Technology - Google News

Mark Zuckerberg calls Tim Cook's anti-Facebook retort 'glib,' defends ad-based model
Could Amazon Dominate the Future of Video Games?
Google is making a cheaper Pixel 3 model, but don't call it a Nexus

Mark Zuckerberg calls Tim Cook's anti-Facebook retort 'glib,' defends ad-based model

Posted: 02 Apr 2018 06:26 AM PDT

Facebook CEO Mark Zuckerberg defended his company's ad-based revenue model in an interview published on Monday, seemingly also challenging the spin adopted by Apple CEO Tim Cook.

"You know, I find that argument, that if you're not paying that somehow we can't care about you, to be extremely glib," Zuckerberg said in speaking toVox. "And not at all aligned with the truth. The reality here is that if you want to build a service that helps connect everyone in the world, then there are a lot of people who can't afford to pay. And therefore, as with a lot of media, having an advertising-supported model is the only rational model that can support building this service to reach people."

The CEO noted that he makes decisions "based on what's going to matter to our community," focusing less on the ad side of the business.

Facebook has frequently been criticized as making users its product, collecting their data for targeted advertising. The interview comes in the wake of a scandal in which Cambridge Analytica gathered data on over 50 million Facebook users without their permission —in turn using it to influence U.S. voters, specifically in favor of President Donald Trump's 2016 election campaign. Since the data was originally scraped in 2014, Facebook has tightened its privacy policies.

"But if you want to build a service which is not just serving rich people, then you need to have something that people can afford," Zuckerberg continued. "I thought [Amazon CEO] Jeff Bezos had an excellent saying on this in one of his Kindle launches a number of years back. He said, 'There are companies that work hard to charge you more, and there are companies that work hard to charge you less.' And at Facebook, we are squarely in the camp of the companies that work hard to charge you less and provide a free service that everyone can use.

"I don't think at all that that means that we don't care about people. To the contrary, I think it's important that we don't all get Stockholm Syndrome and let the companies that work hard to charge you more convince you that they actually care more about you. Because that sounds ridiculous to me."

Apple's Cook recently attacked Facebook directly in relation to Cambridge Analytica.

"The truth is, we could make a ton of money if we monetized our customer —if our customer was our product," he said. "We've elected not to do that." Cook declined to answer how he would respond if he were in Zuckerberg's shoes, saying simply that he "wouldn't be in this situation."

Cook has regularly touted Apple's privacy safeguards. The company has sometimes even maintained these policies to its detriment, for example making Apple News less attractive to advertisers, and reducing the effectiveness of its voice assistant, Siri.

In recent times it has taken flak for making some of its core products increasingly expensive. The latest iPhones now start at $699, and the top-of-the-line iPhone X is $999 or more. People wanting to buy a state-of-the-art iPad must pay at least $649 —much more than the $499 it cost to get a first-generation model in 2010, though inflation lessens the gap somewhat.</span>

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Could Amazon Dominate the Future of Video Games?

Posted: 31 Mar 2018 08:39 AM PDT

When it comes to video games, Amazon.com(NASDAQ:AMZN) is not messing around. The company boldly states on its Amazon Game Studios website that it is "all-in on [video] games." It's understandable since the video game industry is growing about 8% per year and is expected to reach $143 billion by 2020.

Amazon already owns one of the leading game streaming sites in Twitch, which may be the most valuable asset in the video game industry right now considering the growing popularity of spectator gaming. Twitch sits right in the sweet spot of where gaming is trending -- socially connected, competitive gameplay.

Most importantly, as Amazon has grown in size, its spending on technology and content has also grown. With an ever growing stream of cash to invest, the sky's the limit for Amazon's video game ambitions.

Team of gamers sitting at computers playing a game at an esport event.

IMAGE SOURCE: GETTY IMAGES.

Amazon has the technology to be a major player

Over the last few years, Amazon has been releasing software tools to help game developers make games. All of it integrates seamlessly with Amazon Web Services (AWS) and Twitch.

Amazon recently announced a new tool for video game developers called GameOn, which provides features for integrating in-game tournaments, leaderboards, and other multiplayer features in games.

Amazon also offers its own game development software called Lumberyard, which includes a full suite of features to create a big-budget game. Lumberyard is built on AWS, which provides the cloud infrastructure game makers need to connect many players together simultaneously for online multiplayer game modes.

