Archive for the ‘Business’ Category
Posted by Dan on
December 13, 2009
Michael Atkinson, the rabidly anti-gaming Attorney General for South Australia, completely crossed the line into outright censorship in defending his decision to refuse ratings classification to Aliens vs. Predator, essentially banning the game. While the AG has long been the sole obstacle towards Australia gaining an 18+ mature game rating, he has always couched his arguments in that tired trope, think of the children.
Until now. Atkinson now believes that he should be the sole arbiter of what games you get to play on purely moral grounds. He recently proclaimed “You don’t need to be playing a game in which you impale, decapitate and dismember people.”
Atkinson’s hypocrisy really knows no bounds. On the one hand, he says “This is a question of a small number of very zealous gamers trying to impose their will on society. And I think harm society. It’s the public interest versus the small vested interest,” but on the other hand, he himself is the small vested interest that is imposing his will on the broad public. How many millions of dollars has Atkinson cost the Australian economy, by lowering sales of “altered” games like L4D2 (sending further sales overseas), or forcing publishers that show a backbone to outright refuse to sell in Australia?
Atkinson outright admits that the problem he forsees doesn’t even exist yet. “I accept that 98 per cent, 99 per cent of gamers will tell the difference between fantasy and reality, but the 1 per cent to 2 per cent could go on to be motivated by these games to commit horrible acts of violence,” ….note the emphasis. Could. Not “have”.
Despite the fact that Australians are allowed to watch violent movies with an 18+ classification, games unfortunately don’t get the same treatment. Unfortunate for the industry as a whole, not just Australians.
Popularity: 10% [?]
Posted by Dan on
November 16, 2009
GamePolitics reported earlier this month on the battle between China’s Ministry of Culture and their General Administration of Press and Publication over control of the online game industry. According to reports, the GAPP has banned Chinese WoW operator NetEase from running The Burning Crusade in China, and is requiring that they stop taking new subscriptions and cease current subscription fees. Most previous regulation, including censorship, of the industry has recently come from the Ministry of Culture, and this appears to be a major turf war between the two organizations. The Ministry of Culture has approved WoW in China, launched this September, while the GAPP did not. For their part, NetEase has issued a press release stating that they believe they are in compliance with PRC law, and doesn’t indicate that they will be ceasing any operations. It also notes that they haven’t had any official “notice” of the ban, and that the announcement came from the GAPP’s website (rather than an official determination.) Earlier in the year, China banned FDI (foreign direct investment) into the gaming industry, and has increasingly cracked down on what it views as an opportunity for the expression of dissident viewpoints and “undesirable content.”
On a related note, I’m putting the finishing touches on a journal article regarding an international framework for protecting human rights in virtual worlds and MMORPGs. With this news, the topic only seems more relevant. Chinese gamers should be entitled to express dissident viewpoints in a virtual world without fear of censorship, and without fear that their avatars and virtual property will be at risk of seizure or deletion. Similarly, virtual worlds operators should be entitled to profit from their businesses without fear of government crackdowns like this. I’ll post the article here once the publication process is complete.
The NetEase press release reprinted in full below.
NetEase.com Announcement Regarding Statement by the General Administration of
Press and Publication With Respect to World of Warcraft(R)
BEIJING, Nov. 2 /PRNewswire-Asia/ -- NetEase.com, Inc. (Nasdaq: NTES), one
of China's leading Internet and online game services providers, today
announced that the General Administration of Press and Publication ("GAPP") of
the PRC government has posted on its official website a statement that the
current operation of the World of Warcraft(R) in China by NetEase's affiliated
company, Shanghai EaseNet Network Technology Limited ("Shanghai EaseNet"), is
being conducted without proper approval from GAPP. The statement further
indicates that GAPP is returning Shanghai EaseNet's application for approval
and Shanghai EaseNet should suspend charging users to play the game and not
allow new account registrations. GAPP also notes in its statement that it is
evaluating whether to impose administrative penalties on Shanghai EaseNet. As
of the time of this press release, neither NetEase nor Shanghai EaseNet has
been officially notified of GAPP's determination. Shanghai EaseNet licenses
World of Warcraft(R), a massively multi-player online role-playing game, for
operation in China from Blizzard Entertainment, Inc.
NetEase and Shanghai EaseNet believe that they are in full compliance with
applicable PRC laws and are currently seeking clarification from the relevant
governmental authorities regarding this statement by GAPP. NetEase will
provide further updates on the statement by GAPP as appropriate.
