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Friday, May 23 1997

Broderbund sets up action video game brand

Kourosh Karimkhany

SAN FRANCISCO, May 22: Broderbund Software Inc, a video game software publisher long associated with educational titles, said on Wednesday it had set up a unit dedicated to selling action games.

The new unit, Red Orb Entertainment, also will market "Riven," the long-awaited sequel to "Myst," one of the best-selling video games of all time.

By setting up a separate brand to pitch games that contain violence or adult themes, Broderbund will avoid upsetting parents who have come to associate the company's name with educational titles such as "Where in the World is Carmen Sandiego?" "We've always realised that if we did certain types of games, it might alienate some of our customers," said Bill McDonagh, Broderbund president and chief operating officer.

Broderbund will still be able to use its marketing clout with software distributors and retailers. Red Orb will chase after new types of customers, McDonagh said. Broderbund could use more action titles, which account for a faster-growing segment of the software business than educational games, analysts have said. In its most recent quarter, Broderbund, based in Novato, California, reported that its revenue fell nine per cent to $44.3 million. Sales of action games accounted for just 15 per cent of revenue, and fell 33 per cent compared with the same quarter the year before.

The company has not had a big action hit and has had to cut prices sharply to keep its product moving. "Certainly we'll look to entertainment titles for added growth for the company," McDonagh said. He also said the company will ship Riven in the fall in time for the crucial Christmas season.

Broderbund has disappointed investors in recent quarters by delaying its release because of slow development.

In addition to Riven, Red Orb plans to ship five more action titles in the next six to nine months, McDonagh said.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.

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