Recession
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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.
Bitcoin is failing as a currency
It's been a good year for bitcoin investors but a terrible one for those who hoped that the cryptocurrency would become the de facto tender for the internet. Satoshi Nakamoto, its creator, may be dismayed at what has become of the project, intended as peer-to-peer electronic cash that didn't require the supervision of banks. Instead, bitcoin has become an investment vehicle, embraced by many on Wall Street, an asset class like every other. For all the success of the blockchain and bitcoin's soaring value, it's clear that Nakamoto's original vision has failed.
Foxconn announces $226 million half-year net loss, blames usual suspects
Manufacturing behemoth Foxconn (Hon Hai) has announced a record net loss of $226 million on turnover of $2 billion for the first half of the year. Unsurprisingly, it attributed the loss to the European debt crisis, global economic slowdown and its customers "continuous struggle" for market share. While it made a big push to encourage new customers, capacity far outstripped demand. In order to stem the tide, it's relocating some of its Shenzhen-based facilities to sites in Northern China -- and it's also in talks with carriers to become an ODM, building white-label smartphones in the same way that Huawei and ZTE do. While the loss isn't a rosy picture, the company does have nearly $2 billion stashed in the bank, so it shouldn't be worrying too much.
Acer scrapes $1.87 million in profit as it becomes world's third biggest PC maker
Acer rose a place to become the world's third biggest PC maker this quarter, with net profits rising to $14.48 million, up net profit a slender $1.87 million, down from $11.2 million last quarter. Despite the drop, it's the company's second positive period since it ended 2011 with a $212 million loss, but the financial crises in the US, Europe, China and Asia Pacific all hampering its recovery. Like many of its PC brethren, it's pinning hopes on Windows 8 to spark a buying frenzy, but thanks to tight margins, only expects profits to be "on par" with those it's just announced. [Image Credit: Wikimedia Commons]
Elpida files for bankruptcy protection as debts of $5.5 billion are revealed
DRAM Maker Elpida has petitioned for a corporate reorganization (the equivalent of Chapter 11 or Administration) as the company has revealed it is close to collapse. President Yukio Sakamoto is expected to resign as the scapegoat for the calamity as it files for protection at the Tokyo District Court. The company, founded in 1999 as NEC Hitachi Memory Inc. has produced DRAM Products since 2000. It founded three wholly-owned subsidiaries: Tera Probe, which conducted wafer probe testing, Akita Elpida Memory Inc. which handled the back-end processes of DRAM production and Rexchip Electronics Corp, which handled the front-end. After a blockbuster period of invention, a fall in prices and the global recession in 2006 forced the company to enter restructuring with a 30 billion Yen ($372.54 million) Government-backed loan. That swathe of cash was used to pump more money into investment and R&D, but the combination of strong Yen and the Thailand flooding has once again forced the company to come clean about its finances. It revealed today that it had debts of 448,033 million Yen, or $5.5 billion and without the protection of the court wouldn't last too much longer. Times of Japan points to the strength of Samsung's memory offerings as being a big contributor to Elpida's collapse, with president Sakamoto saying that DRAM is now as cheap as a "rice ball."
The Anvil of Crom: Recessions, appearance tabs, and PvP for the returning player
Welcome to the Anvil of Crom, Conan fans. It's been a whirlwind couple of weeks, and all of the announcements, new content, business model changes, and general gameplay shenanigans are only going to generate more Age of Conan discussion as the summer wears on. This week I'd like to take a brief time out to highlight some worthwhile (and ongoing) community discussions. Every so often it's good to take a bit of a break from my rantings and ravings and hand the microphone to you guys, and what better way to do that than by examining a few of the more interesting forum discussions to be found on both the U.S. and EU boards. Without further ado, join me after the cut and add your two copper to the comment section.
