Geek Gestalt

Executives throughout the video game industry may be breathing a big sigh of relief. That's because it looks like one of the industry's biggest critics, Florida lawyer Jack Thompson, has had his voice cut off at the knees, to mix a metaphor or two.

According to a Thursday report on the popular video game blog Kotaku, Thompson has been disbarred by a Florida judge who ruled he has been guilty of some seriously unbecoming conduct.

Essentially, according to Kotaku, the court ruled that Thompson "made false statements of material fact to courts and repeatedly violated a court order...communicated the subject of representation directly with clients of opposing counsel...engaged in prohibited ex parte communications...publicized and sent hundreds of pages of vitriolic and disparaging missives, letters, faxes and press releases to the affected individuals...targeted an individual who was not involved with (Thompson) in any way, merely due to 'the position (the individual) holds in state and national politics'...falsely, recklessly and publicly accused a judge of being amenable to the 'fixing' of cases," and so on.

Thompson might best be known for his withering attacks of Rockstar Games for the sexual content that was hidden in its hit game, Grand Theft Auto: San Andreas. But he has also been vocal in his criticism of countless other games for what he saw as too much violence and sexual content.

Over at our sister site, Gamespot, Wednesday, the eagle-eyed Guy Cocker noticed that Rockstar Games has officially announced its mega-hit, Grand Theft Auto IV, is coming to the PC.

Originally available for Xbox 360 and PlayStation 3, the game, which had sold more than 8.5 million copies through early June, will be available on PCs--though not Macs, apparently--on November 18 in North America and on November 21 in Europe.

This is a big move for Rockstar Games because it opens up GTA IV to an even bigger audience than could already play it. And that likely means many more millions of units sold to players who feel they simply don't want to put down the cash for a next-gen video game console like the Xbox or the PS3. And just in time for the holidays.

Further, it means that PC gamers, who have been able to play previous versions of the Grand Theft Auto franchise, will be left behind their console-owning friends no longer. All of which means more bins full of cash for Rockstar and its Take-Two owners.

According to Rockstar, the PC version of the game will feature an exclusive multi-player version. And one wonders if that could lead some players who already have the game for the Xbox 360 or PS3 to buy it for the PC as well. Again, more riches for the publisher.

I was joking with an editor of mine this afternoon that CNET News.com should put a little permanent widget on our front page that says something along the lines of, "Has Electronic Arts announced a timeline extension of its offer to buy Take-Two Interactive today? Yes or no." And then it would have a little check-box for each choice.

Now, in all fairness, most days, the "No" box would be checked. But let's be honest here: On an awful lot of days, we'd have to toggle it to "Yes."

Today would be one of those days, as EA announced that it has reached a deal with the U.S. Federal Trade Commission not to buy Take-Two until the FTC completes its look into the proposed merger, or until 45 days after the government tells EA that all is hunky-dory with the takeover.

Now the last time EA said it would extend the deadline for Take-Two to respond to its $2 billion tender offer was May 19. I wrote then that the company was losing its credibility with each new extension, and, well, nothing that has happened since has changed my mind.

That's particularly true since EA hasn't upped its offer for Take-Two, despite the fact that the latter's recent release, Grand Theft Auto IV, has sold for many hundreds of millions of dollars since its record-breaking release on April 29.

For its part, Take-Two has remained resolute to turn down the $2 billion offer, essentially demanding more money, something EA keeps saying it won't agree to.

And it's true that in takeover situations like this one, it's not at all uncommon for things to drag on and on and for deadlines to pass and then pass again. Look at Oracle and PeopleSoft. Or, obviously, Microsoft and Yahoo.

But EA's position seems to be that it has factored in GTA IV's success into its offer price and even though the game did far better than expected, it's still not willing to add even one more dollar to the bid.

Well, fine. In the end, EA may one day get its wish and get Take-Two for its own. But for now, with each new time that we here at News.com have to check that "Yes" box, it just further erodes what little credibility that EA has left on this deal. And believe me, that isn't much.

On June 10, Geek Gestalt hits the highways for Road Trip 2008. I'll start in Orlando, Fla., and visit many of the South's most interesting destinations. Stay tuned, and be sure to keep up, both now and during the trip, with what I'm doing on Twitter.

There are few things that video game publishers--or any consumer products companies, for that matter--like more than reaching big, notable milestones.

