Danny Puff

NEW YORK (AP) Beyonce is canceling her Tuesday concert in Belgium because of dehydration and exhaustion.

In an email to The Associated Press, the singer's publicist says Beyonce has been advised by her doctors to rest. She was scheduled to perform at the Sportpaleis in Antwerp. The show will be rescheduled and tickets can be used at that show.

Her next tour date is Wednesday at the same arena. The statement says "she is awaiting word from her doctors before making a decision."

Beyonce, 31, launched her "Mrs. Carter World Tour" last month in Belgrade, Serbia. It wraps Aug. 5 at the Barclays Center in Brooklyn, N.Y.

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MANILA, Philippines (AP) A film that weaves together stories of the anguish and desperation of American and Filipino soldiers during the notorious Bataan Death March could have been shot on location in a large-scale production.

Filipino director Borinaga Alix Jr. instead chose to film "Death March" in black-and-white and almost entirely inside a studio using hand-painted backdrops, with close-ups of actors' painted faces portraying their struggles with nightmares and hallucinations in one of the bloodiest episodes of World War II.

"Death March" is competing against 17 other movies at the Cannes Film Festival that opens Wednesday, including Sofia Coppola's "The Bling Ring," French director Claire Denis' "Les Salauds" and fellow Filipino director Lav Diaz's "Norte, Hangganan ng Kasaysayan." The entries were made in the category for art house and experimental films.

Some 70,000 starving, sick, and exhausted American and Filipino prisoners of the Japanese Imperial Army marched under a brutal sun for five days in April 1942, covering 105 kilometers (65 miles) from the Bataan peninsula to a prison camp in Tarlac province. Survivors told stories of atrocities, with many of the prisoners stabbed or decapitated by their Japanese captors if they so much as stopped to drink water or collapsed to the ground. Thousands died from illness or exhaustion.

After reading the script by Rody Vera, Alix said he was struck by the war's emotional and psychological effect on soldiers.

"It felt like they were sleep walking their nightmares," Alix said in an interview. He said he wanted to highlight how the event shaped the soldiers' psyche.

Instead of the initial plan to go on location, he consulted the production designer and decided "to shoot in a controlled environment where all the elements were synthetic, except the actors, to heighten the surreal feeling of the film."

The multi-character movie stars Filipino actors Sid Lucero as a Filipino soldier who fights to stay sane after his friend is shot in front of him, and Filipino-American actor Sam Milby as an American soldier taking care of his sick captain but also thinking of ways to escape from the Japanese.

Other Filipino actors whose stories converge in the film are Zanjoe Marudo, Jason Abalos, Carlo Aquino and Felix Roco.

Japanese actor and producer Jackie Woo, who has starred in two previous films directed by Alix, also plays several roles.

"At first I was surprised because he was Japanese," Alix said of Woo. "I know it is a very delicate subject matter especially for them, because the world has stereotypes of how the Japanese were during that time."

But he said he was happy that Woo loved the script, which last year won first prize for screenplay at the Palanca Memorial Awards, the Philippine literary version of the Pulitzer Prize.

"He said he is not afraid to produce it because at the end, all these three countries are victims of the war," Alix added.

Shooting lasted 18 days over about four months. At least 15 local artists had to hand-paint the backdrops for two months before shooting began. The movie went over the budget at around 10 million pesos ($244,000) because of the decision to shoot in a studio.

Alix said that while shooting indoors was confining and more expensive, it was worth it.

"The audience might feel a certain discomfort because it's not as real as it is, but at a certain point you also feel like you are in a journey with the characters" he said.

The 34-year-old director, named in 2010 by The Hollywood Reporter as among Asia's best and brightest entertainment personalities below 35, said he was thrilled that his movie will be competing in Cannes.

"For me it's just an honor to be in the same lineup of these directors because I love their work," said Alix, whose co-directed movie "Manila" also had a special screening in Cannes in 2009.

He said being in the festival gives small films like his the buzz and exposure that can boost sales.

