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LG vows to make its failing mobile unit profitable by the end of 2021
LG hasn't made a profit from its smartphone division for years, but it reckons the tide is about to turn. Speaking at a press conference at CES, the company's chief executive Kwon Bong-seok said, "LG Electronics mobile business is going to be profitable by 2021. I can say we can make that happen as LG Electronics will expand our mobile lineup and steadily release new ones attached with some wow factors to woo consumers."
LG fails to turn a profit for the first time in two years
Both of South Korea's electronics giants have announced fourth quarter results that were less than ideal. Within hours of Samsung posting a double-digit reduction in quarterly profit, LG has revealed that it lost 80.7 billion Korean won ($72.5 million) in the last three months.
MoviePass owner posts huge loss as investors launch lawsuits
Back when MoviePass first announced its $10-a-month subscription for one movie a day, AMC said the scheme was like "turning lead into gold." Since no alchemist stepped forward to do that for MoviePass, the movie ticketing service's parent company, Helios and Matheson Analytics, has posted a massive operating loss that reached $126.6 million (overall net loss of $84 million) for the quarter ending on June 30th. That's a humongous jump from the $2.7 million loss it posted for the same quarter last year, prompting shareholders to file a lawsuit against Helios and Matheson.
LG's smartphones are no longer hurting the company
It's a testament to how topsy-turvy the mobile world is that a company can make its seventh successive quarterly loss and still feel good. That's because LG's mobile division, which managed to burn almost 500 billion Korean won in the last three months of 2016, has managed to stem the flow of blood from its neck. In fact, in the first quarter of 2017, the division managed to lose just 200 million Korean won, or $176,206.
Uber has already lost more than $1.2 billion this year
Uber is a fairly well-established business at this point, so you'd be forgiven for thinking that it makes a profit at this point. But today Uber held a conference call with investors and revealed that it is losing a ton of money so far this year. According to a report from Bloomberg, Uber has lost $1.27 billion in just the first half of 2016. Head of finance Gautam Gupta reportedly said that most of those losses comes from compensation for its drivers worldwide.
EVE Online player loses $1,500 in a ship attack
You would think that no one in EVE Online would ever risk carrying around a huge pile of PLEX these days, especially after the last dozen times that something went south while someone was transporting large sums of money. But Ozuwara Ozuwara was not the kind of player to be deterred by the very real possibility of having his precious cargo destroyed. So he loaded $1,500 worth of PLEX into his ship, set off for deep space, and then got blown up by fellow player Diorden without ever making his way out of high-security space. Yes, all of the PLEX was destroyed, all 84 pieces, which comes out to roughly 70 billion ISK on the open market. The bright side is that this might at least teach the lesson that this cargo is too valuable to cart around unguarded, by which we mean that you can check back in here a couple of months from now to see the same thing happen again to another player.
Investors plug $6 million into Majesco
Majesco Entertainment completed an investment round that resulted in $6 million in funding, the Cooking Mama publisher announced today. $1 million of the funds were issued to the company with the rest stashed in escrow until certain, as-yet-unknown conditions are met by Majesco. The company also appointed two people to its boards of directors to replace two that stepped down, one of whom is Jesse Sutton, who will remain Majesco's CEO after resigning from the company's board. SEC filings in November admitted that Majesco "suffered losses that raise substantial doubt about our ability to continue as a going concern." It reported a 27.2 percent drop year-over-year in net revenue in September, as well as net losses of $2.7 million. As a result, Majesco laid off several staff in October to reduce fixed costs. The company also noted last month that it is "currently not developing any significant new games for release in fiscal 2015," which ends on October 31, 2015. [Image: Majesco]
Sony will not renew its FIFA sponsorship
Sony will reportedly not renew its FIFA sponsorship and will instead spend its money on structural reforms, according to Nikkei. The electronics giant began sponsoring the global soccer organization in 2005, signing an eight-year, 33 billion yen ($277 million using current rates) contract, which is set to expire this year. According to Nikkei, Sony participated in sales and marketing for over 40 soccer tournaments during that time, including the 2010 and 2014 World Cup matches. Sony reported a 85.6 billion yen operating loss ($766 million) in October, at which point it noted a thriving Games and Network division led by 13.5 million PS4 shipments. The company upped its loss forecast to 230 billion yen ($2.15 billion) in September after it downgraded its mobile and smartphone business by 180 billion yen ($1.68 billion). It restructured its TV division and sold off its Vaio PC brand in February as well, which resulted in the loss of 5,000 jobs. [Image: Sony]
