At present, that applies to the Unity Test Tools and the engine’s new graphical user interface system, which was demonstrated in the opening keynote of Unite 2014. The features will be available under the MIT/X11 license, giving users the freedom to “control, customise and extend” their functionality.
The source code for the components will be hosted on BitBucket, and Unity has prepared a guide for any interested open source contributors. The source for the Unity Test Tools is already available, with the GUI to follow.
“Beyond that, we don’t have a concrete plan, but we have a lot of things in the pipeline,” the company said in a statement. “These components will all be isolated from Unity in such a way that you can modify them and use your own modified version with the official public Unity release.
“Although Unity Technologies has been active in the open-source community for quite some time, this is the first time we’ll be opening the source to components of Unity itself.
“We’re excited to see what you do with it.”
According to DFC, 92 per cent of PC game sales in 2013 were digital and it thinks this trend will continue and rise in 2014.
Gamers are starting to favour digital downloads over physical copies of the game, which is not really surprising given that who actually wants to own boxes and DVDs and manuals when all you really need is the game.
DFC Intelligence goes on to add that PC games outsold console games in terms of revenue so it means that channel is not the way gamers are playing. But then again the specs of consoles are well below PCs.
By his own admission, Andrew Wilson still “geeks out” at EA’s press conferences, despite his position as the company’s CEO demanding that he take centre stage. When we meet after the Gamescom media briefing, he enthuses in great detail and at considerable length about a FIFA 15 video demonstrating the capabilities of the new game’s goalkeepers. What that team has accomplished since he ascended to executive level, Wilson says, never fails to make him smile.
And Wilson has spent his first year in charge identifying the ways to spread that enthusiasm to EA’s customers. That hasn’t always resulted in success, of course: with Battlefield 4 the company stumbled once again on the unpredictable landscape of online gaming, and with EA Access it met with resistance from Sony on the grounds of value. In this interview, Wilson discusses both of these issues, and outlines EA’s renewed dedication to listening to its customers and following wherever that might lead.
Q: The last time we spoke you were still with EA Sports, and you’ve had a promotion since then – quite a big one, in fact. You’re coming up on a year as CEO now. Have we started to see evidence of the mark you wanted to make on the company?
AW: I think…no, I know that I didn’t approach this role thinking about making a mark or leaving a legacy. It wasn’t personal in nature. I took on the role because of how I feel about the company. This company has been very good to me and my family over the years, I loved the people I worked with inside the company and I loved the games we made together.
“Financial return is an outcome, but it shouldn’t be the objective. We’ve made a lot of decisions based on that over the last 12 months”
As I worked in the company in a variety of different roles, it became apparent to me that in some areas we’d lost our way a little bit. When I came in [as CEO] I really wanted to bring to the forefront the things that I thought made the company great, things that had delivered for us over the years. That really meant building this foundation of ‘player first’. I get that there are things we have to think about: we’re a big company, we’re a public company, we have shareholders, we have 8,000 people working for us. But all of that is for nothing unless you deliver for your number one constituency: the players. Without that, it’s for nothing.
Q: So the idea that the CEO is stuck trying to serve two masters, the shareholder and the customer, that isn’t how you see it, then?
AW: Financial return is an outcome, but it shouldn’t be the objective. Financial return is what happens when you achieve the right objectives. We’ve made a lot of decisions based on that over the last 12 months. We are engaging with our player-base more regularly, through more platforms to ensure that we’re doing what they want, and to make sure that we’re listening to them when we’re doing something that they don’t want. It’s as much about eliminating what doesn’t inspire or entertain as it is about the stuff that does.
Q: Is that how we should think about the problems that Battlefield 4 faced? You’ve publicly addressed the complaints already, but was that just a consequence of trying to deliver on an ambitious objective?
AW: If I promised you that nothing would ever go wrong [on future projects], that would be very disingenuous of me. The reality is that we come to work every day and challenge ourselves and our teams to do creative and innovative things. What I can say, however, is that living up to that commitment to engagement and action I mentioned before means that we will make tough decisions in service of the player.
