As a September deadline looms for submitting amicus briefs in the Schwarzenegger v. EMA Supreme Court case, both sides are still hard at work recruiting advocates.

In an excellent Law.com story on the subject, a few claims and quotes jump out, including a comment from Activision Blizzard EVP and Chief Public Policy Officer George Rose, who said, “We wouldn't be surprised if the number [of states siding with the industry] was equal or exceeded the number backing California.”

Meanwhile both California Supervising Deputy Attorney General Zackery Morazzini, who will argue California’s side on November 2, and Louisiana Department of Justice Appellate Chief S. Kyle Duncan, who authored the brief for states backing the California law, seem to think that Utah Attorney General Mark Shurtleff “is taking the lead in drafting a brief supporting the industry and discussing it with AGs of other states.”
Read More

Target is getting serious about the used games market today, with the rollout of in-store trade-ins at select retail outlets in California. The trade-in program launches today in Northern California, with plans to expand it next month at more Target locations. By year's end Target hopes to offer trade-ins at over 850 stores nationwide. In addition to the in-store trade-ins, consumers will also be able to go to the Target website to trade-in used electronics and DVDs as well - for store credit. Apparently, you'll also be able to trade in select electronics too like iPhones and cellphones.

Target has been re-evaluating its videogame business in 2010, and adjusting accordingly to make the shopping experience more palatable for consumers. The used game trade-in initiative is probably part of these changes - and a way for Target to cut into the massive profits that specialty retailer GameStop makes off used games. Or you could just chalk this up to Target following the crowd: after all, if Best Buy is doing it, why shouldn't they?

After staying on top of the UK retail charts for 41 weeks, Activision's Call of Duty: Modern Warfare 2 has earned the distinction of being the best-selling retail game "ever" in the United Kingdom. The game took down the previous record holder, Brain Training.

According to retail tracking data from Gfk Chart-Track, Modern Warfare 2 managed to stay in top ten for 38 out of 41 weeks - falling below that threshold last week. It probably didn't hurt the bottom line when the game moved 1.23 million copies on the day of release and brought in around £47 million ($77.85 million) for Activision in the UK; in the U.S. the game grossed around $550 million in its first five days of release.

A pretty impressive accomplishment for Activision and Infinity Ward, though most of the people that worked on it no longer work at the wholly-owned Activision studio. Let's see if the new IW is capable of filling the shoes worn by the founding members of Respawn Entertainment.

Tuesday, November 2, 2010 at 10 AM ET is when oral arguments will be made in front of the Supreme Court of the United States for case number 08-1448, better known as Schwarzenegger vs EMA.

The one-hour long session is the first on that day’s calendar (PDF) and will see the Court answer a pair of questions related to a California state law originally authored by State Senator Leland Yee, which sought to ban the sale of violent videogames to minors.

The two questions posed to the Court are: Read More

Target is feeling a fair amount of heat over donations it made to a Minnesota politician who opposes gay marriage this week. According to a Politico report, the company isn't backing down from its decision to do that and has rebuffed suggestions that it donates a similar amount to pro-gay candidates. Decidedly liberal group MoveOn.org is cheesed off about all of that and is taking the fight to airwaves and the street.

The group has created a 30-second ad slamming Target and asking consumers to boycott the nationwide retailer. The battle is all about Republican gubernatorial candidate Tom Emmer, who received a $150,000 donation from Target. Human Rights Campaign and other gay rights groups are trying to apply pressure and turn public opinion against the company for its support of the would-be governor because of his staunch opposition to gay marriage.

We're not sure that it is working, but MoveOn is certainly a powerful force when it excerts to full measure of its wrath on a target.

Target this week issued a statement claiming that it "maintains and fully supports the gay and lesbian community in its workplaces and through corporate sponsorships." Read More

Another day, another story about StarCraft II moving massive units at retail. According to NPD Group retail data for the month of July, StarCraft II was the top-selling game for the month in the United States, beating out console games like NCAA Football 11 and LEGO Harry Potter.

