Headline RePLAY – 7.27.12

Today on Headline RePLAY: Law firms are on Zynga’s case, both Valve’s Gabe Newell and Blizzard’s Rob Pardo are not convinced on Windows 8 and GameStop is looking into selling used digital content.


In the wake of news that Zynga insiders cashed out $156 million in stocks four months before it crashed, multiple law firms have announced that they will be investigating claims against the company for violating federal securities laws and breaching fiduciary duty.

The investigating firms include Schubert Jonckheer & Kolbe, Newman Ferrara, Johnson & Weaver, Wohl & Fruchter and Levi & Korsinsky.

According to Kotaku, Schubert Jonckheer & Kolbe is investigating whether Zynga insiders had insider information when their shares were sold in April while Levi & Korsinsky is looking into “concerns that Zynga misinterpreted and/or failed to disclose materially adverse facts about its business and financial condition.”

|Source: Kotaku


PC industry veterans like Valve co-founder Gabe Newell and Blizzard executive vice president of game design Rob Pardo are not so confident with the upcoming Windows 8 operating system, the former even going as far as calling it a “catastrophe.”

“I think Windows 8 is a catastrophe for everyone in the PC space,” Newell told All Things D. “I think we’ll lose some of the top-tier PC/OEMs, who will exit the market. I think margins will be destroyed for a bunch of people. If that’s true, then it will be good to have alternatives to hedge against that eventuality.”

“nice interview with Gabe Newell,” Pardo agreed on Twitter. “I think Windows 8 is a catastrophe for everyone in the PC Space*—not awesome for Blizzard either.”

While no details have been revealed, the criticisms seem to be over the Windows Store in Windows 8, which could restrict companies’ options in selling their software directly. According to CVG, Microsoft will take a 30 percent royalty cut per sale made in this store.   

|Source: CVG, All Things D


Already well-established in the physical used-game market, GameStop is looking into the future on how to sell used pre-owned digital games.

“It’s very interesting,” GameStop CEO Paul Raines told GameSpot. “There are some technologies out there in Europe, and we’ve looked at a couple that are involved. We’re interested; it’s not a meaningful business yet.

“Right now we’re not seeing that as a huge market, but I think we’re on the leading edge. There are a few companies, a few startups, out there that we’ve talked to that are doing this.”

Raines declined to identify which companies are involved with GameStop in this endeavor, citing concerns over competitors “rushing in.”

|Source: GameSpot

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