Growth in the tablet market is driven by low-end devices and Android, but AMD’s tablet strategy is driven by Windows and high-performance machines. So AMD’s avoidance of the low end of the market narrows options for people looking for name-brand chips in low-price machines.
AMD chips are in just a handful tablet models. Those AMD chips that are available for tablets are essentially watered-down PC chips with strong graphics capabilities. But the company plans to introduce new chips, code-named Beema and Mullins, for tablets These new chips are based on a new core and designed to provide more performance and battery life.
“If we miss out on some units in the low end, so be it,” said Lisa Su, general manager of AMD’s global business units, during the first-quarter earnings call on Thursday.
AMD executives said they didn’t want to buy their way into the tablet market like Intel, which has been subsidizing tablet makers to use its x86 chips through its “contra revenue” program. Instead, AMD wants to be selective in its product mix, and focus on high-margin and high-value products.
“This idea of contra revenue is foreign to us,” said Rory Read, CEO of AMD, during the call.
AMD could go after tablets priced at $300, but won’t go under that, said Nathan Brookwood, principal analyst at Insight 64.
“They are not chasing bad business,” Brookwood said.
AMD doesn’t have the financial resources to provide subsidies to tablet makers to use its chips, Brookwood said.
Though the tablet market is important, AMD is more concerned about generating revenue from custom chips and other areas, Brookwood said.
AMD makes custom chips for game consoles like Microsoft’s Xbox One and Sony’s PlayStation 4, which helped drive up revenue by 28 percent in the first fiscal quarter of 2014. AMD’s revenue in the PC, server and tablet chip business declined.
Addressing the wide tablet market isn’t a good idea for AMD and its bottom line, said Dean McCarron, principal analyst at Mercury Research. AMD is directing more resources out of tablets and into consoles, where there is more financial reward, McCarron said.
But it does need one or two big customers to help their tablet business, he said.
“They are being very judicious in what part of the product stack they are playing in,” McCarron said. “They are working on home-run customers.”
Double Fine has warned indies of the dangers of devaluing their products, citing its new publishing initiative as a way of protecting against that outcome.
In an interview with USgamer, COO Justin Bailey expressed concern over the harmful side-effects of low price-points and deep discounting for indie games. By giving away too much for too little, he warned, indie developers could reach a similar situation as that found in the casual market.
“I think what indies really need to watch out for is not becoming the new casual games,” he said. “I don’t think that’s a problem from the development side. Indies are approaching it as an artform and they’re trying to be innovative, but what’s happening in the marketplace is indies are being pushed more and more to have a lower price or have a bunch of games bundled together.”
Double Fine is publishing MagicalTimeBean’s Escape Goat 2, the first occasion it has assisted another developer in that way, and it won’t be the last. According to Bailey, what seems to be a purely business decision on the surface has a strong altruistic undercurrent.
“Double Fine wants to keep indies premium. You see that in our own games and how we’re positioning them. We fight the urge to just completely drop the price. That’s one of the things we want to encourage in this program. Getting people to stick to a premium price point and to the platforms that allow you to do that.”
“We’re not looking to replace… we’re trying to augment the system,” he replies. “We’re making small strides right now. Costume Quest 2 is a high-budget game. It’s one that I thought it was best to have a publishing partner who can also spend some marketing funds around it.”
Double Fine is not the first developer to express concern over the tendency among indies to drastically lower prices.
In January, Jason Rohrer published an article imploring developers to consider the loyal fans who buy their games full-price only to see them on sale at a huge discount just a few weeks or months later. Last month, Positech Games’ Cliff Harris went further, suggesting that low price-points actually change the way players see and interact with the games they purchase.
“Grey Goo is remarkable not for what it has added to the RTS formula, but what it has stripped away,” PC Gamer wrote in its reveal of Grey Goo, a new real-time strategy game from the veterans at Petroglyph. Perhaps the same could be said of Grey Goo’s recently formed publisher Grey Box, which is seeking to strip away the more negative aspects of game publishing. Suits and creatives typically will bump heads because the two sides are looking at the creation of games from wildly different perspectives. But what if they actually had the same goals?
Ted Morris, executive producer at Petroglyph, felt an immediate kinship with the team at Grey Box. “As a small [studio] – small being 50, 60 people – we are always talking to publishers to see what deals we can put together. But with Grey Box, I think that we meshed better on a personal level with them as a company and as a group of people than we have ever meshed with another group,” he enthused to GamesIndustry International during GDC. “And we’ve worked with Sega and LucasArts – all the big guys – and certainly talked to everybody else, too – the EAs and everybody – and these guys – man, we just gelled with these guys so well.”
Morris said that Grey Box’s approach to publishing was noticeably different from the start. While other, larger publishers may immediately come up with marketing plans and sales targets, Grey Box found itself on the same page with Petroglyph: fun comes first.
“Every meeting that we have is always a sit down and then people open up financial books and they start talking about what the sales figures are going to be like, and when we sit down with [Grey Box], it’s like ‘how can we make a great game?’ We don’t even talk about money, we talk about ‘how good can we make this game?’ and ‘how successful will it be?’ You know, let the game drive the sales, don’t let the marketing drive the sales, don’t let the sales department drive the sales. It’s really about, if you make a great game, they will come,” Morris continued. “They spoke to that so often, so frequently that we thought, ‘man, these guys just want to help us focus on what’s really important.’”
