Shoppers eager to secure a copy of the hottest new video game can soon walk into a Target store and pay $1 to reserve a copy ahead of its release.
Starting April 19, Target is launching a "reservation program" for what it expects will be the best selling video games.
That means shoppers can purchase a $1 reservation card in the electronics department of its stores.
When they bring the card back to the same store within 7 days of the video game's release the can buy the title. They will also receive a $5 Target gift card that can used for a future purchase.
"We will hold inventory so in essence, it does guarantee you the product within the first seven days," said Target spokesman Joshua Thomas of the program.
Target already lets customer place preorders for video games on its website. But Thomas said it the in-store reservation program has an added benefit -- it will hopefully bring shoppers into its stores more frequently. They can come into its stores to make the reservation, to pick up the game when it's released, and then again to use the gift card.
Target said the reservation program will kick-off with titles such as "Punch Out!!" from Nintendo , "Ghostbusters" from Atari, and "Indiana Jones and the Staff of Kings" from LucasArts.
It's not a buxom starlet or a hunky leading man, it's a Korean-themed taco truck that sells things like Korean short rib tacos to home-made ice cream sandwiches and daily specials.
In a city where taco trucks are as ubiquitous as New York City's hot dog vendors, Kogi has used technology lure fans.
Jonathan Gold, a Pulitzer Prize-winning food critic for alternative weekly paper LA Weekly, had this to say about Kogi: "From Rosemead side streets to Venice dive bars, hungry Angelenos have a new way to roll."
(Refiles to correct Donahoe's first name to John.)
To sell Skype, or not to sell Skype. That is the question for eBay, and Wall Street has diverging opinions on whether the San Jose company will or won't unload its Internet telephone service.
Skype was acquired under the reign of former CEO Meg Whitman (now a California gubernatorial hopeful) and touted as a nifty way for eBay's millions of sellers and buyers to connect. That reality never materialized, and current CEO John Donahoe has acknowledged that synergies between eBay and Skype are nonexistent.
Still, Skype is on a tear, growing at double digits and adding 350,000 global users a day. The five-year-old company logged $551 million in revenue in 2008 -- that number is expected to double by 2011 -- and is now a subject of great speculation by analysts, who wonder whether eBay plans to spin it off, or hold it close.
Cowan and Co's Jim Friedland, for one, thinks it's for sale. Writing in a note the day after eBay held an analyst presentation to outline the company's three-year plan, Friedland said it appeared "eBay was using the Skype discussion to trigger a bidding war between Google and Microsoft."
"We believe the asset would be attractive to both Google and Microsoft to enhance their web-based enterprise application services. In addition, Skype's user base of 405 million, which is particularly strong internationally, would likely strengthen Google's dominant position in the consumer web app market."
But Bernstein Research's Jeffrey Lindsay did not see it that way: "We think the dearth of buyers such as Google or Microsoft will mean that eBay is more likely to spin out part of Skype to the public (like Time Warner did initially with Time Warner Cable)."
Huh. Donahoe, incidentally, has said only that eBay will do what's best "to maximize Skype's potential and value."
Deutsche Bank's Jeetil Patel opined that, since Skype is performing well, "Management should hold on to this business model" and Credit Suisse's Spencer Wang said he did not see eBay rushing to sell.
"While we think the company would be open to parting with Skype at the right price (currently valued at $1.8 billion on eBay's balance sheet), a divestiture of Skype does not appear imminent," Wang wrote.
Amazon's hotly anticipated Kindle e-reader got even more press on Wednesday, but not the good variety.
In an op-ed titled "The Kindle Swindle" that appeared in the New York Times Wednesday, the president of the Author's Guild, Roy Blount Jr., took Amazon to task for its text-to-speech function on the new Kindle that began shipping this week.
The new Kindle can read books aloud -- but unlike audio books, royalties are not paid to authors. Blount argues the technology Amazon uses to turn text into a human voice is quickly improving, and authors need to be "duly vigilant" about this new means of transmitting their work.
The Guild, which is studying the issue, has called the Kindle's speech function a "significant challenge to the publishing industry." It has recommended to its members that they bring up the issue of the Kindle when negotiating new book contracts.
Publishers certainly could contractually prohibit Amazon from adding audio functionality to its e-books without authorization, and Amazon could comply by adding a software tag that would prohibit its machine from creating an audio version of a book unless Amazon has acquired the appropriate rights. Until this issue is worked out, Amazon may be undermining your audio market as it exploits your e-books.