About NetEase
NetEase.com, Inc. is a leading China-based Internet technology company
that pioneered the development of applications, services and other
technologies for the Internet in China. NetEase's online communities and
personalized premium services have established a large and stable user base
for the NetEase websites which are operated by its affiliates. In particular,
NetEase provides online game services to Internet users through the in-house
development or licensing of massively multi-player online role-playing games,
including Fantasy Westward Journey, Westward Journey Online II, Westward
Journey Online III, Tianxia II and Datang, as well as the licensed game World
of Warcraft(R).
NetEase also offers online advertising on its websites which enables
advertisers to reach its substantial user base. In addition, NetEase has paid
listings on its search engine and web directory and classified advertising
services, as well as an online mall, which provides opportunities for e-
commerce and traditional businesses to establish their own storefront on the
Internet. NetEase also offers wireless value-added services such as news and
information content, matchmaking services, music and photos from the Web which
are sent over SMS, MMS, WAP, IVR and Color Ring-back Tone technologies.
Other community services which the NetEase websites offer include instant
messaging, online personal advertisements, matchmaking, alumni clubs and
community forums. NetEase is also the largest provider of free email services
in China. Furthermore, the NetEase websites provide various channels of
content. NetEase aggregates news content on world events, sports, science and
technology, and financial markets, as well as entertainment content such as
cartoons, games, astrology and jokes, from over one hundred international and
domestic content providers.
Safe Harbor Statement
This press release contains statements of a forward-looking nature. These
statements are made under the "safe harbor" provisions of the U.S. Private
Securities Litigation Reform Act of 1995. You can identify these
forward-looking statements by terminology such as "will," "expects,"
"anticipates," "future," "intends," "plans," "believes," "estimates" and
similar statements. The accuracy of these statements may be impacted by a
number of business risks and uncertainties that could cause actual results to
differ materially from those projected or anticipated, including risks related
to: the risk that Shanghai EaseNet will not be able to continue operating
World of Warcraft(R) or other games licensed by it for a period of time or
permanently due to the position of GAPP or other governmental actions; the
risk that Shanghai EaseNet or NetEase will be subject to penalties or
operating restrictions imposed by governmental authorities in the PRC
resulting from the operations of their online games, including suspension of
their Internet service or other penalties; and other risks outlined in
NetEase's filings with the Securities and Exchange Commission. NetEase does
not undertake any obligation to update this forward-looking information,
except as required under applicable law.
For further information, please contact:
NetEase.com, Inc.
Brandi Piacente
Investor Relations
Email: brandi@corp.netease.com
Tel: +1-212-481-2050
Li Jia
Email: liddyli@corp.netease.com
Tel: +86-10-8255-8208
SOURCE NetEase.com, Inc.
Brandi Piacente, Investor Relations, brandi@corp.netease.com, +1-212-481-2050;
or Li Jia of NetEase.com, Inc., liddyli@corp.netease.com, +86-10-8255-8208
Popularity: 11% [?]
Posted by Dan on
October 30, 2009
Thanks to Kotaku for the heads up. The Sacramento County Superior Court just awarded $16 million in damages to the family of Jennifer Strange, who died from “water intoxication” (presumably complicated by hyponatremia). Strange died back in 2007 after a radio contest from KDND-FM in which she had to chug bottles of water in order to win a Nintendo Wii. The jury found that the radio station negligently ignored warnings, including during the contest, that there could be potentially fatal contests. From the radio station’s response, it sounds like they’re not going to appeal the verdict.
“Jennifer Strange’s death was a tragedy. Our hearts go out to all of her loved ones, including, in particular, her husband and children. While legal restrictions preclude us from commenting further on the verdict, we respect the jury’s decision and hope that it will assist the Strange family in coping with its loss.”
Popularity: 8% [?]
Posted by Dan on
October 17, 2009
Somewhat related to the arguments that the game industry is “recession proof” or at least “recession resistant”, a very interesting interactive map outlining job creation/loss over the past 5 years is circulating around the internet. When viewing this map, keep in mind that the game development industry is highly centralized in Southern California, Seattle, Austin, and to a lesser extent Boston — keep track of these locations while you’re watching the progress, and that the map represents areas by MSA (so suburbs are included in the metropolis they are tied to, for instance Cambridge would be tied to Boston).
If you look in the beginning, you’ll notice SoCal booming, as well as in Austin, with no major losses anywhere until the mega-red explosion from Katrina hitting New Orleans, but even there are no major losses. Up through the beginning of 2008, California begins shrinking, with losses starting to appear for the first times in SoCal (although ironically, the reverse is occurring in the Bay Area), but Texas and Seattle remain booming with tens of thousands of new jobs.
