In a still-ongoing conference call hosted by Electronic Arts, key executives at the publisher spoke on the company's successes and shortcomings in its third fiscal quarter, for which it just released financial results.

Impressively, according to EA, EA Black Box's newcomer franchise Skate (PS3, X360) bested established competitor Tony Hawk's Proving Ground (PS2, PS3, X360, Wii, NDS) by a considerable margin. "Despite the fact we launched on three fewer platforms," CFO Warren Jensen pointed out, "Skate outsold Tony Hawk 2 to 1."

EA Partners, the company's division for distribution of games from independent developers, posted strong results earlier today. In the conference call, CEO John Riccitiello singled out several EA Partners titles as contributing factors. "Rock Band, Orange Box, and Crysis all exceeded expectations," he said.

Riccitiello pointed to Europe as a strong territory for the company, although he was sure to note the company's leading position across the board. "We close calendar 2007 as the #1 pub across all platforms, with an 18% share in North America ... Read more

Publisher Electronic Arts posted a net loss of $33 million over its third quarter ending December 31, according to the company's most recent financial results released today.

The loss--in part due to higher costs in production, marketing, and R&D costs--comes alongside record sales numbers, with revenues of some $1.503 billion, which it claims as the largest one-quarter take of any third party publisher in history.

The achievement is attributed to strong sales of Need for Speed Pro Street, FIFA 08, The Simpons Game, Madden NFL 08, and others.

Rock Band sales were also listed, with the $160+ Harmonix-developed rhythm-game bundle selling 1.5 million units between its November 20 release and the end of December.

The game drove record performance of EA Partners, the publisher's division that handles games by independent developers. EA Partners also released Crytek's Crysis (PC), Flagship Studios' Hellgate: London (PC), and Valve's The Orange Box (PC, PS3, X360).

EA will release further information in a conference call to be held at 2:00pm PST.

UK-based Kuju Entertainment has opened Kuju America, a new branch of the studio focused on the casual gaming market.

Based in San Francisco, CA, Kuju America will serve as the company's reach into the growing casual games sector, and is "currently working on a high profile IP due to be announced soon," according to the company's website.

Kuju America marks the third new division established by the company in less than six months. Kuju opened its kid-centric studio NiK NaK last month. In November of last year, Kuju also formed doublesix, which focuses on digitally-distributed games.

Kuju Entertainment operates six studios in all in the UK, responsible for titles such as Dark Messiah of Might & Magic (PC), Battalion Wars (GCN) and its Wii followup, and spatial puzzler Crush (PSP), which was developed by Brighton-based Zoë Mode. Crush took top honors as Shacknews' 2007 PSP game of the year.

Many of the chief ingredients of gamer dietary supplement FpsBrain can be found in a balanced diet, according to dietitian Danielle Marzano, prompting some to question the pill's overall utility.

Marzano said that the amino acids essential to FpsBrain's weighty list of ingredients should already be a part of one's daily routine. "Foods of animal origin are the richest dietary sources of the essential amino acids," she told MTV Multiplayer. "Therefore, these ingredients would be included in proper amounts in a well-balanced diet, where supplementation would not be necessary."

Developed by German-based computer hardware company Tomarni in cooperation with Free University Berlin, the supplement is marketed as a means of increasing reaction speeds and improving concentration, much like an energy drink.

Tomarni CEO Thomas Straßburg claimed that FpsBrain is fundamentally different than energy drinks currently on the market. "The difference is that we optimized our product not for an effect on your alertness," he said. "We optimized it to let you be more focused and concentrated and let you react faster. FpsBrain is not only good for gaming. It is also good for every [type of] work where you have to concentrate."

FpsBrain is currently only available in Germany. Straßburg said that the company is currently "in talks" with the Food and Drug Administration to release the product in the United States.

Crytek will be demonstrating a cross-platform version of CryENGINE 2, the technology that powered Crysis (PC), at this year's Game Developers Conference.

The presentation, which will only be open to what Crytek refers to as a "select audience," will showcase the engine running on PlayStation 3 and Xbox 360. Such a move may suggest that the console editions of Crysis, which were discussed in hypothetical terms late last year, are proceeding.

"You cannot get Crysis as it is on PC on any console," Crytek CEO Cevat Yerli said at the time. "What you would have to do is compromise the design and the level design--in order of the PS3 and Xbox 360 regards you have to fulfill the memory constraints."

