The Supreme Court ruled 7-2 in favor of the video game industry, declaring unconstitutional a California law restricting minors' access to violent video games. While the original sponsor sees a possibility of revisiting the issue if the court's composition changes, industry representatives and legal experts believe the decision provides strong precedent and it is unlikely and difficult to envision the issue being revisited in the near future. The decision was seen as a major victory for free speech rights in media.
2. 2—CONSUMER ELECTRONICS DAILY TUESDAY, JUNE 28, 2011
opinion leaves the court, there is no way to know now how that justice’s replacement would rule on the
issue. But Smith said "this is a very strong opinion," issued Monday, and "the court does not over-rule
itself very readily." Therefore, he said, he didn’t think it was likely that a return to the issue with a new
Supreme Court justice would happen "at any time in the near future." Alito and Roberts also "didn’t ex-
actly suggest how you would write a law that could pass constitutional muster," Smith said: "It’s my
view, having worked on these cases for a decade, that it is not possible using the tools of the English lan-
guage to write a law" that would accomplish that.
Gallagher said that "just because it’s possible to do something ... doesn’t mean it’s wise to do it."
It would take "a substantial period of time" before "the circumstances ... would come about" where a re-
turn to the issue by the Supreme Court may be possible, he said. In the meantime, he said, ESA was
"very, very pleased with the broad win" on Monday.
If another state opts to introduce another similar law that tries to regulate games "based on content"
in the face of the court’s majority opinion, it’s "just asking to be paying my legal fees in the long run,"
Smith said. "That door has been slammed shut," Gallagher said about the passage of more such laws.
Calling the court’s decision "a big win," Sean Bersell, EMA vice president of public affairs, indi-
cated his group also had little concern about a return to the issue in the future. He told us, "The court
agreed with practically all of our arguments and closed the door on this type of legislation — not only
closed it, but nailed it shut. The majority opinion is now the law of the land and is controlling Supreme
Court precedent."
Other legal experts agreed with the game industry that a return by the Supreme Court to the issue
was unlikely. "It is difficult to imagine a new state law regulating violent video games that would survive
First Amendment review after" Monday’s decision, Robert Corn-Revere, a First Amendment lawyer with
Davis Wright, told us. The court "applied strict scrutiny and found the state's justifications for the law to
be seriously deficient," he said. It was "a bit fanciful to hope for a different outcome based on future hy-
pothetical changes in the composition of" the Supreme Court, he said. Robert Schwartz, a partner at the
law firm Constantine Cannon, said "this is about as ‘settled’ as things get and unlikely to be revisited in
the foreseeable future." His firm was one of many that had filed amicus briefs on behalf of the game in-
dustry in the dispute.
Monday’s decision "effectively closes the door on any similar legislation for the foreseeable fu-
ture," said Steven Shapiro, legal director of the American Civil Liberties Union. But he said that because
Alito and Roberts "would have left that door ajar, it is always possible that the Court could reconsider its
position if one of the five justices in today’s majority leaves the Court." That "is equally true in any deci-
sion with a five person majority," he said. But he said the court "has a strong institutional presumption
against overruling its own cases unless there are very persuasive reasons for doing so."
Yee conceded at a news briefing in San Francisco that the decision leaves little room for California
lawmakers to write a new bill that could stand up to judicial review. "With the existing court, if we craft
the bill differently, we may be able to get another hearing," he said. He pointed to the two dissenting and
two concurring judges as evidence that there may be an opening to exploit. The concurrence may provide
a path to writing a new law, he said. But with a majority of the court joining Justice Antonin Scalia’s
opinion striking down the law, the prospects for a new law surviving a constitutional challenge narrow.
"When you get a new justice and a new vote, that may be enough," Yee said. If that opportunity arises,
Lee said he expects his colleagues in the California legislature to again support similar legislation
"protecting children."
