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Xbox COO sees dedicated handheld market as a 'red ocean,' will let Sony and Nintendo swim in it
Dennis Durkin is COO and CFO for Microsoft's Interactive Entertainment Business. He's also a dude thoroughly disillusioned with the future of portable consoles. Speaking to IndustryGamers, Durkin explains that the "crowded" nature of the mobile gaming market right now makes it extremely difficult to launch a dedicated handheld gaming device successfully -- in his colorful words, it's "a very, very red ocean." Whose blood is soiling those waters? The Nintendo 3DS, says Durkin, which has sold reasonably well, but has clearly failed to reach the lofty expectations set for it by fans and previous handhelds from the company. Likewise, the PS Vita invites a lot of skepticism from the Xbox chief, who says his excitement is reserved for what Microsoft can do with Kinect, Xbox Live and unique content. You might say it's to be expected that an Xbox exec would be casting doubt over Sony's great new hope, but what we learn in the process is that Microsoft has no intentions of squaring up to its home console nemesis on the mobile front. Not with dedicated hardware, anyway.
AMD collects half a billion in Q1 profit, Fusion APUs now account for half of its laptop shipments
AMD's net income for the past quarter was $510 million, generated from $1.61 billion in total revenues. That should make happy reading for a company that's been raising similar gross revenues previously but finding itself losing cash -- though the more intriguing figures are a little deeper in its latest disclosure. CFO and interim CEO Thomas Seifert has noted that AMD "tripled" its Fusion APU shipments relative to last quarter -- meaning that at least 3.9 million units have made their way out to OEM partners in Q1 -- which now account for "roughly half" of the company's notebook shipments. In less upbeat news, average selling prices in both the microprocessor and graphics divisions were down sequentially, with AMD having to react to pressure from its traditional foes Intel and NVIDIA. You might surmise that with the mainstream Llano APU out and shipping to computer makers, AMD might have a happier second quarter, but the company's guidance is for revenues to be flat or slightly down. A final note of pride is reserved for the Radeon HD 6490M and HD 6750M GPUs, which figured prominently in Apple's latest MacBook Pro refresh and mark a bit of a coup for AMD, who's now responsible for all of Apple's discrete graphics across the MacBook Pro and iMac computing lines. Click the links below for even more intel on Advanced Micro Devices.
AMD ships 1.3 million Fusion APUs, 35 million DirectX 11 GPUs, says it has 'momentum'
Hey, this interim CEO thing doesn't seem to be too hard at all. Thomas Seifert, the temporary solution to the problem created by Dirk Meyer's departure from AMD's top spot, has had a pretty comfy ride reporting the company's latest quarterly results. The pecuniary numbers themselves ($1.65b revenue, $375m net income) were tame and unexciting, but Seifert got to make a pair of juicy milestone announcements. Firstly, on the mobile and ever-so-efficient front, he noted that 1.3 million Fusion APUs (Accelerated Processing Units) have been shipped to partners since AMD started deliveries in November, and secondly, in terms of discrete graphics chips, he disclosed that the Radeon HD 5000 and HD 6000 series DirectX 11 GPUs have surpassed the 35 million units shipped mark. To give you some perspective on what that means, sales of Nintendo's bestselling Wii console are hovering somewhere around the same figure. So yes, AMD, your wagon has momentum, but shouldn't it have a driver too?
EA puts faith in The Old Republic's lifespan and profits
With all the cries of doom and gloom against Star Wars: The Old Republic -- not to mention accusations of a wildly bloated production budget -- one may be led to believe that TOR will fail even before it sees the light of day. EA, on the other hand, is expressing a calm confidence in the game's potential longevity and financial success. According to Eurogamer, EA's CFO Eric Brown predicts that TOR will not only last over a decade, but will be profitable even if there are fewer than a million subscribers: "Our assumptions for break-even and profitability are not seven-digit subscribers. We think we can run and operate a very successful and profitable MMO at different levels. The key thing here is to really perfect the product. We're shooting for an extremely high quality game experience. We view this as a 10-year opportunity." Brown previously admitted that TOR is the single largest project in the history of EA, and industry analysts have predicted that the title would need at least a million subscribers to break even.
Majesco's CFO gets out of the kitchen
Financially troubled publisher Majesco recently announced the resignation of its chief financial officer, John Gross, who will be replaced by an interim executive when he leaves August 20. For what are likely his final official remarks at Majesco, Gross leaves with these words: "We have worked as a management team to put an operating plan in place to continue to improve the performance of the company and grow profitability. I wish the company and the management team all the best in the future." IndustryGamers notes the company lost another $1.6 million in its second fiscal quarter. Also, with a little under a month to go, the company is coming dangerously close to hitting its Nasdaq stock exchange delisting deadline. Come on, Majesco, have Cooking Mama bake up some compliance again.
