The Gubmint

Maybe an energy policy that for years consisted entirely of "keep gas prices as low as possible" directly encouraged overproduction of the huge cars that no one wants anymore because oil will no longer be so ridiculously cheap ever again.

And maybe the young liberal technocrats in charge of things now don't care about the industrial midwest and don't understand the importance of preserving American manufacturing jobs, which is why they'll give the banks a blank check and let them fight even the most basic of new regulatory legislation while demanding crippling concessions from the automakers in exchange for a fraction of the cash.

Also now they will seize all the automakers because they are Kenyan Communists.

The Foreigners

"George Washington would roll over in his grave and call it treason for letting foreigners come in here and take away what we had built," a longtime autoworker says in The New Yorker's April story on the death of Detroit. And it's true! The Japanese waltzed in here offering better, more fuel-efficient cars during the oil crisis in the '70s, manufactured in non-union plants down in the lawless South, and next thing you know no one wants a Firebird anymore.

And these foreigners also won the affection of all these southern Republican lawmakers, who refused to help Detroit because Nissan owned their districts. It's un-American.

The Hippies

Wah wah we want an electric car the hippies all said. And so California made Detroit build an electric car. But it was expensive, and real Americans, who only buy cars based on how loud, big, and cheap they are (gas is still so cheap whee!), didn't want anything to do with the EV1.

Now G.M. is sinking billions into the Chevy Volt, an all-electric car that will cost twice as much as a Prius, and still be a Chevy, so no one will want it.

The Elitists

The only people left in America with any money are various liberal New York Times-reading coastal elitists. And guess what? They don't buy American! If they don't take trains, they buy Toyotas and Hondas. Because American cars aren't hip enough for them.

The Jews?

In addiction to controlling the New World Order, the Jews caused the first oil crisis with that whole Yom Kippur War thing.

The Arabs?

They still have allllll the oil (besides all the oil we haven't yet drilled for, in Alaska, because of hippies), and they won't just give it to us for free! What jerks!

The Unions

Ok, so, G.M. spends more than $1,000 per car manufactured on the entirely useless and stupid act of "providing health care to current and retired workers." And the stubborn unions that crippled the industry refuse to negotiate in good faith, demanding crazy things like "equitable sacrifices from bondholders" in exchange for the various concessions they've made, like accepting half their pension funds in Ford stock and introducing a two-tiered wage plan for new hires!

And yes, workers won the right to get paid even when they weren't working, so that the robots wouldn't steal their jobs, and they could retire after thirty years and hold on to very nice health plans and pensions. All in all it was a lot like France or something.

It could be argued that these out-of-control labor costs pale in seriousness to the various ridiculous missteps and idiotic business decisions management made over the last 30 years but only if you are a communist.

Once again those foreign-owned plants did it right. Their non-unionized workers contribute to the cost of their own health care, encouraging many of them to not get sick so much, and instead of fancy guaranteed pensions they all have 401(k)s, which encourages them to work even harder, because now those 401(k)s are worth zero dollars.

Gremlins

This seems like the most likely explanation.

The UK does not want Martha Stewart no matter how many lines of crockery she's designed for Wedgwood! The UK Border Agency has barred the felonious lifestyle queen from entering the country, presumably because of her criminal ways here in America. It's admirable consistency for the agency—famous star criminals must be kept out along with the common scum. But it may turn out to be a crippling blow for England's Toad-in-the-hole industry:

Martha Stewart "loves England." Her spokesperson says so! Just look at some of the English businesses that have benefited from mentions on Martha's website:

Toad-in-the-hole

Exceptions to all such general rules exist. Toad-in-the-hole, from England, and pannukakku, from Finland, are baked rather than fried.

'Transferware Cake'

The nineteenth-century English pottery that inspired this cake (top left) was known for intricate scenes and border patterns. Here, a border detail is repeatedly piped in chocolate.

Some kind of plant

Bred in England and introduced by Graham Thomas in 1961, 'Bobbie James' bears small, fragrant, creamy blooms in large clusters

Crumbles

Recipes for these desserts were primarily passed by word of mouth from mother to daughter, not created by and attributed to a particular chef. Many date loosely to colonial America (some, like crumbles, hark back farther to England), where a necessary efficiency prompted home cooks to look in their larders and out their windows into the fields or orchards before whipping up dessert for the family.

Consider the consequences, England.

[Telegraph UK]

"I can confirm we had layoffs yesterday they were in the studio," said LucasArts spokeswoman Margaret Grohne. "They had to do with where we are in our product life cycles."

Yesterday a number of former LucasArts staffers contacted us to say that 75 to 100 employees were laid off from the company, including VP of Product Development Peter Hirschmann and the producer of LEGO Indiana Jones and LEGO Star Wars: The Complete Saga, Shawn Storc.

The layoffs come months after former president Jim Ward stepped down from heading the company and was replaced by Darrell Rodriguez, a former Electronic Arts COO.

According to our sources up to 80 percent of staff has been laid off in departments such as Production Services, which includes QA and Compliance, with jobs planned to be outsourced overseas. Cuts were also said to be made in development, with art and programming staffers being laid off.

While Grohne declined to talk specifics, she did say that Hirschmann was no longer with the company and that his departure was a "mutual decision."

While our sources told us that the layoffs cut deeply into the developer's internal studio, leaving the company short-staffed, Grohne maintained that the company is healthy and remains committed to internal development.

"We are healthy," she said. "LEGO Indie was launched on seven platforms to positive reviews, The Force Unleashed and Fracture are on track for this fall. We have a good slate of games and we have some good stuff going on in production.

"We are definitely committed to the internal studio."

Newsweek's N'Gai Croal conducted an extensive interview about Gordon's decision to leave EA for the position of partner at Kleiner, beginning in June. In addition to being on comfortable terms with the partners at Kleiner, Gordon explained to Croal that the gaming youth and emerging trends helped inspire his decision:

"Being on campus with young people in videogame classes; seeing what they're interested in; seeing what's going on with the Internet turning into new kinds of platforms, from iPhone to Facebook and Amazon Web Services—I've gotten fired up about an all-new ride, an all-new round of invention that's coming," he says. "Kind of as part hobby, part work, I started diving into it. I realized that I really, really, really wanted to be in the middle of that.

It's worth noting that Gordon was one of EA's earliest employees, and that Kleiner was one of the first investors in the company during Trip Hawkins' startup days back in 1982. Full announcement from Kleiner follows the jump.

Just the FAQs: Departing EA Chief Creative Officer Tells Level Up 'After Twenty-Five Years at EA, I'm Ready to be a Forty-Year Old' [Level Up]

William "Bing" Gordon Joins Kleiner Perkins Caufield & Byers as Partner

Electronics Arts Co-Founder and Chief Creative Officer Brings Consumer and Virtual Gaming Expertise to KPCB Technology Entrepreneurs

MENLO PARK, California, April 28, 2008—Kleiner Perkins Caufield & Byers today announced that William "Bing" Gordon will join the firm as Partner in June 2008. Gordon will provide his unique insight and expertise to entrepreneurs in consumer technologies.

