A couple of weeks ago, we posted word that recent Atari acquisition Cryptic Studios was working on breathing life into several Atari legacy titles. Now we’ve got a few more details to share.

Sources tell us that the developer is working on a massively multiplayer online (MMO) version of “Neverwinter Nights” with an eyed 2011 release.

Details about the project are unavailable, naturally, as it is an unannounced title. But this reportedly was the primary reason Atari was interested in acquiring Cryptic late last year. (The developer is currently working on “Champions Online” and “Star Trek Online”.)

Based on the third edition Dungeon and Dragons rules, “NWN” is a well-loved franchise. The first installment of the role-playing game was developed by fan-favorite Bioware in 2002. A sequel, developed by Obsidian Entertainment, came out in 2006 to slightly less favorable, but still solid, reviews.

Part of what made the game unique was its robust multiplayer component. Many players built persistent worlds, capable of hosting up to 75 players – in essence, mini MMOs of their own.

The new game represents a very big bet for Atari – perhaps as big as the company’s continued existence.

While the cinematic version of “The Matrix” had the stylized feel of a AAA video game, its gaming companions never quite worked.

On July 31, the most ambitious of those tie-ins, “The Matrix Online” will jack out for the last time, as Sony Online Entertainment pulls the plug on the game.

To its credit, the massively multiplayer online game lasted four years, which is more than most people expected at launch. Initially developed by Monolith and published by Sega, the game was quickly met with mediocre reviews. 

SOE took over publishing rights a short while later, which likely saved it from a much earlier shutdown. The game eventually became part of SOE’s Station Access package (letting players have subscriptions to several MMO games for a single monthly payment).

Sony declined to comment about how many people are still playing the game these days, citing its policy against releasing subscriber numbers. (That’s a flexible policy, incidentally. The company has been touting “Free Realms” user base loudly of late – and bragged about “EverQuest” players back in the day.)

It’s frustrating that “The Matrix” never became a strong gaming franchise. Both “The Matrix Online” and the film’s single-player titles fell far short of expectations, despite having hefty development budgets. (“Enter the Matrix,” an single-player game that is unaffiliated with "The Matrix Online," reportedly cost over $30 million to create, making it one of the most expensive games ever developed at the time.)

Maybe it was comparisons to the movie’s stylish feel. Maybe the plot was thinner when played out in long form. Or maybe the games just stunk.

Whatever the reason, we’ve now learned how far the rabbit hole goes – and where it ends.

Gazillion sure knows how to make a splash. The MMO (massively multi-player online game) publisher has been operating in stealth mode for three years, putting together a collection of development studios and signing one of the biggest video game licensing deals in recent memory: A 10 year pact with Marvel giving it exclusive rights to make MMOs based on every single character in the comic book publisher's library.

It already has two Marvel MMOs in the works: One is a casual game based on the "Super Hero Squad" kids property that's coming as a TV series on Cartoon Network and a THQ console game later this year; and "Marvel Universe," a rebooted version of the AAA game that Microsoft canceled (leaving developer Cryptic Studios to turn its work into the upcoming "Champions Online").

So what the hell is Gazillion? In a nutshell, it's private equity backed -- I'm not sure how much, but you can assume it's substantial, well into the tens of millions if not more -- and it has four major MMO development studios under its umbrella and eight projects either planned or in the works:

-NetDevil, which Gazillion recently acquired, already has "Lego Universe" and "Jumpgate Evolution" in development, along with an unannounced MMO. The Lego Group controls its eponymous game and will handle publishing. But Gazillion got the rights to "Jumpgate" when it acquired NetDevil and will co-publish it in the U.S. with Codemasters, which is handling retail distribution.

-Gargantuan, a studio founded by Gazillion, is making "Marvel Universe."

-Slipgate Ironworks, started by id co-founder John Romero, which Gazillion has quietly been involved in from the beginning. It's producing an unannounced original MMO.

-Amazing Society, another existing studio that Gazillion has quietly been working with from its inception, is developing the "Super Hero Squad" MMO and two unannounced titles.

