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Is The Steam OS Really Good?

November 19, 2015 by Michael  
Filed under Computing

Benchmarks for Valve’s Steam machines are out and it does not look like the Linux powered OS is stacking up well against Windows.

According to Ars Technica the SteamOS gaming comes with a significant performance hit on a number of benchmarks.

The OS was put through Geekbench 3 which has a Linux version. The magazine used some mid-to-late-2014 releases that had SteamOS ports suitable for tests including Middle-Earth: Shadow of Mordor and Metro: Last Light Redux.

Both were intensive 3D games with built-in benchmarking tools and a variety of quality sliders to play with (including six handy presets in Shadow of Mordor’s case).

On SteamOS both games had a sizable frame rate hit. We are talking about 21- to 58-percent fewer frames per second, depending on the graphical settings. On our hardware running Shadow of Mordor at Ultra settings and HD resolution, the OS change alone was the difference between a playable 34.5 fps average on Windows and a 14.6 fps mess on SteamOS.

You would think that Valve’s own games wouldn’t have this problem, but Portal, Team Fortress 2, and DOTA 2 all took massive frame rate dips on SteamOS compared to their Windows counterparts.

Left 4 Dead 2 showed comparable performance between the two operating systems but nothing like what Steam thought it would have a couple of years ago.



Samsung Sells LCD Business

November 19, 2015 by Michael  
Filed under Consumer Electronics

Samsung has sold a large LCD display operation in order to concentrate full time on OLED-based products.

A report in Business Korea says that the facility in Cheonan, South Chungcheong Province, has shut down its L5 line, the fifth generation of LCD displays, and begun selling the equipment to other manufacturers.

The age of the equipment meant it was only suitable for notebook and small monitor displays. With OLED now rolling out in phones such as the recent Samsung Galaxy S6 Edge, and big-screen TVs, it seems that the company has decided to make a break with the past.

The Korean manufacturer sold off its fourth generation production line to a Chinese company last year. A spokesman for Samsung Display confirmed: “The company shut down the L5 line last month and is seeking companies that are willing to acquire idle equipment.”

Although the equipment and the products it produces may seem outdated, there is still a huge market for this stuff in lower end electronics. Some analysts believe that there are tens of billions of Korean Won in any sale. Ten billion Won is about £5.6m, which doesn’t sound nearly as much but is still better than poke in the eye.

The Cheonan factory is likely to be converted to make OLED products, with talk of deals for AMOLED phone displays for Huawei and even an acceleration of its on-again-off-again Ernie and Bert relationship with Apple said to be at the heart of the decision to ramp up production.

Samsung still operates three LCD production lines, but analysts question if this is the beginning of a move to OLED production only, and if so, what effect that will have on the company as demand for cheaper LCD screens continues to grow, with production ramping up in China.

Samsung has lost market share in the end user market with recent Galaxy products failing to sell as well as their predecessors. As such these component deals are the lifeblood of the business, with a contract to produce high-end screens for Apple alone worth billions.



Is Activision’s Move To Buy King A Smart One?

November 6, 2015 by Michael  
Filed under Gaming

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.

Will The Low End Mobile Games Market Disappear?

November 2, 2015 by Michael  
Filed under Gaming

In the mobile gaming space, change occurs quickly and often. In the seven years since the App Store revitalised a previously disjointed and granular market, almost every important aspect of production, distribution, marketing and consumption has been upturned several times. Smart developers learned to move quickly, primed for instant response and rapid iteration, in order to keep pace with a constantly shifting environment.

For mobile’s biggest companies, Kabam’s Aaron Loeb says, this way of thinking no longer suits the marketplace. “Five years ago mobile could best be characterised as a market where the best attribute you could have as a developer was speed. Today, the best attribute you can have as a developer is reliability. That requires different studios, that requires different leadership, and that requires different ways of thinking about steering development.”

Loeb left a senior position at Electronic Arts for Kabam in June 2014, the first in a run of major hires that also saw Zynga’s Mike Verdu and EA’s Nick Earl arrive at the company. Kevin Chou, Kabam’s CEO, had steered the company from a dependence on Facebook to its own web platform,, and then from there to mobile, the company emerging stronger and more successful each time. Loeb, Verdu and Early were hired in a conscious attempt to pivot once again, preparation for what Chou believed soon become a more settled and predictable place to do business.

Broader product strategies used to work, Loeb says, echoing an idea he expressed in a talk that proved to be the highlight of DICE Europe last month. Ever since the first games with in-app purchases appeared on the App Store in North America and Europe five years ago, the collective confusion over what constituted a ‘good’ product encouraged a “throw spaghetti against the wall and see what sticks” culture. Player taste and behaviour has changed, Loeb says, and the companies with the will – and the resources – to monitor and understand those factors have a clearer idea about the qualities necessary for success in mobile.

A company like Kabam can now place its bets with greater confidence than ever before. Those bets will be fewer, bolder and bigger, and they will ultimately lead to what Loeb has called – on his Linkedin profile, no less – “the next generation of free-to-play games.”

“Players are demanding games with more compelling loops, a richer sense of gameplay satisfaction,” he says. “The historical notion of what that means – from the console industry – is deep immersion, 80-hours of gameplay, you can disappear into your man or woman cave and never come up for air. That is not great mobile gameplay.

“Games that are purely versions of Solitaire – minimal attention, brain-clearing exercises – will always have their place in mobile, but more sophisticated mobile consumers want games they can have meaningful relationships with. So characters they care about, and other players they can care about, in ways both good and ill.

“The other thing that will be really prevalent will be an emerging and changing sense of what people will pay for, and what works in free-to-play… I can’t give you an exact answer to [what that will be], and not because I secretly know the answer and won’t tell you. It’s because it’s happening right now, and it is one of the most interesting things happening right now.”

