USA Today: Take-Two Allowed Brant to get Away With Backdating

Here’s the story as reported by Edward Iwata at USA Today:

“Take-Two Interactive Software, maker of Grand Theft Auto and other popular video games, failed to monitor stock-option grants, including a significant number that were backdated over a six-year period, according to an internal report released Monday by the company.

The report found that Take-Two’s (TTWO) compensation committee abandoned its responsibilities and allowed former CEO Ryan Brant “to control and dominate the granting process” and engage in “a pattern and practice of backdating options” from 1997 to 2003.

Brant resigned as CEO five years ago and as chairman last October.

The investigation, by the BDO Seidman accounting firm and the law firm Kasowitz Benson Torres & Friedman, found no evidence that Take-Two’s current executives engaged in misconduct, or that the company’s former or current directors “engaged in willful misconduct or other dishonest acts.”

However, the report found that three former Take-Two executives — a former controller and two former chief financial officers that the report did not name — “appear to have had significant involvement in the company’s stock-option granting process” and declined to appear for interviews with investigators.

Also Monday, Take-Two said that the Nasdaq Stock Market warned the firm that its failure to file its Form 10-K with the Securities and Exchange Commission for the company’s fiscal year ended Oct. 31 was another reason to delist the firm from Nasdaq.

Nasdaq already had warned Take-Two last year that it faced possible delisting for failing to hold its 2006 shareholders meeting and for not filing its quarterly earnings report with the SEC for the company’s third quarter.

Take-Two said Monday it will file its required SEC forms “as soon as practicable,” and will combine its 2005 and 2006 shareholders meetings. Take-Two said in December that it will restate its finances for the fiscal years from 1997 to 2006.

The company disclosed last August that it had received grand jury subpoenas on its stock options from Manhattan District Attorney Robert Morgenthau.

Two years ago, the SEC alleged that Brant, former chief operating officer Larry Muller, former chief financial officer James David Jr. and vice president of sales Robert Blau fraudulently inflated the company’s revenue by $60 million for 2000 and 2001.

Without admitting or denying the charges, the men and Take-Two agreed to pay penalties totaling $9 million and to disgorge more than $5 million in bonuses and interest.”

Australia Bans Blitz

Gamespot.com reports that Midway’s Blitz: The League has become the first victim of of Australia’s restrictive classification system for games. Australia’s Office of Film and Literature Classification refused to give a classification to the game due to drug use which effectively bans the sell of the game in the country.

“‘In the course of the game, the player may access what are purported to be both legal and illegal performance-enhancing drugs for the members of the team. Choosing to use these drugs (by selecting from a menu) will have both negative and positive effects on team-members, for example, by improving their speed while making them more susceptible to injury. Each drug has different characteristics. Fake urine samples may also be acquired for avoiding positive drug tests. While the game-player can choose not to use the drugs, in the Board’s majority view there is an incentive to use them. By using them judiciously, the player can improve the performance of the football team (while managing the negative effects) and have a better chance of winning games, thereby winning bets and climbing the league table,’ the OFLC board report stated.

Under the Australian Computer Games Table of the National Classification Code, titles that ‘depict, express or otherwise deal with matters of sex, drug misuse or addiction, crime, cruelty, violence or revolting or abhorrent phenomena in such a way that they offend against the standards of morality, decency and propriety generally accepted by reasonable adults’ will be refused classification.

Red Ant Enterprises, the local distributor for Blitz: The League, has yet to decide whether it will appeal the ruling, according to marketing manager Ivone Bozzi.”

FFXIII: Versus, SIXAXIS, Cocoons and More

Across the the bigger pond out west, Square Enix has shared more information about the upcoming release of Final Fantasy XIII with two of Japan’s major game publications.
Tetsuya Nomura , FFXIII’s character designer, told Famitsu there would be SIXAXIS support for Final Fantasy Versus XIII though not detailing exactly how it would be used in the game.

Speaking further on Versus with Dengeki, Nomura, who serves as the project’s director, noted the PS3’s power will allow for battles set in areas with great differences in height and the full environment around a player will be used in combat.

FFXIII’s director Motome Toriyama also spoke with Dengeki regarding  Final Fantasy XIII and explained the relationship between the Cocoon world of the game with the underworld. FFXIII’s story begins with an invasion of the Cocoon world by something from the land beneath it causing a panic. Inhabitant’s of the Cocoon world fear their world falling from the sky and fear the outside world even banishing those who’ve had outside influence.
Toriyama also said that the opening scene of the game will be the most intense of any of the Final Fantasy series and shall include an real-time battle scene surpassing the intensity of anything shown in trailers so far. He also promised more surprises as it related to the 20th anniversary of the franchise
.