"Bing possesses a rare combination of tremendous creative insight and keen business judgment," said KPCB Partner John Doerr. "His success with dynamic and engaging digital entertainment and consumer media is invaluable for innovators in mobility, social networks, gaming and entertainment - indeed, in any area that interacts directly with consumers."

For the last 10 years, Gordon served as Chief Creative Officer at Electronic Arts, with responsibility for the company's creative products and oversight of multiple studios. He will maintain his relationship with Electronic Arts as Chief Creative Officer Emeritus, and return to the company to lead periodic workshops on innovation with EA Studio leaders.

Well-known for driving creativity and reality in the digital world, Gordon co-founded Electronic Arts in 1982. It is now the world's leading independent developer and publisher of interactive entertainment software for advanced console systems. Gordon was integral to the creation of more than 20 different award-winning game franchises, including Madden NFL, The Sims and Need for Speed.

During his tenure, he led business, entertainment and marketing groups, helping the company innovate and evolve the interactive entertainment medium across console, PC and mobile platforms. Prior to his role as Chief Creative Officer, Gordon served as Executive Vice President of Marketing, Executive Vice President of EA Studios and as Senior Vice President of Entertainment Production.

"There is a new generation who have grown up 'always on, always digital,'" said Gordon. "Driven by their creativity and new usage habits, entertainment and communications are on the verge of previously unimaginable changes. Ever since KPCB funded Electronic Arts' initial business plan in 1982, I have watched the KPCB team find and support brilliant company-makers to harness disruptive digital technologies that benefit people. I cannot wait to join the firm, and work directly with an all-new generation of entrepreneurs."

Ted Schlein, KPCB Partner, commented, "Adding Bing to our team enhances our investment perspective and will benefit our ventures across the consumer technology landscape. As applications and services evolve more and more rapidly, Bing's depth of experience and industry-wide respect will help our entrepreneurs realize the full potential of their innovations."

Gordon is a member of the board of directors of Amazon.com. In 2005, he accepted a faculty chair position at the University of Southern California's Interactive Media Division after Electronic Arts invested in the fledgling program. Additionally, he co-taught Videogame Prototype Design at Stanford University, and serves at Yale University on the "Digital Yale" presidential advisory council and as advisor to Yale's computer science faculty on its "Computing and the Arts" initiative. He is a trustee at the Urban School of San Francisco.

Gordon holds a B.A. degree from Yale University and an M.B.A. degree from Stanford University.

About Kleiner Perkins Caufield & Byers

Since its founding in 1972, Kleiner Perkins Caufield & Byers has backed entrepreneurs in over 500 ventures, including AOL, Amazon.com, Citrix, Compaq Computer, Electronic Arts, Genentech, Genomic Health, Google, Intuit, Juniper Networks, Netscape, Lotus, Sun Microsystems, Symantec, VeriSign and Xilinx. In February 2008, KPCB announced its $100 million iFund initiative targeted at innovation in the Apple iPhone and iTouch platform. KPCB portfolio companies employ more than 250,000 people. More than 150 of the firm's portfolio companies have gone public. Many other ventures have achieved success through mergers and acquisitions.

TAKE-TWO INTERACTIVE SOFTWARE'S BOARD REJECTS ELECTRONIC ARTS' UNSOLICITED PROPOSAL AS INADEQUATE

New York, NY - February 24, 2008 —The Board of Directors of Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today confirmed that it has received an unsolicited proposal from Electronic Arts Inc. (NASDAQ:ERTS) to acquire Take-Two for $26.00 per share in cash. Take-Two's Board of Directors has thoroughly reviewed EA's unsolicited proposal with the assistance of its independent financial and legal advisors and concluded that the proposal is inadequate in multiple respects and not in the best interests of Take-Two's stockholders.

After careful evaluation, the Board has determined that EA's proposal substantially undervalues Take-Two's robust and enviable stable of game franchises, exceptional creative talent and strong consumer loyalty. We believe EA's unsolicited offer is highly opportunistic and is attempting to take advantage of our upcoming release of Grand Theft Auto IV, one of the most valuable and durable franchises in the industry. Furthermore, the offer values the Company at a significant discount to its public peers and does not compensate Take-Two for its intrinsic value and the substantial synergies that the proposed combination would create.

Strauss Zelnick, Executive Chairman of the Board of Take-Two commented, "Electronic Arts' proposal provides insufficient value to our shareholders and comes at absolutely the wrong time given the crucial initiatives underway at the Company. Thanks to the extraordinary efforts of our creative and business teams, Take-Two has made enormous strides in the past 10 months toward our common goal of being the most creative, innovative and efficient company in our industry. We're extremely proud of our unique portfolio of game franchises, exceptional creative talent and loyal consumer following. Our Board believes that we will build greater value for our stakeholders by remaining relentlessly focused on our strategy and delivering on our mission of making the highest quality interactive entertainment."

Mr. Zelnick continued, "In addition to undervaluing key elements of our business, EA's proposal fails to recognize the value we are building through our ongoing turnaround efforts, which will further revitalize Take-Two. While we have made substantial progress already, the turnaround of our business which we initiated in June is not yet complete, and we believe its benefits have not been recognized in either our current stock price or in the value of EA's proposal."

Mr. Zelnick added, "While the Board believes that entering into discussions with EA at this time is not in the best interests of shareholders, we had offered to enter into a good-faith dialogue with EA to determine if our companies can reach common ground on the appropriate value of Take-Two as a first step to realizing a mutually beneficially transaction. However, given the great importance of the Grand Theft Auto IV launch to the value of Take-Two, the Board has determined that the only prudent and responsible course for our Company and its stockholders is to defer these discussions until immediately after Grand Theft Auto IV is released. Therefore, we offered to initiate discussions with EA on April 30th, 2008 (the day after Grand Theft Auto IV is scheduled to release). We believe this offer demonstrated our commitment to pursuing all avenues to maximize stockholder value, while we believe that EA's refusal to entertain this path is evidence of their desire to acquire Take-Two at a significant discount, whereas we believe this value rightly belongs to our stockholders."

Take-Two has a proven track record of creating and acquiring ownership of valuable new intellectual property. Grand Theft Auto is one of the industry's top franchises, having sold more than 65 million units to date. Over the past year, Take-Two has continued to expand its owned intellectual property portfolio, with two new franchises established - BioShock, one of the highest rated games of all time and winner of numerous "Game of the Year" awards, which has sold over 2 million units to date - and Carnival Games, a casual game for the Wii™, which has sold over 1 million units to date. Take-Two's other proven million-unit selling video game franchises include Midnight Club, Sid Meier's Civilization, Bully, Red Dead Revolver, Max Payne, Rockstar Games presents Table Tennis, Manhunt, Red Dead Revolver, Mafia, The Darkness, Spec Ops, Sid Meier's Railroads! and Sid Meier's Pirates! Take-Two also has powerful and growing sports franchises, with licenses for leading brands, including Major League Baseball® 2K, NBA® 2K and NHL® 2K, and proprietary sports brands, such as Top Spin, All Pro Football and Don King Presents: Prizefighter. Additionally, Take-Two has a partnership with Nickelodeon to publish video games based on top rated Nick Jr. titles such as Dora the Explorer and Go, Diego, Go!