Certain aspects of the answer can be found in two Kabam releases from the recent past: Marvel Contest of Champions, which is still among the top-grossing iOS games almost a year after launch, and Spirit Lords, which launched to considerable fanfare in May this year. Spirit Lords, in particular, displayed an uncommon degree of ambition: a new IP with lavish production values, an all-star development team, and no pre-existing brand awareness to use as a crutch.

“The point is that we’re taking the best design elements of those traditional games that our team members have been building for years – Diablo, Dragon Age, real classics – and bring them truly into mobile,” Loeb says. “We’re not trying to recreate your love of Diablo in the Nineties. We’re trying to create a new language of games for mobile.”

Such things don’t come cheap, of course, and that kind of investment demands a successful launch. Only two or three years ago, I heard very smart people advise mobile developers to launch a minimum viable product; to use the live, reactive nature of the App Store to shape what those games would become. With a game like Spirit Lords, however, there isn’t even a hint of uncertainty, no optimistic air of ‘we’ll see how it goes.’ To use Loeb’s own comparison, Kabam wasn’t throwing spaghetti at the wall with this one.

“That’s 100 per cent accurate. Kabam has engaged in a significant shift, and I believe that the whole industry will engage in that shift,” he says. “It is these launches that set the trajectory of a title. The launch is a big deal in mobile now, in a way that it wasn’t a few years ago. You had the sense then that you could build a business over two years. You still can do that, by the way, but you don’t get two chances to make a first impression.

“We are certainly thinking about how to make a very compelling, very satisfying experience at launch, which then continues to grow after launch… We don’t agree with [MVP strategy] any more. We believe we can look at the market now, and see the tastes of the customer and the player, and we can determine at some root level what is a good game and what is a bad game. That doesn’t mean that if you release a good game it will succeed – it’s still an incredibly competitive market – but at the very least you can have more influence on the outcome than treating it all like a coin toss.”

This kind of thinking is now commonplace among the big mobile developers. Earlier this month, Machine Zone’s Gabriel Leydon predicted that the most successful companies would soon be releasing just one or two games a year, with more and more money coming from an ever decreasing slate of products. The market remains crowded and chaotic, but the way Kabam, Machine Zone and others like them are setting up for the future will impose a kind of order – one not dissimilar to that which arose due to the rocketing costs of AAA console development, when many so studios discovered that they could no longer compete on such an uneven field of play.

“The launch is a big deal in mobile now, in a way that it wasn’t a few years ago”

“It is too early to say it’s gonna be the exact same phenomenon as console, and the economic factors of the industry are different enough that I don’t think it will be the exact same,” Loeb says. “In part, the middle fell out of console because the consumer for small and mid-sized games left to go to mobile and free-to-play. That was a pretty big part of that phenomenon.”

Whether those developers left through choice or necessity is a crucial distinction, of course. As is the question of where, exactly, those developers will turn if this age of “fewer, bigger and bolder games” has a similar fallout to the consolidation of high-end development in the last console generation. Loeb certainly doesn’t dismiss it as a possibility, and he admits that the companies worst affected by the shift will be further down the chain. With console, the middle of the market dropped away. With this next phase of mobile, it will be the little guys.

“The way that mobile and free-to-play as they currently stand will be disrupted is not completely clear,” he says. “The very low end of mobile game development seems likely to go away, or it will truly become like hoping to get hit by lightning. The developer who spends $20,000 throwing something on the marketplace really ought to put that $20,000 in a mutual fund. That’s just not very likely to produce any outcome.

“There’s so much competition, and so much quality product being created, that it will be very, very hard for those games. Harder than it has ever been.”

Will The PC Gaming Space Grow To 30B By 2018?

October 29, 2015 by Michael  
Filed under Gaming

Jon Peddie Research have come up with the recent analysis of the PC hardware gaming market and claim the market is set to grow in the next few years.

Apparenlty, the total gaming hardware marker in 2014 was more than  $24,936 billion in 2014 and it slightly declined in 2015 to $24,684 billion. However, in 2016 it looks like that the gaming hardware market will increase to $26.118 billion and it will reach  $28.253 billion in 2017.

However the record year for gaming hardware will be three years from now as in 2018 JPR believes that the gaming hardware market is set to grow to $30.092. Of course by then we will have forgotten that Mr Peddie made his prediction so if he gets it wrong no one will remember.

PC Gaming Hardware Market 2014 2015 2016 2017 2018
Total – numbers in   millions $24,936 $24,684 $26,118 $28,253 $30,092

In his report, Ted Pollak, Senior Analyst at JPR wrote

“This cycle, unlike any for the past 15 years, will inspire gamers to upgrade their displays. 27 inch and larger 4K/UHD displays are reaching mass market pricing levels and produce an incredible experience allowing much wider field of view and greater detail. The financial outlay for these display upgrades alone is billions of dollars over the coming years”.

Jon Peddie, President of JPR adds

“In addition to the cost of the new display technology, gamers are going to need the computing muscle to drive Triple A game engines at over 60 frames per second, and that horsepower comes at a premium”. Sixty frames per second is considered the gold standard in PC gaming and many prefer even faster speeds, at least twice that number if VR is involved. ”

It is interesting to note  that the PC gaming peripherals market is projected to make $3.6 billion in 2015. These are cheaper and easier to change and  gamers wear out mice, keyboards and headset much faster than  other components.

JPR believes that mainstream gaming notebook and desktop will have to fight with TV gaming optimised PCs including the ones from Alienware iBuyPower and a few others. We do agree that many gamers will be changing their monitors to at least 25×14 or the full 4K experience. To run high end triple A games at 4K you would need a lot of gaming power and a card such as Greenland with HBM 2 from AMD or Pascal high end class from Nvidia. Both of these will arrive in 2016. Gamers who want over 60 FPS in current high end titles might want to get two of the Geforce GTX 980 or higher end cards or a dual Fury from AMD.