Year-End Award Watch: GAME.co.uk Giving Fans the Vote

Those sign up for GAME.co.uk’s monthly update are able to vote for their favorite game of 2006 to win GAME.co.uk Best of the Year Awards’ People’s Choice Award.  The awards winners, excluding the People’s Choice Award, are voted on by a panel of in-house experts at the online retailer and will be announced Feb. 1.

Alex Croft, Managing Director for GAME Group’s Online Business said, “The awards offer gamers a chance to be heard on what they think is the best game for 2006. Last year’s awards attracted thousands of voters keen to voice their opinion, giving a real insight into what our customers are playing and essentially helping to shape the gaming landscape for forthcoming titles.”

Gamers can vote at www.game.co.uk/awards until midday on Jan. 30. The People’s Choice Award nominees are:

  • Zelda: Twilight Princess
  • Guitar Hero II
  • Gears of War
  • Company of Heroes
  • Brain Training
  • Pro Evolution Soccer 6
  • LEGO Star Wars II
  • Animal Crossing 
  • Elder Scrolls IV: Oblivion
  • Shadow of the Colossus
  • FIFA 07
  • Medieval 2: Total War

Wire Walk: Games May Feel Psychological Need

Reuter’s Health reports that Immersyve, a Florida-based virtual environment think tank, and researchers from the University of Rochester in New York found that playing video games can satisfy deep psychological needs and, at least in the short term, improve people’s well-being in a recent study.

The study stated that the more a person’s sense of independence, achievement and connectedness to others were being satisfied through a game, the more likely they were to continue playing.

“We think this is really one of the first validated models of what is going on psychologically when people are playing video games,” Dr. Scott Rigby of Immersyve said.

Though Rigby said the research can’t prove that games are always good for you, he does believe it helps balances out the traditional research on games that focuses on the potential harmful effects such as social isolation, addiction, and violence.

“We’re trying to in some sense normalize how people look at video games, rather than seeing them as having some mystical power to addict,” Rigby said.

Perth to Host Games Expo

The GO3 Electronic Entertainment Expo will be held in Perth, Australia in the Perth Convention Exhibition Centre March 30- April 1. There will be a two-day industry conference held there as well as an over 600 participant LAN party and a game development competition to accompany the Expo which promises to the showcase the lastest in games, communication & technologies, hobbies, and electronic entertainment. Confirmed exhibitionists include, Nintendo, Xbox 360, NVIDIA, and 2K.

The list of speakers at the conference include the makers of some heavyweight studios and projects: Rod Furgusson (producer of Gears of War), Harvey Smith (creative director of Midway Studios - Austin) and Goichi Suda (aka Suda 51, president of Grasshopper Manufacture) amongst others.

Another attraction for the conference will be the hosting of the Australian final of the E-Sports World Cup with a prize purse of over $400,000 in the final competition to be held in Paris. Other competitions include the aforementioned Game Developers Competition, a national Cos Play competition, and and Dance Dance Revolution competition.

The online LAN party will feature series of structured competitions for prizes. The games officially listed as part of this attraction are Battlefield 1942, Battlefield 2142, Counter Strike: Force, Counter Strike 1.6, Quake 3, Quake 4, Unreal Tournament, Trackmania Nations, and Warcraft 3: Frozen Throne.

Neversoft to Develop Next Guitar Hero

Ending months of speculation of whether Neversoft would be the inherit the developer duties for the Guitar Hero franchise with Harmonix under the MTV umbrella, Neversoft’s website in a very large announcement says the company is seeking help in making a new Guitar Hero title. There’s currently no information on when or for which systems a the upcoming game would be released, information will surely come along the pipe after the development team is put together.

Reuters: Comic Book Characters Re-energized in Games

Stan Lee, creator of Marvel Comic icons such as the X-Men and Spiderman, called video games “the ultimate in entertainment” and “more exciting, more colorful and more complex than motion pictures.”

“In a movie, you just sit and watch. [In a video game] you’re not only seeing the story but you’re participating in the story,” said Lee.  The comic book creator did admit however not being a skilled game player.

The games not only have re-energized the characters themselves, but have generated major sales at retailers. Activision’s Marvel: Ultimate Alliance has generated over $56.6 millions dollars since it’s release last fall according to the NPD market research firm. Spiderman games have been a huge hit netting revenue of over $451.9 million in lifetime U.S. sales while the X-Men franchise has total U.S. sales of more than $224.2 million.

But for Lee he says his role will be limited to meetings with game makers about content and narration and getting involved in promoting of his beloved creations while he continues to write comic stories.