3. TUESDAY, JUNE 28, 2011 CONSUMER ELECTRONICS DAILY—3
For now, Yee and advocates for restricting children’s access to violent videogames said they are
taking consolation in the fact that the law and the challenge to it have raised the awareness of parents
about the contents of videogames their children play. The game industry will probably increase its vigi-
lance for self-regulating its games in the wake of the court's decision, said George Fouras, a psychiatrist
and member of the American Academy of Child and Adolescent Psychiatry, San Francisco Medical Soci-
ety, after the San Francisco news briefing. "My concern is over time that will lapse and people will be-
come complacent," he said. "A ratings system is fine, but on the sales floor," children are still able to buy
games with graphic depictions of violence, he said.
The Supreme Court declared unconstitutional the California law that would have made it illegal to
rent or sell violent, M-rated games to kids. The law had provided a penalty of up to $1,000 per violation.
Writing for the majority, Scalia said the 2005 law was unconstitutional on First Amendment
grounds, upholding prior decisions by U.S. District Judge Ronald Whyte in San Jose, Calif., and the 9th
U.S. Circuit Court of Appeals. Court rulings "have been clear that the obscenity exception to the First
Amendment does not cover whatever a legislature finds shocking, but only depictions of ‘sexual con-
duct,’" Scalia said in the ruling. California was looking "to create a wholly new category of content-based
regulation" that was designed only for speech directed at kids with its game law, and "that is unprece-
dented and mistaken," he said. The U.S. doesn’t have a tradition of specially restricting kids’ access to
depictions of violence, and California’s claim that games presented special problems due to their interac-
tive nature was "unpersuasive," the majority opinion said. Such a law would be "invalid" unless Califor-
nia could demonstrate that it passed "strict scrutiny" — such as "a compelling government interest" — and
California didn’t meet that standard, the court ruled.
The majority also ruled that any "demonstrated effects" from a connection between exposure to
violent games and harm to kids were "small and indistinguishable from effects produced by other media."
California also failed to show that the law’s restrictions met any alleged need of parents who wished to
restrict their kids’ access to violent games, the court ruled. The game industry’s voluntary Entertainment
Software Rating Board system "already accomplishes that to a large extent," the ruling said. As a method
of helping parents, the law was also "greatly overinclusive" because "not all of the children who are pro-
hibited from purchasing violent video games have parents who disapprove of their doing so."
The majority opinion contained echoes of some of the comments made by the justices in Novem-
ber, during oral argument (CED Nov 3 p1). For example, the majority opinion compared the violence in
games to the violence in classic children’s books. Grimm’s Fairy Tales "are grim indeed," the ruling said.
Scalia had made the same argument during oral argument. Breyer and Alito were among the justices who
pressed Smith especially hard during oral argument. Breyer asked Smith why it wasn’t "common sense to
say that if a parent wants his 13-year-old child" to have an extremely violent game with "no social or re-
deeming value," a state should have the right to tell that parent to "go buy it yourself." In his dissenting
opinion, Breyer said he believed the First Amendment "does not disable government from helping par-
ents" to make sure their kids can’t buy violent games. He said the case was "less about censorship than it
is about education."
Thomas was the only justice who made no comment during oral argument. In his dissenting opin-
ion, he said he didn’t agree that the law was "facially unconstitutional under the First Amendment" be-
cause the right to freedom of speech, "as originally understood, does not include a right to speak to minors
without going through the minors’ parents or guardians" or for minors to access such speech.
4. 4—CONSUMER ELECTRONICS DAILY TUESDAY, JUNE 28, 2011
The MPAA and various other groups praised Monday’s ruling. MPAA Chairman Chris Dodd said
"we applaud the Supreme Court for recognizing the far-reaching First Amendment implications posed by
the California law."
But the Parents Television Council slammed the court’s decision and pledged to "continue holding
irresponsible video game retailers publicly accountable." The ruling "proves" that the Supreme Court
"heard the video game industry loud and clear, but turned a deaf ear to concerned parents," PTC President
Tim Winter said. He claimed the "carefully-worded California statute would not have interfered in any
way with the rights of the creators of adult games or the adults who wish to buy them." He called on the
EMA "to redouble its efforts for increased enforcement of the industry’s age-based vending restrictions."
