Podcast Summary
E3 2018: Fortnite on Switch, New Bethesda Games, and More: Fortnite came to the Nintendo Switch, Bethesda announced Fallout 76, Elder Scrolls VI, and Starfield, Nintendo revealed Super Smash Bros. Ultimate and Minecraft Story Mode on Netflix, and Microsoft acquired five studios for Xbox exclusive games.
This week's VergeCast episode was packed with news from E3, the world's premier video game event. Fortnite's arrival on the Nintendo Switch was a major highlight, but the lack of cross-play between platforms left some fans frustrated. Bethesda unveiled several new games, including Fallout 76, Elder Scrolls VI, and Starfield. Nintendo showcased Super Smash Bros. Ultimate and Minecraft Story Mode coming to Netflix. Sony and Microsoft both made significant announcements, with Microsoft acquiring five studios to boost Xbox exclusive games. Indie games like Neo Cab and Ooblets also received attention. Despite the chaos of E3, the team managed to provide in-depth coverage of the biggest headlines. Stay tuned for more insights from the world of tech and gaming.
Console wars and cross-platform games: The future of gaming may not be about console exclusives as cross-platform games and PC gaming gain popularity. Companies like Microsoft and Sony are buying studios and planning for the next generation.
The console exclusives war between Sony and Microsoft may not be as significant in the future due to the rise of cross-platform games and PC gaming. Sony has won this generation with its exclusives, but Microsoft is buying studios and planning for the next generation. The biggest games in the world, such as Fortnite, League of Legends, and Minecraft, are available everywhere. Companies are focusing on the margins and fighting over exclusives rather than the future of gaming. The speakers also discussed various E3 announcements, including Microsoft's acquisition of studios and streaming service, the lack of Metroid Prime 4, and their opinions on specific games like Cyberpunk 2077 and Death Stranding.
The blurred line between user-generated content and monetization: The debate around fair compensation and copyright for user-generated content continues, with Jason Gordon-Levitt's music project for Beyond Good and Evil 2 highlighting the tension between creators and platforms.
The line between user-generated content and monetization is becoming increasingly blurred, leading to debates around fair compensation and copyright in the digital age. The case of Jason Gordon-Levitt's music project for Beyond Good and Evil 2 highlights this issue, as he is crowdsourcing music through his platform Hit Record, but the payment structure and compensation for contributors have been met with controversy. This situation reflects the larger tension between creators wanting to be compensated for their work and platforms benefiting from user-generated content. The changing landscape of copyright and the varying attitudes towards it in different creative communities add complexity to this issue. Ultimately, it's a conversation about finding a balance between creative expression, compensation, and the evolving digital landscape.
The Complexities and Realities of the Tech Industry: While exposure and opportunities can come from spec work, it's crucial to value one's work and only engage if desired. The tech industry's promises of future advancements and acquisitions may not always deliver consistent products or timelines.
While spec work can provide exposure and opportunities, it's important to value one's work and only engage in it if desired. The tech industry, including companies like Microsoft, often promise future advancements and innovations, but sometimes fall short on delivering a consistent product or timeline. Microsoft's history of platform development and acquisition of studios to produce exclusive games is a common tactic, but the execution and delivery have not always met expectations. Meanwhile, Sonos' business model may encourage the building of larger homes to accommodate more speakers, and the interview with Sonos CEO Patrick Spence sheds light on this theory. Overall, the discussions touch on the complexities and realities of the tech industry, including the balance between innovation and delivery, and the value of one's work.
New Sonos Products: Sonos One, Playbase, and Beam: CEO Patrick Spence's focus on action and innovation led to the accelerated release of Sonos One, Playbase, and Beam, responding to changing consumer demand and the importance of voice control.
Since taking over as CEO of Sonos 18 months ago, Patrick Spence has prioritized a bias to action and innovation, leading to the release of three new products: Sonos One, Playbase, and Beam. These products, some of which were already in the pipeline, were accelerated to market in response to changing consumer demand and the growing importance of voice control. The Sonos team's ability to adapt and innovate quickly has been crucial to the company's success, as it has allowed Sonos to stay competitive in the smart speaker market and build on its reputation for delivering great customer experiences. Spence's emphasis on action and experimentation has also led to the inclusion of voice control in Sonos products, which has been a key factor in their success.
