Tech wrap: Earnings hit as Apple reigns
Quarterly earnings suffered at major technology and telecoms companies in part because of demand for gadgets made by Apple, one day after core suppliers to Apple savored strong earnings results posted by the iPhone and iPad maker on Tuesday.
AT&T posted a $6.7 billion quarterly loss as it was weighed down by a hefty break-up fee for its failed T-Mobile USA merger and other big charges on top of costly subsidies for smartphones such as Apple’s iPhone. While the wireless provider beat analysts’ expectations for subscriber additions, the growth came at a massive cost as its wireless service margins plummeted. On top of the $4 billion break-up package charge, AT&T also took a big impairment charge for its telephone directory business, which it said it was considering selling.
Nokia reported a 73 percent fall in fourth-quarter earnings as sales of its new Windows Phones failed to dent the dominance of Apple’s iPhone or compensate for diving sales of its own old smartphones. Apple reported earlier this week sales of 37 million iPhones for the December quarter. Nokia has sold over 1 million Windows “Lumia” smartphones since its launch in mid-November. Nokia said it expected its phone business’ underlying earnings to be around breakeven in the first quarter, well below analysts’ forecasts, with sales falling more than usual in the seasonally weaker quarter.
Motorola Mobility posted a quarterly loss after it warned earlier this month that it was having a tough time competing in the smartphone market amid intense competition from rivals such as the Apple iPhone. The company, which is seeking approval to be bought by Google, reported a net loss of $80 million or 27 cents per share compared with a profit of $80 million or 27 cents per share in the same quarter the year before. Revenue rose slightly to $3.436 billion from $3.425 billion in the year ago quarter.
Nintendo posted a sharp drop in quarterly profit and forecast a bigger-than-expected full-year loss, as it battles a strong yen and its games devices lose ground to gadgets such as Apple’s iPhone. Nintendo now expects an annual operating loss of 45 billion yen ($575 million), dwarfing expectations of a 4.2 billion yen loss, based on the average of 21 analyst forecasts.
“To say that (the days of consoles) are over is likely an overstatement, but social network and Internet delivered games are growing and structurally changing the future of the industry, which is a strong wind against Nintendo,” said Shigeo Sugawara, at Sompo Japan Nipponkoa Asset Management.
Lawmakers on the House Energy and Commerce Committee asked Google to provide answers about recent changes to the search engine’s privacy policy. On Tuesday, Google announced that it was unifying its privacy policy across 60 of its Web services, which allows the company to share data between any of those services. In a letter to Google Chief Executive Larry Page, the lawmakers said the company’s announcement “raises questions about whether consumers can opt-out of the new data sharing system either globally or on a product-by-product basis.”
Tech wrap: Twitter sings about new site
Twitter revamped its website to make the microblogging service easier to use and to help companies better showcase their brands. The new version of Twitter features a redesigned look that the company hopes will make it easier to find interesting content on the service, as well as technological improvements that it said will speed up the service. It also features a revamped profile page, in which a company can highlight specific feature, such as videos or photos. Previously, the profile pages displayed a chronological list of the company’s most recent Tweets.
Apple’s next iPad will be available in February, Business Insider’s Jay Yarrow writes, citing Citi analyst Richard Gardner. The new iPad will feature a screen with twice the resolution of the current model, Yarrow adds.
Verizon Wireless blamed technical problems for an outage on its recently launched high-speed, 4G network, which prevented some U.S. customers from accessing the Internet for about 24 hours. It is at least the second outage since Verizon launched its 4G data service. Trade publication FierceWireless said the company had a major service disruption in April.
Zynga CEO Mark Pincus said the social networking games company can double the number of its paying players, but he and other executives sidestepped questions about player retention and churn rates at an IPO roadshow luncheon in Boston. At the end of September, Zynga, known for popular games such as FarmVille and Mafia Wars, had about 6.7 million unique players. Paying players account for less than 3 percent of Zynga’s total number of players.
Google does not work with nor does it support Carrier IQ, the software maker which has been accused of violating millions of mobile phone users’ privacy rights, according to Executive Chairman Eric Schmidt. “Android is an open platform, so it’s possible for people to build software that’s actually not very good for you, and this appears to be one,” Schmidt said.