Ben Feder, Chief Executive Officer of Take-Two, commented, "The revitalization of Take-Two is well underway. In the last year, we have accomplished a great deal in terms of restructuring our cost base to improve margins, addressing the legacy issues that have weighed on our business, and enhancing our creative output through organic and external initiatives. We believe stockholders will reap the benefits of these actions both in the near and long term and that our efforts will create greater value for stockholders than what is being offered by EA at this time."

As part of its turnaround plan, Take-Two has implemented a more streamlined and efficient operating structure, put in place a $25 million cost cutting initiative, instituted a disciplined Product Investment Review Process, restructured international operations to create a more efficient and responsive international organization, consolidated the majority of 2K Games and 2K Sports operations on the West Coast to increase efficiency and better support the growth of these labels, and sold its non-core Joytech business.

To continue to position itself for the future, the Company has begun to more aggressively leverage potential growth opportunities, with the acquisition of Illusion Softworks development studio and the formation of the 2K Play label to focus on the family and casual games market.

In addition, current management has secured a $140 million line of credit, announced a preliminary settlement of the "Hot Coffee" class action and made significant progress in resolving the New York District Attorney and SEC actions that have been pending against Take-Two since June 2006 and July 2006, respectively.

Mr. Feder concluded, "We remain committed to executing our existing business strategy and turnaround plans and to building value for all of our stockholders. We intend to vigorously resist any attempt by EA to acquire Take-Two at a price that does not adequately value our Company and its growth opportunities."

Bear Stearns and Lehman Brothers are acting as financial advisors to Take-Two and Proskauer Rose LLP is acting as a legal advisor.

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval.

For more information, please visit http://www.transactioninfo.com/taketwo/

Take-Two's and EA's letters regarding the proposal are included below.

***
February 6, 2008

Mr. Strauss Zelnick
Chairman of the Board of Directors
Take-Two Interactive Software, Inc.
622 Broadway
New York, NY 10012

Dear Strauss:

Congratulations on your recent announcement about the release date for Grand Theft Auto IV. I am sure it must feel great to have this important title locked and ready.

Further to our recent discussions, this letter is to formally express Electronic Arts Inc's. ("EA") interest in acquiring Take-Two Interactive Software, Inc. ("Take-Two") and to propose a transaction in which EA would acquire all of the outstanding shares of Take-Two common stock for $25 per share payable in cash. We are confident we can consummate a transaction quickly, confidentially and on the terms proposed.

The proposed combination will create significant value for your stockholders. Our offer price provides a substantial premium of 58% over Take-Two's most recent closing price and a 51% premium over Take-Two's 30-day trailing average price. The cash purchase price provides certainty of value to Take-Two's stockholders in today's uncertain economic environment.

We believe that moving quickly to negotiate and conclude our proposed merger is in the best interest of Take-Two and EA. Waiting for a later date leaves open significant uncertainty regarding the timing, the probability and the value of a potential transaction and is not in the best interests of either company or Take-Two's stockholders.

We also believe the proposed merger provides an attractive outcome for Take-Two's employees and business partners. We have a powerful product slate for 2008 and beyond with exciting releases planned for many of EA's well-established franchises as well as important new franchises we are launching such as SPORE, Dead Space, Dragon Age and Mirror's Edge. We feel that Take-Two's IP portfolio is well aligned against EA's product footprint and its studios fit well with our decentralized divisional model. Take-Two's creative teams are an essential part of the Take-Two business, and we believe EA would offer a stable and supportive environment for your studios to focus on developing great new games with the backing of a global games industry leader. We believe EA can and will represent the best home for these teams anywhere in the entertainment world.

We have completed a thorough review of Take-Two's public information and are prepared to move forward immediately to consummate a transaction with minimum disruption to Take-Two. We believe that with adequate access to the necessary information we can complete all required due diligence in approximately 2 weeks. We believe that our due diligence review would require limited access to a small number of senior executives of Take-Two and its legal, accounting and financial advisors. Importantly, no interaction with any of the studio leaders will be required until our other due diligence is completed and the material terms of a transaction are agreed to.

Considerable time and resources have been put forth in developing this offer, and our Board of Directors has approved its delivery to Take-Two. Our offer is not conditioned on any financing requirement. However, our offer is subject to the satisfactory completion of our due diligence review of Take-Two, the negotiation and execution of mutually acceptable definitive transaction agreements and the satisfaction of customary conditions to be set forth in such agreements.

We do not intend to make this letter public and our offer will automatically terminate and be withdrawn in its entirety if any portion of this letter, or the existence of discussions between EA and Take-Two relating to a possible business combination, are disclosed to any person other than the directors and officers of Take-Two and its legal and financial advisors.

We look forward to hearing back from you by the close of business on Friday, February 15, 2008, with a response to our proposal.

I am available to meet and discuss all aspects of this proposal with you and your Board. If you have any questions, please do not hesitate to contact me. I very much look forward to hearing from you and working with you and the Take-Two team to consummate a successful transaction.

Sincerely,

John Riccitiello
Chief Executive Officer

JSR/dal

***
February 15, 2008

Mr. John S. Riccitiello
Chief Executive Officer
Electronic Arts Inc.
209 Redwood Shores Parkway
Redwood City, CA 94065

Dear John:

Thank you for your letter of February 6, 2008. The position of the Board of Directors (the "Board") of Take-Two Interactive Software, Inc. (the "Company") with respect to an acquisition of the Company by Electronic Arts Inc. ("EA") has not changed from that which you and I have previously discussed.

As part of the Board's stated objective of maximizing shareholder value, we have been and remain open to considering a business combination with interested parties at the right time and the right price. However, the Board has concluded that EA's proposal has not been delivered at a time nor does it contemplate a price which is consistent with this objective.

On a personal note, I want to thank you for the courtesy reflected in our prior discussions and also your letter. I look forward to getting to know you better in the future.

Sincerely,

Strauss Zelnick
Executive Chairman of the Board

***
February 19, 2008

Mr. Strauss Zelnick
Executive Chairman of the Board of Directors
Take-Two Interactive Software, Inc.
622 Broadway
New York, NY 10012

Dear Strauss:

Thank you for your letter of February 15, 2008. While I appreciate its courteous tone and value our ongoing dialogue, I am disappointed that you have rejected Electronic Arts Inc.'s ("EA's") $25 per share cash offer to acquire Take-Two Interactive Software, Inc. ("Take-Two") and declined to engage in the friendly negotiations we proposed. We continue to believe that an acquisition of Take-Two by EA is in the best interests of your shareholders, employees and other constituents, and we remain interested in acquiring Take-Two. So, to further demonstrate our seriousness and encourage you to move forward now, I am writing to increase EA's offer to acquire all of the outstanding shares of Take-Two to $26 per share in cash. This offer is subject to Take-Two agreeing by February 22, 2008 to commence negotiation of a definitive merger agreement and to permit EA to commence a limited due diligence review of Take-Two.

