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Sky Games Continues Recent Testing

Sky Games has a contract with Singapore Airlines to install its interactive inflight entertainment (IFE) gaming product. According to a release from the company, it states, "The new generation of interactive IFE systems are significantly more complex, both technically and logistically, than the IFE systems currently in use on most international carriers."

The company notes that this has resulted in frustrating delays in delivering the final commercial product to airline customers. Sky Games is working with Matshushita Avionics, the leading provider of IFE hardware, in the final testing process in Irvine, Cal. prior to installation of operational gaming on Singapore Airlines in 1997.

According to Laurence Geller, chairman and recently appointed CEO, the market for interactive IFE appears promising. He explained: "Interactive IFE has the potential to replace current passive systems, and a portion of the expected profits generated by video gaming could enable airlines to offset the costs of installing and running these Generation III IFE systems, which offer a range of entertainment such as video games and movies.

"IFE gaming could give international airlines a significant potential revenue source in a highly price-competitive industry. The U.S. Department of Transportation has estimated that IFE gaming would produce annual revenues of $480 million for foreign carriers, based on Dept. of Transportation estimates that 18 percent of passengers would use IFE gaming.

"We have seen estimates that use of IFE gaming by non-U.S. travelers could be significantly higher than 18 percent, particularly in the Asia-Pacific market, where gaming has a particularly high level of acceptance," noted Geller.

Geller explained that growth in international flights is spurring boom in construction of wide-body jets, on which interactive IFE systems would most commonly be installed. He added that some analysts are estimating that the worldwide installed seat base will grow from 1.8 million in 1995 to 2.2 million by 2000 and that on Asia-Pacific airlines, average seat capacity per aircraft will grow to 350 seats by 2014, compared with 243 today -- a figure already much higher than the world average of 179.

Currently, U.S. law prohibits wagering on flights originating in or destined for the United States, but is allowed on virtually any flight outside the U.S. However, international and overseas flights account for a significant percentage of all revenue passenger miles flown each year. Industry estimates call for international flights to grow at a faster rate than domestic U.S. flights, due to rapid growth in population and business- related travel, particularly in the Pacific Rim nations.

Sky Games, through its operating subsidiary Interactive Entertainment Limited (IEL), has a strategic partnership with Harrah's Entertainment Inc., a worldwide leader in gaming and entertainment. Harrah's owns a 20 percent stake in IEL and manages the operations of IEL.
Source: PR Newswire

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