Shocker: CEA's spending report finds Americans buying more technology
Guess what kiddos? That recession that harshed your mellow all last year is officially over and done with... according to the Consumer Electronics Association, anyway. Based on a new report put out today by the CEA (you know, that organization that sets up CES each year?), the average US household spent $1,380 on consumer electronics over the past dozen months, which represents an increase of $151 from last year. The report also found that the average household spent 12 percent more on CE devices over the past year, and individual consumer spending shot up 10 percent year-over-year. Other tidbits included: ladies spent more on CE wares than the did last year (but still trail the guys overall), and the average home reported owning 25 consumer electronic products, up from 23 in 2009. We're also told that 86 percent of all US households own at least one computer, making it the third most owned CE product behind TVs and DVD players. Oh, and as for those pesky netbooks? 12 percent of US households own one of those, while 58 percent own "laptops" of some sort. Head on past the break for the full skinny -- we hope you're in the mood for good news, 'cause that's all you're getting. [Image courtesy of TooMuchNick / WireImage]
Nippon Ichi earnings plummet in 2009
[Prinny Blog] Disgaea developer and publisher Nippon Ichi didn't have the best 2009, dood. Last week, the company announced its earnings for the first nine months of its fiscal year (ending December 31, 2009), recording operating profits 97.5% lower than those of 2008. This week, reacting to the news of the precipitous drop, investors freaked out a bit and the price of NIS stock on the Japanese JASDAQ exchange dropped ¥7,000 ($78.42), almost 20%. JASDAQ froze the price, or it might have dropped further. Siliconera posted a list of all recent and upcoming NIS games. Have a look -- we're sure NIS America would really, really appreciate a purchase of Sakura Wars: So Long, My Love or Holy Invasion of Privacy, Badman 2 in the next few months.
Worldwide PC shipments up slightly in 2009 -- is an even more decent 2010 underway?
An IDC Quarterly PC Tracker report released yesterdays found that PC shipments overall for 2009 were up about 2.8 percent over 2008 -- not exactly a game changing stat or anything, but we're sure the manufacturers will take what they can get. The upswing was apparently largely due to the strong fourth quarter (and the positive debut of Windows 7), which made up for the abysmal first quarter, second quarter, and semi-abysmal third quarter. In that last quarter of the year, PC sales showed a 15.2 percent growth over 2008 worldwide, while in the US, sales were up 24 percent over the last year, with 20.7 million units shipped. Another trend noted in the report, is, unsurprisingly, the fact that people continue to purchase cheaper PCs -- mostly in the form of laptops and netbooks. All this means that retailers and manufacturers profit margins are thinning out, but hey, we'll leave the worrying to the economists -- where's that circular for the fifteen dollar netbook?
EA CEO says digital gaming sales will overtake console numbers next year
Need more evidence that physical media is inching towards the door? Enter this Reuters conversation with Electronic Arts CEO John Riccitiello. While the company -- the largest publisher of "interactive entertainment" (AKA video games) -- is hurting on sales during the awesome global recession currently underway, he thinks the future is digital. All digital. Riccitiello had this to say on the matter: "When people think of games, they traditionally think, in the U.S., of what sells on the Xbox, the PlayStation, and the Wii, and they forget about all these online services that are out there... if you add all that stuff up, it's almost half the industry now. It's about 40 to 45 percent. Next year it's likely to be the larger share of the total industry and it'll be bigger than the console games all put together." He went on to say that if EA's digital arm was a standalone company, "it would be like the darling of Wall Street." Of course, he's not just talking about XBLA and the App Store -- this is an all-encompassing view of the digital market, including casual gaming, Facebook apps, and WoW transactions as well. It may not be the kind of all-encompassing push needed, but we are hoping this sort of noise rattles the industry enough to mobilize smarter, more centralized methods of online distribution.
NPD discovers why people braved the Black Friday crowds
NPD, known in the video game world for its US sales charts, has released its first study of the Black Friday phenomenon. "The Anatomy of Black Friday 2009" is based on a survey of 1,700 shoppers about their Black Friday shopping activities. Why, exactly, did shoppers wake up at ridiculous times and stand out in the cold just for the privilege of being crammed into Best Buy or wherever like sardines? For 35% of Black Friday shoppers, it was a specific item. "I saw an item I wanted advertised on sale" was the top response, followed by "I was just curious to see what was out there." The top reason for not subjecting themselves to the crowds and queues to buy anything on Black Friday? No, it wasn't "I'm not crazy," it was "no money."
