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Redstone to sell Midway stake for $100K
The week begins with more bad news for financially-hobbled Midway. Just days after finding itself on the business end of a delisting notice from the New York Stock Exchange, the company's majority stockholder, Sumner Redstone, is now preparing to row away from the sinking ship entirely. According to the Wall Street Journal, Redstone and his holding company, National Amusements, hope the separation will help breathe new life into the firm's suffocating $1.6 billion in debt. Redstone is expected to inflict sell his 87% controlling stake in the troubled publisher to private investor Mark Thomas -- obviously someone who enjoys a good fixer-upper -- for the bargain basement price of about $100,000, or $0.0012 a share, well below Midway's previous closing price of .38 a share. The WSJ also points out that the sale is but one point in what has become a highlight reel of bad investments for Redstone, who sunk millions into Midway in hopes of the company's heroic return, only to see it do a fatality on his bank account.
Machinima.com gets $3.85 million in funding for business expansion
Machinima and MMOs just seem to go hand-in-hand so well. What's more fun than letting your guildmate friends be dancers in your latest music video spoof, or thespians in the latest episode of your dramatic series based on their World of Warcraft characters. It's for this reason that machinima has gained so much popularity in recent years. It's a way for everyday people to expand upon their fantasy lifestyle in an MMO and bring it out in the form of artistic expression. So it should be no surprise that a website like Machinima.com would be so popular and successful. Recently they've upped the ante a bit in the form of $3.85 million in funding from MK Capital and other private investors. This money will be used to expand Machinima.com's business plans, allowing them to appoint five entertainment industry leaders to its Board of Directors.
Riccitiello blows $1 million on EA stock
John, Ricci -- can we call you Ricci? -- what are you doing, man? Look, we know being the big shot CEO of one of the world's biggest publishers affords you plenty of opportunity to, well, afford a bunch of expensive stuff ... but blowing your cash on EA stock? Worse still, blowing it on 42,500 snippets of stock, to the cumulative value of just over a million dollars? Sounds like a bad idea, honestly.Perhaps you haven't heard, but EA lost quite a bit of money in the last quarter. It seems your company's been spending dough on developing -- you won't believe this -- "new" IP. Do you really want to support a company that's dumping funds into crazy, non-sequel projects? There's just no way that's going to fly. You're better off investing in those Activision guys. Trust us, people are never ever going to get tired of Guitar Hero 27, Tony Hawk 19 and Tony Hawk Presents Guitar Hero Featuring Spider-Bond. See you in the short-term, Ricci.
Over $100 million invested in Trion and its unusual distribution platform
Trion announced that it has managed to get another $70 million in invested funds, bringing the total amount to over $100 million. For reference: that's somewhere in the ballpark of the development cost Grand Theft Auto IV, and about half of what Blizzard has spent on World of Warcraft since its 2004 launch.Trion is the company co-founded by EA alum Lars Buttler and Might and Magic creator Jon Van Caneghem, which announced that it'll be making a game in concert with The Sci-Fi Channel, as well as a fantasy console MMO we know little about.We've talked a bit about Trion's plans and business model before, but here's a refresher: it is creating development tools for making games that will run completely server-side. The graphics will be drawn on the client, but everything else -- physics, game logic, etc., will occur on the server and be downloaded to the user's computer. This serves two important functions. It greatly reduces the minimum hardware specifications for games and it makes piracy extremely difficult. We're not going to say yet that it makes piracy impossible, because, well, "life finds a way."
EVE Evolved: Money for nothing
In most MMOs, making currency without actually playing usually involves rule-breaking macro-farming which risks getting your account banned. In EVE Online, however, a number of viable options exist for making ISK with absolutely no effort. From hiring research and development agents to public investment schemes and even a player-run bank, there are plenty of ways to make ISK in EVE without even logging in.Investment Schemes:In the market discussion forums, players can sell shares in their company and present a business plan to potential investors. The corporation receives ISK in exchange for its shares and agrees to make regular dividend payments to all shareholders. Buyers have to trust that the company owner won't just run off with their ISK, so only the most trustworthy players have managed to successfully start very large investment schemes.In this article, I look at the different ways you can make ISK with virtually no effort, in some cases even if your account is inactive.
