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Report: Apple's inventory woes fixed for holiday shoppers
A number of analysts are expecting inventory shortages to restrict holiday gadget sales. However, Forbes reports that Apple will be able to avoid the pinch. Jason Busch, the founder and Managing Director of advisory firm Azul Partner, expects Apple to keep holiday shoppers happy for three main reasons. Busch says that firstly, Apple has "superior" forecast accuracy than its competitors. Keeping a close eye on where their inventory is at all times, Apple is able to control the particulars accurately, although they don't always get it right. For example, when a new iteration of a product is released -- like the new MacBook Air -- stock of the previous version will dry up in the weeks leading to that release, demonstrating Apple's precision in inventory management. Secondly, Busch says Apple is "at the top of the [inventory management] food chain" because of its sheer weight in the consumer electronics market. "Apple controls so much volume that it has greater influence over its suppliers, at multiple levels," says Busch. Finally, Apple can build strong lead times for its most popular products. For instance, the iPad was released in April allowing for strong supply chains to be established well before the expected holiday demand. Gartner supply chain analyst Mickey North Rizza affirms this by saying, "Because Apple brought out the iPad in April, they have had time to ramp things up. Apple's efforts to build a supply chain for each product will continue to create a distinct advantage in the marketplace." With iPhone 4 and iPad supply shortages having been recently resolved, Apple smoothed the kinks in its related supply chain. Either way, if you're looking to buy a loved one some Apple gear during this festive period, we'd recommend starting early, just to be on the safe side. [via MacDailyNews]
Iwata: 3D functionality of Nintendo 3DS can be turned off
Afraid that the jump-off-the-screen 3D effects promised by Nintendo's next handheld (code-named the 3DS) will become tiresome and overly gimmicky? Addressing concerns that there may be possible health consequences with 3D gaming, Nintendo president Satoru Iwata assured Forbes that the 3D function can be turned off easily, allowing players to enjoy games in a more traditional 2D manner. While little else is known about the device, it seems like a smart move to ensure Nintendo's next system is attractive to as wide of an audience as possible. Of course, we may change our minds after its E3 debut -- perhaps the 3D effect will be so captivating that we'll be unable to think of gaming in any other way. [Via GoNintendo]
The Virtual Whirl: News of the Whirl
This week, in The Virtual Whirl, we're having our monthly roundup of news items. Things that got missed, things that didn't make the cut, things that got buried under the Star Trek Online launch, and things that really should have gotten your attention anyway.
Fortune names Jobs "CEO of the Decade"
Forbes Fortune bestowed a significant honor on Steve Jobs today, naming him their CEO of the Decade. Fortune outlines the incredible leaps in business, technology and industry Apple has made since Steve's return. For anyone who might not remember, the 90's were not kind to Apple and nearly everyone thought the company was finished. Consider this incredible fact: Apple launched OS X and iTunes, opened the first two retail stores and introduced the first iPod ... all in the same year (2001). Fortune also goes on to describe how Steve changed the film industry with Pixar, the music industry with the iTunes Store and the cell phone industry with the iPhone and the App Store. He also kicked cancer's ass. This is precisely why I'm excited about the prospect of a new piece of hardware from Apple. I won't call it a tablet because that's not what it will be. Apple didn't invent the digital music player, the mobile phone or mass distribution of media. But, they did demonstrate how to do those things the right way, which no one else could come up with. If there's a new product coming, comparing it to contemporary tablets or netbooks is a huge mistake, because it won't behave like any of them. Click below to watch Fortunes' video on this announcement. [Via MacDailyNews]
For a guy who makes $1 per year, Steve Jobs sure is rich!
Forbes Magazine published their annual "400 Richest Americans" ranking yesterday, and as usual Mr. William Gates of Microsoft leads the list at a net worth of US$50 billion. Others in the PC world are in the list -- Microsoft's favorite screamer Steve Ballmer is at #14 with US$13.3 billion, the Google twins Sergey Brin and Larry Page are tied for #11 at US$15.3 billion, and Michael Dell is lucky number 13 with US$14.5 billion -- but the "cultish king of the iGeeks", Steve Jobs, is on the second page of the list at #43 with a measly US$5.1 billion fortune. The Forbes article notes that Jobs' best investment was picking up Pixar from George Lucas in 1986 for US$10 million. He sold Pixar to Disney in 2006 for US$7.4 Billion in stock, and is now Disney's largest shareholder. Jobs still pulls down a salary of only US$1 per year as CEO of Apple, but he makes up for it in Apple stock and free use of a corporate jet. By the way, someone at Apple needs to update Steve's official company portrait (right) -- he looks a lot older now...
