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FROM THE EDITOR 0 Valerie Cognevich Cognevich Valerie Editor Editor PLAYMETER METER PLAY Some informa informative reading inside inside Some tive reading ur February February issue issue has has traditionally traditionally been been rereur servedfor for articles articles focusing focusing on on tax tax updates updates and and served management, coinciding coinciding with with the the season season for for management, of that that in in this this issue, issue, filing taxes. taxes. We We have have all all of filing full of ofuseful useful tax tax tips tips and and an an exceptional exceptional chock full chock management article. But there's more. There's management article. But there's more. There's be missed missed concernconcernan article article that that should should not not be an ingviolence violencein in video video games. games. ing First, a note about tax and and management-remanagement-reFirst, a note about tax lated subjects. As we began working on an an ararlated subjects. As we began working on ticle outlining outliningincome income forecasting, forecasting, the the deprecidepreciticle ation method method preferred preferred by by ation out operators, we found operators, we found out that there there could could be be snags snags that ahead brought brought about about by by ahead new tax tax laws. laws. In In aa nutshell, nutshell, new the past past operators operators were were in the in their forced to depreciate forced to depreciate their video games games over over aa period period video of five five to to seven seven years, years, of laughable considering the laughable considering the useful lifespan is often useful lifespan is often aa orless. less. But But there there was was year or year little choice. choice. In In 1993, 1993, then then little president of of AMOA AMOA Craig Craig president Johnson used his own Johnson used his own company to obtain a pricompany to obtain a private letter letter ruling ruling deeming deeming vate income forecasting forecasting aa viviincome been able alternative. It's able alternative. It's been considered aa major major victory victory considered and in in the the for operators, operators, and for four years since some opfour years since some operators have adopted income forecasting. erators have adopted income forecasting. when new new tax tax laws laws were were apapHowever, when However, proved last last year, year, there there was was aa question question as as to to proved be depreciatwhether video games could still whether video games could still be depreciated using usingthe the income income forecasting forecastingmethod. method.AlAled though Johnson's Johnson's company company received received the the priprithough vateletter letterruling, ruling, in in reality reality itit only only covered covered his his vate the ruling as a tool to company. Others used company. Others used the ruling as a tool to ofthe the depreciation depreciation method. method. defend their theiruse use of defend Several operators operators recently recently have have been been told told Several CPAs that thatitit isis questionable questionable whether whether by their their CPAs by video games games can can actually actually be be included. included. They They video are not mentioned specifically in the paraare not mentioned specifically in the paragraph about aboutincome income forecasting forecasting casting casting aa long long graph shadow across its future in the industry. This shadow across its future in the industry. This AMOAto to spring spring into into action, action, doubthas has caused caused AMOA doubt up the phone calling meetings and burning calling meetings and burning up the phone lines with with conference conference calls. calls. At At presstime, presstime, the the lines just beginning so we can't discussions were discussions were just beginning so we can't give you you aa rosy rosy picture picture of of how how this this will will pan pan give out. However, However, we we have have given given you you aa summary summary out. of how how income income forecasting forecasting works, works, repeated repeated of 10 10 how itithas has been been possibly possibly the the only only fair fair way way to to how and we've assembled depreciate video games, depreciate video games, and we've assembled Don some insight insight from from AMOA's AMOA's president president Don some Hesch looking looking into into the the concerns concerns about inHesch about income forecasting. come forecasting. The other other article article II mentioned mentioned on on video video The game violence explores this age-old topic. It's game violence explores this age-old topic. It's one that's that's been been around around since since video video games games bebeone and Exidy's Exidy's Death Death came aa household household phrase phrase and came Race in the mid-'70s was fodder for newspaRace in the mid-'70s was fodder for newspaper headlines. headlines. Death Death Race Race challenged challenged players players per run down down pedestrians pedestrians and and aa cross cross would would apto run to appear where where the the citizen citizen was was hit. hit. But Butitit was was very very pear crude, black black and and white white images images that that drew drew ire ire in in crude, The foes foes of of violence violence in in those those days days are are 197 6. The 1976. probablymore more shocked shocked than than we we can can imagine imagine probably about the graphic images of today leaving about the graphic images of today leaving nothing to the imagination as spines are ripped nothing to the imagination as spines are ripped from lifeless lifeless enemies enemies on on the the screen. screen. from Video game game violence violence has has generated generated heated heated Video on both sides of the controversy, arguments arguments on both sides of the controversy, "Violent games games are are in in high high demand demand by by from "Violent from players" to "The violence in video games is players" to "The violence in video games is ofkids kids with with no no consciences." consciences." creating aa crop crop of creating But no no matter matter where where your your own own thoughts thoughts fall fall But between these two extremes, it's a fact that between these two extremes, it's a fact that lawmakershave have strong strong opinions opinions and and influence influence lawmakers the final final outcome. outcome. Lobbyist Lobbyist John John Chwat Chwat on the on has followed the subject in Washington and has followed the subject in Washington and was able to sit down with Sen. Herbert Kohl was able to sit down with Sen. Herbert Kohl (D-Wisc.) to to find find out outhow how lawmakers lawmakers view view this this (D-Wisc.) Kohl and and Sen. Sen. Joe Joe Lieberman Lieberman sensitive subject. subject. Kohl sensitive (D-Conn.)held held aa press press conference conference in in WashingWashing(D-Conn.) ton last November to talk about the violence. ton last November to talk about the violence. Sen. Lieberman's Lieberman's speech speech We've also also printed printed Sen. We've that conference. conference. His His candid candid comments comments from that from strike aa chord chord as as he he relates relates his his disgust disgust in in the the. strike gory, grotesque, graphic violence kids are seegory, grotesque, graphic violence kids are seeday. ing every every day. ing We posed posed aa question question to to our our readers readers in in our our We most recent State of the Industry survey: "Are most recent State of the Industry survey: "Are you concerned concerned that that the the government government will will interinteryou the industry industry vene with with its its own own rating rating system system ififthe vene doesn't do do itit themselves?" themselves?" Roughly Roughly half half said said doesn't they were concerned about this. As Kohl tells they were concerned about this. As Kohl tells us in this thought-provoking interview, he beus in this thought-provoking interview, he believes that thatthe theindustry industry has has been been doing doing aa good good lieves but it's it's clear clear that that he he wouldn't wouldn'thesitate hesitate to to job, but job, step in if the industry fails to continue the step in if the industry fails to continue the progress.He He admitted admitted that that there there is is aa difference difference progress. betweenhome home games games and and those those found found outside outside between the home, but you might be a bit surprised the home, but you might be a bit surprised why. Don't Don't pass pass up up this this article. article. II think think it's it's in in why. our best best interest interest to to understand understand the the mindset mindset of of our those holding holding our our future future in in their theirhands. hands. .a\. A those FEBRUARY 1998 1998 FEBRUARY