Two French distributors have signed up to market the movie in France and elsewhere, he said.

"What is important now for us is to show that there is a movement that is coming from the Philippines, because in the past six years there have been a lot of Filipino films that have been screened in festivals and we get a lot of reviews," he said.

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By Clare Jim

TAIPEI (Reuters) - Hon Hai Precision Industry Co Ltd , the world's largest electronics contract manufacturer, faces growing competition from cross-town rival Pegatron Corp , a company that is just a quarter of its size by revenue.

Hon Hai, better known by its trading name Foxconn, draws an estimated 60 to 70 percent of its revenue from assembling gadgets and other work for Apple Inc . But it has been struggling to grow in a smartphone market increasingly dominated by Samsung Electronics Co Ltd .

Fellow Taiwanese manufacturer Pegatron wants to grab more orders to assemble the fast-selling iPhone and iPad from the California-based tech giant. Analysts say Pegatron offers more competitive pricing - at the expense of lower margins - and appears to be succeeding in pulling in more orders from Apple.

Pegatron's announcement last week that it would increase its number of workers in China by up to 40 percent in the second half of the year fuelled market speculation that it would be the sole assembler for a widely expected cheaper iPhone.

"Pegatron posts a long-term risk to Hon Hai because as it catches up on margins by supplying more components, it can provide more aggressive pricing," Daiwa Capital analyst Birdy Lu said. "Hon Hai's margin uptrend is not a guarantee."

Hon Hai is expected to post a net profit of T$18.76 billion ($638.24 million) in the first quarter, according to 13 analysts polled by Thomson Reuters I/B/E/S. Results are due to be released early this week.

This would be 26 percent higher than a net profit of T$14.92 billion in the same period a year earlier, before the company adopted a new accounting standard, but only around half of the record T$36.97 billion in the previous quarter.

The company, which has come under fire for labor conditions in its factories supplying Apple, has raised wages and improved amenities. But rising labor costs erode margins, and it has been moving manufacturing to China's cheaper inland provinces.

MARGINS NARROW

Apple, along with its suppliers, relies heavily on new product launches to drive revenue growth. Apple's Chief Executive Tim Cook told analysts last month that "some really great stuff" would come in late 2013 and 2014, suggesting it would be a few more months before the company has any new products.

Samsung, by contrast, recently launched its newest Galaxy S4 smartphone to strong demand. Samsung relies on its own in-house supplies for the majority of components in its smartphones.

Apple posted its first quarterly profit decline in more than a decade in the March quarter, and forecast revenue of $33.5 billion to $35.5 billion this quarter, compared with $43.6 billion in the previous quarter.

Despite rising profit, Hon Hai recorded a revenue slide of 19.2 percent in the January-March period.

Pegatron's revenue grew 29 percent in the same period from a year ago, while its net profit surged 81 percent to T$2.31 billion ($78.59 million).

Pegatron currently makes older models for Apple, including the iPhone 4S and iPhone 4, It also manufactures the iPad mini.

"Hon Hai would see a flat revenue this year at best... while Pegatron has great growth potentials because it is going from nothing to something," said HSBC analyst Jenny Lai. "But Hon Hai's margins would improve, benefitting from getting more component orders.

Foxconn Technology Group, Hon Hai's holding company, has been trying to turn itself into a high-margin purveyor of sophisticated components to escape from the ever decreasing margins in its traditional business.

"I think it'd be a misconception to label Foxconn as just an assembly line manufacturer," group spokesman Louis Woo told Reuters late last year in an interview. "From glass to cable connectors, we're playing a critical part in components."

In the fourth quarter, Hon Hai's operating margin climbed 3 basis points to 3.7 percent, compared with the previous three months, while Pegatron's operating margin improved by 2 basis points to 0.3 percent. In the March quarter, Pegatron's operating margin increased by 5 basis points to 0.8 percent.

"Pegatron's margins are still a lot lower than Hon Hai's. This is because Pegatron's offering very competitive pricing and that's how it wins orders," said Lai.