A House Republican who once introduced videogame violence legislation said it’s wrong to im-
pose regulations like those California proposed. Rep. Cliff Stearns, R-Fla., a senior member of the Com-
merce Committee, had a videogame bill in 2006 that would have required the FTC to make rules requiring
more thorough review of videogames by content raters. But Monday, Stearns said the high court decision
“reminded us that it is the role of parents to select what video games their children purchase and play, not
the government." While Stearns grows “increasingly concerned with the intensifying violence in video
games,” he believes “it is inappropriate to impose on industry broad regulations such as those created in
the California law. ... Instead, I hope the industry will work together to create their own standards so that
minors are protected and parents are educated in what they are purchasing.”
The court’s decision is a big win for media companies in general and may bode well for broad-
casters’ challenge to the FCC’s indecency rules, said Kevin Goldberg, an attorney with Fletcher
Heald. “This may make it very difficult for the FCC to win the indecency case the court also granted
cert on,” he said. The court’s decision to hear the videogame case puzzled some court watchers be-
cause it came on the heels of a similar First Amendment ruling where justices “very emphatically said
they were not going to carve out new categories of speech” that aren’t subject to the First Amendment,
Goldberg said. The California videogame law appeared to be asking the court to do just that, he said.
“But what the court appears to have done is, rather than open that up, it perhaps has even closed other
areas of regulated speech,” he said. — Jeff Berman, Josh Wein, Adam Bender
$18 Per Ticket
Wimbledon to Get First 3D Treatment in Theaters And On ESPN 3D
Tennis fans at cinemas around the world, along with ESPN 3D TV viewers, can see 3D versions of
Wimbledon semifinal and final matches this weekend either on TV or at a smattering of RealD theaters
showing BBC coverage of the events.
ESPN 3D's coverage, which is not live, begins at 8 p.m. Eastern time on Friday with a delayed tele-
cast of the first men's semifinal match from earlier that day. The second men's semifinal match is to fol-
low at 1 a.m. EDT Saturday . The taped ladies' final match is to show a day later, Monday morning at 7
a.m. Eastern, and the men's taped final will follow at 9 a.m. Eastern Monday, according to an ESPN
schedule. Re-airings of semifinals and finals will run throughout Monday, said the ESPN website.
ESPN's 3D window coverage mirrors its rights on 2D, a company spokeswoman told us. There's no
match coverage of Wimbledon for ESPN on Sunday, she said. ESPN is not producing the Wimbledon
coverage but is using a feed provided by BBC, she said.
5. TUESDAY, JUNE 28, 2011 CONSUMER ELECTRONICS DAILY—5
SuperVision Media, Sony's distribution partner for Wimbledon, said Monday that Wimbledon
men’s semifinals will be broadcast live on Friday beginning at 1 p.m. British Summer Time (8 a.m. EDT)
to RealD theaters in Europe, Asia, North America and South America. The women's final is scheduled
for broadcast on Saturday at 2 p.m. BST (9 a.m. EDT) and the men's final will be broadcast on Sunday at
2 p.m. BST (9 a.m. EDT), it said.
We counted roughly 50 theaters on a Sony theater finder posted on the Wimbledon website that
directed tennis fans to theaters in their countries showing the semifinal and final matches in 3D. In the
U.S., AMC, Cinemark, National Amusements, Regal and Rave are the primary chains listed for Wimble-
don showings in a diverse range of cities including many smaller markets such as West Des Moines, Iowa;
Destin, Fla.; and Spring, Texas. There were no cinemas listed for major cities including New York,
Washington, Atlanta, St. Louis, Detroit or Minneapolis. The states with the highest penetration of 3D
cinemas set to show Wimbledon matches were California, Florida and Texas. RealD operates more than
8,600 3D screens in North America, according to its website.
