financial
Latest
EVE Online's largest player-run bank freezes accounts due to massive deficit
Stick with us, because this could get confusing: EVE Online has a long and storied history of in-game corruption, chock-full of enough political and social drama to make Ron Moore's head spin. The latest -- and actually, ongoing since June -- problem comes in the form of financial woes. On August 26, EBANK -- EVE Online's largest player-run financial entity -- revealed it currently has a (roughly) 1.2 trillion InterStellar Kredits (ISK) deficit and would freeze all player and organization accounts that were investing with the bank. As with other MMOs, EVE Online's economy is completely player-driven. Users can adopt various play styles which affect the world's economic machine, allowing players to create and topple empires within the fictional world of New Eden. Where EVE Online differs is how users have expanded the tools given to them by developer CCP Games. Using the game's developer-provided API to create tools that can monitor various pieces of data, players have developed their own financial organizations, complete with standards and rules, like real world banks. Sadly, EVE Online's largest player-operated bank mimicked real world financial institutions too closely.
Activision-Blizzard and their financial future
Barron's has a long article up about Blizzard's corporate overlords at Activision-Blizzard, and as is usual with most pieces of Activision news, people will probably see in it what they want to see. Those who think Bobby Kotick is just a money-grubbing exploiter will find more fuel for their firey fanboy rage: apparently he's a follower of Las Vegas casino entrepreneur Steve Wynn, and is modeling some of Activision-Blizzard's business plan off of that guy, Shareholders, however, will probably be thrilled. In terms of a purely financial sense, Activision-Blizzard is apparently one of the shinest futures around, with Kotick bragging that videogames will eclipse film and TV in terms of moneymaking in just a few years.From our perspective, as longtime fans and players of Blizzard's games, the most interesting thing I see here is that Barron's makes no distinction at all between Activision and Blizzard any more -- the Activision-Blizzard company, according to the article, is equally responsible for both the Starcraft and Transformers franchises. Obviously, as gamers, we see a huge distinction between those two: one is a classic, storied, much-loved videogame series, and the other is a cash-in on a license that's panned everywhere but the box office. But for the financial guys, they're just both properties of Activision-Blizzard. That's not to say that our Blizzard is entirely lost (anyone who was at BlizzCon last week knows that's not true), but it is a sign that the merger is no longer news. From an outsider perspective, Guitar Hero and World of Warcraft are just two cash cows from the same company.
Konami game revenue dips during fiscal Q1, Snake nowhere to be found
Snake?! Snake?! SNAAAAAAAKE?! news now with Konami's financial results for its first quarter (which ended June 30, 2009) showing a notable decrease in revenue, both company-wide and within the video game sector. Edge reports that overall revenues sank 21 percent to $535 million, while sales accrued from video games dropped 50 percent to $103 million. A 45.1 percent slide in net revenues within the digital sector to $258.6 million was attributed to the gradual sales withdrawal of 2008's lucrative PlayStation 3 exclusive, Metal Gear Solid 4: Guns of the Patriots, as well as "changes in the economic environment."Konami reportedly sold 2.96 million video games during the quarter, the majority of which were not Metal Gear Solid 4 and 860,000 of which were soccer games. The publisher plans to have a stronger showing during the second half of 2009, thanks to titles like Silent Hill: Shattered Memories, the latest iteration of Pro Evolution Soccer and, of course, DDR Ultra Awesome Kick Mix 2010 EX Gyration Splendour Special (not an actual title). The future will arguably prove to be even more fortuitous, what with the bold decision to release a Metal Gear Solid game on more than one platform. [Image: Mega 64]
Sega reports $150 million dip in sales for Q1 2010
Sega Sammy Holdings, Inc. has released its Q1 2010 financial earnings report, which covers the period from April 1, 2009 through June 30, 2009. The document shows that the company saw a ¥14.139 billion ($150 million) decline in sales over Q1 2009. Specifically, Sega reported first-quarter sales of ¥60.461 billion ($639M) as opposed to ¥74.6 billion ($789M) for the same period in FY 2009. The publisher's figures show that, in addition to changes in its pachislot business, a smaller number of home console releases contributed to the decline. Sega released 37 titles across all platforms during Q1 2009, but only 17 for Q1 2010. Still, it projects total software sales to be up ¥230 million ($2.4M) for FY 2010.