AUSTAR content with leaving the HD to Foxtel
Here's an interesting one. Australia's AUSTAR (a pay-TV provider, for those not in the know) is seemingly not in any hurry whatsoever to do as staunch rival Foxtel did and begin offering HD to its customers. Rather than catching up to the competition (and splurging on an investment), AUSTAR is pinching its pennies. According to the company's chief executive, he doesn't feel "a huge amount of pressure" to embrace high-def, suggesting that the increase in customers from the addition of high-definition isn't worth the steep cost. Of course, he did admit that HD would likely be in the carrier's future, but probably not until "mid-2010" or later. C'mon people, how many times do the experts have to tell you? Build it (first), and they will come.
$345 million invested in virtual worlds so far this year
"There's gold in them thar online worlds!" That, at least, is the diagnosis of the guys over at TechCrunch Virtual Worlds Management (they're actually the ones who did the research for second quarter) -- they tallied up all the money given to virtual world developers this year, and ended up at a whopping $345 million. That is a lot of investment dollars sunk into worlds that don't exist -- about the gross domestic product of Western Africa's Guinea-Bissau. Which, come to think of it, doesn't sound quite as impressive as we'd hoped, but still, venture capitalists clearly think this online thing might have staying power.Turbine was one of the big winners so far this year -- their $40 million investment will give the Lord of the Rings Online and Dungeons and Dragons Online developer lots of leeway in their "business strategy shift." But 9You, as previously reported on this very site, was the biggest cash-in so far this year -- $100 million was passed out to them to work on its product called GTown.Of course, investment only means so much, and there are only so many hours in the day people can spent in virtual environments. Some of this money is being thrown away. But we're only halfway through 2008, and deals are being brokered left and right -- it's a virtual world boom!
Intel spearheads SpectraWatt spin-off to create photovoltaic cells
Famed chip maker Intel is doing more than just buying up Renewable Energy Certificates like they're going out of style. It's cranking things up with a spin-off outfit that will soon be creating photovoltaic cells for solar module makers. Intel Capital is pouring some $50 million into SpectraWatt Inc., and it's being joined by Cogentrix Energy, PCG Clean Energy and Technology Fund and Solon AG. Aside from making that dough, the new company will also "concentrate development efforts on improvements in current manufacturing processes and capabilities to reduce the cost of photovoltaic energy generation," and if everything goes smoothly, it should break ground on its manufacturing and development facility in Oregon in 2H 2008 (with product shipping in mid-2009).
Comcast sinks money in P2P video-delivery startup -- imagine that
After being accused of slowing traffic on peer-to-peer applications and eventually fessing up at least somewhat to controlling throughput, Comcast has went and sunk some cash into a P2P video-delivery startup. Seattle-based GridNetworks announced this week that the mega-corp would make "an unspecified investment in the company and collaborate on developing so-called peer-to-peer file-sharing techniques that are friendly to internet service providers." Outside of that, what the deal means for either party has yet to be fully revealed, but regardless of future plans, one can't help but chuckle at the glaring irony of the whole ordeal.
Huawei looking for foreign investment to aid attack on US market
Though it's recently cracked the tough outer shell of the rough-and-tumble US wireless market, Huawei's got a long way to go before it can stand toe-to-toe with the Samsungs and LGs of the world. The economy's seen better days, the market is nearly saturated, and it already seems like there might be a couple players too many for profit, so what's an up-and-coming Chinese firm to do? Invite foreign investment, naturally. Huawei has retained Morgan Stanley to help it line up investors that can bulk it up enough to wage a broadsided offense against the low-end American market, leaving the mid and high-range lineups to the well-established companies that are already making a splash up there. It's pretty rare for a Chinese corporation of Huawei's size and clout to open itself up to cash from outside Chinese borders, so the deal's expected to attract a lot of interest -- theoretically setting the scene for plenty more of its wares on US carriers' shelves. We're all for healthy competition, and if Huawei can shake things up a bit, we're all for it.[Via Phone Scoop]
Verizon unloading $86 million on Rhode Island network expansion
Verizon's doing more than just blessing Oregon customers with more HD content -- it's also preparing to bring its fiber-based services to even more folks in the Ocean State. $86 million has been set aside to invest in network expansion within Rhode Island, promising FiOS TV to an additional ten communities (specifics were solely absent) and giving another 50 union-represented technicians and customer service representatives a job. Yep, all that new cabling means expanding its Providence-based Fiber Solutions Center, but it failed to mention when the new hires would take place. Lastly, it's planning on upgrading the internet services in Cranston, Hope Valley, Jamestown, Narragansett, Pawtucket, Providence, Tiverton and Weekapaug, giving each of those locales download speeds of 7-megabits per second.
