Rhode Island Democratic gubernatorial candidate Frank Caprio (pictured) is now attempting to block the $75 million loan used to lure Curt Schilling’s 38 Studios from Massachusetts.

Caprio, who is also the state’s General Treasurer, has expressed tepid uncertainty about the deal all along, calling for the state’s Economic Development Corporation to modify the loan and questioning the bond structure that will finance it. Read More

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.”
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As Microsoft continues to try and get its Xbox 360 to market in China, an executive for the company outlined why Kinect may be a valuable asset in its push and how MS plans to combat piracy in the Asian country.

Simon Leung (pictured), Microsoft Corporate Vice President, Chairman and CEO for the Greater China region, speaking to the Wall Street Journal, first noted why China is such an attractive region, if it wasn’t already apparent, stating that China would soon be the world’s largest PC market, while it's already tops in the mobile phone and broadband categories.

Leung indicated that China is becoming a growing adopter of cloud computing, which could help protect Microsoft, as Leung stated, “… you cannot pirate a cloud application.”

Asked about selling consoles in China, Leung responded: Read More

Previously only open to membership for corporations or institutions, UK game industry group TIGA will launch the ability for individual game industry employees to join its ranks this fall.

Those working in the games industry will be allowed to join TIGA at that time, including students, freelancers and contractors. Members will receive access to TIGA’s discount platform, network events, seminars and career counseling.

TIGA Chief Dr. Richard Wilson stated, “TIGA wants to help both aspiring games developers and those already working in the industry to fulfill their career ambitions.”

He added, “We intend to support the next wave of creative individuals and successful interactive companies in the UK. Further details will be announced when the service launches later this year.”

The European Service Network (ESN), operating under a budget of 275,000 Euros (approximately $349,000 U.S.) from the European Parliament's Directorate-General for Communication, is developing an online role-playing game—and social networking forum—that it hopes will capture “the essence of European Parliament.”

Named Citzalia, the online experience was compared to Second Life and will have users create an avatar before being able to,  “navigate around a virtual recreation of the actual Parliament, to create content, and to involve themselves in virtual law-making.” Read More

Georgia’s aggressive tax breaks for interactive developers seem to be paying off for the state, if you believe a rosy picture painted by The Atlanta Journal-Constitution.

All in all, the piece estimated that around 70 companies “affiliated with videogame production” operate in Georgia today. The economic impact of such companies on the local economy was pegged at $68.9 million in 2008, while a figure of $49.9 million was assigned to 2009, though that number is expected to double once companies that have not yet filed for tax incentives do so.

Among the lures that make Georgia an attractive home for game developers is a sizeable tax credit of 20 percent for investments that surpass $500,000, with an additional 10 percent in breaks up for grabs if the state’s logo is embedded in the game.
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The more feisty exchanges in a debate among Rhode Island gubernatorial candidates on Thursday revolved around plans from that state’s Economic Development Corporation (EDC) to grant 38 Studios $75 million in guaranteed loans in order to get the Curt Schilling-helmed company to move from Massachusetts.

As recounted by the Providence Journal, when asked by a moderator for their views on the 38 Studios deal, Independent candidate, and perpetual opponent of the transaction, Lincoln Chafee called the loan a mistake and indicated that the first payment of $15 million would go out to Schilling’s company next Tuesday.

This prompted Democratic candidate Frank Caprio to snap at Chafee, saying, “You don’t have your facts straight. You don’t understand the deal. You don’t know the first thing about this.”
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Computer maker Lenovo has established a new company as part of a push to make its own videogame console.

Beijing eedoo Technology Ltd. will oversee development of an internally developed Lenovo console named eBox, reports the Wall Street Journal. Planned for release in China by the end of this year, the eBox will be “compatible” with high-definition televisions and allow users to download content from the Internet. Users will be able to interact with the device by using a camera.

eedoo plans to launch the console in China first, since “regulations of game consoles are murky and rampant piracy poses a big challenge for console game sales.”

China Daily, which features a pair of concept drawings of the product, reports that the eedoo team consists of some 40 software engineers. Pricing for the eBox is expected to be “slightly lower” than that of the Xbox 360.
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UK public-service broadcaster Channel 4 is pumping some timely funds into the Dundee, Scotland economy, just a week or so after that city’s RealTime Worlds entered into administration.