Other GDC demonstrations from Crytek include a look at the architectural and serious game applications of CryENGINE 2, a showing of CryENGINE 2 performing in "extremely high quality" on a machine that was built for around $600, and a session hosted by key Crytek employees entitled "Crysis in the Making."

Futuremark, the company best known for the 3DMark series of benchmark tools and tech demos, has revealed its intent to pursue full-fledged game development.

The work will occur within the newly-formed Futuremark Game Studios group, which has already begun started on its first title, an untitled PC game. The company noted that its games will feature the "latest technologies," but vows they will be able to run on "modest platforms."

Founded in 1997, the company now known as Futuremark was created by Max Payne developer Remedy Entertainment. While Remedy has continued to develop and release titles in the time since, with the upcoming Alan Wake (PC, X360) being its latest project, Futuremark has only focused on its benchmark tools.

"Futuremark Games Studio is committed to developing original IP games with the highest quality game play combined with our established track record of creating blow-your-socks-off visuals," said Futuremark CEO Tero Sarkkinen. "For years, our fans have been asking us when will we start making games. Very soon they are going to get it--and then some!"

Infuriated gamers anxious for monetary compensation for the sexual deviancy unearthed by hacker trickery in Rockstar North's Grand Theft Auto: San Andreas (PC, PS2, Xbox) can now file their settlement claim online.

GTA publisher Take-Two's settlement of the class-action lawsuit brought against them allows customers who purchased copies of GTA:SA manufactured before June 20, 2005—otherwise known as the "Hot Coffee" version—to have their discs replaced with the revised edition of the game or supply proof of purchase for a partial cash refund.

Customers looking to submit a claim must swear under penalty of perjury that they were "offended and upset by the ability of consumers to use third party software and/or hardware to modify and alter the Grand Theft Auto: San Andreas First Edition Disc to display the Hot Coffee content," according to the settlement's notice package PDF.

The Parent Television Council has denounced the ESA's movement towards political action and promised to expose politicians who accept contributions from the gaming industry.

“Let me be clear of our intentions: Any public servant who cashes a check from the video game industry will be exposed by the PTC as taking a stand against families," said PTC president Tim Winter (pictured left) in a statement issued by the organization. "His or her actions will be communicated to constituents in his or her congressional district."

The statement suggests that the ESA's political efforts are meant to counter recent efforts to make the industry more accountable for game ratings by buying votes in Congress.

"The video game industry continues to fight meaningful accountability for selling inappropriate material to children. The industry has been exposed repeatedly for its reprehensible behavior and now they are looking for ways to buy friends in the government."

An NPD analyst says that the $60 million drop in PC software retail revenue from 2006 to 2007 reflects the industry's movement towards digital distribution, GameDaily reports.

Analyst Anita Fraisure notes that the data, which currently does not account for digital downloads or subscriptions, is no cause for concern.

"As we've seen from a number of our studies, the PC continues to be a top platform in terms of total game playing time," said Fraisure. "I don't think this slight decline in retail sales is anything more than a reflection of a shifting of distribution channels."

The latest numbers reveal that PC sales accounted for only 14% of total revenue for game software sales in 2007. But without a comprehensive perspective of online activity, Fraisure says, the implications of the gap remain unclear.

"Video games software sales, and even just the console portion of that figure have been greater than PC retail sales every year that we've tracked. Yes, the (console and portable) video games retail sales have really exploded, but again, until we can get a measurement of dollars spent online, we won't have the true picture."

Shacknews has learned that multiple Unreal Engine 3 licensees have been served with subpoenas in an effort to obtain their confidential engine contracts for use as evidence in Silicon Knights' coming court battle with Epic Games.

The two companies became embroiled in a legal feud after Silicon Knights filed suit against Epic last July. As part of its lawsuit--the allegations of which include Fraud, Negligent Misrepresentation, and Breach of Contract--Silicon Knights demanded all profits from the Epic-developed blockbuster shooter Gears of War in the form of awarded damages.

The subpoenas mark the first time that developers other than Epic have been entangled in the dispute. Companies that have licensed Epic's Unreal Engine 3, and are potentially now involved in the suit, include Electronic Arts, 2K Games, Ubisoft, and the United States Army, among many others.

"I'm leaving the litigation to the lawyers but, if this is the case, I'd like to apologize to any of our licensees who Silicon Knights have inconvenienced," remarked Epic VP Rein when contacted today by Shacknews. "We know that, like us, they just... Read more

Shacknews has confirmed that PR firm Kohnke Communication's lawsuit against former Star Trek Online developer Perpetual Entertainment has been dropped following a mutual resolution.