One of the defining traits for publisher Grey Box is that they’re all gamers at heart, noted Josh Maida, executive producer for the publisher.
“I’m not going to pre-judge any of those other publishers – I mean, for all I know they love games as much as we do. And we do. We all love games. We all come from different areas. I lost a whole grade point in college to Street Fighter, and… we want to be fiscally mindful. You need to make money, but with the money we make, we want to make more games,” he remarked.
“So I think at the core of that is we’re not trying to take away from the industry. We want it to feed itself and go bigger. Quality over quantity is something that we’re mindful of. We also just want to make a good working relationship for our partners… everybody’s in here for fulfillment. The talent we work with, they could all be working in private industries for twice the amount they do, but they’re here because they love to make games, and so we want to be mindful of that. And when people die, they want to know they did great things and so we want to create those opportunities for people.”
Tony Medrano, creative director for Grey Box, criticized other publishers for being too quick to just follow another company’s successful formula.
“We’re not chasing a trend, we’re chasing something we believe in, we’re chasing something we like, and we’re not trying to shoehorn a formula or monetization model onto things that just don’t work because they’re popular,” he added. “I think from the get-go, it’s been all about how can we make the best game, and then everything else follows from that. I think a difference structurally [with other publishers] would be that we have a very lean and mean team. We’re not trying to build a skyscraper and have redundant folks. Everybody that’s here really cares, has some bags under their eyes from late nights… I think it is just that we look at all our partners as actual partners. We let them influence and make the product better, whether it’s the IP or the game.”
Speaking of monetization models, Maida commented that there’s no “secret agenda to Zyngafy RTS or anything.” Grey Goo is strictly being made for the PC, but the RTS genre easily lends itself to free-to-play. Upon the mere mention of free-to-play, however, you could almost feel the collective blood pressure in the room rising. It’s clearly not the type of experience that Petroglyph and Grey Box are aiming for.
For Petroglyph’s Morris, in particular, free-to-play hit a nerve. “I’m going to jump in here, sorry. I’m really annoyed!” he began. “There’s been such a gold rush for free-to-play right now that is driving publishers – I mean, there needs to be a good balance. There’s a great place for free-to-play – I play lots of free-to-play games – but it is driving developers like us to focus on money instead of making great game content. I’m not going to name any examples, but I’ve been disappointed with some of the free-to-play offerings because it’s not so much about making a great experience for the player anymore. It’s about ‘how can we squeeze them just a little bit more?’ or annoy them to the point where they just feel like they have to pay.”
Medrano added, “I get frustrated when I play free-to-play games, and if I purchase something, I feel dirty. I feel like ‘oh, I got cheated, I fell for the trap.’ Or even more modern games where they baby you through the whole thing. There’s no more of that, like, ‘this is tough, so that means if I get good at this, there’s reward – there’s something there.’”
Ultimately, while Petroglyph and Grey Box came together thanks to a shared love of the RTS genre, they feel there’s a real opportunity to bring back hardcore, intelligent games.
Andrew Zoboki, lead game designer at Petroglyph, chimed in, “It’s almost as if the industry has forgotten about the intelligent gamer. They feel like that everyone’s going to be shoehorned in there, and I would say even from a design perspective that a lot of design formulas for a lot of things, whether they be free-to-play or what the mainstream is going to, next-gen and such, that all those titles are kind of a little more cookie-cutter than they probably should be. They’ve tried to shoehorn gamers into a formula and say, ‘this is what a gamer is,’ rather than understanding that gamers are a very wide and diverse bunch of individuals, everyone from the sports jock to the highly intellectual, and they all have [different] tastes… there’s different games that will appeal to different demographics… if you make the games that players want to play, they will come.”
And that really is at the heart of it. Morris lamented how business creeps into the games creation equation far too often. “They’re trying to balance the game with Excel spreadsheets instead of sitting down and actually playing it and having focus tests and bringing people in and actually trying to iterate on the fun,” he remarked about other publishers.
For Grey Box at the moment, the focus is on making Grey Goo the best it can be, but the company does have plans for more IP. It’s all under wraps currently, however.
“We do have a roadmap, but it’s not based off of the calendar year. We do have another game in the works right now and we might announce that at E3. And we have a road map for this IP, as well,” Maida said. “Obviously we want to get it in the hands of players and fans to see what they respond to, but we’ve got capital investment in the IP with hopes to not only extend this lineage of RTS’s but possibly grow out that franchise and other genres as well.”
Grey Box plans to release Grey Goo later this year.
Nvidia certainly did one thing right with the Shield gaming console. It has learned that users of such devices really like continuous and regular updates that add features and functionality to their devices.
The effort probably would not be worth it, given the limited number of Shield consoles in the wild, but it demonstrates that Nvidia is committed to the concept. Shield today sells for a rather attractive $199 and offers Gamstream support on your home network as long as you have a 5GHz capable router.
With the latest April Update, Nvidia is offering remote Gamestream support. This is good news but we still have to try this in the field in order to make some conclusion about it. Let’s not forget that Nvidia lets you use the Shield in console mode, playing your games on a big screen TV as long as you have the necessary Bluetooth controller. Grid gaming works for some users depending on the region, with California as the epicentre, but this functionality was enabled before the April update. It is required that your ping stays below 150ms and Nvidia will let you try out a dozen games for free. We tried it and it works nice, as long as you don’t get too far away from the 5G router.