If you want the VR glasses in 2016 you will need double the power but we will have to see the adoption rate of these gaming devices before we think that will take off. VR gaming will become significant segment eventually  but definitely not overnight.



Sony To Acquire Toshiba’s Sensor Business

October 26, 2015 by mphillips  
Filed under Consumer Electronics

Toshiba Corp is offload its image sensor business to Sony Corp for around 20 billion yen ($164.68 million) as part of a restructuring plan laid out earlier this year, sources with knowledge of the deal said on Saturday.

Toshiba, whose businesses range from laptops to nuclear power, is undergoing a restructuring after revelations this year that it overstated earnings by $1.3 billion going back to fiscal 2008/09.

Image sensors, which are used in digital cameras and smartphones, are part of Toshiba’s system LSI semiconductor business. Toshiba plans to sell its image sensor manufacturing plant in Oita, southern Japan, and pull out of the sensor business altogether, said the sources, who declined to be identified.

The sale is likely to be finalized soon, the sources said.

Toshiba is considering several options for its system LSI semiconductor business and its discrete semiconductor business and that debate is ongoing, a Toshiba official said when contacted.

An official from Sony declined to comment.

Masashi Muromachi, who became Toshiba’s CEO following the accounting scandal, has promised to restructure lower-margin businesses.

The deal for the image sensor business would be the beginning of the restructuring, Nikkei reported earlier on Saturday.

Sony is already a dominant player in the image sensor market, with its products used in phones made by China’s Xiaomi and India’s Micromax Informatix Ltd.



Did Japanese Game Development Leave With Kojima

October 22, 2015 by Michael  
Filed under Gaming

Hideo Kojima has left the building. The New Yorker has confirmed that the famous game creator’s last day at Konami has come and gone, with a farewell party attended by colleagues from within and without the country – but not, notably, by Konami’s top brass. Only a couple of months after his latest game, Metal Gear Solid V: The Phantom Pain, clocked up the most commercially successful opening day’s sales of any media product in 2015, Kojima has left a studio facing shutdown – its extraordinary technology effectively abandoned, its talent scattered, seemingly unwanted, by a company whose abusive and aggressive treatment of its staff has now entered the annals of industry legend.

It’s not exaggerating to say that an era came to a close as Kojima walked out the door of the studio that bore his name for the last time. For all of Konami’s the-lady-doth-protest-too-much claims that it’s not abandoning the console market, actions matter far more than PR-moderated words, and shutting down your most famous studio, severing ties with your most successful creator in the process, is an action that shouts from the rooftops. Still, there’s some truth to Konami’s statements; it’s unlikely to abandon the console versions of Winning Eleven / Pro Evolution Soccer, or of Power Pro Baseball, any time soon, though more and more of the firm’s focus will be on the mobile incarnations of those franchises. The big, expensive, risky and crowd-pleasing AAA titles, though? Those are dead in the water. Metal Gear Solid, Silent Hill (whose reincarnation, with acclaimed horror director Guillermo del Toro teaming up with Kojima at the helm, is a casualty of this change of focus), Suikoden, Castlevania, Contra… Any AAA title in those franchises from now on will almost certainly be the result of a licensing deal, not a Konami game.

One can criticise the company endlessly for how this transition has been handled; Konami has shown nigh-on endless disrespect and contempt for its creative staff and, Kojima himself aside, for talented, loyal workers who have stuck by the firm for years if not decades. It richly deserves every brickbat it’s getting for how unprofessionally and unpleasantly it’s dealt with the present situation. It’s much, much harder to criticise the company for the broader strokes of the decisions being made. Mobile games based on F2P models are enormous in Japan, not just with casual players but with the core audience that used to consume console games. The transition to the “mid-core” that mobile companies talk about in western territories is a reality in Japan, and has been for years; impressively deep, complex and involved games boast startling player numbers and vastly higher revenue-per-user figures than most western mobile games could even dream of. Konami, like a lot of other companies, probably expects that western markets will follow the same path, and sees a focus on Japan’s mobile space today as a reasonable long-term strategy that will position it well for tomorrow’s mobile space in the west.

Mobile is the right business to be in if you’re a major publisher in Japan right now. It’s where the audience has gone, it’s where the revenues are coming from, and almost all of the cost of a mobile hit is marketing, not development. Look at this from a business perspective; if you want to develop a game on the scale of Metal Gear Solid V, you have to sink tens of millions of dollars (the oft-cited figure for MGSV is $80 million) into it before it’s even ready to be promoted and sold to consumers. That’s an enormous, terrifying risk profile; while the studio next door is working on mobile games that cost a fraction of that money to get ready for launch, with the bulk of the spend being in marketing and post-launch development, which can be stemmed rapidly if the game is underperforming badly. Sure, mobile games are risky as all hell and nobody really knows what the parameters for success and failure are just yet, but with the time and money taken to make a Metal Gear Solid, you can throw ten, twenty or thirty mobile games at the wall and see which one sticks. The logic is compelling, whether you like the outcome or not.

Here’s what nobody, honestly, wants to hear – that logic isn’t just compelling for Konami. Other Japanese publishers are perhaps being more circumspect about their transitions, but don’t kid yourself; those transitions are happening, and Konami will not be the last of the famous old publishers to excuse itself and slip away from the console market entirely. When Square Enix surveys the tortured, vastly expensive and time-consuming development process of its still-unfinished white elephant Final Fantasy XV, and then looks at the startling success it’s enjoyed with games like Final Fantasy Record Keeper or Heavenstrike Rivals on mobile, what thoughts do you think run through the heads of its executives and managers? Do you think Sega hasn’t noticed that its classic franchises are mostly critically eviscerated when they turn up as AAA console releases, but perform very solidly as mobile titles? Has Namco Bandai, a firm increasingly tightly focused on delivering tie-in videogames for Bandai’s media franchises, not noticed the disparity between costs and earnings on its console games as against its mobile titles? And haven’t all of these, and others besides, looked across from their TGS stands to see the gigantic, expensive, airship-adorned stands of games like mobile RPG GranBlue Fantasy and thought, “we’re in the wrong line of work”?

