Troubled chipmaker AMD is putting a lot of its limited investment money into the “Boltzmann Initiative” which is uses heterogeneous system architecture ability to harness both CPU and AMD GPU for compute efficiency through software.
VR-World says that stage one results are finished and where shown off this week at SC15. This included a Heterogeneous Compute Compiler (HCC); a headless Linux driver and HSA runtime infrastructure for cluster-class, High Performance Computing (HPC); and the Heterogeneous-compute Interface for Portability (HIP) tool for porting CUDA-based applications to C++ programming.
AMD hopes the tools will drive application performance from machine learning to molecular dynamics, and from oil and gas to visual effects and computer-generated imaging.
Jim Belak, co-lead of the US Department of Energy’s Exascale Co-design Center in Extreme Materials and senior computational materials scientist at Lawrence Livermore National Laboratory said that AMD’s Heterogeneous-compute Interface for Portability enables performance portability for the HPC community.
“The ability to take code that was written for one architecture and transfer it to another architecture without a negative impact on performance is extremely powerful. The work AMD is doing to produce a high-performance compiler that sits below high-level programming models enables researchers to concentrate on solving problems and publishing groundbreaking research rather than worrying about hardware-specific optimizations.”
The new AMD Boltzmann Initiative suite includes an HCC compiler for C++ development, greatly expanding the field of programmers who can leverage HSA.
The new HCC C++ compiler is a key tool in enabling developers to easily and efficiently apply the hardware resources in heterogeneous systems. The compiler offers more simplified development via single source execution, with both the CPU and GPU code in the same file.
The compiler automates the placement code that executes on both processing elements for maximum execution efficiency.
Samsung Electronics is about to decrease personnel at its Samsung Seoul R&D Campus by as many as two-thirds in order to restructure its business model and operations
A new report from ChosunBiz said that Samsung originally aimed to house around 10,000 personnel on the site. However the majority of the decreases will be applied to Samsung’s Digital Media & Communication (DMC) and Media Solutions Centre (MSC).
The campus will instead house about 3,500 staff who have master and PhD degrees and specialise in software, design and digital media development.
The move is odd as it is coming at a time when Samsung is really desperate for killer innovation to steal the march on the competition. However reading between the lines it looks like it is reducing work in its content creation side.
We are surprised that it is doing anything with its Media Solutions centre. Originally, it was established to operate as a Korean version of the App Store. But the company announced on December 10 last year that it was dissolves the organisation.
At the time it was admitted that the content business has not been as successful as the hardware business. Moreover, the worsening performance of the smartphone business arising from the increasingly saturated market forced the company to speed up the break-up process.
With Android and iOS controlling most of the mobile operating system market, it’s tough going for alternatives like Sailfish, now in survival mode as its maker, Jolla, moves to lay off a large part of its workers.
The first smartphone with the Linux-based OS shipped at the end of 2013. Adoption of Sailfish has been weak, however, and Jolla is selling only one smartphone model, via the company’s website, for about $303. It’s a Jolla-branded phone, made by a third-party contract manufacturer. A tablet is also available for preorder.
Jolla is restructuring debt in its home country, Finland, after a round of funding fell through. The company announced Friday that it will lay off “a big part” of its staff, without giving many details of future plans. The company did say it would be tailoring the OS to fit the needs of different clients, and that it has several “major and smaller potential clients.” It also said Sailfish is stable and ready for licensing.
For analysts, Jolla’s collapse wasn’t a surprise. In a copycat market, Sailfish offers cool customization features, for example. But it doesn’t have the backing of device makers or carriers, which is crucial for survival.
The China market was a big focus for Jolla, but Xiaomi took the country by storm with end-to-end offerings including OS, user interface and hardware, along with the creation of a developer ecosystem, said Carolina Milanesi, chief of research and head of Kantar Worldpanel ComTech.