So it was with considerable pride that Activision's wholly owned Infinity Ward studio told me Tuesday that its war game, Call of Duty 4: Modern Warfare, has just sold its 10 millionth copy.

Infinity Ward studio head Vince Zampella didn't know exactly how many units the game had sold on each platform it is available on--the Xbox 360, PlayStation 3, and PC--but did say that COD 4 had been most successful on the Xbox.

These days, monster hits like Grand Theft Auto IV and Halo 3 have gotten most of the media's attention for best-sellers, but by reaching 10 million sold, there's no doubt that COD 4 deserves to be mentioned in the same breath as any other title.

And to be sure, it's not the only game that has reached 10 million units moved--Infinity Ward said that COD 4 is one of "less than 10" games to do so since 2000--but it's still a notable milestone, especially when you consider that, at a sticker price of $60 a pop, even when considering that you can buy it for less at some retailers, Activision has raked in many hundreds of millions of dollars with the game.

Of course, one wonders how many more copies it would have sold had it been available on Nintendo's Wii. But Zampella said that Infinity Ward decided not to make the game for that console because "it just doesn't fit on the Wii. We thought it would be compromised to be on (that) platform."

Well, with Guitar Hero III, Halo 3, and Grand Theft Auto IV inspiring record-setting sales in their own right, we might easily see a few more games reach the magic 10 million mark soon. And the next Call of Duty, COD 5, which is being produced by Tryarch, not Inifinity Ward, might see even bigger numbers.

Indeed, Zampella acknowledged that COD 4 has set the bar very high for his studio, and it's hard to imagine Infinity Ward being able to come right back with another 10 million-seller.

But, COD 4 still has some juice left. He suggested that the game is still selling, that it's map pack add-on has sold 1.5 million copies, and that the main game itself is expected to sell a lot more copies this holiday season.

True or not, hats off to Infinity Ward on reaching a milestone few ever reach.

On June 10, Geek Gestalt hits the highways for Road Trip 2008. I'll start in Orlando, Fla., and visit many of the South's most interesting destinations. Stay tuned, and be sure to keep up, both now and during the trip, with what I'm doing on Twitter.

Electronic Arts said Monday that it is once again extending its $2 billion offer for 'Grand Theft Auto' publisher Take-Two. Take-Two retorted by rejecting the offer.

(Credit: Rockstar Games)

"If you don't clean up your room today, you're going to be in trouble," yells Dad.

"I don't want to," retorts the rebellious teen. "I don't have to."

The day ends, and the next day, Dad says, "This time I really mean it. Clean up your room today, or there's going to be hell to pay."

This is exactly what the dynamic between Electronic Arts and Grand Theft Auto IV publisher Take-Two feels like: EA yells, "We're offering to buy you, but you have to decide by our artificially imposed deadline."

In return, Take-Two does nothing, though in the interim, its new game breaks every short-term entertainment industry sales record. That's sort of like winning the science fair the same night as refusing to clean your room.

And then, just like a parent who has lost credibility for not sticking to his or her guns the first time, EA said this morning that it has now decided to extend the deadline for Take-Two's board to accept its $2 billion takeover bid to June 16. Most recently, the offer had expired at 11:59 p.m. on May 16.

In response, Take-Two's board said Monday morning that it was once again rejecting the bid.

This, of course, after an earlier deadline of February 22 had passed and was also extended.

I'm very sure that EA's announcement this morning that Take-Two can still accept its offer had nothing at all to do with the fact that EA desperately wants to own the GTA franchise and get the keys to the bank account with the Scrooge McDuck money bin quantities of GTA IV loot.

Rather, it was couched as a procedural move.

"Extending our offer will allow the (U.S. Federal Trade Commission) review process to continue," said Owen Mahoney, EA's senior vice president of corporate development, in a press release. "EA's offer price remains unchanged at $25.74 per share and our offer is still subject to conditions that include regulatory approval."

Right. To me, this is like Dad saying, "Well, okay, I'll give you another day to clean your room, but only because I'm waiting for Uncle Charlie to decide if your room is clean enough already."

This is becoming rather ridiculous. It's obvious to everyone that EA cannot let Take-Two go, and meanwhile, Take-Two is sitting pretty, counting its new millions.

