outsourcing
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LG plans to outsource more of its low-end and mid-range phones
The in-house mobile team will focus on premium devices.
MakerBot will start outsourcing its 3D printers
Less than a year after opening its 170,000-square-foot factory in New York City, MakerBot announced today it will partner with international manufacturer Jabil to produce its 3D printers moving forward. Over the next few months, the company will lay off a number of employees and shut down its Brooklyn facilities as it transitions to Jabil's factories overseas.
Barnes and Noble farms out some Nook tech services
The slow retirement of the Barnes and Noble e-reader continues. After shedding its deal with Microsoft (and closing services outside of the UK and US), the bookseller is looking to save money by outsourcing dev support and cloud services to Bahwan CyberTek -- which specializes in such things. It's pretty incredible how much money Barnes and Noble estimates it will save with the move: $13 million. However, 80 employees will lose their jobs when the company closes its offices in California and Taiwan.
LG agrees to build Bang & Olufsen's pricey TVs
Even if you really love Danish design, $8,000 is insane for a 55-inch Bang & Olufsen 4K TV, since a superior OLED model from LG costs about three grand. B&O may have though the same thing, because it decided to outsource its television manufacturing to LG Electronics. While it's still responsible for the design and acoustics, LG will take take over development and production, saving B&O 150 million kroner ($23 million) over three years. "We've been losing significant amounts of money on developing and building the TVs because we're sub-scale." CEO Tue Mantoni tells Bloomberg. "We make about 30,000 TVs a year and LG produces about 40 million."
The next 'Toshiba' TV you see will be made by a different company
Toshiba has undertaken many attempts to reshape its TV segment over the years with "Cloud Portal" and Cell TV, but none have hit the mark and now it's getting out of the business entirely in North America. Following other Japanese manufacturers that have axed (Pioneer), scaled back (Panasonic), or reorganized (Sony) their TV operations, Toshiba will license its name to Taiwan's Compal. New TVs from the venture will be on shelves in March, so don't be surprised if they're a bit different. It already switched to more outsourcing after axing jobs in 2013, so the shift may turn out to be subtle. Toshiba has always been willing to bring some unique -- if not always appreciated -- aspects to the game, and we'll be sad to see them go. The plan now is to "develop new technologies and services" while it works on securing a stable profit.
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Final Fantasy X/X-2 HD development outsourced to contractor Virtuos
After delaying its pilgrimage to North American PS3s and Vitas, the cast of Final Fantasy X/X-2 HD Remaster will set out to stop Sin again on March 18. The visually-upgraded, content-rich telling of Yuna's story has kept fans waiting for a while, and it looks like outsourcing contractor Virtuos is to thank for wrapping up the project. Virtuos, a multi-location effort with its main production center in Shanghai, credited itself as being responsible for the remaster of Square Enix's double feature. The studio describes itself as a resource for console, online and mobile games, with the PSP version of Ghost Recon: Predator and Crash: Mind over Mutant among its past efforts. Of course, expectations for FFX/X-2 HD are likely higher than expectations of previous Virtuos console games. Hopefully its collaboration with Square Enix results in a satisfying return to one of the PS2's most iconic RPGs and its encore.
Jukebox Heroes: TUG and crowdsourcing soundtracks
While I'm still reasonably wary of Kickstarter and the pie-in-the-sky promises that have come out of these fundraisers, I can't deny that there have been potentially exciting ideas out there, especially in the field of MMO music. For starters, we might one day see Anthymn, a fantasy MMO completely based around music. It's a notion so breathtakingly cool that I fear it might never see the light of day while thousands of been-there-killed-that titles trudge into existence. But talking with the creators of that game really drove home the fact that music is such an integral part of our lives and can hold a similar place of honor in our virtual worlds. And then there's TUG, another quirky Kickstarter prodigy, which demonstrated how music and sounds can be used as social glue to pull people together. It showed us this with a wordless video that got its point across perfectly. Now TUG's devs are throwing out a different idea concerning music: Why not outsource some of the game's soundtrack... to the fans themselves?
Made in America: could your next phone be homegrown?
