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Ziff Davis files chapter 11 bankruptcy
Damn, we don't normally do too much media-on-media stuff, but reports are surfacing that tech mega-publisher Ziff Davis (owner of PC Mag, EGM, DigitalLife, etc.) is fricking filing for chapter 11 bankruptcy as a shield from some $225m in debt. For those not in the know, chapter 11 just means they're down, but not necessarily out -- although we had no idea it was as dire for the media company as being $225m in the can (not that we're really all that shocked). Apparently when the company anticipates emerging from bankruptcy later this summer it'll have whittled down its debt to under $60m, having given up nearly 90% of the company's equity to its private creditors.
Ziff Davis reorganizes, changes review scoring
With the recent departure of Editorial Director John Davison to start-up web portal What They Like, Ziff Davis has done some behind-the-scenes shuffling of the staff behind its gaming properties. According to a press release (partially re-posted on James Mielke's blog), the online and print sides of the operation have been merged together and re-split into three new groups: "Videogames," headed by Electronic Gaming Monthly's James Mielke; "PC games," headed by Games For Windows' Jeff Green; and "Video," headed up by GameVideos' Demian Linn. Each group will funnel content into Ziff's magazines and online properties, including 1UP.com.More apparent to the average reader will be the change to Ziff's grading system, from a 10-point scale to an A+ through F letter grade. The change isn't just on a going-forward basis either -- according to the release, "all previously scored games on 1UP.com will also be converted to the new letter scale." Historical revisionism at its finest!
CNET Networks takeover sought
Media company CNET Networks, whose various websites including Gamespot, GameFAQs and Metacritic, looks to be in the midst of a takeover. A group of investors, led by Jana Partners LLC and claiming a collective 21.3 percent stake in the company, are currently trying to use their leverage to nominate seven new directors, according to Bloomberg. (Note: This incident is unrelated to the recent Gerstmann-gate fiasco.)Said former Ask Jeeves Inc. executive Paul Gardi, who stands to be one of those new directors, "With better board oversight, the right team could do great things with this brand ... We see huge opportunity in the strength of CNET's content." The contention is that the media company's shares have underperformed due to mismanagement of their resources. CNET CEO Neil Ashe said that the company welcomes suggestions from its stockholders but noted Jana's proposed shuffle was "improper" and not possible with the company bylaws. The latter argument prompted Jana to file a lawsuit in Delaware (home of CNET) claiming the bylaws were illegal in the state.
Brace yourself: Ziff Davis is $390 million in debt
Publisher Ziff Davis has been in trouble for a while, and now we know how bad. The publisher skipped an interest payment and is entering into negotiations regarding its $390 million debt. Ziff Davis says they are still operationally "in very good shape," but they still have debt left over from when the company "was a very different scale." The company used to employ 1,200 people, it is now down to 290 and among its many websites (including 1UP), it only has three magazines left: PC Magazine, EGM and Games for Windows. During the attempted sales of its games division it became clear buyers wanted 1UP, but had no interest in the declining magazines.Death in the video game magazine business seems inevitable, unless you're bundled with a mega gaming retail chain's discount card. Although this shouldn't be taken as a sign that EGM and your other Ziff publication's are finished. There's obviously a reason these magazines have survived while the others died off.[Via Evil Avatar]
The final days of Ziff Davis games according to Folio
Folio Magazine, a magazine about the magazine industry, has as their cover story for May "Ziff's Last Stand." An in-depth look at how the once great magazine empire is falling apart like a leper. Sure, it's still functional, but it isn't looking too pretty anymore. It's no secret that the games division has been up for sale with no buyers. The article lays out in no uncertain terms that the relevance of game magazines is on the decline and uses Ziff Davis' issues as the poster-child of the future to come.The prime example Folio uses is a scuffle between Edelman (a major PR firm) and an editor of PC Magazine. The battle concerned Senior VP at Edelman, Steve Rubell, publicly stating that he throws out his free subscription to the magazine. For any gaming media, when the PR guys stop reading your stuff, you can kiss access, interviews, information and general livelihood goodbye. And, in what really is the cherry on this story, the whole thing played out online.According to the article, buyers of the ZD game division are actually interested in 1UP, the company's online portal and its 13 million monthly visitors. 1UP currently competes against Gamespot and IGN's 20 million monthly visitors. The path sounds pretty solid at this point. The magazines will continue to lose readers and relevance and, if the staff survives, will probably be transferred to online. [Via GameSetWatch]
1UP explains why Puzzle Quest is so good
Many fans are calling Puzzle Quest one of the best puzzle games to come out in years. The game, which combines RPG and puzzle elements (seriously!), adds a much desired amount of depth to the typically simple Bejeweled gameplay. Watch the latest episode of Not the 1UP Show to see the Ziff Davis editors explain what makes the game so special. You can also download a PSP-compatible version here. [102MB .zip]
Ziff Davis Game Group still profitable but revenue declining
GamesIndustry.biz reports that the Ziff Davis Game Group -- home to publications like EGM and Games for Windows -- has continued to recede, with expectations for the game magazines offset only partially by a growing 1UP. Total gaming profits for Q4 2006 were down to $1.6 million from $3 million in Q4 2005, while the online subset of those totals grew 76 percent.Ziff Davis profits as a whole increased 70 percent over that period, meaning that while the games group is still making money, it's not matching pace with the rest of the publicly traded company. Would the Game Group do better with a new owner?