Our revised all-cash offer represents a 64% premium over Take-Two's most recent closing price and a 63% premium over Take-Two's 30-day trailing average price (based on prices as of market close on Friday, February 15th). We believe our offer represents a unique and compelling opportunity for Take-Two shareholders to maximize the value of their investment in the company, with materially lower risk than if Take-Two proceeds on a stand-alone basis.
We also believe that the transaction we are proposing represents a uniquely attractive opportunity for Take-Two's creative teams and key employees. EA is a diversified leader with well-established franchises and proven intellectual properties, global reach, and significant financial resources. I know we both agree that Take-Two's talented creative teams deserve a permanent home within a stable and growing publisher that provides these teams an environment to do what they do best - create great games. EA is organized in a four-label model that provides our creative teams the autonomy they need to fully realize their creative ambitions, while also providing a stable and supportive corporate and publishing infrastructure which allows them to best address the global marketplace. We have the resources to make the significant investments in technology and infrastructure needed for the most creative and innovative games in the industry. In short, a combination with EA would provide Take-Two's studios and employees a combination of the right resources for investment and global reach, and the right environment to do their best work.

We believe that Take-Two's shareholders would not be well-served by any further delay in negotiating and completing the proposed merger. While the videogame industry remains an attractive, high-growth business, the challenges and risks in the business are escalating, and the need for scale is becoming more pronounced. Despite steps taken since March 2007, Take-Two remains dependent on a limited number of titles, and has limited capital resources. In addition, Take-Two faces ongoing financial, legal and operating issues and a very intense competitive environment. Given these factors, we believe it will be increasingly difficult for Take-Two to create sustainable shareholder value and that Take-Two remains exposed to considerable risk of value loss.

We also believe that any delay in this proposed transaction works against the interest of Take-Two's shareholders, because:

There can be no certainty that in the future EA or any other buyer would pay the same high premium we are offering today. We place significant value on the ability to close the transaction relatively quickly so that EA's strong publishing and distribution network, including our global packaged goods, online and wireless publishing organizations, can positively impact the catalogue sales of GTA IV and also the launch and sale of titles released later this year. We want to work with you and your team to complete the transaction in time to begin realizing its significant marketplace benefits in advance of this year's holiday selling season.
We believe Take-Two's current share price already reflects investor expectations for a strong release of GTA IV as well as the longer-term issues that Take-Two faces. Once GTA IV ships, Take-Two will again be dependent on less-popular titles and face increasing challenges to compete with larger and better-capitalized competitors.
With GTA IV shipping on April 29, development on this important title must now be essentially complete. We believe now is the right time to complete a transaction with minimal disruption for Take-Two.
We also believe the transaction we are proposing will create value for EA's shareholders. In addition to the top-line benefits noted above, we can achieve bottom-line benefits by combining Take-Two's and EA's corporate and publishing infrastructures and by optimally supporting Take-Two's creative teams and intellectual properties in EA's decentralized label structure.

Considerable thought, time and resources have been put forth in developing this offer, and our Board of Directors unanimously supports it. Our offer is not conditioned on any financing requirement. It is subject to the satisfactory completion of a due diligence review of Take-Two, the negotiation and execution of mutually acceptable definitive transaction agreements, and the satisfaction of customary conditions to be set forth in such agreements. We are prepared to move forward immediately with formal due diligence and the negotiation and execution of a definitive merger agreement and believe that with adequate access to the necessary information and people, we can complete both in approximately two weeks. We believe that our due diligence review can be completed with minimal disruption, requiring only limited access to a small number of senior executives of Take-Two and its legal, accounting and financial advisors. We also have prepared a draft merger agreement that we can forward to you immediately.

Our strong preference is to conduct a private negotiation. If you are unwilling to proceed on that basis, however, we may pursue other means, including the public disclosure of this letter, to bring our offer and the compelling value it represents to the attention of Take-Two's shareholders.

I am available to meet and discuss any and all aspects of this proposal with you and your Board. Again, we believe this proposal represents a unique opportunity to maximize value for Take-Two's shareholders, and that the combined enterprise would be extraordinarily well positioned to build value for our respective customers, employees, developers and other business partners. We hope that you and your Board share our enthusiasm, and we look forward to hearing back from you by February 22.

Sincerely,

John Riccitiello
Chief Executive Officer

***
February 22, 2008

Mr. John S. Riccitiello
Chief Executive Officer
Electronic Arts Inc.
209 Redwood Shores Parkway
Redwood City, CA 94065

Dear John:

Thank you for your letter of February 19, 2008. As you know, the Board of Directors (the "Board") of Take-Two Interactive Software, Inc. ("Take-Two" or the "Company") carefully considered Electronic Arts Inc.'s ("EA's") previous offer of $25 per share and concluded that neither the timing of the proposed acquisition nor the price was consistent with the Board's objective of maximizing stockholder value. The Board's rationale for rejecting EA's prior offer is not altered by your decision to increase that offer by four percent.

I would like to reiterate, in the clearest possible terms, the Board's conviction that this is not the right time for Take-Two to enter into a negotiation to sell the Company. Our organization is keenly focused on the scheduled April 29th launch of Grand Theft Auto IV, and on maximizing the value of the game to the Company and, in turn, our stockholders. It is the Board's strongly held view that beginning strategic discussions now would distract our Company and thereby threaten the value of this key franchise.

While I understand that you may disagree with the Board's reluctance to commence discussions immediately, the Board and I want to assure you that our concerns about timing are genuine. Potential negative financial consequences to Take-Two are significant and we believe outweigh the benefits of commencing discussions at this time. As you know, there is no certainty that EA will actually close on the proposed transaction on mutually agreeable terms, especially since you have proposed a price that we would not accept and have qualified your offer by a diligence request. Moreover, as we have all seen time and again, the process surrounding acquiring a public company from start to finish is complex, uncertain, intrusive and distracting, and we believe it would be especially so to the creative artists at the core of our business and to all those who may be displaced by a transaction.

While the Board is convinced that discussions at this time would be imprudent, we also appreciate the potential benefit of a frank and private dialogue with EA. To that end, the Board would be willing to commit to entering into a good-faith discussion with EA on April 30, 2008 to determine if we can reach common ground on the proper value of the Company and therefore an appropriate, mutually beneficial transaction. This would, of course, be subject to both parties reaching a mutually acceptable confidentiality agreement on customary terms. We are prepared to begin negotiating this confidentiality agreement immediately.

In order to alleviate any concerns you may have about the proposed starting date for these discussions, I would be pleased to meet with you privately as soon as possible to talk on a general basis. In addition our Board would confirm, subject to its fiduciary duties, that from now until April 30, 2008 (the "Quiet Period"), the Company will not pursue negotiations with any other potential strategic partner for a business combination unless we have first contacted you. Further, if the Company receives any bona fide offer to acquire the Company during the Quiet Period that the Board decides to explore, the Company will immediately inform EA and we understand that EA may then act as it sees fit.