In his op-ed, Blount assured readers that the Guild will continue to provide free audio availability to the blind -- and pooh-poohed suggestions that parents should expect lawsuits from reading bedtime stories to their children.
For the record: no, the Authors Guild does not expect royalties from anybody doing noncommercial performances of "Goodnight Moon." If parents want to send their children off to bed with the voice of Kindle 2, however, it's another matter.
When it comes to Microsoft, you can count on one thing: Whatever they do will get plenty of scrutiny in on the wires, in newspapers, and across blogs. Think A-Rod or Brad and Angelina.
Last night, they announced plans to start opening retail stores, which generated a lot of attention (rightfully so, too). Here’s the plan, as Reuters put its:
The world’s largest software company, which also makes the Xbox video game console and the Zune digital music player, did not say how many stores it was looking to open, or when, or which of its products would be on sale.
That is to be decided by David Porter, a former DreamWorks Animation executive, which Microsoft named as its new vice president of retail stores.
Turner, a former Wal-Mart Stores Inc manager, will report to Microsoft chief operating officer Kevin Turner.
The long-rumored move to open stores comes as consumer spending is under severe pressure due to the recession, which has already pushed electronics chain Circuit City into bankruptcy. A similar attempt by computer maker Gateway to open its own stores some years ago was not successful.
As you would expect, plenty of others weighted in on the story. Here’s a sampling…
If done right, Microsoft might be able to show consumers the benefits (if any) of having a Windows computer, Xbox 360, Windows Mobile phone, and Zune, all in one place. At very least, they could do a better job than Best Buy at showing off PCs. (We’re not sure how well the gurus Microsoft hired last fall to do that at other big-box stores worked out.)
Conceivably, they might convince more people to buy PCs — or at least to buy newer PCs with Windows 7.
“This is, of course, ripe for mockery, and we’re sure tomorrow will bring the fruits of Photoshop contests from around the web. Will it be wall-to-wall Vista boxes? Will you have to sign a license agreement to get in? Will they avoid the color “BSOD blue”? All very funny questions, but the fact is that Microsoft’s stores could be the beginning of… well, another beginning for the oft-maligned software baron. After all, despite what the web has to say, they do manufacture more than error screens.”
The Wall Street Journal notes the poor results of other tech companies looking to move into retail:
“The failures of other stores opened by technology companies will loom over Microsoft as it launches its stores. In 2004, computer maker Gateway Inc. shuttered a network of more than 188 company-owned retail stores after weak sales. Microsoft itself operated a Microsoft store inside a movie-theater complex in San Francisco beginning in 1999, but two years later shut down the store — which showcased, but didn’t sell, Microsoft products.”
“We can’t wait to see how the Simpsons mock this one.”
Keep an eye on:
Live Nation Inc expects to beat Wall Street’s forecasts for fourth quarter adjusted operating profit when it posts earnings next month and said 2009 summer concert ticket sales are running ahead of the same period in 2008 (Reuters)
YouTube, the hugely popular online video site, has renewed a global licensing deal with Sony Music Entertainment which allows it to continue showing music videos of artists like Beyonce and Avril Lavigne (Reuters)
Google Inc has abandoned its efforts to sell advertising for broadcast radio stations, acknowledging that the three-year project has failed (Reuters)
Resembling a larger, whiter, thinner, but not-as-sexy iPhone, the Kindle 2 got its high-profile launch on Monday by Amazon, the Seattle-based online retailer.
Analysts, media and gadget hounds filled New York's Morgan Library to hear Chief Executive Jeff Bezos touting the slimmer, faster new version of the e-reader that at $359 is still hardly a steal.
The press conference even featured an appearance from horror author Stephen King, whose novella "Ur" -- about a college instructor who orders a Kindle (no joke) to frightening consequences -- is only available on the Kindle.
But despite the advance hoopla -- read Reuters' preview of the Kindle launch here -- the blogosphere was surprisingly low-key about Monday's unveiling -- perhaps given leaked photos of the supposed device that could be seen on the Internet beginning last fall.
"Wow, even Amazon is jumping on the iPhone-killer bandwagon," said one blog, http://www.boygeniusreport.com, adding that the new Kindle is 25 percent thinner than the iPhone. Gizmodo, calling its new design a success, wrote: "It looks like Amazon got a few clues from Apple and Braun's design guidelines." The www.Techcrunch.com blog summed it up even more succinctly: "It's much less ugly."
Bloggers praised its thinness, more storage, better battery life, better display and faster page turning, but some still griped at its price tag and design, with one blogger saying the new Kindle is "still not pretty."
