Internet
ò Industry reports show the trading of imaginary assets within the virtual world for actual money, called real money trading (RMT), is believed to have become a Ñ15 billion ($126 million) industry. According to the Online Game Forum comprised of game developers, about 320 online games are available in the country as of the end of 2005, and about 28 million people are registered players. Online gaming is now an Ñ82 billion ($689 million) market, an increase of about 140 percent compared with last year. Since there are no regulations or specific rules for RMT, more problems are expected. Players usually gain their virtual items or currency as they clear certain stages of the game, hoping to clear the stages quickly or to obtain expensive items, some dedicated game fans sell and purchase the virtual items individually through bulletin boards on gamer web sites. After confirming that money has been sent into their accounts from intended buyers, the sellers then provide the items or virtual weapons through a character appearing in the games. The trend has created some professional traders who mediate game players. A Tokyo trader said items or weapons difficult to obtain can be priced at Ñ50,000 ($420) to Ñ100,000 ($840), or occasionally even Ñ2 million ($16,800). However, people unknown in the gaming community, causing frequent problems, have regularly conducted trading on the internet.
ò Domestic TV manufacturers will start a portal site in February to provide online services via TV sets. The companies, backed by the government, aim to establish a global standard for the service as US companies push convergence between personal computers and consumer electronics. TV Portal Service Corp. said the portal will be operated under the name acTVila, with the service connecting TV users free of charge to various web sites that provide consumer-oriented services, such as news and shopping. Five consumer electronics manufacturers--Matsushita Electric Industrial, Sony, Sharp, Toshiba and Hitachi, set up TV Portal Service in July with So-net Entertainment Corp., a Sony-affiliated Internet service provider and shareholder. In fiscal 2007, the joint venture plans to start a streaming video-on-demand service. The five TV manufacturers plan to increase the number of models, which will enable viewers to browse the Internet with the simple operation of a remote control.
Mobile/Wireless
ò NTT DoCoMo Inc. announced a deal to add three new search services for its mobile phone users, including Yahoo Japan Corp. Industry sources said the firm will offer the new online search engines for its wireless internet browsing service, which will expand its lineup to 13 search engines. Yahoo Japan is the country's biggest portal and is 41 percent-owned by Softbank, which earlier this year bought a mobile phone operator from Vodafone Group Plc. DoCoMo said it has opted for an open online search service for mobile phones, compared to Sofbank working with Yahoo Japan on such services and KDDI Corp with Google for its search technologies for mobile phones.
Hardware
ò Hitachi announced a recall of 16,000 potentially hazardous Sony laptop batteries, a development that is seen as undermining the companyÆs recovery from a profit slump. Hitachi joins a growing list of computer makers, which have recalled more than 7.5 million Sony-made batteries since mid-August. Earlier, Sony said that it would incur costs of as much as $257 million after massive recalls by Apple Computer and Dell due to concerns that they could burst into flames when overheated. Other companies have since followed with recalls by Toshiba, Lenovo and Fujitsu. Last week Sony offered to replace all of the potential defective batteries worldwide.
Ventures/Investments
ò Toshiba Corp. announced its acquisition of a 77 percent stake in Westinghouse, British Nuclear Fuels' U.S. power plant unit, in a deal valued at $4.1 billion, buying a much bigger chunk of the firm than it initially planned. Earlier in February, Toshiba agreed to buy Westinghouse for $5.4 billion as part of a consortium, in which it wanted to take a stake of 51 percent or more. Toshiba's stake then grew after it failed to get Japanese trading firm Marubeni Corp. to invest. Under the agreement, the US engineering firm Shaw Group Inc. will take a 20 percent stake for $1 billion, while Ishikawajima-Harima Heavy Industries Co. Ltd. is taking the remaining 3 percent. For the deal, Toshiba revealed that it will turn to bank borrowings for the deal, slated to close by the end of the month, and has no plans for equity financing. As Toshiba is still negotiating with some companies to take a minority stake in the firm, the companyÆs stake in Westinghouse could go down from 77 percent.
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