Man forced by kidnappers to purchase a PlayStation 3
You can tell the recession is dramatically affecting folks all over the United States when stories about kidnappers forcing their detainee to buy them gaming consoles arise. That's exactly what Kyle Yarkosky is alleging that David Daniels and another unnamed suspect did to him, after forcing him at gunpoint into their vehicle, having him steal his stepfather's credit card, and then drive to the local Walmart where they made him buy them a PlayStation 3. Naples News reports that the suspected assailants entered the Pebblebrooke Lakes gated community in a white truck, with Yarkosky following behind on foot, said to be headed to "meet a friend." Instead, the truck allegedly stopped, with Daniels and "an Asian-looking man" exiting and ordering Yarkosky into their vehicle. The two suspects are said to have forced Yarkosky to steal his stepfather's credit card and drive to a local Walmart, where Daniels intended on having a gun purchased. When the gun counter was closed, he then requested Yarkosky purchase a PlayStation 3. According to reports, Daniels then told Yarkosky he was "free to go," thus ending the ordeal. [Thanks Kreyg!]
Dell to shutter US plant, cut 900 jobs, generally mess up someone's holiday
A report just crossing the wires says that Dell is slated to close one of its US manufacturing plants and cut about 900 jobs -- though that's a pittance compared to the approximately 76,500 workers Dell employs. The company's Winston-Salem, North Carolina desktop production facility will shut down come January 2010, though Dell says around 600 employees will hit the road in November -- just in time for the Holidays. The company says the closure is "part of an ongoing initiative to enhance the long-term value it delivers to customers by simplifying operations and improving efficiency," or as we'd put it, "it looks good on the books." Obviously this isn't the happiest news for the employees being cut, but it's also a familiar tune given the economic events of the past year.
R.I.P. i-mate, we barely knew ye
Oh, global economic crisis, when will you stop claiming our favorite companies? Oh, wait, it's just i-mate folding this time? So, the company that already laid off its US staff is totally going away? We can live with that. It seems i-mate's remaining employees in Dubai Internet City were told yesterday that they had to take an unpaid two-month leave. That, apparently, was a typo, as the people were actually supposed to take an indefinite unpaid leave. Oops. The company has already been delisted from stock markets around the world, and this abrupt closing has left a number of retailers hanging as orders for the 810F are apparently still pending. Now they, just like our hopes of a Dirty Dancing sequel, will never be fulfilled.
Case-Mate offers $0.99 iPhone recession case... a day after recession ends
In life, you'll quickly learn that everything is about timing. And thankfully for us Earthlings, Case-Mate seems just 24 hours off with this one. A day after Federal Reserve Chairman Ben Bernanke declared that this so-called recessions was "very likely over," the aforesaid accessory maker has popped out an iPhone case for those of us who vehemently disagree. The aptly titled iPhone recession case is quite possibly the greatest thing since sliced bread the AirMail, and at just $0.99 including shipping, we figure you'll have a tough time finding a better way to protect your cellie. Or waste $0.99, now that we think of it.[Thanks, Andy]
Sony: PS3 price cut not due to 'market conditions,' more social networking features on the way
Though the world economy is crumbling faster than a three-year-old sugar cookie lying on the floor of a jam-packed mosh pit, the recent cheapening of the PS3 shouldn't be attributed to current market conditions. Don't believe us? Perhaps you'll pay heed to the words of SCEE president Andrew House, who explained, "We are aware that consumers are watching their euros and pounds more carefully than before," but later added, "it would not be fair to say [the PS3 price cut] is a reaction to current market conditions." See? We told you.This quote came in the middle of an interview with Financial Times -- an interview in which House would later mention that Sony is planning on implementing additional "social networking features" into the platform. Financial Times' write-up mentions a possible "tie-up with popular sites such as Facebook," but heck -- we'd be content with just being able to, y'know, talk to each other regardless of what games we're playing.[Via Edge Online]
The Daily Grind: Do you play the MMO stock market?
