VU Games shuffles leadership

No doubt motivated by VU Games' 58-million euro loss, ($70.1 million) in Q3 2003, Vivendi Universal CEO Jean-Rene Fourtou has shaken up the games division's executive lounge.

Today, news out of VU's Paris headquarters is that Ken Cron's tenure as VU Games' chairman and CEO is over. Replacing the one-time CMP Media star and Universal Entertainment COO are Rene Penisson and Bruce Hack. Hack, who was a key negotiator in the $14 billion sale of Vivendi's entertainment assets to the NBC unit of General Electric Co., will become CEO. Penisson, a Vivendi Senior Executive Vice President and advisor to Fourtou, will assume the chairmanship. (Kron had held both titles.)

A high-ranking, America-based VU Games executive told GameSpot the news bodes well for the forward-looking but ailing company. He said, "I personally think this is a tremendous opportunity for the company to have two such seasoned executives join VUG," said the executive. "Vivendi has been really supportive of our effort and we are looking forward to the future with our new leadership."

VU Games certainly needs to turn its balance sheet around to merit its new status within the Vivendi operation. For most of last year, the biggest news out of the group revolved around potential buyouts.