"Made in America." For some reason, my parents -- and the parents of many of my peers -- take great pride in seeing that phrase. I've seen people buy inferior products just because the label on the back proclaimed that it was thrown together in one of our 50 great states instead of across some imaginary line in "another country." Part of me wonders if people actually check to see if said claims are legitimate. As a business graduate, I fully understand the importance of producing goods within one's borders. There's a delicate balance that needs to be struck between imports and exports, and a huge part of a nation's economic growth hinges on how well that balance is executed. I suspect the generation before mine remembers a very different America than the one I've grown up in -- one where smokestacks outnumbered high-rise buildings, and one where jobs requiring steel-toe shoes were more lauded than those requiring a fancy degree and "knowing the right guy." Manufacturing was the backbone of America through some really, really trying times, and there's some sense of national pride that comes along with images of swinging hammers and climbing ladders. "We built this country," as they say.
BioWare says gamers find it hard to go back to other MMOs after playing SWTOR
As Star Wars: The Old Republic's release date looms larger on the calendar, BioWare co-founders Ray Muzyka and Greg Zeschuk are starting to be seen with increasing frequency on the PR circuit. The latest sighting comes courtesy of The Gaming Liberty, and the dynamic doctor duo offers up some interesting commentary on SWTOR and the logic behind setting up BioWare's new customer service center in Ireland rather than Canada or the U.S. There's a "fair, reasonable tax and regulatory structure the government here [in Ireland] has provided for us which creates an entrepreneurial environment [...] which is a big bonus," Muzyka explains. The interview also touches on lore inspirations for both The Old Republic and the classic single-player Knights of the Old Republic RPG, as well as the team's confidence in its new massively multiplayer product. "One of the most common things we're already hearing is that people seem to find it hard to go back to other MMOs once they play The Old Republic," Muzyka said.
Nokia and Accenture seal Symbian handover deal
The Is have been dotted, the Ts have been crossed with a flourish, and pretty soon Nokia will have very little indeed to do with its formerly beloved Symbian OS. Oh sure, the company promises to keep it going with such standout devices as the Oro, but responsibility for developing and supporting Symbian is being wholly handed over to Accenture, along with 2,800 employees. When announced back in April, the deal called for 3,000 Nokia worker bees to make the jump over, so we suspect a few more (hopefully voluntary) redundancies are making up the difference with the new number. Now that everything's been finalized, you can expect the switchover to take place in "the early part of October." Accenture promises to care for its ailing patient through 2016, after which point even the most die-hard of fans will have to make the switch to a mobile OS from the 21st century. Full PR after the break.
Epsilon breach exposes TiVo, Best Buy email addresses, spambots stir into action
If you're subscribed to any of TiVo's email-based communiqués, now would be a good time to make sure your spam filters are up to scratch. Epsilon, TiVo's email service provider, has reported the discovery of a security breach that has compromised the privacy of some customers' names and / or email addresses. A rigorous investigation has concluded that no other personal data was exposed, however it's not just TiVo that's affected -- other big names, such as JPMorgan Chase, Citi, US Bank, Kroger, and Walgreens have also seen their users' deets dished out to the unidentified intruder. As we say, no credit card numbers or any other truly sensitive data has escaped, so the only thing you really have to fear is fear itself... and an onslaught of spam. Update: Best Buy and the US College Board have also joined the extremely broad list of affected organizations now, judging by the warning emails they've been sending off to our readers. Valued Best Buy customers should expect an email similar to the scawl posted after the break. Update 2: You can also count Chase Bank customers among those also affected -- not their bank accounts, mind, but their e-mail addresses. [Thanks to everyone who sent this in]
Crowdsourcing company introduces the 'game-ification' of dull labor
What might look like a bridge of gibberish to you is more precisely a string of seemingly random Finnish words (so, yeah -- gibberish). See a word and type it. Do so correctly and you'll have constructed a segment of the bridge, leading a parade of moles across a chasm. You repeat the process -- type the word you see -- until construction is complete and your performance is scored. This is Mole Bridge, and it's "valuable work," Ville Miettinen, CEO of creator Microtask, tells VentureBeat. Like other taskmaster companies before it, Microtask, a Finnish startup, is using a crowdsourcing model to distribute mind-numbing, repetitive work across a network of laborers -- actually, volunteers for now. "Pure monetary compensation is a 20th-century concept," Miettinen told The New York Times last October. At the time, he envisioned the "game-ification" of dull clickwork, which could pay players with virtual currency or other rewards valued by gamer culture. It's now a reality. The company's first major project, "Digitalkoot," has some 25,000 volunteers digitizing the archives of the National Library of Finland by playing Mole Bridge and its companion game, Mole Hunt. (See a video of each posted after the break.) So all that gibberish? Uh-huh, it's actually a series of randomly selected images -- in most cases, individual words -- from scanned documents, which character recognition software has been unable to interpret. Our reward for still being smarter than the machines? A high score.