According to the Herald Scotland (thanks The Escapist), the one million pound infusion (approximately $1.55 million U.S.) will be used to commission “apps and games” based on the TV shows Come Dine With Me and Peep Show from Tag Games, as well as a Facebook game from Dynamo Games, which will draw on various Channel 4 shows such as Gok Wan’s How To Look Good Naked.
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Following last week's news that Dundee, Scotland-based game developer Realtime Worlds had entered into administration, that region of the UK was in need of some good news, not to mention an infusion of jobs, and now, help just might be on the way.

Developer Eutechnyx, best known for its output of racing games like Big Mutha Truckers, Street Racing Syndicate and Supercar Challenge is looking to add a new studio to its repertoire and wants to put it in Dundee.

In a press release on its website, the company said that after securing “substantial investment earlier this year for its latest MMO Auto Club Revolution,” the company “has gone through one of the biggest periods of growth in its 23 year history.”
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Last week we ran a story from the Entertainment Software Association (ESA) in which it discussed the growth of game-related degrees offered in U.S. schools and universities. One of eight states tagged as not offering such degrees, however, took a little onus with its exclusion.

In a list of schools offering videogame-related degrees on the ESA website, eight states are missing—Alabama, Alaska, Arkansas, Hawaii, Maine, Mississippi, West Virginia and Wyoming. Arkansas officials took time out to argue their case in a piece running on the City Wire, stating that the ESA’s report “does not accurately reflect ongoing efforts to provide video gaming degree options to incoming students.”
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Blizzard and Chinese game operator Net Ease will officially launch the World of Warcraft expansion Wrath of the Lich King just a few short weeks after it was finally approved in the Asian country.

According to a joint press release from Blizzard and Net Ease, the expansion will go live in mainland China on August 31, almost two years after it was launched (November 2008) in Europe and North America.

Net Ease CEO William Ding stated, “We are fully prepared on all fronts to provide great service and support to all of the new and returning players throughout China, and we look forward to welcoming them to Northrend.”
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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

Hungry? Have a stack of old videogames? Live near a Tesco store? Then you might be in luck.

MCVUK is reporting that at least 60 Tesco stores are now accepting videogame trade-ins and the resulting store credits can be used to purchase anything in the store. Among a sampling of prices being offered: £12 (approximately $19 U.S.) for 2010 FIFA World Cup on the PlayStation 3, £17 (approximately $26 U.S.)  for Mario Kart Wii and £19 (approximately $29 U.S.)  for the Xbox 360 version of Red Dead Redemption.

The purchased traded-in games will be available for consumers to buy used in the stores as well.

Select the pre-owned games check box on the Tesco store locator to find a location accepting trade-ins near you.

Times are tough Down Under too, as it seems that one of the larger Australian game developers has closed an office and downsized personnel at two additional locations.

GamePron reports on the shakeup at Krome Studios, which appears to have closed down its Adelaide office altogether, while laying off staff from both its Melbourne and Brisbane studios. The site notes that the Adeliade office was initially opened in order to try and give some jobs to employees of developer Ratbag, which shuttered in 2005, just months after being acquired by Midway Games and undergoing a rebranding as Midway Games – Australia.

At its peak, Krome was one of the largest independent videogame studios in the world and has produced some 19 titles covering 40 SKUs. It’s best known for its creation and development of the Ty the Tasmanian Tiger series.


Thanks Ryan!

In a strange move, online retailers GameStop and Amazon have already instituted dramatic price reductions on Electronic Arts’ Madden NFL 11, which has been out for barely over a week.

Michael Comeau, a columnist for Minyanville, noticed the price drops and dubbed the actions “worrisome” due to their timing—according to his recollection, while Amazon typically is a quick discounter, it didn’t adjust the price of last year’s Madden game until 20 days after release.

On Amazon, the 360 version of Madden NFL 11 is now $49.99, a $10 drop, while the Wii version had $3 knocked off to $46.99 and the PlayStation 2 entry received a $7 reduction to $32.99. The PlayStation 3 version is still full price ($59.99).

GameStop matched Amazon’s discounts on the 360, Wii and PlayStation 2 versions of Madden NFL 11 and went two better, knocking $10 off the PlayStation 3 game and $7 off the PSP version, which now sells for $32.99. (GameStop's discounted prices are applicable online only, not in-store) Read More

Calling it “terrible news,” UK game industry group TIGA has reacted to word that  Scottish developer Realtime Worlds is going into administration with a call for action directed at the "Scottish videogames industry in particular and the UK games sector in general.”

