News From Terre Haute, Indiana

Z_CNHI News Service

August 16, 2013

Disney enlists Buzz Lightyear to lure Activision's gamers

LOS ANGELES — An ad for Walt Disney Co.'s new Infinity video-game system features the Pixar characters Buzz Lightyear and Sulley squaring off against a phalanx of movie villains.

Real-world combat moves to toy stores Sunday when Disney, the world's largest entertainment company, introduces Infinity. The system, using technology that combines collectible figures with onscreen play, goes head-to-head with the top-selling "Skylanders" game from Activision Blizzard Inc., the largest independent U.S. video-game publisher.

For Disney Chief Executive Officer Robert Iger, Infinity represents the best shot at reviving his only unprofitable division, an interactive unit that lost $216 million last year. The product will compete with "Skylanders SWAP Force," the next installment in a $1.5 billion franchise that Activision CEO Robert Kotick is counting on as he engineers an $8.17 billion buyout of his largest investor.

"Disney is going to put a lot of marketing dollars into this platform," said Michael Hickey, a Denver-based analyst at Benchmark Co. "They have a treasure chest of intellectual property. They're going to market the hell out of it."

Infinity links collectible figures with game consoles. When players set plastic characters from Disney's "Pirates of the Caribbean" or "Monsters" movies on top of the unit, they appear on screen as game characters and can interact, the first time the company has put characters from different films together in a game. Additional toys and discs, introducing other characters and features, cost $5 to $13.

Infinity's $75 starter kit includes a base unit that connects to consoles such as Sony Corp.'s PlayStation 3, Microsoft Corp.'s Xbox 360 and Nintendo Co.'s Wii U. The Disney game and earlier versions of Skylanders are rated as suitable for children ages 10 and older, according to the Entertainment Software Rating Board.

"We've had our, call it fits and starts in this business, and we think we are due for a hit," Iger said in an Aug. 9 interview with Fox Business Network. "And we believe Infinity is that hit."

Tony Wible, an analyst at Janney Montgomery Scott LLC in Philadelphia, predicts Infinity will lead Disney's interactive unit to a $123 million profit in fiscal 2014.

Under the direction of John Pleasants, co-president of Burbank, California-based Disney's interactive division, the company has cut back on releases of traditional console-based video games. By developing Infinity as a game platform rather than a standalone title, Pleasants is betting he can develop and sell new products at a lower cost than standalone games.

"It's something we'll be able to live on for years and continually add to it," Pleasants said in a interview earlier this year.

Kotick is working to defend a product that allowed Santa Monica, Calif.-based Activision to buck declining industry software sales and increase revenue 2.1 percent to $4.86 billion last year. He's relying on "Skylanders" earnings to help repurchase most of the 61 percent stake in his company held by Paris-based Vivendi SA.

"Skylanders" is the top-selling video-game title this year in North America and Europe, including toys and accessories, according to Activision. The company will increase marketing outlays this year to meet the Infinity challenge, said Eric Hirshberg, who runs Activision's publishing unit.

"While this genre we've created will face more direct competition than ever before, every indicator tells us that 'Skylanders' franchise is solidly on the rise and has both the cultural momentum and the product innovation to keep it that way," Hirshberg said in an Aug. 1 conference call.

The "Skylanders SWAP Force" starter kit costs $75, with more characters priced at $15 each. Retailers have committed at least 25 percent more space to the Oct. 13 "Skylanders" release compared with last year, Hirshberg said.

Hickey, who recommends buying Activision shares, forecasts Infinity will produce sales of $200 million for Disney this year, while he's predicting $500 million for "Skylanders," an increase from $350 million in 2012.

While both products primarily target boys, Infinity will have broader appeal, including girls and adults who want to collect the figures, said Michael Pachter, an analyst at Wedbush Securities Inc. in Los Angeles.

 "Infinity is more of a toy customer, 'Skylanders' is more a game customer," Pachter, who has an outperform rating on Activision, said in an interview.

Target Corp. and Amazon.com Inc., have been taking Infinity orders for months. GameStop Corp., the largest video-game retailer, has dedicated space in its stores for Infinity toys and is working with Disney on promotions such as a free magazine for early buyers, according to Kristin Djurdjulov, a vice president for marketing at the Grapevine, Texas-based company.

Toy R Us Inc., the largest toys-only retailer, is putting Infinity boutiques in the front of all its stores, according to Richard Barry, the company's chief merchandising officer. The Wayne, N.J.-based retailer is selling exclusive figures developed by Disney and opening its stores two hours early on Aug. 18 to meet demand.

At a Disney fan convention in Anaheim, California, on Aug. 9, Brenden Stark, a 41-year-old website director from Riverside, grinned as his 7-year-old son Andrew took Sulley, a character from "Monsters Inc.," on an aerial ride in Cinderella's coach at an Infinity trial station.

Andrew has already played through all of the levels of the "Skylanders" games, Stark said. Asked if his son might have to choose between the two games this year, Stark shook his head.

"We'll probably buy them both," he said.