Kojima isn’t the first significant Japanese developer to walk out of a publisher that no longer wants his kind of game – but he’s the most significant thus far, and he’s certainly not going to be the last. The change that’s sweeping through the Japanese industry now is accelerating as traditional game companies react to the emergence of upstarts grabbing huge slices of market share; DeNA and Gree were only the first wave, followed now by the likes of GungHo, CyGames, Mixi and Colopl. If you’re an executive at a Japanese publisher right now, you probably feel like your company is already behind the curve. You’ve studied plenty of cases in business school in which dominant companies who appeared unassailable ended up disappearing entirely as newcomers took the lion’s share of an emerging market whose importance wasn’t recognised by the old firms until it was too late. You go home every evening (probably around midnight – it’s a Japanese company, after all) and eat your microwave dinner in front of TV shows whose ad breaks are packed with expensive commercials for mobile games from companies that hadn’t even appeared on your radar until a year or two ago, and none from the companies you’d always considered the “key players” in the industry. You’re more than a little bit scared, and you really, really want your company to be up to speed in mobile, like, yesterday – even if that means bulldozing what you’re doing on console in the process.

This is not entirely a bleak picture for fans of console-style games. Japanese mobile games really are pushing more and more towards mid-core and even hardcore experiences which, though the monetisation model may be a little uncomfortable, are very satisfying for most gamers; the evolution of those kinds of games in the coming years will be interesting to watch. Still, it will be a very long time before there’s a mobile Metal Gear Solid or a mobile Silent Hill; some experiences just don’t make sense in the context of mobile gaming, and there is a great deal of justification to the fears of gamers that this kind of game is threatened by the transition we’re seeing right now.

I would offer up two potential silver linings. The first is that not all companies are in a position to break away from console (and PC) development quite as dramatically as Konami has done. Sega, for example, is tied to those markets not least by its significant (and very successful) investments in overseas development studios, many of which have come about under the auspices of the firm’s overseas offices. Square Enix is in a similar position due to its ownership of the old Eidos studios and franchises, along with other western properties. Besides, despite the seemingly permanent state of crisis surrounding Final Fantasy XV, the firm likely recognises that the Final Fantasy franchise requires occasional major, high-profile console releases to keep it relevant, even if much of its profit is found in nostalgic retreads of past glories. Capcom, meanwhile, is deeply wedded to console development – it’s a much smaller company than the others and perhaps more content to stick to what it knows and does well, even if console ends up as a (large) niche market. (Having said that, if a mobile version of Monster Hunter springs to the top of the App Store charts, all bets are probably off.)

“Hideo Kojima left Konami because he wants to make a style of game that doesn’t fit on mobile F2P – and that’s, in the long run, probably a good thing”

The other silver lining is perhaps more substantial and less like cold comfort. Hideo Kojima left Konami because he wants to make a style of game that doesn’t fit on mobile F2P – and that’s, in the long run, probably a good thing. He joins a slow but steady exodus of talent from major Japanese studios over the past five years or more. The kind of games which people like Kojima – deeply involved with and influenced by literature, film and critical theory – want to make don’t fit with publishers terribly well any more, but that doesn’t mean those people have to stop making those games. It just means they have to find a new place to make them and a new way to fund them. Kojima’s non-compete with Konami supposedly ends in a few months and then I suspect we’ll hear more about what he plans; but plenty of former star developers from publishers’ internal studios have ended up creating their own independent studios and funding themselves either through publisher deals or, more recently, through crowdfunding. Konami’s never likely to make another game like Castlevania: Symphony of the Night, but that doesn’t stop Koji Igarashi from putting Bloodstained: Ritual of the Night on Kickstarter. Sega knocked Shenmue on the head, but a combination of Sony and Kickstarter has sent Yu Suzuki back to work on the franchise. Keiji Inafune also combined crowdfunding money with publisher funding for Mighty No. 9. Perhaps the most famous and successful of all breakaways from the traditional publishing world, though, is of a very different kind; Platinum Games, which has worked with many of the world’s top publishers in recent years while retaining its independence, is largely made up of veterans of Capcom’s internal studios.

Whichever of those avenues Kojima ends up following – the project-funding style approach of combining crowdfunding and publisher investment, or the Platinum Games approach of founding a studio and working for multiple publishers – there is no question of him walking away from making the kind of games he loves. Not every developer has his sway, of course, and many will probably end up working on mobile titles regardless of personal preference – but the creation of Japanese-style console and PC games isn’t about to end just because publishers are falling over themselves to transition to mobile. As long as the creators want to make this kind of game, and enough consumers are willing to pay for them (or even to fund their development), there’s a market and its demands will be filled. The words “A Hideo Kojima Game” will never appear on the front of a Konami title again; but they’ll appear somewhere, and that’s what’s truly important in the final analysis.

Sony Says 2016 Is Make-Or-Break Year For Smartphone Unit

October 8, 2015 by mphillips  
Filed under Mobile

Sony Corp’s chief executive pegged 2016r as a make-or-break year for its struggling smartphones, saying it could consider other options for the unit if it failed to turn profitable.

After years of losses, Chief Executive Kazuo Hirai has engineered a successful restructuring drive at Sony, with recent results showing improvement thanks to cost cuts, an exit from weak businesses such as PCs, as well as strong sales of image sensors and videogames. But its smartphone business has been slow to turn around.

“We will continue with the business as long as we are on track with the scenario of breaking even next year onwards,” Hirai told a group of reporters on Wednesday. “Otherwise, we haven’t eliminated the consideration of alternative options.”

Sony and other Japanese electronics makers have struggled to compete with cheaper Asian rivals as well as the likes of Apple Inc and Samsung Electronics.