($1 = 29.3935 Taiwan dollars)

(Reporting by Clare Jim; Editing by Emily Kaiser)

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NEW YORK (AP) NBC is giving the public more than just a new slate of programming. There are prizes to be had, too.

The network said Sunday that it's holding a Twitter-based sweepstakes linked to its fall schedule presentation to advertisers a social-media twist on the annual TV rite occurring this week.

One of the prizes is a trip to Los Angeles to attend a final taping of Jay Leno's "Tonight Show." The other is a New York visit to see one of the first tapings of the relocated "Tonight" with new host Jimmy Fallon.

The contest opens Monday, when the network announces its lineup, and it runs through June 13. Fans can enter by following NBC's Twitter accounts of its upcoming schedule, which will include a new Sean Hayes sitcom.

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LOS ANGELES (AP) Every time Los Angeles exhales, odd-looking gadgets anchored in the mountains above the city trace the invisible puffs of carbon dioxide, methane and other greenhouse gases that waft skyward.

Halfway around the globe, similar contraptions atop the Eiffel Tower and elsewhere around Paris keep a pulse on emissions from smokestacks and automobile tailpipes. And there is talk of outfitting Sao Paulo, Brazil, with sensors that sniff the byproducts of burning fossil fuels.

It's part of a budding effort to track the carbon footprints of megacities, urban hubs with over 10 million people that are increasingly responsible for human-caused global warming.

For years, carbon dioxide and other greenhouse pollutants have been closely monitored around the planet by stations on the ground and in space. Last week, worldwide levels of carbon dioxide reached 400 parts per million at a Hawaii station that sets the global benchmark a concentration not seen in millions of years.

Now, some scientists are eyeing large cities with LA and Paris as guinea pigs and aiming to observe emissions in the atmosphere as a first step toward independently verifying whether local and often lofty climate goals are being met.

For the past year, a high-tech sensor poking out from a converted shipping container has stared at the Los Angeles basin from its mile-high perch on Mount Wilson, a peak in the San Gabriel Mountains that's home to a famous observatory and communication towers.

Like a satellite gazing down on Earth, it scans more than two dozen points from the inland desert to the coast. Every few minutes, it rumbles to life as it automatically sweeps the horizon, measuring sunlight bouncing off the surface for the unique fingerprint of carbon dioxide and other heat-trapping gases.

In a storage room next door, commercially available instruments that typically monitor air quality double as climate sniffers. And in nearby Pasadena, a refurbished vintage solar telescope on the roof of a laboratory on the California Institute of Technology campus captures sunlight and sends it down a shaft 60 feet below where a prism-like instrument separates out carbon dioxide molecules.

On a recent April afternoon atop Mount Wilson, a brown haze hung over the city, the accumulation of dust and smoke particles in the atmosphere.

"There are some days where we can see 150 miles way out to the Channel Islands and there are some days where we have trouble even seeing what's down here in the foreground," said Stanley Sander, a senior research scientist at the NASA Jet Propulsion Laboratory.

What Sander and others are after are the mostly invisible greenhouse gases spewing from factories and freeways below.

There are plans to expand the network. This summer, technicians will install commercial gas analyzers at a dozen more rooftops around the greater LA region. Scientists also plan to drive around the city in a Prius outfitted with a portable emission-measuring device and fly a research aircraft to pinpoint methane hotspots from the sky (A well-known natural source is the La Brea Tar Pits in the heart of LA where underground bacteria burp bubbles of methane gas to the surface.)

Six years ago, elected officials vowed to reduce emissions to 35 percent below 1990 levels by 2030 by shifting to renewable energy and weaning the city's dependence on out-of-state coal-fired plants, greening the twin port complex and airports and retrofitting city buildings.

It's impractical to blanket the city with instruments so scientists rely on a handful of sensors and use computer models to work backward to determine the sources of the emissions and whether they're increasing. They won't be able to zero in on an offending street or a landfill, but they hope to be able to tell whether switching buses from diesel to alternative fuel has made a dent.