Sprint loses $384m, 257k subscribers in first quarter of Pre availability
The Pre might have slowed the drain at Sprint but it hasn't managed to turn things around completely -- America's number three carrier posted a second-quarter loss of $384m as it lost another 257,000 subscribers. That just continues Sprint's trend of bleeding customers to the competition, and we doubt this balance sheet will turn around anytime soon -- not only will next quarter reflect the $483m purchase of Virgin Mobile USA, it's pretty clear that Verizon will get the Pre and AT&T will carry another webOS handset, leaving Mr. Hesse and crew without their shiny halo device to lure new subs to the fold. We'll see what Sprint does to turn this all around -- did someone say they need a Hero?
Microsoft sees first annual sales decline in its history for fiscal 2009
Microsoft's fiscal year 2009 just came to a close, and the new milestones for the company aren't too boast worthy. Year-over-year, the company saw a 3.2 percent decline in sales, its first drop in the company's history -- guess that third quarter report was a pretty good indication of things to come. Net profit, too, fell 17 percent to $14.57 billion. Looking at just the fourth quarter, sales fell 17 percent to $13.1 billion, and profits saw a pretty massive 29 percent drop, to $3.05 billion. Attributing to the decline were legal charges and severance claims from laid off employees, a referral of revenue from the Windows 7 Upgrade program, and of course overall drop in PC and server sales across the industry. So far the stock market has acted as you'd expect, and shares have dropped a notable eight percent. Despite all this gloom, let's not forget that the boys in Redmond are still pulling a profit -- and hey, cheer up Steve, you've got one helluva bright light for fiscal 2010.
Apple Q3'09 results: breaking records, not taking names
In yesterday's earnings announcement and subsequent analysts' call, Apple reported another record-breaking quarter; the company posted its "best non-holiday quarter [in terms of] revenue and earnings." This is pretty impressive given, as Engadget points out, what some consider the "worst recession since the Great Depression." Specifically, Apple's books (not that kind) are reporting revenues of $8.34 billion with a take-away profit of $1.3 billion; the bump from the year-ago quarter in earnings per diluted share takes us from $1.19/share in Q3'08 to $1.35 in Q3'09. In the midst of these impressive numbers, Apple's CFO Peter Oppenheimer is optimistic. Apple is expecting revenue in the range of $8.7 billion to $8.9 billion for the current quarter, forecasting an increase in Mac sales as we enter the back-to-school shopping season. This is a safe bet, given Apple's "best ever" line of current MacBooks. For Q3'09 Apple sold 2.6 million Macs -- 1.75M of them were laptops, per Macworld -- representing a 4% increase in units sold over the year-ago quarter. The laptop rush continues to swing the balance of Apple's CPU sales towards the MacBook Pro line; laptop units sold jumped 13% year over year, while desktop sales dropped almost 100K units (849K vs. 943K) against Q3'09. Ignoring the subscription-based accounting methodologies for both iPhone and Apple TV, Apple's non-GAAP revenue was a staggering $9.74 billion with net income of $1.94 billion. In order to allow for future free updates to the products, Apple uses subscription based accounting for iPhone and Apple TV; revenue from iPod touch & iPod, Macs, software and accessories is fully recognized when the products are sold. This approach "parcels out income from iPhone and Apple TV sales over a 24-month period." Apple also sold 10.2 million iPods and 5.2 million iPhones, representing a 7% decline and 626% increase over the year-ago quarter. This fact is significant because the decrease in iPod sales indicates that the iPhone is now cannibalizing its older siblings in the "traditional" (shuffle, nano, and classic) family of iPods. Apple is also quick to point out that the entire market for traditional MP3 players is declining. While the increase in iPhone sales does seem quite impressive, it is worth noting that the iPhone is available in many more countries than it was a year ago (although the 3GS is only in 18 of the 80 markets so far). I would be interested in knowing if iPhone sales increased domestically or if these numbers are completely driven by international success. Another interesting metric will be to compare iPhone sales this quarter to sales in Q3'10. With a similar sampling of countries the numbers should make for a better comparison. Although, I will go ahead and jump the rumor-gun and say I think that next year's iPhone is going to be a bigger improvement vs. the current model, as compared to the 3GS vs. the 3G; for this reason iPhone sales will continue to increase. Again the question of netbooks was presented and again Apple suggests that the netbook is currently a sub-standard computing platform with a poor user experience. If we consider that Apple had at one time said they were not doing a video iPod, then it is pretty likely that an Apple netbook is in our future. Apple's third-quarter results are very strong and the stock is up substantially in early trading today. This should be great news for anyone holding any AAPL in their portfolio especially given the close for Q2'09 was a mere $121.51. I think Apple is doing a great job and as an investor myself, I am pleased with the results -- as is the rest of Wall Street.