Majesco doubting 'ability to continue' following layoffs
Majesco has fallen on hard times, as the Cooking Mama publisher "implemented a reduction of our workforce to reduce our fixed costs," according to recent SEC filings. The company's layoffs came at the very end of October, just after its independent label Midnight City launched Costume Quest 2 on PS3 and PS4. The publisher reported a net loss of $2.7 million in September for the quarter ending July 31 as well as a net revenue of $2.9 million, a 27.2 percent drop year-over year. When pointing to the earnings report in a November 6 filing, Majesco said it "suffered losses that raise substantial doubt about our ability to continue as a going concern." Likewise, Majesco is "currently not developing any significant new games for release in fiscal 2015," a period that ends on October 31, 2015. The three games slated to launch during that time are Hello Kitty and Sanrio Friends 3D Racing for 3DS, Gone Home's console port courtesy of Midnight City and Shadows: Heretic Kingdoms for PC, which is currently available in early access form on Steam. [Image: Majesco]
PS4 sales up to 13.5 million consoles
Sony reported 309.5 billion yen in sales ($2.77 billion) for its Game and Network Services division for the second quarter, ending September 30. It represents an 83.2 percent improvement year-over-year thanks to the continued success of the company's latest home console, PlayStation 4. Shipments for the PS4 have now reached 13.5 million, as the company moved 3.3 million units during the quarter. The Games and Network Services division also posted an operating income of 21.8 billion yen ($195 million), a massive increase compared to the 4.8 billion yen ($43 million) reported in the last quarter and the 4.2 billion yen loss ($37.6 million) year-over-year. While the gaming division thrives, Sony itself is in the red, reporting an 85.6 billion yen operating loss ($766 million). The company increased its loss forecast in September due to its struggling smartphone sales. [Image: Sony]
Take-Two reports slight bump in revenue for Q2
Take-Two reported $126.3 million in revenue for the second quarter (ending September 30), a slight increase compared to the $125.4 million in revenue the publisher reported last quarter. It also represents a 15.1 percent decline compared to the same quarter last year, a period that itself didn't benefit from the launch of GTA 5, but rather The Bureau: XCOM Declassified and Borderlands 2 GOTY. By comparison, Take-Two didn't have many releases in the past quarter, save for three mobile games: Civilization Revolution 2, BioShock and WWE SuperCard. The company also reported a net loss of $41.4 million for the quarter, representing a 66.7 percent improvement year-over-year, yet a 16.9 percent decline from its net losses for the last quarter ($35.4 million). With games like NBA 2K15, WWE 2K15, Borderlands: The Pre-Sequel and Civilization: Beyond Earth arriving during the following quarter, Take-Two increased its non-GAAP (Generally Accepted Accounting Principles) net revenue projections from $745 million to $760 million for Q3 2015. [Image: Take-Two]
WSJ: Sharp courting US firms for investments, will trade displays for dollars
Loans, cuts and mortgages -- Sharp is doing everything it can to meet its "profitable by 2014" pledge, and according to the Wall Street Journal, it's looking to US suitors to lend a hand. Sources close to the company say that it's offering a stake in Sharp to companies like Dell, Intel and Qualcomm in exchange for a capital investment. So far, all four companies have declined to comment, but investors would reportedly score easy access to Sharp displays, a deal that could be a boon for Dell's hardware division. The display outfit had originally hoped to bolster its bottom line by selling a capital stake to Hon Hai, but the deal fizzled in August. No official numbers have been announced, but the WSJ is being told that Sharp is hoping to take in ¥20 billion (about $240 million) from both Dell and Intel, and is negotiating a more meager investment with Qualcomm. With any luck, the international agreements will keep Sharp afloat long enough for its IGZO-based LCD panels to put some black ink in the firm's ledgers.
Sharp expects to post $1.94 billion operating loss for the year, score a meager Q2 operating profit
Sharp hasn't quite laid out its Q2 2012 financials, but it has laid down some bittersweet projections. According to Reuters, the Japanese firm hopes to post an operating profit for the current term, but will take a $1.94 billion loss for the year as a whole. This prediction is a tad more dismal then its earlier forecast, which predicted a $1.25 billion loss for 2012. The TV maker also cut its predicted net loss from ¥240 billion to ¥450 billion ($5.6 billion). Sharp still is hoping its cuts, layoffs and mortgages weren't in vain -- and a short term profit for Q2 could be all it needs to vindicate the $4.6 billion loan it took out in September. Sharp also said it was penning in $1.1 billion for restructuring expenses in Q2, hopefully helping it stay on track for its 2014 profitability goal.