I would like to note that if EA chooses to announce publicly the Board's proposal or announce any offer by EA to acquire the Company during this Quiet Period or if the contents of this letter become publicly available in sum and substance, the Company will consider all of its alternatives, including discussions with other parties, and further we will reserve the right to refuse to provide EA access to information or diligence.

John, I believe I know you well enough to rely on your considering this proposal in the same good faith we have in making it. I look forward to your favorable response.

Sincerely,

Strauss Zelnick
Executive Chairman of the Board

I also, coincidentally, received Take-Two's comments on the whole, now-public, affair while on the phone with Riccitello. While the two seem to match up on the basic facts, their final analysis don't.

"Basically, (Take-Two) said to us that they thought the offer was inadequate and the price wasn't right," Riccitiello said. "Pretty much the standard response you get from just about anyone in a case like this."

Take-Two's official line pretty much says the same thing, though with a bit more detail on why the $2 billion offer doesn't work for them.

"Electronic Arts' proposal provides insufficient value to our shareholders and comes at absolutely the wrong time given the crucial initiatives underway at the Company," said Strauss Zelnick, Executive Chairman of the Board of Take-Two. "Thanks to the extraordinary efforts of our creative and business teams, Take-Two has made enormous strides in the past 10 months toward our common goal of being the most creative, innovative and efficient company in our industry. We're extremely proud of our unique portfolio of game franchises, exceptional creative talent and loyal consumer following. Our Board believes that we will build greater value for our stakeholders by remaining relentlessly focused on our strategy and delivering on our mission of making the highest quality interactive entertainment.

"In addition to undervaluing key elements of our business, EA's proposal fails to recognize the value we are building through our ongoing turnaround efforts, which will further revitalize Take-Two. While we have made substantial progress already, the turnaround of our business which we initiated in June is not yet complete, and we believe its benefits have not been recognized in either our current stock price or in the value of EA's proposal.

"While the Board believes that entering into discussions with EA at this time is not in the best interests of shareholders, we had offered to enter into a good-faith dialogue with EA to determine if our companies can reach common ground on the appropriate value of Take-Two as a first step to realizing a mutually beneficially transaction. However, given the great importance of the Grand Theft Auto IV launch to the value of Take-Two, the Board has determined that the only prudent and responsible course for our Company and its stockholders is to defer these discussions until immediately after Grand Theft Auto IV is released. Therefore, we offered to initiate discussions with EA on April 30th, 2008 (the day after Grand Theft Auto IV is scheduled to release). We believe this offer demonstrated our commitment to pursuing all avenues to maximize stockholder value, while we believe that EA's refusal to entertain this path is evidence of their desire to acquire Take-Two at a significant discount, whereas we believe this value rightly belongs to our stockholders."

When I told Riccitiello about Take-Two's desire to forestall talks until after the GTA launch, perhaps because they want to see how one of their top titles will do before selling, he said that they did their best to hold off on their offer. In fact EA first approached the board in December, but decided to wait on starting serious talks to make sure the rumblings wouldn't create problems for the Rockstar team working to get the game wrapped up. But now, Riccitiello believes, the company is pretty much done and the time to talk is almost past.

"I initially brought the offer in December, but we waited until GTA development was complete," he said, pointing out that most analysts have already built forecasts for GTA sales into the company's stock value. "That's already baked into their estimates. The truth is the longer they wait the less valuable the (GTA) asset becomes we have less time to influence the holiday sales.

"We felt we got the timing right."

I asked Riccitiello about the perception some have, right or wrong, that Electronic Arts is a company that buys up successful franchises and then runs them into the ground but pumping out endless iterations of the same game. He was quick to point out the reorganization the company went through last year to try and place a greater emphasis on developers over the larger EA brand. The move, from what I heard from people at Bioware, Maxis and Pandemic, was definitely in the right direction.

Riccitiello, in fact, points to their new label model, one inspired by conversations he had with Rockstar's as proof that Take-Two and it's developers would find a happy home at EA.

"As a company, Take-Two is a company that has been faced with operations, financial and legal challenges," he said.

"We think that (the recent reorganization at EA) creates a super environment for the studio labels... We can give them access to the world's best distribution model."

News of this offer brings to mind, for me, rumors I heard earlier this week that a large company (I heard Microsoft, but it could just as easily be EA) was in fact courting some of Take-Two's largest shareholders in an effort to line-up a hostile take-over if an equitable purchase couldn't be arranged, a question that riled the folks at EA.

"We haven't taken anything off the table in terms of options," Riccitello said. "But we see ourselves, in many ways, as a White Knight. There is nothing friendlier than a 60 percent increase in their stock."

"Frankly you can write anything, but look at what we've done (with the labels model). People are flocking to that. I think we can be a good home for these developers."

Riccitello, incidentally, said he was in New York, where Take-Two is based, rather than EA's headquarters in Los Angles, this weekend. I asked if it was because he expected to be sitting down with Take-Two in the coming days and he declined to say. But did say it was a good place to handle the press attention in the coming week.

EA Makes Offer to Buy Take-Two [Kotaku]

Electronic Arts just called me to let me know that they are making a bid to acquire Take-Two Interactive in an all-cash merger of about $2 billion.

The offer set Take-Two's stock at $26 per a share, about 64 percent over the company's closing stock price prior to the company's Feb. 15 offer.

Take-Two's board rejected the offer, leading Electronic Arts to make their offer public to the company's shareholders.

In the letter, attached in the jump, EA CEO John Riccitiello tells Take-Two's Stauss Zelnick that the buy-out would help both the company and its stock holders:

Our all-cash proposal is a unique opportunity for Take-Two shareholders to realize immediate value at a substantial premium, while creating long-term value for EA shareholders. Take-Two's game designers would also benefit from EA's financial resources, stable, game-focused management team, and strong global publishing capabilities. ... There can be no certainty that in the future EA or any other buyer would pay the same high premium we are offering today.

Specifically, the letter mentions that EA could really help out with the launch of GTA IV. Hit the jump for the full letter and check back later to read our interview with Riccitiello.

Updates:
EA CEO/ Take-Two Chairman Talk Take Over Bid
The Take-Two Letters: EA Rejected
EA or Not EA: The Take Two Question

February 19, 2008

Mr. Strauss Zelnick
Executive Chairman of the Board of Directors
Take-Two Interactive Software, Inc.
622 Broadway
New York, NY 10012

Dear Strauss:

Thank you for your letter of February 15, 2008. While I appreciate its courteous tone and value our ongoing dialogue, I am disappointed that you have rejected Electronic Arts Inc.'s ("EA's") $25 per share cash offer to acquire Take-Two Interactive Software, Inc. ("Take-Two") and declined to engage in the friendly negotiations we proposed. We continue to believe that an acquisition of Take-Two by EA is in the best interests of your shareholders, employees and other constituents, and we remain interested in acquiring Take-Two. So, to further demonstrate our seriousness and encourage you to move forward now, I am writing to increase EA's offer to acquire all of the outstanding shares of Take-Two to $26 per share in cash. This offer is subject to Take-Two agreeing by February 22, 2008 to commence negotiation of a definitive merger agreement and to permit EA to commence a limited due diligence review of Take-Two.