Toshiba outsourcing semiconductor production to rival Samsung
'Tis the season for manufacturing deals? Sure seems it. Merely hours after Sony announced its intentions to buy back Cell chip fabrication facilities from Toshiba, it looks as if Tosh is about to enter into yet another agreement. In this case, it'll be outsourcing the unprofitable production of semiconductors to rival Samsung, which will be responsible for churning out the brains behind a number of smartphones, televisions and digital home appliances. Numerous sources have explained that Toshiba is interested in realigning its focus onto the blossoming memory chip business, and moreover, its hoping to evade costly facility upgrades that would be necessary to remain competitive in the system LSI business. In other words, the company is dodging investment costs and placing a greater emphasis on a sector that's already profitable (NAND flash production, for those curious), and after the Oita plant is handed off, it'll be used to make image sensors in digital cameras. The Nagasaki plant, as we heard earlier, will be handed over to Sony. Toshiba's stocks were sent northward after investors welcomed the news, but of course it remains to be seen what kind of consumer impact this will have. Whatever the case, we certainly hope Toshiba never runs into any trouble with Sammy -- it's not like its top brass can be touched, regardless of infraction.
Sony said to be outsourcing production of high-end LCDs, Foxconn and Wistron getting the nod
Potentially bad news this morning for fans of high-end Sony HDTVs. The company, still struggling with huge losses and desperate to find reasonable pricing for its exported TVs amid historically high values for the yen, is looking to outsource not only assembly but full panel production on many of its LCDs. According to the report, up to 80 percent of Sony's 2011 sets will be manufactured externally, with between 40 and 50 percent of those getting panels manufactured by Foxconn-affiliate CMI. Foxconn itself is said to be producing 18 million sets, while Wistron, the other major partner here, will stamp out Sony's Google TV. If true this will be the first time Sony has outsourced full production of its higher-end models to Taiwan. None of this has been confirmed by any of these players, so apply salt to taste, but the concepts certainly make sense, and recent production slowdowns at the company's massive new LCD production facility could be related. Naturally you're wondering whether this move to help Sony's bottom line will hurt quality, but since Sony just sold one of its major panel-production facilities to Foxconn last year maybe this isn't so much a change as it is keeping things the same.
Sony outsourcing some image sensor production to Fujitsu
Whoa. Sony sure didn't mention anything about this at its Photokina press conference last week, but then again, it's not the most glamorous announcement to make. According to Reuters, Sony is aiming to "outsource some production of image sensors used in digital cameras and mobile phones to Fujitsu," and as you'd expect, it's being done in a bid to shave costs and "cope with tough global competition." According to a Sony spokesperson, the company has been mulling this decision for awhile, but it's unclear if this will have any further impact in Sony's employment numbers. It's also unclear why "some" sensor production will remain internal -- we're guessing that newfangled Translucent Mirror technology may have convinced the firm to keep the DSLR lines a bit closer to the chest. It's bruited that Sony will begin subcontracting output to Fujitsu later in the year, and it could shift even more output if things go swimmingly. Funny enough, an eerily similar scenario hit Sony's LCD department back in early 2008. What's next? Subcontracting Walkman production to Apple?