Founder and CEO Rob Hutter (left) knows that MMOs are a huge risk. But in a down economy when traditional console publishers in particular are struggling, he sees it as the biggest opportunity, particularly when combined with licenses.

"We saw the meteoric success of 'World of Warcraft' and now more casual titles like 'Runescape,' 'Club Penguin' and 'MapleStory' are proving the format really has traction," he explained. "The missing piece is bringing worldwide dominant entertainment brands into the space in a way that delivers high quality MMOs with properties that have a tremendous amount of recognition."

Though it has literally hundreds of little casual games on its websites, Cartoon Network was late making its big splash in online gaming the way Disney has with "ToonTown," "Pirates of the Caribbean Online," "Pixie Hollow," and Nickelodeon has with "Neopets" and "Nicktropolis." But the cable network has finally launched its piece de resistance for its target audience of young boys and Variety critic Leigh Alexander, who knows something about young boys (I couldn't help it; Sorry Leigh!), says in her review they're the first big media company to do a true MMO (not a virtual world) for kids. She calls it "a 'World of Warcraft'-lite game that's the first [online game from a kids' cable network] to approach the quality, playability and potential for mass appeal of its older-skewing brethren."

 Leigh's particularly impressed by the action, the smooth learning curve, and the way the game brings together many disparate Cartoon Network shows with a unique visual style:

She also likes the sizable amount of free content the game offers. Though there are plenty of reasons to pay, this isn't one of those scams designed to make kids miserable who can't get Mom or Dad to cough up the credit card.

Though the controls and navigation leave a bit to be desired, Leigh's only real complain comes in the second "M" in "MMO." Cartoon Network apparently played it so safe protecting kids from predators, or saying bad words to each other, that there's no strong opportunity or reason to play together, or even talk and make friends.

Full review: FusionFall

In today's Daily Variety comes news that "Pirates of the Caribbean" director Gore Verbinski, who is (gamers hope) busy developing a "Bioshock" movie, has optioned a second game-related project. This one isn't quite the stuff of gamers' dreams, though. It's based on an article from the Wall Street Journal and described by reporter Michael Fleming as follows:

The article by Alexandra Alter focuses on a married man who spends as many as 20 hours a day on a computer, existing through an avatar who is a thriving, musclebound entrepreneur. In reality, he is a diabetic, chain-smoking 53-year-old.

Apparently Verbinski and writer Steven Knight (who has some very classy credits like "Eastern Promises" and "Amazing Grace") hope to make a film "about the online fantasy role-playing world and its detrimental impact on the real lives of players."

OK, so gamers probably hope to see the more positive side of their lives portrayed. But it is a real side to MMOs. I actually knew a couple who broke up in part because of dozens of hours per week one person spent in "World of Warcraft" (I suspect that was a symptom of their deeper marital problems of course, but still).

So long as the movie (should it actually get made) portrays gamers as real people, not social misfits, I think it's a good thing. The identity split that comes when you spent more life as your avatar than yourself makes for interesting drama. It's a real problems some gamers face. Just as movies sometimes show the downside of professional sports and politics and other respected parts of modern life, gaming can and should get the same treatment. Mass media doesn't have the best track record of doing so respectfully, but it's worth hoping, especially since Verbinski, based on my conversation with him about "Bioshock," seems like someone who respects videogames.

At the least, it's a good thing that Universal (where Verbinski has a first look deal as a producer) thinks a story about MMO playing has the potential to be commercially succesful.

Full story: Universal, Verbinski plan to role-play

When a company finances a major purchase entirely with debt, it's making a big bet.

It's an indication of how key Atari (well technically its parent company Infogrames, but let's just say Atari for simplicity's sake) thinks Cryptic Studios is to its future that the resurgent, but still cash poor, publisher is financing the acquisition entirely with bonds.

I'm not sure exactly how much the bonds will be, but based on Infogrames' public filing, they should total at least $40 million (31 million Euros), which will be used to pay back a bridge loan that will immediately finance the acquisition, as well as Cryptic's working capital needs and an old loan Atari needs to pay back (oops!).