Rumor: Eidos lays off marketing, PR, and sales departments following Warner Bros. investment
Our hearts were warmed to hear of SCi's seeming salvation as Warner Bros. Home Entertainment acquired 171 million shares in the floundering company (for nearly £60 million) -- an investment that would "benefit of all [their] major franchises" and put the once-great publisher Eidos back on the map. However, according to 1UP, a number of insiders have reported that this act of gaming industry cartography could have some far less publicized consequences.Much like the pushy girlfriend who doesn't allow you to bring your autographed Erasure poster into your new apartment, Eidos may have recently kicked their entire marketing, public relations, and sales departments to the curb following their Warner Bros. bailout, according to the 1UP tipsters. Whether this was a stipulation of the WB deal, or a continuation of SCi's systematic operating cost reduction (or if the information is even legit), we're not sure. We just hope they don't fire the one guy who wants to make a Mister Mosquito sequel.
Realtime Worlds grabs $50 million
Techcrunch is reporting that developers Realtime Worlds (makers of last year's Crackdown, which could be an MMO, and the upcoming All Points Bulletin, which we heard lots about at GDC) have picked up a whopping $50 million in funding from a round of investment capital, including lots of it from Maverick Capital.So good news for APB fans -- of course, it's just a fraction of that billion dollars that Activision Blizzard CEO Bobby Kotick claims anyone will need to take on World of Warcraft, but $50 million buys a lot of artists, programmers, and servers, all things that a great MMO needs for a strong launch. APB is still in the development stages of course -- we've heard that it'll drop this year, though at this point (and with the extra cash going into a little extra development), we're probably looking at a spring 2009 release.
The Daily Grind: monthly fee or microtransactions?
We have covered this peripherally before, but while that post focused on buying items through microtransactions, we'd like to ask you: what's your preference? A few MMOs have monthly fees that are also set up for discounted bulk purchases -- you pay less per month if you buy, say, 6 months at once -- but then there's the oh-so-enticing free-as-a-bird model, with microtransactions for better gear thrown in.But it's not just about items or time, is it? Do you feel that paying a monthly fee to your favorite MMO is an investment in your gaming future? Is it enough of a reward for the development team? If you're playing a free-to-play microtransactions game, can you still vote with your dollars if your favorite class gets nerfed? All things being equal, which is better?
Investment of $1 billion+ wouldn't dethrone WoW, exec says
We all know that World of Warcraft is the big daddy on the MMO block. Hell, with the amount of money Blizzard is raking in, World of Warcraft is the big daddy on the gaming block. And what's more, it's still growing. According a report, Activision CEO Bobby Kotick stated in an investor meeting that his company had done extensive research on the MMO category, and came to the conclusion that even a game bolstered by an initial investment of $500 million to $1 billion would still probably have a hell of a time competing in the same space as the Blizzard juggernaut. This likely came as part of their research prior to the massive merger with Vivendi Universal late last year.Kotick points to the relative failures of big companies like Microsoft in trying to develop a competitive product as proof in the pudding. Even companies with decades-long track records of extracting money from lose-lose situations don't stand to gain much from trying to directly compete in the same space. For his part, Kotick believes it's the ingenuity of the guys at Blizzard that is really the deciding factor. Since no amount of money is liable to recreate the success of Blizzard, they simply found the prospect of buying them out more amenable. If you're wondering why it seems like so many MMO development houses are scaling down their products to make them more niche oriented, this is why. Throwing money, even a billion dollars, into a competition with World of Warcraft is only likely to end in tears.