Activision CEO made nearly $15 million last year
Say what you will about Activision CEO Robert Kotick -- and from what we've seen in previous posts, you will -- the guy knows how to make money. Not just for Activision as a whole (which raked in close to $1 billion in Q2 this year), but for himself as well -- according to a recent Forbes profile on the controversial CEO, Kotick made $14,950,102 in 2008.Kotick caught some flack last week for joking about wanting to increase the price of Activision's releases. Now, it seems we know why -- he's only making $15 million a year. He desperately needs that extra scratch to upgrade his Azimut 62E Luxury Yacht to an Azimut 116 Luxury Yacht. Those meanies at the Santa Monica Yachting Club just won't stop picking on his puny seafaring vessel.[Via GamesIndustry]
Forbes writer defends "knockoff" slam against Rock Band
Earlier in the week, Forbes writer Peter C. Beller became the industry's latest whipping boy after taking ironic (and comical) shots at Harmonix for knocking off Activision's Guitar Hero to develop Rock Band. Calling Rock Band "a shameless knockoff of Guitar Hero," many chalked the remarks up to a journalist swallowing public relations fluff, often served to the gaming unaware in hopes to strike a cord with the readership of an unrelated industry publication.Surprisingly, Beller has come to the defense of his statements saying, "If you define knockoff as "a copy or imitation of someone or something popular" the way Merriam-Webster does, then I think Rock Band fits the bill nicely." Beller continued, explaining he is aware Harmonix was the development team behind both titles but made the statement to outline that Activision has strong competition regardless of how profitable its franchises are. Unfortunately, in the statement made to GameDaily, Beller failed to explain why his editorial was so slanted. In fact his statement failed to explain anything, really.
Forbes: Rock Band a 'shameless knockoff' of Guitar Hero
We can only assume that Forbes lives in a world with no GuitarFreaks. In the latest issue of the business magazine, a biographical profile of Activision Blizzard CEO Bobby Kotick turns controversial when it accuses Rock Band of ripping off Guitar Hero. According to the magazine, "EA also teamed with MTV to sell Rock Band, a shameless knockoff of Guitar Hero that added drums, bass and a microphone to the world of make-believe rock stars."Leaving aside the fact that Guitar Hero hardly represents the roots of its genre, such a brash statement feels distinctly at odds with the rest of the (pretty neutral) piece. There's also the role of Harmonix to consider: after all, theirs was the name behind both franchises! %Gallery-19119%[Via Joystiq]
Forbes profiles Activision CEO, calls Rock Band "shameless knockoff"
Activision Blizzard CEO Bobby Kotick is this month's Forbes magazine cover boy, where the business mag recounts his journey from sandwich delivery boy to billionaire CEO. Surprisingly (read: Not really), Kotick describes himself as not being interesting in games personally but has been more than happy to build Activision Blizzard into one of the industry's leading companies. One quote sending the games industry into a laughing dizzy is the line, written by Forbes itself (hold back the tears): "EA also teamed with MTV to sell Rock Band, a shameless knockoff of Guitar Hero that added drums, bass and a microphone to the world of make-believe rock stars."We suppose the irony should be that Guitar Hero was first developed by Harmonix, the company responsible for Rock Band. Maybe we should be laughing that it was Harmonix that took the music genre into the group setting, which led Kotick's Activision to follow suit and create Guitar Hero: World Tour. But honestly, we just think the irony is that Forbes is a shameless knockoff of Fortune.[Via Videogaming247]
Forbes profiles Kotick, calls Rock Band 'shameless knockoff of Guitar Hero'
Activision Blizzard CEO Bobby Kotick is the cover story for the latest issue of Forbes magazine, and the article's got one helluva quote -- and it's not even from the man himself. While you might balk at the businessman's lack of gaming credentials (read: he doesn't play games), this is the line, written by Forbes itself, that'll cause more than a few raised eyebrows: "EA also teamed with MTV to sell Rock Band, a shameless knockoff of Guitar Hero that added drums, bass and a microphone to the world of make-believe rock stars."The decidedly negative tone without attribution is uncharacteristic for the magazine, and also feels a bit ... off? We know the Harmonix-RedOctane schism can be a bit confusing, but when the creators of the hit franchise are the ones making Rock Band -- and doing the multi-instrument thing first -- is that really the best choice of words? [Via geoffkeighley]
Forbes: Nintendo making $6 profit on every Wii sold
While Sony and Microsoft dream of turning a profit on their consoles, Nintendo is doing just that. According to a new article from Forbes, the Big N makes $6 in operating profit from every Wii unit sold. Nearly 19 million units have been sold worldwide so far during 2008, earning Nintendo a tidy $114M in profit, taking that $6-per-system figure into account. That's not the extent of the interesting numbers in the article, though.Forbes points out that, while Nintendo is turning a profit on hardware, the fact that its top-selling software is all first party means it is losing out on serious revenue normally brought in via licensing fees. Still, according to its figures, the magazine claims that there will be in the neighborhood of 100 million more pieces of Wii software sold in 2008 (220M) than the nearest competitor, Xbox 360, at 125M (PS3 is on track for 120M). One has to wonder, though, how many of those Wii games will be snagged from a bargain bin, given recent analyst data.
