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Rollin' - Limp Bizkit

Warner Ramping Up Games Business; 75 Titles in the Works

Following the recent Time Warner fiscal announcement, which revealed Turner's intent to sell off GameTap, Time Warner chief executive Jeffrey L. Bewkes revealed in an investors conference call Warner Bros' intent to really ramp up its presence in the video game industry. Warner will spend hundreds of millions to get a bigger piece of the growing video game pie, and the company already has a $250 million "strategic investment" from a Middle Eastern firm.

"Lego Indiana Jones was the top-selling videogame in June and we have high hopes for Lego Batman, as you can imagine, which we are releasing in September. Over time, we expect games to become an increasingly important part of Warner Brothers' business," said Bewkes, who noted that Warner is planning on releasing 75 games over the next seven years.

He continued, "We're pursuing basically two significant changes in the games business. One is we're going to push to establish ourselves as a third-party distributor, which we've already done fairly successfully in the home video business for other people's product, but it's less common right now in gaming. And second, we are using some [felt] type financing to manage the risks, some of which we got, for example, out of Abu Dhabi."

Warner earlier this year made a big investment in SCi/Eidos, and the company currently owns TT Games, the maker of the Lego games, has a stake in Hollywood-focused Brash Entertainment and currently has the North American distribution rights for Codemasters' portfolio. That's only the beginning for the entertainment giant, however.

"...there's co-development, there are game companies that we have different degrees of ownership in, all of it focused on getting the scale and distribution and to your question of whether we have what we need in terms of human talent in our organization inside the company, you know, it's something we work on all the time," said Bewkes. "We are developing at a pace with the size of our distribution presence, and we feel that we are in reasonably good shape. If you are asking whether we can attract talent that we need, we think we can."

With a massive pile of cash to invest in the business, Warner is confident it can draw away prime talent from other rival video game companies. For example, in late April Warner hired former Vivendi Games' President of Worldwide Studios Martin Tremblay to head up WBIE.

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Space Siege (PC)

Genre: Action RPG

Release: Date08/12/2008

Publisher: Sega

Developer: Gas Powered Games

Space Siege takes place in the confines of the Armstrong, one of the few remaining colonization ships carrying the last bastions of human civilization after a devastating attack on Earth from an unknown alien race. Players will take the role of Seth Walker, a cybernetics engineer suddenly thrust into a struggle to save humanity from extermination. As the adventure progresses Seth is offered opportunities to sacrifice pieces of his humanity for cybernetic upgrades that will assist him in his mission to preserve the human race. But what price will he pay to save his own humanity? Only the player can decide Seth's ultimate fate.

Space Siege features a dynamic storyline based upon the decisions the player makes throughout the course of the game. Based upon the cybernetic modifications the player chooses to make on Seth's body, NPC's will react and interact with the player differently and, ultimately, different story resolutions will be reached.

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Sega Sammy Doubles its Losses in Q1, But Shares Jump

Sega Sammy Holdings Inc. recently announced its first-quarter fiscal results today, revealing a net loss that doubled (year-over-year) to 10.5 billion yen ($97 million), while sales declined 22 percent to 74.6 billion yen. The company put some of the blame on the global economy and the Japanese economy as well as its pachinko and arcade businesses. The pachinko business saw a loss of around $40 million.

That said, the publisher's home video game division has been faring much better, with net sales increasing to 30.5 billion yen and operating loss reduced to 4.12 billion yen. Overall, Sega Sammy sold 6.89 million units of software during the quarter, with 3.16 million coming from the U.S., 2.89 million from Europe and 830,000 from Japan and other regions. Titles that were highlighted include Mario & Sonic at the Olympic Games, which has shipped 7 million copies worldwide, Iron Man, which is approaching 2 million sold in the U.S. and Europe, and Valkyria Chronicles, which had "strong" sales in Japan.

Despite widening its net loss for the period, Sega Sammy beat expectations and its shares rose 13 percent to close at 1,201 yen on the Tokyo Stock Exchange on August 1, which is the sharpest increase since its listing as a holding company on Oct. 1, 2004, Bloomberg reported. Overall, however, Sega Sammy shares have fallen 13 percent this year.

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