Sprint sells 1.5 million iPhones, 1 million other smartphones, but makes a net loss of $767 million
Sprint's latest financials show that while the network is slowly stemming the flow of cash from its veins, it's not quite there in terms of turning a profit. The country's third biggest carrier suffered a $767 million net loss and an operating loss of $231 million -- much less than the $629 million operating loss it had in Q2, but on-par with the $208 million lost in the same period last year. The business did manage to bring in total revenues of $8.8 billion, but had to take a hit on a $397 million write-down on costs related to Network Vision and the continued pain of the Nextel shutdown. On the customer size, it added a further 900,000 users, sold 1.5 million iPhones and a further 1 million "LTE smartphones" in the quarter. Those with long memories will know that the company sold the same number of Apple handsets in the last two quarters, with around 40 percent going to new customers then as now. However, churn, the deadly enemy of all carriers, increased to 1.88 percent, up from 1.69 percent in Q2. The network did manage to coax 59 percent of former Nextel customers to stay tied up with Big Yellow, which may account for it selling nearly 1.2 million Direct Connect devices. While it's hardly a rosy estimation of Sprint's financial health, this report doesn't take into account Softbank's $20.1 billion buy-out or the regained controlling stake in Clearwire -- so we're expecting the next financial announcement to contain some more exciting news. Update: During the conference call, Dan Hesse was asked about adopting a shared data plan to rival Verizon and AT&T, but unlike the last call, he was dismissive of the idea.
360iDev: Riptide Games' App Store wins and losses
Because there are so many apps on the App Store, we often have a tendency to hear most about what are actual outliers on Apple's platform. It's very rare indeed, in fact, for the average developer to have either a giant hit or a giant loss, though obviously those games and apps tend to get the most press and become the most talked about. But for the majority of apps and developers on the store, those stories just aren't typical. Usually, the outcome of an app release is far less obvious: An app can do well at some things and not so well at others. Developer Brian Robbins of Riptide Games (who's done some speaking on the subject before) took to the stage at 360iDev this past week to do a run through his company's history, and go over what both worked and didn't about his company's many iPhone apps. He's had what we'd normally call both successes and failures on the App Store, but even Riptide's wins weren't perfect, and the biggest failures still let the company learn how to better do things in the future. In 2010, for example, Robbins said that he and his company came up with an idea they called "iLookGood," a mirror app that used the new iPhone's front-facing camera to actually work as a mirror. Despite its simplicity, that app did well and continues to grab downloads to this day, though it hasn't been updated in quite a while. But it wasn't all a success -- while the app did bring the company to spin off a popular version called iLookFunny, it also spawned a version called iArrPirate, which Robbins said was terribly unpopular. "Nobody likes pirates," he told the crowd of developers. "Don't do pirates." Robbins also said that he regretted that the iLook apps didn't have "a coherent strategy" -- they were just a silly idea that the company spun up into a brand. BopIt has been a relatively big success for Riptide -- Robbins had connections with the popular toy's makers, so when the time came to make an app for the brand in conjunction with EA, he jumped at the chance. And indeed, the BopIt games (which are now published by EA under Chillingo, but made by Riptide) have been one of Riptide's most steady brands, providing work for the company since the very beginning. But in making the first title, says Robbins, Riptide actually lost money on the property. He says he doesn't regret making the first BopIt game, as he gladly jumped at the chance to work with EA on a larger brand. But though the decision was a good one, it wasn't very profitable for Riptide. My Pet Zombie was Riptide's first really profitable title, and most App Store onlookers would probably call that one a hit (so much so that Riptide's next game, called My Pet Dragon, will use the same model). But Robbins says that My Pet Zombie had missteps as well -- it "didn't hit metrics," and he says the company could probably have followed up better on customer interest in the game. Ultimate Battle Zombies, a freemium game that Riptide released earlier this year, was the company's "biggest financial failure yet", according to Robbins. The original idea for the game was to team up with a major media network and make a game based on celebrity zombies, but at the last second, the idea was kiboshed by lawyers and their reservations, says Robbins. Riptide decided to publish the game itself, but "we shouldn't have finished it," he says. The game's goofy premise "missed its audience," according to Robbins, and the work that went into the title (which makes use of Game Center's asynchronous gameplay features) just wasn't worth it. But something good did some out of Ultimate Battle Zombies. Robbins and his team decided that instead of working remotely as usual, they would try to bring the team together and work in one place. After some research, they decided to meet up for two weeks in Florida, and at a cost of just around $12,000, were able to pull everyone down for about two weeks, having meetings by the pool and cooking all together as a group. Robbins admitted that a retreat like that probably wouldn't work for every company, and even Riptide only had everyone together for a period of about five days. But he says the experience was completely worth it for teambuilding, and any company with remote team members should consider an experience like that. In the end, said Robbins, developers need to be scrappy and work hard on whatever chances come to them. True hits and misses are actually rare on the App Store, despite how much we hear about them in the community every day. As Riptide's story shows, the majority of developers have to always deal with the good and the bad, and figure out how to best move forward when either happens.