Many alternative mobile OSes like Ubuntu, Firefox, WebOS, Blackberry and others are in the same boat as Sailfish, trying to find a niche in a market ruled by Apple and Google. The biggest competitor to Android and iOS is Microsoft’s Windows Phone, which had just a 1.7 percent market share in mobile handsets, with 5.87 million units shipping during the third quarter this year, according to Gartner.
A Gartner analyst said Windows Phone could find adopters in the enterprise market. But Jolla doesn’t have the resources of Microsoft, of course, and this raises questions about the future of Sailfish.
Some iPad Pro owners have reported strange behavior in their new 12.9-inch tablets. Normally when you charge a device, unless the battery has completely died, the screen remains responsive. But some iPad Pros are completely freezing, then dying, after a recharge. The problem appears to be widespread — Apple’s support communities are filled with complaints about the issue.
Apple knows about the problem, but hasn’t said why it’s happening. There doesn’t seem to be a real fix for it, either — at least not yet. The company published a support document on Thursday advising Pro users to force restart their tablets to bring them back to life, but that’s not really a long-term solution, because the issue is ongoing.
“When I connect my iPad Pro to the charger for more than an hour, it goes dead,” one iPad Pro owner reported in the Apple support forum. “It takes multiple hard resets to bring it back to life.”
MacRumors first reported the iPad Pro issue last Monday, just days after the supersized tablets began shipping, and even experienced the problem with one of its own tablets. Apple employees are reportedly advising a range of solutions, from using iTunes to restore settings to performing a hard restart, as Apple is now officially recommending.
We’ll update this story when Apple pushes out a fix for the problem.
“We feel strongly that customers are not really looking for a converged Mac and iPad,” Cook told The Irish Independent, Ireland’s largest daily newspaper, in aninterview published Sunday. “Putting those two together would not achieve either. You’d begin to compromise in different ways.”
But take Cook’s comments with a grain — or more — of salt. “These are tactical communications, nothing about what they might do, or what they potentially will do,” noted Ezra Gottheil, an analyst with Technology Business Research, in a Monday interview.
Cook, who has been on a swing through Europe to meet with Irish officials about an expansion of Apple’s facility in the country, and in the U.K. to trumpet the iPad Pro, which went on sale last week, again took time to take a swipe at the competition.
“What that would wind up doing,” Cook said, referring to a notebook-slash-tablet analogous to Microsoft’s new Surface Book, “is that neither experience would be as good as the customer wants.”
In earlier interviews while in Europe, Cook had previously bashed the Surface Book, a 2-in-1 with an integrated keyboard and detachable screen that reverts to a tablet when held separately. “It’s trying to be a tablet and a notebook and it really succeeds at being neither. It’s sort of deluded,” Cook said of the Surface Book.
Cook’s stance is not new: The CEO has repeatedly said Apple had no interest in 2-in-1 devices, at one point calling tablets with keyboards akin to a Frankenstein mashup of toaster and refrigerator. That, of course, was long before Apple decided to join the market with the 12.9-in. iPad Pro and its optional Smart Keyboard.
Over the last few months both have been busy with new releases. Nvidia has its GeForce GTX 950 and GTX 980 Ti, while AMD put its first HBM-powered cards in the Radeon R9 Fury X, Fury and the super-small R9 Nano into the shops.
According to JPR, overall GPU shipments are up quarter-over-quarter – with AMD’s overall GPU shipments up 15.8 per cent. But before AMD fanboys get all excited by a surprise return to form from AMD, JPR said that that NVIDIA “had an exceptionally strong quarter”. Nvidia saw an uptick of 21.3 per cent.
The PC market as a whole increased by 7.5 per cent quarter-over-quarter but decreased 9 per cent year-over-year. Nivida’s discrete GPU shipments were up 26.3 per cent according to JPR, while AMD’s discrete GPUs spiked by 33 per cent.
AMD’s mobile GPU shipments for notebooks increased by 17 per cent, while NVIDIA had 14 per cent.