The Shield April update also brings mouse and keyboard support in console mode, and it will make your life easier playing Civilisation V, World of Warcraft and similar games from your couch. Nvidia also updated Game touch mapper making it easier to map your favourite touch based games. You can also download predefined settings from the community profiles. The full support for Android 4.4.2 KitKat is certainly a nice addition. Andrew Conrad, Nvidia tech guy and gaming nerd, the face of Nvidia gaming for the new generation also confirms that Gamestream on the go will work via WiFi, tether, MiFi or Hotspot internet connection.
As we already pointed out, Nvidia is clearly putting a lot of effort into Shield on the software front. This is not always the case with niche products, but Shield is part of a much wider strategy that revolves around streaming, blurring the lines between different platforms. Whether or not upcoming generations of the console can gain a mainstream following remains to be seen.
In April of 2011, GameStop acquired streaming tech firm Spawn Labs because cloud gaming was the future. Today, the retailer announced it had closed Spawn Labs because cloud gaming is still the future.
Speaking with GameSpot today, the retailer’s vice president of investor relations Matt Hodges said cloud gaming isn’t a good fit for today’s consumers.
“While cloud-based delivery of video games is innovative and potentially revolutionary, the gaming consumer has not yet demonstrated that it is ready to adopt this type of service to the level that a sustainable business can be created around it,” Hodges said.
For the time being, GameStop’s cloud gaming business will be focused on selling subscription cards for programs like PlayStation Now through its retail locations.
Beyond the closure, the specialty retailer also reported its fourth quarter and full-year financial results this morning. The launch of the Xbox One and PlayStation 4 reinvigorated the console market, helping to drive sales and profits growth.
For the year ended February 1, total revenues were up nearly 2 percent to $9.04 billion. At the same time, the company returned to the black, turning the previous year’s $269.7 million net loss into a $354.2 million net profit. The company also underlined the growth of its digital and mobile business, which brought in more than $1 billion for the year.
The fourth quarter saw sales rise more than 3 percent to $3.68 billion, with net income slipping nearly 16 percent to $220.5 million. Those figures include goodwill and asset impairment charges of $28.7 million, “primarily due to the closure of Spawn Labs and store asset impairments.”
GameStop also released its first outlook for the current fiscal year and its first quarter. For the full year, the retailer is expecting total sales to be up 8 to 14 percent, with a net income between $398 million and $433 million. For the current quarter, it has projected year-over-year sales growth between 7 and 10 percent, with profits between $64 million and $70 million.
Called the Nubia X6, the 6.4-inch smartphone has the latest Qualcomm Snapdragon 801 quad-core processor, and a massive 4250 mAh battery. In addition, it has two 13-megapixel cameras, one in the front, the other in the back.
The X6 joins thegrowing number of 6-in. smartphones starting to appear on the market. It has a 1080p screen that packs in 344 pixels per inch. The aluminum-cased handset also has dual speakers, slots for two SIM cards, and comes in configurations with either 2 GB or 3 GB of RAM.
Like other handset makers, ZTE is highlighting the phone’s cameras as a way to attract consumers. The X6′s rear-facing camera uses an “EXMOR RS” imaging sensor from Sony that helps it take pictures in low light levels to the point that it can capture clear photos of stars in the night sky.
The phone runs Android 4.3 with ZTE’s Nubia 2.0 user interface. ZTE incorporated a split screen function so that users can view separate apps at the same time on the large screen.
The phone is the latest device to carry the Nubia name, a newly established brand ZTE hopes will distinguish itself in a market already crowded with rivals. To raise its profits, the company is increasingly developing more high-end devices at higher price points.
ZTE will start selling the phone first in China, with pre-orders beginning on March 25. But the company will probably roll out the device to other markets later in the year, said a ZTE spokeswoman.
Microsoft is using this year’s Game Developers Conference as a platform to push ID@Xbox, with the company yesterday announcing dozens of titles headed for the console under the indie self-publishing program. Microsoft corporate vice president Phil Harrison sat down with GI discuss the reasons behind the initiative and where the company hopes to take it in the future.
“A lot of the platform decisions we made in previous generations have really been around the fact we had a predominantly retail business model,” Harrison said. “You don’t want to be pressing millions of discs only to find they don’t work. Those are expensive investments that are difficult to retract from. But in a digital world, those constraints go away. In the previous generation, all console companies had walled gardens with pretty high walls. And now we’ve got gardens with small fences around them, or maybe a hedge. The barrier to entry has definitely come down, and that is a really positive trend for gamers, but also for creating an on-ramp for developers looking to get into our industry.”
Harrison acknowledged that a platform holder could run into problems by taking that approach too far, but suggested that the ID@Xbox program isn’t in any danger of that situation just yet.
“There’s always a balance to be had, but right now our push–and we’ll continue for the foreseeable future–is to democratize access to our platform,” Harrison said. “As you know, we have an intention that every retail Xbox One can become a dev kit, and we want to open up the platform to as many people as possible.”
The company has also set up some of the Xbox One’s core feature set specifically to address some of the potential problems of being overly open, Harrison said. Social features like user recommendations and trending offerings will help, but the Twitch streaming and ability to upload screens and gameplay to video are expected to really help games attract more attention from the wider community.
“We think those platform features will help the best games connect with the biggest audience, and the biggest audience can find the best games,” Harrison said. “It’s a virtuous cycle. We’re probably just scratching the surface of what’s possible with that, but I really like where it’s headed.”