RealD spokesman Rick Heineman said movie theaters set their own prices for the Wimbledon
event that's scheduled for a four-hour run. A spokeswoman at the AMC River East 21 cinema in Chi-
cago said all Wimbledon tickets for Saturday and Sunday viewings would be $15 each, compared with
standard ticket prices of $11.50 for adults, $10.50 for seniors and $8.50 for children. Tickets are also
available for $15 at the Garden State AMC theater in Paramus, N.J., where the event begins at 9 a.m. A
Wimbledon 3D ticket will cost fans $16 at the Cinemark Mesa in Mesa, Ariz., for a 6 a.m. showing.
The priciest ticket we found was at Edward's Long Beach Stadium 26 in Long Beach, Calif.: $18, ac-
cording to the website. In comparison, "Cars 2" in IMAX 3D at the same theater runs adults $18.50,
kids $15.50, according to the website.
A retractable roof was installed at Wimbledon's Centre Court in 2009, after the men's finals match
the previous year between Rafael Nadal and Roger Federer had been delayed twice by rain. But other
courts at Wimbledon aren't protected and are subject to washouts. We asked RealD's Heineman what con-
tingency plans are for theaters planning to show the events live in 3D in case of a schedule change caused
by weather delays during the course of the week. "While rain delays are a possibility, the expectation is
that these events will be shown live at participating theaters," he said. — Rebecca Day
Final Rule Published
Active-Mode Testing Among Changes To DOE Battery Charger Test Procedure
The Department of Energy made changes to its test procedures to measure energy use of battery
chargers and external power supplies, incorporating in some cases elements from the California test proce-
dure. In a final rule published in the Federal Register, the department introduced an active-mode energy
consumption test procedure for battery chargers, which it said is needed to develop energy conservation
standards for the devices. The department also modified portions of its existing standby- and off-mode
battery charger test procedure by decreasing the testing time.
The DOE’s 2009 battery charger test procedure didn’t measure energy use in all modes. It ex-
cluded the energy consumed by the device while charging a battery, measuring only the energy use in
standby mode, when no battery was charged, and off mode or inactive mode. With the introduction of the
6. 6—CONSUMER ELECTRONICS DAILY TUESDAY, JUNE 28, 2011
active mode, the inactive-mode testing will be removed, the department said. The DOE’s active-mode
testing is based "in large part" on the test procedure adopted by the California Energy Commission (CEC),
it said.
But the DOE changed the CEC’s active-mode testing to "decrease the overall testing burden faced
by manufacturers," it said. It has done that by "increasing the procedure’s clarity," using terms "consistent
with other DOE rulemakings and dividing more complex procedures into simpler, discrete steps for test-
ing technicians to follow," the department said.
The DOE is now requiring a 30-minute warmup period followed by a 10-minute energy measure-
ment time for battery chargers. The earlier measurement period was one hour. This change harmonizes
the DOE’s methods with the CEC test procedure, it said, with the aim of producing "a less burdensome
procedure while preserving testing accuracy."
The DOE changed the single-voltage external power supply test procedure to accommodate
power supplies with USB outputs and other supplies that can’t be tested with the current procedure, it
said. The department debuted a test procedure for multiple-voltage external power supplies. The new
test procedures for battery chargers and power supplies are effective July 1, the DOE said. After Nov.
28, "manufacturers may not make any representation regarding battery charger or external power supply
consumption of efficiency unless" the devices concerned are tested under the new procedures, the de-
partment said. — Dinesh Kumar
Narrowing Margins
Some Front Projector Suppliers Pulling Back from Brick and Mortar Retail
The field of business-oriented front projector suppliers selling product at brick and mortar retail is
narrowing with the departures of NEC, Sanyo and Sharp amid shrinking profit margins. All three manu-
facturers were early promoters of the technology at retail, with Sharp being among the first to field a sub-
$1,000 model at Costco, while NEC models were once Black Friday promotional fodder for Best Buy.
