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US federal government to close 800 data centers, walk into the cloud
Sure, it's been just a few months since the National Security Agency asked for a $900 million supercomputing complex – you know, to help out with all that internet wiretapping. But concern about deficit spending will mean shuttering 800 other federal data centers in the US, or 40 percent of total government capacity. The closures are part of a larger push toward greater efficiency and consolidation, with an estimated savings of $3 billion a year; moving services to the cloud will mean more savings in licensing fees and infrastructure. Single-digit savings might sound like chump change when you realize the federal information technology budget runs around $80 billion a year, but hey, it's a start, right? [Photo thanks to Adrian Levesque and Adam Koniak.]
Captain's Log: Shop till you drop (out of warp)
Captain's Log, Stardate 64997.8... Hello, computer (and players)! Over the past couple of weeks, there has been much heated debate about microtransactions within MMOs. Whether those microtransactions involve an accessory for your character, additional character slots, or a new mount, players have mixed emotions on spending real money to obtain such items. No matter what your position is on the topic, one thing for certain is that microtransactions are not going to disappear. In fact, they seem to be the future when it comes to how most studios will be delivering exclusive content and items. Star Trek Online is no stranger to such transactions -- the infamous Cryptic Store (C-Store) is full of items priced from just a dollar all the way up to $25. If you are new to the game or have never made a purchase before, at first glance, you may be wondering what you should buy. While some items are simply there as cosmetic enhancements, some will actually help in your battle against your favorite enemy. To help shed some light on your choices, this week's Captain Log is going to explore the top 10 must-have C-Store items that every STO player should not leave spacedock without. Ensign, warp 10! It's time to go on a virtual spending spree...
Men outspend women on mobile social games
Ladies (or gentlemen), is your man a gamer? If so, you may finally have a worthwhile retort for the next time he scoffs and rolls his eyes at that $10 non-combat pet you just had to have. A recent study by MocoSpace surveyed 1,500 "mobile social gamers" about their spending practices within social games. The results? "While 53 percent were male, and 47 percent female, 69 percent of men were buying virtual goods, while only 31 percent of females did." Venturebeat adds: "On top of that, those male gamers are responsible for 90 percent of virtual goods that are purchased inside the games." The article goes on to note the recent practices of selling in-game items for real-world currency in World of Warcraft and EverQuest, though no numbers are available regarding the gender parity of those who purchased such items. For the full article -- which naturally could not resist one not-so-subtle stab at the SOE network outage -- click on over to MSNBC's Technoblog.
NSA wants $896.5 million to build new supercomputing complex
The federal government may be cutting corners left and right, but that hasn't stopped the NSA from requesting nearly $900 million to help beef up its supercomputing capabilities. According to budget documents released by the Department of Defense yesterday, the NSA is looking to construct a massive new High Performance Computing Center in Maryland, designed to harness plenty of supercomputing muscle within an energy efficient framework. As with many other data centers, the NSA's $896.5 million complex would feature raised floors, chilled water systems and advanced alarm mechanisms, but it would also need about 60 megawatts of power -- the same amount that powers Microsoft's gargantuan, 700,000 square-foot data center in Chicago. According to the DoD, however, the NSA would use that juice judiciously, in the hopes of conserving enough water, energy and building materials to obtain LEED Silver certification. Another chunk of the funding, not surprisingly, would go toward fortifying the facility. The NSA is hoping to pour more than $35 million into building security and perimeter control, which would include a cargo inspection facility, advanced surveillance, and systems designed to detect any radiological, nuclear, or chemical threats. If all goes to plan, construction would wrap up by December 2015.
Apple spent nearly $5.7b on Samsung parts in 2010, faces 'strong' response to its patent suit
Want some numerical context to last night's revelation that Apple is suing Samsung Electronics for copying the iPhone and iPad? How does $5.7 billion sound? That's how much Apple spent on buying up parts from Samsung last year, according to the AFP, which cites the Cupertino company as Samsung's second-biggest client after Sony. Given the breadth of Samsung's component manufacturing, these expenditures can and probably do span everything from flash storage and RAM to processing chips to displays. What's fascinating here -- and illustrative of the psychopathic nature of corporations -- is that in spite of this massive interdependency, Apple's lodged a broadly worded patent assault on a major prong of Samsung's business (smartphones and tablets) and now Samsung's been quoted as saying it has "no choice but [to] respond strongly." A company official has apparently expressed the belief that Apple may be infringing on some of Samsung's wireless patents, which means we can probably look forward to another fat batch of papers being submitted to the Northern District of California court. Lovely.