Early results from Microsoft’s indie outreach are promising. Harrison said in the ID@Xbox program’s first four months, it has already attracted 250 developers, more indies than the Xbox 360 has drawn in its eight years on sale.
The trade-in service will accept games for popular consoles like the Sony PlayStation3 and Microsoft Xbox 360, and customers can in return buy anything at Walmart and Sam’s Club, both in stores and online, Wal-Mart said.
“Gaming continues to be an important business for us and we’re actively taking aim at the $2 billion pre-owned video game opportunity,” Duncan Mac Naughton, chief merchandising and marketing officer for Walmart U.S., said in a statement.
The traded-in games will be refurbished and made available to buyers later this year.
Retailers such as Best Buy Co, Target Corp and GameStop Corp also offer trade-in programs for used video games.
Thanks to Silicon Valley, there’s no shortage of tech companies hosting meetings or conferences in the Bay Area, but when it comes specifically to the business of games, there are few conferences in San Francisco that can rival the annual Game Developers Conference. For most in the industry (or those looking to enter the industry) it’s one of the few must attend events each year. And you can bet the city of San Francisco is happy to host GDC, as the financial benefit to local businesses is substantial.
“GDC is the highlight of March for the San Francisco hospitality community – everyone knows when GDC is here judging from the packed bars, restaurants, and streets. I love that turning any given corner in or near the convention center, one will hear an international language spoken. Their current financial impact is estimated at over $46 million,” Leonie Patrick, senior director for Moscone Expansion Sales at the San Francisco Travel Association.
“Although San Francisco is fortunate to have several large conventions, the demographic of GDC is unique and high energy. GDC is a valued, annual group and we do our best to assist with their success every year. When they thrive, we thrive,” she continued.
While GDC used to take place in San Jose, the conference quite simply outgrew the city, and San Francisco became its new home, offering more convention space and hotel accommodations. The conference has been consistently growing along with the industry itself, and it’s definitely been a boon to San Francisco.
“GDC has been with us since 2005, with the exception of 2006. They have demonstrated tremendous growth. They started off with 10,000 people crammed into Moscone West, and they have more than doubled their attendance in 8 years,” Patrick said. “GDC has also had extreme room growth, starting at 1,900 on peak to almost quadrupling that number.”
While some locals have resented the impact that highly-paid tech sector employees have had on San Francisco’s cost of living, San Francisco Travel Association isn’t concerned that GDC will be affected by any of this sentiment. “We have no concerns about how the GDC attendees will be received by San Francisco. San Franciscans know that tourism is our number one industry and conventions are a different issue from residency issues. We welcome GDC happily each year,” Patrick added.
Indeed, tourism is a wonderful thing for the great city of San Francisco. From the sights and sounds to the places to eat, there’s plenty to enjoy for GDC attendees who might want to nip out of Moscone for some downtime as well.
“Many attendees have been here repeated times so they want more than the typical icons. They may want to explore the more offbeat neighborhoods like the Castro, Union & Fillmore Streets, eat a great meal in the Mission, or walk around Noe Valley. For the first and second timers, they should see the Golden Gate Bridge, Coit Tower, ride a cable car, go down Lombard Street, sit in a café in North Beach, walk along the Wharf, visit the Ferry Building, or window shop in the Haight,” Patrick recommended. “And I can’t forget about Golden Gate Park, or maybe see the Pacific Ocean if they have not before. And if they really have time visit one of the many neighboring cities. Sausalito, Tiburon, Monterey/Carmel, Lake Tahoe… the list goes on.”
And even if you don’t have a car, it’s thankfully not too difficult to get around San Francisco (unlike Los Angeles, for example).
“Luckily, San Francisco is a large city contained in a small footprint. It is an extremely easy city for walking. Despite its reputation for having many hills, which it does, take a walk along the waterfront in order to get you from the convention center to the Wharf – you will avoid them all,” Patrick noted. “We also have great public transportation that can take you to outlying areas of San Francisco as well as outlying cities very economically.”
While it’s a bit late now, her advice for future GDC attendees should definitely be heeded: “Use the hotels that the event staff at GDC recommends since they are all vetted and reviewed by the GDC staff. And try not to book your hotel too late since rates are likely to get higher closer to the event date.”
User acquisition is a big buzz word in the mobile games space nowadays. But it’s not all it’s cracked up to be. Acquiring users has gotten expensive, and it won’t matter how many you acquire if the churn is so high that they’re all leaving your game in a few days. That’s why player retention is so important and it’s how Yvolver, a new Dallas-based startup, hopes to make a difference.
CEO Steve Nix, former executive at id software and GameStop, believes that most developers should stop paying for user acquisition. It costs more than $3.00 per install to acquire customers and that’s only increasing.
“Lately the trend is that costs for paid user acquisition are increasingly prohibitive, especially for mid- and smaller-sized developers. There is a point where paid user acquisition doesn’t make good economic sense for some games anymore,” Nix told GamesIndustry International. “Hopefully developers are also going to acquire players organically through typical paths like word of mouth, social and online discovery or digital store search.
“The big difference that Yvolver brings to the table – we are much more concerned about the behaviors and value perceived by users already in the game. This makes any users acquired more likely to return to the game, more likely to make a first or second in-app purchase and much more likely to recommend the game to a friend. Every customer acquired, regardless of how they got there, will be that much more valuable to the developer. So to a large degree, we are not replacing acquisition services or methods, we are just making them much more cost effective or viable for the developer.”
