Will nVidia Drop Its Prices

Nvidia is about to release a range of price cuts in a bid to see off AMD in the longer term.

While the price cuts have already happened in the US, in the EU Nvidia’s GTX 980, GTX 980Ti and Titan X are still kept high  because people were buying them at the prices the Green Goblin was asking.

In the US where competition between AMD and Nvidia is tighter, the prices dropped by 10 per cent. Ironically since Europeans are more loyal to Nvidia in the high-end graphics cards market the outfit decided they could continue to pay.

According to Kitguru the new R9 Radeon 300 series appears to have upset the apple cart. The cards have been launched at similar prices or lower than Nvidia’s top tier products. Apparently Europeans were thinking of going cheaper since the Green Goblin did not seem to admire their loyalty.

It could force AMD to drop its prices as it can’t remain competitive selling top-end graphics at prices higher than Nvidia’s while having weak selling figures in non-US countries.

It will force AMD to sell its freshly launched Fury X at prices lower than planned, and for such a new card this move damage AMD. Nvidia was expected to drop prices of course, but only for its lower-end products like the 700 or 600 series.

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Is The Chip Market On The Rebound

Don’t let anyone fool you, the chipmarket is still not doing that well and there are a few problems to be sorted out before real money will be made.

FC Tseng, vice chairman for foundry VIS said that handset makers have too much inventory in their warehouses and the much hyped IoT market boom has not yet arrived.

In fact it is looking like 2015 will not be as good as 2014, which was pretty good at least as far as VIS was concerned.

Semiconductor demand for IoT applications will emerge, but no one has really worked out what the key drivers of IoT market growth will be, Tseng said.

Smartphones, devices such as watches, bracelets and glasses are all being identified as the popular applications when it comes to wearables and the Internet of Things.

VIS forecast that the global 2015 semiconductor market will increase 5 per cent in production value to $358 bn, while the foundry sector will grow by a larger 10 per cent on year to about S$50 bn.

VIS chairman and president Leuh Fang warned that the company has seen a low visibility of customer orders for the third quarter of 2015.

VIS reported record revenues and profits for 2014 and has been spending on capital expenditure like a mad thing in 2015.

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Does nVidia See Trouble Ahead?

GPU maker Nvidia is seeing trouble ahead, thanks to a slump in PC sales and a strong US dollar.

The company’s astrologers and tarot card readers have Nvidia predicted lower-than-expected revenue for the second quarter either that or someone is going to meet a tall dark stranger.

Nvidia also reported first-quarter revenue and profit below what the cocaine nose jobs of Wall Street estimated.

Chief Financial Officer Colette Kress said that there had been a fall in demand from OEMs and PC market which is softer than an Apple fanboy’s bottom.

Worldwide PC shipments fell about 6.7 percent to 68.5 million units in the first quarter, and are expected drop 4.9 percent during the year.

Rival chipmaker AMD reported a steep fall in first-quarter sales last month and said it expected weak demand for PCs to continue for some time.

Nvidia was also hurt by the strong dollar, which has risen about 9 percent. The outfit does a lot of its business in US dollars which has made its GPU gaming more expensive.

The outfit forecast second-quarter revenue of $1.01 billion, plus or minus two percent, below the average analyst estimate of $1.18 billion.

The company’s net income fell to $134 million in the first quarter ended April 26.

Revenue rose 4.4 percent to $1.15 billion, but missed the average estimate of $1.16 billion.

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Is EA Shuttering It’s Free To Play Model?

EA is shuttering four high-profile free-to-play games, all of them allied to popular IP like Battlefield and FIFA.

Battlefield Heroes, Battlefield Play4Free, Need for Speed World and FIFA World will all continue for another 90 days, at which point they will be taken offline for good. Further development on the games has stopped already.

“In more than five years since most of these titles launched, how we play games has changed dramatically,” said Patrick Soderlund, EVP of EA Games, in a statement. “These were pioneering experiences, and we’re humbled that, over the years, so many of you joined us to enjoy the games and the community.”

In terms of EA’s growing interest in free-to-play models, the real pioneer among that group is Battlefield Heroes, which was pitched at “frustrated, restricted” gamers back in 2008. Need for Speed World and Battlefield Play4Free followed, launching over the second half of 2010.

By the start of 2012, EA was reporting a combined total of 25 million players across the six games in its “Play4Free” initiative, with Battlefield Heroes and Need for Speed World contributing 10 million players each.

However, FIFA World is by no means a forerunner. It only reaching open beta late in 2013, and so it is being shuttered after substantially less than two years of public availability. This wouldn’t imply a slow decline in interest, but a lack of interest in the first place.