Ahhh, the stock market: The yo-yo that makes people jump for joy or jump off twenty-story buildings. Playing it can be just as exhilarating, frightening, and expensive as a high-octane weekend bender in Free Realms. Well, almost... With the quote-unquote Global Economic Crisis we've been going through, almost all stocks are down from a year ago. Does that mean that now is a good time to invest? It probably depends on whether or not you believe the market has hit the bottom yet.Word on the street is that the video game industry is recession-proof (or not). When you're pinching pennies, MMOs in particular are one of the cheapest forms of entertainment and escapism money can buy. We're not here to offer advice one way or the other, but we are curious -- do you play the MMO stock market? We did a bit of digging and found a number of stocks from companies producing MMOs: Activision Blizzard (ATVI) - World of Warcraft, new secret project Atari (FR:ATA) - Champions Online, Star Trek Online, etc. Electronic Arts (ERTS) - Warhammer Online, Star Wars: The Old Republic, etc. Funcom (NO:FUNCOM) - Age of Conan, The Secret World, etc. NCsoft (OTC:NCSCF) - Guild Wars, Aion, etc. Sony Corporation (SNE) - Free Realms, DC Universe Online, etc. THQ Inc. (THQI) - Dragonica Online, Warhammer 40k, etc. Based on that list, who do you think is the best investment and why?
Nabaztag can't make RFID cool, has to file for bankruptcy
We always knew that any company courageous enough to take a technology designed to help mega-corps monitor their inventory levels and make it mainstream would face an uphill battle, but we never envisioned Nabaztag caving entirely to the pressure. If a snippet in a recent issue of Les Echos (a French financial paper) is to be believed, the creator of the rabbit-inspired Violet RFID Mirror has filed for bankruptcy, giving any company interested in keeping the brand alive until September 4th to toss out a cash infusion. Not like we're looking at you, Mr. VC, but we're definitely hoping to not be sobbing about this in just under a month. Tick, tock.[Voa Loic Le Meur]
Atomic Games unable to secure funding for Six Days in Fallujah, reduces staff
(click to embiggen) Citing a lack of "full-scale funding" for controversial game Six Days in Fallujah, Atomic Games is reporting today that it's trimming staff. According to Atomic, the 75 employees of the studio remained until this week when an undisclosed amount were let go. Though the developer assures the "dozens of Marine veterans" who have spent "hundreds of hours in this project" that it will "fight on," we worry that this is just one more sign of a likely to-be-canceled game. After Konami dropped out as the game's publisher back in April, Six Days in Fallujah's fate has been up in the air. It probably doesn't help that rumors circulated yesterday about the studio's creative lead hitting the road for (presumably) greener pastures. We've reached out to Atomic for further information about those let who were let go and will update this post as we hear more.%Gallery-49389%
Engadget's recession antidote: win a 16GB iPhone 3G from Rapid Repair!
This whole global economic crisis, and its resulting massive loss of jobs got us thinking. We here at Engadget didn't want to stand helplessly by, announcing every new round of misery without giving anything back -- so we decided to take the opportunity to spread a little positivity. We'll be handing out a new gadget every day to lucky readers until we run out of stuff or companies stop sending things. Today we've got a 16GB iPhone 3G on offer, courtesy of Rapid Repair! Read the rules below (no skimming -- we're omniscient and can tell when you've skimmed) and get commenting! Hooray for free stuff! Big thanks to Rapid Repair for providing the gear! The rules: Leave a comment below. Any comment will do, but if you want to share your proposal for "fixing" the world economy, that'd be sweet too. You may only enter this specific giveaway once. If you enter this giveaway more than once you'll be automatically disqualified, etc. (Yes, we have robots that thoroughly check to ensure fairness.) If you enter more than once, only activate one comment. This is pretty self explanatory. Just be careful and you'll be fine. Contest is open to anyone in the 50 States, 18 or older! Sorry, we don't make this rule (we hate excluding anyone), so be mad at our lawyers and contest laws if you have to be mad. Winner will be chosen randomly. Winner will receive one (1) 16GB iPhone 3G. If you are chosen, you will be notified by email. Winners must respond within three days of the end of the contest. If you do not respond within that period, another winner will be chosen. Entries can be submitted until Saturday, August 1, at 11:59PM ET. Good luck! Full rules can be found here.