Nintendo making six bucks on every Wii sold
Macquarie Securities analyst David Gibson has used Science to calculate that Nintendo makes $6 from every Wii console snapped up by the public. It's long been known that Nintendo profits from its hardware, though how much has never been revealed.If Gibson's sums are accurate, that means Nintendo made almost $4.2 million of profit from North American Wii hardware during October alone. Six dollars, for the record, is what we almost earn in a whole day of blogging. That kind of money will get you one-fifth of this amazing Wii Music add-on set!Gibson also states that Microsoft breaks even with the Xbox 360, while Sony loses cash whenever it sells a PS3. Sadly, he doesn't say how much Sony drops, so we can't point and laugh.[Via MCV]
Ziphone author demos iPhone crash to Forbes
Ziphone creator Piergiorgio Zambrini has discovered a bug with the iPhone that causes the phone to crash when it starts to play a specially-created video. Forbes.com recorded a demonstration. The bug apparently affects the audio track of the video, which takes down the iPhone operating system. I could not independently verify the bug, because the links to the movie (and the movie file itself) shown to Forbes were no longer available online. The bug does not permanently damage devices, according to Zambrini. He said he hasn't yet contacted Apple's security response team. Forbes.com informed an Apple spokesman about the flaw and is still awaiting an official comment. Zambrini claims he emailed Steve Jobs personally about the bug; around the same time, he applied for employment at Apple. Apple has not yet responded to his resume. It strikes me that Zambrini is trying to appeal to Apple in the same way that your ex-girlfriend tries to appeal to you by spray painting the front of your house. In the Forbes.com article, Zambrini now claims his goal "...is not to work for Apple." Zambrini created Ziphone, a popular iPhone unlocking tool. Thanks, Taylor! Update: A tipster sends word that he's been in touch with Apple's Product Security Team, and says the crash has been fixed as of iPhone OS 2.1. There is no threat to users as long as your iPhone software is up-to-date.
Forbes: iRex to introduce 10.2-inch E-Ink Reader 1000 on Monday
If you don't like spoilers then look away, now -- seems Forbes has all the details related to iRex's 22 September announcement. The Netherlands-based group is set to release an evolved iLiad e-reader called the iRex Reader 1000. Like Plastic Logic, iRex is targeting business users with its new 10.2-inch E-Ink e-reader able to display "any file format" including PDF, Word, and HTML-rendered documents -- sorry, no video, no color. The Reader 1000 brings a stylus with touch-screen for making notes and markups for up to 80 hours on a single charge. The base Reader 1000 is boldly expected to start at $650 (compared to the $359, 6-inch Kindle). It then ramps to $750 for the writable screen version before topping out at $850 to add WiFi, Bluetooth, and 3G data connection. Now get to it CIOs, we suspect you'll need some time to argue the case why some personnel require a laptop, smartphone, and e-reader to get through the day.[Via mobileread, Thanks Spencer H.]
Why is everyone picking on Apple?
A spate of bad news surrounding Mobile Me and iPhone 3G quality problems paired with renewed vigor from competitors Microsoft, Dell, and Nokia has Apple running out of slack from the normally fawning press (TUAW certainly not withstanding). Forbes has a story about why Apple seems to have lost its luster recently. The New York Times is waxing nostalgic with a retrospective article titled Apple Imperfect. The National Post cites TechCrunch's Michael Arrington saying Apple is "rotting" and "flailing badly at the edges." Consider the parable of the friend. Say you have a good friend, who's trustworthy, reliable and generally happy to be around you. If that friend suddenly isn't glad to see you anymore, swears at the elderly and starts drinking cheap bourbon from a hip flask in meetings, you'd say something, right? At least you'd worry that your friend was on the wrong path. That's where we find Apple today: A friend on the wrong path. Many have noted that a lack of transparency in admitting its mistakes is hurting its credibility. The fact that it's making mistakes in the first place is generally forgivable, but we've been spoiled by Apple's pristine track record of consistently delivering quality. As consumers, we want the quality back. If anything, our expectations are even higher now to properly correct the various perceived injustices we've suffered. Taking the long view, Apple will pull out of its funk. Knowing Steve Jobs, it will do so in a spectacular fashion, too, with new products, product improvements, or both. Apple isn't suffering from a lack of talent or innovation. It's suffering from management problems that any company of its size faces on a daily basis: scheduling new products, preventing employee burnout, and managing logistics. We're nowhere near Apple's nadir under Gil Amelio, over a decade ago. In fact, investors don't seem to be fazed at all, with stock prices rebounding to their levels in May. Apple may already be back.