Blizzard’s real-time strategy game sequel for PC sold 721,000 copies at retail stores in July, making it the top-selling game of the month. Compare that to NCAA Football 11 from EA Sports, which hit the 692,000 units mark during the month (Xbox 360, PS3, PS2). The only other game that came close was Lego Harry Potter, which sold an impressive 401,000 units across multiple platforms during the month. Read More

Bob Geistman, Senior Vice President of Sales and Marketing at entertainment distribution company Ingram Entertainment has been reelected to his post as Chairman of the Board of Directors for the Entertainment Merchants Association (EMA), according to a note on Home Media Magazine.

New additions to the board included Dish Network’s Bruce Eisen, Blockbuster’s Rod Murray, Netflix’s Erin Ruane and Amazon’s Steve Oliver. Current members reelected included Vice Chairman John Marmaduke from Hastings Entertainment, Treasurer Marty Graham from Rentrak, Secretary Bill Lee from Toys “R” Us and Executive Committee Members At-Large Troy Peterson from Target and Chuck Porter of Giant Eagle.

In other recent EMA news, the organization inducted the 1988 movie Heathers into its Hall of Fame, where it reside alongside Casablanca, The Godfather, Grease, Raiders of the Lost Ark, The Wizard of Oz, and Scarface.
Read More

Minneapolis-based retailer Target has raised some eyebrows concerning a $150,000 donation the company made to a “Republican-friendly” political group in the state.

As if choosing a political side wasn’t enough to anger some Target shoppers, the contribution to MN Forward is also being used to run ads for Republican Gubernatorial Tom Emmer, who, according to CBS News, opposes same-sex marriage, angering another whole segment of consumers.

The embedded video shows former Target customer Randi Reitan, who has a gay son, returning a full shopping cart of merchandise to Target in protest over the donation.

Target donated $100,000 in cash to MN Forward and another $50,000 in brand consulting.  CBS also reports that Target’s fellow Minnesota-based retailer Best Buy donated $100,000 to MN Forward as well.
Read More

In an interview with Computer and Video Games, THQ's Global publishing executive VP, Ian Curran, gave his opinions on DRM and the possible future of the $60 retail game.

Speaking about the cost of retail games, Curran said that the industry may move towards a micro-transactional market where the whole game isn't necessarily in the retail box. Citing the free-to-play MMO market as an example, users play the game and then buy additional content they want.

The problem with such an example is that most free-to-play MMO games can be played without ever buying extra content, whereas big publishers will probably charge for features that players consider essential like multiplayer. Of course, with a lower price, consumers might find paying extra for multiplayer more acceptable. Here's a bit from the interview: Read More

According to data gathered by research firm NPD Group, digital sales of PC games have shifted so much that they are nearly even with retail box sales. NPD Group said that full-game PC digital download purchases reached 21.3 million in the U.S. during 2009, slightly fewer than 23.5 million in retail box sales during the same period. Still, this is a dramatic shift for those companies that deal in the sale of digital content. These numbers put PC digital downloads at 48 percent of unit sales for PC games last year, and accounted for 36 percent of dollar sales, according to NPD Group estimates.

A shift in one direction means that traditional retail sales had to decline in 2009. Retail sales of PC games took a 23 percent tumble in the U.S. to $538 million in 2009, according to what NPD reported in January this year. Read More

MCVUK carries word from the Video Standards Council (VSC) that a mandatory shift to the Pan-European Game Information (PEGI) ratings system in the UK will not be legally enforceable until April 1, 2011.

The UK’s Digital Economy act dictated that PEGI would become the single system for rating games, replacing a current implementation that utilizes PEGI in conjunction with British Board of Film Classification (BBFC) ratings.

While the Digital Economy bill passed in April of this year, the delay was blamed on it not yet being “made effective.” A portion of a statement MCV obtained from the VFC reads: Read More

Kmart is trying something new in its stores related to game sales that some consumers may find useful: user reviews. Members of Kmart.com's MyKmart online community can submit reviews for game titles that could end up in stores, stuck on glass display cases.

Kmart suggest that members write short, concise and constructive reviews that the average consumer can understand. Reviews will be short and to the point – two sentences or so. Here's an example for a Red Dead Redemption review from a user:

"You'll hunt and search for treasure in a world teeming with danger. One of the best games of 2010."

I assume they will pick the best reviews though I have my doubts that negative reviews will find their place in stores, because bad reviews don't sell games. Perhaps I’m just too cynical..

More details can be found at MyKmart.