Project manager Riley Duren of JPL said it'll take several years of monitoring to know whether LA is on track to reach its goal.

Scientists not involved with the project say it makes sense to dissect emissions on a city level to confirm whether certain strategies to curb greenhouse gases are working. But they're divided about the focus.

Allen Robinson, an air quality expert at Carnegie Mellon University, said he prefers more attention paid to measuring a city's methane emissions since scientists know less about them than carbon dioxide release.

Nearly 58 percent of California's carbon dioxide emissions in 2010 came from gasoline-powered vehicles, according to the U.S. Energy Department's latest figures.

In much of the country, coal usually as fuel for electric power is a major source of carbon dioxide pollution. But in California, it's responsible for a tad more than 1 percent of the state's carbon dioxide emissions. Natural gas, considered a cleaner fuel, spews one third of the state's carbon dioxide.

Overall, California in 2010 released about 408 million tons of carbon dioxide into the air. The state's carbon dioxide pollution is greater than all but 20 countries and is just ahead of Spain's emissions. In 2010, California put nearly 11 tons of carbon dioxide into the air for every person, which is lower than the national average of 20 tons per person.

Gregg Marland, an Appalachian State University professor who has tracked worldwide emissions for the Energy Department, said there's value in learning about a city's emissions and testing techniques.

"I don't think we need to try this in many places, but we have to try some to see what works and what we can do," he said.

Launching the monitoring project came with the usual growing pains. In Paris, a carbon sniffer originally tucked away in the Eiffel Tower's observation deck had to be moved to a higher floor that's off-limits to the public after tourists' exhaling interfered with the data.

So far, $3 million have been spent on the U.S. effort with funding from federal, state and private groups. The French, backed by different sponsors, have spent roughly the same.

Scientists hope to strengthen their ground measurements with upcoming launches of Earth satellites designed to track carbon dioxide from orbit. The field experiment does not yet extend to China, by far the world's biggest carbon dioxide polluter. But it's a start, experts say.

With the focus on megacities, others have worked to decipher the carbon footprint of smaller places like Indianapolis, Boston and Oakland, where University of California, Berkeley researchers have taken a different tack and blanketed school rooftops with relatively inexpensive sensors.

"We are at a very early stage of knowing the best strategy, and need to learn the pros and cons of different approaches," said Inez Fung, a professor of atmospheric science at Berkeley who has no role in the various projects.

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By Malathi Nayak

SAN FRANCISCO (Reuters) - In the midst of the bitter national debate on gun violence, gun manufacturers and videogame makers are delicately navigating one of the more peculiar relationships in American business.

Violent "first-person shooter" games such as "Call of Duty" are the bread and butter of leading video game publishers, and authenticity all but requires that they feature brand-name weapons.

Electronic Arts licensed weapons from companies like McMillan Group International as part of a marketing collaboration for "Medal of Honor: Warfighter." Activision Blizzard gives "special thanks" to Colt, Barrett and Remington in the credits for its "Call of Duty" titles.

Rifles by Bushmaster, which made the gun used in the Newtown, Connecticut school shooting last December, have appeared in the hugely popular "Call of Duty."

Yet, in the wake of the Newtown shooting, the biggest advocate for gun ownership, the National Rifle Association, took aim at videogames to explain gun violence. One week after 20 schoolchildren and six adults were killed in the shooting, NRA chief executive Wayne LaPierre called the videogame industry "a callous, corrupt and corrupting shadow industry that sells, and sows, violence against its own people."

Now at least one game maker, the second largest by revenue in the United States, is publicly distancing itself from the gun industry, even as it finds ways to keep the branded guns in the games. Electronic Arts says it is severing its licensing ties to gun manufacturers - and simultaneously asserting that it has the right, and the intention, to continue to feature branded guns without a license.

For the gunmakers, having their products in games is "free marketing, just like having Coca-Cola" in a movie, said Roxanne Christ, a partner at Latham & Watkins LLP in Los Angeles, who works with video game companies on licensing, but has not personally done a gun deal.