Titanfall for Xbox 360 was coming in hot, it needed a few more weeks, and we moved it out of the fiscal year to get a great game. I don’t think we would have done that before. Need for Speed is a franchise we’ve released every year for 17 years – it’s as sure a thing as FIFA. But the team said that they couldn’t do what we challenged them to do in a year. It wasn’t possible, so for the first time in 17 years we decided not to launch a Need For Speed.
More recently, Battlefield: Hardline, moving out of the holiday quarter would traditionally be seen as catastrophic in this industry.
Q: Particularly that franchise. Battlefield 3 and 4 were both holiday releases.
AW: Yes, but it was the feedback. We brought gamers in earlier, we let them play the beta earlier. And the beta was very stable, so we’d solved a bunch of the problems that existed in Battlefield 4. But what people said to us was, ‘This is pretty cool, but we think you should go deeper. We want more out of this.’ So we’ve given the team more time. That’s a tough decision to make, and it has a financial impact in the near-term, but long-term, for the player and the franchise, that’s the right decision.
Q: Do you see EA Access in the same way? You’re the first publisher to pull the trigger on something like this on console. I remember a talk you gave at the Develop conference a few years back, where you held up services like Netflix as a model for the games industry to emulate. Was this idea in your mind all the way back then?
AW: It’s not completely the same, but yes. But, again, I wouldn’t take credit for that programme in its entirety. I’ve been involved in that programme, but we’ve got a great team that’s been looking at challenging the standard by which certain people access products. It’s early days – we launched it yesterday – but for what it’s worth all the positive intent is there. It will evolve, but what we’ve come to understand – and what I believed back then – is that this concept of, ‘I want to give you an amount of money each month that makes sense, and for that I want a bunch of cool stuff’, we want to live up to that.
Does that mean people will stop paying $60 for games? No, but there’s a big part of the population for whom that [EA Access] is the right context, that’s the right way for them to engage with games.
“There’s a big part of the population for whom EA Access is the right context, that’s the right way for them to engage with games”
Q: And potentially it’s a way for people who wouldn’t ordinarily play, say, Madden to get acquainted with the franchise. For a lot of people, FIFA and Battlefield would be enough to justify for the annual fee, and anything else is a bonus.
AW: Yes, but there will be many different types of players. For some people that will be how they want to play all content, for others it will form some part of it. There’ll be others who might use it just to trial games. Again, the price point is low enough that it’s pretty cool as a trial mechanism. We want to build a service that players can use in a way that makes sense to them.
Q: It gives the catalogue longevity, too, which is something that the games industry hasn’t been particularly good at.
AW: EA makes great games. Stuff that we made ten years ago is still good, and so in ten years time the games we’re making now will still be good.
Q: It’s early days, as you point out, but even in the near term are you planning to grow the selection on EA Access, to be additive?
AW: Absolutely. We wanted to launch it at a point where we could put things into the catalogue, into The Vault, and it would have value. We thought that four [games] was the minimum for the price-point, but we want to get to a place where you could play any number of games for that price-point. Over time, the value will just get better and better and better, in much the same way that Netflix does. When I started subscribing to Netflix, there was no House Of Cards, there was no Orange Is The New Black – there is now.
Q: I have been surprised at my preference for buying games digitally in the generation so far. I thought it would take a bit more time.
AW: Convenience is a wonderful thing.
Q: Is that sort of behaviour behind the decision to get EA Access out there now, this year? Is that transition happening faster than you expected?
AW: No. Listen, we – and certainly myself – have matured in the understanding over the years about how people consume content, irrespective of the industry. One of the stats that I hear frequently is that 40 per cent of music is still bought on CD. Now, I haven’t bought a CD in 14 years. I’ve bought vinyl, by the way, a bunch in the last 14 years, so I consume media in different ways through different business models based on what I’m looking for. The way my view has evolved, I’m a bit like you: I haven’t bought a disc for my PS4 or my Xbox One; I click a button and it turns up, and that’s good for me. But that doesn’t mean that everyone wants it the same way. I’ve moved from a belief that there will be one access model to rule them all, to the belief that our objective as a company is to provide access to our entertainment in ways that make sense to the growing population of players.
Q: Services like EA Access to make sense in the context of this generation, which seems to largely about choice, whether that’s variety of games, how you want to buy, how you want communicate with other players. The experience is very open now.
