By Michael Santo
Editor-in-Chief, RealTechNews

Shades of another takeover bid we’ve been discussing - a lot - lately. On Sunday, Electronic Arts announced it has offered $2 billion in cash for Take-Two Interactive Software, best known for - what else? - Grand Theft Auto. Anyone want some Hot Coffee?

It didn’t take long for a response. Take-Two immediately issued a press release turning down the offer, saying it was a) unsolicited, b) inadequate.

The door’s not completely closed, however. In the press release, Strauss Zelnick, Executive Chairman of the Board of Take-Two said that Take-Two would be open for discussion - after the release of Grand Theft Auto IV in April. They indicated discussions could start as early as April 30th, the day after GTA IV is set to ship.

Electronic Arts made the following statements about the offer in a press release:

• The current offer is $26 / share. Take-Two’s closing price on Friday, Feb. 22 was $17.36.
• A $25 / share deal was initially made to Take-Two
• The TTWO board rejected the offer which led to EA making the offer public with $1 a share increase

EA is obviously ready to make everything about the offer and any follow-up proceedings public. In other words, they are prepared for a possible hostile takeover.

In fact, EA has created a special website devoted to the offer. The website published the press release, as well as other information, including a FAQ. One unusual aspect of the press release was the inclusion of EA’s letter to Take-Two - with a second offer - after their initial offer was rejected. I’m not going to print the whole letter, but here are some highlights:

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.

blah, blah … normally stuff about how great the offer is and how wonderful the deal would be for both parties …

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.

Obviously we’ve reached the public disclosure point. Did I already say shades of Microsoft / Yahoo!? It looks like EA is willing to go hostile. We’ll be watching.

By Michael Santo
Editor-in-Chief, RealTechNews

Took ‘em long enough. They didn’t file a press release, but Microsoft did use its Gamerscore blog, which it says is the “inside scoop from Microsoft Xbox and Games employees.” Saturday Microsoft announced they would halt production of HD-DVD drives for the Xbox 360.

John Porcaro, Sr. Group Manager in Microsoft’s Global Games Marketing Team, managing Online Communications, said in a statement on the Gamerscore site:

As a result of recent decisions made by Toshiba, Hollywood studios, and retailers, Microsoft plans to withdraw from HD DVD. Xbox will no longer manufacture new HD DVD players for the Xbox 360, but we will continue to provide standard product and warranty support for all Xbox 360 HD DVD Players in the market. As we stated earlier, we do not believe this decision will have any material impact on the Xbox 360 platform or our position in the marketplace. HD DVD is one of the several ways we offer a high definition experience to consumers and we will continue to give consumers the choice to enjoy digital distribution of high definition movies and TV shows directly to their living room, along with playback of the DVD movies they already own.

None of this should be a surprise. Obviously with Toshiba dropping HD-DVD, Microsoft was bound to get out. Rumors flew last week that Microsoft was planning an external Blu-ray drive for the Xbox 360, and honestly, it’s an almost certainty.

Microsoft said as early as January 8th, right after the Warner Bros. announcement that they were dropping HD-DVD, that they would “consider” Blu-ray support, and they have little choice with Toshiba’s announcement. It’s not IF, but WHEN.

PR-wise, the best thing Microsoft could do would be to follow Edion’s example by giving everyone who already had an Xbox 360 HD-DVD drive a swap for a new Blu-ray drive. Probability: low.

By Martin Regtien
Contributing Writer, RealTechNews

As computers have made the transition from the computer room to the living room and beyond, so to have their peripherals and input devices. Nobody wants to have a wired keyboard lying around the living room, nor do they want a large wireless one that takes up the entire coffee table.
Brando’s MC Wireless RF Keyboard looks to provide a small all-in-one solution - Keyboard, media keys and built in track ball.

Paul Moons has all the details in his review here.

By Martin Regtien
Contributing Writer, RealTechNews

Hyperdrives are in my mind, says Kevin Cheng, synonymous with Han Solo and the Millennium Falcon.
The Hyperdrive Colorspace is not going to make the Kessel Run in less than 12 parsecs, but it is claimed to be the fastest device for memory card backups on the move.
Thanks to the folks at Hyperdrive, DigitalReviews gets the opportunity to strap in and take it for a spin.

By Michael Santo
Executive Editor, RealTechNews

Now this is a classy move, but don’t worry, odds are it won’t be a total loss for the company. Japanese electronics retailer Edion has instituted a swap program for customers who purchased HD-DVD players. The offer: to replace the used units with new Blu-ray players. Customers who bought any of seven Toshiba HD-DVD decks can exchange them for a Blu-ray player from Sony, Panasonic or Sharp.