Yet it is also a virtual double-edged sword. "It gives publicity to the particular brand of gun being used in the video game," said Brad J. Bushman, a professor at Ohio State University who has studied video game violence. "On the other hand, it's linking that gun with violent and aggressive behavior."

Gun makers, including the Freedom Group that owns brands like Remington and Bushmaster, and the NRA, did not respond to repeated requests for comment from Reuters.

'ENHANCED AUTHENTICITY'

First-person shooter games let players blast their way through battlefields while looking down the barrel of a virtual gun, taking aim with the flick of a controller.

Some of those guns - like the Colt M1911 pistol in "Call of Duty" - turn sideways to face the screen during reloading, revealing the brand name. Games also offer lists of branded weapons to choose from.

Licensed images of weapons in "Medal of Honor: Warfighter" - a game that simulates military missions like fighting pirates in Somalia - offer what EA spokesman Jeff Brown calls "enhanced authenticity."

Back in the late 90's, video game makers initially approached gun companies for licenses to inoculate themselves from potential lawsuits, video game industry lawyers say. Over the years, legal clearances were granted for little or no money by gunmakers, these lawyers said.

Yet overt signs of cooperation between the video game and gun industries had begun to draw criticism even before the December school shooting in Connecticut.

In August, game fans and some video game news outlets vehemently objected to EA putting links to weapons companies like the McMillan Group and gun magazine maker Magpul, where gamers could check out real versions of weapons featured in the game, on its "Medal of Honor: Warfighter" game website.

"What kind of message is a video game publisher like EA sending when it encourages its players to buy weapons?" asked Laura Parker, the associate editor of gaming site GameSpot Australia in a post in August.

EA immediately removed the links and dropped the marketing tie-up, which it said was part of a charity project to raise money for military veterans. The company said it received no money from its gun company partners.

"We won't do that again," said Brown. "The action games we will release this year will not include licensed images of weapons."

EA said politics and NRA comments critical of game makers had nothing to do with its decision. "The response from our audience was pretty clear: they feel the comments from the NRA were a simple attempt to change the subject," Brown said.

EA also says video game makers can have branded guns in their games without getting licenses, meaning the industry could drop the gun companies and keep their guns.

Activision, the industry leader, declined to comment on whether it licenses gun designs from gun manufacturers or if it would stop doing so. Branded guns have consistently been featured in its blockbuster shooter games like the decade-old "Call of Duty."

"We're telling a story and we have a point of view," EA's President of Labels Frank Gibeau, who leads product development of EA's biggest franchises, said in an interview. "A book doesn't pay for saying the word 'Colt,' for example."

Put another way, EA is asserting a constitutional free speech right to use trademarks without permission in its ever-more-realistic games.

Legal experts say there isn't a single case so far where gun companies have sued video game companies for using branded guns without a license.

But EA's legal theory is now being tested in court. Aircraft maker Bell Helicopter, a unit of Textron Inc, has argued that Electronic Arts' depiction of its helicopters in "Battlefield" was beyond fair use and amounted to a trademark infringement. EA preemptively went to court, suing Bell Helicopter to settle the issue.

The U.S. District Court, Northern District of California, has set a jury trial for the case in June.

(Reporting By Malathi Nayak, Editing by Peter Henderson, Jonathan Weber, Mary Milliken and Tim Dobbyn)

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By Kevin Murphy

KANSAS CITY, Missouri (Reuters) - When a racist pitcher beans Jackie Robinson in the head in the new movie about the first black man to play major league baseball, Sherrill Duesterhaus wants everybody in the theater to know it's a lie.

Duesterhaus' father, Fritz Ostermueller, threw the pitch, but it did not hit Robinson in the head and there is no evidence he uttered, "You don't belong here and you never will," as shown in "42," the Warner Bros. Pictures film that opened in April.

"I respect Jackie Robinson, his story is so inspiring and it's good that it is out there, but not at the expense of someone's good name," said Duesterhaus, 66, of Joplin, Missouri.