To be sure, EA had figured in an expected large infusion of cash from GTA IV sales into its original offer. But no one figured on the game bringing in more than $500 million in its first week. Right there, that was a quarter of what EA is bidding for all of Take-Two.

But the offer also did not take into consideration a new movie deal Take-Two signed with Universal Pictures to have its game, Bio-Shock, turned into a movie.

So, Take-Two wants more than the $2 billion EA is offering. Good for Take-Two. I certainly don't have any inside dope on the company's financials and whether or not it can succeed without EA's money, but from here, Take-Two is looking pretty solid right now.

As for EA's new June 16 deadline, I'm thinking that it has all the meaning of, well, its last two deadlines. Which is to say, almost none.

Note: On June 10, Geek Gestalt hits the highways for Road Trip 2008. I'll start in Orlando, Fla., and visit many of the South's most interesting destinations. Stay tuned, and be sure to keep up, both now and during the trip, with what I'm doing on Twitter.

If worldwide headlines about the record-setting first-day and first-week sales of Grand Theft Auto IV weren't enough, the game's publisher and its developer, Take-Two Interactive and Rockstar Games, now have a Guinness world record to boot.

On Tuesday morning, Guinness issued a press release certifying the game's insanely profitable launch as the entertainment industry's best ever for one day ($310 million) and one week ($500 million).

Interestingly, in stories I've written about this previously, I wrote that GTA IV had broken the single-day record of $170 million previously held by Bungie Studio's Xbox 360 game, Halo 3. In many stories, by both me and others, it has been exhaustively pointed out that the best video game launches had far outdone those by the best films.

According to the Guinness release, however, the previous record was actually not a video game at all. Rather, it was J.K. Rowling's Harry Potter & the Deathly Hallows, the final book in that cash-cow series, which when it launched last July, earned $220 million in its first 24 hours.

If this is true, then Microsoft--which owned Bungie at the time--was wrong when it touted the first-day sales of Halo 3 as the then-best entertainment-industry launch.

Funny that despite the incredible sales of the last Harry Potter, no one, myself included, had thought to include books on the list of best launches.

Well, no matter. Now, even that record has fallen to the might of the GTA IV machine.

Humorously, as part of its release, Guinness is hawking its new Guinness World Records: Gamer's Edition 2008, obviously trying to tie the GTA IV record to the new book. It's a natural link to make, of course, although the book was published before the new record.

I have the book, and it's kind of fun. There's a lot of interesting video game trivia, obscure records, and much more.

But, alas, no mention of the GTA IV record.

On June 10, Geek Gestalt hits the highways for Road Trip 2008. I'll start in Orlando, Fla., and visit many of the South's most interesting destinations. Stay tuned, and be sure to keep up, both now and during the trip, with what I'm doing on Twitter.

'Grand Theft Auto IV' broke the all-time records for single-day and one-week entertainment industry sales. It looks like it could be tough for any forthcoming game to knock GTA IV off the top of the hill.

(Credit: Rockstar Games)

Though Halo 3 held the all-time entertainment industry record for single-day sales for eight months, it could be a long time before anyone bests the record-shattering sales achieved by GTA IV.

On Wednesday, Take-Two Interactive, which owns GTA IV developer Rockstar Games, announced that the new game had raked in all-time records of $310 million on its launch day of April 29 and $500 million during its first week. The single-day figure shattered the previous record, set last September by Halo 3, of $170 million.

And given how quickly Bungie Studios' Halo 3 was reduced to second place, it stands to reason that even the monstrous pile of cash GTA IV has earned so far--it has already sold more than 6 million copies, Take-Two said--could be in danger from some game already in the pipeline.

Among the games that are set to be released in the next few months that seem like potential contenders: Electronic Arts' Spore, Blizzard Entertainment's StarCraft II, Konami's Metal Gear Solid 4: Guns of the Patriots, EA's 2009 version of Madden football, LucasArts' Star Wars: The Force Unleashed, Activision's next Guitar Hero offering, Harmonix's next Rock Band version and Nintendo's Wii Fit.

And since we're talking the entire entertainment industry, there's also the small matter of the forthcoming Indiana Jones and the Kingdom of the Crystal Skull from Paramount and LucasFilm.

But according to several industry experts contacted for this story, none of those titles seems likely to score the kind of cash in a single day or single week that GTA IV did. So while one of those games, or possibly another one not listed might some day best GTA IV in total sales, it seems that its short-term sales records are safe for the foreseeable future.