AW: One of the things that we’re learning as we make the digital transformation is that we don’t need to guess what players want any more. For the longest time we had to guess, and the first opportunity to find out whether you got it right or not was when you saw the game on the shelf. Now, we’re getting better at listening. We haven’t always been great listeners, but we’re getting better, and what that’s telling us is that people want choice. They want to be able to choose what’s right for them at a given moment in time. There isn’t a one-size-fits-all any longer. We’ve got to build a core platform, game engines and games that facilitate that.
Q: Are you concerned that Access will alter your customer’s perception of value? FIFA 14 is still a game that can be played all year whether the new one is out or not. That $60 has got to feel like a better decision than before, surely.
“We thought that four games was the minimum for the price-point, but we want to get to a place where you could play any number of games for that price-point”
AW: It doesn’t matter whether you spend a $1, $10 or $100,000, as long as you’re getting value from what you’ve spent then you’ll feel good about that. EA Access feels like tremendous value, and whether you continue to feel good about paying whatever it is for a frontline product comes down to our ability to to deliver value.
The commitment that we’re making to those frontline products is that they will be bigger, more engaging, service oriented, with new and dynamic content every time you log in. People are now playing FIFA and Battlefield all year round. When I started a game would get played for four weeks, and then it was on to the next one. The value that we deliver today, we have games that can be the only thing you play for an entire year.
Q: Certain products have started to feel out of time to me. I won’t mention the name, but I bought a game digitally that cost the same amount as, for example, FIFA, and it took me six or seven hours to finish and that was it. I felt cheated in a way that I wouldn’t have with the exact same game at this point in the last generation.
AW: That understanding of value is really, really important, and I’m trying to push that into the organisation – irrespective of business model. Back in the day it was all about delivering $60 of value; now, I want to deliver $1 of value if you want to spend $1, I want to deliver $10 of value if you want to spend $10. I want to deliver value on your investment and on your investment of time. As you get older you realise that time is the most important resource. Part of your issue with that other game is that it took six hours, and you didn’t feel the value returned. We should think about the investment of money, but also the investment of time.
Q: You’ve mentioned the value of EA Access several times, and obviously Sony came out and disagreed on that point. For now, at least, Access won’t be available to PlayStation customers. Was that disappointing, particularly with the reason Sony gave?
AW: What I can say is that we launched it yesterday. We believed when we launched it that it was great value, and gamers, for the most part, have fed back that it’s great value. We’re going to continue to put things into that service that make it even better value. It will evolve and go through lots of permutations over time as we listen and learn from players who engage with it. My hope is that we can deliver that kind of service to many millions of players for years to come.
Word is circulating that the new BioWare IP which is rumored to be called Shadow Realms could be on EA’s agenda to finally be revealed at Gamescom. While rumors have been making the rounds for some time, so far EA has been mum about its existence.
We do know that EA’s is planning to provide more details on FIFA 15, Battlefield: Hardline, The Sims 4, Dragon Age Inquisition, and Dawngate at its Gamescom presser which will take place on Wednesday, August 13th at 9am BST.
While EA might reveal Shadow Realms, it is likely that BioWare has it on the release schedule for late 2015 at the soonest, but it is possible that it could even be a 2016 title. Let’s hope EA puts some of these rumors to bed and tells us what Shadow Realms is all about.
Late last year, Frank Gibeau switched roles at Electronic Arts, moving from president of the PC and console-focused EA Labels to be the executive vice president of EA Mobile. Speaking with GamesIndustry International at E3 last month, Gibeau said he was enticed by the vast opportunity for growth in the mobile world, and the chance to shape the publisher’s efforts in the space.
“One of the things I enjoy doing is building new groups, new teams and taking on cool missions,” Gibeau said. “The idea was that EA is known as a console company, and for our PC business. We’re not particularly well known for our mobile efforts, and I thought it would be an awesome challenge to go in and marshal all the talent and assets of EA and, frankly, build a mobile game company.”
It might sound a little odd to hear Gibeau speaking of building a mobile game company at EA. After all, he described EA as “the king of the premium business model” in the mobile world not too long ago, when the company was topping charts with $7 apps like The Sims 3 or raking it in with paid offerings like Tetris, Monopoly, or Scrabble.