Duesterhaus said she had been warned by a friend that the film was unflattering to her father, who died of cancer at age 50 when she was 11 years old.

But the scene in which he taunts Robinson and throws at his head was still a shock, she said.

"It just took my breath away," Duesterhaus said. "I thought, 'All these people are sitting here believing this and it didn't happen.' It broke my heart."

She said her father was a "kind and loving man" and neither she nor her mother can recall him talking badly about Robinson or any black player.

Duesterhaus produced an article from a Pittsburgh newspaper in 1947 in which her father said Robinson crowded the plate, making pitching to him difficult. Ostermueller played for the Pittsburgh Pirates at the time.

"I told my wife the night before I pitched that I might have trouble with Robinson - that one of my pitches would hit him, if he didn't move back," Ostermueller said in the article.

"I knew, too, some people would say it was intentional. It wasn't at all, but in his first trip to the plate I hit him. After that, he moved back a couple of inches and showed me some respect."

TRUTH 'WENT SOUTH'

The pitch early in the 1947 season - Robinson's rookie year - sailed toward his head but he deflected it with his arm before falling to the ground, according to several accounts.

Robinson's teammates on the Brooklyn Dodgers yelled at Ostermueller, but no fight broke out on the field as shown in the movie.

A Warner Bros. spokesman, Paul McGuire, had no comment in response to questions about the film and Duesterhaus' concerns.

She said the movie contained other errors, such as showing Ostermueller as a right-handed pitcher, when he threw left-handed.

"I enjoyed the movie," Duesterhaus said, "up until the truth went south."

Jonathan Eig, author of the 2007 book "Opening Day: The Story of Jackie Robinson's First Season," said Robinson took verbal abuse from some players but there is no indication Ostermueller wanted to drive him out of baseball or threw at him because he was breaking the game's color barrier.

"I was surprised they chose that moment to dramatize the issue and picked Ostermueller of all people to be the villain," Eig said. "Even as I was watching the movie, I wondered if any of Ostermueller's kids will see this and what they would think."

Eig said Robinson was known to lean into pitches and swing wildly, making him vulnerable to getting hit.

Robinson was hit by more pitches than all but one other National League batter in 1947, and led the league in that category in 1948, according to baseball-reference.com.

Robert Butler, a former film critic for the Kansas City Star who now has an online movie review site, said the movie unnecessarily tainted Ostermueller's reputation.

"In my opinion, it's the result of bad research, laziness or outright malice," Butler said. "It would have been the easiest thing in the world to give (Ostermueller) a different name in the film. That said, anyone who goes to movies looking for true history is fighting a losing battle."

(Editing by David Bailey and Xavier Briand)

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LOS ANGELES (AP) Members of Slayer say Jeff Hanneman died of alcohol-related cirrhosis.

The guitarist died last week at a hospital in Hemet, Calif., at age 49. It was initially theorized that Hanneman's death might have had something to do with a suspected spider bite that led to a case of necrotizing fasciitis, nearly costing him his arm.

The band disclosed Hanneman's cause of death on its website Thursday, and a publicist said Friday the determination was made by his attending physician. She did not know the doctor's name.

The statement says Hanneman was not aware of the extent of damage to his liver until his last days.

The band also says it is planning a public celebration of Hanneman's life later this month with details to come.

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By Gerry Shih

SAN FRANCISCO (Reuters) - In the past twelve months, Zynga Inc has struggled with a contracting player base, a deflated stock price and waves of layoffs. Now it is coming to terms with downsized ambitions.

As Chief Executive Mark Pincus, 47, leads the online games developer he founded in 2007 through perhaps the most crucial year of his tenure, he is pushing to restore revenues by doubling down on "FarmVille," the franchise that took Facebook users by storm four years ago and launched Zynga to stardom.

Though some industry observers had declared farm simulation games a fad and predicted FarmVille 2's early demise, the sequel to Zynga's best-known title has defied expectations at its San Francisco headquarters, Pincus said in an interview. FarmVille 2 has clung to its perch near the top of Facebook charts and the number of people who play the game each day still hovers near all-time highs of 8 million, even six months after launch.