Sonos working closely with Google to bring Assistant to devices: Sonos prioritizes delivering high-quality user experiences over meeting strict timelines, causing a delay in bringing Google Assistant to their devices.
Sonos is committed to providing an open system for voice services on their speakers, with plans to bring Google Assistant to their devices in the future. The delay in implementation is due to technical work required to create a seamless user experience. Sonos has a history of working closely with partners like Amazon, Google, and Apple to bring various services to their platform, and they prioritize delivering high-quality experiences over meeting strict timelines. Regarding older Sonos devices, the lack of support for AirPlay 2 and Siri is due to processor memory requirements and Apple's decision to keep Siri closed to third parties. Sonos continues to have ongoing conversations with Apple on this matter.
Sonos partners with tech companies for seamless experience: Sonos collaborates with Amazon, Google, and IKEA to integrate voice services and hardware, offering customers a seamless experience and access to multiple services through one platform. Sonos's focus on software development and user experience sets them apart, allowing them to expand reach and offer diverse products while maintaining high-quality audio.
Sonos is partnering with various tech companies and brands, such as Amazon, Google, and IKEA, to integrate their voice services and hardware with Sonos's technology. This collaboration aims to provide customers with a seamless experience and the ability to access multiple services through one platform. Sonos's focus on software development and user experience sets them apart, making it an attractive partner for companies looking to enhance their offerings. The partnership with IKEA marks a new move for Sonos, as they will be helping to develop both the hardware and software for IKEA's upcoming speakers. This strategy allows Sonos to expand its reach and offer a more diverse range of products to customers while maintaining its focus on delivering a high-quality audio experience.
Ikea-Sonos collaboration for personalized sound experience and simplified setup: Sonos partners with Ikea for hardware and software innovations, aiming for a seamless user experience and long product lifespan (5-10 years) with continuous updates
Sonos is collaborating closely with Ikea, not just on software, but also on furniture design and form factors, to create new speakers with built-in microphones for a more personalized sound experience. They're also working on simplifying the setup so users don't have to wave their devices around for TruePlay tuning or manually update the software. The goal is to create a seamless and enjoyable user experience, and they're aiming for a five to ten-year lifespan for their products, continuously updating them with new functionality as technology advances.
Sonos's focus on long-term customer engagement and satisfaction: Sonos's success comes from existing customers' love for the product, repeat business, and word-of-mouth recommendations. The company aims to expand reach through partnerships and high-end audio market, and sets itself apart with software expertise and seamless integration.
Sonos prioritizes long-term customer engagement and satisfaction over disposable devices. This approach has led to unprecedented repeat business, with over a third of sales coming from existing customers adding more Sonos products. The company's success is driven by existing customers' love for the product and their recommendations to friends and family. Sonos also aims to expand its reach by partnering with companies like Ikea and exploring possibilities in the high-end audio market. The company's focus on software expertise and seamless integration with other brands sets it apart in the industry. Sonos's goal is to provide superior sound experiences while maintaining flexibility for various types of audio systems. The company's unique business model, driven by customer engagement and word-of-mouth recommendations, has proven successful and will continue to be a focus for Sonos.
Exploring potential integrations between audio technology brands: The speaker expresses interest in partnerships for better sound in the room, prioritizing sound quality over new technologies, and having doubts about software-based solutions for certain audio standards.
The speaker is expressing a strong interest in potential integrations between different audio technology brands, specifically mentioning Denon and Pioneer. He acknowledges the current niche nature of this market but sees potential for growth and licensing revenue. The speaker also emphasizes the importance of creating the best possible sound in the room, and while they are open to new technologies, they prioritize this goal over keeping up with every new standard. The speaker mentions the example of Dolby Atmos and acknowledges its potential but expresses doubt that it can be effectively implemented in soundbars via software, implying a preference for hardware solutions. The speaker also shares their past experience with consumer expectations focusing on sound quality rather than specific technologies.
Sonos' Commitment to Quality Sound: Sonos continues to prioritize high-quality sound experiences for consumers and is comfortable with their current business model, which monetizes investments through one-time purchases.
