4Kids Launches Trading Card, Online Gaming Companies

NEW YORK, December 11: 4Kids Entertainment has launched two new subsidiaries, one targeting the trading card market and the other geared to developing multi-platform games.

4Kids will be the majority owner of the trading card company, TC Digital Games, marking the company’s first entry into directly producing trading cards for retail sale. 4Kids will be a 50-percent owner of the gaming venture, TC Websites. Both are being launched with Chaotic USA Entertainment, with whom 4Kids is working on the new trading card-based property Chaotic. The Chaotic trading card game will launch in Spring 2007. The Chaotic animated TV series premieres on 4Kids TV on FOX on January 6.

TC Digital Games and TC Websites base their technology on a series of patents covering the uploading of coded trading cards to a website where online game play and community activities occur. Chaotic USA Entertainment Group’s principal, Bryan C. Gannon, will serve as president and CEO of the new companies, based in San Diego.

“The formation of TC Digital Games and TC Websites represent a significant enhancement of our business strategy,” said Alfred R. Kahn, the chairman and CEO of 4Kids Entertainment. “The extraordinary success of Pokémon  and Yu-Gi-Oh! has given 4Kids tremendous insight into the trading card industry and the profit potential of a successful trading card game. With the upcoming launch of Chaotic, which integrates traditional trading card game play with unique online game elements, the timing is right for 4Kids to establish and invest in these new ventures. By owning and operating our own trading card and online game operations, 4Kids will now have greater control of the creative, marketing and distribution elements for Chaotic and an opportunity to capture substantially greater revenues and margins than we have recognized from trading card sales in the past.”

Gannon added, “My industry experience tells me that the time is right to launch these ventures. Collecting trading cards is as popular as ever and adding an on line game play component that uses special codes to upload cards for free on a kid-friendly, companion website is both cutting edge and exciting. Chaotic is already being talked about as the property that will marry traditional trading card play with the digital play experience. I’m excited about the potential success of these ventures.”