Source: Game | Life

Rep. Bill Delahunt (D-Mass.) is proposing a tax on online retailers that could affect online interstate commerce profoundly, and online retailers are deeply concerned about the impact.

Delahunt proposes legislation that would give states, many of whom are facing record budgetary shortfalls this year and in the foreseeable future, authority to enforce a streamlined interstate sales tax system. According to Politico, two dozen states have signed on to this interstate compact.

Basically, states would have the power to impose sales tax on companies that do business with customers in their jurisdictions. The Supreme Court has already ruled that states can only levy sales taxes against companies that have a physical presence in a given state. Nevertheless, Delahunt wants to give states a new revenue stream. Here's what he had to say about the new legislation: Read More

The Entertainment Consumers Association (ECA) has drafted the Brooklyn Law School as a contributor to its amicus brief that will eventually be submitted to the Supreme Court in response to Schwarzenegger v EMA.

Students from the Brooklyn Law School’s Incubator & Policy (BLIP) Clinic will provide legal research and other assistance to the ECA and the law firm Hughes Hubbard & Reed LLP as they draw up the "friend of the court document." The resulting output will be sent over to the nation’s highest court on September 17 of this year.
Read More

While the Entertainment Software Association (ESA) has until September 10 to file its own brief with the U.S. Supreme Court in regards to Schwarzenegger v. EMA, the organization issued a statement in reaction to a brief filed by the state of California on Monday.

Trumpeting the ESA's dominating string of victories in such cases, and perhaps attempting to take some of the wind out of the sails of California State Senator Leland Yee, ESA President and CEO Michael Gallagher stated: Read More

Speaking at a Best Buy shareholder meeting at the end of June, a Parents Television Council (PTC) Chapter Director urged the retailer to display M (Mature)-rated games on higher shelves.

Minnesota Chapter Director Phyllis Plum initially praised Best Buy’s efforts in enforcing videogame ratings, but then asked the company to “do more,” stating, “…speaking as one of your customers, a shareholder and most importantly, a grandmother, I’m asking why mature-rated video games cannot be placed on higher shelves.”

Plum cited PTC mystery shoppers as reporting that M-rated games were appearing on lower shelves, “accessible to children.”

She urged Best Buy to: Read More

Movie Gallery filed for Chapter 11 in February of this year, and then announced in April that it would close and liquidate all of its locations, including its Hollywood Video and Game Crazy storefronts. Now a battle is gearing up over the company’s sizeable new and used game inventory.

Movie Gallery asked a bankruptcy court on June 14 to approve a sale of its videogame assets to COKeM International Ltd. for $3.025 million, according to a story on Forbes.  Read More

In what might be a sign of the economic times, a UK videogame retailer has gone beyond accepting trade-ins and is now allowing gamers to pawn consoles and games for quick cash.

Gamestation, which boasts over 260 store fronts in the UK, will give gamers up to 28 days to reclaim their pawned items before they are added to a store’s stock and sold, according to Made2Game.com. Those interested in the “Buy Back” promotion need only to be 18-years of age or older and posses identification.


|Via CVG|

While you (and I) were enjoying the Memorial Day weekend, the owner of an independent videogame store in Columbus, Ohio recorded and uploaded a new YouTube video in which he further assails the  Online Pass initiative of Electronic Arts.

EA’s measure, for the uninitiated, would tie online gameplay to codes that come with select new titles, meaning that purchasers of used games, which feature Online Pass, would need to shell out $10.00 for a new code in order to play online. Read More

While GameStop might be on board with it, the owner of a Columbus, Ohio independent videogame store (Level One Games) is “completely appalled” at Electronic Arts’ Online Pass and claims the introduction of the measure is “about destroying the buy, sell, trade business.”

EA's initiative will see new games come with one-time use codes for online play. Anyone who purchases a used game that features Online Pass will need to pony up $10 in order to access online features.

The owner outlines his take on how EA’s Online Pass will affect his business and consumers, saying “I have to assume that most businesses, knowing that you’re going to have to pay an extra $10 to buy an Online Pass for that game, are going to give less in trade and sell the games for less used. At least that’s the way I would do it.”
Read More

Target announced today that it is revamping its game space to create a more enjoyable "shopping experience." But buried amongst the hyperbole and self congratulatory bullsh*t, Target did mention something that may actually be useful for consumers - video game Learning Centers.