Nix added that the problem for many developers is that they’ve become far too concerned with the acquisition part of the equation rather than focusing on engagement.
“Right now, many developers are focused on acquisition as the only tool in their toolbox outside of the gameplay mechanics and changes to their economies that they can directly control themselves. Gameplay mechanics may be difficult to iterate upon quickly or the developer may just not have the resources to make all of the changes that they would like. We know that these same developers are increasingly viewing their acquisition programs as dumping money into a giant leaky budget. Yvolver helps plug the leaky money bucket that acquisition dollars are being poured into by encouraging retention, engagement and in-app spend for those users once acquired,” Nix continued.
“There are also a lot of great developers out there that are fantastic at creating a fun, gorgeously crafted games, but they do not have the resources to study user engagement and spending behaviors the way that the major studios can with their dedicated teams. That is all we focus on at Yvolver, so we are excited about improving the health of the business model for developers that may not have the capabilities that our laser-focused team of veteran data science and loyalty experts can quickly bring to their games.”
The crux of Yvolver is a loyalty rewards program. In fact, Yvolver teamed with Hal Brierley, who’s serving as a key investor and providing counsel on the design of its loyalty services. Brierley is an expert when it comes to loyalty rewards, having been a pioneer in the design of major loyalty programs, including American Airlines AAdvantage, Hilton HHonors and GameStop Power-Up Rewards.
So how does it work? Essentially, Yvolver users are able to build up a monthly Yvolver Score by completing events that are set by the developer in combination with making in-game purchases. Users can then convert their monthly score into prizes – both digital in-game items or power-ups and physical real-world rewards, like electronics, clothing or other goods. The score is persistent across games/apps and different platforms.
And while you might think that a program like this would be intrusive or take away from the experience for some players, Nix insists that it’s been designed in a way that won’t push away players – besides, that goes against the very thing the company was built for.
“The core premise of Yvolver is that we only have value for developers if we are creating value for the gamers playing their games. Most of the team here came out of game development and we have been critically focused on every detail of the user experience and making sure that we only add to the enjoyment of the game,” Nix said. “We should never be throwing confusing pop-ups out, blocking the user’s progression, making them think they have somehow left the game, or all of the distracting stuff that you see in a lot of the ad and offer platforms that are integrated into so many games now. We have worked closely with our game developer partners to make sure that we are respecting their game, and the response so far has been that we are firmly on the right path.”
The supporting cast around Nix and Brierley is strong as well, coming from companies like id, GameStop, Zynga, Apple and more. Former Apple App Store games manager Cory Lewis is a co-founder and is leading biz dev, former id lead programmer Jah Raphael is a co-founder and is serving as CTO, and Matt Himelfarb, a managing partner at Dallas Venture Partners is a co-founder and acting as CFO. You can read more about the entire team here.
On the business side of things, Yvolver believes its own interests run in parallel to the developers it’s looking to help. Much like a sales associate on a commission, Yvolver only benefits when the developer starts seeing sales.
“We work with our developer partners to build loyalty-driven events and programs that add value for their users and incentivize the behaviors that are most important to the developer. When users engage with the game in these desired ways, combined with that user’s in-app spend, they will receive an Yvolver score. The more the desired behaviors and in-app spend happen, the higher the user’s score will be. Our revenue is based directly on the Yvolver scores generated in an app in a month. The beauty of this model is that we only make money if the developer is making money through these in-app purchases. We are completely aligned with our development partners, which is important to us,” explained Nix.
Yvolver has been in private testing with a number of apps so far, but the company isn’t worried about signing tons of developers right away.
“We are not concerned about integrating with two-thousand apps the first year and game count is really a meaningless metric for us… Our data science and account teams are working continuously to become more creative and efficient in the programs that we develop with our partners, and that is how we really think about our progress. We believe gamers will quickly start seeking out titles that have integrated with Yvolver, and gamers will ultimately tell us if we are successful through their behaviors,” Nix said.
To kick things off, a beta version of the Yvolver service will launch exclusively with Zombie Gunship Zero from Limbic. The game will be available for download on March 13 and the beta service will follow in the “near future.”
Limbic CEO Arash Keshmirian commented, “Running a successful independent mobile games studio has become an increasingly complex challenge during the past two years. Market competition is at an all-time high, and marketing resources are becoming increasingly scarce and expensive. We couldn’t be more excited to partner with the Yvolver team to not only help engage and retain our current fan base, but to bring those fans real, added value within the Zombie Gunship Zero experience. It’s a win-win for us.”
Named the Archival Disc, it will have the same dimensions as Blu-ray discs and will also be readable for at least 50 years.
The disc will have three layers per side. It’s expected to hit the market in 2015, with the initial capacity later expanded to 500GB and then 1TB.
The higher capacities will be achieved through signal-processing technologies including multi-level recording technology, the companies said.
Sony and Panasonic are pushing the optical discs for cloud service companies and archival services amid the explosion in online data. The companies will market the discs separately under their brands.
“As a type of archival media, optical discs have numerous advantages over current mainstream HDD and tape media, such as their ability to be stored for a long time while still maintaining readability,” a Panasonic spokesman said. “We hope to develop demand for archives that use optical discs.”
The discs do not need a special storage environment with constant temperature or humidity and do not require air conditioning, the spokesman said, adding that users can also benefit from reduced power consumption compared to using linear tape-open technology (LTO), a magnetic tape storage format.