"If you measure in terms of one-day sales," said Michael Pachter, a video game analyst with Wedbush Morgan Securities, "there's likely nothing (that can break the record) until the next GTA."

In large part, Pachter said, that's because the GTA franchise has the significant advantage of being perhaps the world's most popular video game title that is available on multiple video game platforms. Indeed, many analysts have said that the game is not only selling well on its own, but is also driving sales of the consoles it can be played on, Microsoft's Xbox 360 and Sony's PlayStation 3.

By comparison, Halo 3 is only available for the Xbox 360.

"The special thing about GTA is that it's a cross-platform title and can leverage the install bases of both" consoles, said IDC games analyst Billy Pidgeon. "The fact that you could only play Halo on the Xbox 360 made a difference."

And beyond the cross-platform versus single-platform issue, there's also the small matter of the miniscule selection of full-fledged AAA games that simply attract huge audiences.

"Halo and GTA are fairly unique properties in the interactive entertainment world," said Colin Sebastian, a senior analyst for Lazard Capital Markets, "so it's difficult to say if anything in the next couple of years will reach these (early sales) levels."

That said, there's no reason to think that GTA IV will set or hold any kind of long-term sales numbers. While it's certain to make gigantic amounts of money and sell many, many millions of copies, it's not necessarily the kind of game that will sustain its sales over the long haul. Rather, it's the kind of game the attracts hard-core gamers, most of whom want to get it right away.

"If you measure in terms of lifetime sales, I think Wii Fit," Nintendo's forthcoming exercise game, could break sales records, said Pachter. "I think it's going to attach about a one-third rate to all Wiis, and globally, that means (since there have been 20 million Wiis sold), it'll pass GTA IV by the end of next year."

Some people are expecting Spore, the next game from The Sims creator Will Wright, to be a big winner for EA, particularly because The Sims became the best-selling PC game of all time and recently passed 100 million total units sold, counting all its expansions and sequels.

"Personally, I think Spore is going to be a huge influence on the games industry," Pidgeon said. "And I think it's going to do well. I don't know if it's going to be another Sims, but I think it will be broadly popular."

But Spore presents a couple of problems, at least in terms of whether or not it could be an all-time best-selling game. First, it is a PC--and Mac--title, not a console game. And secondly, according to Pidgeon, it doesn't seem an obvious choice for endless expansions like The Sims franchise is.

Another set of titles that could contend for the all-time sales records, though probably not the short-term records, are the Guitar Hero and Rock Band franchises, since they will likely have an endless supply of expansions and accessories. And they have long-term potential that even GTA probably can't match.

"Guitar Hero and Rock Band (are) franchises where, when you add the numbers up, they're just spectacular," said Pidgeon. "You see them played in bars, and (they present) a really interesting growth opportunity. There's a lot of room for exciting growth in that sort of product. That's the sort of thing you don't see with GTA.

And while none of the analysts interviewed for this article could see any already announced game topping GTA IV's short-term records, that doesn't mean it won't happen.

In fact, the timing of the GTA IV launch itself could eventually be why it gets surpassed.

"Part of this is also where we are in the hardware cycle," Pidgeon said, explaining that GTA IV was published when the Xbox 360 and PlayStation 3 have only been out for a couple of years. Over time, as millions more gamers bring those consoles home, "it'll be easier for some blockbuster title to sell big."

Uh-oh.

For all the champagne toasts that are no doubt going on over at Take-Two Interactive and its subsidiary Rockstar Games over the grand launch day of Grand Theft Auto IV, there's a bit of a dark cloud brewing.

According to a post on CNET News.com sister site GameSpot, there's a brouhaha afoot in GTA IV forums all over the Internet because of some players' complaints that the game is freezing up on them.

As GameSpot's Brendan Sinclair points out, it was only a month ago that another one of Rockstar's games, Bully had freezing-up problems. Now, with reports of crashes with GTA IV, mostly on the PlayStation 3, but also on the Xbox 360, one has to wonder if perhaps there's someone in Rockstar's QA department that's not doing their job.

Other recent hit games, of course, have also had quality problems. You might recall that some players of Guitar Hero III had problems with their guitar controllers.

