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Sales of video game hardware, software and accessories jumped 10 percent in the United States last year versus 2001. The industry hit 11-digit sales for the first time ever, generating $10.3 billion. Video game software experienced the biggest gains, with 21 percent more in sales and 15 percent more units sold than in 2001. The October release of PlayStation2’s Grand Theft Auto: Vice City, the best-selling game of the year, helped boost figures, as did PS2’s Madden NFL 2003 (the third-best-selling title). Hardware sales actually decreased revenue-wise by 4 percent last year, even though unit volume sales increased by 10 percent. That’s because the major video game producers, Sony, Nintendo and Microsoft, all dropped the prices on their units last year to about one-third their original price. Unlike in 2001, none released major upgrades of the hardware, and so needed the huge slashes to encourage sales.
AOL users vote Ozzy, Terry Tate Bowl's best
America Online members may be the only people left in America not sick of the Osbournes. The AOL Broadband Super Bowl ads poll attracted nearly 300,000 votes the past two days, with viewers choosing the Ozzy and the Osmonds Pepsi Twist commercial as the best ad by a 2:1 margin over Reebok’s Terrible Terry Tate. Ozzy attracted 29 percent of the vote with Reebok (15 percent), Budweiser’s Clydesdales playing football (11 percent) and Sierra Mist’s flying monkey (8 percent) following. The least popular commercials were the George Foreman Grill’s eminently forgettable spot and Cadillac’s running of the bulls, both receiving fewer than 300 votes. In other Super Bowl internet news, Nielsen//NetRatings reports that unique visitors to SuperBowl.com totaled more than 1 million Sunday, marking a 266 percent surge from the previous day. Site traffic has increased the past three years, with just 359,000 logging on in 2001 and more than 900,000 doing so last year. Fans could vote for the game’s MVP on the site, helping traffic to peak during the fourth quarter of the blowout game.
Microsoft: You should have downloaded our patch
The worm that devastated computer systems around the world spread through a vulnerability in Microsoft’s Windows operating system. Instead of offering a humble apology, Microsoft is chastising those who didn’t download the patch available since last summer to fix the glitch. Officials from the Redmond, Wash.-based company say that the lesson from this SQL hole-wriggling worm is that it was wholly preventable. Not surprisingly, internet experts are laughing off Microsoft’s admonitions, saying they’re creating a “blame the victim” scenario. Experts say that although the patch was available, it required time-consuming testing before installation. That’s why many system administrators delayed downloading it. In other Microsoft news, a federal judge has dismissed five consumer antitrust lawsuits against the company filed in Connecticut, Maryland, Kentucky and Oklahoma. The judge ruled that consumers in those states can only collect damages if they purchased software directly from Microsoft. Most PC-buyers receive Windows standard with purchase.
Court finds London cafe violated copyright laws
A London internet cafe has been found guilty of copyright infringement for apparently encouraging customers to download music from the internet. The EasyInternet Cafe chain charged customers $8.16 per CD copy, enraging the British Phonographic Industry trade group and the record labels that sued the company. The cafe chain was founded by Stelios Haii-Ioannou, who also originated easyJet Plc airlines. EasyInternet stopped offering the CD burning service in September 2001, but argued in Britain’s high court that it should not be responsible for the copyright infringements made by customers. The court, influenced by the fact that EasyInternet was charging for the privilege, did not agree. While BPI crowed over the new precedent, EasyInternet and parent EasyGroup did not comment.
Amazon to stick with free shipping for $25 or more
Amazon.com has thrown down a virtual gauntlet. The site decreed last week that it will continue to offer free shipping on orders of more than $25, a promotion started before the holiday buying season. That means many of the sites that changed their policies in order to compete with the nation’s leading e-tailer won’t be switching back anytime soon. The National Retail Federation’s online arm, Shop.org, predicted that consumers will be loath to return to paid shipping now that they’ve enjoyed several months’ worth for free. Amazon noticed that the lower it dropped the requirement price, the higher sales went. Last year the company began offering free shipping for orders of $99, then $49. When fall came, the price fell all the way to $25. Analysts estimate that Amazon lost $30 million with the free shipping deal -- but still managed to turn just its second quarterly profit ever. Other retailers offering free shipping include BananaRepublic.com, which offers the deal on purchases of more than $100, and BarnesandNoble.com, which ships free on orders of two items or more. More than 100 sites listed free shipping offers on Black Friday, the day after Thanksgiving, and nearly 160 currently offer them.
January 29, 2003© 2003 Media Life
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