But the suppliers have pulled back from retail amid narrowing margins brought on by increases in market-
ing expenses, leaving the field open for Epson, Optoma, Viewsonic and others.
Some manufacturers like Sanyo have moved their retail business online (CED June 17 p3) to deal-
ers like CDW, while Sharp hasn’t ruled out a return to store shelves if conditions change. Part of the rea-
son for the shifting strategies has been pricing, with an entry-level front projector with 800 x 600 resolu-
tion dropping below $400. TigerDirect.com Monday was promoting a Viewsonic PJD5123 3D-ready
front projector with 800 x 600 and 2,700 lumens at $349. It had a Viewsonic PJD5223 front projector
with 1,024 x 768 resolution and 2,700 lumens at $449.
"It’s a very tough place to make a profit, and right now it is a declining area, but things could
change in the future," said Bruce Pollack, Sharp assistant marketing director in the professional display
division. "We still have a lot of things at retail and maybe at some point our factory will come up with
something that is new and unique that fits right there and we will still have the contacts."
Some retailers recently brought on business-oriented front projectors, including Abt Electronics,
which started selling Optoma models online two months ago, General Manager Philip Hannon said. But
7. TUESDAY, JUNE 28, 2011 CONSUMER ELECTRONICS DAILY—7
Abt didn’t add conventional business front projectors, opting instead for the PK301 pico-projector ($399)
and the Neo-I, which combines a projector with an iPod docking station ($449). "It’s rounding out that
service and a lot of customers want to be able power the projector off their laptops and make it very port-
able," Hannon said. "The way the Internet business is it makes sense to venture into this category."
As Sharp pulled back from bricks and mortar retail, it introduced two new front projectors for busi-
ness distribution with a built-in ceiling swivel mount, allowing it to rotate 180 degrees to allow for
changes in room configurations. At the recent Infocomm trade show in Orlando, Sharp demonstrated the
models with 109-inch and 96-inch screens installed in opposite directions. The projectors rotated between
the two screens within 30 seconds every four minutes, using keystone correction and lens settings saved in
the model’s flash memory. Up to eight settings can be saved, company officials said. The XG-SV100
features a 0.7-inch DLP chip with 1,280 x 800, 4,500 lumens, 2,000:1 contrast ratio and 10-watt audio
system, while the XG-XV200X has a 0.65-inch DLP chip with 1,024 x 768 resolution and delivers 5,000
lumens. The models, which have USB 2.0 and RS-232C connectors, ship in Q3.
On the business side, Sharp has no immediate plans for a model similar to the company’s XV-
Z17000 home theater projector (CED Sept 24 p1) that features a 0.65-inch DLP chip with 1,920 x 1,080
resolution, but has 1,600 lumens, well short of commercial requirements for 4,000 to 5,000 lumens, said
Les Burger, senior product planning manager. A high-brightness version of the projector isn’t expected
on the business side for about a year, Burger said. The XV-Z17000 has so far sold in "small" quantities,
he said.
"The projector is expensive to build and until the price of the chipsets comes down, it is over-
priced for our market," Burger said. "The 1,600 lumens range is fine for home theater, but no one would
accept that" for business applications. — Mark Seavy
Industry Notes
The FCC should allow further CE advances by implementing the 21st Century Communications
and Video Accessibility Act in a way that "balances" increased advanced communications service (ACS)
accessibility with companies' needs, CE manufacturers said. Congress intended to "narrow the scope of
the statute" in the actual legislation, from what was in the originally proposed bill, CEA said in a filing
Friday in docket 10-213. It asked the commission to "narrow the proposed informal complaint process" to
focus on dealing with complaints. Amazon.com, Apple, Panasonic, Samsung and Sony were represented
at one or both meetings last week with aides to FCC Chairman Julius Genachowski and to Commissioner
Michael Copps, CEA recounted in an ex parte filing. Advocates for people with problems seeing want
ACS exemptions to be few and narrow, they said in replies in the docket (CED May 25 p5).