"The latest development is that the parties have resolved their dispute," a source told Shacknews. "The dismissal of the case was filed with the Court this afternoon."

A representative of Kohnke confirmed the suit's dismissal this afternoon. "The parties have reached an agreement, but we can't detail any further than that," Kohnke told Shacknews. "Part of the agreement was that we would not detail."

Earlier today, Perpetual issued a response to the lawsuit, remarking that Kohnke's claims were "vague, uncertain, ambiguous and unintelligible." Filed in December, Kohnke's lawsuit alleges that the firm is owed nearly $300,000 for its work promoting Gods & Heroes: Rome Rising (PC), which was cancelled last November.

Shacknews has contacted all involved parties and will update as soon as more information is available.

THQ's updated 2008 fiscal outlook revealed today that the PS3 version of Kaos Studios' Frontlines: Fuel of War (PC, X360) has been cancelled, and that the publisher will no longer develop its Juiced and Stuntman franchises.

Rumors of the PS3 version's cancellation were dismissed by a THQ representative earlier this week, but are now confirmed by this latest financial update. The PS2 version of Locomotive Games' Destroy All Humans: Big Willy Unleashed (PSP, Wii) was also cancelled.

The report notes that Paradigm Entertainment's Stuntman: Ignition was among the company's underperforming titles in 2007, which also included Heavy Iron Studios' Ratatouille and Nihilistic Software's Conan. No further reason was given for the cancellations.

Yuke's WWE SmackDown vs. Raw 2008 and Rainbow Studios' ATV vs. MX: Untamed, meanwhile, performed above expectations. In all, the company expects ... Read more

A GameStop in Bellingham, WA—home to yours truly—was robbed at knifepoint on Monday night ten minutes after the store closed, the Bellingham Herald reports.

Employees of the store told authorities that a tall, skinny man of around 20 years of age browsed the store for some 45 minutes before approaching the register with a stack of games. As his purchases were rung up, the man started towards the door muttering to himself before returning to the register and pulling out a small knife.

The employees gave cash to the man who soon after bolted out of the store and sprinted away. This particular GameStop—the only non-mall location in the Bellingham area—resides in the well-lit, heavily trafficked Sunset Square shopping plaza. The plaza is home to over a dozen stores, including a popular movie theater.

In recent years GameStop has offered cash for systems and games; that coupled with a solid day of sales amounts to a lot of cash in the register. As game stores become more lucrative operations, they become increasingly more attractive targets for armed robbery.

Publisher Ubisoft has confirmed that more titles in the Prince of Persia series are on the way along with a new Shaun White snowboarding game, though further details are slim.

In a financial statement released today, the company made a brief mention of the franchises, noting that both are expected to arrive within the next fiscal year, among others. Ubisoft's 2008 fiscal year begins April 1, 2008 and ends March 31, 2009.

The company also announced that its third-quarter sales surpassed its heightened expectations for that period, attributing the boost to the strong performance of Assassin's Creed (PS3, X360), Imagine: Babyz (NDS), Imagine: Animal Doctor (NDS), and other casual titles.

Using an exchange rate of 1.39069 USD to 1 EUR, the company reported sales of $625.81 million in the period between September 30, 2007 and... Read more

Educational software company Tabula Digita announced today that three concurrent sessions at this week's Florida Educational Technology Conference will be dedicated to the use of games as educational tools. The conference kicks off in Orlando, Florida today and runs through the 25th.

"While it's an interesting contradiction that fun and exciting games are being discussed in an esteemed academic forum, it nonetheless proves that educational gaming is a serious tool for helping today’s technology-savvy students," said Tabula Digita co-founder Ntiedo Etuk.

Etuk will speak on "Leading Digital Immigrants to Teach Math to the Video Game Generation" on January 25, which explores the gaming medium and demonstrates how it can help teachers reach students and engage them in mathematics.

Another session, entitled "Using Educational Games to Develop Student's Content Knowledge", will highlight instructional strategies associated with gaming. "Why Game Development Matters" focuses on the educational benefits of prompting students to develop their own video games.

A new feature on MSNBC details the lives of several parents who—in an uncharacteristic display of common sense—actually play games with their children.

A recent poll of parents with gaming children conducted by AOL and the Associated Press show only four in ten play games with their kids. Those featured in the article see games as a worthwhile means of bonding with and educating their children.

"Being a single mother to a son can offer many gaps," says Tammy McCoy, a single mother who games with her 17-year-old son. "Gaming became a way to bridge the gaps—which is what helped to make our bond even stronger."