TIGA CEO Dr. Richard Wilson called for Games Tax Relief to be introduced at the “earliest opportunity,” the beefing up of R&D tax credits and the formation of business incubators which could assist with the formation of a “new wave” of videogame development firms.

Wilson also stated that games clusters “should be consciously supported” and that higher education should be adequately funded with a renewed focus on STEM subjects.
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While the Chinese Ministry of Culture finally gave the go-ahead for the not-too-distant release of the World of Warcraft expansion Wrath of the Lich King, a taste of some changes Blizzard had to make to models in the game are detailed on a website dedicated to Chinese gaming.

A handful of images appearing on ChinaGame.178.com show the removal of mostly skulls and bones from models in the approved version. Another image also appears to indicate that sprites used to animate blood loss and/or splattering were changed from red to green.

In the images below, original models are on the left while the purported Chinese-approved modifications are on the right.

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While we’ve been using data from the Entertainment Software Association of Canada to crown our neighbors to the north as the world’s third-largest home to videogame development for a few months, trade association TIGA seems to have just recognized that claim as official, and used it to lash out at UK politicians.

TIGA said that UK politicians have been “asleep at the wheel” while Canada, and other countries, cherry pick UK talent with incentives. TIGA Chief Dr. Richard Wilson said that there was “nothing inevitable about this process,” and added: Read More

According to Konstantin Popov of the Russian Association of Developers of Interactive Technology (RADIT), the Russian game industry reached $820 million last year, despite a 40 percent decline in its most profitable sector - PC games he also says that his organization is working with the Russian government to get game makers incentives and inclusion in a new tech-focused development in Moscow.

Speaking in Cologne, Germany RADIT's Konstantin Popov said that Russian developers are slowly moving away from the traditional focus on PC games because other sectors are picking up. That PC games market had declined by 40 percent, while consoles rose by 15 percent, casual by 30 percent and mobile by 10 percent. Online gaming seemed to get the biggest bump in 2009, growing by some 70 percent. Interestingly retail sales and PC games remain the focus despite changes in sales across different platforms. Traditional Brick and mortar sales accounted for $500 million of the $820 million market value, while PC games still constitute 80 percent of the market. Read More

According to the Entertainment Software Association (ESA), 300 U.S. colleges, universities and art schools will offer videogame-related degrees in 2010-2011, representing almost 20 percent growth from the 2009-2010 timeframe.

The growth in this sector has continued unabated, with a reported 220 schools offering video game design, development, programming or art curriculums in 2008-2009 and around 250 in 2009-2010. California is still the leader in terms of schools offering game-related degrees with 50 institutions, followed by New York (26), Texas (21) Illinois (17) and Florida (15).

ESA Senior Vice President for Communications and Industry Affairs Rich Taylor commented, “While computer and video games have been a source of entertainment for decades, our society is increasingly recognizing the broader uses of games and their positive impact. Whether it is in healthcare, education, business or government, schools across the country see the value of games and are training their students to meet the demand.”
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For the first time, revenue from in-game advertising was broken out in a report from the Interactive Advertising Bureau of Canada (IAB), and the figures were not all that overwhelming.

The Canadian Online Advertising Revenue Survey (PDF) serves up actual 2009 results in addition to 2010 estimates. The report stated that 2009 revenue from Canadian in-game advertising was $3 million, or less than one percent of the year’s total of $1.82 billion.

Videogame advertising, as defined by IAB, “can range from an Advertiser buying some or all of the ad units in or around a game, to a 'Sponsored by' link to a custom-branded Game experience.”

Speaking to The Star, IAB President Paula Gignac called videogames “something of a walled garden” when it comes to marketing information. Read More

Rhode Island Treasurer Frank Caprio is still attempting to poke holes in a $75 million guaranteed loan that helped lure Curt Schilling’s 38 Studios to the Ocean State from Massachusetts.

Speaking to Providence’s NBC 10 I-Team, Caprio, who is also a Democratic candidate for Governor, said that investors might be hesitant about buying into the $75 million "moral obligation" bonds because the nature of their structure makes them high risk and "there's nothing legally that would make Rhode Island pay off the investors."

Caprio continued: Read More

Chip maker Nvidia has won a $25 million grant from the Pentagon’s Defense Advanced Research Projects Agency (DARPA) in order to create high-performance supercomputers that leverage the power of graphics processing units (GPU).

