some old news but some interisting input by one my clan members

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kenny2

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orginally posted by mnbatman

Half-Life 2 held hostage?



Court filings show VU Games has the right to sit on finished Half-Life 2 code for up to six months. Could it be deja vu all over again?
As part of GameSpot's ongoing look into the two-year-old copyright infringement case that pits business partners Valve Inc. and Vivendi Universal Games against each other in US District Court, additional documents uncovered this week reveal an interesting ace up VUG's sleeve.


In court filings dated August 27, 2004, VU Games' senior vice president and deputy general counsel Eric Roeder entered the following statement into the record.

"Valve has announced that it will deliver a release candidate version of Half-Life 2 (HL2) (a game required under the 2001 SPA) to Sierra/VUG within the next few weeks. If Valve delivers a release candidate version that complies with the contract and is a Final Milestone, then VUG will have six months to release the product under the 2001 SPA. Valve is pressing VUG to release the product early within that six month window, and its representatives have made a number of public statements without our consent or concurrence that the product will be published and released to the general public in September of this year."

The statement's implication is that VUG, angry with Valve's "public statements," could sit on Half-Life 2 for up to six months. But would VUG use this six-month window as leverage to force Valve to back down from demands contained in its original August 14, 2002 lawsuit?

Previously, VU Games found itself in the center of a similar conflict. At the end of September 2003, Interplay announced that it was terminating its distribution deal with VU Games, accusing the publisher of nonpayment of $3 million and failing to live up to the terms of its software publishing agreement for the console role-playing games Fallout: Brotherhood of Steel and Baldur's Gate: Dark Alliance II.

Then, in October, Interplay announced Fallout: Brotherhood of Steel had gone gold. Interplay CEO Herve Caen went so far as to state that Interplay would distribute the two games itself, to make sure games were on retailer shelves for the all-important holiday season. "[Retailers] already know the titles are coming out," Caen told the Orange County Register. "Profitability is contingent on the fourth quarter," Caen concluded.

Then, it was reported that VU Games was considering an injunction against Interplay to prevent it from distributing the games itself. While Brotherhood of Steel languished in retail limbo, nary a peep was heard about the status of Dark Alliance II. Then, in November, the two announced they had suddenly resolved their issues. "We are pleased to have come to an understanding with Interplay and look forward to the upcoming launch of Fallout: Brotherhood of Steel," said Philip O'Neil, VUG's then senior vice president of sales and marketing.

However, the "understanding" VU Games' and Interplay reached didn't include Caen's wishes to release Brotherhood of Steel and Dark Alliance II in the fourth quarter. As it turned out, both titles failed to appear on shelves until the following year: Fallout was eventually released on January 14, 2004, with Dark Alliance hitting retail the following week. Sales of Dark Alliance were lackluster, while Brotherhood of Steel was both a critical and commercial disappointment.

Could a similar scenario befall Half-Life 2? "It’s a game of chicken the way I see it," said one industry observer. "VUG could hold HL2 hostage for 6 months (or threaten to) if they want to force Valve to give in to demands. But Valve knows VUG needs the revenue."

According to the two companies' current software publishing agreement, Valve cannot release the game via Steam until the retail version is brought to market by VU Games. That point was confirmed by Valve director of marketing Doug Lombardi who said, "Half-Life 2 will be made available to customers who purchase via Steam at the same time it is made available at retail."

When asked if VUG could be targeting a "late-cycle" release date for Half-Life 2, Lombardi said, "We've been asking, but Vivendi has refused to communicate an expected retail release date for Half-Life 2." Additionally, Lombardi clarified Valve's perspective when it came to the company's desire to get the game into the hands of gamers. "We delivered the first release candidate last week, and hope to deliver the final version very soon," Lombardi said. For its part, VU Games declined GameSpot's requests for comment.

In other developments in the Valve versus VUG lawsuit, the judge hearing the case in District Court pushed the cutoff date for the two sides to present relevant documents (Discovery) from October 8, 2004, to December 31, 2004.
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That was posted on my clan forums, My personal believe is everyone is going to buy it even if its 6 months from now, and futher more I believe vug is going to lose its ass and have to get out of the game publishing with 2 years time because no game maker after all the fff overs by vug is going to hire them to distrubute any games. The point is vug looks upon it self as a power house in reality there just a little micron in space, they have forgot the issue of the game develpers are the customer to them just like we are, and no game developer in there right mind is going to hire vug to publish any games after there outstanding contracts are up because of all of this.

Just remember vug your the one needing customers and valve along with others and us gamers are the customers, make the customer happy=more business and greater profits. make the customer angry= no more business and no profits.
 
I seriously doubt they would delay it past the holiday season. This isn't condition zero, the holiday season will make a difference for Vivendi.
 
Here's the thing everyone forgets... Vivendi is a huge corporation than publishes more than just video games. One title will do almost nothing to them financially no matter how hyped it is.