“I don’t think you ever outgrow your love of things that are bigger than life. The stories, to me, are like fairy tales for grown-ups,” he said.

Games and God

Sun-Sentinel.com ran a feature today on Dr. Butch Rosser and whom will take part a panel on the use of video games and faith at the 10-day Otronicon festival in Orlando, starting Jan. 20. Nicknamed the “Xbox Doc,” Rosser works as surgeon in Beth Israel Medical in New York City, but hosted several seminars for the festival. Here are some highlights from him in his interview with the Sun-Sentinel:

Used so often by so many kids, video games are a logical way to teach young people about faith and morals, Rosser said. ‘We want something that’s fun,’ he said, ‘that goes to the masses.’

Still, he said, there is a line to be drawn.

Rosser mentioned ‘Catechumen,’ in which players use ’spiritual weapons’ such as a lightning sword, a drill sword and an explosive staff to defeat the forces of evil. The game has gotten positive reviews, but Rosser questioned its premise.

‘Now it’s OK for angels to be armed,’ Rosser said. ‘That is labeled under a Christian game, and it is not. . . . This is not where I think we should be going.’ Instead, cited Digital Praise, a company with products focusing on tamer fare such as the Max Lucado Hermie & Friends bugs.

Panelist Waymon Armstrong said his company, Engineering & Computer Simulations, has focused on high-tech weapons, but he hopes to delve into games touting faith and education. Just as The Simpsons has religious themes, he said, ‘we have to convey this as subtly.’

Wire Walk

Here’s a rundown of some news off the AP, Reuters, and AFX wires:

360 to Launch in China

Microsoft is expected to release the Xbox 360 in China sometime in the coming months according to industry insiders. Talks with Chinese internet service providers and personal computer makers have gone on since late last year in preparation for the impending launch.
The company has also been checking with the Chinese culture and informations to be certain the government is comfortable with the system. The government reviews video game content in China and it’s stance on the 360’s games may be the determining factor on how soon the system launches.
“We take a long-term approach to each market and continue to evaluate the China market for opportunities,” Andres Vejarano, Regional Marketing Director at Microsoft’s Entertainment & Devices Division for Asia & Greater China, said in an e-mail to a Reuters.

Microsoft has giving no official comment on when the system will launch, however retail industry insiders speculate the system could launch in mid-February.

-Reuters

Gaming for Credit

Jacksonville State University this semester is offering a course that allows students to play video games for credit. But don’t be fooled, this is a high-demand computer science course according to course instructor David Thornton.

The course is an upper division video game design class based on the popular program at Southern Methodist University. The course to open to all majors rather than being computer science student exclusive. Students will pitch video game ideas to Thornton and then the instructor will select the best ideas and put together team to develop the ideas.
“It sounds silly, but they will have to play video games,” said Thornton. You have to see what’s out there on the modern market to make something good.”

The students, however won’t have a fully playable game at the end of the course. The courses aim instead is to present the story and graphics ideas, design the projects and develop market plans.
“In the old days, a video game could be developed by a couple of computer programmers and a dream,” he said. “Our goal is to assemble such teams from students who have skills in creative writing, art, music, theater, psychology, marketing and computer science. After that, we let them develop ideas and hope they can create something amazing.”

-AP

Columbine Game Pulled from Slamdance 

The Slamdance Film Festival, Jan. 18-27, pulled the Super Columbine Massacre RPG! game because of inability to justify keeping it in the Guerrilla Gamemaking competition said festival co-founder and president Peter Baxter.

“I spoke to people who are still suffering very much from Columbine,” Baxter said. “Some things are more important than one game or a festival.”

The downloadable game created by Danny Ledonne of Alamosa, Colorado has players take the roles of Columbine shooters Eric Harris and Dylan Klebold. The game has cartoon graphic and shows pictures and writings of Harris and Blebold. Ledonne said he was a sophomore in high school when the shootings took place in April 1999.

“I had the same kinds of issues in high school that the two shooters did and I just dealt with it differently, fortunately,” Ledonne said.

Ledonne said he believed the game would spark serious discussion about the shootings, which were blamed in part on the teens’ exposure to violent games. Baxter said the festival would add a discussion session this year about the game.

“They picked up something that they, in the end, didn’t have the courage of their convictions to stand behind,” Ledonne said.

University of Southern California’s Interactive Media Division withdrew it’s planned of fellowships to the winners as did six gamemakers pull their entries from the festival.

“They courted very avant-garde, independent gamemakers and if you’re going to do that, in the same way you stand by a very avant-garde filmmaker, you need to be prepared to stand by a gamemaker,” said Tracy Fullerton, associate professor of USC’s program.
- AFX

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