Ziff Davis games division cost too much?
Doesn't look like the potential buyers for Ziff Davis's games group, which includes EGM, Games for Windows and 1UP, are willing to pay the three times revenue price for the group that Ziff Davis wants. Asking for three times revenue, on a division that brings in mid-$20 million, but still breaks even on earnings is, as one source puts it in Foliomag.com, "Very, very over-the-top."Kevin Gifford explores the sale and the Ziff Davis corporation in his latest Magweasel column at GameSetWatch. Avoiding the pitfalls of dumping on how print is a "rapidly diminishing" presence -- going so far as to say he thinks EGM is doing a "very good job at proving why they should exist." -- he comments more on the turn of events at Ziff Davis. A company which profited from enthusiast publications is finding their business eroding by the ultimate enthusiasts publication tool -- the internet.See also: For Sale: EGM and 1UP
For Sale: EGM and 1UP
Ziff Davis is attempting to sell 1UP and Electronic Gaming Monthly. According to reports, publisher Ziff Davis is actively entertaining offers for a few of its divisions, including the Ziff Davis Game Group, which includes EGM, 1UP, the recently renamed Games for Windows and the recently deceased OPM (Official PlayStation Magazine).Simon Carless of GameSetWatch, who has been following the story, believes, "Ziff might have closed Official PlayStation Magazine a little earlier than they might otherwise have done, in order to make the Game Group more attractive to potential purchasers, who obviously care most about 1UP. Which makes sense, because in most cases (prestige low-circulation magazines such as Edge notwithstanding), circs and revenues in consumer print are only going to trickle down over the next few years."What this sale means is still up for great debate. There is currently no firm buyer and even if the unit is sold, readers probably won't notice a change for a couple years -- if ever. All this means right now is the Ziff Davis Game Group is up for sale, which is just standard business.
MGS:PO enthralls the hearts of 1UP
This week's episode of The 1UP Show features extensive coverage of the beloved Metal Gear Solid: Portable Ops. If you don't have the game yet, it's probably because it's sold out at your local retailer. Or, you were on the fence. After watching the 1UP gang showcase Portable Ops, you know you'll eventually get this game.
Official PlayStation Mag dead, demo disc the killer?