That’s in stark contrast to FIFA Online, the free-to-play version of the game made specifically for markets in Asia. In 2012, EA’s Andrew Wilson claimed that FIFA Online was making $100 million a year in revenue. A year later, FIFA Online 3, the most recent iteration, was the leading online sports game in both traffic and revenue in Korea.

One thing is certain, take these four titles away from EA’s free-to-play games on Origin, and you’re left with only Command & Conquer: Tiberium Alliances and Star Wars: The Old Republic – in his statement, Soderlund stressed the latter’s “enthusiastic and growing” community, and reiterated EA’s commitment to providing new content.

The remainder of the company’s free-to-play catalog is composed of games like Outernauts, The Simpsons: Tapped Out and Bejeweled Blitz. Casual, social, call them what you will, but they are intended for a very different audience to Need for Speed World and Battlefield Play4Free, and that audience has just lost two-thirds of the games EA had made to satisfy its needs.

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Did AMD Commit Fraud?

AMD must face claims that it committed securities fraud by hiding problems with the bungled 2011 launch of Llano that eventually led to a $100 million write-down, a US court has decided.

According to Techeye US District Judge Yvonne Gonzales Rogers said plaintiffs had a case that AMD officials misled them by stating in the spring of 2011 and will have to face a full trial.

The lawsuit was over the Llano chip, which AMD had claimed was “the most impressive processor in history.”

AMD originally said that the product launch would happen in the fourth quarter of 2010, sales of the Llano were delayed because of problems at the company’s chip manufacturing plant.

The then Chief Financial Officer Thomas Seifert told analysts on an April 2011 conference call that problems with chip production for the Llano were in the past, and that the company would have ample product for a launch in the second quarter.

Press officers for AMD continued to insist that there were no problems with supply, concealing the fact that it was only shipping Llanos to top-tier computer manufacturers because it did not have enough chips.

By the time AMD ramped up Llano shipments in late 2011, no one wanted them any more, leading to an inventory glut.
AMD disclosed in October 2012 that it was writing down $100 million of Llano inventory as not shiftable.

Shares fell nearly 74 percent from a peak of $8.35 in March 2012 to a low of $2.18 in October 2012 when the market learned the extent of the problems with the Llano launch.

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Microsoft Cuts The Darkside

The security of the employees of Phantom Dust developer Darkside Game Studios is in doubt, after Microsoft decided to sever all professional ties to the studio.

Phantom Dust is a remake of an Xbox game from 2004, which was designed by Yukio Futatsugi, the creator of Panzer Dragoon. Darkside’s project was unveiled at E3 last year as an exclusive title for the Xbox One, but whatever agreement existed between the studio and Microsoft has been terminated.

Here’s the official line: “Microsoft partnered with Darkside Game Studios in the development of Phantom Dust, but our working relationship has now ended. We have great respect for their studio and their work in the industry.

“While we do not have anything new to share on Phantom Dust at this time, we can confirm that development of the title continues. We look forward to sharing more details on the game as we get closer to release.”

Darkside, which is based in Florida, has contributed to the development of a host of major releases, including a couple of Xbox exclusives: Sunset Overdrive, Gears of War: Judgment, the Borderlands franchise, the Bioshock franchise; it’s a solid track record, albeit entirely composed of contract work, and Phantom Dust was to be its first solo project.

However, the “respect” Microsoft has for that track record is now the subject of suspicion, with several sources from within Darkside claiming that the company has been forced to layoff its entire staff – around 50 people.

“The executives who saw it were impressed and as late as this morning gave our team every indication that the project was on solid ground,” one of the sources said to Kotaku. “Yet we got the phone call today that someone up on high who in all likelihood wasn’t even aware of the game in detail shut it down.”

The notion that the alleged termination of Darkside’s working relationship with Microsoft was sudden is reinforced by the studio’s recruitment page, which advertised six open positions as recently as the start of January. Among the perks listed there, one stands out: “Working with major publishers.”

Microsoft offered no comment on the situation at Darkside, but we are pursuing the studio’s management for clarification.

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Microsoft Unveils Hologram Visor

Microsoft Corp surprised the tech world with the unveiling of a prototype hologram visor that can bring the Minecraft video game, Skype calls and even the landscape of Mars to three-dimensional life.

The veteran tech pioneer, which long ago lost the mantle of the world’s most inventive company, is making a bold play to regain that title in the face of stiff competition from Google Inc and Apple Inc.

Virtual or enhanced reality is the next frontier in computing interaction, with Facebook Inc focusing on its Oculus virtual reality headset and Google working on its Glass project.

Microsoft said its wire-free Microsoft HoloLens device will be available around the same time as Windows 10 this autumn. Industry analysts were broadly excited at the prospect, but skeptical that it could produce a working model at a mass-market price that soon.

