City."

From Take-Two's standpoint, Goodman said the expected massive sales for the new title will at the very least give it some breathing room in its efforts to fend off Electronic Arts' $2 billion hostile takeover offer.

"EA is going to have to either up their bid significantly or pull back for six months to a year and hope the 'Grand Theft Auto' hoopla dies down, keeping their fingers crossed that Take-Two is not on a winning streak," he added.

Reuters/Hollywood Reporter

By Daisuke Wakabayashi and Kenneth Li SEATTLE/NEW YORK (Reuters) - Microsoft Corp wants to stick with its original takeover offer for Yahoo Inc, but

By Daisuke Wakabayashi and Kenneth Li

SEATTLE/NEW YORK (Reuters) - Microsoft Corp wants to stick with its original takeover offer for Yahoo Inc, but is not ruling out News Corp joining its bid or other options, a source close to the company said on Friday.

Separately, a source familiar with the matter said News Corp continues to talk directly with Yahoo on reaching a deal without Microsoft. The source declined to provide details on what a potential deal structure would look like.

The source close to Microsoft said the company's preference all along has been to retain the original deal structure that would involve paying $31 per share in cash and stock to acquire Yahoo. But Microsoft has not ruled out bidding with partners.

Earlier, the Wall Street Journal, which is owned by News Corp, reported that people close to Microsoft said the software maker plans to pursue Yahoo alone rather than with News Corp, which had held talks with Microsoft on a joint bid for Yahoo.

The Journal also said Yahoo's board of directors met on Friday to assess their options, including deepening their negotiations with Time Warner Inc's AOL on a deal to merge Yahoo and AOL, but that no decisions were reached.

Spokesmen for Microsoft, News Corp, Time Warner and Yahoo were not immediately available to comment.

The newspaper's Web site cited unnamed sources as saying that Time Warner had been expecting Yahoo's board to move closer to backing an AOL deal and that Yahoo's delays suggested that the company was hesitant to proceed.

A source familiar with the situation was unwilling to confirm to Reuters the Journal's characterization of Time Warner's thinking, but said that talks continue between Time Warner and Yahoo.
Microsoft had threatened last Saturday to launch a hostile bid for Yahoo and could lower its offer of $42.4 billion around April 26 if it does not get a deal.

The New York Times reported on Wednesday that News Corp was in talks to join Microsoft's bid for the Web pioneer.

Yahoo also announced on Wednesday a test to outsource Web search advertising to Google Inc, which sources say is part of a three-way alliance that would combine Yahoo with Time Warner Inc's AOL instead of Microsoft.

(Additional reporting by Eric Auchard in San Francisco; Editing by Braden Reddall)

Apple has biggest impact on world consumers: survey

By Rachel Sanderson

LONDON (Reuters) - The Apple brand has the biggest impact on the world's consumers, while Microsoft and the United States nation brand are those considered most in need of a remake, a survey showed on Monday.

The poll by online magazine brandchannel.com asked its readers to identify the brands with the greatest impact on their lives, and say how they affected readers' behaviour and their view of the world.

The nearly 2,000 professionals and students who voted named Apple overwhelming winner. The creator of the iPod and Mac computer triumphed in six categories including most inspiring brand and the one readers cannot live without.

Microsoft, the world's largest software maker was also a winner, but it received the dubious honor of the brand most readers wanted to argue with, and the one they most wanted to revamp. Voted into second place in the category was brand USA.

"Apple has clearly captured the hearts and minds by leading across most categories. Others, such as the USA nation brand, which ranks highly as most in need of a rebrand, requires help according to our readers," said brandchannel editor Jim Thompson.

The poll does not take account of economic brand value, the murky science of assigning a financial value to brand, which regularly puts Coca-Cola Co's (KO.N) Coke in first place.

One of the more surprising results from the survey, was that few of the respondents -- who came from 107 countries -- thought that there was such a thing as a "green" brand.

The result comes despite millions of dollars spent by some of the world's biggest companies to rebrand themselves as "environmentally-friendly". Discussing Apple, one anonymous reader said there was "never a dull moment" with the company "reinventing itself all along and providing, over and over again, a new perspective on what we thought was carved in stone".

At the other end of the spectrum, Microsoft had "gone from innovative and bold to stodgy and follower," said another unnamed reader.

After Apple, the most inspiring brands were Nike, Coca-Cola, Google and Starbucks, the survey showed.

The same brands, except with Virgin in place of Starbucks, were the brands most readers would "like to sit next to at a dinner party".