Just as Ziff-Davis and Microsoft's trembling lips meet for the long, slow kiss that is Games for Windows: The Official Magazine, Ziff and Sony are, like, totally breaking up. They say it's mutual, that all relationships must end ... but we all know who's really to blame. It's that ne'er-do-well demo disc, that's who!With the steady erosion of print readership and the growth of online outlets (like Sony's own ThreeSpeech project who, curiously, keep cribbing from OPM) it's no wonder they've reconsidered their commitment to the world of dead-tree gaming journalism. Coupled with their (about to launch) PlayStation Network, capable of delivering videos and demos -- the very same videos and demos that used to come bundled on DVD with every issue of OPM -- the gimmick has dried up.Increasingly, print magazines rely on these gimmicks to provide extra incentive to read all the gaming news you already read online 3 weeks ago. Game Informer has that infinitely valuable shelf space at the nation's largest gaming retailer while Computer Gaming World had to reevaluate and become Games For Windows. What's curious is why Microsoft not only doesn't see Xbox Live as the final nail in Official Xbox Magazine's proverbial coffin, but they use the magazine to distribute exclusive demos, weeks before they hit Live (see: Rainbow Six Vegas). Maybe, with a 60% attach rate for Xbox Live, they realize there's still plenty of offline 360 gamers who can't get their demos from Live.[Update: The fine folks at Ziff contacted us to "clarify that the 1UP Network -- 1UP.com, GameVideos.com, MyCheats.com, the 1UP Show, our podcasts, etc. -- and EGM will cover the PS3, PS2, and PSP in depth with integrated print, video, podcast, and web features through the holiday season, 2007, and beyond." So, there you have it. Don't think Ziff is axing the Sony coverage, they're just axing the magazine.]Read -- Sony's press releaseRead -- Ziff Davis' press release
Does Sony hate OPM? The answer is yes [Update 1]
Remember when we asked if the Official PlayStation Magazine hated PSP games? Well, it looks like Sony doesn't care much about the magazine either as they announced the magazine's discontinuation today. "With the launch of the PLAYSTATION 3 computer entertainment system and its full network and Web capabilities, we are focused on delivering content via the PlayStation Network and PlayStation.com website, not discs," said Peter Dille. Makes sense to me. With the newly revamped PlayStation.com and PlayStation Store coming, there's no reason to have a print magazine... especially when the main reason people get the magazine is for the demo discs. The final issue of OPM will be the January 2007 issue. Fans of OPM's editorials need not fret, however. The 1UP team will continue providing editorial content available exclusively for PS3 owners. [Via Joystiq] [Update 1: The European version of OPM will continue. While the US magazine is published by Ziff Davis, it appears that the UK's magazine, handled by Future, will still continue. Source: GI.biz]
Core gamers have heavy impact on economy [update 1]
Definition: a heavy gamer (also known as core gamer) is one who buys eight or more games per year and plays at least 10 hours per week. Correlation: according to a recent study by Ziff Davis Games Group, heavy gamers spend notably more money than casual gamers (those who buy at most one game per year and play five or fewer hours per week). Some relative figures: Heavy gamers spent $710 on clothing over the last six months, nearly double that of casual gamers. That equates to approximately $1,420 annually. Heavy gamers spent $116 on DVDs over the last six months (or $232 annually), while casual gamers only shelled out $64. Similar trends hold for consumer electronics, online music downloads, athletic shoes, and CDs. Conclusion: heavy gamers, by way of their spending trends, have an impact on the economy as a whole. Companies who take notice of the trend will try to cater more to the gamer audience. The effect is a greater push for in-game advertising, but to what extent? Lest they forget, gamers hate in-game ads. Keep in mind that the converse ("those who spend a lot of money buy a lot of games") is not necessarily true. See Also:Picture it: special status for Xbox 360, PS3 and Wii console ownersEconomies of scale don't apply to virtual worlds?Joystiq's coverage on in-game advertising[Update 1: clarified some language in the conclusion.]
Will gaming mags go the way of the Dodo?
According to Next Generation, major gaming magazine publisher Ziff Davis (EGM) is exploring the possibility of selling themselves off. Despite rising company profits, its print revenue was down 15%.Online, however, is another story. According to Next Gen, online revenue was up 50% for Ziff, something that makes us wonder what sort of future is in store for gaming magazines as a whole. Because of the boom of the Internet gaming press, are mags really relevant anymore? Do they have anything the majority of the gaming public hasn't already seen, sometimes weeks in advance?Certainly, the future is online media. But how close are we to that actually happening on a wider scale?
Offer for one free year of EGM ends today
"Free" offers on the internet often come with annoying trials and lengthy cancellation procedures, but this one here's legit -- it's actually running from the subscription web site of the publisher of EGM, Ziff Davis Media.You may have seen this offer for 12 free issues of Electronic Gaming Monthly on Joystiq or other game sites out there. Basically, what's happening is the Ziff Davis Game Group is running a subscription drive for the mag, sponsored by the World Cyber Games. Free subs are only on offer through today, however, so get a move on if you want a piece of the printed action.Of course, EGM may be no OPM, but it's helpful for even the healthiest fanboy to get a balanced diet of multiplatform news and information on a regular basis. Also, please note that you're under no obligation to sign up for the World Cyber Games page which follows the EGM subscription one, so you can absolutely get your free mag without registering with the WCG.[Via Joystiq]