Meaning that Atari needs Cryptic to be successful and generate cash if it wants to pay back those bonds and avoid an awkward Midway-like situation.

So what Cryptic need to do to succeed for Atari? Well, there's "Champions Online" next year, but it's unclear whether Atari will even publish that, since 2K originally signed on for that job (a 2K rep told me "discussions aren't finalized" on that point). If Atari doesn't publish it, all it will have is Cryptic's royalties if the game performs well. Then there's 2010's "Star Trek Online," for which it'll have to pay royalties to CBS, meaning the margins are smaller than for an original MMO (though perhaps the chances for success are greater). And of course there's the inevitable "unannounced game" in the works.

That's a decent slate, but MMO's are very risky propositions. They usually lose money (paging "Age of Conan," "Matrix Online," etc.) and very rarely turn into big successes. Even "City of Heroes/Villains," the games on which Cryptic made its name, had a relatively modest 180,000 subscribers at their peak (about 1.6% of "World of Warcraft's" subscriber base). If even one of these games hits it big, especially one Atari publishes, it could be in very good shape. But those aren't great odds. (Cryptic's revenues were $17 million in the year ending June 30, but Atari didn't report how much the developer made or lost).

The other benefit Atari is counting on is Cryptic's technology, which it says will "reduce development risks for future online games developed internally and improve margins due to the low cost structure of the Cryptic engine’s technology and tools."

That's a big sign, much bigger than any of the statements Phil Harrison and David Gardner have made, that online gaming is really at the heart of the company's future. Though "Ghostbusters" and the other games Atari is picking up / announcing should help along the way.

Blizzard's new "World of Warcraft" expansion "Wrath of the Lich King" manages to provide experienced players with grand, polished, compelling new content they'll love, while also giving new players good stuff they can enjoy without grinding for hours, reports Variety critic Gus Mastrapa (who kindly and ably pinch hit for us as a "WoW" specialist).

"The Death Knight’s versatility as a damage dealer, armored bruiser, magic user and necromancer will make it quite popular, especially to veteran players who have tried and tired of all the other classes," he says, pointing to the new class that lies at the heart of the expansion.

The content isn't quite as varied as last year's expansion "The Burning Crusade," but "Lich King" makes up for that through sheer grandeur. "Areas feel more sprawling and quests frequently allow players to take to the air atop dragons, airships and player-controlled fighter planes," he notes. "The landscape appears more organic than in the past and new graphical flourishes like real-time shadows add emotional resonance."

As a "Warcraft" virgin, however, I was most intersted in, and impressed by, Gus's description of how the game manages to satisfy the 11 million-plus existing players, while still opening things up for millions more to get addicted:

In the game’s early days, most “World of Warcraft” players experienced major plot points from the periphery only, toiling in obscurity while hardcore devotees earned the glory, witnessed the coolest content and reaped the greatest rewards. “Wrath of the Lich King” continues a recent trend away from that elitism, letting the average punter cross paths with the story’s major players and writing them into several run-ins with Arthas himself as they explore Northrend...

The hardcore, however, are still amply served. An entire new zone, Wintergrasp, is dedicated to massive player-vs.-player battles involving new siege weapons like catapults, steampunk tanks and player-piloted flying machines. Endgame dungeons like the floating necropolis of Naxxramas challenge 10- and 25-player teams with intricate, drawn-out boss battles.

Suffice it to say, it's no surprise "Lich King" sold 2.8 million units its first day and it looks like the "Warcraft" addiction express won't be slowing down soon if Blizzard keeps up this level of quality.

Full review: Wrath of the Lich King

One thing I most certainly don't have right now is the time to invest in a MMO. So opening my brand spanking new shrink wrapped editions of "World of Warcraft: Wrath of the Lich king Collector's Edition" and "Lord of the Rings Online Collector's Edition" would be a total waste. Especially when there are Cut Scene readers who would probably go crazy for this stuff.