Customers will have to make up any difference in the price. If the HD-DVD player was actually more expensive, customers would receive a refund. Although in most cases Edion will get something out of the transaction, this is still an extremely generous move (and great PR)!

The Toshiba players eligible for the offer, according to Edion’s press release (.PDF, Japanese) are the RD-A1, RD-A300, RD-A600, RD-A301, HD-XA1, HD-XA2, and the HD-XF2.

The offer runs from March 1st - March 31st, according to the press release. Now this is the way a retailer should treat its customers. Wal-Mart, are you listening (although I’m much more concerned over how you treat your employees)?

By Chief Gadgeteer, Gizmos for Geeks
Contributing Writer, RealTechNews.

Most notable this past week was the release of the latest Mvix Media Center, the Mvix MX-780HD. The MX-780HD has HDMI out, supports up to 1080p and can now take either an IDE or SATA drive in its case. Still in the multi-media world, the Kaossilator Touchpad Synthesizer doesn’t need keys or buttons to play musical notes.

A peppermill gadget? Yup. And get this, it’s modeled on Star Wars’ R2-D2. If you’re into toys, check out the Mini Rubber Band Artillery. Take your basic rubber band finger gun to the next level!

USB has really revolutionized computer accessories; there’s a USB gadget that does everything. Here’s one for aromatherapy fans – the USB Aromatherapy Oil Burner. Now, you can get aromatherapy-relaxed while computing. Just plug this device into your USB port, add some oil and you’re good to go.

For you retro-gamers, MAMEUI, the latest MAME for Windows was announced last week. Still in gaming, it appears that Mac gaming is making a comeback. Windows and console games have dominated the gaming world for years, after Macs showed how great games could look on a computer. Let’s hope

Of course, arguably the biggest tech news this week was that Toshiba has dropped out of the DVD format war, with the HD-DVD format being pronounced dead. Sony’s Blu-Ray format is what you’ll be getting used to for the next 5 years at least.

By Michael Santo
Executive Editor, RealTechNews

Rather than “Tickle Me, Elmo,” what we have here is “Threaten Me, Elmo.” At least, according to a Tampa Bay, Florida mother.

Melissa Bowman says that since changing the batteries in the Elmo toy which is her 2-year-old son’s favorite, the doll has been making death threats, saying “Kill James.”

Melissa says that not only does Elmo say “Kill James,” her son is repeating the phrase.

I originally thought this was a load of cr*p, because the fact that it knows James’ name made it seem like the Twilight Zone. But then I realized this is the “Elmo Knows Your Name” doll. That means that one of the first things you do is program in the name of your child.

Elmo is supposed to know over 100 phrases, but “Kill” doesn’t seem like it should be one of them.

On the other hand, perhaps Elmo has met Chucky.

Fisher-Price has offered a voucher for a new doll if the doll is returned to them.

Watch the video:

By Michael Santo
Executive Editor, RealTechNews

The Commodore 64 is legendary, and just last year celebrated its 25th anniversary. Its still amazingly popular, with sites continuing to be devoted to it. And now owners of the Nintendo Wii will be able to play classic games of that era via the Wii Virtual Console.

The catch: only in Europe for now.

The first two games available will be International Karate and Uridium. The European Nintendo Wii site made the announcement, and in the press release, Bala Keilman, CEO of Commodore Gaming, commented,

“The massive impact the Commodore 64 had on video gaming is still evident today with many gamers remembering the computer and its games with great fondness. By working with Nintendo of Europe, we are ensuring that future generations of gamers can play some of the best and most popular titles that kick-started the computer games revolution and so keep the C64 legacy in gamers hearts.”

Yes, there’s still a Commodore computer company, though it puts out gaming systems now. But it does pay homage to the C64 on its site.

Laurent Fischer, Managing Director of European Marketing & PR of Nintendo Europe added,

“We are extremely pleased to be working with Commodore Gaming to provide even more retro hits for Wii owners to choose from on Virtual Console. With over 184 classic titles now available to enjoy, Virtual Console on Wii is a great way for users to access a breadth of classic retro games. We hope that this great choice of games will bring nostalgia to our gaming fans, while an entirely new generation of video game players can experience a host of classic games for the very first time.”

No word yet on when and if those with Wiis outside Europe will get a chance at C64 gaming.