Then by mid-2008, the meltdown is in full swing. Starting in South Florida, SoCal, and Detroit, it quickly spreads over the next year to the entire nation. Interestingly enough, while in August 2008 Los Angeles was posting a -97,800 lost job rate for the previous 12 months and -20,000 in San Francisco, Austin was up by 18,100 jobs and Seattle was up by 17,200.
By November, that had turned into nearly -160,000 lost jobs in LA alone, while even Seattle was starting to feel the heat with -11,000 or so. Boston was down by nearly -20,000, and only Austin (as an industry hub) remained in the green.
Perhaps the most fascinating slide is the end, which looks like red nuclear explosions going off; but lets pay attention to what you CAN’T see on that last slide: Austin down by only -1,400 jobs that year (keeping in mind this is across ALL industries) compared to -240,000 in LA.
The website itself states “The animated map makes clear that this recession has not treated all regions equally.” Does this mean that Austin is a safe place to work to wait out the recession? That might not be a stretch of the imagination. Texas isn’t faced with nearly the same budget meltdowns as California, and aside from Houston and Dallas, hasn’t been hit with the same critical job loss that California has (though the site also notes that Texas remained solid in part due to a run-up in oil prices through 2008, and that the receding job growth in 2009 came from the energy and construction sectors.)
The time will come where development studios are going to have to think harder about where they set up shop — not just in terms of access to employment talent or favorable taxes, but economic solidity and risk of rampant unemployment in other critical sectors like public safety or education. Perhaps this map will highlight that for some studios.
Popularity: 12% [?]
Posted by Dan on
October 17, 2009
Back in April, Gamefly filed a complaint against the US Postal Service, claiming that Netflix and Blockbuster’s DVD-by-mail services are receiving preferential handling of discs in transit. Gamefly alleged that their discs are being stolen, and that Netflix and Blockbuster are getting manual processing to prevent breakage. According to Gamefly, the USPS breaks 1-2% of the nearly 600,000 games shipped each month, which accounts for up to $295,000 per month in loss. Note that as best we understand, this is not a formal lawsuit, but rather an administrative complaint with the Postal Regulatory Commission.
In their latest filing, Gamefly points out that Netflix in particular has benefited from unauthorized “Netflix only” slots in the post offices– slots that the USPS claims that they don’t know exist, but if they did would be against policy. Something tells me that this case is going to likely progress beyond the administrative stage, but we’ll of course keep you updated as new developments are announced.
Popularity: 9% [?]
Posted by Dan on
October 8, 2009
The Journal of Game Amusement Society (which I’m not familiar with, but appears to be an Asia-based game journal) is issuing a call for papers for their third volume. They don’t specifically include law as a topic, but do include “Psychology, History, Pedagogy, Business administration, Business style of game industry, Game industry as venture business, [and] Game as business” so it is a safe bet legal papers would be accepted.
I haven’t really published CFP’s before here, but I’m thinking it would be a good idea in the future. Manuscripts are due Dec. 25, and if you’re thinking of submitting along with a law journal, you’ll probably have to trim it down – full papers are limited to eight pages.
If anyone has other CFP’s they’d like us to republish, as long as they are law/financial/business related, I’m happy to cover them here.
Popularity: 9% [?]
Posted by Dan on
August 6, 2009
Engadget is reporting that Vice President Joe Biden recently announced billions in battery-related grants to automakers. The interesting question is, will any of this filter down to the PC and handheld gaming market? While the lion’s share of the $2.4 billion went to GM and Chrysler for development into hybrids, it is interesting to note that EnerDel received nearly $120 million for a plant in Indianapolis to produce lithium-ion cells and battery packs.
Lithium-ion batteries, of course are widely used in the cell phone and handheld gaming markets. It will be very interesting to see whether any of the money goes to research, and whether the benefits trickle down into improved battery life on your cell phone or laptop.
Popularity: 4% [?]
Posted by Dan on
July 17, 2009
As some of you may have heard, there has recently been a row over some trademark issues involving Tim Langdell, who was recently elected to the IGDA Board. The crux of the issue is that Tim holds a trademark in various uses of the mark “Edge” as used in relation to gaming. Tim has allegedly been aggressive about acquiring and enforcing his trademarks, which have allegedly resulted in at least one iPhone gaming with the word Edge in the title being removed from the Apple Store. Tigsource has compiled a very comprehensive list of articles involving Tim and the use of the mark.
