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Bankruptcies are rarely a lender’s friend. They’re a worst case scenario that often means a best outcome of pennies returned on the dollars of investment.  Midway Games ongoing bankruptcy process has been a demonstration in point.  Triggered by debt covenants and a sketchy transaction, the proceedings have been riddled with confrontational debate.   The rancor’s even spilled over into a counter suit.

Monday, creditors filed suit against the company’s board members, former majority owner, Sumner Redstone, and the buyer of Redstone’s shares, Mark Thomas. The creditors are charging Redstone with fraudulent transfer, and accusing him and others of breaching their fiduciary duties.

Everything stems from Redstone’s firesale giveaway of his Midway holdings in November.  Parting with 87% of the company for merely $100k gave Redstone and his affiliated holdings more than $700m in tax losses which created a massive tax write off.  That write off, Redstone’s gain, creditors argue, helped shore up the finances at Redstone’s National Amusements but put Midway into a tailspin.  

“The transaction caused Midway irretrievably to lose the ability to take advantage of its valuable accumulated net operating losses and other tax assets,” creditors say.

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One of the benefits of Amazon’s Kindle reader is portable access to content. There’s a deep library of books and an increasing pool of subscription content.  One of the detriments singled out by some camps is the Kindle’s closed environment.  Readers looking for blog content, for example, could only select from a predetermined list of high profile publications.  You might find Tech Crunch or the Huffington Post but you wouldn’t necessarily find a smaller site like Metue and probably would have no chance tuning in to the soapbox of your favorite personal pundit.  Amazon chose the stations, not you.  Now that’s changing.

Today, Amazon began allowing any blogger to publish to the Kindle platform.  Through a separate account set up as a Kindle Publishing for Blogs beta, authors can load their blog, identify and describe it and leave it to Amazon to convert from its RSS feed to a Kindle friendly form factor.

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You don’t have to look far to see the overlap between Hollywood and the video game industry.  Game companies have bought movie effects shops and traditional movie studios have expanded into game development.  Tomb Raider and Resident Evil started as games and had box office (and DVD) success.  Star Wars and other series started in theaters and found added success in  gaming.    Famed directors from Spielberg and Peter Jackson to up and comers like Zack Snyder have signed game development deals.  Game studios even have Hollywood agents.  These days, whether it’s animated, family friendly, action driven or effects laden – chances are there is crossover or could be.

It’s not exactly a mouth opening surprise.  All the synergy, marketing efficiency and business buzzwords aside there is much common ground. Both mediums share a foundation in their methods of visual story telling.   Both share costly and long development processes.  Both market (often) to similar audiences. Both need blockbusters to offset the lost causes of bombs. In a way, interactive video games are the choose your own adventure equivalent of Hollywood’s visual story telling tradition.

But just in case all the references and obvious points of confluence aren’t enough evidence of the increasing convergence between the two, add Jerry Bruckheimer to the list. The mega producer whose credits include films from Top Gun, to Beverly Hills Cop, and Black Hawk Down or Pirates of the Caribbean announced a partnership with MTV Games in December of 2007.  And now after 18 months of silence, that gaming adventure is officially moving ahead.

Jerry Bruckheimer Games announced Tuesday that it hired two industry veterans to lead its organization and chaperon the company’s entry into the marketplace. 

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Last week, Activision Blizzard confirmed several rumors about its planned slate of music-based video games including verification that the next single-band installation of Guitar Hero would revolve around the 80’s superstar rockers, Van Halen. (The band had more Billboard Hot 100 hits than any other rock band in the decade).  Not to be outdone, today rival MTV Games, maker of Rock Band, countered back with news that they’re working on a game built around a band that helped to define the 90’s music scene: Pearl Jam.

Details about the game are scarce.  At this point its even a guess whether the Pearl Jam title will be a full fledged game, or simply a “track pack expansion” for the Rock Band series. All that’s been revealed is the game is scheduled for sometime in 2010.   That, and that fans will have some input on the game’s development. Through a promotion with Rhapsody, the band is asking fans to vote on songs for inclusion at their website.  More details on Rock Band: Pearl Jam are expected to come out at E3, the gaming industry’s big trade show, next month.

Whatever the game turns out to be, one thing to watch: how the marketplace responds to the new titles.  Click to Read More

The settlement of a long standing lawsuit over Google’s practices of scanning and displaying books at Google Book Search was announced in October and expected to be finalized between May and June.  Two weeks ago, in late April,  the judge overseeing the case extended the dates until September and October to allow concerned parties more time to digest the complex agreement.  Chief among those looking for more time was authors but reports also suggested the Department of Justice was taking a look too.

Now it appears that the Attorney General’s of several states are also interested in taking a gander.  According to a Reuters report published Friday, the AG’s held a one hour conference call earlier this week to discuss the settlement.

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Guitar Hero has been a goldmine for Activision Blizzard.  The popular music game franchise has generated more than $2b in sales and pushed out 34 million song downloads.   Looking to build on the brand’s strength while expanding the franchise’s demographic reach, the company has confirmed a number of details about future installments.

First, three titles will debut this fall.  Guitar Hero 5 will expand on the prior offerings with a classic rock base and music choices aimed at the game’s core audience. 

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For a while before the economy turned south, digital film production specifically tailored for internet distribution was all the rage.  Turn back the clock a year or a year and half ago and Deca, 60 Frames, Next New Networks, and a handful of others all clamored for position in what they hoped would become a solid market.   Even Microsoft was in the act with its own Digital Upfront.   But things are different now: with ad markets weak and competition for consumer attention also large (Hulu, YouTube, Network TV etc), the revenue stream many of these startups counted on has yet to find a solid foundation.

60  Frames, which was started in 2007 with $3.5m in outside funding and incubated with the support of talent agency UTA and ad agency Spot Runner, appears to be a casualty.

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