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Why Blockbuster brick-and-mortars will be gone in five years

Over the past few years, Blockbuster has been a victim to a changing environment in the movie rental industry that has seen a mass of people leave brick-and-mortars in favor of online services like Netflix.

No better evidence of this is shown than the comparison between the net income Netflix enjoyed in 2006 ($49 million) and the net loss Blockbuster incurred -- $588 million. Just one year later, Blockbuster was able to turn things around slightly and enjoyed a net income of $54 million, but in 2007, the company didn't have such great luck. According to its most recent filing (September 2007), Blockbuster incurred a loss of $35 million in just one quarter.

So what's really going on at this company? Unfortunately, it doesn't look like anything good. After examining Blockbuster's 10-Q filed in September and evaluating prior year annual reports to estimate the impact on its upcoming annual report sometime next month, it not only looks like this company is in dire straits, I would venture to say that all of its brick-and-mortars will soon be closed. In fact, I give it about five years.… Read more

The SNES is the greatest console of all time

Over the past few months, I decided to go back in time and relive the days of old. Instead of wasting my day doing things that just weren't productive, I decided to get all of my old consoles out (NES, Genesis, SNES, 3DO, 32X, Sega CD, Sega Saturn, Sega Dreamcast, Playstation 1 and 2 and the Nintendo 64) to finally make the decision on which console is truly the best of all-time (so far).

And while the decision was a difficult one -- it's tough to beat Duck Hunt and Super Mario Bros. -- it seemed almost too simple to declare the SNES the greatest console of all-time.… Read more

Why the MPAA and RIAA can't stand college students

According to a recent report from the Associated Press, the Motion Picture Association of America--Hollywood's antipiracy wing--admitted to releasing data that was not only factually incorrect, it grossly overstated the impact college students have on the movie industry's losses.

The MPAA claims its original figure citing a 44 percent loss due to college piracy was inflated by a whopping 29 percent. In fact, the MPAA admitted that the actual impact college students have on the industry's revenue loss is just 15 percent.

"The 44 percent figure was used to show that if college campuses could somehow solve this problem on this campus, then it would make a tremendous difference in the business of the motion picture industry," an expert covering the case said. The new figures prove "any solution on campus will have only a small impact on the industry itself."

So why do the MPAA and the Recording Industry Association of America focus so much of their time on college students? Is there something that these disgusting organizations aren't telling us? Are college students really that bad? Sadly, it's just another example of these organizations trying to vilify the easy target when the real violators are left to roam free.… Read more

If people buy consoles for software, why is the Wii so popular?

A new study conducted by Japanese site Kakaku.com asked respondents what their top concern was when they headed to the store looking for their next console.

49.2 percent of the 3,422 gamers polled indicated that their top reason for picking a console was "because it's compatible with the games they absolutely want to play." Forty-three percent of respondents said they buy the console that's most talked about, and only 6.1 percent care about price.

When asked which console they would choose next, an astounding 28 percent said they would choose the Wii, while 27 percent would choose the PlayStation 3.

Am I missing something here? Almost 50 percent of respondents to a survey, which could or could not have any real meaning, have purchased a console because of its software? If that's true, then why is the Wii such a popular device?

Of course, comparing Japanese buying preferences to North American preferences is extremely difficult. That said, there is one thing that we can derive from this study that easily applies to the U.S. market--very few people are buying the Wii in this country for its library of games.

Let's face it--unless you're a Nintendo zealot who can't keep your hands off everything your savior makes, there's not much to like in the Wii's library.… Read more

The video game industry goes political (and it's about time)

A story in The New York Times yesterday reports that the video game industry has finally woken up and realized that in order to stay strong going forward, it can't rely on 13-year-old pimple-faced kids to promote its agenda.

According to the report, Michael D. Gallagher, chief executive of the Entertainment Software Association, the industry's lobbying arm in Washington, told the Times that its political action committee (PAC) will be up and running by the end of March and will represent Electronic Arts, Microsoft, Sony, and Nintendo, among others.