GameStop appoints new CEO, promotes several executives
Gamestop seems to have decided that all of its executives needed promotions. Former CEO Dan DeMatteo (last seen talking up EA Online Pass) is now "Executive Chairman" of the company, with J. Paul Raines (formerly COO) now stepping up to the CEO position. Executive Vice President Tony Bartel will now occupy the new position of "President," with Robert Lloyd (formerly Senior Vice President and Acting Interim CFO) as CFO. Michael K. Mauler is now EVP, GameStop International. It's like musical chairs, but there's a chair for everyone playing, and it's much softer than the one you're sitting in. DeMatteo suggested that the moves would help GameStop's goals of "expansion into new markets and continued focus on strategic initiatives such as our new loyalty program, downloadable content (DLC) marketing and sales, and the evolution of GameStop.com into a robust digital platform." Which, if all goes correctly, will bring in enough revenue to allow GameStop to create some more executive jobs. [Via IndustryGamers]
Sprint CFO: 'Pre didn't work out as well as we hoped'
The worst of Palm's fears may be over now that HP has played the knight-in-shining-armor role, but Sprint -- the States' number three carrier -- still has a ways to go before it can claim it's out of the woods, having gone a solid string of fiscal quarters now without posting a profit or a net gain in subscribers. Of course, this is the kind of situation that puts dudes with the word "financial" in their titles on the hot seat, and sure enough, Sprint CFO Robert Brust came out swinging at an investor conference this week. Brust points to narrowing losses and an expanding prepaid presence as reasons he thinks the company can grow revenue by year-end, not to mention an expanding 4G footprint and -- on a closely related note -- the imminent release of the EVO 4G. Showing a bit of humility, he also said that the company has "learned a lot" since the launch of the Pre, acknowledging that the phone "didn't work out as well as [they] hoped." In other words: we wouldn't expect any more crazy two-phone exclusive deals with Palm lasting the better part of a year any time soon.
Activision exec Thomas Tippl speaks out on current Infinity Ward conditions
Ever since the private relationship between the ex-Infinity Ward heads and Activision management broke down and became a publicly debated matter (through two lawsuits), the state of affairs at IW have been up in the air. Various reports from "sources close to the studio" have arisen at Kotaku, with one alleged insider calling the studio "dead" and another giving a far less grim report. Activision execs, however, have been fairly quiet on the situation -- that is, until now: Chief Operating and Financial Officer Thomas Tippl spoke with the LA Times Company Town blog this week, saying that the development house "still has nearly 100 people," he claims. "They've built a deep bench, and the change of guard will provide an opportunity for some of the rising stars to put their own stamp on the Call of Duty franchise." Further, he refutes charges that his company has been anything other than good to its studios. "We treat our developers extremely well," Tippl stated. He contineud that Activision's "independent studio model" allows developers "a lot of creative freedom while we take care of the back office stuff." Whatever the internal issues are, he reconfirmed that three separate internal studios are currently hard at work on Call of Duty titles.
Palm's SVP of software and services takes off, others given cash, stock to stick around (updated)
No one really knows exactly what's going on inside the walls of Palm HQ this week -- whether the company will sink or swim is perhaps a bigger question right now than it has been since its rebirth last year, and if it does swim, whether it remains independent is another matter altogether. In an SEC filing today, Palm quietly revealed that its senior VP of software and services -- Michael Abbott (pictured above), a man who has been largely responsible for webOS as a platform and the critical Mojo and Ares SDKs -- will be gone as of April 23. More interestingly, though, it had to hook up a couple other key players with stock packages and $250,000 in cold, hard cash to get them to agree to stick around for a couple years: Jeff Devine, SVP of global operations, and Doug Jeffries, the CFO. Yes, that's right -- Palm's chief financial officer may have damn near split in the past few days, which is never a good sign for a company whose financial stability is in question. More on this situation as it develops. [Thanks, Herman] Update: Since our original report, a number of SEC Form 4s have crossed the wire, indicating that Palm is handing out various quantities of shares to pretty much everyone on the executive roster. Acquisitions frequently involve retention deals for key company players to make sure that the buyer's new assets aren't instantly brain-drained, so it's entirely possible that this is all a harbinger of an impending deal.