“Two years ago, we were number one on feature phones with the premium business model,” Gibeau said. “Smart devices come in, freemium comes in, and we’re rebuilding our business. I think we’ve successfully gotten back into position and we see a lot of opportunity to grow the business going forward, but if you had talked to me about two years ago and tried to speculate there would be a company called Supercell with that much share and that many games, we wouldn’t even have come close.”
Gibeau expects that pace of upheaval to continue in the mobile market, but some things seem set in stone. For example, Gibeau is so convinced that the days of premium apps are done, he has EA Mobile working exclusively on freemium these days.
“If you look at how Asia operates, premium just doesn’t exist as a business model for interactive games, whether it’s on PC or mobile devices. If you look at the opportunity set, if you’re thinking globally, you want to go freemium so you can capture the widest possible audience in Japan, Korea, China, and so on… With premium games, you just don’t get the downloads you do with a free game. It’s better to get as many people into your experience and trying it. If they connect with it, that’s great, then you can carry them for very long periods of time. With premium, given that there are so many free offerings out there, it’s very difficult to break through.”
Unfortunately for EA, its prior expertise is only so relevant in the new mobile marketplace. Its decades of work on PCs and consoles translated well to premium apps that didn’t require constant updating, but Gibeau said running live services is a very different task – one EA needs to get better at.
“Our challenge frankly is just mastering the freemium live service component of what’s happening in mobile,” Gibeau said. “That’s where we’re spending a lot of our time right now. We think we have the right IP. We have the right talent. We’ve got great production values. Our scores from users are pretty high. It’s really about being able to be as good as Supercell, King, Gungho, or some of these other companies at sustained live services for long periods of time. We have a couple games that are doing really well on that front, like The Simpsons, Sims Freeplay, and Real Racing, but in general I think that’s where we need to spend most of our time.”
As Gibeau mentioned, EA has already had some successes on that front, but its record isn’t exactly unblemished. The company launched a freemium reboot of Dungeon Keeper earlier this year and the game was heavily criticized for its aggressive monetization approach. In May, EA shuttered original developer Mythic.
“Dungeon Keeper suffered from a few things,” Gibeau said. “I don’t think we did a particularly good job marketing it or talking to fans about their expectations for what Dungeon Keeper was going to be or ultimately should be. Brands ultimately have a certain amount of permission that you can make changes to, and I think we might have innovated too much or tried some different things that people just weren’t ready for. Or, frankly, were not in tune with what the brand would have allowed us to do. We like the idea that you can bring back a brand at EA and express it in a new way. We’ve had some successes on that front, but in the case of Dungeon Keeper, that just didn’t connect with an audience for a variety of reasons.”
The Dungeon Keeper reboot wasn’t successful, but EA continues to keep the game up and running, having passed the live service responsibilities to another studio. It’s not because the company is hoping for a turnaround story so much as it’s just one more adaptation to running games with a live service model.
“If you watch some of the things we’ve been doing over the last eight or nine months, we’ve made a commitment to players,” Gibeau said. “We’re sincere and committed to that. So when you bring in a group of people to Dungeon Keeper and you serve them, create a live service, a relationship and a connection, you just can’t pull the rug out from under them. That’s just not fair. We can sustain the Dungeon Keeper business at its level for a very long time. We have a committed group of people who are playing the game and enjoying it. So our view is going to be that we’ll keep Dungeon Keeper going as long as there’s a committed and connected audience to that game. Are we going to sequel it? Probably not. [Laughs] But we don’t want to just shut stuff off and walk away. You can’t do that in a live service environment.”
Much like EA’s institutional experience, there’s only so much of Gibeau’s past in the console and PC core gaming world that is directly relevant to today’s mobile space. But as the segment grows out of what he calls the “two guys in a garage” stage, EA’s organizational expertise will be increasingly beneficial.