Our revised all-cash offer represents a 64% premium over Take-Two's most recent closing price and a 63% premium over Take-Two's 30-day trailing average price (based on prices as of market close on Friday, February 15th). We believe our offer represents a unique and compelling opportunity for Take-Two shareholders to maximize the value of their investment in the company, with materially lower risk than if Take-Two proceeds on a stand-alone basis.

We also believe that the transaction we are proposing represents a uniquely attractive opportunity for Take-Two's creative teams and key employees. EA is a diversified leader with well-established franchises and proven intellectual properties, global reach, and significant financial resources. I know we both agree that Take-Two's talented creative teams deserve a permanent home within a stable and growing publisher that provides these teams an environment to do what they do best - create great games. EA is organized in a four-label model that provides our creative teams the autonomy they need to fully realize their creative ambitions, while also providing a stable and supportive corporate and publishing infrastructure which allows them to best address the global marketplace. We have the resources to make the significant investments in technology and infrastructure needed for the most creative and innovative games in the industry. In short, a combination with EA would provide Take-Two's studios and employees a combination of the right resources for investment and global reach, and the right environment to do their best work.

We believe that Take-Two's shareholders would not be well-served by any further delay in negotiating and completing the proposed merger. While the videogame industry remains an attractive, high-growth business, the challenges and risks in the business are escalating, and the need for scale is becoming more pronounced. Despite steps taken since March 2007, Take-Two remains dependent on a limited number of titles, and has limited capital resources. In addition, Take-Two faces ongoing financial, legal and operating issues and a very intense competitive environment. Given these factors, we believe it will be increasingly difficult for Take-Two to create sustainable shareholder value and that Take-Two remains exposed to considerable risk of value loss.

We also believe that any delay in this proposed transaction works against the interest of Take-Two's shareholders, because:

— There can be no certainty that in the future EA or any other buyer would pay the same high premium we are offering today. We place significant value on the ability to close the transaction relatively quickly so that EA's strong publishing and distribution network, including our global packaged goods, online and wireless publishing organizations, can positively impact the catalogue sales of GTA IV and also the launch and sale of titles released later this year. We want to work with you and your team to complete the transaction in time to begin realizing its significant marketplace benefits in advance of this year's holiday selling season.

— We believe Take-Two's current share price already reflects investor expectations for a strong release of GTA IV as well as the longer-term issues that Take-Two faces. Once GTA IV ships, Take-Two will again be dependent on less-popular titles and face increasing challenges to compete with larger and better-capitalized competitors.

— With GTA IV shipping on April 29, development on this important title must now be essentially complete. We believe now is the right time to complete a transaction with minimal disruption for Take-Two.

We also believe the transaction we are proposing will create value for EA's shareholders. In addition to the top-line benefits noted above, we can achieve bottom-line benefits by combining Take-Two's and EA's corporate and publishing infrastructures and by optimally supporting Take-Two's creative teams and intellectual properties in EA's decentralized label structure.

Considerable thought, time and resources have been put forth in developing this offer, and our Board of Directors unanimously supports it. Our offer is not conditioned on any financing requirement. It is subject to the satisfactory completion of a due diligence review of Take-Two, the negotiation and execution of mutually acceptable definitive transaction agreements, and the satisfaction of customary conditions to be set forth in such agreements. We are prepared to move forward immediately with formal due diligence and the negotiation and execution of a definitive merger agreement and believe that with adequate access to the necessary information and people, we can complete both in approximately two weeks. We believe that our due diligence review can be completed with minimal disruption, requiring only limited access to a small number of senior executives of Take-Two and its legal, accounting and financial advisors. We also have prepared a draft merger agreement that we can forward to you immediately.

Our strong preference is to conduct a private negotiation. If you are unwilling to proceed on that basis, however, we may pursue other means, including the public disclosure of this letter, to bring our offer and the compelling value it represents to the attention of Take-Two's shareholders.

I am available to meet and discuss any and all aspects of this proposal with you and your Board. Again, we believe this proposal represents a unique opportunity to maximize value for Take-Two's shareholders, and that the combined enterprise would be extraordinarily well positioned to build value for our respective customers, employees, developers and other business partners. We hope that you and your Board share our enthusiasm, and we look forward to hearing back from you by February 22.

News of Microsoft's democratization of indie game development was overshadowed this week by an increasing discontent among established indie developers that the company was halving the royalties paid to them for future Xbox Live Arcade projects, several well-informed sources told Kotaku.

Several developers directly affected by the cut told Kotaku that the once generous royalty share of 70 percent given to them by the company was within the past few months cut down to 35 percent.

The move, some believe, may be tied to Microsoft's future reliance on the recently announced initiative to deliver games created using the company's XNA software package to Xbox Live users for a still undisclosed price.

At least one developer I spoke with said they were considering moving over to Sony and its Playstation Network in light of the cuts.

Microsoft has been contacted for comment, but has not yet replied. We'll make sure to update as soon as we hear word.

Update: Microsoft has responded, and you can see what they have to say here.

LucasArts has just confirmed to Kotaku that Jim Ward, longtime Lucas worker bee and current president of LucasArts, has resigned from the company "for personal reasons" and will be leaving LucasArts in a couple of weeks.

Ward, who began his career in advertising, started work at LucasFilm in 1997 as the head of their marketing division. In 2004 Ward was named president of LucasArts.

No word yet on the reasoning behind his seemingly sudden departure or where he will land, but we'll keep you up to date here.

Update: We've spoken with LucasArts about Ward's notice and gotten a comment from Ward.

Nintendo of America seems to be getting their new Bay Area office up to staff. Today the company announced that they appointed two sales and marketing execs to their Redwood City offices.

Denise Kaigler will be Nintendo of America's new vice president of marketing and corporate affairs, a position formerly held by Perrin Kaplan, while Bill Van Zyll will be the new director and general manager of Latin America.

"Denise and Bill bring a wealth of branding and marketing experience to our team," said Cammie Dunaway, Nintendo of America's executive vice president of Sales & Marketing. "Their expertise will help us keep Nintendo's momentum going strong throughout 2008 and beyond."

Hit the jump for the run down of Kaigler and Van Zyll's background.

Kaigler comes to Nintendo following a 16-year tenure at Reebok International, where she serves as head of Global Corporate Communications and Corporate Citizenship. She also serves as head of Corporate Communications in the United States for the adidas Group, the parent company of Reebok.

Van Zyll heads Nintendo of America's Latin America department, which is responsible for the creation, direction and implementation of short- and long-term sales, marketing, and operational strategies for Latin America. He comes to Nintendo of America after more than 15 years at the Whirlpool Corporation, where for the past four years he has served as Director of Finance for Sales for the company's North American region.