SuddenLink makes investment in Eastern NC, plans for more HD channels
Details are admittedly scant on this at the moment, but what is clear is that SuddenLink Communications is writing a check for $16 million in order to improve services in and around Eastern North Carolina. According to Phil Ahlschlager, SuddenLink's North Carolina Regional Vice President, the capital improvements "will enhance the overall quality and reliability of the company's services." Additionally, the 95,000 or so homes in the area currently using SuddenLink can reportedly expect "faster internet connections, better phone service and more HD channels," though we're not told when the improvements will start nor what high-def channels are slated to get added. Looks like it's wait-and-see from here, sadly.
MMOs for kids are just good business
According to an Internet Investment Guide released by JP Morgan, and graciously digested for us by the fine folks at Virtual World News, the wide world of the massively multiplayer is not one large mass of gaming goodness as we typically believe. According to JP, from the perspective of potential investors, there are two segments of the MMO market worth looking at; there's the part of the industry aimed at adults with which we typically concern ourselves, and there are virtual worlds aimed at children. While adult MMOs are likely to be an area of growth in the new year, they recommend that investors be "bullish" on children's MMOs because they're already incredibly mainstream, and represent a surer avenue for growth.If you've ever witnessed the ravenous hunger with which 'tween girls pursue Webkinz, the collectible stuffed animal - MMO crossover, you'll immediately recognize the salience of JP's findings. Parents support these sorts of games because they represent closed areas of the internet where kids can safely entertain themselves on the computer without much concern about illicit content or child predators. Kids like the games because they're usually specifically tailored to their tastes and age level. And developers support them because they're comparatively easy to develop and, with the appropriate retail tie-in a la Webkinz, make companies money hand over fist. So if you're looking for a good investment, look past an Activision Blizzard, and pick up a kid-oriented company instead.
IGG receives $4.5 mill in investment capital
Internet Gaming Gate (IGG to its friends), who you may recognize as the company behind such free to play MMOs as Myth War Online, Zu Online, and Tales of Pirates, has announced that they have received a new chunk of funding to the tune of $4.5 million USD from an investment capital firm to expand their operations. Having only launched in 2006, IGG has already put out an impressive number of titles and boasts a user base of over 3.5 million. If we had any doubts about the efficacy of the free MMO business model, this vote of confidence has to quell those doubts at least a little.The funding was provided by IDG Technology Venture Investments, a subsidiary of the International Data Group, a body whose primary goal is to link Silicon Valley to the burgeoning Chinese technology market through the use of venture capital.
GigaMedia partners with XLGames for world-rocking new MMO
GigaMedia Limited has issued a press release to say that they are investing in and partnering with XLGames, a development studio headed by Jake Song. Song is known for being the creator of Lineage and also The Kingdom of the Winds. GigaMedia has gained board representation and some strategic rights to XLGames after their investment.President of GigaMedia Thomas Hui said, "We are thrilled to partner with such a tremendously talented team and look forward to working closely with them on their new MMORPG, which should rock the world." There are no other details yet on this new MMO, but Song brings quite a pedigree to the project with the aforementioned games and having been NCSoft's Executive Vice President at one point, so we will fortify nearby buildings in anticipation of further announcements.[Via Yahoo Finance]
Sony sells "substantial" stake to Dubai investment firm
Stringer-san, Hirai-San, everyone at Sony, say hello to your new part owners: Dubai International Capital, run by UAE Prime Minister and ruler of Dubai Sheikh Mohammed bin Rashid Al Maktoum. According to the Journal the investment is for a stake under 5% of the total company since there were no legally-required Japanese security filings to indicate otherwise. No real idea how much this chunk of Sony went for, but whatever it cost we're sure it was only a drop in the bucket for a dude with enough money to make Billy G. and Carlos Slim scoot over a seat at dinner. BTW, Sheikh RRAM (can we call you that?), do us a solid and get Sony to resurrect Aibo and QRIO, cool? Much love. [Warning: subscription req'd for read link]