Nielsen: US spending less on games, more on outdoor activities
Bad news, friends: We're losing. That's the only way we can digest the latest Nielsen consumer spending report, in which it was revealed that the US national entertainment budget share for games dropped from 9.3 percent in 2009 to 8.5 percent in 2010. Meanwhile, spending on activities that actually require you to cross the threshold of your home into the horrible, dangerous world (like dining out, going to parks, etc.) increased from 20.4 percent to 25.1 percent year-over-year. Okay, so the raw dollar-amount spent on games hardly changed between the last two years -- but the average American's budget increased in 2010, and none of that new money was handed over the video game industry. Instead, people spent it on outdoor activities. Outdoors! Can you imagine? That's where animals live, you guys. [Image credit: Nielson]
Visualized: Nokia R&D spending, almost 3 times its peers
Our initial reaction to the Bernstein Research chart above is to wonder what value Nokia's massive R&D spending has achieved. Sadly, that's our second and third reaction, too, having spent some time with the company's Symbian OS. Let's just hope all that money was poured into MeeGo or some other megaprofitable ecosystem that it will "build or join" in 2011. Update: Added a snapshot of Nokia's R&D spending from 2007 and 2008 (when the company topped the EU with US$7.24 billion spent on R&D) after the break.
Microsoft to spend one billion dollars advertising Kinect and Windows Phone 7
Microsoft's serious about making Kinect a success. A $500 million kind of serious. That's the latest report, courtesy of the New York Post, on the change Steve Ballmer and company intend to drop to make sure that every living and breathing creature in the US knows about the controller-free controller this holiday season. That mirrors earlier analyst estimates placing the Windows Phone 7 marketing budget at a similar figure, which in total would amount to a cool billion dollars in advertising expenditure. We already know Microsoft's scooped the Old Spice Guy for WP7, but Kinect is getting the extra special carpet bombing treatment with Burger King, Pepsi, YouTube, Nickelodeon, Disney, Glee, Dancing with the Stars, People and InStyle magazines, and even Times Square all having a role to play in spreading the word. Yup, it's gonna be pretty hard to miss it.
Study: America spent $3.8 billion on MMOs in 2009
Massively multiplayer online game players in the States allegedly spent $3.8 billion last year, according to the Today's Gamers MMO Focus Report by Gamesindustry.com and TNS. The report claims that the MMO market in the US has reached 46 million users, with 21 million paying for online games. The rest play without spending a dime (think "freemium"). In a shocking upset victory dripping in sarcasm, World of Warcraft was the most popular MMO with the US, besting NeoPets, Club Penguin, Disney ToonTown and Runescape. Ah freemium, where even the traditional MMO companies can make money. [Via Massively, Gamasutra]
Act surprised: Higher iTunes prices mean slower sales
Warner Music revealed on Tuesday something we've all long suspected: music sales have witnessed a growth slump on iTunes since the record labels pushed Apple to implement a variable or tiered pricing model. As a result, consumers have slowed their spending habits of media on iTunes, making fewer purchases and fewer Miley Cyrus downloads -- I'm ok with that part in fact. The cause of decelerating sales can be attributed the associated price hike in new or premium content, which received an unpopular 30% cost of living increase from $.99 to a more salty $1.29 price point. It turns out that people are reluctant to pay thirty cents more today for something that cost a buck yesterday. What is it with you crazy people and your fickle spending habits? This decline in spending is beginning to eat into Warner's bottom line, where iTunes makes up the majority of its digital revenues. The company saw a 50% decline in revenue in their December quarter, at just 5% growth -- down from 10% in the previous quarter. Ouch! Note to businesses everywhere: This is what happens when you issue a price increase in the middle of a recession. We'll have to see if the record companies take a hint and reconsider their pricing at all.
One-fifth of US game spending goes to MMOs and game portals
It's no secret that MMOs have started to see a larger and larger share of the market, but the actual amount is always a difficult number to pin down. Gamasutra recently reported on a study by TNS and Gamesindustry.com, a pair of market research firms, which found that about 20% of all US game spending goes to either MMOs or online game portals. That's a fifth of all spending in the country, and with the amount of overall spending in the US that's a rather significant figure. Of course, MMOs are still small fry compared to, say, the console budget, which dominates at nearly three-fifths of the overall spending. However, it's worth considering that MMO spending is frequently going to be a $15 monthly subscription rather than a $50 one-time purchase -- a significant disparity in terms of overall budget. It's also interesting to note that MMOs, once a small subset of the overall PC gaming market, are gaining ground as a market demographic unto themselves. The full report can be found here, with further information on the methodology of the study and the preferred payment methods of the respondents.
