GLG News by Cinema Projection System Experts

Jon PeddiePresidentJON PEDDIE RESEARCH

Need an application processor? Call Nvidia in about a year

November 10, 2006

Analysis of:Nvidia to acquire PortalPlayer for $357 million | www.marketwatch.com

Nvidia will now accelerate their entry into the applications processor market for handhelds - may help with potential Apple deal.

Jon PeddiePresidentJON PEDDIE RESEARCH

Sony will be the long term winner

November 1, 2006

Analysis of:Opinion: Why Sony Won't Lose the Next-Gen War | biz.gamedaily.com

Microsoft will rule 2006, Sony will bring them to a draw in 2007 and in 2008 Sony will ship more than Microsoft and Nintendo combined.

The architecture is killer. That’s the good news and the bad news. The PS3 has longer legs than any of the other consoles and that is mostly what will make Sony win.

keep your eyes on the game titles, and that will tell you who is going to win. The market isn’t a win all or nothing situation. Many consumers in the middle class and above have two game consoles and a PC. The reason consumers purchase all three platforms is because of the games.

Marty ShindlerChief Executive OfficerOculus3D Corporation

Fanning the Flames with a Burning Desire

September 27, 2006

Analysis of:CinemaNow burns Furious with DVD | www.videobusiness.com

The Fast and the Furious: Tokyo Drift has become the first movie to be released day and date on DVD and download to burn. CinemaNow is the only service offering this movie at this time on this basis. Other older titles are available on a download to burn basis, but that service did not start until after the movies were already out on DVD.

Cinema Now is the king of the download to burn industry, in fact for studio feature films, they are the only ones currently providing the service, even though MovieLink is moving in that direction.

The only thing holding MovieLink back at this time is for the studios to make some titles available in the CSS scrambling system that MovieLink has licensed and which is also used currently on packaged DVDs.

CinemaNow indicates that titles available on a download to burn basis outsell the same titles on a download to own basis by five to one.

With Universal’s move to allow this download to burn, it remains to be seen what Fox, Warner Bros. Paramount, Sony and the other major studios and the independents decide to do. They are careful to not irk their major packaged media customers Wal Mart, Target and Best Buy.

But, with everyone rushing to position themselves in the world of online content, this move by CinemaNow will be one to fan the fires.

Marty ShindlerChief Executive OfficerOculus3D Corporation

Tooning in to China

September 20, 2006

Analysis of:China welcomes o'seas pic coin | www.variety.com

As with many other aspects of China’s economy, the country is looking to expand its movie and cartoon/animation production business.

This will be accomplished through investments from foreign entities and through the usual method of seeking work on an outsourced basis.

As testimony to this, the article points out that there are certain restrictions that have been lifted in terms of number of episodes allowed for a TV series, enabling Hong Kong investors to participate more fully in the industry in a variety of ways and in meeting their WTO goals of allowing more imported films to be exhibited in the country.

China is expected to produce 70,000 minutes of animation this year.

Marty ShindlerChief Executive OfficerOculus3D Corporation

The Fat Lady and the Holy Grail

September 15, 2006

Analysis of:The Fat Lady Sings in Dolby | www.latimes.com

New York's Metropolitan Opera will begin to broadcast 6 operas this coming season to a number of movie theaters, taking advantage of the current rollout of digital cinema equipment.

The venture with National Cinemedia will initially be set up for 25 locations, a small percentage of the total number of theaters in the group. National Cinemedia is comprised of the three largest movie exhibition circuits, Regal Entertainment, AMC and Cinemark. These three companies have over one third of the total number of theaters in North America with 14,481 screens in nearly 1,200 sites.

Tickets for the Saturday morning PST time slot will initially cost $18, a reasonable price for an opera or, for that matter, for any high end, high profile live event.

This venture is yet one more indication that the ways that content is generated and distributed is changing rapidly and will continue to change for the foreseeable future.

Marty ShindlerChief Executive OfficerOculus3D Corporation

Akamai, Not the Only Game in Town

September 13, 2006

Analysis of:Content Delivery Network Trends | www.variety.com

Akamai is not the only game in town. There are many companies that are jumping into the burgeoning business of online content such as CBS and their counterparts at the other networks and the major studios.

And there are a whole host of companies that are providing content delivery network services to support the industry. Akamai is but one of them, although it may currently be the best known. Limelight and Vital Stream have their high profile customers, but so do many others involved in this industry.

We are only at the tip of the iceberg in what is becoming a huge industry. We have yet to discover all of the ways that content will be delivered to the waiting customer.

Jon PeddiePresidentJON PEDDIE RESEARCH

Sony’s problems aren’t Blu-Ray manufacturing

September 12, 2006

Analysis of:Blaming Faulty Part, Sony Scales Down World-Wide Launch of PlayStation 3 | online.wsj.com

Consoles are sold on the basis of games – not hardware technology and Sony knows this better than anyone.

Programming the PS3 is very difficult – games may be the delay

There are also problems with yield of the IBM cell processor

Only the Nvidia GPU design is on target and also easy to program.

2008 will be Sony’s year, not 2007

Jon PeddiePresidentJON PEDDIE RESEARCH

Microsoft is taking it to Sony in Japan with games, prices and production

September 12, 2006

Analysis of:MS to Offer Cheaper Core X360 in Japan Before PS3 | biz.gamedaily.com

Microsoft is taking it to Sony in Japan with games, prices and production

Microsoft is presenting a five point program for the Japanese market:

Better prices

More product available

Custom Japanese games

Cross platform games

Xbox Live Community

Jon PeddiePresidentJON PEDDIE RESEARCH

Nintendo marches to a different beat

September 12, 2006

Analysis of: Nintendo Reaffirms 6 Million Wii Shipment Target | biz.gamedaily.com

Nintendo does not follow Sony or Microsoft and has led them in many respects

First to offer full backward compatibility across all its platforms

First to offer, wire-free gesture controllers

First to offer handheld game machines

First to offer games for all sexes and ages

Production on target and there is a strong pent up demand

Jon PeddiePresidentJON PEDDIE RESEARCH

Major move for game industry with targeted ads

September 5, 2006

Analysis of:Coming To Video Games: Live Ads | www.washingtonpost.com

I see a direct correlation between in content advertising for TV (all forms) and that of the game industry.

I believe our estimates could be conservative considering the worldwide market for all advertising is estimated to be over $380 billion annually and growing at 6 to 8% a year.

Approximately $6 billion was spent on US TV advertising to 18-24 year-olds in 2005, and only about $20 million on video game advertising. Total annual online advertising dollars as of 2006 is approximately $17 billion; which makes my $200 million estimate for casual all the more realistic. By the end of 2010 game and game related advertising should be at least $1.2 billion and  growing if advertisers continue to accept the benefits of this relatively new medium. I think someday the value of game advertising and shopping will be in the 10's of billions worldwide but that the tipping point is over five years away.

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