Given a glaring weakness in mobile games, however, one of Zynga's current priorities is porting FarmVille 2 to mobile devices so players can move from PCs to smartphones and back without losing their data. That presented technical challenges that the company is ironing out, Pincus said.

"The ideal is to make that one seamless experience between Web and mobile so you can take your farming experience from work to home," Pincus said. "We're having to retool and reinvent around our process and technology."

Pincus badly needs a reliable hit franchise. In the past nine months, Zynga has shuttered 20 titles and closed offices in Baltimore, Boston and Tokyo. It has trimmed 5 percent of its workforce, though its headcount of nearly 3,000 still dwarfs that of fierce rivals like Supercell, a Finnish company with 100 people that claims an equivalent amount of revenue, or the 600-strong Rovio, the publisher behind the "Angry Birds" games.

Gone is the swagger that defined the early years, when Zynga's army of developers flooded the market with dozens of new titles from cooking games to bingo variations, its dealmakers splashed money to snap up smaller rivals, and its managers opened studios in cities around the world.

Wall Street is viewing Pincus' shift with cautious approval, having been singed by Zynga's abysmal stock performance an 80 percent decline over the past year that began around the time it invested $180 million in then-promising game studio OMGPOP.

"Certainly their shareholder base wants to see more discipline," said Sean McGowan, an analyst at Needham and Co. "When you have limited resources, it makes sense to start with a proven winner, then expand that franchise. But it needs to be a blend of sticking with the proven brands and realizing when people might say: 'FarmVille 4? No, I'm done with that.'"

Investors place much stock on Zynga's future prospects in Internet gambling, because of its massive poker-playing community and existing game software. But with meaningful income from real-money casino efforts likely to be months, if not years, away, it may have to risk "sequelitis" for now.

TABLES TURNED

Almost 18 months after going public, Zynga is staving off fierce competition from newer or nimbler rivals that mimic its games.

Supercell, founded in 2010, has scored with "Hay Day," an iPad game that contains elements resembling FarmVille. With just one other game under its belt, Supercell says it is on track to make more than $800 million in revenue this year, roughly equal to the $860 million that Wall Street expects from Zynga in 2013.

Veteran video games publisher Electronic Arts Inc, one of Zynga's earliest rivals, in recent weeks said it would lay off an undisclosed number of employees and focus on core franchises like Battlefield and sports titles.

Activision Blizzard Inc, another publishing heavyweight, has fared better thanks to the strength of series like "Call of Duty," which has brought in more than $8 billion in cumulative sales since the first title launched in 2003. Yet even Activision is struggling to sustain revenue growth.

Zynga's bottom-line could be shored up through a more streamlined pipeline, Pincus argued. Since FarmVille first launched, it has gradually honed its development process to reduce the resources and development costs required for each significant update by more than 80 percent, he said.

"As long as our players are interested in farming, we'll offer a Farmville," Pincus said. "It could be the Seinfeld of our era in gaming, a multi-season show that has a quality and a consistency that you can rely on."

Zynga declined to address its game pipeline. Bing Gordon, an investor at venture capital firm Kleiner Perkins Caufield & Byers and a Zynga board member, said he has repeatedly nudged the company to develop FarmVille 3.

"Coca Cola has learned not to change their formula," said Gordon, a game industry veteran who formerly served as chief creative officer at Electronic Arts. "If you've got something people want, keep doing it."

BOLD BEATS

Even as Zynga seeks greater efficiency, it acknowledges it has been pressed to invest more to stay competitive.

At the heart of the company's strategy has been its "bold beat" schedule, a roadmap first laid out by Pincus in 2009 to release significant upgrades and new features to games every quarter to keep players hooked.

Once criticized in the industry for low-quality graphics and rudimentary gameplay, the company's latest launches and "bold beats" have placed a greater emphasis on elements like visuals that were once considered superfluous, game designers said.