Survey: Average iPhone user has spent $80 on apps
$80 on apps? I didn't think it was that much, but after going over estimates in my head, that sounds about right, actually. A survey of 1200 App Store customers estimates that we've spent about $80 on applications so far, with an average of about 65 applications per customer. There's a little weirdness in those figures though: they also say that 65% of the apps downloaded were free, and that the average app price was $1.56. There's some extra information hidden in there: if 65% of the apps are $0, and the average price is still up above $1, that means people are spending way more than $1 on the apps that they do buy. More research seems needed there. There's another surprising figure as well: of all the 1200 customers surveyed, altogether they only had about 15,000 unique apps on their iPhones. When you compare that to the latest figures of about 65,000 apps, that means you've got about 50,000 apps (definitely the majority) that are completely untouched by these customers. Of course, 1200 is a tiny sample when you're talking about the millions of iPhones sold overall, but if that is in fact a representative sample, that means that there are many, many more apps than people have actually downloaded and tried in iTunes. Not hard to believe -- with iPhone developer numbers in the hundreds of thousands, tons of trashware on the store, and the relative ease it takes to crank out an app, it's no surprise that you've got way more apps than people interested in trying them. But then again, isn't that the way we want it?
The state of the Azerothian economy
Thermalnoise over on the WoW LJ thought of a great poll, and the results are interesting. He asked readers there what the average amount of gold they had on their characters was, and I thought the amounts were relatively high: between 2,000 and 10,000g for about 40% of those polled. The other big chunk is between 200 and 2,000g (a little under 30% of respondents), which is where I'd expect most of the player base to be, but no: apparently Blizzard's bigger rewards in Wrath of the Lich King (not to mention the higher gold sinks, requiring us to try and raise more gold if we want to fly around or ride a mammoth) have made us richer as a whole.Thermalnoise also asked how much your savings of gold fluctuates, and for most people it apparently stays pretty much the same, or generally increases (probably as they run professions, do quests, or sell off drops and pay repairs). I'd imagine Blizzard is keeping a pretty close eye on just how our gold moves around, and that "steadily increase" is what they'd want all of our money to do, just to keep the game's economy moving around.In fact, though I'm probably repeating myself here, it'd be nice to have them give us some insight on just what's happening with the ingame economy. We've gotten a few hints at what sells and doesn't on the realms, but it would be interesting to see some official numbers about the average amount of money that players have and keep at the various levels of the game. and exactly where it all goes when we spend it.
DirecTV puts away the checkbook, plans to raise rates in 2009
DirecTV already broke our hearts once this week, and it's doing its darnedest to shatter the blood pumper once more. The satcaster, while doing fairly well with all things considered, is still looking to reel in spending and watch profits carefully in 2009. Reportedly, the outfit has decided to freeze hiring and suspend any spending on all "but the most critical capital projects." Clearly, the ill-fated HDPC-20 tuner didn't fall into that "most critical" bucket. Moreover, it's looking to ramp up promotions and raise rates as it barrels into the new year, and even though folks are spending less overall, it still "remains bullish" about the year to come. Verizon, AT&T, et al. -- it's time to mobilize and capitalize.[Image courtesy of CipherLTD]
Editor ponders: Do you need a Blu-ray player?
Right, so the obvious answer here is: "No, you don't need a Blu-ray player." But, you know -- do you need a Blu-ray player? At its core, the latest argument put forth by an Orlando Sentinel editor is yet another debate over the viability of the format in comparison to upscaled DVD and in the wake of surging support for HD streaming, but there are certainly a lot of points made that we vehemently disagree with. According to the editor, the "difference between DVD and Blu-ray is nowhere near as striking [as VHS and DVD], despite what the consumer electronics retailers and manufacturers might tell you." He goes on to assert that a BD player simply isn't worth purchasing if you've already got a stout DVD library, particularly if you own an upconverting DVD player. Ruining any shot at anyone taking his view seriously were the remarks by his colleague, who watched Planet of the Apes on a BD deck and a $40 DVD player; according to him: "The features are fancier, but the picture? No improvement. Investing in a [Blu-ray] player... is a needless expense. Downloads are the future, not discs in a cute blue box." Let the firefight begin.[Thanks, Anthony]
Breakfast Topic: How are you spending PvP points?