Sony phones including its Xperia-branded smartphones held only 17.5 percent of the market in Japan and less than 1 percent in the North America, according to company data last year.

The electronics giant in July lowered its forecast for its mobile communications unit to an operating loss of 60 billion yen in the current fiscal year from an earlier estimate of a 39 billion yen loss.

“I do have a feeling that a turnaround in our electronics business has shown progress. The result of three years of restructuring are starting to show,” he said. “But we still need to carry out restructuring in smartphones.”



Has Sony Lost The Handheld Gaming Market?

October 6, 2015 by Michael  
Filed under Gaming

Sony’s Worldwide Studios boss Shuhei Yoshida was only stating the obvious when he told the audience at EGX that the “climate is not healthy” for a successor to the company’s struggling handheld console, the PlayStation Vita, but sometimes even the obvious makes for an interesting statement, depending upon who’s stating it.

The likelihood of another handheld console from Sony turning up in the foreseeable future is considered to be incredibly low by almost everyone, and it’s notable that there’s never been so much as a whisper about what such a successor might look like or comprise; it’s so vanishingly unlikely to come to pass, why even bother speculating on what might be? Yet for commentators and analysts to dismiss the notion of Sony carrying on in handheld is one thing; for such a senior figure at the company to seemingly join in that dismissal is another. The final step of the long and strange handheld journey which Sony started with the announcement of the PSP’s development all the way back in 2003 won’t come until the Vita reaches its official end-of-life, but Yoshida’s statement is the moment when we learned for certain that the company itself reckons the handheld market is past saving.

It’s not that there’s any lack of affection for the Vita within Sony, including Yoshida himself, whose Twitter feed confirms that he is an avid player of the system. Even as weak sales have essentially rendered AAA development for the Vita financially unsustainable, the firm has done a great job of turning it into one of the platforms of choice for break-out indie hits, and much of the success of the PS4 as a platform for indie games can be traced back to the sterling work Sony’s team did on building relationships and services for indies on the Vita. For that alone, it’s a shame that the console will apparently be the last of its line; there are some games that simply work better on handhelds than on home consoles, and some developers who are more comfortable working within the limitations of handheld systems.

Yoshida is right, though; mobile phones are the handheld killer. They may not be as good at controlling the kind of games that the PSP and Vita excelled at, but mobile devices are more powerful, more frequently updated, carried everywhere and heavily subsidised by networks for most users. Buttons and sticks make for wonderful game controllers, as Yoshida noted, but when the competition has a great multi-touch screen and accelerometer, a processor faster than most laptops only a few years ago, and is replaced every couple of years with a better model, the best set of buttons and sticks on earth just can’t compete for most consumers. Even if Sony could release a Vita 2 tomorrow which leapfrogged the iPhone 6S, within a year Apple, Samsung and others would be back out in front.

That’s not to say that this battle can’t be won. Nintendo has still managed to shift a dramatic number of 3DS consoles despite the advent of the smartphone era – though in typically Nintendo style, it chose not to play the competition at their own game, favouring a continuation of the DS’ odd form-factor, a 3D screen and a low-cost, low-power chipset over an arms race with smartphones (and, indeed, with the Vita). Crucially, Nintendo also pumped out high quality software on the 3DS at a breathtaking pace, at one point coming close to having a must-buy title on the system every month. Nintendo’s advantage, as ever, is its software – and at least in part, its longevity in the handheld market is down to the family-friendly nature of that software, which has made the 3DS popular with kids, who usually (at least in Japan, the 3DS’ best performing market) do not carry smartphones and generally can’t engage with F2P-style transactions even if they do. Vita, by comparison, aimed itself at a more adult market which has now become saturated with phones and tablets.

So; is that the end of Sony’s handheld adventure? Trounced by Nintendo twice over, first with the DS’ incredibly surprising (if utterly obvious in hindsight) dominance over the PSP, then with the 3DS’ success over the Vita, Sony nonetheless carved out an impressive little market for the PSP, at least. Vita has failed to replicate that success, despite being an excellent piece of hardware, and 12 years after news of the PSP first reached gamers’ eager ears, it looks like that failure and the shifting sands of the market mean Sony’s ready to bail out of handhelds. With the stunning success of PS4 and the upcoming PlayStation VR launch keeping the company busy, there’s seemingly neither time, nor inclination, nor resources to try to drive a comeback for the Vita – and any such effort would be swimming against the tide anyway.

I would not go so far as to say that Sony is dropping out of handheld and portable gaming entirely, though. I think it’s interesting, in the context of Yoshida’s comments, to note what the company did at TGS last month – where a large stand directly facing the main PlayStation booth was entirely devoted to the Sony Xperia range of phones and tablets, and more specifically to demonstrating their prowess when it comes to interacting with a PS4. The devices can be hooked up to a PS4 controller and used for remote play on the console; it’s an excellent play experience, actually significantly better in some games than using the Vita (whose controls do not perfectly map to the controller). I use my Vita to do simple tasks in Final Fantasy XIV on my PS4 while the TV is in use, but it wouldn’t be up to the task of more complex battles or dungeons; I’d happily do those on an Xperia device with a proper controller, though.

Remember when the Vita launched and much of the buzz Sony tried to create was about how it was going to interact with the PS4? That functionality, a key selling point of the Vita, is now on Xperia, and it’s even better than it was on the devoted handheld. Sony’s phones also play Android games well and will undoubtedly be well-optimized for PlayStation Now, which means that full-strength console games will be playable on them. In short, though the Vita may be the last dedicated handheld to carry the Sony brand, the company has come a long way towards putting the core functions of Vita into its other devices. It’s not abandoning handheld gaming; it’s just trying to evolve its approach to match what handheld gaming has become.