So washing machines and sports apparel, got it.

Responding to rumors we broke earlier today that College Hoops 2K9 has been canceled due to a breakdown in negotiations with the license holders for collegiate basketball, 2K Sports parent company Take-Two had this to say to Kotaku:

2K Sports has decided not to continue negotiations with the CLC for the license for its top-rated College Hoops franchise, which would have been released next in November 2008. We are committed to providing fans with high-quality, critically-acclaimed sports games, but given our disciplined approach to the business, we do not believe the current discussions would result in an acceptable outcome.

I followed up with Take-Two to try and get more details and while the declined to talk about any roll EA might have had in the break-down, they did confirm that College Hoops 2K9 has indeed been canceled.

No word still from The Collegiate Licensing Company or Electronic Arts, but we'll keep you posted.

Rumor: 2K9 College Hoops Canned, EA Seeks NCAA Deal [Kotaku]

Yesterday, EA CEO John Riccitiello, EA Games Label President Frank Gibeau and a few other top EA folks traveled down to Pandemic Studios to say hi to the recently acquired company and welcome them into the EA family.

But the Pandemic folks thought it would be fun to turn the tables and welcome EA into their family instead. Andrew Goldman and Josh Resnick (Pandemic Co-Founders) dyed their hair "Pandemic" yellow, while the entire company showed up wearing their Pandemic t-shirts.

When Riccitiello and Gibeau got on stage to take questions, a Mercenaries 2 team member decided to ask his question dressed in his signature chicken-suit garb. So now Pandemic is hiring... just kidding. Apparently Riccitiello and Gibeau both have a sense of humor.

Nearly seven years ago Microsoft snatched up Bungie Studios, lock, stock and barrel. Today Bungie snatched themselves back.

I know the press release doesn't really spell that out, but Brian Jarrard, Community and Franchise Director of Bungie, confirmed it for me today:

Bungie is privately owned by Bungie, not Microsoft. We are Bungie, LLC now.

Jarrard was nice enough to take the time to do an email Q&A with me today about a bunch of things. Questions ranged from how Bungie managed the break-up, to whether we can expect to see PS3 or Wii titles to them to what exactly the deal is with Halo DS. Hit the jump for the full exchange.

Kotaku: What's the atmosphere like today over at Bungie? You guys must have already been pretty elated with the Halo 3 sales, and now you get a bit more freedom.

Brian Jarrard: Well first and foremost we're in the business of making games and, believe it or not, most of the team is hard at work today like any other day. But yeah, we are still elated by the success of Halo 3 as the numbers continue to pour in and being able to publicly make this announcement today is an exciting next step in the future of our Studio.

Kotaku: How would you classify the new relationship? Is Bungie now completely independent of Microsoft, or does Microsoft still own the developer?

Brian Jarrard: Bungie is now officially an independent company but we will continue to maintain close ties and a strong partnership with Microsoft.

Kotaku: If the company is independent does that mean it is now employee owned, publically held or something else?

Brian Jarrard: Bungie is an LLC, privately owned.

Kotaku: Did cash or stock exchange hands to make this deal happen? If so how much?

Brian Jarrard: Sorry but I'm not at liberty to discuss the specifics of this new relationship.

Kotaku: Looking from the outside this move looks like something that purely benefits Bungie, how were you able to convince Microsoft to "unleash" the studio?

Brian Jarrard: To be honest, this new relationship is mutually beneficial to both Microsoft and Bungie. On one hand, we get to return to our roots and explore some creative freedoms and possibilities that we may not have otherwise been able to. Meanwhile we continue to have the support of the best publisher in the industry on some really exciting projects like our Halo collaboration with Peter Jackson. On the Microsoft side, they get the benefit of an energized and inspired Bungie team, committed to making great games for their platforms, and a continuation of our strong partnership together. It's a win-win situation.

Kotaku: What sort of control will Microsoft retain over the studio's future projects? Will they have first choice for new games or the ability to nix titles the studio is working on.

Brian Jarrard: Going forward, we will continue to work with Microsoft as a great partner and publisher of Bungie games.

Kotaku: What motivated this move on Bungie's part? When did the studio first suggest the independence idea to Microsoft and what was their reaction?

Brian Jarrard: This is really just the next step in the evolution of our studio and our relationship with Microsoft. Bungie has always been fiercely independent at heart and being in control of our own destiny, and the creative freedoms that come with that, is the core of what this studio was founded on some 15 years ago. These discussions began with Microsoft some time ago as a means of maintaining a mutually beneficial long term relationship.

Kotaku: In the Microsoft press release, Microsoft mentions the possibility that someone else could perhaps work on Halo titles. Is that something that bothers you?

Brian Jarrard: Not at all - in fact, this is already happening with Ensemble Studios and their work on Halo Wars. And, Peter Jackson and his team have a big role in the Halo project that we are collaborating on. Fortunately Halo attracts the best talent in the industry and Microsoft isn't going to run the franchise into the ground or jeopardize the quality bar and fan following we've already established.

Kotaku: How does Bungie feel about the Halo franchise? It has obviously been a huge success, but have does the studio feel like it's time to move on?

Brian Jarrard: Overall we still love Halo. Many of us are currently playing the hell out of Halo 3, despite spending three or more years creating it. While we do have some people who have spent nearly ten years of their lives on this franchise, we have far more who never shipped any Halo game until this latest release. As we continue to grow as a studio, we are able to branch off and allow some people to explore new ideas and IP while allowing others to continue to explore the Halo Universe.

Kotaku: With this new independence are you allowed to start playing around with developing titles for Nintendo and Sony?

Brian Jarrard: For the foreseeable future we're focused on Microsoft platforms and the Xbox and Xbox 360 have obviously been very good to us.

Kotaku: The whole Halo on the DS rumor just doesn't want to die, do you see that in the cards?

Brian Jarrard: This rumor has been circulating for a while and as you know we even saw some real life screens and assets this week. Ultimately it's up to Microsoft to decide if and when they take Halo to a different platform. That particular demo was in fact created and I believe it was an unsolicited pitch a long time ago but nothing ever came of it.

Kotaku: I think most Xbox 360 owners are fans of the Halo franchise, but what I'd personally love to see is a an exciting new IP from Bungie. Do you already have anything in the works?

Brian Jarrard: We are always working on stuff. Secret stuff. We've got a lot on our plate at the moment with the Peter Jackson Halo project and ongoing support of Halo 3 but suffice it to say that we are indeed looking closely at what our next big thing will be. We'll have more to say in due time...

Kotaku: What sort of genres and ideas get the developers excited these days?

Brian Jarrard: We're all gamers at heart and when we're not playing Halo 3, we're spending time with every other good release out there. Regardless of the genre, we are all fans of technical innovation, interesting story telling and most of all, great fun.

Dave Karraker, the senior director of corporate communications has just announced he will be leaving Sony Computer Entertainment of America for Skyy Spirits. His last day at SCEA will be this Friday, his first at Skyy Spirits will be Oct. 1.