“These teams are starting to become fairly sizeable,” Gibeau said, “and the teams and investment going into these games is starting to become much greater. Now they’re much, much less than you see on the console side, but there’s a certain rigor and discipline in approach from a technology and talent standpoint that’s very applicable… If you look at these devices, they will refresh their hardware and their computing power multiple times before you see a PlayStation 5. And as you see that hardware get increasing power and capability on GPU and CPU levels, our technology that we set up for gen 4 will be very applicable there. We’re going to be building technologies like Frostbite that operate on mobile devices so we can create richer, more immersive experiences on mobile.”
Even if mobile blockbusters like Candy Crush Saga aren’t exactly pushing the hardware, Gibeau said there’s still a need for all that extra horsepower. With the increased capabilities of multitasking on phones, he sees plenty of room for improvement before the industry runs up against diminishing returns on the CPU and GPU front. He likens today’s mobile titles to late-generation PS2 games, with PS3 and Xbox 360-level games just around the corner.
“As it relates to games, this is like black and white movies with no sound at this point, in terms of the type of games we’ve created,” Gibeau said. “We’re just starting to break through on the really big ideas is my personal view. If you look at games like Clash of Clans, Real Racing, even Candy Crush, they’re breaking through in new ways and spawning all types of new products that are opening up creativity and opportunities here. So I think computing power is just something we’ll continue to leverage.”
The best part for Gibeau is that the hard work of convincing people to buy these more powerful devices isn’t falling solely on the shoulders of game developers.
“The beauty of it is it’s not a single-use device,” Gibeau said, “so people will be upgrading them for a better camera, better video capability, different form factor, different user inputs, as a wearable… I think there’s so much pressure from an innovation standpoint between Samsung, Apple, Google, and Windows coming in, that they’ll continue to one up each other and there will be a very vibrant refresh cycle for a very long period of time. The screens get better, the computing power gets better, and I don’t have to worry about just games doing it like we were in the console business. Those were pretty much just games consoles; these are multi-use devices. And the beauty of it is there will be lots of different types of applications coming in and pushing that upgrade path.”
The company, whose software powers the Siri feature on Apple Inc’s iPhones, recently spoke to Samsung Electronics Co and some private equity firms for a possible deal, the Journal said.
Shares of Nuance, which has been struggling to hold on to its pricing in the handsets business, rose as much as 11 percent earlier in the week on the Nasdaq.
Carl Icahn reported a 15.9 percent increase in his stake in the company to 60.8 million shares for the quarter ended Dec. 31.
The activist investor, Nuance’s largest shareholder, held about 19.08 percent stake in the company as of March 31, 2014.
The company’s current market capitalization is about $5.45 billion, according to Thomson Reuters data.
It wasn’t clear where the talks, some of which happened earlier this year, currently stand and whether they would result in a deal, the Journal said.
The company plans to spend between $1 billion and $3 billion to initially bring 180 high-capacity satellites in orbit at lower altitudes than traditional satellites, the Wall Street Journal reported, citing people familiar with the matter. The number of satellites used could double during the project.
The project is said to be led by Greg Wyler, the founder of satellite company O3b networks, who recently joined Google with O3b’s former CTO, according to the Wall Street Journal. The project aims to overcome financial and technical problems that hindered earlier efforts, the newspaper said.
Google-backed O3b Networks launched its first satellites that aim to provide low-cost and high-speed connectivity to remote parts of the world in June 2013.
O3b’s satellites weigh about 680 kilograms but Google plans to use satellites that weigh about 110 kg, according to the Wall Street Journal.
Big tech companies are interested in bringing Internet access, and with it their services, to less connected parts of the globe. Google is already working to deliver Internet access with Project Loon, a fleet of balloons floating in the stratosphere to avoid planes and nasty weather conditions. Its plan is that devices could connect to the balloons using a special antenna.
A financial report filed by Google in December and picked up by the Wall Street Journal describes the Internet company’s intent to deliver ads on almost any IP-enabled device that it has access to in the future.
“We expect the definition of mobile to continue to evolve as more and more ‘smart’ devices gain traction in the market,” Google said in a letter addressed to the accounting branch chief at the U.S. Securities and Exchange Commission. That statement was part of an explanation of why Google doesn’t disclose its mobile revenues separately.
“For example, a few years from now, we and other companies could be serving ads and other content on refrigerators, car dashboards, thermostats, glasses, and watches, to name just a few possibilities,” the company said.