The company is now encouraging both Android and iOS users of Beats Music to transition to the Apple Music streaming service, which was launched by the company in June.
After the launch of the Apple Music app for Android phones, it has become easier for Apple to do the inevitable – shut down Beats Music, transition Android users and focus on Apple Music.
“All the pros that curated music for you are still crafting more amazing experiences,” wrote executive Dale Bagwell on a Beats support page. “Plus, on Apple Music, you’ll get even better recommendations based on music you already listen to and love, 24/7 global radio with Beats 1, exciting material from your favorite artist, and more.”
Beats Music subscriptions will be cancelled on Nov. 30, but users have the option to move their picks and preferences over to Apple Music, he added.
The company also provided detailed instructions for users moving from Beat Music to Apple Music on the support page. Apple had said earlier it was no longer accepting new subscriptions for Beats Music and recommended to users to move their current Beats subscriptions over to Apple Music.
Apple unveiled in June the subscription music service, which is priced at US$10 a month with a family service also available for up to six family members for $15 per month. The subscription rates vary in some countries.
The service offers a three-month free trial. Unlike some of its rivals, Apple Music doesn’t offer free music supported by advertisements.
“We’re excited to announce the latest in an engaging line of optional product features geared towards making Messenger the best way to communicate with the people that matter most,” a Facebook spokesperson said in an email. “Starting today, we’re conducting a small test in France of a feature that allows people to send messages that disappear an hour after they’re sent. Disappearing messages gives people another fun option to choose from when they communicate on Messenger.”
This should sound familiar to Snapchat users who are accustomed to their messages disappearing shortly after they’re sent.
Users can turn the Facebook feature on by tapping an hourglass icon in the upper right corner of the Messenger screen. Tap the hourglass again to turn it off.
Facebook is testing disappearing messages for iOS and Android users in France only. While the feature may be available in more countries over time, Facebook didn’t have any current plans to share.
This may be a good defensive move for the social network.
Facebook has been struggling to retain, or even attract, younger users who are being lured away by apps like Instagram and Snapchat.
To deal with this problem, Facebook tried to buy Snapchat for a reported $3 billion in late 2013. The offer was turned down, though.
Then in early 2014, Facebook tried to go after Snapchat’s users by unveiling a new mobile app called Slingshot. The app was designed to enable users to instantly share photos and videos with multiple friends.
Now that Facebook is taking a different tack, the question is whether it can steal away Snapchat’s user base.
The talks are ongoing and it is unclear if any of the banks have signed an agreement with Apple, the Journal said, citing people familiar with the matter.
The service, which would compete with PayPal Inc’s popular Venmo, would allow users to transfer funds from their checking accounts through Apple devices, the Journal reported on Wednesday.
The service would likely be linked to the company’s Apple Pay system, which allows customers to make credit-card and debit-card payments with their mobile phones, the newspaper said.
A launch isn’t imminent, but one person told the Journal that Apple could roll it out next year.
Apple has been talking with a number of banks about the service, including JPMorgan Chase & Co, Capital One Financial Corp, Wells Fargo & Co and U.S. Bancorp.
An Apple spokeswoman declined to comment.
A security firm has released a list of ongoing and incoming threats that cover a range of things from Apple’s iOS to the Internet of Things (IoT).
In its third report this year, Quick Heal warns that Apple users in particular better brace themselves for impact as more and more malware writers who’ve earned their stripes targeting Android users turn their attention to iOS.
“As the number of iPhone owners rises across the world, iOS has become a new potential target for Android malware authors and hackers. It is expected that Android malware will soon be altered to attack iOS users as well, and jailbroken iOS devices will be the first wave of targets for these attacks,” explained the firm (PDF).
“Recently, the ‘XcodeGhost’ malware was found on the Apple App Store and this is just the beginning of such attacks.”
In a section on wearables, Quick Heal predicts hackers will increasingly target fitness trackers, something that other security researchers have already warned about.