It’s not a perfect solution. Not everyone has or wants an Xperia device – Japan is the best performing market for Sony phones and even here, Apple is absolutely dominant, with iPhones holding more than half of the market share for smartphones. If Sony is being clever, though, it will recognize that the success of the PS4 is a great basis from which to build smartphone success; if the Xperia devices can massively improve the user experience of the PS4, many owners of those devices may well consider a switch, if not to a new phone then at least to one of the Xperia tablets. It might also be worth the company’s time to think a little about the controllers people will hook up to the Xperia to play games; I love the PS4 controller, but it’s bulky to carry in a bag, let alone a pocket. If the firm is serious about its phones and tablets filling the handheld gap, a more svelte controller designed specifically for Xperia (but still recognizably and functionally a PS4 pad) would be an interesting and worthwhile addition to the line-up.

Nonetheless, what’s happening with Xperia – in terms of remote play, PS Now, and so on – is an interesting look at how consoles and smartphones might co-exist in the near future. The broad assumption that smart devices will kill off consoles doesn’t show any sign of coming true; PS4 and Xbox One are doing far, far better than PS3 and Xbox 360 did, and while the AAA market is struggling a little with its margins, the rapid rise of very high quality indie titles to fill the gap left by the decline of mid-range games in the previous generation means the software market is healthier than it’s been for years. If consoles aren’t going away, then we need to be thinking about how they’ll interact with smart devices – and if that’s what Sony’s doing with Xperia and PlayStation, it’s a strategy that could pay off handsomely down the line.

IBM Will Use Apache Spark To Find E.T.

October 2, 2015 by Michael  
Filed under Computing

IBM is using Apache Sparke to analyse radio signals for signs of extra-terrestrial intelligence.

Speaking at Apache: Big Data Europe, Anjul Bhambrhi, vice president of big data products at IBM, talked about how the firm has thrown its weight behind Spark.

“We think of [Spark] as the analytics operating system. Never before have so many capabilities come together on one platform,” Bhambrhi said.

Spark is a key project because of its speed and ease of use, and because it integrates seamlessly with other open-source components, Bhambrhi explained.

“Spark is speeding up even MapReduce jobs, even though they are batch oriented by two to six times. It’s making developers more productive, enabling them to build applications in less time and with fewer lines of code,” she claimed.

She revealed IBM is working with Nasa and Seti to analyse radio signals for signs of extra-terrestrial intelligence, using Spark to process the 60Gbit of data generated per second by various receivers.

Other applications IBM is working on with Spark include genome sequencing for personalised medicine via the Adam project at UC Berkeley in California, and early detection of conditions such as diabetes by analysing patient medical data.

“At IBM, we are certainly sold on Spark. It forms part of our big data stack, but most importantly we are contributing to the community by enhancing it,” Bhambrhi said.

The Apache: Big Data Europe conference also saw Canonical founder Mark Shuttleworth outline some of the key problems in starting a big data project, such as simply finding engineers with the skills needed just to build the infrastructure for operating tools such as Hadoop.

“Analytics and machine learning are the next big thing, but the problem is there are just not enough ‘unicorns’, the mythical technologists who know everything about everything,” he explained in his keynote address, adding that the blocker is often just getting the supporting infrastructure up and running.

Shuttleworth, pictured above, went on to demonstrate how the Juju service orchestration tool developed by Canonical could solve this problem. Juju enables users to describe the end configuration they want, and will automatically provision the servers and software and configure them as required.

This could be seen as a pitch for Juju, but Shuttleworth’s message was that the open-source community is delivering tools that can manage the underlying infrastructure so that users can focus on the application itself.

“The value creators are the guys around the outside who take the big data store and do something useful with it,” he said.

“Juju enables them to start thinking about the things they need for themselves and their customers in a tractable way, so they don’t need to go looking for those unicorns.”

The Apache community is working on a broad range of projects, many of which are focused on specific big data problems, such as Flume for handling large volumes of log data or Flink, another processing engine that, like Spark, is designed to replace MapReduce in Hadoop deployments.



Can eSports Become A Billion Dollar Industry?

October 1, 2015 by Michael  
Filed under Gaming

Over the last few years, competitive gaming has made huge strides, building a massive fanbase, supporting the rise of entire genres of games and attracting vast prize pots for the discipline’s very best. Almost across the board, the phenomenon has also seen its revenues gaining, as new sponsors come on board, including some major household names. Sustaining the rapidity of the growth of eSports is going to be key to its long term success, maintaining momentum and pushing it ever further into the public consciousness.

In order to do that, according to Newzoo, eSports need to learn some lessons from their more traditional athletic counterparts. Right now, the research firm puts a pin in eSports revenues of $2.40 per enthusiast per year, a number which is expected to bring the total revenue for the industry to $275 million for 2015 – a 43 per cent increase on last year. By 2018, the firm expects that per user number to almost double, reaching $4.63.

That’s a decent number, representing very rapid growth, but it pales in comparison to Newzoo’s estimates on the average earning per fan for a sport like Basketball, which represents a $14 per fan revenue – rising to $19 where only the major league NBA is a factor. To catch up to numbers like this is going to take some time, but Newzoo’s research has listed five factors it considers vital to achieving that aim.


Right now, MOBAs are undeniably the king of the eSports scene, and one of the biggest genres in gaming. The king of MOBAs, League of Legends, is the highest earning game in the world, whilst others like Valve’s DOTA 2 are also represent huge audiences and revenues, including the prestigious annual International tournament. Shooters are also still big business here, with Activision Blizzard recently announcing the formation of a new Call of Duty League.

Nonetheless, MOBAs are still the mainstay and if you don’t like them, you’re not going to get too deeply into competitive gaming as a fan. Although their popularity with the athletes is going to make them a difficult genre to shift, Newzoo says that broadening the slate is a key factor to growth.

Geographic reach

The major tournaments bring players, and audiences, from all over the world, but it’s often only the very top tier of players who can find themselves a foothold in regular competition. Major territories like the US, South Korea and Europe have some local structure, but again League of Legends stands almost alone in its provision of local infrastructure. By expanding a network of regular leagues and competitions to more countries, eSports stands a much better chance of building a grassroots movement and capturing more fans.