Vivendi could delay the game until we're all dead for all they care, all they want is money, they don't care about anything else.
 
Yeah, it's VIVENDI-UNIVERSAL. They're not just one entity, they're a conglomerate of sorts. They have the money to pull this off, believe me. A few million less from angry gamers won't even phase them.
 
But it those gamers threatened to affect the rest of the media business? Well, you never know.
 
Rico said:
Here's the thing everyone forgets... Vivendi is a huge corporation than publishes more than just video games. One title will do almost nothing to them financially no matter how hyped it is.

Vivendi could delay the game until we're all dead for all they care, all they want is money, they don't care about anything else.

Thankfuly that can only delay it for 6 months after going gold, then Valve can freely publish it over steam, and Valve can sue them for braking contract.

I don't think Vivendi will sit on it for 6 month. I think they are just mad that valve it trying to push them to release it before they are ready to and so threaten to delay it. Atlest thats my hope.
 
I believe Vivendi knows they can not sit on this game for 6 months without it being leaked/pirated/released via Steam.
 
Look guys, you may think this won't effect VUg but in fact it will. All the Vivendi entities have seperate earnings. So no Vivendi, and Vivendi universal won't die. But it is very well possible that VUg will.
 
naaa

we dont need to worry. vug would send it out early cos... they just will OK?! and they probably will get more money. N E way they shouldnt keep HL2 from US just because other dudes said so,ething nasty. Valve should decide wen their own game is realeased in my oppinion. :bounce: :cat:
 
You do realize that VU:G and VU are not the same just because they have the Vivendi tag? If VU:G keep going into the red and losing the company money then Vivendi are likely to do one of two things, either sell the company on, or liquidate that branch. Vivendi are massive that's correct, but they aren't going to keep plowing money into part of their business that's consistently losing money. It's like cutting off a diseased limb of sorts.
 
Man, for the last time, Vivendi Universal is only the HOLDING COMPANY for Vivendi Universal Games. So YES, VU is a media giant and the release of HL2 won't make a huge impact on them. It is VUG however that controls the release of Half Life 2. VUG has been in financial trouble for awhile now, and Half Life 2 could make or break the company. So sure, while some big wig at VU in France most likely wont be affected, you can bet management at VUG in L.A. are sweating a bit. To a corporation the size of VUG with a release the size of Half Life 2 (a few million copies of this game could easily sell within a year), this is a make-it or break-it business move.

Edit: Vivendi has been looking to sell VUG for awhile now, in fact I think right around the time that Warcraft III was being released there were rumors of a corporate buy that would affect the release.
 
Man they better not delay it or I will kill every VUG worker..
 
mortiz said:
You do realize that VU:G and VU are not the same just because they have the Vivendi tag? If VU:G keep going into the red and losing the company money then Vivendi are likely to do one of two things, either sell the company on, or liquidate that branch. Vivendi are massive that's correct, but they aren't going to keep plowing money into part of their business that's consistently losing money. It's like cutting off a diseased limb of sorts.

Well, I took a look at their financial statements. They use the French version of GAAP which is slightly different than the US version of GAAP. However, some interesting things I found

- In the fiscal year 2003, the entire VU group was under severe financial duress.

- VU games segment only accounts for 571 million euros of revenue out of a total 25 billion euros of revenue in total.

- They are the second largest computer video game publisher in the US. #4 in the UK.

- They don't mention Valve software anywhere in their financial reports. They mention Half-Life in passing. I find this slightly unusual since the Half-Life is a rather large franchise and they should have expected it the release of HL2 in 2004.

- In Vivendi's most recent forward looking financial statements, it appears VU wants VUG to take a hit in the 2004 years to rebound in 2005. This suggests they may try to postpone HL2 as late as possible. This is not unheard of in the business world. Their goal is to maximize their loss this year (since investors can only hammer their stock price so much) and rebound with a profit next year.
 
Well the fiscal year of 2005 has already started, unless they want to rebound for 2006?
 
How do HL:S and CS:S effect the lawsuit? Valve's original lawsuit is over Vivendi's illegal distribution of Half-Life (not paying them royalties for it). Isn't Vivendi going to have to pay royalties to Vavle for the Source versions of the games as they are new and separate products? Nobody is going to want the older versions now, so the whole thing seems moot. Valve should drop the case since Vivendi has to pay them royalties for the new versions anyways. Or Vivendi should pay what they owe since they're going to have to pay for the Source versions.

Or does Vivendi honestly believe they'll get ownership of the Half-Life IP and get away without having to pay any royalties to Valve for the originals, the sequel, and anything HL related?
 
mortiz said:
Well the fiscal year of 2005 has already started, unless they want to rebound for 2006?

No, the fiscal year end for the VU group is December which means they are still in fiscal year 2004.
 
Brace yourselves people... Don't be surprised if you don't see HL2 until 2005 or the Christmas season at the earliest.

Bleh.
 
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