A lot of space in the report is reserved for Android-flavoured threats, and users are offered advice on protecting themselves such as if there is an option to use a password over a touch sign-in, then you ought to take it.
“A group of researchers have discovered a serious security flaw in the Android Lollipop version running on devices right now. This flaw allows attackers to bypass the lockscreen of an Android smartphone by using a massive password and thereby exposing the homescreen,” it explains.
“The attack essentially works by opening the in-built camera application and afflicts people using a password to protect their Android device and lock their screen.”
The most significant Android threat is a rascal called Android.Airpush.G, which claims 30 percent of the bug pool and is the kind of adware thing that makes you want to take a hammer to your phone screen. The second most prominent issue is Android.Reaper.A, which can haul in a large data harvest when in place.
Quick Heal is not the only security company in town, and a post on the Symantec website also seems set to put the fear into the Apple user community. That post, read it here – if you dare, says that the Mabouia ransomware is capable of causing a problem for Mac and PC users alike.
Fortunately, Mabouia is a proof-of-concept attack that a researcher shared with both Apple and Symantec. Symantec says that the PoC effort achieves at least one first.
“Mabouia is the first case of file-based crypto ransomware for OS X, albeit a proof-of-concept. Macs have nevertheless already been targeted by ransomware in the form of browser-based threats,” it explained.
LVMH’s Tag Heuer has become the first Swiss watchmaker to offer a “smartwatch” to customers that combines Swiss design with U.S. technology, seeking to tap a growing market for wearable devices amid flagging sales of traditional watches.
Co-developed with Google and Intel, the “Tag Heuer Connected” will cost $1,500. One thousand units are immediately available in 15 stores across the United States, with Britain, Germany, and Japan following in the coming days.
With its titanium casing, black rubber strap and digital watch hands, it is designed to look like a classical watch.
But Connected houses an Intel Atom processor beneath its touchscreen that lets wearers connect to the internet, stream music and run applications via Google’s Android Wear platform, from existing favorites such as Google Fit and Google Maps to customized lifestyle and sports apps.
The watch, which electronically tethers to a phone, responds to voice commands and finger swipes. It can give the weather, set up a calendar reminder or tell the wearer how many steps she or he has walked that day, for instance.
The Connected will compete in part against Apple Inc’s Apple Watch, which has breathed life into the smartwatch category. With prices of $350 to $17,000 it competes with some traditional luxury timepieces.
Tag Heuer Chief Executive Jean-Claude Biver described the Connected watch as a way to get new customers and warm them up to traditional watches.
“The Apple Watch will never be eternal,” Biver said at an event in New York. “Our watch will. It’s a big advantage.”
Customers can swap their smartwatch for a mechanical one at the end of a two year warranty if they pay $1,500 more, a strategy Biver said allows the company to protect its traditions and cater to younger clientele who might be tempted by Apple.
Read more at Reutershttp://www.reuters.com/article/2015/11/09/us-watches-smartwatch-tagheuer-idUSKCN0SY2O920151109#lpISzxgKzv6Q8P0z.99
AMD said that Globalfoundaries has demonstrated silicon success on the first AMD products using GloFlo’s 14nm FinFET process technology.
We are pretty sure that it is talking about the prototypes for Zen, but AMD is not being that specific. Nevertheless, AMD is being enthusiastic.
As a result of this milestone, Gloflo silicon-proven technology is planned to be integrated into multiple AMD products that address the growing need for high-performance, power-efficient compute and graphics technologies across a broad set of applications, from personal computers to data centres to immersive computing devices, AMD said.
Er that will be Zen then.
AMD said that it has taped out multiple products using 14nm Low Power Plus (14LPP) process technology and is currently conducting validation work on 14LPP production samples.
Today’s announcement represents another significant milestone towards reaching full production readiness of Globalfoundries’ 14LPP process technology, which will reach high-volume production in 2016, AMD said.