So, it's my Thanksgiving giveaway. First, for those who don't know, here's exactly what you get in each:

-Wrath of the Lich King collector's edition: the game for PC or Mac; behind-the-scenes DVD (developer intervieews; cinematic with commentary, etc.); 208 page "Art of Wrath of the Lich King" book; "World of Warcraft" trading card game starter pack and exclusive cards; Northrend mouse pad; exclusive in-game pet: Frosty, the undead dragon.

-Lord of the Rings Online collector's edition: Original "Shadows of Angmar" game and the "Mines of Moria" expansion pack; 30 days free play; 3 in-game item tokens; "Mines of Moria" cloth map; gold plated replica of "the one ring"; "LOTRO" art and music compilation; starter guide; "and more!" (hey, I'm just reading the back of the box)

Want to win? Leave a comment with the following:

-Which game you want (you can't ask for both, or just "either one")

-Tell me why you want it. Are you a "Warcraft" lover who can't afford "Lich King" right now? Is there a "Lord of the Rings" fanatic in your life who needs an awesome gift? Be sure to make a compelling case for why you deserve it

-Tell me, briefly, why you read the Cut Scene and what your favorite post, or type of posts, have been. There's no wrong answer. "I enjoy laughing at your pathetically bad writing" is even OK. It's just my way of trying to make sure the winners are people who regularly read this blog, not folks who just dropped in for the contest.

I'll pick the winners on Monday based on who followed the rules and made the most compelling case for they they deserve the game.

Just a reminder, you can't win if I know you or if you've won a Cut Scene giveaway before.

If you're mounting a challenge to the most (financially, at least) successful videogame of all time, you need at least one big innovation to stand out. EA and Mythic Entertainment's "Warhammer Online" has that, according to Variety reviewer Tom Chick, in the form of easy and pervasive social elements, As Tom writes:

In most MMOs, these "player vs. player" activities tend to be the stuff of the endgame, accessible only to those who have spent literally hundreds of hours leveling up their characters and winning powerful magic items. They tend to require an intimate understanding of the gameplay mechanics and class balance, and often a regular group of dedicated players. But in "Warhammer Online," it's a pervasive part of the gameplay, slickly built to be accessible and constant, whether a player logs on for five, 15, or 50 hours a week.

There are plenty of solo missions, but many are designed to throw players into the fighting or cooperative missions where players join forces against computer-controlled enemies. In either case, it's easy to join via an "open group" panel, which shows nearby gatherings that aren't yet full. This is a much more inviting way for players to help each other than the typical MMO system of having to find a group by typing into the chat channel esoteric acronyms like "WH14 LFG T2 Bos".

The other thing a major new MMO has to do is draw in new players and turn the into addicts. After all, if you want people to pay $15 per month indefinitely, your game has to basically be like crack to them. According to Tom, that's exactly where "Warhammer Online" slips up:

Instead of quests moving players along a single track of advancement, there are multiple ways to advance on multiple progress bars. There are influence, renown, masteries, morale, tactics, chapters, tiers, SCs, PQs, RvR, and BOs. It's easy enough to puzzle out eventually, and it'll prove particularly gratifying to long-time MMO players eager to sink their teeth into a meaty new game. But the steep learning curve will alienate some people who would more easily take to "Warcraft."

You can read Variety's entire review of "Warhammer Onine" right here.

Interesting news from Variety's Asia bureau chief Patrick Frater...

Apparently Electronic Arts is turning "NBA Street" (which isn't even an ongoing brand in the US anymore) into one of those free-to-play online games that seem to be all the rage in east Asia. Patrick reports that they've already had success doing the same thing with "Fifa." And they've got high hopes (natch) for the just launched "Warhammer Online."

I had no idea EA was doing such territory specific things with its brands.

In late 2006, I reported on a virtual worlds development company Multiverse's plans to turn the short lived sci-fi series "Firefly" into an MMO. Apparently that hasn't gone too well, but Multiverse is trying again with a new, much better known Fox TV property, "Buffy, the Vampire Slayer," according to this report on Massively.

