AM Press: Sega's show, July 2005

July 15, 2005 issue
Last updated on July 11, 2005

Special news

Aruze's patent lawsuits were lost against SNK Playmore and against Sammy.

SEGA unveiled “HOD4” and other products at an exhibition of new products.

Overseas

BACTA in the UK has sold ATE, which is in charge of exhibitions.

American music game company Roxor has partnered with Andamilo.

Domestic

The venue for this year's AM show has been changed to Makuhari, and the scale will be slightly larger than last year.

USJ will carry out a capital increase through third-party allotment, which will be underwritten by GS Capital and others.

News digest of July 15, 2005 issue

The photo is from Sega's new product exhibition. Above are (from left) General Manager Toshiya Tabata, Managing Director Yoshiharu Suzuki, and Executive Officer Shigeru Yamashita, who are in charge of domestic commercial sales for Sega. Below, I am trying out “The House of the Dead 4” on a 62-inch wide screen.

Main news from 10 years ago

South Korea's Seoul District Public Prosecutors Office has arrested and indicted 21 people who copied “Neo Geo” game software. France's Eurodisney has been renamed Disneyland Paris. Sega received permission to use Disney characters for prizes. Capcom introduced “Street Fighter Zero” at a new product exhibition. Namco's CG game “Alpine Racer” has been shipped. (July 15, 1995 issue)

Main news from 20 years ago

JAMMA Chairman Masaya Nakamura gave his opinion as an informant during the Diet deliberations on a bill to revise the law that would clearly state the copyrights of computer programs. Namco also won a lawsuit against Arrow Electric. The Osaka Prefectural Association invited Akio Nakanishi, chairman of the preparatory committee for the establishment of the Association, and proposed that they would not take over NAO and would fight against regulations on entertainment businesses. Bob Lloyd of Data East USA has been appointed as the Chairman of AAMA. (July 15, 1985 issue)

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[News Digest]

1. On July 7, both patent lawsuits filed by Aruze were defeated. One was a lawsuit alleging that SNK Playmore infringed on Aruze's patent with its pachislot machine “Metal Slug,” but the Tokyo District Court rejected Aruze's lawsuit, stating that there was no patent infringement because it “does not fall within the technical scope of the patented invention.” SNK Playmore considers this lawsuit to be harassment, and has filed a lawsuit against Aruze for damages, as well as a criminal complaint for obstruction of business by fraudulent means. The other case is a lawsuit filed by Aruze in 2002 regarding Sammy's pachislot machine “Zyuoh.” The Japan Patent Office ruled that the “flag carryover” patent itself claimed by Aruze was invalid, but Aruze filed a lawsuit to cancel the trial decision, which was dismissed by the Tokyo High Court, so the lawsuit was appealed. The Supreme Court decided to dismiss Aruze's appeal, effectively confirming Aruze's defeat.

2. SEGA held an exhibition of new products in Tokyo from July 7th to 8th (Osaka on the 12th and Fukuoka on the 14th), showing off many new products including “The House of the Dead 4” (HOD4). “HOD4” is based on the newly developed CG board “Lindberg” to create a slimy feel, and is the first to use a 62-inch wide screen. “Network Match Mahjong MJ3” is the third game in the series, and has added a “Mahjong mode” that allows you to select a mahjong hall with different rules. The above items are scheduled to ship this winter. Arc System Works' “Guilty Gear Igxex Splash” uses the Naomi board, and SNK Playmore's “The King of Fighters Eleven” uses the Atomiswave, both of which are the latest in the series. Gref's shooting game “Under Defeat” was also introduced.

3. At this year's AM Show (September 1-3, Makuhari Messe), 47 companies will be exhibiting in a total of 772 booths, and Prize Collaboration will be exhibiting in 116 booths, for a total of 888 booths, slightly more than last year (last year, 45 companies had 774 booths and Prize Collaboration had 106 booths, totaling 880 booths). Compared to last year, five companies increased, including Cave and Nippon System, and three companies decreased, including River Service. The largest exhibitors (in parentheses are last year) are Sega with 135 booths (170 booths), Namco with 120 booths (100 booths), Prize Collaboration, Aruze with 77 booths, and Banpresto. 65 booths, Taito 60 booths (the above three companies remain unchanged), Capcom 30 booths (25 booths), Able Corporation 25 booths (12 booths), Atlas 22 booths (20 booths), etc. Konami will not be exhibiting this time either.

4. BACTA, the British gaming machine industry association, announced on June 23 that it has decided to transfer the company it has owned, ATE, to Clarion Events, a company specializing in exhibitions. BACTA, which covers a wide range of fields such as gaming machines, amusement machines, and amusement facilities, holds the world-famous exhibition ATEI/ICE every January through ATE, and has also been involved in publishing activities, but with the recent major revisions to the gaming law, it became necessary to devote all efforts to it, so they decided to let go of ATE, which already has a stable business. Clarion Events will continue to partner with BACTA even after acquiring ATE.

5. On July 7, USJ (USJ), which operates Universal Studios Japan, announced that it will conduct a third-party allotment of capital for a total of 25 billion yen to GS Capital Partners, an investment fund affiliated with Goldman Sachs (GS), and the Development Bank of Japan. However, the allotment will be preferred shares with no voting rights, and if these are converted into common shares, GS Capital will become USJ's largest shareholder, owning 31%. The purpose of this move is to reduce the 125 billion yen in interest-bearing debt that is putting pressure on USJ's management, and it was planned in anticipation of a stock listing within seven years. There is a condition that if the stock cannot be listed, the full amount will be refunded. The company plans to accept three outside directors from GS and other companies at the extraordinary general meeting of shareholders on July 21st. In the fiscal year ended March 2005, USJ had an operating surplus for the first time in three years, but its final profit and loss was a deficit of 5.1 billion yen.

6. On June 18th, Roxor Games of the United States announced that it will be shipping “Pump It Up in the Group 2” in partnership with South Korea's Andamilo, which has a proven track record in music games. According to the announcement, the music content, graphics, and operability of Roxor's “In the Group 2” have been enhanced by adding a cabinet with a 33-inch screen, which is popular for Andamilo's “Pump It Up” series, and has expanded the number of songs. Konami has filed a lawsuit against Andamilo to no avail, and Roxor has also filed suit in May of this year, but has so far been unsuccessful.

7. The Walt Disney Company announced on July 8 that the founder's nephew, former Vice Chairman Roy Disney, and former executive Stanley Gold have dropped their lawsuit against the company. These two shareholders have opposed CEO Michael Eisner for the past five years. Eisner will retire in September, but the company decided to promote President Robert Iger to succeed him as CEO, and his former vice chairman and others filed a lawsuit in May seeking to invalidate his nomination. However, as the next management team was being decided one after another, it was inappropriate to fight any further, so they reconciled. Roy Disney will become an honorary director and consultant.

8. On June 24, Atlas announced that it had decided to cancel the building rental contract related to "Game Panic Yokohama" and withdraw from the facility, resulting in an extraordinary loss of 146 million yen. “Game Panic Yokohama” opened in October 1999 in the commercial facility “Jack Mall” in Yokohama's Minato Mirai in collaboration with the cafe bar “Gas Panic” and gained popularity, but business was sluggish due to the emergence of competing stores, and the store was closed in May of this year. Extraordinary losses are due to non-refund of guarantee deposits and removal of equipment. The company will continue to open stores, but it also plans to close or sell unprofitable stores.

◎ Since 1974, the industry magazine "Game Machine" has been reporting industry news on commercial amusement machines, including TV game machines, amusement facilities, etc. twice a month, but the print publication was discontinued at the end of June 2002.