There is now a petition to remove Tim from the board. The petition’s author, well known narrative designer Corvus Elrod, had this to say:
I have started a survey which requires you to enter your IGDA
membership number when you vote. Once we have “yes” votes from 10% of
the membership (about 1400), I will bring it to the board directly and
force them to call a special meeting of the membership to vote on Tim
Langdell’s removal.
Corvus expanded further at Man Bytes Blog:
My feelings about Tim Langdell are of little consequence here, but I do feel like emphasizing that I feel calling his actions “trademark protection” is rather like claiming the aristocracy went on fox hunts to protect the hen house. It may be legal, but to base the financial success of your studio on predatory IP manipulation is ass-hattery of the worst degree. The fact that Langdell’s studio is surviving in this economy without having released a game in well over a decade is astounding. That it can even afford to litagate over the use of the word ‘EDGE’ when the big publishers are closing entire studios rather than suffer thinner-than-average profit margins is a danger to every single developer-independent or affiliated.
This is obviously a huge issue, especially for a very troubled IGDA. There have been recent questions in mainstream blogs and those of several high profile industry members questioning what exactly IGDA is providing to its members. The trademark issue further fans the flames of allegations that IGDA isn’t doing enough, and it’s being talked about by key industry figures, such as IGDA board candidate Darius Kazemi and board member Tom Buscaglia.
To be fair, the petition is not a slam job against Tim: as Corvus states “You’ll notice, I’ve included a “no” vote. I know members who do not wish to vote Tim Langdell off the board. If 10% of the IGDA membership is dead against this, it’s only fair they have a voice too.”
We’ll be tracking this issue further as it develops, and I’m hoping to discuss it at this year’s PAX 2009 Legal Issues in Gaming panel (which you should all attend!).
FULL DISCLOSURE: The author is a student member of IGDA and an IGDA GDC Scholar.
CORRECTION: The author of the petition is Covus Elrod, not Michael Lubker as originally reported.
Popularity: 9% [?]
Posted by Dan on
July 10, 2009
GamePolitics is reporting on an AP story that Louisiana governor (and often cited potential Presidential candidate in 2012) Bobby Jindal has signed into law tax breaks to, among others, game development studios to try and bolster production in the state. The action has received praise from the ESA.
Here’s why you shouldn’t care: Bobby Jindal is the governor of Louisiana, and his tax breaks will only affect Louisiana. Not California, not New York, not any other state in the union. Louisiana. Now, you may be thinking “so what, he’s trying to attract an industry into Louisiana.” Problem is, that’s not going to happen.
Louisiana is different than most every other state in the union, because their state legal system has not updated itself to anything remotely resembling the 21st century. Louisiana is the sole state in the union that follows the “civil law” legal system, rather than the traditional common law. The problem with this form of law, is that while common law provides a certain amount of precedent, which can be researched and relied upon, the civil law system is relatively uncertain. It relies upon judges interpreting what the law should be. The difference is most marked in the area of estate law and succession, and to be fair the gap has narrowed with the Uniform Commercial Code. But game developers working in Louisiana have to abide by its law. They’re going to live there, and be subject to its tort laws when they get in a wreck going to work. They’re going to be subject to its estate law when they make a will, or (god forbid) pass away. They’re going to face the state’s antiquated legal system day in and day out, and that is a MAJOR turnoff for attracting skilled developers. Nobody wants to work in a state where you can’t tell what the law is in advance. The secondary issues like the abject poverty surrounding much of the state, inequality in education, jobs, and healthcare, and the blindingly deep corruption reaching nearly every level of the state’s government certainly can’t help.
So, while Bobby Jindal’s announcement is all fine and dandy, it’s a non-starter.
Popularity: 6% [?]
Posted by Dan on
June 30, 2009
China’s Ministry of Culture and Ministry of Commerce have banned the trading of virtual currency for tangible goods or services. According to the ministry, “the virtual currency, which is converted into
real money at a certain exchange rate, will only be allowed to trade in
virtual goods and services provided by its issuer, not real goods and
services,” and specifically includes prepaid game cards for online games.
This presents something of a problem for games with sanctioned RMT models, as by the ministry’s wording not even game publishers can traffic in real goods and services. For a game like EVE, where the developers have sanctioned third party trading in prepaid time cards, this seems to run afoul of the letter of the policy; rather unfairly as it doesn’t seem to violate the spirit of the policy. Interestingly, China Daily is reporting that virtual item selling will not be covered under this policy.
Something tells me that this is going to be a rather empty gesture by the Chinese government, but we’ll keep an eye on this.
Popularity: 2% [?]