The 14LPP platform taps the benefits of three-dimensional, fully-depleted FinFET transistors to enable customers like AMD to deliver more processing power in a smaller footprint for applications that demand the ultimate in performance.
Mark Papermaster, senior vice president and chief technology officer at AMD said that FinFET technology is expected to play a critical foundational role across multiple AMD product lines, starting in 2016.
“Globalfoundaries has worked tirelessly to reach this key milestone on its 14LPP process. We look forward to Globalfoundaries continued progress towards full production readiness and expect to leverage the advanced 14LPP process technology across a broad set of our CPU, APU, and GPU products.”
Mike Cadigan, senior vice president of product management at Globalfoundaries said that the 14nm FinFET technology is among the most advanced in the industry.
“Through our close design-technology partnership with AMD, we can help them deliver products with a performance boost over 28nm technology, while maintaining a superior power footprint and providing a true cost advantage due to significant area scaling.”
Globalfoundaries 14LPP FinFET is ramping with production-ready yields and excellent model-to-hardware correlation at its Fab 8 facility in New York.
AMD said that in January, the early-access version of the technology (14LPE) was successfully qualified for volume production, while achieving yield targets on lead customer products.
The performance-enhanced version of the technology (14LPP) was qualified in the third quarter of 2015, with the early ramp occurring in the fourth quarter of 2015 and full-scale production set for 2016.
AT&T began sales of BlackBerry’s first Android-powered smartphone, a slider called the Priv, on Friday for $250 with a two-year contract, a price that could entice buyers who are reluctant to pay BlackBerry’s own $699 off-contract price.
Pre-orders for the slider smartphone with a 5.4-in. display, started two weeks ago. A BlackBerry spokeswoman declared in an email that pre-orders for the Priv “far surpassed” pre-orders for BlackBerry’s Classic and Passport phones, but she declined to offer any numbers.
While her statement sounds positive for Priv, it might not mean very much. Both earlier smartphones, which run on the BlackBerry OS, were “not tracking anywhere close” to what BlackBerry expected, according to Morgan Stanley analysts in March.
BlackBerry hasn’t broken out sales figures for any of its devices, but the company recently said it generated revenues from shipping just 800,000 phones in the quarter that ended Aug. 29, down from 2.1 million a year earlier.
Its dwindling smartphone sales left BlackBerry with just 0.3% of the total global smartphone market in the second quarter, according to IDC. Presumably,selling an Android phone could help BlackBerry, because Android is now positioned at 83% of the global market.
His comments came as SoftBank, which owns more than 70% of Sprint, reported its quarterly earnings.
“Sprint is now in the position to increase the pace of user acquisition while cutting costs,” Son said, according to Bloomberg and other news sources. “We will also cut staff. The cuts will be in the thousands.”
Son’s comments are not out of line with things Sprint CEO Marcelo Claure has been telling Sprint workers for months.
On Tuesday, Sprint’s stock price sagged downward after an earnings report included a statement saying that the carrier plans to cut $2 billion or more in operating expenses for its 2016 fiscal year, which begins in April.
Son also said the $2 billion is a “minimum target” and should be the amount slashed annually, according to a report by The Wall Street Journal. The company now has more than $25 billion in annual costs.
Sprint has been investing in attracting new customers — an effort that has been costly but effective. On Tuesday, Sprint reported it gained 237,000 postpaid phone customers in its second fiscal quarter, which ended Sept. 30. It was the first time the company had showed gains on that measure in two years. It also reported its lowest customer cancellation rate in company history.
In November 2014, Sprint had said it would cut 2,000 jobs as part of $1.5 billion in cost reductions. That announcement came after Sprint had cut 5,000 jobs from January through September 2014. The company had 31,000 workers at the start of its current fiscal year on April 1.