Nvidia has long been an advocate, obviously, of the computational powers of GPUs, which have been adapted to a wide variety of uses, from CT scans, to research labs, to Wall Street. Venture Beat reports that the win will see Nvidia operate under a four-year contract and build “a new class of ‘exascale supercomputers’ that are 1,000 times more powerful than today’s supercomputers.”
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Say this for the deal Curt Schilling and his 38 Studios worked out with the state of Rhode Island; it’s giving political candidates in the state a platform to campaign on and rail against.

38 Studios was lured to Rhode Island from its current home in Massachusetts, largely due to a guaranteed $75.0 million loan from the Rhode Island Economic Development Corporation (EDC). This commitment raised the ire of Ocean State Independent Gubernatorial candidate Lincoln Chafee, who previously questioned Schilling’s integrity by intimating that the pitcher may have faked an injury in the 2004 American League Championship Series.
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Billed as North America’s first videogame business incubator, Fortune Cat Games Studios is preparing to close up shop after four years of operation.

The Winnipeg, Canada-based initiative provided rent-free office space and computer systems to small project teams and hooked up the fledgling developers with mentors and contacts in order to advance their skill sets.  According to a Winnipeg Free Press story, the non-profit is shuttering because it could not secure any funding for operations in 2011.

Federal funding for the incubator ceased about a year and a half ago, while provincial funds run out this year. The provincial government stated that it seeded the business with $662,954 between 2005 and 2010.

Fortune Cat’s Executive Director Ryan FitzGerald said about the closing, “I cannot blame anybody. The worst thing I can say is that we had the right idea, but bad timing for federal reasons and provincial reasons and for industry reasons.”
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A report issued by the Entertainment Software Association (ESA) indicates that the U.S. videogame industry employs almost 32,000 people and adds $4.9 billion in value to the country’s Gross Domestic Product.

Video Games in the 21st Century (PDF) also claims that the industry achieved an annual growth of 10.6 percent per year from 2005 through 2009, eclipsing the 1.4 percent annual growth rate posted by the U.S. economy as a whole. Outside of a staid 2009, when sales of entertainment software totaled $10.5 billion, sales rose each year from $7.0 billion in 2005, to $7.4 billion in 2006, to $9.5 billion in 2007 and $11.7 billion in 2008.
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China’s Ministry of Culture has finally given its approval (translated) to the World of Warcraft expansion Wrath of the Lich King, almost two full years after it was released in other parts of the world.

A PC World story notes that the expansion had already been deemed worthy of release last month by China’s General Administration of Press and Publication (GAPP). Chinese World of Warcraft operator Net Ease said it would soon release a formal announcement about Wrath of the Lich King, with company spokesperson Liddy Li stating, “We have always been preparing for its release, but there has been no formal announcement yet.”
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While Microsoft’s Xbox 360 is made in China, it still isn’t available for legal purchase there, nor is Sony’s PlayStation 3 or Nintendo’s Wii, but the Redmond, Washington-based company isn’t giving up hope.

Microsoft executive Zhang Yaqin told the Shanghai Daily (subscription only) that the company still hopes to receive approval to sell the 360 in China, but that “… it all depends on the government.” There’s still no set timetable for launch and the issue involves “several government bureaus,” which, of course, only adds multiple layers of bureaucracy.

Last month, Kotaku investigated why game consoles are banned in China. A Niko Partners researcher told the publication, “The government thought that was the best way to protect Chinese youth from wasting their minds on video games, after a parental outcry.” Read More

Following a “comprehensive” survey of 78 UK-based game developers, industry group TIGA is meting out statistics that paint a picture of the industry in broad brushstrokes.

The average size of a publisher-owned studio, according to the State of the UK Video Games Development Sector report, was 245 people, versus 45 for the average indie developer and 51 people for the indie developer who also publishes their own titles.

88 percent of all workers in the industry were male, while 12 percent were non-UK citizens.

The average game development house has been in business for seven years.

On average, developers spent £570,800 (approximately $910,000 U.S.) to develop a game, though there was great disparity between averages for indie developers, who spent £897,700 (approximately $1.431 million U.S.) per game, publisher owned studios, which spent £3,000,000 (approximately $4.782 million U.S.) and indie developers who also publish, which spent £133,700 (approximately $213,093 U.S.) per game.