Though it's arguable whether an MMO based on any defunct property makes sense ("The Matrix Online," anyone?), "Buffy" is certainly much bigger and more marketable than "Firefly," given that it lasted for seven seasons and the tie-in comics at Dark Horse are currently best sellers. It has a better chance of not only drawing players to Multiverse  but industry attention to its virtual worlds platform, which is where the company is really hoping to make its money.

Many "Buffy" fans (in fact, all but two of the "Buffy" fans I know) are women, so Massively will have a challenge to get them playing a game as immersive as an MMO, traditionally mostly male territory. It looks like Multiverse is trying make the game more casual, with the somewhat bizarre assertion that the "Buffy" MMO will "exemplifies a new era of game design, allowing consumers to play it either as a fully immersive 3D environment or as a Flash-based 2D game." A Flash-based 2D MMO? That's certainly different. Even "Club Penguin" is 3-D.

Multiverse is also planning a "virtual interactive learning experience" tied to "Titanic" that uses some of James Cameron's own footage and computer models. Which of course makes perfect sense since Cameron is on the company's advisory board. In fact, as I reported at the time of the "Firefly" deal, he's the one who connected the company with Fox in the first place.

Time Warner's recent lead role in a recent $40 million investment round for Turbine Entertainment is already bearing fruit. The conglomerate's Warner Bros. Interactive Entertainment videogame publisher has landed distribution rights for "Mines of Moria," the first retail expansion to Turbine's "Lord of the Rings Online." Apparently investing tens of millions of dollars and becoming a major equity holder makes it easy to influence Turbine to leave its former publisher Midway and switch to WBIE.

Given that Warner Bros.-owned New Line made the "Lord of the Rings" films and is co-producing the upcoming "Hobbit" movies, there's some obvious synergy here for the studio. If "LOTRO" stays alive by the time the first "Hobbit" film comes out in 2011, I think we can expect Warner Bros. to take that opportunity try and use that opportunity to boost the game.

(On the right is concept art from the "Moria" expansion)

Regular Cut Scene readers know I wasn't at Comic-Con. But Variety film reporter Marc Graser, who has covered tech and videogames in the past and is a specialist in comic book-based films, did go and spent some time checking out Sony Online Entertainment's upcoming "DC Universe Online." Here's his report:

Sure, everyone knows how big “EverQuest” was for Sony Online Enertainment. But if you weren’t into fantasy games, you probably weren’t likely to invest hours playing it.

Now that "Everquest" has faded and Blizzard's "World of Warcraft" owns the massively multi-player online role playing game crown,

have the answer.

Together with DC Comics and Warner Bros. Interactive, company had its first public preview of "DC Universe Online" at Comic-Con, showing off the game with several playable stations on the confab’s show floor, a panel about the game, and party.

In the game, players create their own superhero that fight alongside Batman, Superman and other well-known DC heroes to fight off villains, or create their own super villain to fight on the side of Joker, Lex Luthor et al.

Characters were easy to control, with mocked up superhero newbies flying around the screen or grabbing objects like cars or buses to throw at villains. Creating the characters seemed just as simple: Cape? Check. Tacky blue spandex? Got it. Lightning fast running abilities? Done. Based on the characters showing up at Comic-Con, though, some Marvel fans may look to create mischief in the DC  Universe. Many of those on the demo screens looked like a member of the X-Men.

Graphics on a PlayStation 3, were crisp and colorful, with environments mimicking the look of a comicbook or Saturday morning cartoon.

That shouldn’t be too surprising. Game's visuals are being overseen by iconic comicbook illustrator Jim Lee, the creator of “WildC.A.T.S.” who has worked on “Batman,” “Fantastic Four” and “Superman” and serves as the game’s executive creative director. Characters are based on his artwork.

Most importantly for a subscription based game, "DC Universe Online" looks addictive. What makes it work so well is that it’s been designed as a hybrid between a traditional massively multi-player online game and a traditional console actioner. That was the plan by SOE and they appear to have pulled it off.