Target's new video game Learning Centers will feature a 40" high definition touch screen where guests can read reviews, learn about game features, sort by ESRB ratings, view in-store price and inventory, receive recommendations on best sellers, or page a team member for assistance; and Trial Stations allow guests to try out the latest titles before they buy. These enhancements will help eliminate common decision-making questions, such as what games are age-appropriate, how many players can participate in a game, and which types of controllers are required.

We hope the learning centers are as intuitive and educational as Target promises. Parents, grandparents and consumers with only a basic understanding of video games need all the help they can get to avoid buying crappy games.

Activity is resurfacing around a New York Bill that would relegate games that “glamorize the commission of a violent crime, suicide, sodomy, rape, incest, bestiality, or sado-masochism” to a sealed and locked container in retail or rental outlets.

A meeting in regards to the Bill (A2837) is set for April 27 in front of the New York Assembly Committee on Consumer Affairs and Protection. As it was explained to us, this simply means that politicos will gather to discuss the issue in order to appease constituents, all while Johnny Taxpayer foots the bill.
Read More

Illustrating how few people pay attention to the terms and conditions of anything, UK retailer GameStation— as part of an April Fool’s gag—added a line to the fine print of its website that granted the souls of agreeing customers to the merchant.

The “Immortal Soul Clause,” as detailed by Bit-Tech, was slipped into a GameStation online sale promotion. 88.0 percent of the website visitors did not notice the clause and effectively signed away rights to an immaterial part of themselves (that may or may not exist).

Those who did notice the clause, and opted out, were awarded a £5 gift voucher.

For its part, GameStation said that it would not enforce the clause and plans to issue nullifications via email to those who were duped.

All in all, 7,500 customers reportedly signed away their souls.

Read More

In response to a consumer suing retailer GameStop over the code for free downloadable content from a used game already being used (by the original purchaser), UK retailer GAME has taken a proactive step to avoid sharing a similar fate with its U.S.-based counterpart.

According to MCV, GAME has fashioned warning stickers that will warn potential purchasers to check with a store’s staff for more information on the availability of a used game’s downloadable content.

This solution, a GAME spokesperson told MCV, would allow the staff to “explain clearly the difference so that our customers understand the benefits of buying both pre-owned and mint [new].”

GAME started using the stickers in its stores last week.


Thanks Andrew!

Australia’s Sun-Herald recently conducted a field test to determine local retailers adherence to videogame ratings.

The sting used a 14-year old boy named Peter (pictured), who was ‘described as looking even “younger than his age.” Peter ended up visiting six brick and mortar stores in which he attempted to purchase an MA15+ rated game. While the exact stores visited were not disclosed, it appears the focus of the investigation was more on department or chain stores rather than videogame-only retailers.

In any case, five of the six stores sold the boy a game rated outside of his age range. Peter remarked that he was “shocked how easy it ended up being” to purchase the games.

Groups on both sides of the R18+ rating debate used the sting to support their view on the subject.
Read More

While it should be no surprise that Australian videogame retailers support the addition of an R18+ videogame rating category, as it would help to fill their coffers, some merchants have gone a step further and offered to display R18+ rated games in whatever fashion suits the government.

If an R18+ category was enacted for videogames, both GAME and Gametraders expressed to GameSpot their willingness to setup a separate section in stores for the adult-rated games. The pair also said that, if need be, they would follow the path of how R18+ movies are now merchandised in South Australia—housed in plain, generic covers.

Gametraders’ Marketing Director Chad Polley:

If it has to be done we will do it, but it would be our preference to place them in their appropriate platform section, up high, out of the view of minors. This is, of course, providing that the cover art is not deemed inappropriate for general public viewing.

A GAME spokesperson agreed, saying that although the plain wrappers would not be an “ideal solution,” they would acquiesce to any new legislation that the government enacted.

EBGames, who has shown their support of the addition of an R18+ rating category by plastering their stores with signage and inviting customers to sign a petition, was a little more reserved when it came to discussing how they would display adult titles if the time came, saying that the focus first should be on getting R18+ introduced before divulging any future plans.

