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MAGIC EDGE SIGNS DEAL WITH NAMCO OPERATIONS On Nov. 17, at the IAAPA trade show, Magic Edge Inc. announced the signing of a multi-million dollar joint deal with Namco Operations Inc. The agreement combines an equity investment in Magic Edge with the sale of Magic Edge product to Namco. A third element grants Namco licensing rights for a series of themed entertainment centers, the first scheduled to open next spring on Shoreline Blvd. in Mountain View, Calif., near the Magic Edge headquarters. The 12,000-square-foot, fully themed center will showcase a dozen Magic Edge virtual reality flight simulators that offer an aerial combat game. An additional center is planned for Japan and will open in late '94. According to Kevin Hayes, president of Namco Operations : "Magic Edge has been causing a commotion in our industry for quite a while. When we saw its product and met the executive team, we knew this would be an excellent match for Namco." On the Magic Edge side, CEO Michael Chan said : "This agreement fuses together the entrepreneurial excitement of Magic Edge with the strength and experience of Namco. It's a powerful combination that will really shape our industry." The negotiations resulted in an agreement with far-reaching strategic implications. One of those is the exclusive licensing rights, which Namco now holds, to open and operate a number of Magic Edge entertainment centers in Japan. Magic Edge was founded in May, 1990. The company entered the virtual reality entertainment scene with the introduction of Hornet-1 , a fully interactive simulator that immerses its players in a 3-D world. More details, and comprehensive coverage of IAAPA's 75th Diamond Anniversary Convention, will appear in our January issue. WILLIAMS, DATA EAST SETTLE LAWSUITS Williams, Data East USA, and Data East Pinball announced on Nov. 11 that they had settled two lawsuits brought by Williams against the Data East companies, Gary Stern, and Joe Kaminkow. The suits were filed in 1992 and 1993 in a Chicago federal court. The Williams suits alleged that Stern and Kaminkow induced the infringement of certain Williams patents, and that Data East infringed these patents and certain trademarks, engaged in false advertising, and violated a prior settlement agreement with Williams. The defendants denied the allegations and any wrongdoing. As part of the recent settlement, Data East agreed to license from Williams the patents and trademarks that were the subject of the litigation and pay royalties to Williams for any use thereof. Other details of the settlement were considered confidential. RUDOWICZ JOINS KONAMI Konami Inc. has hired Michael Rudowicz to fill the newly created position of coin-op division president. He spent the past seven years as vice president of sales for Wico. Before that Rudowicz worked many years for Bally and Rowe International. "Right now we're looking at the marketplace and considering expansion into other areas,'' he said. ''For instance, we might start licensing some video product and begin marketing the redemption pieces that are being manufactured in Japan." AMERICAN LASER GAMES OFFERS REBATE Until Dec. 31, operators who buy a conversion kit for American Laser Games' latest game, Drug Wars , can get a $500 check back from the company. Operators who have Mad Dog Mccree, Who Shot Johnny Rock?, Gallagher's Gallery, or Space Pirates can take advantage of this offer. For a limited time, conversion kits for Drug Wars will have numbered certificates packed inside. All the operator need do is install the new game software and return the previous video disc and RAM/ ROM card to ALG, along with the certificate and proof of purchase. The company will then send a check directly to the operator. "We want operators who have our earlier games to take advantage of the excitement our newer games can generate in their locations," said Stan Jarocki, ALG's vice president of marketing and sales. Drug Wars was introduced at the AMOA show in October. It's the seventh live action game produced by ALG, incorporating cinematography, special effects, and stunts. The game's scenario involves the player in increasingly difficult encounters with the henchmen of an evil drug lord. PLAY METER 3 NEWS BULLETIN AUTHORIZATION SOUGHT FOR W.VA. VIDEO LOTTERY The West Virginia Supreme Court ruled on Oct. 28 that the operation of video lottery can continue at the Mountaineer Park race track until Nov. 27, at which point it must cease until the Legislature amends the Lottery Act to give the Lottery Commission more specific authorization. Video lottery is only allowed at Mountaineer Park, where it's being run on a test basis. "The Supreme Court determined that there was a constitutional problem with the grant of authority from the Legislature to the Lottery Commission," explained Thomas Russell, secretary and general counsel for Winners Entertainment Inc., parent company of Mountaineer Park Inc. "They determined that on the basis that the Lottery Commission had not been provided specific guidelines and rules by the Legislature, as required in a 1983 constitutional amendment. But the Supreme Court made it clear that if the Legislature were to provide these guidelines and rules in subsequent legislation, it would probably pass their smell test." Russell says the Legislature probably will not meet in special session to address the issue, since the regular session begins in January. As for the Nov. 27 date to cease video lottery operations at Mountaineer Park, "it appears that with our filing of a petition for reconsideration, we will get an automatic stay from the Supreme Court. We're hopeful that stay would carry us into the legislative session, which would give legislators the chance to take the appropriate action and make the Supreme Court's decision moot." The effort to remedy the Supreme Court's action has been joined by the state's three other race tracks. "They have an interest in pursuing video lottery and are helping us in our campaign to draw attention to the issue," Russell said. " If the Supreme Court's decision goes unremedied, it would have a detrimental effect on the state in terms of employment and tax revenues." DATA EAST PIN APPEARS ON HBO Data East's ThlesFrom The Crypt pinball is now being featured in all Home Box Office (HBO) on-air advertisements for the popular horror series. In addition, Kim Kaminkow, wife of Data East vice president of design Joe Kaminkow, appeared in the episode "Oils Well That Ends Well" in late November. Each show begins and ends with the Crypt Keeper playing the Data East pinball. JOHNSON OFFERS THANKS AMOA immediate past president Craig Johnson sent the following open letter a few days after the AMOA show : 'With all the busy schedules at the convention, I obviously did not get to see all of the operators that I have met during the past year. And those that I did see I unfortunately had very little time to visit with. "I would like to take the time to thank all of the many operators, distributors, and manufacturers that (wife) Jana and I have had the opportunity to meet and spend time with this last year. Without exception, we have been welcomed into meetings and events with great enthusiasm. This year has certainly confirmed to me what great people we have in this industry. To those that I did not get to visit with at the convention, I thank you for a great year and for your friendship. I look forward to many years of friendship with all of you." BETSON PACIFIC MOVES L.A. OFFICE Betson Pacific has relocated to a new, larger facility in Southern California. The address is 5660 Knott Ave., Buena Park, CA 90621. The phone numbers are (714) 228-7500, (800) 824-6596 in California, and (800) 676-9318 outside of California. The FAX numbers are (714) 228-7510 and (714) 228-7515 for parts. UPDATE FROM SANTA BARBARA We have an update on a news item that appears on page 31, concerning anti-redemption legislation in Santa Barbara, Calif. Bob Snyder, game consultant with Bob Snyder & Associates, has announced that through a team effort and after 10 months of city meetings and presentations, the city of Santa Barbara has adopted a new ordinance repealing the former anti-redemption section, which dated back to 1925. The new ordinance takes effect on Dec. 9. Snyder said of the successful fight, "In part, the good reputation of the local operator and a bowling center gelled the exciting results." DECEMBER 1993