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The new PlayNet, which was formed in part by Bushnell (the creator of Pong and the founder of Atari and Chuck E Cheese), has been developing its hotel entertainment network for a year and a half and is already valued at US$138 million as a publicly-traded company. More than ten networked and solo games, such as bridge and trivia, will be available on the table-top PlayNet Web terminals, as well as prize competitions, Internet access, classified ads, and chat rooms.

They’ll also be linked to a PlayNet Music jukebox, allowing patrons to buy the CDs they’re listening to. By the end of the year, the terminals should be in 60,000 pubs, restaurants, hotel lounges, and airports across the United States, with worldwide development planned.

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CERTAINLY, BEER DRINKERS enjoy playing sports trivia, but do they also desire to visit the web? The PlayNet entertainment network, which began shipping terminals this week, is anticipating a positive response. PlayNet intends to burn into the pay-per-play entertainment sector by combining public Internet terminals with networked gaming, infringing on the turf of bar-game giant NTN.

“It’s the difference between playing solitaire in your living room vs going to a party,” explains Nolan Bushnell, PlayNet’s director of strategic development. “It’s a lot of fun putting these groups of individuals together from all over the country who are just having a good time.”

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To support that network, PlayNet announced a partnership with IBM on Wednesday, which would build a specific high-speed infrastructure to address the latency issues associated with real-time gaming over the Internet. The partnership benefits both parties: PlayNet receives a specialized network that connects to the Internet, and IBM gets a high-profile project to showcase its new Internet connection capabilities.

The hugely successful NTN has been enabling networked game playing in bars and restaurants for more than 15 years, with over 15 million monthly participants in 2,600 locations participating in their sports games and trivia tournaments. While PlayNet’s competitive games have proven popular in the beer-babes-ball setting of sports bars and franchised eateries, its plan of incorporating shopping, Web surfing, and conversation is a more lonely approach.

“Sports conjures up the competition, and what we do is put those two together,” explains Dan Purner, NTN’s vice president of production. “A group dynamic is greatly enhanced when 20 or 30 or 50 people participate in one location. In a social context, you’re really trying to connect with people, therefore we give them conversation starters.”

PlayNet’s consoles, on the other hand, will primarily be a one-to-one system, connecting individuals throughout the country rather than bringing them together in a single location. “Sometimes people come into bars and restaurants alone and wait for someone to come in – that’s the time-killing component,” Bushnell explains. However, two persons in the same bar will be able to compete against each other using the terminals.

While NTN’s terminals are reliant on advertising revenue, PlayNet’s terminals will generate revenue through quarter- and higher-per-use fees, as well as the added bonus of selling goods to customers once their wallets have been loosened by beer.

Meanwhile, as everyone from Apple to Starbucks tries to integrate Internet terminals into their eateries, PlayNet will find itself competing with more than just NTN’s networked entertainment sector. Despite increased competition, the networked public entertainment sector continues to outnumber the residential Internet market.

According to Bushnell, “the number of individuals with computers is less than a third of the population [of the United States], and those with an Internet connection are in the teens.” “I’ve always had the mentality of ‘let’s enable everybody with a quarter.'”

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