“That was kind of a ‘Oh wow!’ moment,” said Mike Silver, an analyst at Gartner who tried out the prototype on Wednesday. “You would expect to see a relatively high-priced model this year or next year, then maybe it’ll take another couple of years to bring it down to a more affordable level.”

Microsoft does not have a stellar record of bringing ground-breaking technology to life. Its Kinect motion-sensing game device caused an initial stir but never gripped the popular imagination.

The company showed off a crude test version of the visor – essentially jerry-rigged wires and cameras pulled over the head – to reporters and industry analysts at a gathering at its headquarters near Seattle.

It did not allow any photographs or video of the experience, but put some images on its website.

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Samsung Moves To Block nVidia

Samsung has moved to try and block the sales of Nvidia chips in the US.

Samsung has filed a complaint with the U.S. International Trade Commission as part of patent war which appears to have broken out between the two chipmakers. Samsung claims Nvidia infringed several of its chip-related patents and for making false claims about its products. This is effectively counter-suing after Nvidia filed a suit against the company in September making more or less the same charges.

Nvidia accused Samsung and rival Qualcomm of infringing patents on its graphics-processing unit (GPU). Samsung, which had filed the lawsuit in a US federal court on November 4, is seeking damages for deliberate infringement of several technical patents, including a few that govern the way semiconductors buffer and use data.

The ITC complaint also named computer-parts manufacturers Biostar Microtech and Elitegroup. These things run and run and usually wind up with a settlement where both sides agree to keep the details quiet. The ITC is often used as leverage in such cases because it deals with things a little quicker and a product embargo to the US can be seriously damage a company’s wealth.

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IBM And Tencent Team Up

Tencent Holdings Ltd announced that it would be teaming up with International Business Machines Corp (IBM) on a new cloud software business for corporate customers, a marked departure for one of the dominant forces in China’s consumer Internet industry.

Best known for its popular WeChat messaging app and its online games rather than business software, Tencent said its cloud unit would now target small and medium enterprises in the healthcare and “smart city” industries.

Many technology firms are jockeying for a slice of China’s enterprise software market, which promises to grow sharply in coming years as businesses modernize their IT operations and move data onto the cloud.

Tencent’s alliance with IBM, which has deep experience providing computing and consulting services to corporate clients, provides the Shenzhen company a competitive answer to its Chinese rival Alibaba Group Holding Ltd’s nascent cloud efforts.

An e-commerce giant, Alibaba has been slowly building its cloud unit, which recorded just $38 million in revenue in the three months ended June 30.

Tencent said it would tap IBM for its “industry expertise and enterprise reach” but did not disclose financial terms of the deal.

For IBM, the Tencent deal is just the latest in a recent spate of new software partnerships in China, where its hardware sales have been sliding.

IBM announced a deal earlier this year to install its cutting-edge DB2 database software on Chinese rival Inspur International Ltd’s machines. Big Blue also agreed to license its database and big data technology to Chinese software vendor Yonyou Software Co Ltd.

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Sony Launches SDK For SmartEyeglass

Sony has rolled out an SDK (software development kit) for its SmartEyeglass head-mounted display, another step toward challenging Google Glass.

The glasses can connect to Android smartphones via Bluetooth and project green monochrome text or basic graphics across a field within the lenses.

Sony said it will begin sales of the eyewear to developers by March 31, the end of its fiscal year. They will be sold in Japan, the U.S. and some European countries.

The Developer Preview SDK includes an emulator, tutorials, sample code and design guidelines to make the most of the device’s hardware and sensors including an accelerometer, gyroscope and brightness sensor.

The glasses, which weigh 77 grams, are more than 85 percent transparent and include a camera that can shoot 3-megapixel images and VGA video.

Sony has emphasized that the glasses project images to a user’s natural line of sight, which differs from the Google Glass display set in a corner.

“Sony’s competitive edge lies in our achievement of a thin lens with high transparency thanks to our unique holographic light guide plate technology, which enables us to provide a bright field of vision,” a Sony spokeswoman wrote in an email.

“Furthermore, the screen size is large, and images and text are displayed from the front for both eyes (not only one eye) to facilitate easier viewing and prevent eye fatigue.”

The price for the glasses as well as availability of a consumer version are still to be decided, she added.

Bulky prototype versions of the glasses were shown at the IFA and CES electronics shows earlier this year.

Potential applications include displaying cooking instructions for chefs, running time for joggers and messages from friends.

Augmented reality-style functions are also possible, such as displaying information when a user looks at a certain bottle of wine, facial recognition or navigation information in an unfamiliar city.

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