In the letter, Google said it expects users of its services to view ads on an “increasingly wide diversity of devices” in the future. “Thus,” the letter went on to say, “our advertising systems are becoming increasingly device-agnostic.”
Rather than developing separate ad campaigns for desktops, mobile and other device categories, the company said it plans to develop device-agnostic campaigns capable of dynamically delivering targeted ads “to the right user at the right time on whatever device that makes the most sense.”
Many people may not be concerned about the prospect of a future in which a smart fridge could serve up an ad for, say, toaster strudels, or a thermostat could deliver a pitch for a brand of furnaces. But privacy advocates see things differently.
The Electronic Frontier Foundation (EFF), the Electronic Privacy Information Center (EPIC) and other groups have raised concerns about the potential for privacy intrusions in a world where many things that people use on a daily basis are connected to the Internet.
The Federal Trade Commission has acknowledged the need for a closer inspection of the potential security and privacy implications of the so-called Internet of Things (IoT).
Vevo, the online music video hub that is a joint venture of two of the world’s biggest music labels, has enjoyed a nearly 50 percent spike in the number of music videos streamed each month from its platform, according to the company’s top executives.
The company, which is controlled by Universal Music Group and Sony Music Entertainment, hit a monthly average of nearly 6 billion views in December, a 46 percent rise from a year earlier, said Rio Caraeff, the chief executive officer.
About 65 percent of the videos are being watched on mobile phones, according to the company.
“On a global stage, it’s really all about mobile,” Caraeff said in Miami, where he was participating in the Billboard Latin Music Conference. “Mobile and tablet and television are where the majority of the views are happening.”
A growing number of people watch music videos from the platform on smartphones, tablets or web-connected TVs using Apple TV, Roku and XBox devices.
Google Inc is a minority stakeholder in New York-based Vevo, which was founded in 2009. Universal Music is a unit of Vivendi SA, and Sony Entertainment is part of Sony Corp.
The online music video service started out distributing videos to AOL and Google’s YouTube, creating revenue from a portion of the advertising revenue it generated.
Of the approximately 6 billion music videos streamed each month, 5 billion occur outside the United States, Caraeff said. The top countries include the UK and Germany. Vevo offers its own service in more than 13 countries and will soon roll out in Mexico.
The most watched video ever is teen pop star Justin Bieber’s “Baby” with over 1 billion streams, according to the company. Last year, Pink’s “Just Give Me a Reason” topped Vevo’s list of the most viewed videos.
Caraeff said the company is holding conversations with potential investors as it seeks to expand. He declined to say who the company has spoken with. The Wall Street Journal has reported Vevo held talks with financial services firm Guggenheim Partners.
“We are continuing to speak to investors as we try to find the right partners to grow the business more rapidly than we’ve been able to do so far,” Caraeff said. “We’re still very active in that process.”
Last week, Vevo, which provides some of the most popular content on YouTube, expanded its content partnership with Yahoo in a deal that brings Vevo’s music videos and other programming to Yahoo’s video channel, Yahoo Screen, in the United States and Canada.
The partnership is expected to soon extend to Britain, Germany, Spain, France and Italy as well as the Yahoo Screen mobile app.
Square Inc has been having discussions with several rivals for a possible sale as the mobile payments startup hopes to stem widening losses and dwindling cash, the Wall Street Journal reported, citing people familiar with the matter.
The company spoke to Google Inc earlier this year about a possible sale, the Journal reported, adding that it wasn’t clear whether the talks are continuing.
Square, founded in 2009 by Jack Dorsey, co-creator of Twitter Inc, will likely fetch billions of dollars in a sale. Square insiders sold shares earlier this year on the secondary market, valuing the company at roughly $5.2 billion, the Journal said.
The company recorded a loss of about $100 million in 2013, the Journal said, adding that the startup has consumed more than half of the roughly $340 million it raised from at least four rounds of equity financing since 2009.
Square makes credit card readers that slot into smartphones such as Apple Inc’s iPhone.
Square also had informal discussions about a deal with Apple
and eBay Inc’s PayPal in the past, but those conversations never developed into serious talks, the Journal said.