Activision CFO Thomas Tippl now COO
Acitvision chief financial officer Thomas Tippl was recently promoted to the position of chief operating officer at the publisher, and will serve double duty as temporary acting CFO while a replacement is found. A filing with the Securities and Exchange Commission from last week detailed the executive swap (titled the "Tippl Amendment," effective as of March 23), including an $885k annual salary, stock options, an annual raise "at least equal to the average [undisclosed] percentage increase" (pending approval by the board), and a yearly performance-based bonus of "120 percent of his base salary [$1,062,000]." The wonderfully candid thing about SEC filings is that there's little room for spin or marketing, but the downside is all the financial jargon -- like the fact that part of Tippl's new contract entitles him to a grant of 225,000 "performance shares" that "vest ratably." This means we're put in a position where we're telling you about stuff that is at the least pretty confusing and likely kind of meaningless. So let's break it down! "Performance shares" are, according to Investopedia, "shares of company stock given to managers only if certain company wide performance criteria are met, such as earnings per share targets." Meaning, in so many words, that Activision has to meet a certain performance level in order for Tippl to earn said shares. That they will "vest ratably" is only to say that on Feb. 15 of each year for the next four years, he will earn part of that eventual 225,000-share goal (in 2014) ... should he stay in his position for all that time, of course. And finally, this is all based on the prediction that he delivers a higher or equal to non-GAAP earning per share when compared to the previous year. In short, he has to either break even or make money to get the stocks, and he has to maintain that for the next four years. Quite a tall order, sir! [Via Edge]
Microsoft CFO says 'we'll have much more to say' about WinMo 7 in February
Every indication we've had out of Microsoft is that Windows Mobile 7 is on track for a grand unveiling at Mobile World Congress in Barcelona next month, and indeed, Fox Business has none other than CFO Peter Klein on record saying as much -- the closest thing we've had to a confirmation outside of Robbie Bach's analyst remarks a few weeks back. At the 4:07 mark of the video, Klein says that the company is "heads down" on WinMo 7 and expects to have "much more to say" about the product out in Spain, which would mark the one-year anniversary since the announcement of 6.5 at the same venue. Considering the brutal response that last version endured over the better part of 2009, let's hope they're coming to the table with something much, much more delicious this time around.
GM woos CFO Chris Liddell away from Microsoft
As you may or may not have heard, Microsoft CFO Chris Liddell announced that he was leaving the company late last month, but neither he nor Microsoft was doing much talking at the time about what he would be doing next -- other than that he would be "looking at a number of opportunities that will expand his career beyond being a CFO." Well, it looks like he will still be a CFO after all -- this time at General Motors. That move was just made official today, and follows news earlier this month that GM's current CFO, Ray Young, would be transferring to China. As you might expect given the executive situation at GM, however, there's plenty of speculation that this hire might be more than what it seems, and folks already talking that Liddell may actually be being groomed to take over as CEO of the company once he gets a bit more experience in the automotive industry.
Atari CEO David Gardner steps down, Jeff Lapin steps up
Atari's ongoing corporate shuffle is still, well, going on. The company formerly known as Infogrames has just named a new CEO. Current COO Jeff Lapin is to replace David Gardner as CEO and has executive experience with Take-Two and THQ, as well. It's unknown whether the move is Gardner's decision or Atari's, but he will stay with the company as a "director." Lapin doesn't appear to be getting a raise with this new position, but don't weep for him too much: his current compensation package includes "an annual fixed gross compensation of €400,000 [or nearly $585,000] and an annual variable compensation, subject to the achievement of performance criteria, up to €200,000," as well as 900,000 stock options. "We will launch our second MMO game - Star Trek Online -- in February 2010," Lapin said in the announcement. "I am excited to take on these new responsibilities at this important time and look forward to developing Atari's strategy to bring the company back to profitability." [Via IndustryGamers]
Activision pursuing 'online monetization models' for Call of Duty franchise
For quite some time now, Activision execs have been hinting at the idea of MMO monetization being implemented in games other than Blizzard's behemoth World of Warcraft. Speaking at the BMO Capital Markets Conference this past week, another Activision exec – CFO Thomas Tippl – was tasked with the question of whether or not WoW's "successful online business model" (read: monthly subscription fees) would end up in other Activision properties. "It's definitely an aspiration that we see potential in, particularly as we look at different business models to monetize the online gameplay," Tippl says, according to an IGN report. "I think it's been mutually beneficial, and you should expect us to test and ultimately launch additional online monetization models of some of some of our biggest franchises like Call of Duty." He also notes that "there is demand from the core gamers to pay up for that," which likely means that many of you who got Activision's survey back in June supported this. Shame on you. [Via CVG]
Nokia plays musical execs, moves CFO to new Mobile Phones post
There's nothing quite like a dismal quarterly report to shake things up, and that's exactly what Nokia's doing after losing over $800 million in its most recent three-month period. CFO Rick Simonson is being whisked over to a new post as head of the Mobile Phones group -- concentrating on Series 30 and Series 40 handsets -- within the Devices division, while Timo Ihamuotila, who currently leads up global sales, will take over for the CFO position being vacated by Simonson. For what it's worth, the move doesn't seem like a demotion for Simonson; he'll be in charge of "strategic sourcing" for the entire Devices division and still sit on the executive board, so we're sure he'll be doing alright for himself. All things considered, there's no way of knowing whether this would've all gone down without the quarterly performance, but it makes you wonder, doesn't it?