The rankings by brandchannel.com were based on answers from almost 2,000 readers from 107 countries. The survey was conducted online from February 24 to March 9.

Buyback programs turn electronic trash to cash

DENVER (Billboard) - Leave it to the gadget industry to turn concern over electronic waste into a sales opportunity. Simply put, they're offering to buy back old devices to recycle or resell, in return for cash or in-store credit.
Coming to consumer electronic retailers nationwide this spring is the ecoNEW program from NEW Customer Service Cos., the company that provides extended warranty plans and protection programs for such retailers as Best Buy and Wal-Mart.
Under the program, consumers can return any electronics products they own to participating retailers (which have not yet been announced) -- even if they weren't purchased at the store. In return they'll receive an in-store credit gift card for a predetermined amount based on the type and condition of the device. EcoNEW handles all the collection and evaluation details and issues the gift cards directly.
Another company, TechForward, offers a guaranteed buyback program similar to the optional extended warranty services offered by many consumer electronic retail stores. But instead of buying extra coverage in case the product breaks, the consumer buys insurance of sorts against future upgrades.
TechForward vice president of operations Marc Lebovitz says the program enjoys a 12 percent conversion rate on the devices covered. Close to 70 percent of the devices covered under the plan are returned for the agreed-upon fee.
Both ecoNEW and TechForward then evaluate the condition of the devices returned, wipe clean the hard drives and either resell the refurbished devices online via used MP3 sites or eBay or harvest the components and sell them as salvage parts.
The money gained from this process pays for the rewards given to the customer. While TechForward hopes the difference will make a tidy profit, ecoNEW will be happy to just break even.
"It's not necessarily the revenue opportunity, because frankly it's not that great," NEW senior VP of strategy and corporate development Kevin Porter says. "If you look at the margins ... they're razor thin. Until we have more experience on the flow rate of product, we're not quite sure yet if this will be a positive moneymaker. We're hoping to at least make it neutral." The benefit, ultimately, comes in encouraging more sales.
"It allows people to purchase now with more confidence," Lebovitz says. "Sometimes people will wait to make a purchase because they know a new device will come out in three or six months. This allows them to purchase now and know they can upgrade to the new one whenever they're ready."
But environmental responsibility is also a driving factor, and both companies are gambling that end-of-life programs like these will become more profitable in the years ahead as demand increases for safe disposal programs for consumer electronic products.
Following is a quick snapshot of companies providing buyback programs.
TechForward
How it works: Customers buy the plan at point of purchase for a guaranteed rate, then return the item using the program's free packaging and shipping.
Supporting stores: Los Angeles-area independent electronics stores
Cost to consumer: About $9 for MP3 players, more for other devices
Reward rate for an MP3 player: The guaranteed buyback on an iPod Touch is $240 for a 3-month-old device, $190 for up to six months and $160 for up to a year. Prices may vary if the units are damaged or inoperable.
ecoNEW
How it works: Customers fill out an online survey detailing what devices they want to get rid of and the condition of the product, and ecoNEW provides an estimate for the buyback, as well as free shipping.
Supporting stores: To be announced, but warranty clients include Best Buy and Wal-Mart
Cost to consumer: None
Reward rate for an MP3 player: $20-$60 range depending on model; in-store credit only
Apple
How it works: Customers can return iPods to any Apple store for a discount on a new iPod bought that day. Also offers a mail-in recycling program for iPods and mobile phones.
Supporting stores: All Apple retail locations
Cost to consumer: None
Reward rate for an MP3 player: 10 percent discount on new iPods when returning to the store. No reward if mailed in.
Reuters/Billboard

Gibson sues MTV, EA over "Guitar Hero"

By Ilaina Jonas

NEW YORK (Reuters) - Gibson Guitar said on Friday that it filed a patent infringement lawsuit against Viacom Inc's MTV networks and Harmonix as well as Electronic Arts relating to the wildly popular "Guitar Hero" video games.

The lawsuit, filed in Federal District Court in Tennessee, relates to the same patent involved in another suit Gibson filed earlier against various retailers, the Tennessee-based guitar maker said in a statement.

The "Guitar Hero" series has sold more than 14 million units in North America and raked in more than $1 billion since its 2005 debut.

Gibson said the games, in which players use a guitar-shaped controller in time with notes on a television screen, violate a 1999 patent for technology to simulate a musical performance.

