Midway 3rd Q CC notes
Neil: Welcome.
Coin Ops: Revenue stats
During 3rd, had 3 new games and 5 old continuing to be sold
Hydrothunder #1 earning game in almost all placements, and
we expect continued strong sales
NBA Showtime can switch to NFL Blitz, and earnings are
doing well, but MWY seems less enthusiastic here.
During 4Q, MWY expects continued strong sales in HT, NBA, Gauntlet
and there will be 2 new coin ops, Roadburners (motorcycle racing game) and an off road customized vehicle game
Re: coin ops, MWY is well-positioned, but due to general softness, MWY is cautious, and expects a more successful home adaptation of the current and new coin-op products.
Re: home games
Overall depth of product has been very disappointing, and this will continue into 4Q, with only 3 new home games expected and several
cancelled projects.
Encouraged by rampage world tour, color gameboy stuff continues
to perform very well
The value priced PSX category 1995 product is doing well
Looking forward to first half of F2K (starting July):
During the first 6 mos of FY2000, the comparisons will be as follows.
Last year, 2 new PSX, this year 8 new PSX
Last year, 6 new N64, this year 6 new N64
Last year, 4 new CGB, this year 4 new CGB
Last year, 0 new Dreamcast, this year 5 new Dreamcast
PSX 2 to be released in calendar 2000, favors cos with
3d experience, great depth internally, and with strong
brands and licenses due to high development costs - doesn't
say with any enthusiasm really whether MWY is one of these
Dreamcast -- $199, encouraged as major customers were enthusiastic
about Sega's marketing plans, affords MWY a unique opportunity
at launch, there will be 4 MWY products, making up 1/3 to 1/2 of
the total initial products
PC market - we're continuing to work hard; we are laying out our
new PC strategy at the beginning of the next fiscal year
Neil then chimes in : I want to point out re: first 6 mos of 2K, I should emphasize that last year we had two strong internally developed products and this year there will be 6 - HT, NBA Showtime, Boxing game, World Combat Special Forces, which could be the next Tombraider, using the Mortal Kombat brand - this is a new birth for that brand
Open up to Q's
initial titles for DC: NFL Blitz, MK Gold, Ready to Rumble (boxing
game), Hydrothunder
Ready to Rumble has received a huge reception; this is the first product being broken out without a coin op
Paraphrase of the CEO:
Two goals: to grow quality product new introductions, and to increase
number of places we sell it. We generate nothing on PC, and at the new
fiscal year, we will announce new issues to address the PC marketplace
I will admit that not all of our product has been quality. As you know, all of our profits from home sales are derived in the US. The export markets are very significant, and when we tap that, we have the ability to substantially increase our profits
Unfortunately, it's bunched, too much and too little. I think that right now we're getting out of the woods, and we'll see the reverse of that.
MK Gold will only be available for DC; Special Forces will be on the
other platforms
Will build and buy to obtain a PC presence.
Good investing,
Mike
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