Sony's Q1 2012 results are grim, as gaming division loses $45 million
Sony's downward slide continues in the latest financial report from the Japanese multimedia company. A $312 million loss was recorded in Q1 2012 (April 1 - June 30, 2012) across many of Sony's divisions – music, film, televisions, mobile, cameras, and gaming – with only cameras and music pulling in any profit.But hey, you don't care about cameras and TVs and stuff, right? Sony's gaming division incurred a $45 million loss – Vita's lackluster first year sales apparently weren't enough to counterbalance falling PlayStation 3 and PSP sales.Worse, Sony doesn't see things looking up anytime soon, adjusting its fiscal year outlook downward due to an expected "severe operating environment," financially. "We have downwardly revised our consolidated results forecast for the current fiscal year, anticipating a severe operating environment from the second quarter onward resulting from uncertain foreign exchange rates and trends in the global economy."
Behind the scenes video reveals Google's attention to search detail (video)
If you're interested in how much detail the engineers at Mountain View pay to every element of Google's search business, check this out. This is footage of the Quality Launch Review, a meeting that takes place every week on Thursdays. Amit Singhal assembles a room full of engineers to delve into "losses," the company term for when a search query goes awry, and turn them into "wins." This week, the team examined error-correction in searches that are over ten words long, and how best to resolve it. It may not be the most exciting thing you'll ever see, but it's a fascinating insight into the effort that begins every time you don't find what you're looking for.
Sprint announces Q4 2011 results: the iPhone brings in 720,000 new customers
Following its bittersweet Q3, the latest financial report from Sprint this quarter offers up another mixed bag of news. Net operating losses totalled $438 million, more than the $139 million posted in the same quarter last year. It suffered a staggering $1.3 billion net loss (much of that due to upfront costs associated with launching the iPhone), dwarfing the Q3's $301 million losses. Operating revenue increases were, however, the largest in the last five years, up to $8.72 billion from $8.3 billion. Net subscribers now total 55 million, with 33 million postpaid, 14.8 million prepaid and around 7.2 million arriving from wholesale, adding an extra 1.6 million Sprint customers in the last quarter. This was also the first time in a long while that new subscribers on the Sprint platform outpaced losses at the Nextel and wireline businesses. Sprint hoped to see its iPhone draw customers into its network, putting it toe-to-toe with the bigger carriers, and it largely did, with 40 percent of the 1.8 million iPhones sold landing directly in the hands of new customers. However, the higher subsidy costs of the iPhone was also responsible for these tougher financial results. Last year also saw the tentative launch of Sprint's LTE network, and that's where the future appears to be for the carrier, with its forward-looking statement hinging on exactly how fast they're able to grab the 4G bull by the horns and get it into their customers' hands. Compatibility with Clearwire's next generation network is mentioned here, as is the "financial performance of Clearwire and its ability to build, operate, and maintain its 4G network." Lightsquared, however, was conspicuously absent from Sprint's future machinations.
World of Warcraft is doing quite well in China, thank you very much
Earlier this month we heard the news that World of Warcraft's subscriber base took yet another substantial hit, although Blizzard was quick to say that most of these losses were coming from eastern countries like China. It's odd then that we've just received word that World of Warcraft is on the rise in China following an extremely profitable third quarter. NetEase, which operates World of Warcraft in the region, announced that its Q3 earnings were actually up over the same time last year. Both revenues and profits for WoW in China are on the upswing, marking a 39.8% increase year-over-year. NetEase said that it pulled in $308.3 million in revenues, out of which $128.2 million is pure profit. Subscriber hit or no, WoW continues to be a major force in the Asian market, and with numbers like these it's hard to imagine it going away any time soon.
Activision Blizzard loses 1.1 million WoW players since May, triples profits
Today's investor call with Activision Blizzard was a rollercoaster of news for MMO fans, with both good and bad news coming forth. Starting with the bad -- everyone asks to start with the bad news, don't they? -- World of Warcraft's subscriber numbers are much lower than they were this past May. The company reports that subscriptions have dropped from 11.4 million in May to 11.1 million in June to 10.3 million, representing a loss of 10% of the playerbase. These numbers represent the total worldwide, and Blizzard CEO Mike Morhaime said that most of the losses were suffered in the eastern market. No matter where the losses come from, this continues the downward trend of the title during the past year. Blizzard declined to provide a subscriber forecast for the next quarter. The good news is that the company has whooped expectations by nearly tripling its profit for the quarter over this time last year. During this past quarter, Activision Blizzard raked in $627 million worth of sales, of which $148 million is pure profit. A majority of the revenue -- 62% -- comes from its digital sales. The company expects 2012 to be even better, with titles like Diablo III and another Call of Duty in the works. CEO Bobby Kotick is nothing if not confident in the company's future: "I believe our unyielding commitment to excellence and our creative talent around the globe will continue to position Activision Blizzard as the leader in interactive entertainment."