Nintendo denied a report that Shigeru Miyamoto, widely seen as the world’s most influential games designer, would step down from his current position and take a smaller role in the company. Wired magazine had quoted the 59-year-old creator of popular games franchises including Super Mario Bros and The Legend of Zelda as saying in an interview that he wanted to retire and work on smaller projects, passing the torch to younger designers.
EA: We love Wii U
Back in June, everyone was talking about the Wii U, Nintendo’s first video game console with high-definition graphics unveiled at the Electronic Entertainment Expo (E3) in Los Angeles.
Since then, no one’s heard much more about Wii U, which has a tablet screen for a controller and can be used in conjunction with Wii remotes. Nintendo must be hunkering down to put the finishing touches on it before it hits stores sometime next year.
But Peter Moore, the video game industry veteran who was promoted to be Electronic Arts’ chief operating officer in August, told Reuters this week that everything appears to be on track with the Wii U, at least from his perspective working for a publisher making games for it.
“There are no indications that there’s anything that feels like it’s off target,” Moore said. Nintendo’s stock has taken a beating in recent months and its share price is approaching its low for the year.
Moore said he will be visiting Nintendo’s hometown of Kyoto next week to check on how the console is shaping up.
“From our perspective right now, specs are a big deal,” he said, adding that during his trip, he will looking to find out more about the gadget’s graphic and computer processing units, its price and when it might be shipped.
Moore, who has experience launching consoles from his days at Microsoft, says Nintendo was smart to incorporate a tablet into the console with the Wii U.
Tech wrap: Broadcom buys NetLogic
Chipmaker Broadcom Corp plans to buy NetLogic Microsystems Inc for about $3.7 billion to expand its lineup of chips used in wireless network equipment to take advantage of growing demand for mobile data services.
Google Inc’s effort to break into the daily deal industry and challenge industry leaders Groupon and LivingSocial is not going well, according to data released on Monday.
Analysts are predicting that Nintendo will sell fewer 3D handheld players according to Bloomberg. 3DS sales are expected to be 16 percent less than Nintendo’s annual goal of 16 million units.
Dolby Laboratories said it has withdrawn its patent infringement lawsuit against Research In Motion after the BlackBerry maker inked a licensing deal to use of some of Dolby’s technologies.
Sony: Our tablets are coming… eventually
Sony teased out a few more details about its new Android tablets — codenamed S1 and S2 — and let reporters briefly handle prototypes.
AT&T will be the exclusive U.S. carrier for the S2, a double-screened device that bears a close resemblance to Nintendo’s DS handheld gaming device. Sony showed off how users could turn it into a book.
Executives stressed that the tablets can connect to other Sony products, such as Blu-Ray players, TVs and PlayStation content, something Apple can’t offer. Like the Sony Ericsson Experia Play AKA, “the PlayStation phone,” the Adobe-Flash enabled tablets will come pre-loaded with the retro game“Crash Bandicoot”.
Sony once again vowed to take the No. 2 tablet spot behind Apple despite still not revealing when its new tablets would come out or how much they would cost. That news could be more than a month away but the tablets should be released this year, the company said.
Why would a customer choose a Sony tablet over an iPad? Phil Molyneux, Sony Electronics president and COO, said customers looking for a faster, smaller device that can fit in your pocket will turn to Sony’s dual-screen S2 tablet.
“You can’t do that with other devices unless you have bigger pockets,” he said.
E3: Strauss Zelnick dishes on Wii U, Zynga and why foie gras tastes better than chewing gum
Take-Two Interactive occupies a massive booth at the Los Angeles Convention Center, where it’s showing off its new games and serving beer at the elaborate sports bar it constructed on the show floor. Under its CEO, Strauss Zelnick, Take-Two has been showing renewed financial health in recent quarters. In February, it posted its first profitable year in nearly a decade without a new release of its blockbuster video game franchise “Grand Theft Auto.” Zelnick sat down with Reuters for an in depth chat touching on everything from Nintendo’s new console to Zynga’s business model, and the difference between foie gras and chewing gum.