Sonos is focused on delivering high-quality sound experiences to consumers, without feeling the need to jump on the trend of recurring revenue models or premium subscription services just yet. The company has been successful for 13 years with their current business model, which monetizes their investments in software and hardware through a one-time purchase. They are comfortable with this model and believe it is sustainable for the long term. The company is currently debating the addition of upfiring speakers to their products to offer Dolby Atmos capabilities, but have not made a decision yet. Sonos remains committed to providing good sound for consumers and continuing to invest in their products. The future of Sonos may involve exploring other revenue streams, but for now, they are content with their current business model.
Navigating the evolving smart home market: Sonos is focusing on simplicity, creating new experiences, and carefully considering adding mics to older products in the evolving smart home market
Sonos is focusing on simplicity and ease of use as the consumer electronics industry moves towards a future where various devices may have mics and speakers. Sonos CEO Patrick Spence expressed concerns about the potential for overwhelming customers with too many devices, and mentioned that the company is considering adding mics to older products on a case-by-case basis. He also emphasized the importance of creating new experiences for customers rather than simply refreshing existing products. Regarding Google Assistant integration, Spence was noncommittal about a 2018 release, stating that the hurdle was technical rather than business-related. Overall, Sonos is carefully considering how to navigate the evolving smart home market while maintaining its commitment to providing a seamless user experience.
Future of Technology: Larger, More Futuristic Designs and Real-World Solutions: Vivo's giant phone design is a trend towards larger, futuristic tech. IBM's Watson and Cloud help farmers monitor crops and reduce water waste. Elon Musk's companies tackle real-world issues and create headlines.
The future of technology, particularly phones, is heading towards larger and more futuristic designs. Vivo's upcoming phone with no bezels and a pop-up selfie camera is a prime example of this trend. The size of the phone in the press images, which depict it as being the size of a city or a Boeing 747, is a testament to this. While this may seem far-fetched, the idea of gigantic phones is not as impossible as it may seem. In fact, Elon Musk's Boring Company is already working on a high-speed underground train from downtown Chicago to O'Hare Airport, which could potentially be completed in just 12 minutes. Moreover, technology is also being used to address real-world issues, such as the need for food production to keep up with the growing population. IBM's Watson and the IBM Cloud are providing farmers with access to weather data and analyzing satellite imagery to help them monitor soil, moisture levels, and reduce water waste. Meanwhile, Musk himself has been making headlines with his companies, from selling flamethrowers through the Boring Company to announcing a deal with the city of Chicago for a high-speed underground train. In conclusion, the future of technology is heading towards larger, more futuristic designs, while also addressing real-world issues through innovative solutions.
Elon Musk's Boring Company plans high-speed transportation system from LA to SF: Musk's Boring Company aims to build a high-speed transportation system between LA and SF, generating revenue from ticket sales, ads, and vehicle sales, despite funding uncertainty.
Elon Musk's Boring Company is planning to build a high-speed transportation system from Los Angeles to San Francisco with revenue coming from ticket sales, ads, and vehicle sales. Musk has raised funds through various means, including the sale of flamethrowers, but it's unclear where the billions needed will come from. The proposed station design resembles a space station, and while there are concerns about the cost and feasibility, Musk's ambitious vision continues to capture the public's imagination. In other news, HTC's U12 Plus phone received mixed reviews, with critics praising the camera but expressing disappointment over the pressure-sensitive buttons. HTC's phone division is facing uncertainty after Google poached many of its employees. These are just a few of the latest updates on Elon Musk and tech news. Stay tuned for more.
Managed devices and subscription models in consumer technology: The future of consumer technology may involve more managed devices and subscription models, but the implications and potential drawbacks are still being debated. Controversy arose when Plume announced a change to a subscription model for their routers, highlighting the importance of clear communication and customer-focused strategies.
The future of consumer technology may involve more managed devices and subscription models, but the implications and potential drawbacks are still being worked out. For instance, Plume, a mesh Wi-Fi router company, initially announced a change in pricing that required customers to pay a subscription fee for the routers to function. This sparked controversy and backlash, leading to public debates between Plume and Eero, another router company, over the future of managed hardware and consumer technology. The situation highlights the potential benefits and challenges of subscription models and managed devices, as well as the importance of clear communication and customer-focused business strategies. Ultimately, the debate serves as a reminder that the tech industry is constantly evolving, and companies must navigate the complexities of new business models and consumer expectations.
Net Neutrality Repeal and ISP Mergers: A Complex Regulatory Landscape: The repeal of net neutrality and ongoing ISP mergers are creating a complex regulatory landscape with potential negative consequences for consumers, including prioritized streaming services and higher costs.