While we know that Honor is not going to be reset as we once thought it would be, we do know that all your Arena points will be reset once you reach 71. But for now, both Arena and Honor points are still available to us if we put in some effort, and some rewards are still purchasable with them. The question is, how much time should we invest in them now, and are these rewards worth the time? You can save Honor points, of course, until you reach level 80, even though everything at that stage will be much more expensive, and you won't be able to buy as much with what you earn today. Is this inflation enough to make you just wait till later to PvP in battlegrounds? Or do you want to hit 80 with us many points stored up as possible? Do any of the current PvP rewards look attractive enough for you to purchase them now instead of waiting?The Arena is a somewhat simpler proposition. Any points you have will be gone as you start leveling up again, so you have to spend them now. Are they still worth earning? If so, will you spend them on gear? Or will you buy the special PvP gems in order to put them in gear you get later on?
Survey: Apple riding high on news of economic woes
A survey by ChangeWave says Apple is looking ahead to record sales for Macs, which smiles in the face of further declines in U.S. consumer spending. The survey polled 4,416 people between August 4 and August 12. If the poll is any indication, Apple will do well in the next three months, with 34 percent of respondents planning on buying a new Mac laptop, and 30 percent planning on buying a new Mac desktop. It's unclear how many of those overlap (that is, people who want to buy both). That's a modest uptick since last month -- two percent more for laptops and three percent more for desktops. Compare that to general consumer electronics spending: 15 percent said they'd spend more over the next three months, while 34 percent said they'd spend less. That's almost unchanged since last month, but 13 points lower since August last year. Also in the survey, 17 percent of the respondents (who own an iPhone 3G) are now more likely to buy a Mac in the future; one percent said they were less likely. [Via MacsimumNews.]
Home video spending still strong, $194 million spent on Blu-ray in 2008
Slumping economy? Recession? Poppycock. Based on sales of home media, America's financial engine is humming along just fine, with consumers plunking down 1.6% more on DVD / Blu-ray purchases and rentals combined than they did in the first half of 2007. Granted, some may suggest that home entertainment is seeing an increase as more lavish alternatives (going out for a movie, taking a vacation, etc.) are utilized less frequently, but whatever the case, this sector is sure benefiting. Focusing on HDM, we're hearing that $194 million has been spent on Blu-ray Disc thus far in 2008, which is up some 350% from $43 million in 1H 2007. Amazing what a format war conclusion will do for numbers, huh?[Image courtesy of Syracuse, thanks Joel]
Addon Spotlight: AuditorFu
It's Friday, which means that it's payday for some of you. With that in mind, why don't we take a look at an addon that helps you stay on top of your virtual finances. For those of us who are not only information junkies, but also control freaks, this addon is a great way to maintain sovereignty over how your gold comes and goes. AuditorFu, contrary to what the name implies, will function with or without the Fubar addon. However, I find it best suited as a center-aligned, top-bar, Fubar mod, as it allows me to see the important stuff at center stage. (Alongside AuldLangSyne) There's nothing worse than having an inflated view of your gold total and quickly realizing the mats for your Red Belt of Battle are out of reach.The good news is that this addon can help you be more diligent if you're saving for a crafted epic or your Artisan Riding skill. Every copper counts, my friends.
Breakfast Topic: A waste of money
Aysel is a little ashamed about spending 1000g on a title, though she shouldn't be -- "of the Shattered Sun" is as honorable a title as any other, and if you've got the money to get it, more power to you (though her suggestion that her guildies call her AOTSS is pretty funny).But I like her other question better: what's the dumbest thing you've ever spent a bunch of ingame gold on? My waste of money is probably more of a mistake than an actual embarrassment -- I remember spending a good 100g to outfit my level 40 Mage in the shiniest stuff I could find on the AH, including a couple of world drops and the whole shabang. I had in mind that I was going to take her all the way to 70 -- and then I think I never played her again. What a waste.I'm sure you all have better stories, though -- ever accidentally dropped a lot of cash on something you couldn't actually use, or splurge on an item that was a little silly, just so you could have it? What's the most money you've ever wasted on anything in the game, and what did you buy?
