2005 In Review Part 8: AUGUST 20051 Jan, 2006 By: Thomas K. Arnold
Rockstar Games took a financial hit when it was discovered its video game Grand Theft Auto: San Andreas had a hidden sex scene in it, changing the game's rating to
While all eyes in the DVD vending universe are on the McDonald's Redbox, Movie Gallery is quietly testing vending machines in some markets and may eventually roll out branded models in different settings. “They let us go into markets that are smaller than we need for a store and into areas where we may not be able to get real estate,” says Movie Gallery SVP Thomas Johnson.
Game makers are under fire for putting racy content into video games. Rockstar Games, the company that put out Grand Theft Auto: San Andreas with a hidden sex scene in it, took a financial hit after it was forced to change the game's rating to ‘Adult Only,' and the Federal Trade Commission is probing potentially improper advertising aimed at consumers younger than 17.
Blockbuster posts $57.2 million loss for the second quarter, faulting “uncertainty and continued decline in the rental industry.” The chain's stock hits a six-year low of $6.30 per share.
Walt Disney Co. chief Robert Iger stuns the industry by suggesting studios consider closing up DVD and TV windows. “We can't allow tradition to stand in the way of where the consumer can go or wants to go,” he says. “All the old rules should be called into question because the rules of consumption have changed so dramatically.”
The planned HD DVD launch this fourth quarter quickly falls apart. First, the three studios supporting the next-generation format say they're going to wait until 2006, because they don't see much hardware being ready in time. Then Toshiba, the chief backer of HD DVD, says it's going to wait until 2006 as well, citing a lack of software.
Lions Gate chimes in for Blu-ray Disc, giving the Sony-developed format a decided edge in the battle for a standard next-generation optical disc.