TUAW Liveblog: Apple FY09 Q3 earnings report
Apple's earnings report came out just a few minutes ago, and the conference call is coming right up! Join us for the liveblog below as we follow along through the conference call. <a href="http://www.coveritlive.com/mobile.php?option=com_mobile&task=viewaltcast&altcast_code=b9c0a1d11e" >Apple FY09 Q3 Earnings Call</a>
Join TUAW at 5 PM EDT for the Apple 3rd quarter earnings call
There's nothing quite as fun as an Apple earnings call! Along with a lot of financial gobbledygook, disclaimers, and carefully-phrased "forward-looking statements", there are also pointed questions from top financial analysts. On occasion, Apple may even bring forth Steve Jobs to enliven the call.Today is the day for Apple's 3rd quarter 2009 earnings call. Our very own Mike Rose will be leading the team on a liveblog of the event before rushing off to a Wednesday appearance on Fox Business News, where he holds the title of "The Unofficial Apple Analyst." You can also listen in on the festivities, as Apple will be streaming audio of the event.The liveblog via CoverItLive will begin here on TUAW at approximately 5 PM EDT, so be sure to join us for the call.
Apple set to release third quarter 2009 earnings report on Tuesday
It's been a nice year for Apple so far. Stock prices have been steadily rising since January, outpacing a middling technology market. Apple is poised to reach a stock price it hasn't seen since August, 2008. And this particular quarter has seen a lot of Apple news and activity: the new iPhone 3GS was released this quarter with an associated 1 million device sales in the first weekend alone, the MacBook line received a refresh and a price cut, and Apple reported that application downloads on iTunes reached the 1.5 billion mark. Plus, let's not forget that Steve-O (ostensibly) returned to work in June.Apple appears to have weathered the Palm Pre assault with considerable fortitude, and the iPhone in all its iterations now commands more than 10% of the smartphone market. So what are experts predicting for Apple tomorrow? For starters, above-average revenue. Among well-regarded Wall Street analysts (take that for what it's worth) the top estimate is by Mark Moskovitz of J.P. Morgan, predicting 8.49B in revenue, with earnings per share (EPS) of $1.23. Lowest is Gene Munster of Piper Jaffray, who is predicting "only" 8B in revenue. But all revenue estimates are above the guidance numbers released by Apple itself, which put revenue at 7.9B. The Thomson Financial consensus (an average of all predicted reports) puts revenue at 8.18B. Everybody is in agreement that Apple's gross margins, which were 36.4% last quarter, are the envy of the market. Trading is brisk today, and stock prices are rising in expectation of tomorrow's positive announcement. Apple's announcement will occur at 5pm EST Tuesday. Check back for TUAW's report. It will be very interesting to see how well Apple does.
Nokia cuts market share targets as Q2 profits plummet
Ok Nokia, this is getting serious. The world's largest cellphone maker just announced a 66 percent yearly drop in Q2 profit while lowering its 2009 market share target for its cellphones. Originally, Nokia had expected market share to rise in 2009, presumably based on a successful launch of the N97 flagship device. However, outside of a core group of S60 diehards, the N97 has been universally panned in both reviews and user forums alike. And with nothing but rumors of an Atom-based Nokia netbook on the immediate horizon, well, let's just say that we're suddenly concerned about the health of our friends from Espoo.