Components & Devices
Porsche Design Group and LaCie added aluminum-wrapped mobile and desktop hard drives to
their electronics line. The aluminum regulates heat for "guaranteed performance" and is 100-percent recy-
clable, the companies said. The mobile drive comes in 500-gigabyte and one-terabyte capacities, and a
750-gigabyte model will be available exclusively in Porsche Design Stores. The desktop drives come in
one-terabyte and two-terabyte capacities, the companies said. Products will be available through LaCie's
online store, Amazon, B&H Photo, Best Buy and Micro-Center starting at $104.99, LaCie said.
8. 8—CONSUMER ELECTRONICS DAILY TUESDAY, JUNE 28, 2011
Companies
The ZigBee Alliance said it opened two offices in China to drive greater ZigBee adoption there
and to address ZigBee standards to meet needs of the China market. Jerry Huang was named director of
ZigBee Asia Pacific and will oversee the offices in the Sensing China Center in Wuxi and in Zhongguan-
cun Science Park in Beijing, the alliance said. According to Bob Heile, ZigBee Alliance chairman, Zig-
Bee's standards for wireless sensor networks will be key enablers for China's future RFID-based Internet
of Things.
Trends
E-reader ownership since last November doubled and tablet ownership growth slowed, said a
study from the Pew Internet & American Life Project. The share of American adults who own an e-reader
doubled to 12 percent in May 2011, from 6 percent in November 2010, the study said. “In May 2011, 8
percent of adults report owning a tablet computer such as an iPad, Samsung Galaxy or Motorola Xoom.”
About 7 percent of adults reported owning tablets in January, the study said. E-book reader and tablet
computer adoption levels among U.S. adults “are still well below that of other tech devices that have been
on the market longer.” Cellphones are the most popular digital device, followed by desktop and laptop
computers, DVRs, and MP3 players, it said. Pew did the survey April 26-May 22, and more than 2,200
adults completed it, Pew said.
Videogames
The core gamer segment of the market is "facing rising competition" from the digital gamer seg-
ment for the amount of time spent playing games and the number of games acquired, NPD said Monday.
Core gamers have been considered the leading gaming segment within the videogame industry and, at 18
hours a week, they still spend the most time gaming, NPD said. But it said digital gamers are also heavy
gamers, spending 16 hours a week gaming. The average number of games bought or downloaded for free
by core gamers in the past three months was 5.4, while digital gamers were the heaviest game acquirers,
reporting an average of 5.9 games acquired for any system or device over the same time period, NPD said.
Among those who acquired at least one digitally downloaded game, digital and core gamers "stand out
with the highest number of digital games purchased," NPD said. In both segments, more than 33 percent
of the total games acquired were digital, it said. Core gamers represented the largest number of gamers, at
23 percent, followed by family and kids (22 percent), avid PC gamers and light PC gamers (15 percent
each), mobile gamers (13 percent) and digital gamers (12 percent), NPD said. "Gamers are increasingly
branching out to methods of play other than those that the industry has traditionally expected them to use,"
said NPD analyst Anita Frazier. "Fueled by the growth of smartphones and new tablet devices, mobile
gaming continues to accelerate," she said. The data was based on a U.S. survey in February and March,
with 8,214 people ages two and older responding to NPD’s survey, it said. Responses from kids under 13,
as well as some 13-15 year olds, were captured via "surrogate reporting, where the parent answers on be-
half of the child," NPD said.
——
Zumba Fitness for the Wii, Xbox 360 and PS3 remained the best-selling game in the U.K. its 13th
week available as sales grew 33 percent from the prior week (CED June 21 p7), according to the Associa-
tion for U.K. Interactive Entertainment (UKIE) Games Charts compiled by GfK Chart-Track for the week
ended Saturday. The vast majority of sales for the Majesco Entertainment title, published by 505 Games