Already a problem very much on the radar of official bodies and players around the world, the introduction of regulation is always a tough transition for any industry. However, when you’re putting up millions of dollars in prize money, you can’t have any grey areas around doping, match fixing and player behaviour at events. These young players are frequently thrust into a very rapid acceleration of lifestyle, fame and responsibility – a heady mixture which can prove to be a damaging influence on many. Just like in other sports, stars need protecting and nurturing – and the competitions careful monitoring – in order for growth to occur without scandal and harm to its stars.

Media rights

Dishing out the rights to broadcast, promote and profit from eSports is a complex issue. Whilst games like football are worldwide concerns, with media rights a hotly contested and constantly shifting field, nobody owns the games themselves. With eSports, every single aspect of the games being played is a trademark in itself, with its owners understandably keen to protect them. However, with fan promotion such a key part of the sport’s growth, and services like Twitch a massive factor in organic promotion, governing the rights of distribution is only going to become a murkier and more complex business as time goes on. With major TV networks, well used to exclusivity, now starting to show an interest, expect this to become a hot topic.

Conflict between new and old media

That clash of worlds, between the fresh and agile formats of digital user-sourced broadcasting and the old network model is also going to be source of many of its own problems. One or the other, or even both, is going to have to adapt fast for there to be a convivial agreement which betters the industry as a whole. There’s currently considerable pushback from established media against the idea of eSports becoming accepted as a mainstream activity, fuelled in no small part by their audiences themselves, so a lo of attitudes need to change. Add to that the links between these media giants and many of the world’s richest advertisers and you can start to see the problem.


Has The Game Console Market Reached Capacity?

September 24, 2015 by Michael  
Filed under Gaming

The console business will hit a wall in terms of sales in this generation, and that’s okay. According to Wedbush analyst Michael Pachter, the subsequent shift away from the traditional console model will be a catalyst for even more growth.

Speaking at DICE Europe last week, Pachter discussed a provocative and divisive topic: the end of the console era.

“The console installed base is as big as it’s ever going to get,” he said. “[This] generation is not going to be bigger than the last generation. We’re going to be about the same.

“The Wii U is going to sell 20 million units compared to 100 million for the Wii. The PlayStation 4 is going to sell 120 million or 130 million – that’s great. The Xbox One will sell 100 million to 110 million – that’s great. Add it all together and it’s 260 million units, maybe, and the last cycle was 270 million.”

This take on the trajectory of the PS4 / Xbox One generation must be assessed in the context of a world that contains far more people who play games than at any time in history – thanks in part to the impact of the Wii, and in larger part to the rapid emergence of smartphones and the app economy. If Pachter’s analysis proves to be accurate, it would suggest that consoles are a limiting factor on the growth potential of the games industry, putting some of the medium’s best and most alluring products beyond the reach of the vast majority of people.

“This is the last real console cycle,” Pachter continued. “I don’t mean that Microsoft, Sony and Nintendo will go bankrupt and shut down – they will not. Each of them will make another console, some people will buy them, and the next console cycle will be to this console cycle what the 3DS is to the DS. The 3DS is selling about 15 million units a year, the DS had five consecutive years where it sold more than 26 million. So about half as big.

“So when I say that this console cycle is the last console cycle, the reason is that console games shouldn’t require a console. And I’m not talking about the cloud.”

What games require, Pachter said, is a CPU, a GPU, storage, a controller, and a display. In the coming years, the need to purchase a console to access the first four will be diminished as smartphone and set-top box hardware becomes more sophisticated. By the time this console generation nears its end, “you’re going to have a CPU/GPU in your house that is connected to your television,” whether that be the latest model of the iPhone or a Fire TV box from Amazon.


The switch, Pachter suggested, was simply a matter of the hardware reaching a certain degree of technical sophistication; to use one of his own examples, the point when an affordable set-top box from Amazon can run Call of Duty, a brand chosen by Pachter due to its popularity among online console players. For a publisher like Activision that switch would be easy to justify, opening up the possibility of controlling the multiplayer revenues that currently go to Microsoft and Sony in the form of Xbox Live and PSN subscription fees.

For the consumer, the benefit is the removal of the need to purchase a console, and the ability to exert more control over their gaming habits.

“What happens when you lower the entry so nobody has to buy a console?” Pachter asked. “If Activision sells 20 million copies of Call of Duty to people with a console, how many people would buy it who don’t have a console? I’m guessing 20 million more. To make it easier for the Europeans in the room, how many more people would play FIFA if a console wasn’t required? Another 20 million.

Pachter shared some detailed speculation on how this structure might work, from a publisher charging a dollar or two for monthly access to its biggest online game, to the major publishers forming a consortium that charges one fee and portions out revenue according to which games received the most play. The point, though, is that console publishers have a clear incentive to work out the details, and the consumer has every reason to embrace the change.

“There’s plenty of 30 or 40-somethings who would like to play FIFA or Call of Duty, but they can’t,” Pachter continued. “They’re not going to buy a console for one game, and I’d say that’s true of every single [console] game made. There’s a market of probably several million people who would never buy a console to play the game, but would absolutely buy the game.”

This could be a solution to the problem that flat console hardware sales in a world crammed with gamers highlights. As the number of players on mobile and other accessible platforms continues to grow, making the biggest brands in gaming available to people who see no value in a $400 box makes a great deal of sense.

“I think the traditional gamer market – which has high standards – does broaden. But the only way you actually see a step function change in that is to pull the console out of the equation, and make it open to people who can’t afford or won’t buy a console,” Pachter said.

“I think this shift to full-game digital downloads, where everybody has the opportunity to play a game without having to invest $399 is a huge opportunity. It’s an opportunity for everyone in the value chain, except the retailer and maybe the console manufacturer.”


