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  • Verbatim: When Lawyers Attack, Or, Attorneys Battle Over the Antitrust Implications of the As-Yet Unconsummated Electronic Arts/Take-Two Deal

    N'Gai Croal | Apr 29, 2008 01:20 PM
     Poster for the 2001 film "Antitrust," courtesy impawards.com

    Oft-quoted Wedbush Morgan analyst Michael Pachter isn't just ubiquitous, he's also multifarious. Did you know that in addition to being a financial wizard (Level 60, no doubt) with 15 years of mergers and acquisitions experience under his belt, he also has a law degree from Pepperdine and a master of laws in taxation? We bring this up because in today's installment of Verbatim, we've got a full-scale legal battle among three parties over the best way to interpret the antirust implications--or lack thereof--in Electronic Arts' proposed acquisition of Take-Two. The combatants are as follows:

    • Michael Pachter (see above for his extensive credentials)
    • Justin Blankenship, Level Up legal affairs columnist; former Federal Trade Commission lawyer (in the Mergers 2 division, which reviewed mergers in the chemical, technology, and entertainment fields)
    • Mark Methenitis, editor-in-chief of the Law of the Game blog; and lawblogger for Joystiq; and a licensed attorney in Texas

    We've even got a journalist caught in the crossfire: GamePolitics' Dennis McCauley.

    The idea behind Verbatim is that we scour the Internet for what various people have said about a particular topic; isolate the most salient excerpts; and compile them in a single, convenient location for your reading pleasure. To see how these lawyers (and journalist) debated this particular issue, click on the link below.

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  • Rock-and-Roll Fantasy: Harmonix, Creator of Rock Band and Guitar Hero, is Changing Videogames

    Editors | Apr 29, 2008 12:15 PM

     

    Harmonix founders Eran Egozy (left) and Alex Rigopulos at their offices in Cambridge, Mass. Photo by John Huet for Newsweek.

    In this week's magazine, NEWSWEEK's Keith Naughton talks to the creative team behind Rock Band:


    It's a warm Tuesday night at the Olde Fort Pub in Ft. Thomas, Ky., just across the river from Cincinnati, and the regulars are rolling in with the early spring breeze. The Reds game is on the big screen, but no one is watching. Kid Rock wails from the jukebox, but no one is listening. The pool table is lit, but no one is playing. Instead, the crowd is cheering on Casey Niehues, 23, as she rips off a blazing guitar solo on Guns N' Roses' "Welcome to the Jungle." But Niehues isn't really playing guitar; she's playing Guitar Hero, the wildly popular videogame.

    As a virtual GNR plays on the flat screen behind the bar, the petite blonde supplants Slash by pounding colored buttons on the fretboard and strumming the plastic "string" on her ax, a game controller more akin to Fisher-Price than Les Paul. But don't try telling these revved-up rockers they're playing a game. "It's just totally different," insists Clem Fennell. Barmaid Rachel Wallingford hollers over the din: "It makes you feel like a rock star."

    But as the band Boston (a Guitar Hero act) might say, it's more than a feeling. It's a cultural high-tech phenomenon that is changing the way we interact with music. Listening and watching aren't enough anymore. Now we want to play along. Millions of us are doing it, including gray-haired gaming newbies who still think Grand Theft Auto is a felony. Since Guitar Hero debuted in late 2005, nearly 15 million copies have rolled out retailers' doors, according to market researcher NPD Group. An additional 1.83 million copies of Rock Band, a new game involving guitar, bass, drums and vocals, have sold since it launched last Thanksgiving. In each game, you play along by pressing color-coded buttons on your instrument in time to colored dots coming at you on the screen. The more dots you hit, the better the song sounds and the more points you earn to get deeper into the 58-song set list. Together, the two multiplatinum hits represent a $2 billion market, analysts say.

    Behind this rock-and-roll fantasy is Harmonix, a Cambridge, Mass., game developer staffed by rock-star wanna-bes and game geeks. The creator of Guitar Hero, and now Rock Band, was founded in 1995 by two quirky artists, who turned their musings as MIT Media Lab partners into a booming business. Today, these old college chums, Alex Rigopulos, 38, and Eran Egozy, 36, oversee a staff of more than 200 in the former offices of Harvard's Russian Studies department, where spike-haired and tattooed employees zip around on Razors among the detritus of musical instruments, both real and simulated. "It looks like we're having band practice," says online community manager Sean Baptiste as he strolls past a giant gong used to call staff meetings to order.