Reuters: Are publishers on board more than ever before with Nintendo on the Wii U?
Zelnick: Well, It’s hard to know, right? At E3, there’s always a great deal of enthusiasm, as there should be. It remains to be seen what the releases schedules look like. We do think it’s pretty interesting. What they are doing with one display in your hands and the other display that’s wireless in front of you and the ability to have them work independently as well as together, creates a lot of interesting creative opportunities and that’s what we’re looking for. We’ll see how our creative teams feel but right now it looks pretty interesting.
Reuters: Will the touchscreen appeal to the mass market?
Zelnick: It all depends on the execution. You can take that product and execute a kid’s game that’s simple or take that product and do something that’s very complex. It remains to be seen. And that was what was exciting about the Wii. We supported the Wii in the beginning. If you recall, we did “Carnival Games” for the Wii and we also did “Manhunt 2” for the Wii, so we did do an adults-focused title. As it turns out, the Wii turned out being more interesting from a family and kids point of view. It remains to be seen how the Wii U plays out but obviously it’s interesting. We support it. We love all our children equally and we support everyone.
Reuters: You launched a new franchise recently, “L.A. Noire” and a year ago you launched another entirely new franchise, “Red Dead Redempion.” How hard is it to launch new intellectual property in this landscape?
Tech wrap: Nintendo debuts Wii U
Nintendo took the wraps off a high-definition version of its hit Wii, with a 6.2-inch touchscreen-equipped controller that the leading videogame hardware maker hopes will appeal to a more hardcore audience. Early reviews of the Wii U were mixed, with analysts saying the device stopped short of being game-changing. But some liked the innovation in the controller, a device slightly larger than Apple’s iPhone and whose touchscreen, video-call capability and extra functions may appeal to gamers who play longer and more intensely.
The new device will go on sale between April and December 2012, the company told reporters in LA without saying how much it would cost.
Data storage firm EMC offered to replace millions of potentially compromised “SecurID” electronic keys after hackers used data stolen from its RSA security division to break into Lockheed Martin’s network. RSA, which makes the SecurID keys, said in a letter published on its website that it had confirmed information taken from it in March was used in the attack on Lockheed Martin.
Sony unveiled the pricing of its new PlayStation Vita handheld gaming device at a flashy LA event and immediately ran into criticism the gadget was too expensive. It will go on sale for $249, or $299 for a 3G mobile version, in time for year-end holidays, Sony’s No.2 executive Kazuo Hirai told reporters. Hirai drew some groans from the audience of several thousand when he said Sony would work with AT&T as the exclusive carrier for the Vita.
A blogger sued for defamation over comments posted on an Internet message board is not entitled to the same protections as a journalist, the New Jersey Supreme Court ruled. The court said that blogger Shellee Hale’s criticism of a software company on a porn industry bulletin board was not covered by the New Jersey press shield law, which protects members of the news media from revealing their confidential sources.
Retailers are betting tech-savvy teens will urge their parents to splurge on tablet computers as the new school year nears, writes Dhanya Skariachan. Students are using more technology in the classroom at the same time as a large expansion of tablet offerings, according to Ryan Vero, OfficeMax’s chief merchandising officer. Baylor School in Chattanooga, Tennessee has already told students they will have to buy or lease an iPad by next fall.
“The year will be the first year where there is a broad set of competitive products out in the marketplace,” Vero said. “Everybody is pretty bullish about the potential for that product.”
Bah.. Now to sell my Wii before gamestop lowers its trade value to 20$ like they do every time a new console is announced.. Then place a pre order even though I don’t really want this -_-
Damn you Nintendo for tapping into my inner child!
Also anyone know if there’s anywhere that you can pre order from? Amazon doesn’t have it up yet and the only site I saw that has some sort of recognition for pre orders is http://www.preorder-wiiu.com.. but even there you still can’t pre order.
Introducing Nintendo’s Wii U
Nintendo just announced the successor to the Wii at the annual U.S. video game confab, E3 on Tuesday.