Activision Blizzard has bought King Digital Entertainment for $5.9 billion, marking not only one of the largest acquisitions in videogame history but one of the largest deals ever made in the entertainment business. Comparing this to previous entertainment deals highlights just how extraordinary the figures involved are; the purchase price values King at significantly more than Marvel Entertainment (acquired by Disney for $4.2 billion), Star Wars owner Lucasfilm (Disney again, for $4.1 billion) and movie studio Metro-Goldwyn-Mayer (acquired by Sony for almost $5 billion). The price dwarfs the $1.5 billion paid by Japanese network SoftBank and mobile publisher GungHo for Supercell back in 2013 – though it’s not quite on the same scale as the $7.4 billion price tag Disney paid for Pixar, or in the same ballpark as the $18 billion-odd involved in the merger that originally created Activision Blizzard itself.
How is $5.9 billion justified? Well, it’s a fairly reasonable premium of 20% over the company’s share price – though if you’ve been holding on to King shares since its IPO in 2014, you’ll still be disappointed, as it’s far short of the $22.50 IPO price, or even the $20.50 that the shares traded at on their first day on the open market. The company’s share price has been more or less stable this year, but Activision’s offer still doesn’t make up for the various tumbles shares took through 2014.
A better justification, perhaps, lies in the scale of King’s mobile game business. The company is a little off its peak at the moment. Candy Crush Saga, its biggest title, is on a slow decline from an extraordinary peak of success, and other titles aren’t growing fast enough to make up for that decline, but it still recorded over half a billion monthly active users (MAUs) in its recently reported second quarter figures. In terms of paying users, the company had 7.6 million paying users each month – more than Blizzard’s cash cow, World of Warcraft, and moreover, the average revenue from each of those users was $23.26, far more than a World of Warcraft subscriber pays. King took in $529 million in bookings during the quarter, 81 per cent of it from mobile devices – a seriously appealing set of figures for a company like Activision, which struggles to get even 10 per cent of its revenues from mobile despite its constant lip-service to the platform.
In buying King, Activision instantly makes itself into one of the biggest players in the mobile space, albeit simply by absorbing the company that is presently at the top of the heap. It diversifies its bottom line in a way that investors and analysts have been crying out for it to do, reducing its reliance on console (still damn near half of its revenues) and on the remarkable-but-fading World of Warcraft, and bulking up its anaemic mobile revenues to the point of respectability. On paper, this deal turns Activision into a much more broad-based company that’s far more in line with the present trajectory of the market at large, and should assuage the fears of those who think Activision’s over-reliance on a small number of core franchises leaves it far more vulnerable than rivals like Electronic Arts.
That’s on paper. In practice, though, what has Activision just bought for $5.9 billion? That’s a slightly trickier question. The company is, unquestionably, now the proud owner of one of the most talented and accomplished creators and operators of mobile games in the world. King’s experience of developing, marketing and, crucially, running mobile games at enormous scale, and the team that accomplished all of that, is undoubtedly valuable in its own right. Those are talents that Activision didn’t have yesterday, but will have tomorrow. Are those talents worth $5.9 billion, though? Without wishing for a moment to cast doubt on the skills of those who work at King, no, they’re not. $5.9 billion isn’t “acquihire” money, and when that’s the kind of cash involved we simply can’t think of this as an “acquihire” deal. Activision didn’t pay that kind of money in order to get access to the talent and experience assembled at King. It paid for King itself, for its ongoing businesses and its IP.
Open the shopping bag, and you might struggle to understand how the contents reach $5.9 billion at the till. King has one remarkable, breakthrough, enormously successful IP – Candy Crush Saga, which still accounts (not including heavily marketed spin-off title Candy Crush Soda Saga) for 39 per cent of the company’s gross bookings. No doubt deeply aware of the danger of being over-reliant on revenues from this single title, King has worked incredibly hard to find success for other games in its portfolio. But even its great efforts in this regard have failed to compensate for falling revenues from Candy Crush, and it’s notable that a fair amount of the “non-Candy Crush Saga” revenue that the company boasts actually comes from Candy Crush Soda Saga. Other titles like Farm Heroes Saga and Pet Rescue Saga are no doubt profitable and successful in their own right, and King would be a sustainable business even without Candy Crush. But it would be a much, much smaller business, and certainly not a $5.9 billion business.