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.
Sony posts $1b loss, first in 14 years
Here's the good news: Sony's ¥98.9b ($1.03b) loss is slightly less than the $1.1b the company told us it would lose in January. Sadly, all of the other news is bad, starting with the fact that the company just lost a freaking billion dollars, its first loss in 14 years, and it's predicting a similar $1.1b loss next year. Electronics sales were down 17 percent, the Sony-Ericsson phone partnership is struggling, and game division sales dropped 18 percent primarily due to Sony's continued reliance on falling PS2 sales. As for the PS3, it's actually a dim bright spot: hardware cost reductions and increased game sales slightly stemmed the tide, but Sony's still expecting the division to lose money in the coming year. Sony also says it has "extensive measures" in store to try and turn things around after that, so we're hoping Sir Howard's plans to embrace open formats and listen to consumers are kicking into gear, but we'll see.Read - Sony financials [Warning: PDF]Read - Reuters reportRead - MarketWatch
Apple cracks top five UK PC makers
Although overall shipments for Macs are at an 18-month low , worldwide numbers continue to climb. Macworld UK pointed to a Gartner study evaluating UK PC shipments for the first quarter of 2009. Apple has moved up, joining the top five PC manufacturers in terms of units shipped for the first time.According to Gartner, Apple shipped 143 thousand units in the UK the first quarter of 2009, accounting for 4.8% marketshare. That represents a 6.6% growth year over year, which is in sharp contrast to the 5.1 percent decrease in the overall UK PC market.At 4.8 percent, Apple is still a relatively small player -- the number four manufacturer, Toshiba, shipped nearly twice as many units -- but these numbers prove that Apple adoption is remaining strong, regardless of the economy.The figures that will probably get the most play in the non-Mac press are those from Acer, the number three manufacturer in the UK. Acer's year-over-year growth in terms of units shipped was up a whopping 40.6%, due in large part to its price-conscious netbook offerings.Apple and Acer approach the PC market from opposite ends of the spectrum; Acer goes for high-volume, low-margin sales, Apple does high-margin, lower-volume, yet both companies are succeeding in an industry that is declining worldwide.What does this mean? Well, to me, it means that despite Microsoft's quips, price doesn't necessarily dictate market share.
Rumor Watch: Apple to buy Twitter
TechCrunch's Michael Arrington is reporting that rumors beginning to float around the blogosphere are stating that Apple is interested in purchasing Twitter for US$700 million in cash. Twitter, in case you've been off of the planet for the last two years, is the magical "social networking" tool that has you answer the question "What am I doing right now?" in 140 characters or less. Twitter currently has more than 25 million users, and it is rumored that growth has been exploding since Oprah blessed the service with her presence in mid-April. However, despite the size and growth potential of Twitter, there's simply no compelling reason for Apple to spend part of its huge cash reserves to purchase the company.Google recently tried to purchase Twitter, but was turned down by Twitter's CEO Evan Williams. Today's rumor comes from a "normally reliable source" who told Arrington that "Apple is in late-stage negotiations to buy Twitter and is hoping to announce it at WWDC in June."Despite the popularity of Twitter, the service hasn't figured out a way to make a profit, and is strictly powered by venture capital at this point. Can any TUAW readers think of a reason why Apple should buy Twitter? Leave us a comment!
