IWedia: \\ nter::. s t n "r nta) m ea!, nrun::., non unwn sen pi:>, Pagt> 40. Currencies: Bntrsh pound surges as Bank of England chane-es t.tr k. 60. OTC Focus: Technology issues sustain the market"s upward swmg. 54. ~AL. Campaign '88: TV's use of part1san consultants raises questions, 74. I _ ___,I Video Games Revive and Makers 1- e~ Pach year ~centages of Hope This Timethe Fad Will Last I Once -135'\, By .h FFHE) A. TAN!'-iEI"HAll;\1 rated, " says Norman Rieken. president of JTwiee Top-Selling Video Games Rochelle Park, N.J.·based Toys '"R" Us 116'\, Home video games-a spectacular but Based on sales during the last week of Inc .. U1e largest U.S. specialty-toy retailer. "SO 1988 '1\iJJ be another big year.'" I Three or morE> short-lived fad of the early 1980s-are mak· February at a nationwide chain selling l 23% ing a comeback all mpjor brands Meanwhile. despite increases in factory After going bust just six years ago, capacity, production hasn't kept up with J Never Mike 'l)Jon'a Punch-Out!! (Nintendo Co.) demand for some of the hardware used 1 13~ video-game sales are agam soaring, thanks to smarter marketmg. improved techn(ll· The Lecend of Zelda (Nintendo) with the games, such as the limited-use computers that display the games on a -l No responSl' ogy and the coming of age of a new gener· IUrnov (Data Eaat USA lne.) 113% ation of players. And this time around. the player's TV set. SOme of the video games industry is taking steps to make sure that Super Mario Brothel'l (Nintendo) themsE'Ives, which generally sell for $20 to the boom lasts a bit longer. Double Dribble (Konami Inc.) $60 each, are in short supply at some stores because of distribution and produc· Sales began to revive in 1986, climbing Goonies II (Konami) to $430 million from $100 million a year tion problems. earlier. And last year. they more than dou Castlevania (Konami) Avoi ding P ast MistakE's bled to $1.1 billion. Industry leader Nm· Wizards & Warriors (Acdaim On top of the strong sales. the industry tendo of America Inc., the U.S. unit of Nin Entertainment Inc.) IS trying to avoid some of the mistakes It tendo Co. of Japan, estimates that the Winter Games (Acclaim) made in the early 1980s. In the pre\ious field's tot al U.S. sales in 1988 Wlll reach boom. game titles proliferated so fast that $1.9 bil!Jon . Rusb'N Attack (Konami) the market became glutted. And many cus· The home video-game market "has tomers were disappointed by a rash of low· gone from being dead to being extremely Even if the revival 1sn't as big as the quality and look·aJike products. Even de· lively and growmg, .. says Don Reisinger, previous boom, though, it's likely to be voted players finally grew bored as the marketing vice president of Sega of Amer· more endunng. retailers say. "This time, latest games stopped offering anything ica Inc .. a U.S. subsidiary of Tokyo-based there will be a more permanent. lasting new. Sega Enterprises Ltd. market for electronic games." says Peter Nowadays, marketers are working to Harris, president of FAO Schwarz, a toy· Lust for Zapping prevent a glut by pulling older lines off the store chain based in New York. "Today·s shelf as more games are mtroduced. Nin· , l;"\ OLFI Still, many retailers doubt that the in· games have higher quality ... tendo. for instance. is withdrawing 18 of its STilEET J O lii\NAI dustry Wlll see a replay of its previous Home video games were among the top 36 games to make room for new offerings •ght his first mu· boom. when the technology was new to sellers at toy stores during last year'1 Nintendo dominates the U.S. market wnh most Americans. At the industry's peak in ~o . he did it for Christmas rush and have continued to be an estimated 707c share, followed by Atari lawyer, Mr. Sa· 1982, Americans shelled out $:1 billion to in· best sellers in the stores' post·holiday dol· Corp., with 16'ir. and Sega with 10c:•. fund s' profes· dulge their lust for zapping Space In· drums. For instance, Mike Tyson's Punch· Improvements in technology also have iversificatwn. vaders. competing m a variety of elec· Out! ~ . a boxing game introduced last Octo­ helped the re\ivaJ, making the games I tronic sports, and otherwise enjoying the ber by Nmtendo. aJready has sold more unforeseen tax "more lifelike, more vivid and more de· \ Mr. Saveth has games' space-age sounds and colorful than a