While LTO cartridges have greater capacity, typical lifetimes can be a lot less than the 50 years for optical discs. HP’s LTO-5 Ultrium 3TB cartridges, for instance, are warranted to last 30 years.
Hard drives can have even shorter shelf lives. Failure rates in one study were at nearly 12 percent after three years.
Sony and Panasonic said that as optical disc formats evolve, inter-generational compatibility ensures that older discs can still be read by corporate storage systems. However, the companies are not positioning the discs as a medium for consumer storage.
“The development is specifically for professional archiving,” the Panasonic spokesman said. “We are not currently considering optical discs for household consumer use.”
The Japanese company showed off its SmartEyeglass prototype at the Wearables DevCon conference just outside San Francisco, where it was trying to drum up interest among developers, who will need to build applications for the device.
Like Google Glass, SmartEyeglass displays information instantly in front of a users eyes. Unlike Glass, which has a small prism display, Sony’s prototype looks more like a normal pair of eyeglasses and shows information in green over a pair of see-through lenses.
In a video to show off its capabilities, users walk into an airport and get sent directions to the check-in desk which pop up on their glasses. Other potential uses include displaying the latest score and players’ names while watching a football game, sending and receiving texts and being notified of a missed call.
The glasses have a binocular-type display that makes the text look further away, which makes it more comfortable to read. They also have an embedded camera and a microphone and sensors similar to those in a smartphone, including an accelerometer, gyroscope and compass.
The device is still a prototype and not as advanced as Google Glass. It’s operated via a separate, wired controller with a touchpad that has navigation, power and camera buttons. And the glasses currently work in conjunction with an Android phone. The applications for the glasses run on the phone, and interact with the phone over Bluetooth or Wi-Fi.
Sony said it’s working on a software developer kit for the product, based on the same framework as its SmartWatch 2. But there was no word yet when the SDK or the prototype itself will be available.
Based on the firm’s Kabini system on chip (SoC), the APU is named the “AM1 Platform”, combining most system functions into one chip, with the motherboard and APU together costing around $60.
Due to be released on 9 April, the AM1 Platform is aimed at markets where entry-level PCs are competing against other low-cost devices.
“We’re seeing that the market for these lower-cost PCs is increasing,” said AMD desktop product marketing manager Adam Kozak. “We’re also seeing other devices out there trying to fill that gap, but there’s really a big difference between what these devices can do versus what a Windows PC can do.”
The AM1 Platform combines an Athlon or Sempron processor with a motherboard based on the FS1b upgradable socket design. These motherboards have no chipset, as all functions are integrated into the APU, and only require additional memory modules to make a working system.
The AM1 SoC has up to four Jaguar CPU cores and an AMD Graphics Core Next (GCN) GPU, an on-chip memory controller supporting up to 16GB of DDR3-1600 RAM, plus all the typical system input and output functions, including SATA ports for storage, USB 2.0 and USB 3.0 ports, as well as VGA and HDMI graphics outputs.
AMD’s Jaguar core is best known for powering both Microsoft’s Xbox One and Sony’s Playstation 4 (PS4) games consoles. The AM1 Platform supports Windows XP, Windows 7 and Windows 8.1 in 32-bit or 64-bit architectures.
AMD said that it is going after Intel’s Bay Trail with the AM1 Platform, and expects to see it in small form factor desktop PCs such as netbooks and media-streaming boxes.
“We see it being used for basic computing, some light productivity and basic gaming, and really going after the Windows 8.1 environment with its four cores, which we’ll be able to offer for less,” Kozak added.
AMD benchmarked the AM1 Platform against an Intel Pentium J2850 with PC Mark 8 v2 and claimed it produced double the performance of the Intel processor. See the table below.
The FS1b upgradable socket means that users will be able to upgrade the system at a later date, while in Bay Trail and other low-cost platforms the processor is mounted directly to the motherboard.
The AM1 Platform will ship to system vendors in Europe, the Middle East, Africa, South East Asia and Latin America first, then to North America and the Pacific region later this year.
AMD lifted the lid on its Kabini APU for tablets and mainstream laptops last May. AMD’s A series branded Kabini chips are quad-core processors, with the 15W A4-5000 and 25W A6-5200 clocked at 1.5GHz and 2GHz, respectively.
Samsung appears to have delivered a huge snuff to Android OS maker Google. Samsung’s new smartwatch Gear 2 and Gear 2 Neo, the sequels to the poorly reviewed original Galaxy Gear are going to ship without Android.
Instead, the new Gears run Tizen, another open source operating system that Samsung, Intel, and others are working on. It is starting to look like Samsung wants to distance itself from its reliance on Google for software and services.
Samsung’s official reason is that Tizen has better battery life and performance. The new Gears can get up to an extra two days of battery life by running Tizen, even though they have the same size battery. The Galaxy Gear barely made it through a day on one charge.
To be fair Android isn’t optimized to run on wearable devices like smart watches, but Samsung didn’t want to wait around for Google to catch up. It was clearly concerned about beating Apple to market. So far Apple has not shown up.
It is, for the moment, just a conspiracy theory, and it goes something like this: Microsoft wants to get out of the games console business. It’s planning to package up the Xbox part of the Devices & Studios division and separate it off from the rest of the company, so it can be sold as a going concern. Who’s buying? Amazon, which views acquiring Xbox as a step towards dominance of the living room. If there’s anything to this theory at all, the coming year or two could see the end of Microsoft Xbox and a warm welcome for Amazon Xbox.