Forbes tells the inside story of how the format war was won
In a recent Forbes article about the big turn around at Sony, we found the moves it took to ensure Blu-ray would win, to be the most interesting. According to the article, the Paramount move (understandably) had the BDA scrambling, which was evidently enough of a stressor to motivate all the divisions of Sony to work together towards a common goal. Among other things, the gaming division dropped the price of the PS3 and the movie studio had to give away Blu-ray movies with the PS3. Overall there's nothing new in the article if you've been following it all along, but aside from a few obvious mistakes -- Blue-ray and HD-DVD Forbes, really? -- it is interesting to get an inside perspective to the series of events that will always hold a special place in our gadget lives.
Leadership in EVE Online applicable to real-world ventures
EVE Online has been getting increased mainstream media coverage. Recently the New York Times covered EVE's Council of Stellar Management (CSM) summit in Reykjavik, as well as the self-styled 'bad guy' alliance Band of Brother's initiative to annihilate their rivals in New Eden, wiping them from New Eden's star maps. A new MMO article at Forbes takes a close look at the corporate paradigm of EVE Online, both in-game and out. The piece touches on the views of Goonswarm alliance leader and CSM delegate Sean Conover (aka Darius Johnson, CEO of Goonfleet) and the real-world CEO of CCP Games, Hilmar Veigar Petursson. The Icelandic CEO states: "There isn't a lot of difference between what you can apply within the game and out of it... It's more about social skills than gaming skills. It's very hard to stay on top."
Forbes details Take-Two's EA alternative: Ubisoft
The machinations of the corporate video game world have become a soap opera of unwelcome attention, would-be suitors, potential partnerships and, of course, undead vampires. While EA's restless pursuit of Take-Two continues (and continues and continues), the latter publisher isn't simply lapping up all the attention. No, Take-Two is on the lookout for potential partners, and have their "eyes open to anything to maximize stockholder value, including remaining independent."Forbes puts the partnership pieces together, arriving at either Activision or Ubisoft. Considering Activision is sorta busy with its own mega-merger, that leaves little ol' Ubisoft. Of course, by "little" and "old" we really mean "big" and "rich" – the publisher apparently has a $1.2 billlion acquisition war chest which still won't get them close to the price Take-Two is holding out for.So, perhaps a partnership (which we'll immediately begin calling Take-Twobisoft) if not an outright acquisition? There's plenty of delicious corporate synergy to go around, what with Take-Two's stable of strong IPs and Ubisoft's total lack of a sports division. Oh, and remember back when EA couldn't keep its eyes off of Ubisoft? It actually controls close to 25% of the voting shares in the French publisher, making any outside partnership increasingly sticky. The drama!
Is the iPhone App Store a threat to DS?
With the impending launch of the iPhone App Store promising to finally (officially) bring games to Apple's all-in-one portable, a Forbes editorial is again floating the idea that Nintendo's DS may be facing a threat to its market-leading portable perch. The editorial notes that the iPhone combines the touch-screen and microphone of the wildly popular Nintendo DS with the motion-sensitivity of the wildly popular Wii. Add in the support of Sega, EA and Ubisoft, along with the ability to download games wirelessly through the App Store, and you have the makings of a portable gaming game-changer.The piece makes some good points, but we think we're going to join with The Motley Fool, MacWorld and ZDNet in the ranks of those skeptical that the iPhone is going to take the gaming world by storm. The reasons for our skepticism include the iPhone's high price point, limited on-board storage space and the lack of major announced titles (Super Monkey Ball and Spore will only get you so far).The MacWorld writer probably summed it up best: "The iPhone, at its heart, is not a gaming machine. Not in the way that the DS is, where every design consideration is given to one task, and one task only: playing games." Hey, since we're already talking about wild speculation, there's always a chance Apple and Nintendo could just merge and make the upcoming "battle" moot.
The top-selling games in the US over the last 15 years
Forbes, with data supplied by NPD, has released a list of the top-selling games in the US over the last 15 years. NPD only began tracking data 15 years ago, so there may be an outlier from the '80s or early '90s, but it appears the industry really ramped up this millennium, with the top games all being released after 2001.*Holding on to the top title -- and we imagine not for very much longer -- is Grand Theft Auto: San Andreas with 9.43 million units sold. Surprisingly, Guitar Hero III isn't too far behind with 8.2 million. Madden titles occupy four of the top ten spots. Find the full list after the break.*Figuring it would be brought up, we checked with NPD about the original Pokémon Red and Blue released in 1998. Although they do have different titles, they are arguably the same game. NPD's data shows that Pokemon Red and Blue combined sold 3.1 9.9 million units. Pokémon Red with 4.9 million and Pokémon Blue with 5 million.Update: NPD gave us incorrect Pokémon numbers. We've updated the figures.[Via GameDaily]