We will be writing checks to campaigns by the end of this quarter," Mr. Gallagher said. "This is an important step in the political maturation process of the industry that we are ready to take now. This is about identifying and supporting champions for the game industry on Capitol Hill so that they support us."

Am I the only person who thinks it's about time this industry has woken up and realize that political payoffs are the only way to get somewhere in this country? If you want to finally destroy these idiots who think we should kill creativity in video games, look no further than your friendly congressman from the 10th district with his hat in hand.… Read more

Why Steve Jobs has pulled one over on the entire movie rental industry

With services like Movielink, Netflix, and Vudu, the opportunities seem endless for companies that endeavor to turn the corner in the movie rental business. And while all of these companies positioned themselves in the market, Apple was quietly lurking in the shadows, ready to pounce on January 15, 2008.

After showing their hands to arguably the world's most capable CEO, every other movie rental service created an environment where Steve Jobs could pick and choose what features he liked and create a more robust offering.

After all, with rentals ranging in price from $2.99-$4.99 depending on release date and quality, and a 30-second buffering much like we've seen with the Vudu box, why would anyone even consider buying rentals from any other service besides iTunes (with the one exception perhaps being Netflix)?

Simply put, Jobs is poised to conquer yet another industry.… Read more

LionsGate: Piracy a major deciding factor for Blu-ray support

At CES on Monday, I was invited over to the Blu-ray booth to speak with top executives at the major Hollywood studios supporting Blu-ray. And while I didn't have the chance to speak with every studio, I did get to speak with the president and chief operating officer at LionsGate, Steve Beeks.

And while Beeks seemed like he had solid command over the finer points of the movie industry, I was interested to see why his studio chose Blu-ray over the alternative.

Expecting the canned answer like, "Well, we thought it was the superior format and I'm happy to say that we were right," you could imagine my surprise when the very first reason he gave was Blu-ray's piracy controls.

For those of you who don't know, Blu-ray's piracy controls--largely based on AACS, BD+, and BD-ROM Mark--are easily the most stringent format to date and have only partially been circumvented to this point.

Regardless, I was utterly appalled at the thought that with all of its benefits--high-capacity, interesting new features to employ while playing movies, major industry backing--Beeks chose piracy as the first talking point.

Of course, I had to find out more.… Read more

So the high-def format war is over and I don't care

Do you remember earlier this week when I told you that step one of ending the high-def format war relied on Sony's ability to get Warner on its side? Luckily for us, it happened (and yes, I'll take the credit for it).

Is this the most significant development of the entire high-def format war? Sure. But now that we know Warner is backing Sony, I can't imagine Toshiba is feeling good about itself. Not only did it cancel the big HD DVD party here at CES, but we have yet to hear any true official response. If you ask me, the company is in crisis mode right now and desperately trying to justify itself to Paramount.

And while all this is going on, I can't help but not care.… Read more

A roadmap for ending the high-def format quagmire

How many times over the past few months have you heard that "the worst is over" and the chances of the high-def format war finally coming to a close were increasing by the day? If you haven't heard it at least once, you're probably not reading the right stories.

But with all that going on, the war is officially a quagmire for both sides and the chances of getting out of this quickly are diminishing at an astounding rate. Consider this: as it stands, the Blu-ray camp commands roughly 49 percent DVD market share, while HD DVD is trailing slightly behind. To make matters worse, some reports suggest HD DVD may be gaining strength, although most buyers are sitting out.

So what's really going on with this war? Is there an end in sight? Even better, is there a solution in sight that can finally put this to rest? If you ask me, I think this could be over in a month if the Blu-ray camp follows three steps.… Read more

Analyst believes PS3 will win war and I laugh

According to an analyst over at Screen Digest discussing video game trends with Economist, not only will the Playstation 3 beat out the Xbox 360 in this generation's console war, he fully expects Sony's console to surpass the Wii by 2011.

The reason: as more games become available for the Playstation 3, more people will find a reason to buy the console, which will propel Sony to the top spot.

Although I can see where the analyst is coming from, I think he's dead wrong. Will the Playstation 3 overtake the Wii? Absolutely. But will it beat out the Xbox 360 when it's all said and done? Not a chance.… Read more