Activision Acquires Vicarious Visions

Activision Inc., the nation’s second-largest video game publisher, said Thursday it acquired game developer Vicarious Visions, the studio developing the Nintendo DS title, Spider-Man 2. Financial terms weren’t disclosed. Activision said Vicarious Visions has developed five games that have sold more than one million units each and is currently co-developing DOOM 3 for the Xbox with id Software, as well as Spider-Man 2, which will be a launch title for the upcoming PSP platform. In addition, they have developed Game Boy Advance titles Shrek 2 and DreamWorks’ Shark Tale and Tony Hawk’s Underground 2 and Spider-Man 2: Enter Electro for the PlayStation game console.

Under the terms of the agreement, Vicarious Visions’ 100-person studio, headquartered in Troy, N.Y., with offices in Mountain View, Calif., has become a unit of Activision. Vicarious Visions’ management team and key employees have signed long-term employment contracts with Activision. Activision shares fell 38 cents to $21.21 in morning trading on the Nasdaq National Market.

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CES 2005

The annual Consumer Electronics Show (CES) in Las Vegas is now over, and aside from a lot of interest in hand-held devices (MP3 players, phones, etc.) there’s not a lot new in the graphics area. NVIDIA showed its mobile chipsets off as well as some SLI cards, ATI started showing off their PCI Express cards. Infinium was showing off the Phantom, and users could play Thief: Deadly Shadows and Deus Ex: Invisible War, but these played exactly like the PC versions and came preloaded, so there was no hint as to the service itself. The lap-top keyboard/mousing-surface was certainly a nice feature.

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Infinium to Demo at CES, teams up with NVIDIA and Microsoft

Infinium will supposedly be showing the Phantom Game Service at both the Emerging Technology and New Form Factor areas of NVIDIA’s booth, South Hall #35311, and in the Microsoft Corp. booth in the Central Hall, #7145. Details about the Phantom seem to indicate it’s a Windows XP Embedded system running on an AMD processor with an NVIDIA graphics chipset. Release is scheduled for “sometime” in 2005.

If you’re attending CES you might catch Infinium’s president, Kevin Bachus talking at the “Digital Download” session on Friday at 3pm, room N245 of the North Hall.

Side Note: Infinium, along with two other companies, were mentioned in a fax stock scam that started making the rounds in early December. It helped push Infinium’s stock from 20 cents to 74 cents. With all the CES speculation it’s now trading over a dollar. More here.

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Think you want to work in the game industry? Think again…

It’s not just the game industry that does this, but the game industry in particular is rife with under-30 “managers” and “producers” who just can’t understand why employees don’t do what they are told or who can’t keep to a hopelessly optimistic schedule, not having a clue that working near 80 hour weeks for months on end is counterproductive. Don’t get me wrong, the software industry is still learning how to schedule, but there’s enough evidence and experience out there to know better. I still run into so-called software project managers who haven’t read Fred Brook’s insightful book “The Mythical Man-Month“, (or worse, who don’t believe it applies to them) even though this book is nearly 30 years old! If you work or are thinking of working is the software/game industry you should read this book. It’ll come as a shock to realize that more than half the software shops still don’t meet the minimum in Fred’s book.

It turns out that Electronic Arts, the largest game producer in the world, has come under scrutiny. In a posting on LiveJournal.com, a certain “ea_spouse” poured out her frustration that her fiancée’s long hours What irritated ea_spouse most, she said, was that Electronic Arts appeared to exploit her fiancée’s love of video games. Like many working in the industry, he grew up as part of the first generation to start playing video games at a young age. “It’s so difficult, because we love the game industry,” ea_spouse said “Games have been a part of our lives for so long.” But, she said, “he hasn’t been home for dinner to stay for months. It’s a constant stress. I can’t see him suffer without suffering myself. I noticed a change in him. All his interests have gone away. He’s constantly on the verge of getting sick. He’s pale and unresponsive.

Both she and her fiancé understood long hours came with the job. It came as a rude shock when EA set “mandatory” hours from 9am to 10pm, six days a week. And then later set it to seven days a week. “They were just so pompous about it.” she said. This has caused a storm of controversy about working environments in the game industry and the “sweatshop work conditions” at EA in particular.

On July 29, 2004, Jamie Kirschenbaum filed suit against EA in San Mateo Superior Court. Kirschenbaum is an image production artist at EA. After the ea_spouse posting San Francisco law firm Schubert & Reed has initiated legal proceedings to start a class action lawsuit on behalf of a group of EA employees. “We are seeking unpaid overtime for a good number of (EA) employees who weren’t (properly) paid,” Schubert said. “EA contends they were exempt. We contend otherwise.”. EA says that non-managers don’t have to get paid overtime. It’s my opinion that EA should bite the bullet, pay everyone for overtime, and fire all the managers who went along with this crap. If the managers didn’t understand that they employees were the valuable resources they are, then they can’t be trusted not to watch out for them. There’s a difference between managing and dictating, the EA managers obviously did the easy thing and screwed their underlings rather than push back on obviously hopelessly optimistic schedules. Think I’m being harsh? A few days after ea_spouse posted her story, a software engineer fired from EA posted his own story under his real name. Among his accusations: His manager had hung a sign in the office that read “Open 7 days”. “So I’m posting under my real name — you have to stand up to this type of thing or it will continue. And every company will become EA so that can compete… Remember, you can’t spell ExploitAtion without EA.” Kudos Joe!

