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December 21, 2000
The Hollywood Reporter

Game Makers Look to Interact
Agency sees online play getting 'huge' as biz goes mainstream
By Michael Bitton

Recent failures by film and television producers to create moneymaking "sticky" content for Web pages have the team at Interact -- a talent agency that matches video game creators with video game companies -- feeling confident.

Why? Consider the popularity of subscription-based online games like Sony Online Entertainment's "EverQuest." More than 300,000 players pay $10 a month to "live" in a make-believe world of swords and sorcery. That cool $3 million a month is almost enough to make Hollywood take notice.

"Online gaming is already unbelievably huge as a niche market," Interact CEO and co-founder Paul Cunningham said. "Imagine how huge it will be when more mainstream games are introduced."

As entertainment and technology converge, Interact is betting big on video game talent. It represents more than 10,000 video game programmers, 3-D artists, animators, designers and producers in North America.

Sony, Electronic Arts and Microsoft are among the companies successfully using subscription-based "persistent reality" gaming to monetize the Internet. Players pay about $40 to get the game software and continue to pay $10 a month to interact with other players in virtual worlds.

"We believe video game makers will deliver the most addictive content ever," Cunningham said. As the only staffing firm specializing in providing talent for the gaming industry, Interact will more than likely represent those creators of addictive content.

If, as Cunningham believes, video game geniuses are at the center of entertainment convergence, it follows that another Interact initiative might see success.

This year, Interact spun off a sister talent shop, R.E.D., which stands for Representing Entertainers and Developers. R.E.D. represents more than 30 teams of game developers -- not individuals. As such, it represents original concepts from those teams, which are pitched to Hollywood filmmakers and TV producers for treatment on the silver and smaller screens.

"We take our clients' original content and pitch to studios concurrently with development of their video games," R.E.D. president Rich Leibowitz said.

R.E.D. has already secured a deal for Heavy Iron Networks whereby Heavy Iron was set up as a division of THQ, initially to create video games based on the movie license "Evil Dead." The game will be released to retail within a month.

Artificial Mind & Movement was another success. Thanks to R.E.D, it got a contract to develop a video game based on the movie "Dr. Seuss' How the Grinch Stole Christmas" for Universal Interactive and distributed by Konami. The game was released to retail last month.

Another R.E.D. deal was for Treyarch Inventions, which got the contract to develop a video game based on the Saturday morning cartoon "Max Steel" for Mattel Interactive. The game is expected to hit stores within a month.

Cunningham said video games are an excellent entry point into more traditional forms of entertainment.

"These developers already know they have to hook you in the first five seconds or you're gone," Cunningham said. "They understand content must be immediately engaging, and they create that kind of content every day."

Cunningham said the TV and cable networks he's talked to say they're going to make TV shows that have online game counterparts so viewers can interact with lead characters -- but not right away."They're not ready to do it yet," he said.

But when they are, he hopes they will turn to him to find the talent to make it so.

   

 

 

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