Despite selling more than a million Xbox Ones in less than 24 hours after launch, Microsoft is not going to make money off its latest gaming console anytime soon, prompting some analysts to advise a spin-off for the Xbox division. Barron's points us to note sent on Friday by Nomura Equity Research analyst Rick Sherlund to investors claiming that Microsoft stands to lose more than $1 billion this year from its Xbox venture, a number that looks slightly better than the initial $2 billion Xbox One loss forecast from the same research firm.
I think it's good I'm not a "finance" or "business" person, because selling shit without making money on it doesn't make any sense to me.
An Amazon employee from 1997-2004, Eugene Wei spells things out for people who still parrot out the lazy argument around Amazon's profitless business model:
Amazon has seen that lowering its shipping costs and increasing the speed of shipping items to customers is like a shot of adrenaline to customer's propensity to buy from them, and so it has doubled down on building more and more fulfillment centers around the world. When I joined Amazon it had one fulfillment center. Today it has dozens just in the US alone, and I would not be surprised if it has more than 100 fulfillment centers worldwide now.
That is a gargantuan investment, billions of dollars worth, and it takes a significant bite out of Amazon's free cash flow. Add in its investments in infrastructure to support a growing AWS client base, and Amazon has again hiked its fixed cost base to a higher plateau. But for Amazon this is nothing new, it's just the same typeface bolded.
But Jeff [Bezos] is not wired that way. There are very few people in technology and business who are what I'd call apex predators. Jeff is one of them, the most patient and intelligent one I've met in my life. An apex predator doesn't wake up one day and decide it is done hunting. Right now I envision only one throttle to Jeff's ambitions and it is human mortality, but I would not be surprised if one day he announced he'd started another side project with Peter Thiel to work on a method of achieving immortality.
As Eugene points out, the people who bitch and moan about the profitlessness of Amazon sound a lot like the people who bitch and moan about the slow, deliberate iterations Apple has with its products.
Oof. Not good news for people who use Media Temple to host their sites.
GoDaddy is a sleazy company.
I put them in the up there with Dov Charney and his American Apparel.
BlackBerry Co-Founders Lazaridis, Fregin Mulling Bid to Buy Back Company
BlackBerry co-founder and former co-CEO Mike Lazaridis is considering taking a run at his former company with fellow co-founder Doug Fregin.
According to a regulatory filing released Thursday, the pair are exploring a potential takeover bid for the struggling smartphone company, which is already entertaining a $4.7 billion offer from its largest shareholder Fairfax Financial.
Because, well, why not?
Why shouldn't he get the chance to run his company into the ground a second time?
It's the American way.
Wait, Blackberry is Canadian, right? Shit.
Eric Chemi at Bloomberg Businessweek puts things into perspective for the iPhone haters:
If [the iPhone] were its own company in the Standard & Poor's 500-stock index, IPhone Inc. would outsell 474 of those companies--ranking between Wells Fargo (WFC) ($90.5 billion) and Marathon Petroleum (MPC) ($84.9 billion). The iPhone's $88.4 billion in annualized revenue tops 21 of the 30 component companies in the Dow Jones industrial average--it would be the ninth-biggest stock in the Dow 30
That's a big Twinkie.
Great interview with Horace Dediu for Forbes.com:
Q: Is Tim Cook the right CEO for the company at this time?
A: I hold the belief that he's been CEO for much longer than it seems. Jobs was not a CEO in any traditional sense. He was head of product and culture and all-around micromanager. He left the operational side of the company to Cook who actually built it into a colossus. Think along the lines of the pairing of Howard Hughes and Frank William Gay. What people look for in Cook is the qualities that Jobs had but those qualities and duties are now dispersed among a large team. The question isn't whether Cook can be the "Chief Magical Officer" but rather whether the functional team that's around Cook can do the things Jobs used to do.
Microsoft launched a new site, Microsoft by the Numbers which highlights all their product stats like:
over 170,000 apps for Windows Phone
over 2 billion minutes per day spent by Skype users
76 million XBox 360 consoles sold to date
It looks like they're missing a big number though.
Where's the $900 million write down for all the unsold Surface RT tablets?
I couldn't resist. Microsoft, you set me up for this.
The Verge: CBS blackout sparks rise in TV show piracy
CBS's block on Time Warner Cable (TWC) customers is less than a week old and already the blackout is fuelling a rise in TV show piracy. TorrentFreak reports that the percentage of illegal downloads rose substantially in the week since it went dark, as piracy rates for popular CBS show Under The Dome increased by 34 percent over the course of one weekend. As downloads went up, the show unsurprisingly saw its lowest viewing figures this season.
My wife worked at NBC Universal for over 10 years. One of the many things I learned about television from her was don't fuck with peoples' cable.
Omnicom and Publicis are joining to form Omega Supreme.