 

1
Text Only | Photo Reprints
Z_CNHI News Service
  • Screen Shot 2014-04-16 at 12.51.22 PM.png VIDEO: Toddler climbs into vending machine

    A child is safe after climbing into and getting stuck inside a claw crane machine at a Lincoln, Neb., bowling alley Monday.

    April 16, 2014 1 Photo

  • portraitoflotte.jpg VIDEO: From infant to teen in four minutes

    Dutch filmmaker Frans Hofmeester’s time lapse video of his daughter, Lotte — created by filming her every week from her birth until she turned 14 — has become a viral sensation.

    April 16, 2014 1 Photo

  • Victimized by the 'marriage penalty'

    In a few short months, I'll pass the milestone that every little girl dreams of: the day she swears - before family and God, in sickness and in health, all in the name of love - that she's willing to pay a much higher tax rate.

    April 15, 2014

  • Allergies are the real midlife crisis

    One of the biggest mysteries is why the disease comes and goes, and then comes and goes again. People tend to experience intense allergies between the ages of 5 and 16, then get a couple of decades off before the symptoms return in the 30s, only to diminish around retirement age.

    April 15, 2014

  • Lindley, Tom.jpg Wildcats aren't champs but we're all still watching Calipari

    Kentucky coach John Calipari is a college basketball phenom for his ability to knit together championship-caliber teams of freshmen. How long will Calipari's success last as other coaches catch on?

    April 15, 2014 1 Photo

  • treadmill-very-fast.jpg Tax deduction for a gym membership?

    April marks another tax season when millions of Americans will deduct expenses related to home ownership, children and education from their annual tax bill. These deductions exist because of their perceived value to society; they encourage behaviors that keep the wheels of the economy turning. So why shouldn't the tax code be revised to reward preventive health?

    April 15, 2014 1 Photo

  • bomb1 VIDEO: A year after marathon bombing, Boston remains strong

    The City of Boston came together Tuesday to honor those who were injured and lost their lives at the Boston Marathon on the one-year anniversary of the bombing. While the day was sure to be emotional, those affected by last year's race are showing they won't let the tragedy keep them down.

    April 15, 2014 1 Photo

  • Google acquires drone maker Titan Aerospace to spread Internet

    Google is adding drones to its fleets of robots and driverless cars.
    The Internet search company said it acquired Titan Aerospace, the maker of high-altitude, solar-powered satellites that provides customer access to data services around the world. Terms of the deal weren't disclosed.

    April 14, 2014

  • E-Cigarettes target youth with festivals, lawmakers say

    The findings, in a survey released Monday by members of Congress, should prod U.S. regulators to curb the industry, the lawmakers said. While e-cigarettes currently are unregulated, the Food and Drug Administration is working on a plan that would extend its tobacco oversight to the products.

    April 14, 2014

  • Search teams will send unmanned sub to look for missing Malaysian airliner

    Teams searching for a missing Malaysian airliner are planning for the first time to send an unmanned submarine into the depths of the Indian Ocean to look for wreckage, an Australian official leading the multi-nation search said Monday.

    April 14, 2014

  • Why Facebook is getting into the banking game

    Who would want to use Facebook as a bank? That's the question that immediately arises from news that the social network intends to get into the electronic money business.

    April 14, 2014

  • Screen shot 2014-04-11 at 4.49.09 PM.png Train, entertain your pets with these 3 smartphone apps

    While they may not have thumbs to use the phone, pets can benefit from smartphone apps designed specifically for them.

    April 11, 2014 1 Photo

  • Stepping forward: The real Colbert

    Letterman changed the late-night TV game between his run on NBC's "Late Night" and starting the "Late Show" franchise in 1993. And while it's tough to replace a pop-culture icon, Colbert, in terms of pedigree and sense of humor, makes the most sense.

    April 11, 2014

  • Millions of Android phones, tablets vulnerable to Heartbleed bug

    Millions of smartphones and tablets running Google's Android operating system have the Heartbleed software bug, in a sign of how broadly the flaw extends beyond the Web and into consumer devices.

    April 11, 2014

  • mfp file Hoffner Fired coach unjustly accused of visiting porn sites

    The president of Minnesota State University-Mankato accused a football coach of looking at Internet porn on a work computer before firing him, an arbitrator has revealed. The official said the claim could not be supported, and the coach shouldn't have been fired.

    April 11, 2014 1 Photo

  • 25801486.jpg VIDEO: Northern California bus crash kills 10

    At least nine people died in Northern California on Thursday night, in an accident involving a bus, a car and FedEx truck. The bus was filled with high school students from Southern California who were on their way to visit a college campus.

    April 11, 2014 1 Photo

  • taylor.armerding.jpg Obama's equal pay exaggeration leads us all into danger

    The president's claims of national shame over gender-based pay inequity spring from distorted calculations, as well as some convenient political math.

    April 11, 2014 1 Photo

  • mfp file Hoffner Big win for college coach wrongly accused of child porn

    The ex-coach of Minnesota State University-Mankato - cleared on child porn charges - gets his old job back or could take the difference in pay should he decide to stay in a new position in North Dakota, an arbitrator has ruled. Todd Hoffner was accused when a technician found videos of his young children on his school-issued cellphone. Officials in Mankato fired him even though a judge had thrown out the charges.