Korean videogame giant Nexon has brought its latest free-to-play MMO to the U.S., "Mabinogi." Variety's Tom Chick isn't too impressed. In his review we just posted, he writes:

The latest arrival in the Korean invasion is "Mabinogi," a massively multiplayer online game (MMO) from Nexon, the folks behind "Maple Story" and "Kartrider." These games are built around cute graphics, challenging gameplay and a presumably "free to play" business model. Although they've been wildly successful in Asia, they're struggling to find an audience in North America. With its unforgiving difficulty, unfriendly interface and annoying incentives to make players pay, "Mabinogi" is a perfect example why.

What's particularly interesting is that while the game is full of anime-style children, "after several hours, the average player will hit a brick wall." But Tom also notes that "a player who wants a better magic skill has to cast a certain number of spells, whereas a player who wants a better fishing skill has to catch a certain number of fish. The refreshingly simple DIY system is essentially 'Do what you want to do and you'll eventually do it better.'"

You can read the whole thing right here.

As part of its presentation to analysts today, Take-Two Interactive presented a few "potential untapped opprtunities" in markets it hasn't yet entered, including MMO's and mobile, as well as licensing to "traditional" media or, I assume, producing itself.

On a slide that was part of its presentation, which I copied above, it even named some potential names, noting that "Bioshock" and "Civilization" could both make great MMOs and that "Bioshock" and "Carnival Games" could work as mobile games.

These are only possiblities, of course, and not reason for fanboys to start clearing space on their hard drives or buying a powerful new phone. Given the way analyst presentations work, I take it as more Take-Two demonstrating to those in attendance that it can move into these markets if/when it is ready, because it has properties that would translate well. It's not a hint that the "Bioshock" MMO is actually in development.

As for the "Bioshock" movie, that should be a big "duh" to Cut Scene readers. As I wrote last month, "Take-Two has been bombarded with  requests from producers and studios interested in obtaining the rights, agents interested in representing them, etc." The only question is which big name is going to get the rights. And whether Take-Two will try to get commercially/creatively involved itself, possibly investing its own money.

Also of note: Executive Chairman Strauss Zelnick said that online play is becoming increasingly important. "Not all of our games have been multi-player," he noted. "Going forward, the bulk of them will be."

My immediate thought? I can't wait to play "Bioshock 2" online multi-player next year. I want to be the Big Daddy.

It was over four years ago, when I was a young reporter just starting at Variety, that I broke one of my first big videogame stories: Perpetual Entertainment had secured a license from Viacom to create a "Star Trek"-based MMO. I confidently asserted -- based on what Perpetual told me, of course -- that the game would be coming in "early 2007."

Not so much, as we now know. Not only did 2007 come and go, but Perpetual appears to have gone out of business following rumors that it would be acquired by a media company.

It wasn't clear what would happen to "Star Trek Online" -- whether so much work had been done on the game that somebody would inevitably buy it and make it happen, or whether the main reason Perpetual went under is that the project was going tragically wrong and was better left to die.

Now, via Wired's Game/Life, it appears that "Star Trek Online" ain't going away. The game's homepage has a new graphic: a simple federation logo with the words "coming soon" underneath. Game/Life speculated that "City of Heroes" maker Cryptic may have taken on "STO," which would be a very good sign for the project's future. But right now, we don't know.

On the one hand, it might be good timing to make "Star Trek Online" happen. At the time I wrote my story, the folks at Perpetual had to argue that the game would be relevant even with the franchise running out of steam. But in May of '09, Paramount will be trying to revive it with the new movie directed by JJ Abrams. That would obviously be a great time to launch "Star Trek Online."

On the other hand, as "World of Warcraft" continues to kick ass and take names, it's a very tough time to launch a new MMO. Especially a licensed one. Just as Warner Bros. about "The Matrix Online" or Microsoft about "Marvel Universe Online."

(PS Sorry for the awful headline, but I'm a major "Star Trek" nerd. I can't help myself. And as a major "Star Trek" nerd, I have to say that if this game ever sees the light of day, it will probably be the first MMO I ever play.)