Then there's Twitch, the popular game streaming site where people tune in to watch others play games, as well as broadcasts of esport events. Twitch's audience has grown larger than legacy TV channels like ESPN, according to SuperData. This is a very valuable asset for Amazon since every game maker desperately wants their games to reach as large an audience as possible, and Twitch is increasingly being seen as the place to make that happen.

AWS, Lumberyard, and Twitch make an attractive bundle for game makers. With Twitch, Amazon holds the keys to a growing $4.6 billion game streaming market that is causing video games to have a bigger impact than ever before on the world of entertainment.

While Amazon is happy to see developers take advantage of these offerings and flood Twitch with more content, Amazon Game Studios is currently making games of its own that targets the millions of viewers on Twitch.

Making games for a massive audience

Amazon Game Studios has hired several industry veterans that have worked on some of the most popular games in the industry. But there are still several job openings the company has available spanning various roles, including game programming, graphic artists, and managerial roles. In the last year, Amazon hired two former Electronic Arts(NASDAQ:EA) employees with experience designing games, and they will take lead game development roles at Amazon Game Studios.

Currently, Amazon is working on two offerings that are aimed at the type of multi-player competitive games that are growing in popularity, especially with streamers. One of these games is called New World -- a multi-player online battle arena (MOBA) game, which is one of the most popular genres on the esports scene.

The other game is called Crucible and is similar in format to Activision Blizzard's (NASDAQ:ATVI)Overwatch. With Overwatch League on its way to becoming one of the most watched annual esport events, Amazon is attempting to tap into the basic format that has made Overwatch successful. Like Overwatch, Crucible is a six-versus-six team-based shooter; however, Crucible introduces its own unique setting and competitive rules that distinguish it from Activision's game.

Amazon could potentially invest...whatever it wants

Amazon sees video games "becoming the largest entertainment form on earth." That's a bold statement from a company that has invested billions in Prime Video content to compete with other leading video content providers.

All of the software and services mentioned above, as well as Amazon's own views on where the gaming industry is heading, leads me to believe the online retail juggernaut is on a mission to be a major player in the video game industry.

But when we consider the massive amounts of money it could potentially spend on gaming-related content, Amazon just might dominate the industry someday. Consider that in 2017 Amazon spent $22 billion on technology and content alone, which includes payroll for employees working to design and develop new products and services. That's almost double the $12 billion the company spent in 2015.

Amazon can potentially outspend other dedicated game companies like EA and Activision where it counts the most -- talent. You can have all the fancy software and technology in the world, but what makes a great game is design and programming talent. Amazon has got the budget to lure some of the best in the industry, and that's why Amazon could dominate the video game industry.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. John Ballard owns shares of Activision Blizzard. The Motley Fool owns shares of and recommends Activision Blizzard and Amazon. The Motley Fool recommends Electronic Arts. The Motley Fool has a disclosure policy.

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Google is making a cheaper Pixel 3 model, but don't call it a Nexus

Posted: 02 Apr 2018 06:20 AM PDT

Google will have three devices in its Pixel 3 lineup this year, a new report says, including an affordable model. But before you get too excited about Google bringing one of the best things about the Nexus line to the Pixel family, you should know this affordable Pixel handset is supposedly going to target India and similar markets. In other words, it might not even be sold in the United States or other top markets.

Also of note, the third new Pixel 3 phone will supposedly be a mid-range device, meaning that it won't share some of the specs and features Google has cooked up for its Pixel 3 flagships.

Google has formalized its strategy for India, which includes the rollout of several types of products, including the mid-range Pixel 3 phone, according to four senior industry executives who talked to ET Tech. Google is also bringing its smart home products to the country, including Home and Nest devices, as well as the pricey Pixelbook laptop.

The company will supposedly expand its presence when it comes to distribution channels, focusing on neighborhood mobile phone stores which accounted for 36% of Pixel sales in India. Online sales, meanwhile are reportedly responsible for 38% of Pixel sales.

Specs for the mid-range Pixel 3 phone were not mentioned, but the report does note that the mid-range model could be launched in India as soon as July or August. The actual price of the cheaper handset hasn't been divulged.

The flagship Pixel 3 models may hit the market around Diwali, which is the Hindu festival of lights that's celebrated every autumn. Diwali 2018 starts on November 6th. Google usually unveils its new Pixel hardware in early October, with phones shipping by the middle of the month.

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