    April 10, 2014 1 Photo

  • Teens trading naked selfies for mugshots

    Will teenagers ever learn? You think yours will. Maybe so. But it's likely that was also the hope of the parents of children who were so shamed by nude photos of themselves that went south - how else can they go - that they killed themselves.

    April 10, 2014

  • Boston doctors can now prescribe you a bike

    The City of Boston this week is rolling out a new program that's whimsically known as "Prescribe-a-Bike." Part medicine, part welfare, the initiative allows doctors at Boston Medical Center to write "prescriptions" for low-income patients to get yearlong memberships to Hubway, the city's bike-share system, for only $5.

    April 10, 2014

  • Lindley, Tom.jpg Too much of a good thing at UConn?

    The Connecticut Huskies dominate women's college basketball - which makes for a boring game.

    April 10, 2014 1 Photo

  • DayCareCosts.jpg Day care's cost can exceed college tuition in some states

    Most parents will deal with an even larger kid-related expense long before college, and it's a cost that very few of them are as prepared for: day care.

    April 10, 2014 1 Photo

  • VIDEO: CBS taps Colbert as Letterman’s Late Show successor

    Bloomberg’s Jon Erlichman reports that CBS has announced Stephen Colbert as its choice to replace the retiring David Letterman as host of “The Late Show” on Bloomberg Television’s “Lunch Money.”

     

    April 10, 2014

  • Screen Shot 2014-04-10 at 10.25.07 AM.png VIDEO: Cement truck crashes into minivan

    A professor at Texas A&M University was fortunate to escape serious injury recently when a cement truck ran a red light at a College Station intersection and crashed head-on into his minivan. A dash camera that Dr. Guan Zhu had installed about a year ago captured the entire incident.

    April 10, 2014 1 Photo

  • 2012_Mazda6_--_NHTSA.jpg Brakes, steering and...spiders? What's behind the latest auto recalls

    11 million vehicles have already been recalled in 2014 for everything from power steering failure to vulnerability to spider attack.

    Check out the full list of 2014 recalls.

    April 9, 2014 1 Photo

  • Screen Shot 2014-04-09 at 5.06.43 PM.png Spartans mourn passing of 'Princess Lacey'

    Lacey Holsworth, the 8-year-old cancer patient from Michigan who befriended Michigan State forward Adreian Payne and established a bond with his teammates before and during the Spartans’ run to the Elite Eight, died at her home late Tuesday night, her family said.

    April 9, 2014 1 Photo

  • Screen Shot 2014-04-09 at 4.02.29 PM.png VIDEO: Nebraska prom mishap goes viral

    A group of 22 high school students from Pierce, Neb., all decked out in prom finery, took an unplanned dip in a four-foot-deep pond when the bridge they were posing on for pictures gave way. Photos from the incident have gone viral on social media.

    April 9, 2014 1 Photo

  • Is a paleo vegetarian diet possible?

    Research shows most people can follow a regimented eating plan for a short time. That's not the challenge. The challenge is finding a healthful eating plan you can follow day after day and achieve your long-term health goals. At this point, it doesn't appear that the paleo eating plan meets these objectives for most people.

    April 9, 2014

  • 10 tips for surviving a severe allergy season

    My colleague Brady Dennis reported recently that the arrival of warmer weather will soon unleash a pollen tsunami in parts of the country where the winter has been especially long and cold. Here are some survival tips from Clifford W. Bassett, an allergy specialist and assistant clinical professor of medicine at the New York University School of Medicine.

    April 9, 2014

  • 140407_GT_OUT_Forster_1.jpg Revolutionary War flag could fetch millions at auction

    An iconic piece of history from the Revolutionary War is up for auction through Doyle New York, an auction and appraising company in New York City.

    April 9, 2014 1 Photo

Latest News
TribStar.com Poll
AP Video
Raw: Fatal Ferry Boat Accident Raw: Ferry Sinks Off South Korean Coast Raw: Kan. Shooting Suspect Faces Judge Ukraine: Military Recaptures Eastern Airport Today in History for April 16th Tributes Mark Boston Bombing Anniversary Raw: Storm Topples RVs Near Miss. Gulf Coast NASA Showcases Lunar Eclipse Pistorius Cries During Final Cross-Examination Raw: Horse Jumping Inspires 'Bunny Hop' Are School Dress Codes Too Strict? India's Transgenders Celebrate Historic Ruling At Boston Marathon, a Chance to Finally Finish Suspicious Bags Found Near Marathon Finish Line Freeze Leaves Florida Panhandle With Dead Trees Town, Victims Remember Texas Blast Michael Phelps Set to Come Out of Retirement US Supports Ukraine's Efforts to Calm Tensions First Women Move to Army Platoon Artillery Jobs Suspect in Kansas Shootings Faces Murder Charges
NDN Video
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
  • -

     

    March 12, 2010

activity