Turbine arrives at E3 with brand new CFO
MMO maker Turbine started off E3 not with a new game announcement, but a new staff member. They've hired on M. Beau Paradowski, who's worked in the past for Clearwire Technologies and Optasite, as their brand new Chief Financial Officer. As CFO, he'll be in charge of both overseeing worldwide financial operations as well as scouting ahead for any hidden orc raider camps.Massively has more, and says that Turbine will depend on Paradowski's financial knowledge to help guide their three big MMO titles, Lord of the Rings Online, Dungeons and Dragons Online, and Asheron's Call. Paradowski says in a press release that, "I'm thrilled to join and help this talented team take Turbine to the next level." And by "next level," we assume he means one floor deeper into the dreaded Mines of Moria. You need as many executives as you can get down there.
Turbine appoints new chief financial officer
Let's take a break from all of the E3 crazy for a moment and bring it back down to Earth, as Turbine has announced today that they're putting a new man into the chief financial officer's seat. Their choice for the position has been M. Beau Paradowski, an experienced 17 year financial veteran who has previously held the CFO chair for Optasite Inc. and Clearwire Technologies. Paradowski is excited to step into his new position at Turbine, which will oversee all of the company's global financial operations and everything related to Turbine's three big IPs -- Lord of the Rings Online, Dungeons and Dragons Online, and Asheron's Call.
Netflix CFO talks Watch Now selection, competition
The initial reaction to Netflix's Watch Now feature is "wow this is great," but when the reality of the selection kicks in, the appeal fades away. Obviously this isn't news to Netflix and according to the CFO Barry McCarthy it isn't a question of new vs old, but one of good vs bad. That sounds great and all, but the reality is that no matter how bad a movie is, people want to see new movies. Evidently the problem is that access to new movies via a subscription model is already spoken for by cable operators. He goes on further to explain that the cost of winning these contracts away are dependent on Netflix's ability to grow the subscriber base. Now if you're thinking, why not offer the movies via PPV? According to Barry, only the subscription model makes economical sense to Netflix as ad-supported services such as Hulu generate "scant incremental revenue." He even gets a little feisty when he says the "big question" is what are Apple and Amazon going to do when they realize the PPV model they are chasing now is not successful?
NCsoft West gets a new CEO
There's been another shift in the staffing over at NCsoft West. This time, former CEO Chris Chung will be moving aside to let Jaeho Lee take his place. Lee was the chief financial officer of NCsoft, and his appointment at NC West was made with the intention of improving the subsidiary's communication with home base in Korea. NCsoft's corporate PR director Jae Sung Lee gave a comment to Kotaku regarding the move:"As part of the corporation's global strategy, global management grows increasingly important, and the need to work together across business units becomes paramount to our success. This personnel change increases our ability in each market to remain competitive."Chris Chung hasn't been turfed out on to the front doorstep as a result of the move and will remain where he is at NCsoft West, albeit with a lesser job title.
Former Motorola CFO alleges that company lied about financial data, Santa Claus
There have been no shortage of legal wranglings in the electronics space lately, usually between two well-entrenched corporations, but this one's a little more interesting: a former officer taking the offensive against his former office. Paul Liska, previous head of all things financial at Motorola, is alleging that the company has been misleading investors for quite some time regarding the performance of its Mobile Devices unit, and that when he raised his concerns to the board he was given an escorted trip out the building for his troubles. Moto, on the other hand, is saying that the company's current financial mess is all thanks to a scheme concocted by Liska himself, who then attempted to blackmail the company before trying to paint himself as a whistleblower. That's an awful lot of intrigue, but given the thrilling, cut-throat world of chartered accountancy (as depicted in Monty Python's documentary The Meaning of Life), truly anything can happen. [Via Phone Arena]