A spokesman for Square told the Journal that the company never had acquisition talks with Google. The report also quoted a PayPal spokesman as saying that the company did not have acquisition talks with Square.
Square, Google, Apple and eBay were not immediately available for comment.
The Internet retailer would jump into a crowded market dominated by Apple Inc and Samsung Electronics Co Ltd.
The company has recently been demonstrating versions of the handset to developers in San Francisco and Seattle. It intends to announce the device in June and ship to stores around the end of September, the newspaper cited the unidentified sources as saying.
Amazon has made great strides into the hardware arena as it seeks to boost sales of digital content and puts its online store in front of more users. Amazon recently launched its $99 Fire TV video-streaming box and its Kindle e-readers and Fire tablets already command respectable U.S. market share after just a few years on the market.
Rumors of an Amazon-designed smartphone have circulated for years, though executives have previously played down ambitions to leap into a heavily competitive and increasingly saturated market.
Apple and Samsung, which once accounted for the lion’s share of the smartphone market, are struggling to maintain margins as new entrants such as Huawei and Lenovo target the lower-income segment.
To stand out from the crowd, Amazon intends to equip its phones with screens that display three-dimensional images without a need for special glasses, the Journal said.
Amazon officials were not immediately available for comment.
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.
Speculation about Amazon’s plans for its TV service, including the possibility that it could launch its own streaming device, has increased ahead of a news conference in New York next week.
The Wall Street Journal reported on Thursday that the online retailer was considering a free, add-supported streaming TV and music service. Amazon spokeswoman Sally Fouts said no such plan was in the works.
“We have a video advertising business that currently offers programs like First Episode Free and ads associated with movie and game trailers, and we’re often experimenting with new things,” she said in an e-mail on Friday. “But we have no plans to offer a free streaming media service.”
Amazon’s streaming TV service currently comes included as part of its popular $99-a-year Prime service, which offers unlimited two-day shipping among other perks.
Cisco Systems Inc will offer cloud computing services, pledging to spend $1 billion over the next two years to make a foray into a market currently dominated by the world’s biggest online retailer Amazon.com Inc, the Wall Street Journal reported.
Cisco said it will spend the amount to build data centers to help run the new service called Cisco Cloud Services, the Journal reported.
Cisco, which mainly deals in networking hardware, wants to take advantage of companies’ desire to rent computing services rather than buying and maintaining their own machines.
Enterprise hardware spending is dwindling across the globe as companies cope with shrinking budgets, slowing or uncertain economies and a fundamental migration to cloud computing, which reduces demand for equipment by outsourcing data management and computing needs.
“Everybody is realizing the cloud can be a vehicle for achieving better economics (and) lower cost,” the Journal quoted Rob Lloyd, Cisco’s president of development and sales as saying.
“It does not mean that we’re embarking on a strategy to go head-to-head with Amazon.”
Microsoft Corp last year said it was cutting prices for hosting and processing customers’ online data in an aggressive challenge to Amazon’s lead in the growing business of cloud computing.
Cisco could not be immediately reached for comment by Reuters outside regular U.S.business hours.
Apple Inc is having discussions with Comcast Corp to enter into a deal for a streaming-television service that would allow Appleset-top boxes to bypass congestion on the web, the Wall Street Journal reported, citing people familiar with the matter.
The discussions are in early stages and there are a lot of hurdles to be crossed before a definitive agreement could be reached, the Journal said.
Apple, which wants its TV service’s traffic to be separated from public internet traffic over the “last mile” for faster transmission, is looking for special treatment from Comcast’s cables to bypass congestion, the report said.
Comcast and Apple declined to comment on the report.
Apple has been in talks for a faster TV set-top box with Time Warner Cable Inc, which recently agreed to be bought by Comcast.
Apple’s $99 TV box competes with similar streaming devices from Roku and Google Inc.
Netflix agreed last month to pay Comcast Corp for faster speeds, throwing open the possibility that more content companies will have to shell out for better service.
The Federal Communications Commission is in the process of drafting a new “net-neutrality” bill that would ensure that network operators disclose exactly how they manage Internet traffic and that they do not restrict consumers’ ability to surf the Web or use applications.