"If I'm going to spend $370, why wouldn't I buy an iPod Touch or a Netbook and get way more functionality," asked one posting. Another referenced the ubiquitous debate in cyberspace over open devices: "Where is the universal open device that consumers really want? Limited consumers just so you can direct all sales through Amazon will not play out in the long run."
For an interesting read on how Amazon is currently cornering an underserved market niche, but how competition from tablet PCs could be an issue in the future, read here.
Few bloggers commented on the new "read-to-me" feature, which allows users to hear their content read by either a female or male voice -- although one blog said it "should be fun." That may steal away some sales of books on tape, but Kindle said the feature was still experimental.
Amazon won't disclose how many advance orders for the Kindle 2 it expects -- nor how many of the first version it sold. And still a mystery is whether or not the Kindle is cannibalizing sales from the company, whose highest margin business is physical book sales, according to Bernstein Research's Jeffrey Lindsay.
Bezos said last month for every physical book an Amazon customer with a Kindle buys, he or she buys 1.6 to 1.7 Kindle books.
Amazon’s newest Kindle is out — We’ve got reporters on the scene, and we’ll be back with more details shortly. In the meantime, here’s a link to the device on Amazon.com and part of today’s press release:
Amazon.com, Inc. today introduced Amazon Kindle 2, the new reading device that offers Kindle`s revolutionary wireless delivery of content in a new slim design with longer battery life, faster page turns, over seven times more storage, sharper images, and a new read-to-me feature. Kindle 2 is purpose-built for reading with a high-resolution 6-inch electronic paper display that looks and reads like real paper, which lets users read for hours without the eyestrain caused by reading on a backlit display. More than 230,000 books are now available in the Kindle Store, including 103 of 110 current New York Times Best Sellers and New Releases, which are typically $9.99. Top U.S. and international magazines and newspapers plus more than 1,200 different blogs are also available. Kindle 2 is available for pre-order starting today for $359 at http://amazon.com/kindle2 and will ship February 24.
While the Kindle is a tiny part of Amazon’s web retail business, it gets a ton of buzz, and a new version has been much speculated about on the web. The question is whether mainstream consumers are really ready to buy it, particularly in the current economic environment.
“We think Kindle will be an interesting product which the high-end consumers love, particularly investment bankers traveling in from Connecticut,” Bernstein Research’s Jeffrey Lindsay says in the Reuters story. ”We don’t think it will be a large penetration object any time soon.”
To help with mainstreamers, the Wall Street Journal writes, Amazon is also expected to say it has acquired a new work by best-selling novelist Stephen King that will be available exclusively, at least for a time, on Kindle.
“Many publishers have long feared that Amazon would persuade a major author to write for its Kindle on an exclusive basis. Although retailers such as Barnes & Noble Inc. have long published their own books, they have struggled to find distribution outside their own stores. But Amazon has already proven that it can sell as many Kindles as it can manufacture. Indeed, Amazon is working to overcome the supply problems that have plagued the device,” says the Journal.
We won’t know all the details until later today, so stay tuned. For now, engadget has what appear to be some early images of the new version.
Meanwhile, the New York Times has a piece today on Plastic Logic, which also makes an electronic book device. The article says that Plastic Logic will “announce partnership deals on Monday that it says will bring a number of major publications to its planned device.”
Keep an eye on:
Satellite mogul Charles Ergen made an unsolicited offer late last year to take control of Sirius XM Radio Inc and was rebuffed, according to people familiar with the situation to the Wall Street Journal (WSJ.com)
Most media companies are cutting back on investments but Comcast’s SportsNet is putting money into studio improvements and new programming and revamping its Web sites to bring in more national advertising dollars (NY Times)
Former Led Zeppelin singer Robert Plant received a “whole lotta love” at the Grammy Awards Sunday, winning five prizes including album of the year for an acclaimed collaboration with bluegrass queen Alison Krauss (Reuters)
We won’t be tempted by puns. Or any sort of lame wordplay. We’ll play this straight. Seriously. Here goes: After all the bad publicity caused by a photo of Michael Phelps apparently taking a bong hit, Kellogg has decided to dump the superswimmer.
Okay, now that’s out of the way. Here’s the basics from Reuters:
The world’s largest cereal maker said on Thursday it would not extend a contract with Phelps, who charmed audiences in Beijing last year with a record-breaking, eight-gold medal haul, saying the photo of the swimmer was inconsistent with its public image.
Phelps, estimated to make millions of dollars annually from marketing deals, issued an apology this week after a British newspaper published a photograph purportedly showing him smoking marijuana during a student party at the University of South Carolina in November.