Gametraders has since joined EBGames and also added a section to its website that urges people to voice their opinion to the government over the R18+ matter.

Thanks Ryan!

Australia’s largest videogame retailer has joined the movement to add an R18+ rating category for interactive entertainment Down Under.

EBGames is promoting its pro R18+ stance in all 350 of its Australian storefronts, where it will display signage (picture at Kotaku) and offer shoppers the ability to sign a petition. The retailer is also promoting the cause on its website and linking to a virtual petition for those in favor of adding the adult rating category to sign online.

Kotaku reports that EBGames did its due diligence in advance of publically supporting the issue; the company polled its customers on the issue and found that 84% were in favor of the addition of an R18+ rating category.

EB Managing Director Steve Wilson offered:

With the release of the Government’s discussion paper, we knew as a company that we needed to act on this issue as it continues to cripple our industry and cost local jobs. We did however want to be sure that our customers were as passionate about the matter as we are.

He continued:

This is not a call for violent video games, but rather a call for a better classification system that brings Australia in line with the rest of the world and other Australian entertainment industries, such as films.

Thanks Andrew!

Broadpoint AmTech Analyst Ben Schachter doesn’t question the fact that digital distribution of games is increasing, but he doesn’t see it having an effect on GameStop’s business until 2017.

Limited hard drive space (he estimates 70% of current-gen consoles have no hard drives), bandwidth limitations and an extended console cycle (which Schachter sees continuing through 2014) are among the factors that will allow brick and mortar retailers to fend off their digital counterparts reports IndustryGamers.

Physical media still holds sway over gamers as well, notes Schachter:

…consumers attribute a value to having a hard/physical product that can be sold, traded, and is portable. GME's own study put the residual value of physical game disc at approximately $10-20 dollars vs. a download-only version of a game.

He also points to the “relative failure” of downloadable content for Grand Theft Auto IV:

The Grand Theft Auto (GTA) franchise is among the most well-known and successful brands ever created in the video game industry, yet having digital-only distribution of a product tied to GTA's most recent console title led to very disappointing sales. The bottom line is that retail still matters.

In these trying economic times, as our sister-site GameCulture reports, more and more gamers are resorting to digital downloads for mobile devices because of the attractive price points.

We often hear publishers bemoan the fact that they don’t see any revenue from used game sales. But is that really true?

In a recent interview with IGN, Game Crazy’s Director of Used Games Marc Mondhaschen says that publishers are reaping benefits from game trade-ins, albeit indirectly:

We did a study not too long ago for a very large vendor who we managed to figure out for them 20 percent of their sales inside the first 28 days were paid for with trade dollars. So you got 20 points of their sales that wouldn't happen unless we had a trade business going. And that's specialty retail. Game specialty retail is maybe a third of the channel, 35 percent of the channel. So you got 10 percent of your sales that wouldn't happen unless somebody was out there trading games with your customers.

And if you didn't have specialty retail it would be pretty hard to sell innovation into the channel at all. I mean, Wal-Mart doesn't really buy Katamari Damacy. So, in order to innovate, in order to grow innovation in the business you need a specialty games retailer that actually knows something about videogames. And in order to have them, they need the margins through used games...

Mondhaschen explains that while publishers don’t typically see any money from used game sales, they do benefit in other ways:

When The Lost and Damned came out we started selling a whole lot more Grand Theft Auto 4, both on the new side and on the used side. Which, then, sort of funds people's ability to go play L&D again...

-Reporting from San Diego, GamePolitics Senior Correspondent Andrew Eisen...

Despite the stunning revelation of a bureaucrat screwup that invalidates 25 years' worth of game and movie content rating enforcement in the UK, all parties in the game supply chain have agreed to proceed as if the law was still in effect.

The British government is expected to fix the loophole, which dates back to the Maggie Thatcher era, later this year.

As reported by gamesindustry.biz, members of the UK's Video Standards Council have agreed to continue enforcing ratings. VSC exec Laurie Hall explains:

All sectors of our membership, whether they are video distributors, videogame publishers or entertainment retailers have confirmed that they will continue to conduct their businesses as usual.

Whatever the position of the law is at present our members will continue to operate as if it was mandatory. So far as videogames are concerned they have been acting upon this basis under the Pan-European Game Information (PEGI) system for quite some time.