Let’s lay all the cards on the table. The evidence is sketchy and circumstantial. We know that Microsoft is looking at some pretty major strategic changes in the wake of the appointment of new CEO Satya Nadella. Nadella’s focus throughout his career has been on the business end of Microsoft – servers, cloud services and enterprise tools – which remains in robust health compared to the troubled state of the firm’s consumer divisions. Choosing him as CEO could suggest that the company is aiming for a future focused on enterprise tools and platforms, not consumer products.
Then there’s the man who wasn’t chosen as CEO, Stephen Elop. Elop used to work at Microsoft, then became CEO of Nokia. Now that Nokia is selling its mobile phone division to Microsoft, Elop is back where he started. Moreover, he saw himself as a strong candidate for the CEO job when Steve Ballmer resigned. With Nadella in the CEO’s chair, Elop’s consolation prize is that he’s taking over as head of Devices & Studios. That’s a logical choice, since Devices & Studios will include Nokia under its umbrella, at least to some extent, so Elop will continue running his old Nokia team alongside the Xbox and Surface teams at Microsoft.
Given that, it would perhaps be more surprising if Elop wasn’t put in charge of Devices & Studios. His presence ought to ease the transition as Nokia is absorbed into Microsoft, a major acquisition that’s likely to cause some indigestion along the way. However, during the CEO selection process, while Elop was still in the running, Bloomberg reported that he had some very interesting plans for the company if he was running it. The reported plans included, notably, a willingness to sell off business units Elop viewed as distractions from Microsoft’s main goals – business units including the Bing search engine and the Xbox. As logical as his new job at Devices & Studios may seem, you can’t blame people for raising an eyebrow when a man who supposedly wanted to sell off the Xbox division is put in charge of the Xbox division.
It takes two to tango, so how about the Amazon side of the deal? Well, whispers of Amazon’s keen interest in the games market have flown around for months now, including rumours that the company has discreetly hired a number of veterans from the games industry while keeping their involvement quiet – for now. Last month, Amazon bought games studio Double Helix, fresh from working closely with Microsoft to prepare Killer Instinct as a launch title for Xbox One. Something is afoot. Occam’s Razor suggests a “Kindle” console, an Ouya-style box under the TV linked to Amazon’s digital content platform, but given the plethora of Android consoles currently underwhelming the market and failing to gain a foothold, it’s not unreasonable to suggest that Amazon would want to make a much bolder move into the console space. Plus, Amazon certainly isn’t scared of making big acquisitions when it wants to open up a new market opportunity for itself – it’s hard to conceive of a cash value for Xbox, not least given how obfuscated the financials of the console business are, but I don’t doubt that Amazon could afford it if it really wanted to.
That’s it – that’s the conspiracy theory. I don’t deny for a second that the evidence, if you can call it that, is pretty thin. Microsoft is probably going to refocus on enterprise; a guy who wanted to sell Xbox is the new boss of that division, but he’s also the most logical choice for the job. Amazon is setting itself up for a big move into the games space and may (or may not) have hired some senior games people on the down-low. That’s the sum total of the evidence, and we should all bear that in mind. Even this article exists not to promote this theory, which I view as interesting but unsupported by the available information, but rather to evaluate, hypothetically, whether there is any real possibility of an Xbox spin-off and sale. In short, there’s no real evidence that Microsoft is going to do this thing, but it’s an interesting academic exercise to evaluate whether they could do it if they wanted, and whether a motivation to do so might exist.
So how hard, in theory, would it be to spin off and sell Xbox? The answer to that depends on what exactly Microsoft is proposing to sell. Xbox, as mentioned earlier, is part of the Devices & Studios division, which also houses Surface and will shortly be joined by Nokia. Some other odd things are rolled into this division, apparently. It was claimed last year that the patents which force Android device makers to cough up a fee to Microsoft for every handset they sell are held, for financial purposes, in Devices & Studios, thus accounting for a big chunk of the division’s revenue.
If Microsoft’s new management had come to view Xbox as a distraction that doesn’t fit with their new enterprise focus, one might reasonably ask if they’ll take the same view of Surface. That product which hasn’t performed well and has reportedly soured relationships between Microsoft and other hardware vendors, who aren’t terribly happy with the company from whom they license the Windows operating system suddenly being in direct competition with them. The company wouldn’t be happy about losing the patents related to Android, not least since Windows and Windows Phone presumably use the technology described by those patents as well, so that probably wouldn’t be included in any sale, but aside from that it’s plausible that Microsoft could sell the entire Devices & Studios operation, thus putting itself out of the hardware business entirely.
Alternatively, Microsoft could decide to hold on to Surface and simply divest itself of Xbox and the various Microsoft Game Studios operations. Surface would then be joined by Nokia in the much-reduced Devices division (no more studios!), which would be entirely focused on tablets and smartphones without the “distraction” of games. Such a disentanglement wouldn’t be terribly difficult, either. Xbox is actually fairly well divorced from the rest of Microsoft’s operations. Its operating system shares a visual language with the “Metro” interface of Windows 8 and Windows Phone, while various game-related elements of Microsoft’s other operating systems have also been given the “Xbox” and “Live” monikers. Bing, of course, runs on the Xbox dashboard. By and large, though, the technology and services which drive Xbox are divorced from the rest of Microsoft – although it’s worth noting that the much-vaunted Cloud functionality of Xbox One relies in part on Azure, Microsoft’s cloud services platform. Any buyout of Xbox would include various contracts ensuring that any Microsoft technologies or services upon which the console relies would continue to be provided to the new owner, so this would not be a major stumbling block.