Despite being generally bullish about King’s prospects, then, it’s hard to avoid the feeling that the company has done incredibly well out of this acquisition. The undoubted talent and experience of its teams aside, this is, realistically, a company with one IP worth paying for, and unlike Star Wars or the Avengers, Candy Crush is a very new IP whose longevity is entirely untested and whose potential for merchandising or cross-media ventures is dubious at best. King has done better than most of its rivals in the mobile space at applying some of the lessons of its biggest hit to subsequent games and making them successful, but it shares with every other mobile developer the same fundamental problem: none of them has ever worked out how to bottle the lightning that creates a mega-hit and repeat the success down the line. Absent of another Candy Crush game, the odds are that King’s business would slowly deflate as the air escaped from the Candy Crush bubble, until the company’s sustainable (and undoubtedly profitable) core was what was left. Selling up to Activision at a healthy premium while the company is still “inflated” by the likely unrepeatable success of Candy Crush is a fantastic move for the company’s management and investors, but rather less so for Activision.
Perhaps, though, the whole might be more than the sum of its parts? Couldn’t Activision, holders of some of the world’s favourite console and PC game IP, work with King to leverage that IP and the firm’s reach in traditional games, creating new business at the interaction of their respective specialisations? That’s a big part of what made Pixar so valuable to Disney, for example; the match between their businesses was of vital importance to that deal, and the same can broadly be said for Disney’s other huge acquisitions, Lucasfilm and Marvel. (SoftBank’s purchase of Supercell, by comparison, was rather more of a straightforward market-share land grab.) What could this new hybrid, Activision Blizzard King, hope to achieve in terms of overlap that enhances the value of its various component parts?
Certainly, Activision has some properties that could work on mobile (I’m thinking specifically of Skylanders here, though others may also fit); some Blizzard properties could also probably work on mobile, though I very much doubt that Blizzard (which retains a strong degree of independence within the group) is a good cultural fit for King, and is deeply unlikely to work with it in any manner which gives up the slightest creative control over its properties. King’s properties, meanwhile, don’t look terribly enticing as console or PC games, and conversions done this way would almost certainly defeat the entire purpose of the deal anyway, since the objective is to bolster Activision’s mobile business. The prospect of a mobile game based on Call of Duty or another major console IP may seem superficially interesting, but we’ve been down this road before and it didn’t lead anywhere impressive. Sure, core gamers are on mobile too, but they’ve by and large been nonplussed at best and outraged at worst by the notion of engaging with mobile versions of their console favourites. It’s genuinely hard to piece together the various IPs and franchises owned by King and Activision and see how there’s any winning interaction between them on the table.
This is what makes me keep returning to those other mega-deals – to Star Wars, to Marvel, to Pixar – and finding the contrast between them and Activision / King so extraordinary. Each of those multi-billion dollar deals was carried out by Disney with a very specific, long-term plan in mind that would leverage the abilities of both acquirer and acquired to create something far more than the sum of its parts. Each of those deals had a very clear raison d’être beyond simply “it’ll make us bigger.” Each of those companies fitted with the new parent like a piece of a puzzle. King’s only role in Activision’s “puzzle” is that they do mobile, and Activision sucks at mobile; there’s no sense of any grand plan that will play out.
In all likelihood, Activision has just paid a huge premium for a company which is past the peak of its greatest hit title and into a period of managed decline, not to mention a company with which its core businesses simply don’t fit in any meaningful way. King’s a great company in many respects, but its acquisition isn’t going to go down as a great deal for Activision – and we can expect to see plenty of that $5.9 billion being frittered away in goodwill write-downs over the coming few years.