chili325
07-24-2002, 05:04 PM
Sorry if this has been posted.
3DO says to reverse course, publish Xbox games
REDWOOD CITY, Calif., July 24 (Reuters) - In a reversal of its prior stance, video game publisher 3DO Co. <THDO.O> on Wednesday said it would begin to publish games for Microsoft Corp.'s <MSFT.O> Xbox video game console.
Redwood City, California-based 3DO, which is seeking shareholder approval for a 1-for-8 reverse stock split to avoid being delisted from Nasdaq, said it would bring both established brands and new titles to the console.
"Microsoft has proven their commitment to making Xbox an outstanding gaming system," 3DO founder and Chief Executive Trip Hawkins said in a statement.
The two sides did not disclose the terms of their publishing agreement, including any details on the number of games to be produced.
3DO's spokeswoman was out of the office and not available for comment.
Hawkins, an industry legend who before 3DO founded Electronic Arts Inc. <ERTS.O>, the No. 1 independent publisher in the industry, had in the past said the Xbox was not a good opportunity for publishers.
"The Xbox is a challenging opportunity for game publishers to make a profit from it," Hawkins told Reuters last November. In October of last year, he told Reuters the company would focus on producing games for consoles other than the Xbox as it worked to return to profitability.
3DO shares were up 22 percent at 39 cents in afternoon trade on Nasdaq after the announcement. Over the last year, the shares have traded as high as $5.20 and as low as 30 cents.
The reverse split proposal is set to be considered at 3DO's annual meeting on Aug. 20, following Nasdaq's move in late June to begin delisting the stock for being below the $1 minimum trading price.
Earlier this month, the company said it had secured a new $15 million credit line, which includes a requirement that the company raise $4.6 million in additional financing by Oct. 1. 3DO has said Hawkins will provide that capital himself if necessary.
07/24/02 14:02 ET
3DO says to reverse course, publish Xbox games
REDWOOD CITY, Calif., July 24 (Reuters) - In a reversal of its prior stance, video game publisher 3DO Co. <THDO.O> on Wednesday said it would begin to publish games for Microsoft Corp.'s <MSFT.O> Xbox video game console.
Redwood City, California-based 3DO, which is seeking shareholder approval for a 1-for-8 reverse stock split to avoid being delisted from Nasdaq, said it would bring both established brands and new titles to the console.
"Microsoft has proven their commitment to making Xbox an outstanding gaming system," 3DO founder and Chief Executive Trip Hawkins said in a statement.
The two sides did not disclose the terms of their publishing agreement, including any details on the number of games to be produced.
3DO's spokeswoman was out of the office and not available for comment.
Hawkins, an industry legend who before 3DO founded Electronic Arts Inc. <ERTS.O>, the No. 1 independent publisher in the industry, had in the past said the Xbox was not a good opportunity for publishers.
"The Xbox is a challenging opportunity for game publishers to make a profit from it," Hawkins told Reuters last November. In October of last year, he told Reuters the company would focus on producing games for consoles other than the Xbox as it worked to return to profitability.
3DO shares were up 22 percent at 39 cents in afternoon trade on Nasdaq after the announcement. Over the last year, the shares have traded as high as $5.20 and as low as 30 cents.
The reverse split proposal is set to be considered at 3DO's annual meeting on Aug. 20, following Nasdaq's move in late June to begin delisting the stock for being below the $1 minimum trading price.
Earlier this month, the company said it had secured a new $15 million credit line, which includes a requirement that the company raise $4.6 million in additional financing by Oct. 1. 3DO has said Hawkins will provide that capital himself if necessary.
07/24/02 14:02 ET