A bigger question might be, would Microsoft even want to do this? That really depends how seriously you take the idea of “distraction”. Xbox One has had its thunder stolen by PS4, but is still selling well – and Xbox 360 was a major success. In fact, it’s the only success Microsoft has ever had in the consumer hardware space. Xbox proved Microsoft’s ability to create a great consumer brand and sell hardware to people. It’s a real bright spot in a few tough years for the company – especially compared to everything else it has attempted in the consumer space, from Zune and Surface to its latest operating system, Windows 8.
Why would you get rid of that? Well, you probably wouldn’t – but let’s brainstorm a motive. You could argue that Xbox is a bright spot that doesn’t have any real relevance to the rest of the company. Microsoft in the early 2000s wanted to reinvent itself as a consumer-facing company, but with Xbox being the only success in a small sea of failures, Satya Nadella is likely to try to bring the firm back to focusing on the enterprise market. As the oil tanker slowly turns around to head into more corporate seas, Xbox will be more and more at odds with the culture and mission of the rest of the company. It will arguably be a distraction both internally, where it won’t fit with Microsoft’s culture, and externally, where it will detract from a brand message that promotes Microsoft as a serious, corporate, business-focused partner for enterprise (as distinct from the more consumer-led branding of rivals Apple and Google). Selling off Xbox would generate cash (not that Microsoft needs it), streamline the company and start the new CEO’s tenure with a dramatic gesture that sets out his vision more clearly than any speech or press release.
In short, Microsoft could do this and, if we assume that upper management take the notion of “distraction” seriously and are genuinely willing to abandon the firm’s ambitions in the consumer devices space, there’s a motive for doing it. How about Amazon’s side of the table? This deal would cost billions; would Amazon stand to gain enough to justify that kind of outlay? After all, aren’t consoles a dying space? Plenty of pundits seem to expect that PS4 and XB1 will be the last generation of consoles. Would a company as smart as Amazon get sucked into a market that’s about to collapse?
Amazon, like Microsoft a decade ago, has major ambitions in the consumer devices space. The company built itself on the back of selling physical goods but has neatly sidestepped the so-called “innovator’s dilemma” by being more than willing to disrupt its own business. The world’s biggest seller of physical books became the world’s biggest promoter of ebook readers. Music downloads, streaming video, cloud services; Amazon has taken an active and enthusiastic interest in every field that might disrupt its existing businesses, seeking not to shut down threats but to be the biggest player in whatever comes next. It supplemented the Kindle e-reader with Kindle tablet devices whose market performance is largely unknown, but is thought by analysts to be one of the only genuine competitors to the iPad’s sales dominance. Anyone who owns a Kindle device knows that they are designed from the ground up to be a great interface to accessing and buying content from Amazon’s ecosystem. That’s Amazon’s play; own the media ecosystem, building the devices themselves if that’s what it takes.
That ambition is a pretty solid fit for the console business. Moreover, it can’t have escaped Amazon’s notice that Steam, PlayStation Network and Xbox Live together make up a big area of digital content provision in which it has no involvement right now. Amazon will also be paying careful attention to the interest around set-top boxes (like AppleTV and Google’s TV efforts) and Smart TVs. Here there’s huge potential for consumers to be accessing media ecosystems directly from their TVs and connected devices – again, a game in which Amazon has no skin. For Amazon, the ideal would be that when you want to watch or play something on your TV, you do so through Kindle interface that links right into Amazon’s digital library, just like the Kindle tablets work. Of course, an Android microconsole would achieve that goal, but it wouldn’t be of much interest to gamers – at best, it would capture a fringe of the market who engage with Kindle tablets.
Is appealing to gamers important? This comes back to the question of whether consoles are really dying – and honestly, who knows better about that question than Amazon? Amazon is the largest retailer in many countries. Not only does it see how many consoles and console games are sold, it also sees loads of connected information which is hidden from even game publishers. It knows how high-spending gamers are in other areas – whether they’re likely to buy a lot of gadgets, a lot of books, a lot of movies or albums. It knows how much they engage with the brands they love, whether they cross-promote to friends resulting in more sales, whether they leave reviews and promote products on social media. Amazon can make an estimation of the actual value of the core gamer market more accurately than any other company.
What is that estimate looking like? I don’t know, of course, but Amazon’s actions in the coming months are going to tell us a lot about it. Regardless of whether the Xbox conspiracy theory pans out, Amazon is going to make some kind of game-related move relatively soon. It will be interesting to see how much importance and focus the company places on the games space at that time.
Until we see more evidence, though, it’s impossible to construct a fully credible argument which places the future of Xbox anywhere but Microsoft. There’s simply not enough information out there to support that kind of conclusion. That said, there is a possible motive to sell on the part of Microsoft, and a possible motive to buy for Amazon. If I had to pin my colours to a mast on this, I’d say Microsoft is probably discussing a sale with interested parties, including Amazon, but hasn’t made a final decision on whether to start sale proceedings as yet. I also wouldn’t read too much into that, given that it’s the responsibility of management to consider such possibilities as part of their duty to the shareholders. Then again, under Microsoft’s new management, perhaps such things are being considered rather more seriously than before.