Dell looking outside of China for 'safer environments,' according to Indian PM
The Hindustan Times cover this morning has a generous space dedicated to Google's exit out of China and related efforts at redirecting mainland users to its Hong Kong hub, but couched cosily inside that story is perhaps an even bigger one. Indian Prime Minister Manmohan Singh is quoted as saying that Dell is considering taking its $25 billion's worth of business elsewhere, possibly India: "This morning I met the chairman of Dell Corporation. He informed me that they are buying equipment and parts worth $25 billion from China. They would like to shift to safer environment with climate conducive to enterprise with security of legal system." Michael Dell's outfit already has one manufacturing plant in India, and the man himself has been on a charm offensive in the country this week meeting and greeting local officials. It could well be, however, that Dell is just seeking to play China and India off one another to get itself the most favorable manufacturing deal, but it's still interesting to find such a high profile protestation against the supposedly enterprise-choking climate and uncertain legal system in China. It appears that Google's wrangle with the Middle Kingdom's leadership has forced consumer electronics execs to reevaluate their strong reliance on China, and the (very) long-term effects could indeed be a shifting, or at least diversification, of manufacturing away from Yao's homeland. [Thanks, Piyush]
Study: Development outsourcing not as dreamy as it sounds
GameBizBlog reports that a new study from development consulting firm Beriah suggests outsourcing game development isn't always the best option. The report seems to center on the UK, noting that low salaries for developers in certain territories don't necessarily translate to dramatic savings. As a theoretical example, the report stats that an outsourced UK project should expect only a 19% savings, even with outsourced salaries only one-fifth to one-half of a typical UK developer. The best ways to really save money, according to the report, are good partnerships and smart management. The report states that "most UK teams" could save 30-50% off development costs "if they choose to." Unsurprisingly, Beriah uses the report to pump itself up, noting that the most money it has saved for a client is 68%.The one cost cutting measure seemingly neglected by the report: Layoffs.[Via Develop]
Sprint mulling outsourcing network maintenance, transferring staff to Ericsson?
Word on the street is that Sprint is currently in heated discussions with Ericsson -- the world's largest network infrastructure company -- to take over management and maintenance of its vast back end along with somewhere between 5,000 to 7,000 of the carrier's employees in an effort to lower costs by about 20 percent as its subscriber counts and tends both stay soft. Interestingly, Sprint already sold some of its towers to TowerCo last year for over half a billion dollars, so it's not clear exactly how Ericsson fits into the puzzle yet -- but at any rate, Sprint would apparently be paying something on the order of $2 billion over the next several years for Ericsson to do its thing. In light of this, it's kind of ironic that Sprint doesn't sell a single Sony Ericsson handset, isn't it?
Epic Games China reforms as Titan Studios, developing MMO
When most of us hear talk of the company "Epic Games", the first thing that comes to mind is Gears of War or the Unreal series of titles. While Epic Games had a Shanghai games studio for outsourcing purposes, it's now evolved into Titan Studios, a wholly owned subsidiary based in Seattle. Through Titan Studios, it seems Epic Games is turning their attention to MMOGs, following up their work on the PS3 title Fat Princess.As to what's going on within the Titan Studios walls, GameSpot's Tom Magrino reports that "an undefined number of unannounced projects are in the works at the studio, one of which is a massively multiplayer online game." Needless to say, that bit of information has piqued our interest, and we'll keep our eyes open at Massively for more about the Titan Studios MMO project in the future.
Fury not dead, just on life-support
Last week we reported on a widespread rumor that, due to Fury's commercial flop, Australian developer Auran was going to be the subject of a big lay-off, and that a significant chunk of Fury's development going forward was going to be out-sourced to China. Auran CEO Tony Hilliam recently addressed these concerns, and his comments were posted on Auran's official forum.While promising to revolutionize the way PvP in MMOs works, critics have lampooned the game for its muddled combat, and the fact that it only loosely qualifies as an MMO in the strictest sense. Interestingly, though Hilliam tries to take an upbeat tone in his remarks, he really doesn't deny any of rumors he claims to be debunking, saying, "The future will focus on a smaller, more agile core team of Fury developers." That's fairly transparent executive speak for "all non-essential personnel are being laid off." He also confirmed rumors that much of the future development is being out-sourced to China.Perhaps the only solace for these non-essential Auran developers is that neighboring Aussie developer Tantalus is looking to snatch a few of them up to help develop DS and Wii titles. That's at least one bit oh holiday kindness, amidst a pile of bad news.