million copies, making it one of the tailed," says Mr. Reisinger of Sega. wing his money graphics. But by 1985 the boom was over, biggest-selling video games. The latest video-game hardware in· _, and rethinking and sales had withered to $100 million. "By no means is the market satu· eludes computer chips that provide better I;'I' .l funds. picture resolution, more colors and more 1aking life sim· "sprites," as the independently moving ob­ get hit with tax jects on the screen are known. For in· n almost more stance. the Mike Tyson ~arne has 256,000 says Mr. Sa· Parents Fear Games Turn bytes of computer memory, compared with .t's worth it." 8,000 in Pac Man, the video-game hit of · investors are yPSteryear. have their own Their Kids Into Zombies The new technology has made the .;.rds are unpre· games more challenging, too. ln Super Ma· il By CARRIE DoLAN '1butions and a though. Most of the games cost between no Brothers, for instance. players can Slaff Reporrer ofT•w WALL STR>:ET JounNA L S20 and S60 apiece. David Ross owns 41 ~ he extent and spend months trying to rescue the prin· •1 advisers say Rachel Lamanet is concerned about her games, vaJued at more than S1,000, which cess, the object of the game. And many of Jus load some· son's habit. he keeps in a double-padlocked drawer. the games can be played at dozens of "He told me. 'It's like I want to stop. Working as a grocery-store bag boy to sup­ levels of difficulty. That's a far cry from ~ that mutual· port his hobby. he buys a new game every .t hard lately. but I can't help myself. • I thought, "Oh no. the late 1970s gan1e Pong. in which players is this my 11-year-old?' He's like an addict two weeks. Trevor Moser, a 14·year·old merely batted an electronic pmgpong ball player in Kent. Wash .. says he has bought It's awful. He needs me to help hun control back and forth on the screen. it. .. about STOO worth of games in the past year. rket for stock A New Generation ~n "t a big con· Her son. Christian La.manet. IS a home mamly with tus paper-route earnings . a New York video-game player . Derek JohnstonE', 11, of Cemtos, Calif., No matter the changes in technology. the gains have Currently, the San Mateo, Calif., fifth founded the Electric Rendezvous club, though, much of the industry's audience is ne a major con· grader, Is suspended from playing his which prints Its own newspaper "with too young to remember the earlier games video-gamE' set. made by Nlntendo Co. of s1rategies and tips" for improved playing. anyway. Marketers say most video-game 11 players are between the ages of eight and !! investor scru· Japan. bf>C'ause of "'Nintendo-related" of­ The club's members take an oath prom· , mutual fund!. fenses. hi~ mother says. Christian. who Ising. among other tlllngs. not to ··spill the 14. Some children catch the Vldeo-game m oU1tor Invest· once played at a fnend"s house for about 14 beans on any tricks." and they pool money bug at game arcades. But as the arcades " " dl~tly can hours str.ught. concl'des. ·•J tlllnk 1 should to buy games. have waned m ~?Cent years because of ris· t:ru. Ate' ta.ken. play less. as much as 1 llkP it. 1 tlltnk 1 PlavP""' RI"P 11<:11:11lv lvov" h<>twoon tho ·~,.... ....,..~· - - -~· · · ·~~ -- ,. ..I •' ruott llldl'l\L!IlJ!, .n:l iJ '~ " , c , . ica Inc .. a U.S. subsidiary of Tokyo-based there will be a more permanent. la!>tmg new. MONEY Sega E nterprises L td. market for electronic games, .. says Prtt'r ~un Sun Belt Nowadays, marketrrs are work1ng MAnERS Harris, president of F AO Schwarz. a toy· prevent a glut by pulling older lines off Lust for Zapping store chai n based in New York. ''Today·s Other Moves shelf as more games ar~> i ntroduced. l\ Slill. many retailers doubt that the in· ··.games havl' highPr quality .. By MICIIAF.L S ICONOLFI tendo, for instance, is V. lthdrawmg I~ of dustry will see a replay of its previous Home video games wen• among thr top :ES of retirees bask· Staff Reporter o(TIIE WALL STTu:FT J ouRNAL 36 games to make room for nrw offPrir boom, whl'n the technology was new to Sun Belt r etirement When Henry Saveth bought his first mu· sellers at toy stores during last yrar's Ni ntendo dommatPs the U.S. ma rkrt v. ; are everywhere in tuaHund shares a year ago, he did it for most Amer icans. At the industry's pl'ak in Christmas rush and have continued to be an est1mated 7or;.