Harmonix developed the first "Guitar Hero" game and was later bought by MTV. Electronic Arts and another company, Activision Inc, as well as several retailers, either develop, distribute or sell one or several of the games in the "Guitar Hero" series.

"This lawsuit is completely without merit and we intend to defend it vigorously," Harmonix said in a statement.

A spokesperson for Electronic Arts could not be reached for comment.

Earlier this month, Activision filed a preemptive suit against Gibson, which had complained that the games infringe upon one of its patents.

Activision filed a lawsuit asking the U.S. District Court for Central California to declare Gibson's patent invalid and to bar it from seeking damages.

Gibson, whose electric guitars are used by legendary blues and rock artists such as Eric Clapton, B.B. King and Slash, has been a high-profile partner in the "Guitar Hero" games.

Activision licensed the rights to model its video controllers on Gibson guitar models and to use their likenesses in the game.

Activision has said that by waiting three years to raise its claim, Gibson had granted an implied license for any technology.

Google says Microsoft's Yahoo buy might hurt Internet

BEIJING (Reuters) - Google Inc, the world's leading search engine, said on Monday it was concerned about the free flow of information on the Internet if Microsoft Corp were to succeed in acquiring Yahoo Inc.

Last month, Microsoft proposed buying Yahoo in a deal originally worth $44.6 billion, but Yahoo's board has rejected the offer, saying it was too low.

"We would be concerned by any kind of acquisition of Yahoo by Microsoft," Chief Executive Eric Schmidt told reporters.

"We would hope that anything they did would be consistent with the openness of the Internet, but I doubt it would be."

Schmidt pointed to Microsoft's past history and "the things that it has done that have been so difficult for everyone", but he did not elaborate.

Last year, a European court upheld a landmark 2004 decision that Microsoft abused the near-monopoly power of its Windows operating system to damage competitors, along with a 497 million euro ($695 million) fine.

"We are concerned that there are things Microsoft could do that would be bad for the Internet," said Schmidt.

Microsoft Chief Executive Steve Ballmer pledged earlier this month that his company would gain market share against Google in online advertising and Web searching, even if led to his "last breath" at the company.

In a Reuters poll of financial analysts, the overwhelming majority said they believed Microsoft would eventually succeed in buying Yahoo, but many said they felt it may not be the best use of its ample cash reserves.
($=7.09 yuan)

India says not considering banning BlackBerry

NEW DELHI (Reuters) - India is not considering banning Research In Motion's (RIM.TO: Quote, Profile, Research) (RIMM.O: Quote, Profile, Research) BlackBerry services at this point of time, the top official in the telecoms ministry said on Friday.

Security agencies have raised concerns the service posed a risk as emails sent using it could not be traced or intercepted.

"There is no question of banning at this point," Telecoms Secretary Siddhartha Behura told reporters on the sidelines of an industry conference.

"We are not interested that we say BlackBerry will not used in this country," he said, adding the telecoms department was "very keen" the services should continue.

"The interactions are going on with various stakeholders including the home ministry ... I do believe it will be resolved," Telecoms Minister Andimuthu Raja said.

The department of telecoms has told RIM officials of the concerns and on Friday evening will meet representatives of the four mobile phone service providers who offer BlackBerry in India, Behura said.

Sector leader Bharti Airtel Ltd (BRTI.BO: Quote, Profile, Research), No. 2 Reliance Communications Ltd (RLCM.BO: Quote, Profile, Research), Vodafone Plc- (VOD.L: Quote, Profile, Research) controlled Vodafone Essar Ltd and privately held BPL Mobile provide the service in India.

"We want operators to talk to BlackBerry people and put pressure on them to provide the necessary and satisfactory answers to security agencies. That is what we are talking to them," Behura said.

Microsoft and Yahoo met to discuss merger

NEW YORK (Reuters) - Microsoft Corp (MSFT.O: Quote, Profile, Research) and Yahoo Inc (YHOO.O: Quote, Profile, Research) met on Monday to discuss Microsoft's takeover offer for the Internet company, the Wall Street Journal reported on Friday, citing people familiar with the matter.

The meeting was said to be the first since Microsoft made its unsolicited offer for Yahoo, worth nearly $42 billion, on January 31. Yahoo rejected the offer as inadequate last month.

The Journal said the meeting wasn't a negotiation and that no bankers were present.

The session was intended to allow Microsoft to present its vision of a combined company, and Yahoo executives mostly listened, the Journal quoted one of the sources as saying.

Microsoft and Yahoo spokesmen declined to comment.

source : www.reuters.com