Sunday, October 31, 2010
Saturday, October 30, 2010
Rumor: Apple to Acquire Sony?
Today big gaming news comes from an unlikely source; weekly financial newspaper, Barron's. This week they speculate that Apple is in the market for a huge acquisition; naming Sony, Electronic Arts, and Disney as possible targets.
It is no secret that Apple are huge. What may come as a surprise is how large they really are. According to Barron's Apple has become the second largest company in the world; only eclipsed by ExxonMobile. Even more surprising, the technology giant is catching up to the big oil baron. Like all oversized companies, it is Apple's goal to continue their growth, and they have the money to do so. The tech giant has 51 billion dollars to invest in an acquisition. Which is enough to buy Sony or Disney.
It has been well known that Apple has been seeking ways to make inroads into the lucrative gaming market. With a market cap of 33 billion dollars, a strong brand, and high quality first party development teams, Sony seems like a smart and affordable acquisition. In addition, Sony comes with a huge manufacturing component that will help Apple bring manufacturing of their goods in-house. Other perks include a strong media distribution presence and licensing perks from Blu-ray discs. For Apple, these perks may just outweigh the headaches of Sony's persistent red ink and less profitable divisions.
Electronic Arts is also affordable, but only gives Apple a single benefit. Disney on the other hand may simply be too expensive, but does have business in video games and media distribution, and comes with a household name.
With 51 billion dollars to throw around, it would be interesting to see what strategy emerges from Cupertino, CA. We can be assured that it will be big and surprising, which is Steve Job's 'MO'.
Monday, October 25, 2010
Will Google TV Destroy TV?
If you don’t follow these things, Google TV is a recently announced effort from Google, Sony and others to enter the already active and increasingly chaotic world of Internet connected TV.
Yahoo, Roku, Vudu, Apple, Netflix, and others are already doing it. Google is new to the party, but a big name attracting attention. (and a new Apple TV is now rumored)
The basic idea of the connected TV is to take the kind of video watching you do on your computer and move it to the biggest and best picture, sound and seating you have in the house. The original video device. The almighty television.
You could get all the breadth, randomness, and consumer friendly economics of Internet video without the neck and back strain of “leaning forward” over a keyboard and mouse.
But does this matter? Will it change the world? The hype from Google and the others would say yes.
This is all fine for the oddball viral video and niche specialty content that doesn’t already exist on traditional television or DVD, but what would really change the industry would be getting high value network or studio products like you find on Hulu. You could cancel your cable bill and watch far fewer advertisements. Sounds great right? But…There is no free lunch. TV is expensive to make. Especially if it’s good TV. A show like Lost with visual effects, big sets, and well paid union writers, directors, and actors needs a budget. A big budget.
Where does that money come from? There’s a complicated answer to this and a simple answer. The simple answer is the money comes from you.
Just like when taxes are raised on corporations, ultimately they’ll raise prices on products and get that money from consumers. The money is in the people, and if the people stop paying, there is no other source.
The complicated answer is that it comes from you in many ways. Part of your cable bill makes its way back to the networks. The time you take watching advertising (unless you’re skipping, more on that later) is value extracted from you and sent back to the network. And the season box sets you buy or rent on DVD count as well. more...