Karraker said he decided to take the position after being "presented a global opportunity near my home in an industry where I have previous experience that I feel I must pursue."

Karraker said it was a "difficult decision to leave Sony" and called the past year with SCEA a "wild ride and an incredibly enriching experience. I have enjoyed immensely my tenure at SCEA and think the company and its brands are very well positioned to have an exceptional holiday and a very bright future. I look forward to continuing to follow this industry as a gamer, rather than a spokesperson."

We had our tifs Dave, but we've always loved ya and we'll miss our back and forths.

Former Take-Two CEO Ryan Brant was sentenced to five years of probation for his role in stock-option backdating, after agreeing to cooperate with prosecutors, Bloomberg reports.

Brant's February plea also required him to pay $6.3 million to settle a civil suit filed by federal regulators another $1 million to New York city and state officials. He's already forked over $4.7 million of that. More than 200 companies are under similar investigations, but Brant, 35, became the first CEO convicted in the cases.

``I'm deeply sorry for my role as an executive in the company and my role in the options dating process,'' Brant told New York State Supreme Court Justice Brenda Soloff today in Manhattan. Brant had faced up to four years in prison.

Brant was one of three Take-Two officials convicted in the case.

Take-Two Ex-Chief Sentenced to 5 Years of Probation (Update3) [Bloomberg]

Hearst today announced that they have finalized a two-year deal to buy UGO Networks outright. While the details of the deal were not released, Forbes estimates the deal to "be in the neighborhood of $100 million."

No word yet on what Hearst plans to do with the internet info network, but they sound genuinely jazzed:

With this acquisition, Hearst will gain, according to Ganzi, "one of the most popular men's lifestyle brands on the Web. UGO.com, the flagship Web site, is a first-stop destination for the latest news and content on games, movies, television, film, DVDs, music, sports, women and comic books." With an audience of over 11 million unique visitors in the U.S. and nearly 28 million worldwide, UGO reaches one in 10 online users in the highly coveted male 18-to-34-year-old demographic. UGO is entirely supported by advertising revenue and specializes in effective and customized advertising for blue-chip brands.

I can't help but wonder if Hearst thinks they bought IGN.

Hearst Corporation to Acquire UGO Networks [Business Wire]

The father of the Playstation officially stepped down today, ending an era that saw the launch of three consoles and Sony's entry into the gaming market.

Kutaragi announced his plans to leave the company as all but an "honorary chairman" back in April. Kazuo Hirai will be stepping into his large shows to take over day-to-day responsibilities as the head of Sony Computer Entertainment Inc.

It's doubtful we will see any substantial change in the company's operations in the weeks leading up to E3, but I'm sure this move will trigger some shifts in the way Sony does business down the line.

Father of Sony PlayStation steps down [CNN]

First Sony Computer Entertainment of America lays-off 80 to 100 people, then 90 percent of NOA's marketing department quits and now the woman behind the scenes of E3 has jumped ship to join the IDG World Expo.

Carolyn Rauch, the former senior vice president of the Entertainment Software Association, was named vice president of event development today for the company that puts on the Entertainment for All and Macworld, among other expos.

Rauch has been with the ESA almost since its inception and was most recently in charge of organizing the E3 Media & Business Summit.

When I spoke to the now former president of the ESA, Doug Lowenstein, about the future of E3, he told me not to worry because it was in Rauch's loving hands. Should we be worried now? Brian Crecente

FRAMINGHAM, Mass.—(BUSINESS WIRE)—IDG World Expo, the leading producer of world-class tradeshows and events, today announced the appointment of Carolyn Rauch as Vice President, Event Development. In this role, Rauch will be responsible for business development initiatives and cultivating new events for IDG World Expo, with an emphasis on strategic planning and branding across all events.

Ms. Rauch brings a diverse set of skills and more than 20 years experience to her new position. Prior to joining IDG World Expo, Rauch served as Senior Vice President of the Entertainment Software Association where she managed the association's new E3 Media & Business Summit, as well as public relations, research, aspects of the E3Expo trade show, grassroots campaigns, and other programs for the organization. Prior to joining the ESA, Ms. Rauch was a vice president at Robinson Lake Sawyer Miller, a strategic communications firm specializing in entertainment industry public relations. Her clients included MTV, Nickelodeon, and Comcast, to name a few. Ms. Rauch has also served in several political roles, including deputy national press secretary to U.S. Senator Bob Kerrey's 1992 presidential campaign, deputy press secretary to former U.S. Senator and Senate Budget Committee Chairman Jim Sasser, and New Hampshire press secretary and scheduler for former Governor Bruce Babbitt's 1988 presidential campaign.

"Carolyn is a seasoned executive who brings a broad range of experience to IDG World Expo and we are thrilled to have her on board," said Mary Dolaher, CEO, IDG World Expo. "She will play a pivotal role in helping us build our event portfolio, as well as build on the success of our existing events."

About IDG World Expo

IDG World Expo (www.idgworldexpo.com) produces tradeshows and events for professionals seeking world-class education, peer-to-peer networking and one-stop comparison shopping. IDG World Expo's portfolio of conferences and events includes Entertainment For All™ (E For All™), Macworld Conference & Expo®, Next Generation Data Center™ (NGDC™), LinuxWorld Conference & Expo®, and LinuxWorld® OpenSolutions Summit™. IDG World Expo is a business unit of IDG, the world's leading technology media, research and event company.

About International Data Group (IDG)

International Data Group (IDG) is the world's leading technology media, events, and research company. IDG's online network includes more than 450 web sites spanning business technology, consumer technology, digital entertainment and video games worldwide. IDG publishes more than 300 magazines and newspapers in 85 countries including CIO, CSO, Computerworld, GamePro, InfoWorld, Macworld, Network World, and PC World. IDG's lead-generation service, IDG Connect, matches technology companies with an audience of engaged, high-quality IT professionals, influencers, and decision makers.

IDG is a leading producer of more than 750 technology-related events including Macworld Conference & Expo, LinuxWorld Conference & Expo, Entertainment for All Expo (E for All), DEMO, and IDC Directions. IDC, a subsidiary of IDG, is the premier global provider of market intelligence, advisory services, and events. Over 900 IDC analysts in more than 90 countries provide global, regional, and local expertise on technology and industry opportunities and trends.

Additional information about IDG, a privately held company, is available at http://www.idg.com.

About 90 percent of the Nintendo of America Sales and Marketing staff, including Beth Llewelyn, Perrin Kaplan and George Harrison, have decided to quit the company rather than move to either San Francisco or New York, Game Informer is reporting.

The decision comes in the wake of Nintendo of America's decision to relocate marketing staff to the two cities. It is not clear when or if their positions - Senior Director of Public Relations, Vice President, Marketing and Corporate Affairs and Senior Vice President, Marketing and Corporate Communications - or the positions of the rest of the staff will be filled.

Nintendo has not yet responded to requests for comment from Kotaku, but I'll make sure to update when and if they do. Brian Crecente

Harrison, Kaplan And Llewelyn All Departing Nintendo Of America [Game Informer]