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| Square
and new encryption? |
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The rumor du jour is that Square has agreed to "use" Sony's new encryption
method to lock out Final Fantasy VIII from use on Playstations outside of Japan. This
tidbit hits us just as production of the game discs and packaging are underway. Our
company has a few thousand copies of the game on pre-order and a contingency like this
will sting. We are aware that Sony charges additional fees to their associate publishers
if they wish to use the new encryption scheme. In the case of Square, it is very likely
that Sony has waived these additional fees to press the FFVIII CDs with the new lock-out.
Note that we consider this news to be merely a rumor at this time. In preparation of any
surprises, we did have discussions with a number of trading partners in Asia about
defeating the new encryption scheme. We came to two solutions that will be fleshed out
next week. One solution is to swap the territory rom (IC102) on an American Playstation
with a custom designed Japanese territory rom. NCS has used this method in the past to
chip SCPH-3000, 5000 and 5500 consoles from Japan. The territory rom swap will render your
American Playstation a Japanese Playstation that will play all "native" Japanese
CDs. The presence of a modification chip will allow your console to boot all domestic
American discs as well. The problem with this method is we only have access to territory
roms for the SCPH-1001, 3000, 5001, and 5501 series of Playstations. SCPH-7001 and 7501
pcboards are not supported at this time. Another problem is the process to swap territory
roms involves surface mount work which is delicate and difficult to perform without the
proper equipment. The second solution is a weird little mix of chip and hardware that we
hatched overnight but it works in loading Poporogue and IQ Final. We have to test the
method on a few more Playstation pcboard revisions but we were able to get it to run on an
older USA SCPH-1001 (PU-8). Not all is lost if the FFVIII rumor bears fruit. |
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| Nintendo
64 Smash Bros |
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Smash Bros hit the Japanese market on Thursday night (01/21). The game features popular
Nintendo characters such as Samus, Link, Donkey Kong, Pikachu, Mario, etc in an all out
knock-down bout. Literally. The aim of the game is to knock your opponent down as many
times as you can in a set amount of time. Each character in the game comes powered with
his or her own unique skills and attacks. NCS was unable to take delivery of the first
shipment due to short supplies in Japan and high wholesale prices. The
yen retail is Y5800 but suppliers are charging at Y8800 levels. We will take delivery in
the next 6-8 business days when prices return to earth (US$60). Pre-orders
are welcome if you wish to reserve a copy of this unique fighting game from Nintendo. |
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| DC
Sega Rally 2 Confirmed |
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As posted yesterday, NCS had serious doubts that Sega would delay the release of Sega
Rally 2 a second time. Another delay would have been crippling to an already
softened Dreamcast release schedule. Vindication came overnight as we received
confirmation that tha game will ship sooner than expected. NCS now expects to take
delivery next Tuesday or Wednesday. Given our past track record with the two most recent
games (Sengoku Turb and Evolution), we lean towards Wednesday as the day. Additional
pre-orders are welcome. |
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| Neo
Geo Pocket Color |
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SNK has announced the color version of their Neo Geo Pocket for March 19. Pre-orders for
this item have not been opened up yet but we expect details from SNK to be faxed out next
week. NCS will post our schedule for the NGP Color and the games that are expected with
the launch within the next two weeks. Please wait for this schedule before submitting
pre-orders to National Console. |
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| Yen
Equilibrium |
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Super stable overnight with the dollar/yen. It makes no sense given the turmoil in the
world right now but we're not complaining. |
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| Rumors |
| NCS dislikes rumors and holds them in ill disregard. Some rumors, especially
the errant ones, disrupt the market and cause general havoc. We saw this recently with
Sega Rally 2's supposed second delay and currently with the Final Fantasy VIII dilemna.
The problem with rumors is that anyone can whip one up and post it on a message board or a
website. If the rumor is convincing enough, it will spread quickly. To further exacerbate
the problem, they are not easy to dispel if the principals are unwilling to talk or
comment on the item. No easy solutions as rumors are part of every industry but perhaps
taking everything with a grain of salt and some objectivity would alleviate some of the
impact of certain news items. |
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| Beatmania T-Shirts |
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set of Beatmania t-shirts will join our collection of Beatmania goods next week. Three
different shirts are expected and we'll post photos when the stock arrives. Additional
pre-orders are welcome. |
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| Candy
Toys |
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Our Candy Toys remain under a ton of inventory. Things have been exceedingly busy lately
and we have been unable to bring the Candy Toys back out into the sunlight. We'll aim for
early February to return the CTs to the website since next week is out of the question
with Sega Rally 2 and Bloody Roar 2 expected. |
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| Step
Down Transformers |
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Some information that a customer of ours graciously supplied us with. Sega of Japan's
position on the use of step down transformers with the Dreamcast is that they are
unnecessary. The power supply on the Japanese DC is rated to work within a + or - range of
20 volts which is in line with the voltage here in the United States. Sega also felt that
a surge suppressor would be more useful when using the Dreamcast in a territory outside of
Japan to protect the unit against external electrical shocks. However, the power adaptor
in most new electronics, including the Dreamcast, have buffers against these types of
shocks. Bottom line: Owners of the Japanese Dreamcast need not use their console
with a step down transformer. Any worries or concerns based on the voltage are
unfounded based on information from Sega. The DC console heats up quickly inside but this
is normal and proper ventilation and operation of the fan will pipe the heated air out of
the unit. |
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| Capital
Markets |
| NCS opened preliminary March call positions in the big 'nets (AMZN,
YHOO) yesterday. It was a good set of trades even though we missed the lows and bought a
few points above them. We will let the calls ride for the duration and add as we see fit.
Each call is hedged with a naked write, the proceeds of which were used to buy a matching
put position with a strike 10 points lower than the naked call. Somewhat risky but our
potential losses are hedged. We look for further weakness in the market; perhaps we should
have waited until today to open positions but our downside levels were met in the last
session and we followed discipline. Bears may run rampant today... |
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Send e-mail to ncs@escape.com
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