Does The Xbox One Mini Exist?

September 1, 2015 by Michael  
Filed under Gaming

The rumor mill might have been a bit broken when it was announced that Microsoft was about to launch an Xbox-mini.

The rumor claimed that Microsoft would be holding a launch event in October where people could expect the company to launch the Surface Pro 4, Lumia flagships and an “Xbox One Mini.”

It was claimed that the X-box mini would be third the size of the current console and lack a Blu-Ray drive.

However Microsoft’s Phil Spencer has now debunked this theory, stating that the rumors are simply “not real”. Although he didn’t say the project didn’t exist just that the rumor that it was coming out in October was “not real.”

Given the nature of reality, and theories that the universe is a holographic game being played two-dimensional gods, we are not ready to dismiss out of hand yet.

While the Xbox One Mini definitely won’t be happening the Lumia flagships; Cityman and Talkman, new Surface tablets including the Surface Pro 4, the eagerly awaited Band 2 and perhaps even a slimmer Xbox One is still a possibility at the event.


Drones To Have Intel Inside

August 31, 2015 by Michael  
Filed under Computing

Chipmaker Intel is taking its competitive game up a notch by investing in its own drones.

Intel has written a check for more than US$60 million to Yuneec International, a Chinese aviation company and drone maker.

This is not the first time that the Chipmaker has invested in drones. It has written smaller amounts for the drone makers Airware and PrecisionHawk. The Yuneec deal is its largest investment in a drone company yet.

Apparently Intel thinks that drones are potential computing platforms for its processors.

Intel CEO Brian Krzanich said he believed in a smart and connected world. And one of the best ways to bring that smart and connected world to everyone and everywhere has been drones.

Amazon and Google are developing drones as they seek new ways to deliver items to consumers, Intel just wants to make sure that its chips are delivering the payload. There is no indication that it is building a secret airforce which it will use to take down competition – that would be silly.

Yuneec makes a range of drones built for aerial photography and imaging. Its technology also powers manned electric aircraft.


IBM Thinks Businesses Should Block TOR

August 28, 2015 by Michael  
Filed under Computing

IBM security research has found that people are using the so-called dark net to launch cyber attacks, force ransomware demands on punters and make distributed denial-of-service (DoS) attacks.

The dark net, accessed via Tor, is often tagged as a threat. The IBM X-Force Threat Intelligence Quarterly 3Q 2015 report identifies a spike in bad traffic and leads with a warning.

The report introduces Tor as the network that takes people to the dark net. We might start calling it the ferryman and the passage across the river Styx, but things are complicated enough.

IBM said that Tor is used by “non-malicious government officials, journalists, law enforcement officials” and bad people alike. It is the latter that should concern us.

“This latest report reveals that more than 150,000 malicious events have originated from Tor in the US alone thus far in 2015,” the report said.

“Tor has also played a role in the growing ransomware attack trend. Attackers have evolved the use of encryption to hold data hostage and demand payment/ransom for the decryption code.”

We have been here before, and ransomware has been a feature of many a security alert this year already. We heard, courtesy of Bitdefender, that ransomware charges start at £320, and are a real pain to deal with. We also heard that it is Android mobile users in the UK who get the worst of the hackers’ grabbing-for-money treatment.

Back at the IBM report, and we find IBM X-Force on the issue. X-Force, which is nothing like X-Men, said that hackers push internet users who are easily fooled by flashy online advertisements into installing the new cyber nightmare. Ransomware, it warns, will separate you from your cash.

“A surprising number of users are fooled by fake/rogue antivirus [AV] messages that are nothing more than animated web ads that look like actual products. The fake AV scam tricks users into installing or updating an AV product they may never have had,” it explains, adding that in some cases people pay the money without thinking.

“Afterward, the fake AV keeps popping up fake malware detection notices until the user pays some amount of money, typically something in the range of what an AV product would cost.”

This establishes the subject as a mark, and the hackers will exploit the opportunity. “Do not assume that if you are infected with encryption-based ransomware you can simply pay the ransom and reliably get your data back,” said IBM.

“The best way to avoid loss is to back up your data. Regardless of whether your backup is local or cloud-based, you must ensure that you have at least one copy that is not directly mapped visibly as a drive on your computer.”

Tor nodes in the US spewed out the most bad traffic in the first half of this year, according to the report, adding up to about 180,000 attacks. The Netherlands is second with around 150,000, and Romania is third with about 80,000.

The bulk of this negative attention lands at technology and communications companies. You might have assumed the financial markets, but you were wrong. IBM said that ICT gets over 300,000 Tor thwacks every six months, manufacturing gets about 245,000, and finance gets about 170,000.

IBM said that the old enemy, SQL injection attacks, is the most common Tor-led threat to come at its customers. Vulnerability scanning attacks are also a problem, and IBM said that the use of the network as a means for distributed DoS attacks should “Come as no surprise”. It doesn’t.

“These attacks combine Tor-commanded botnets with a sheaf of Tor exit nodes. In particular, some of the US-based exit nodes provide huge bandwidth,” explained the report.

“Employing a handful of the exit nodes in a distributed DoS orchestrated by the botnet controller and originating at dozens or hundreds of bot hosts can impose a large burden on the targeted system with a small outlay of attacker resources, and generally effective anonymity.”

There is a lot more. The bottom line is that bad things happen on the dark net and that they come to people and businesses through Tor. IBM said that concerned outfits should just block it and move on, which is along the lines of something that Akamai said recently.

“Corporate networks really have little choice but to block communications to these stealthy networks. The networks contain significant amounts of illegal and malicious activity,” said Akamai.

“Allowing access between corporate networks and stealth networks can open the corporation to the risk of theft or compromise, and to legal liability in some cases and jurisdictions.”

That sounds fine to us, but won’t someone give a thought to those non-malicious government officials out there?