Here’s what we know so far:
The new console is the first Nintendo device to support HD graphics. Its controller features a 6.2-inch touch-screen that works as a second display showing the same images being played on TV. The screen can also provide gamers with additional information to give them an edge over competitors. It can run old Nintendo games, has motion-sensor capabilities and can be used in conjunction with Wii controllers, the company said. Additional hands not included!
- plays 10 adp full HD graphics, can connect to HDMI
- will play proprietary high density discs and downloaded content
- hits stores between April 1 2012 and December 2012
- no HD video on touchscreen, but the new console will deliver HD video on TV screens
Bah.. Now to sell my Wii before gamestop lowers its trade value to 20$ like they do every time a new console is announced.. Then place a pre order even though I don’t really want this -_-
Damn you Nintendo for tapping into my inner child!
Also anyone know if there’s anywhere that you can pre order from? Amazon doesn’t have it up yet and the only site I saw that has some sort of recognition for pre orders is http://www.preorder-wiiu.com.. but even there you still can’t pre order.
Activision’s brainy toys take over
At E3, the huge video game trade show that kicks off in LA on Tuesday, the main attention usually falls on first-person shooter titles aimed at teens or young male gamers. Games targeted at children can easily get lost under the bright lights.
Activision Blizzard, known for “Call of Duty” and ”World of Warcraft” is trying to change this by backing its new kids game, “Skylanders” with a hefty marketing push at E3.
“It’s getting the full triple-A treatment,” said Laird Malamed, a senior vice president of development at Activision.
“I don’t rememeber a triple-A product launch of new intellectual property like this,” said Malamed, who added that he helped launch the first ”Call of Duty” game in 2003.
“Skylanders,” which is aimed at 6- to 10-year-olds, features action figures that come to life onscreen when you hook them up to consoles. A chip inside the figure stores its characters’ achievements and progress within the game. ”Skylanders,” which also goes by the nickname ”toys with brains” was written by Toy Story scribes Alek Sokolow and Joel Cohen.
While Activision first announced the game at New York’s toy fair in February, it revealed ahead of E3 that the same toys can be used with all consoles–Nintendo’s Wii, Microsoft’s Xbox 360 and Sony’s PlayStation3. If one child is playing the game at home on an Xbox, for example, he or she could bring the toy to a friend’s house and then load up the same character on a PlayStation– a move the company called a “first-ever cross-platform gameplay experience.”
Pretty good idea. http://stars.ign.com/objects/142/1421673 4.html The whole “pokemon” aspect of collection will probably be the bane of parents whose kids “gotta have ‘em all,” but this has some potential.
Penny Arcade Expo East: Nothing small here
Believe it or not, there were crowds gathered on Friday doing something else besides waiting for an iPad 2. About 60,000 people swarmed Boston for Penny Arcade East, a major convention for video game fans on the East Coast.
PAX doesn’t garner as much media attention as industry shows like E3 in Los Angeles each summer, where major games companies announce new products. While there aren’t as many reporters or or executives in attendance, PAX EAST is still a big event for gamers- the hoards of people who help make the $60.4 million video game industry bigger than Hollywood.
It’s for people like Andrew Hydrusko, a 23-year-old student who drove from Delaware with four friends so he could dress as his favorite Mega Man character, Protoman, at the show. He donned a poncho, bullets and a painted motorcycle helmet reminiscent of a power ranger, as he waited to play Guild Wars 2, an upcoming MMO game from NCsoft.
The publicly-traded Korean company lured people away from the main hall to a neighboring hotel so fans could fully immerse themselves in their game. With a raffle, an open bar and hors d’oeuvres promised, the lines got just as crazy as anything on the show floor next door.
Randall Price, senior vice president of global business at ArenaNet, which develops MMOs for NCsoft, says while PAX East isn’t as high-profile as some other shows, it’s his chance to interact one-on-one with passionate players of Guild Wars, which has sold 7 million copies since 2005.
“PAX is huge for us. This is where our fans get to tell us face-to-face what they are thinking about our game and what they want to see,” Price says.
Photo: Main show floor at PAX EAST by Liana B. Baker