"Player expectations are higher than they used to be," said Zynga Senior Vice President Todd Arnold, who oversees FarmVille and FarmVille 2. "You're not able to launch a minimalist product as we used to be able to."

For its leading franchises, the company is also investing more in quantitative and analytical tools. Every week, it shuttles players into a room deep inside its offices, where they are shown minute new design features. Their reactions are recorded by video cameras as well as a team of game designers sitting behind a two-way mirror in an adjacent room.

The company also holds periodic panel discussions with its most loyal fans to solicit suggestions for new features.

Linda Zoccoli, a retired daycare business owner in Moraga, California, suggested at a session in March that water was too scarce a commodity in FarmVille 2. Weeks later, she noticed the game began to feature periodic rainfall.

She has spent three hours almost daily for the past eight months tending her plot but hasn't found it repetitive.

"As long as they come out with new quests, new items, it keeps it interesting," she said.

(This story was fixed to correct spelling in paragraph 22 to oversees instead of overseas, corrects spelling in paragraph 25 to Zoccoli instead of Zoccolli)

(Reporting by Gerry Shih; Editing by Edwin Chan, Jonathan Weber and Chris Reese)

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TOKYO (Reuters) - Panasonic Corp forecast its operating profit will rise 55 percent in the year to March 31 as it steps back from struggling operations in TVs and other consumer gadgets in favor of selling machinery, components and electronic equipment to other businesses.

The company expects operating profit to rise to 250 billion yen ($2.52 billion) in the current business year from last year's 160.9 billion yen. That compares with an average 241 billion yen forecast from 18 analysts surveyed by Thomson Reuters I/B/E/S before the company released its latest earnings figures on Friday.

Panasonic's CEO, Kazuhiko Tsuga has promised to weed out within two years any loss-making or low-profitability units that fall short of a 5 percent annual operating margin threshold. Further restructuring, however, could add to costs and squeeze its bottom line.

Panasonic's strategy to pull away from consumer electronics contrasts with domestic rival Sony Corp, which is doubling down on mobile phones, cameras and game consoles in a bid to revive the fortunes of its core consumer electronics business, which still accounts for more than half of revenue.

At Tsuga's company, TVs, DVD players and other home entertainment gadgets represent less than one-fifth of sales, leaving it more options to pursue profits elsewhere. Panasonic's biggest earning segments are appliances, such as washing machines and refrigerators, and the division it dubs "eco solutions", which makes light fixtures, toilets, ceiling fans and other household fittings that hark back to the company's beginnings in 1908 making electrical extension sockets.

In October, Tsuga bit the bullet on non-performing businesses by writing down billions of yen in tax-deferred assets and goodwill related to its businesses making mobile phones, solar panels and small lithium batteries. The result was a net loss of 754.25 billion yen last business year, nearly matching the prior year's record 772.17 billion yen loss.

Like Sony, however, the company is relying on asset sales to underpin its finances as it tries to revive profit growth, pledging to keep annual free cashflow above 200 billion yen. Its disposals have included a Tokyo office building and $1 billion worth of stocks in companies such as Toyota Motor Corp.

The value of the company's assets fell to 5.4 trillion yen at the end of the latest business year from 6.6 trillion a year earlier, as a result of asset disposals and writeoffs.

Over the next two years, Panasonic, which has seen its sales shrink by one-fifth from a peak of $92 billion six years ago, plans to spend $2.5 billion to revamp its businesses.

It has yet to announce additional staff cuts, after shedding 40,000 jobs over the past two years. With 300,000 workers it remains one of Japan's biggest employers.

Since the start of the year, the company's shares have gained 43 percent, keeping pace with a 40 percent rally in the benchmark Nikkei average as weakness in the yen boosted the outlook for exporters. Panasonic's shares rose 3.7 percent on Friday to close at 749 yen before it released its latest earnings figures.

($1 = 99.3050 Japanese yen)

(Reporting by Tim Kelly; Editing by Edmund Klamann)

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