    Harmonix's history is the classic "Behind the Music" story of the 10-year "overnight" sensation, complete with career setbacks and band breakups. In fact, Harmonix lost the Guitar Hero franchise when game giant Activision bought it, along with the game's plastic guitar maker, two years ago. So Guitar Hero III, the latest version, is now playing for a different company. But Rigopulos and Egozy hooked up with MTV, which acquired Harmonix in November 2006 for $175 million and bankrolled Rock Band. MTV, part of media giant Viacom, gave Rock Band the star treatment, with promotions at the Video Music Awards and even its own "Behind the Music" episode.

    Having created a monster market in musical pantomime, the challenge for the gaming glimmer twins is topping themselves. But Rigopulos and Egozy don't seem daunted. Lounging on couches inside the "Star Chamber," a soundproof room where Rock Band plays on a continuous loop on a massive TV, CEO Rigopulos (a rock drummer) looks goth in his black hoodie, while chief technical officer Egozy (a classical clarinetist) looks preppy in his chinos and button-down shirt.


    Read the Full Story Here

     

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  • The Guitar Heroes at Red Octane Lock Up Aerosmith With An Exclusive Arrangement, Leaving Harmonix and Rock Band to Dream On

    N'Gai Croal | Apr 29, 2008 09:10 AM
     Aerosmith singer Steve Tyler in concert

    With the rising popularity of rhythm games like SingStar, Guitar Hero and Rock Band, is it only a matter of time before some acts start going exclusive in exchange for more loot. Ever since Harmonix and MTV Games revealed last year that they would be offering full-length albums for download in Rock Band, followed by Red Octane and Activision's announcement that they planned to build an entire Guitar Hero game around a single band like Guitar Hero: Aerosmith, we've wondered whether the game makers were locking up exclusive rights to featured acts. It hasn't been easy finding out, because the relevant developers and publishers have been surprisingly reticent to discuss this matter.

    Still, we persevered, and with an assist from NEWSWEEK business reporter Ashley Harris, we've learned that Aerosmith is indeed exclusive to Guitar Hero for an unspecified period of time. "It's an exclusive deal for this game," Aerosmith publicist Marcee Rondon told Harris. We confirmed this with Tim Riley, Activision's vice president of music affairs, who told us through Activision PR that "I can say that we do have the band exclusively, and their catalogue should be exclusive to us beyond the one or two tracks they had licensed out to Rock Band before we made our deal." (According to MTV's Rhythm Game Track Finder, it's one song: "Train Kept a Rollin'.")

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  • Page 110: On the Eve of the Grand Theft Auto IV Launch, We Roll With GameStop PR

    N'Gai Croal | Apr 29, 2008 12:15 AM
     Line for the midnight release of GTA IV at the GameStop in Herald Square NYC 

    It's on days like this that we treasure the advantages of our current form of employment. Grand Theft Aficionados took to the streets of Liberty City New York in the driving rain ahead of GTA IV's midnight launch, but we've already been playing the game for a few days now within the warm, dry confines of Level Up HQ. So while the tired, poor masses yearning to play freely huddled outside the GameStop in Herald Square, we enjoyed a savory meal at BLT Market with two PR reps for the specialty videogame retailer: Chris Olivera of GameStop and Judy Grossman of the company's outside publicity firm, Stanton Crenshaw Communications.

    Over dinner, we conversed about new executive hires at GameStop; the company's expansion into Europe; its continuing plans to improve its stores' appeal to women and non-gamers; and a hush-hush new initative that we hope to bring you more details on in the future. Oh, and we also discussed our mutual surprise regarding Rockstar Games securing of co-marketing dollars from both Microsoft and Sony for its 800-pound gorilla, something that Olivera confirmed is highly unusual, because the vast majority of publishers who receive co-marketing support do so from a single platform holder. You might call it Grand Theft Advertising; we call it confirmation that in the battle for number two, the GTA series is a weapon of mass distraction that each side must portray as its very own.

    After supper, the three of us made our way to GameStop's Herald Square location.

    To read this installment of Page 110 in its entirety, click on the link below.

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  • Level Up's Top Five Gaming Tidbits for Apr 29th, 2008

    N'Gai Croal | Apr 29, 2008 12:01 AM
    1. EGO...trip: the third rail of gaming turns into the perfect storm
    2. WHO...'s gonna save your soul now? Reflections on GTA IV
    3. SUB...versiveness, and videogames: possible or not?
    4. ARG...Who would want to play this kind of sick game?
    5. RND...The man behind the muxtape revolution
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