So one thing that will certainly help Take-Two and Rockstar get through this relatively unscathed--assuming the reports of GTA IV freezing up are real--is if they react quickly and solve the problem and reach out to their users. If they don't, it won't look good.

'Grand Theft Auto IV' could break the all-time entertainment industry record for first-day sales. That record is currently held by 'Halo 3,' which earned $170 million in its first day last September.

(Credit: Rockstar Games)

Executives at Electronic Arts have to be kicking themselves right about now.

It appears that Take-Two Interactive, the video game publisher EA has been trying to buy for the last couple of months, has a potentially record-breaking hit on its hands with Grand Theft Auto IV. And EA isn't pocketing the cash.

While it's too early to know exactly how many copies of GTA IV sold Tuesday, the game's launch day, anecdotal evidence suggests it will likely be one of the most successful launches in the entertainment industry's history--if not the most.

"We are saying that the launch of this game is tracking to be one of the top three best-selling games," said Chris Olivera, vice president of corporate communications for GameStop, "not of just this year, but the top three games in (our) company's history."

The latest title in what was already one of the most blockbuster game franchises of all time, GTA IV hit store shelves Tuesday morning with midnight madness events nationwide. The game had sparked controversy, with some politicians and critics calling for retailers to avoid selling it, but that didn't seem to dissuade consumers.

"Thirty-five hundred of our stores nationwide did midnight launch events," Olivera said. "One thing was constant through all of it, that there were lines around buildings and down mall corridors" wherever GameStop's stores were.

Last year, Microsoft took the unusual step of releasing first-day sales figures for its mega-hit Halo 3 because that game set the all-time entertainment industry record for launch day sales, $170 million.

'Halo 3' earned $170 million on its first day of sales. But Take-Two's 'GTA IV' looks poised to break that record and become the single highest-earning entertainment product in history, including movies.

(Credit: Bungie)

While we may not know if that's true until industry analyst firm The NPD Group reports April sales early next month, there's reason to believe the Halo 3 record will be short-lived.

Partly, that prediction stems from reports that GTA IV publisher Take-Two said it had worldwide preorder demand of 6 million copies of the game--or about $360 million worth at the game's $60 price tag.

There are also comments, like those expressed to CNET News.com sister site GameSpot by Wedbush Morgan Securities analyst Michael Pachter: "There is no question that GTA will be huge. I think that the game will sell 11 (million) to 13 million copies by calendar year end, with probably 4 million the first week."

On the other hand, suggested NPD analyst Anita Frazier, if GTA IV breaks the Halo 3 record, Take-Two might find a reason to release the game's first-day sales numbers itself.

The console factor
One interesting difference between the launch of GTA IV--which was released for Xbox 360 and PlayStation 3--and its predecessor, the hugely popular GTA: San Andreas, is the install base of the consoles the games are available on.

Frazier said that when GTA: San Andreas was released in 2004, there was already an install base of 25 million PlayStation 2s, the only console that game was initially released on. By comparison, GTA IV is coming out earlier in the release cycles of the Xbox 360 and PlayStation 3.

"The combined install base of the PS3 and Xbox 360 now sits at 14 million," Frazier said, "and surely huge hardware numbers will be driven by the release of GTA IV.

Olivera concurred.

"This (game) is definitely drawing people into (GameStop) stores to also pick up hardware," Olivera said, "both the Xbox 360 and the PS3."

Another metric of the intense interest in GTA IV: statistics from Gamespot's Trax service, which measures site traffic for specific games.

According to Gamespot Trax, Gamespot users did 70,441 searches for "Grand Theft Auto IV" in the 30 days prior to its release, vs. 20,772 for Halo 3 and 10,598 for Guitar Hero III, another one of the best-selling games of all time.

So, as Take-Two's executives are no doubt popping champagne and toasting the massive initial success of their new game, one has to wonder what the thinking is over at EA and whether it will have to modify its $2 billion bid for Take-Two.

As Lazard Capital Markets analyst Colin Sebastian told me Monday, "The expectations for GTA were already justifiably very high. EA understood that when they made their bid...Every day that passes, they're (going to be) losing out on GTA revenues, so they're likely to lower their bid over time...But if GTA massively exceeds their expectations, that could be a scenario where EA might have to raise their bid."

In the meantime, stay tuned to see if Take-Two issues any press releases about GTA IV Wednesday. If it does, I'm willing to bet that will mean Halo 3's record will be history.