Robert A. Kotick, who will be CEO of the newly combined Activision Blizzard, faces an industry in transformation as gaming explodes in popularity and moves to the Internet and phones. Now that he has brought Activision out of the shadow of Electronic Arts, analysts question whether he can keep pace with that juggernaut and become a magnate himself--or even the face of the industry. Analysts say Activision, now an industry darling based largely on the performance of the Guitar Hero series, still needs a broader portfolio of enduring game franchises. But they tend to give high marks to …

As Miller Brewing and Molson Coors prepare to marry their U.S. operations to take on No. 1 Anheuser-Busch, some distributors of just Miller or just Molson Coors products are looking at buying competitors as they grapple with rising costs for fuel, materials and labor. The U.S. beer industry has no nationwide distributors, consisting instead of family-owned and independent companies. The trend is driven by laws imposed after Prohibition, giving each state authority over alcohol regulation within its borders, says Craig Purser of the National Beer Wholesalers Association. The laws established a three-tiered system of distribution: Manufacturers and …

Rather than let demand fall and plants go idle, automakers offered generous incentives to buyers in the wake of 9/11. But if the country slips into recession next year, it appears that automakers are more likely to accept fewer sales at higher prices. Incentives won't go away, to be sure, and no Detroit automaker is talking recession publicly. But both Ford and GM are already choosing to cut production to meet reduced demand. "We believe that participants in the automotive economic cycle are likely to go back to the older recession playbook," Brian Johnson of Lehman Brothers says …

United, the world's second-largest carrier, says capacity in its primary U.S. jet operations will decline 3% to 4% percent next year. Delta plans to pare the number of seats it offers by as much as 5%. Southwest, the largest low-fare carrier, has reduced its 2008 capacity growth for a third time, to 4% to 5%, and Continental says it would slow growth in its main jet operations to 2% to 3% from 3% to 4%. The climb in fuel prices and potential for a drop in demand threaten the financial recovery of U.S. carriers, most of which posted …

After 129 years, AT&T is disconnecting its pay-phone business. Over the next year, it will phase out 65,000 pay phones in the 13 states formerly served by the local phone company SBC Communications, which acquired the old Ma Bell in 2005 and took its name. Since 1998, the number of pay phones in service has shrunk to about one million from 2.6 million, according to AT&T. The main reason has been the proliferation of cellular phones, which were invented in the 1970s. AT&T said it will continue to sell wholesale pay-phone service to independent operators, and it expects …

Chrysler, Ford and Toyota all posted virtually flat sales results for November compared with a year ago, and General Motors saw an 11% decline, in large part because it walked away from more fleet business. As a result, GM and Ford will slash North American production for the first three months of '08--GM by 11%; Ford by 7%. "Consumer confidence is at a two-year low, and we have some uncertainty in housing and mortgage markets, which perhaps is delaying some consumers from their car purchases," says Bob Carter, group vice president and gm for Toyota and Scion. Also, …

With Americans weighed down by some $900 billion in credit card debt--an average $2,200 per household--practices of the very profitable industry are falling under the scrutiny of Congress. They have also grabbed the attention of the Federal Reserve, which plans to require credit-card issuers to give customers at least 45 days' notice before raising interest rates and to provide clearer information on fees. A committee chaired by Sen. Carl Levin, D-Mich., today will look at how credit-card issuers raise consumers' rates--as high as 30%--when their so-called FICO credit scores decline, even if they've paid credit card bills regularly and …