The move doesn’t come as a complete surprise. Marketers often get nervous about this sort of thing, especially when forking out big bucks in this economy. Phelps has other deals worth millions of dollars with brands including Speedo swimwear, Omega watches, Visa Inc, Subway sandwiches and Hilton Hotels. Phelps’s agency, Octagon, said earlier this week that it had been in touch with his sponsors and that none had indicated any intention of backing out of their deals.
What changed? What’s the deal with Kellogg? The difference? One marketing executive tells AdWeek that it’s all about the kids.
Kevin Adler, founder of Engage Marketing, a sports-marketing firm in Chicago, said Kellogg’s decision comes as no surprise. While others may not have gone public in their stance towards Phelps, it’s imperative that Kellogg do so because after all, the cereal maker is heavily perceived (as) a kids’ brand, he said.
“Athletes are brands. That’s the most important umbrella concept we have to understand is if you do something that runs contrary to your brand image, it will affect your ability to monetize that brand image. It really kind of is that simple,” said Adler.
Over at Gawker, they had a slightly different take.
Kellogg, in the most boneheaded move in the entire history of all celebrity endorsements ever, is dumping Michael Phelps over his pot photo. Has any brand ever been more out of touch with its customers?… Hello? This is the best possible recommendation one can make for breakfast cereal, the favored foodstuff of THC-induced munchies victims everywhere.”
Ahhh, advertising.
Keep an eye on:
Bruce Springsteen in none to happy with the notion of a Ticketmaster-Live Nation merger (Bruce Springsteen)
U.S. magazine empire Conde Nast has replaced the publisher of The New Yorker, as the number of ad pages tumbled during the past year (Reuters)
Rockers, rappers and record executives gather in Los Angeles on Sunday for the annual Grammy Awards, but there is little to celebrate at the music industry’s biggest night (Reuters)
Apple Chief Executive Steve Jobs told the world Wednesday that he discovered that his health issues are more complex than he had previously thought, so he’s taking a medical leave of absence. Jobs, who earlier this month said his recent weight loss was caused by a hormonal imbalance that was relatively easy to treat, plans to be off until the end of June. Apple Chief Operating Officer Tim Cook will mind the shop in the interim. Once Apple shares resumed trading after-hours, investors knocked off about 10 percent of their value.
Here’s a quick roundup of what we found online about these latest developments (And of course, here’s the Reuters story before we get to the other ones):
Tim Cook should do fine as Apple’s interim day-to-day leader. He took control of the company last time Steve went on a leave of absence to treat his pancreatic cancer. Steve says he plans to “remain involved in major strategic decisions” while he is out.
Gizmodo (saying it was right all along for posting a rumor on its blog about this very subject in recent weeks, a blog that other reporters chopped into a million itty bitty pieces):
What’s interesting is that while we broke the rumor of Steve being sick a few weeks ago, and speculated that he was resigning months ago, peers at CNBC and All Things D and others were not convinced, because it was hinging on one particular source. Apparently, they believe the story now and are both moving quickly to report it. The letter above clearly notes that his health issues are more complex than previously thought, but his reasons for stepping down include the fact that stories about his health distract the company from doing its core work.
Last week’s disclosure came on the eve of the Macworld trade show, which he had attended every year since 1997. Last month, Mr. Jobs said he wouldn’t give the keynote speech at the conference and Apple would no longer participate after this year. At the time, Apple said he wouldn’t appear because it was cutting down on trade show activities, but the decision spurred new speculation about Mr. Jobs’s health.
Bloomberg (providing way-back background on why Jobs and Apple are intertwined from many investors’ points of view):
Jobs, who co-founded Apple in 1976, returned as CEO in 1997 and transformed the money-losing maker of Macintosh computers. His focus on stylish design and simple-to-use gadgets won over millions of buyers, turning Apple’s iPod media player and iPhone into best sellers. Jobs, who had successful surgery for pancreatic cancer in 2004, appeared thinner at Apple events last year.
Get well, Steve, and thank you for the MacBook Pro I got over Christmas. That thing has helped me meet more girls at Starbucks than what would have been possible otherwise. Look forward to seeing what you have prepared for us in June.
The Washington Post is closing its last U.S. bureaus outside the nation's capital as the money-losing newspaper retrenches to focus on politics and local news. Full Article
As U.S. consumers compile their holiday shopping lists, Motorola's Droid smartphone is expected to feature prominently, at the expense of the Pre and BlackBerry. Full Article
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Shoppers eager to secure a copy of the hottest new video game can soon walk into a Target store and pay $1 to reserve a copy ahead of its release.