Apple Q2'09 results round-up
Today was a landmark day for the good ol' boys (and girls) at 1 Infinite Loop as they again posted record-breaking quarterly results. Profit was a svelte $1.21 billion for a grand total of $8.16 billion in revenue; or, as the guys in Wallstreet see it: $1.33 per diluted share. All of this is apparently good news as after-hours trading has shares of AAPL up about 4 points from the days close of $121.51. If you haven't already, you can check out some of our highlights of what drove those numbers as well as the full press release from Apple here. Also, MacJournals did a fantastic job covering the call via their Twitter feed, which can be found here.One continuing theme through the course of the call was the economy's overall effect on Apple's numbers. One noticeable effect was that professional and education sales were down during the March quarter. Even with the release of an entirely refreshed line of Mac desktops, the quarter saw an overall decrease in Mac marketshare. It wasn't all bad for Apple, however, as iPod sales (particularly the iPod Touch) were up enough to seemingly offset the bulk of the lagging Mac sales.While the results themselves are always nice to hear, the most interesting section of the quarterly call is the question and answer section that follows. The answers, while somewhat scripted, give the listeners a chance to hear Apple execs think and speak on their feet regarding Apple's results and plans for the future. One of the more notable topics during this discussion was Apple's opinion on the netbook market. Tim Cook took the question and in an answer that was truly Apple said, that netbooks are "junky ... not a consumer experience that we would put the Mac brand on," while quickly following-up with a good, old-fashioned "If we can find a way to deliver an innovative product ... then we'll do that." If you remember the days before the video iPod, then this conversation should be very familiar to you. For a good overview of the Q&A check out MacRumors' excellent post on the subject.If you don't care about the financial results and have grown tired of hearing Apple dance around whether they're going to release a netbook, then there is at least one bright spot in all of this. According Peter Oppenheimer, Apple is pleasantly awaiting the joyous return of Steve Jobs in June (we miss you Steve). I don't think anyone was really expecting any more or less information than that, but here's to hoping Stevie J. returns and brings with him all-new iPhones, netbooks, and pots of gold.Overall, the results were very positive for a company that deals in "luxury" products given the current economic climate. I hope that in the future Apple continues to succeed and that this is the last quarter we hear of in which Apple loses marketshare to anyone.[Via Engadget, MacRumors, and MacJournals]
Apple 2nd Quarter: $8.16B revenue, $1.33 profit per share
Apple released its second quarter earnings today, posting revenues of $8.16 billion, a profit of $1.21 billion ($1.33 per share). This includes sales of: 2.22 million Macs 11.01 million iPods 3.79 million iPhones During the conference call, it was reported that Apple is just hours away from selling its billionth app through the App Store. Approximately 37 million iPhone and iPod Touch units sold altogether. Update (5:37 p.m.): There are plans to bring the iPhone to China within the next year. It was also reported that Steve Jobs is expected to make a return to his duties at the end of June.The press release detailing the earnings is below the fold.
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]
Quantifying Wrath's success
The Egotistical Priest has a good series of posts up attempting to somehow quantify whether Wrath has been an overall success or not. Of course, it's definitely a financial success, but has the game's second expansion delivered what both players and Blizzard expected it to? Vonya sets out to find out in what has turned into a three part post: you can find parts one and two on the site now, and part three is set to come out tomorrow.So far, the answer is yes: while the area of Tradeskills is noted as less than a success (it seems to me, too, that tradeskills had more variety and options in Burning Crusade than their current state in Wrath, though that might be because we're only partway through the expansion cycle), everything else is noted as a win for Blizzard: they've really beefed up questing, balance has been intriguing since Wrath (and even if one class has rubbed you wrong, consider how many players came running back with the expansion patch to re-try their class), and of course, Achievements have (predictably) brought the game to new levels of addiction and given players of all kinds new things to do.Vonya still plans to tackle instancing and raiding as the other two criteria for Wrath's success (and there are probably a few other ways you could test it -- lore? setting?), but by the reasoning so far, Wrath is a win no matter how you slice it. Blizzard has outdone themselves with the second expansion -- the only question is where they'll go from here.
Co-Chairman of Activision Blizzard cashes in stock for $20 million
Just in time for Activision Blizzard's earnings report, Co-Chairman Brian Kelly liquidated 2 million shares of his stock in the company on March 12, earning over $20 million in the process. The move has caused some speculation that the trade spells bad news for the company's forthcoming report. Given that Rock Band Guitar Hero and World of Warcraft haven't showed signs of slowing even during the recession, it's a safe guess that the report won't trigger a massive sell-off. Kelly was the only director-level employee reported by the SEC to have traded large volumes of his stock, so it's unlikely his stock trade is related to Activision Blizzard's performance. When 30 percent of the board of directors begins selling off their assets, it'll be time to panic.