The repeal of net neutrality and the ongoing mergers between content companies and internet service providers are creating a complex regulatory landscape with potential negative consequences for consumers. The net neutrality repeal has led to a flurry of state-level responses and court battles, while the mergers could result in prioritized streaming services and higher costs for consumers. The government's handling of the AT&T-Time Warner merger was criticized for failing to adequately address potential anti-competitive practices, and the lack of clear regulatory guidelines could lead to further confusion and consumer harm. The issue is likely to be a major point of contention in the upcoming midterm elections.
Testimony on potential coordination between AT&T and Comcast: Judge's surprise approval of AT&T-Time Warner merger without conditions despite economist's inability to quantify coordination risk and Comcast's net neutrality consent decree.
During a trial regarding AT&T's proposed acquisition of Time Warner, economist Carl Shapiro testified about the potential for coordination between AT&T and Comcast to harm other video providers. However, Shapiro admitted he couldn't quantify the risk of such coordination, leaving the government's case based on conjecture. The judge in the case was expected to impose conditions on the merger to prevent collusion, but instead approved it without conditions. The judge's decision was surprising given that Comcast, a major competitor of AT&T, was also under a consent decree that effectively imposed net neutrality on its network. The decision allowed AT&T and Time Warner to set a deadline for their deal, which, if not met, would result in the deal being terminated. This case highlights the challenges of antitrust regulation and the importance of clear evidence to support merger restrictions.
AT&T-Time Warner Merger Approved: A Vertical Deal with Modern Implications: The AT&T-Time Warner merger, the first major vertical merger in 40 years, was approved despite concerns over decreased competition and increased market power. The new antitrust approach focuses on net neutrality and traffic prioritization, potentially leading to more vertical mergers.
The AT&T-Time Warner merger, one of the largest in corporate history, was recently approved by a U.S. court after a 1.5-year-long trial. The government could still appeal the decision, but the defendants have won a significant victory. This merger, which combines a distributor (AT&T) and a content producer (Time Warner), is considered a vertical merger, and it's the first of its kind to be attempted in 40 years. Traditionally, vertical mergers are discouraged due to their potential to decrease competition and increase market power for the new entity. However, in the modern era, where many products are free or heavily discounted, it's challenging to measure the pricing effects of such mergers. The new antitrust approach, referred to as hipster antitrust, focuses on the potential impact on net neutrality and the prioritization of traffic. The decision to approve this merger could pave the way for more vertical mergers in the future, with companies like Comcast and Disney potentially making similar moves. The Fox board is currently deciding between accepting a $65 billion check from Comcast or holding onto $50 billion worth of Disney stock. The outcome of this decision could significantly impact the media landscape.
Corporate Giants and the Future of Capitalism: The speaker critiques the mergers of large corporations and their potential collapse, advocating for new antitrust laws to prevent dominance and control.
The media landscape is undergoing significant changes, with companies merging and adopting new business models, such as subscription-based services and loot boxes for cell phone service. The speaker expresses a nihilistic view that these large corporations may eventually lose sight of their goals and fail, leading to a potential collapse of capitalism. The speaker also criticizes the judge's decision in the AT&T and Time Warner merger case, arguing that the traditional antitrust arguments used to block such mergers are not sufficient and that new approaches, such as considering platform dominance and control, are necessary. Ultimately, the speaker expresses a desire for these corporations to fail and for new, more effective antitrust laws to be put in place.
New ways to measure market competitiveness: Access to distribution and cultural compatibility are important factors to consider in evaluating market competitiveness, especially in the age of dominant platforms like Amazon.
The traditional methods of measuring competitiveness through price may not be effective in today's market, especially when it comes to dominant platforms like Amazon that rarely raise prices and offer free participation. Instead, access to distribution and cultural compatibility are new ways to evaluate market competitiveness. The merger of AT&T and Time Warner serves as a cautionary tale of the challenges that come with merging companies from different industries and cultures. The hubris of executives in thinking they can successfully merge companies with vastly different cultures can lead to downfall. Companies like AOL, which had a strong distribution network but failed to merge successfully with Time Warner, serve as a reminder of the importance of cultural compatibility. Overall, the conversation highlights the need for new ways to measure competitiveness and the potential pitfalls of mergers between companies with vastly different cultures.