One parent notes that even prohibiting violent games can lead to a positive outcome. Brian Albright turned a denial of his son's hopes to play Infinity Ward's Call of Duty 4: Modern Warfare (PC, PS3, X360) into a discussion of the realities of war and the politics and policies surrounding it.

"I think that what he's doing is basically the essence of parenting, which is to say, find a way to have teachable moments. You could have the same sorts of discussions about music lyrics, and you could have the same sorts of discussions about Jamie-Lynn Spears, or drinking on Friday Night Lights," said pediatrician Don Shifrin.

New numbers released by the NPD Group reveal that the Xbox 360 version of Infinity Ward's intense shooter Call of Duty 4: Modern Warfare edged out the competition this holiday season, barely beating Nintendo's Super Mario Galaxy to become the top selling game in December.

For those interested in how the gift-giving spirit factored into this year's record sales for the industry, the top ten console games for December 2007 follow, in order of units sold:

1. Call of Duty 4: Modern Warfare (Infinity Ward, Activision, X360) - 1.47 million
2. Super Mario Galaxy (Nintendo EAD Tokyo, Nintendo, Wii) - 1.40 million
3. Guitar Hero III: Legends of Rock (Neversoft, Activision, PS2) - 1.25 million
4. Wii Play with Remote (Nintendo, Wii) - 1.08 million
5. Assassin's Creed (Ubisoft Montreal, Ubisoft, X360) - 893,000
6. Halo 3 (Bungie, Microsoft Game Studios, X360) - 742,700
7. Brain Age 2: More Training in Minutes a Day (Nintendo, NDS) - 659,500
8. Madden NFL 08 (EA Sports, Electronic Arts, PS2) - 655,200
9. Guitar Hero III: Legends of Rock (Neversoft, Activision, X360) - 624,600
10. Mario & Sonic at the Olympic Games (Sega Japan, Sega, Wii) - 613,000

Riding a wave of strong software releases and still-fresh hardware offerings, the North American console video game market grew a massive 43 percent in 2007, according to new numbers released today by the NPD Group.

Overall industry sales totaled a record $17.94 billion--compared to 2006's take of $12.53 billion--with software making up $8.64 billion of the pie. The highest-selling games list, which doesn't factor PC software sales into the mix, was unsurprisingly lead by Bungie's Halo 3, followed up by Nintendo's remote-including Wii Play.

The top ten software titles follow, listed in order of units sold:

1. Halo 3 (Bungie, Microsoft Game Studios, X360) - 4.82 million
2. Wii Play with Wii Remote (Nintendo, Wii) - 4.12 million
3. Call of Duty 4: Modern Warfare (Infinity Ward, Activision, X360) - 3.04 million
4. Guitar Hero III: Legends of Rock (Neversoft, Activision, PS2) - 2.72 million
5. Super Mario Galaxy (Nintendo EAD Tokyo, Nintendo, Wii) - 2.52 million
6. Pokemon Diamond Version (Game Freak, Nintendo, NDS) - 2.48 million
7. Madden NFL 08 (EA Sports, Electronic Arts, PS2) - 1.90 million
8. Guitar Hero II (Harmonix, Activision, PS2) - 1.89 million
9. Assassin's Creed (Ubisoft Montreal, Ubisoft, X360) - 1.87 million
10. Mario Party 8 (Hudson Soft, Wii) - 1.82 million

Consoles hardware sales topped out at $5.12 billion, with Nintendo again leading the competition. The yearly numbers are as follows, with life-to-date totals... Read more

The Chinese government is planning to issue new rules for game developers meant to weed out "undesirable" elements of online gaming, Reuters reports. The crackdown is directed as a response to the booming Chinese online gaming industry and growing fears of internet addiction.

"Although China's online gaming industry had been hot in recent years, online games are regarded by many as a sort of spiritual opium and the whole industry is marginalized by mainstream society," said Kou Xiaowei, a senior official of the Chinese government.

Prior to this latest attempt to regulate the industry, the Chinese government had also banned children from internet cafes and established time restrictions for players. Readily available pirated software and an absence of a proper rating system, however, have undermined China's previous efforts to control the online gaming market.

Officials blame internet obsession for the majority of youth crimes in China. The issue was also addressed by educational psychologist Jane Healy, who recently suggested that parents prohibit their children from playing games until the age of seven to avoid stunting healthy brain development.

There's an article format interview with Chris Chung on MMORPG.com, asking the new NCSoft president about his company's various MMO products.