Additional feedback has been the posting of the hiring letters for EA’s Senior Vice President of Human Resources Rusty Rueff and Executive Vice President and Chief Financial & Administration Officer Warren Jenson. Not a good think to know that the jerk forcing you to work 80 hours/week not only makes a large six-figure salary, but also gets a bonus if you meet his deadline.

The good thing is this has started a “quality of life” issue in the whole game industry. The IGDA, gamasutra.com and Game Developer magazine have all taken note. If anyone wants any quotable, true, jaw-dropping stories about bad management during crunch-mode, I’ve got a bunch.

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Ubisoft: No talks under way with Electronic Arts

French video games company Ubisoft Entertainment SA’s board late Wednesday said no negotiations are currently held‘ with U.S. competitor Electronic Arts Inc., which last week acquired a 19.9 percent stake in the company. Ubisoft reiterated that it considers Electronic Arts’ purchase as unsolicited and hostile, as it lacks information about intentions of the Redwood City, Calif.-based company. Electronic Arts, the world’s leader in video games publishing, Dec. 20 bought 19.9 percent of Ubisoft’s capital from Talpa Beheer BV, a Dutch investment fund owned by John de Mol, co-founder of the TV production group Endemol. Executives of Electronic Arts, which has a market value of about $19 billion, have said the stake could be useful if Ubisoft decides it wants to give up its independence. Most investors expect Electronic Arts to be preparing to bid for the French company. Shares of Electronic Arts were at $62.93 in early trading Thursday, down 51 cents, or 0.8 percent, on the NASDAQ Stock Market.

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Infinium needs MONEY!

In its latest filing with the US S.E.C. Infinium says it’ll have to spend $US 22.2M over the next 12 months in order to execute its “current business strategy”. Basically it says it’ll need $US 11.5M to launch the Phantom Game Service and sell the first 10,000 units. Then another $US 10.7M to “achieve cash flow break even”. Then, as if that weren’t enough, it says it anticipates having to spend another $US 20.2M over the next 16 months for promotion and services.

Tough, since according to the Sept. 30 statement, it has $US 20,991 (yes, 20K) in the bank, leaving it a bit short. The company said it has hired SG Capital to help it raise the funding it requires, and indicated that it was already talking to a number of potential backers. It also plans to discuss a debt-for-equity scheme with its current creditors. But it warned: “If we are unsuccessful in raising capital or we do not launch the Phantom Game Service when currently planned, we will need to curtail our proposed spending.

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Halo 2 – record $US 125 million in first day of sales

Wednesday Microsoft reported sales of 2.38 million units for the game in the 24 hours since it went on sale in the United States and Canada at 12:01 a.m. Tuesday. With the standard version of the game priced at $US 50 and the deluxe edition going for $US 55, the $US 125M tally handily beat the $US 100M first-day sales predicted by Microsoft Vice President Peter Moore. The game’s $US 125M opening day lives up to Microsoft predictions that “Halo 2” would eclipse even the biggest Hollywood openings. “Spider-Man” holds the record for biggest opening weekend box office take, raking in a comparatively paltry $US 114M over three days. The Incredibles, launched this past weekend, drew a $US 70M in its first three days. Time to tell Uncle Bob to take a hike next time he ask how “that game job” is going.

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David Eberly Rejoins NDL

NDL, the company that makes the Gamebryo middleware to help speed game development, announced that David Eberly has rejoined the company. Eberly left in 2000 to serve as the president of Magic Software, but has now rejoined the company to continue to work with NDL’s technology team. Eberly previously was NDL’s Director of Engineering and is now employed by NDL to work on future versions of their Gamebryo technology.

“Dave is a brilliant technologist, and one of the leaders in the field of physics and 3D graphics,” NDL President and CEO John Austin told GameDAILY BIZ. “He has PhDs in Computer Science and Mathematics, and has written several books on the subjects.”

Eberly is an industry veteran and well known mathematician, particularly as it applies to physics and 3D graphics for video game design. He contributes regularly to conferences and message boards in the game development community and is the author of “Game Physics,” “3D Game Engine Design,” “3D Game Engine Architecture,” and “Geometric Tools for Computer Graphics.” In addition to his responsibilities with NDL, Eberly will continue his role as an editor for the book series from publisher Morgan Kaufmann on Interactive 3D Technology.

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