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Xbox Game Pass Price Increases: A Discussion on Growing Gaming Expenses | Games

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IIn the realms of music, television, and film, the emergence of streaming has dramatically revolutionized the traditional business model. Instead of purchasing an album or movie, most of us now opt for a few subscriptions based on our viewing preferences, occasionally supplementing this with unique records or special Blu-ray editions. This shift poses significant challenges for musicians, as they earn roughly $0.004 per play on Spotify. In contrast, Spotify itself has achieved a billion dollars in profit (after years of operating losses). On the television side, customers are increasingly frustrated; in my household, we juggle five different TV subscriptions, based on our series interests, just to manage costs effectively.

This subscription model has not gained the same traction in video games. Apple’s Arcade service provides premium mobile games for £6.99 per month, but the free-to-play model prevails on mobile devices, generating massive profits primarily through advertising and in-game purchases. (Fun fact: approximately 85% of the gaming industry’s total revenue predominantly comes from free-to-play games in regions like China.) While Netflix offers games included in its subscription, user engagement remains low. PlayStation and Nintendo have their own subscription services, but these mainly feature older titles rather than new releases. Xbox Game Pass stands out with over 200 games available, but purchasing new exclusive games still comes with a hefty price tag—until now.

Recently, Microsoft revealed that the price of its Game Pass Ultimate subscription would rise from £14.99 to £22.99 per month. (This tier includes all the latest releases, with more affordable options still available.) Additionally, subscribers in certain countries (primarily Europe) received emails notifying them about a delay in the price increase, while those in the UK and US face the additional cost. Price hikes had long been considered unavoidable given the millions of dollars invested in blockbuster game development, alongside payments to developers for hosting on its services. A Bloomberg estimate indicated that Microsoft spent $300 million on revenue by including Call of Duty in Game Pass.

Does this imply that Game Pass isn’t achieving the success Microsoft anticipated? We consulted Christopher Doling from the Game Business Newsletter, who provided invaluable insight. “Game Pass is profitable,” he noted. “However, it affects premium game sales. Notably, titles like Halo Infinite and Starfield have not performed as well on the charts as anticipated. Microsoft’s acquisition of Activision Blizzard for $70 billion is under scrutiny by company leaders, including Chief Financial Officer Amy Hood. It’s not just about profitability; it’s about growth. Microsoft expects a significant return from the Xbox division on this investment. This isn’t excessive,” he added, simplifying matters. Thus, Xbox is cutting costs, projects, and even studios, while raising prices across the board.

With sluggish console sales for Xbox in recent years, the company is depending on Game Pass for growth. Microsoft has ceased reporting Xbox migrations, preferring to discuss revenue and engagement. However, sales of the Xbox Series S/X are estimated to be substantially lower than those of the 2013 Xbox One, putting it in a competitive third place behind Nintendo and PlayStation. Xbox executives themselves have acknowledged that console sales are no longer a priority. This is likely why Microsoft has started to release many of its games on PC and PlayStation, while heavily investing in studio acquisitions to create more content for Game Pass.

Call of Duty Warzone promotional images. Photo: Activities

However, the broader question remains: what does the future hold for subscription-based video games? Furthermore, what implications does this have for developers? One potential trajectory may mirror trends seen in the television industry where subscription costs gradually increase, and streaming services proliferate, forcing gamers to pay substantial amounts annually for the latest titles. Meanwhile, developers may feel the impact of decreased direct sales, making it harder for them to financially support ambitious projects, which could stifle the emergence of original art. Despite this, millions of gamers are still willing to spend £70 on games upon release. Titles like Mario Kart World and Assassin’s Creed Shadows were among the top-selling games in Europe the first half of this year. Why then are major companies attempting to undermine this?

“For the [smaller] developers, right now, Game Pass serves as a vital discoverability tool in an industry where that’s genuinely a concern. It also enables players to access games more economically (well, that used to be the case) and is crucial in today’s economic environment. Nonetheless, there are valid worries about what the future may hold.”

Certainly, diverse business models can coexist within the gaming landscape, with video games currently finding a balance between free-to-play and premium formats. These categories cater to different audiences, and data indicates they do not cannibalize one another’s revenue. Some consumers prefer investing in high-end consoles and premium game titles, and the market has remained relatively stable over the past decade. As more casual gamers flock to free-to-play titles, the overall gaming landscape has expanded significantly, leading to enhanced viewership. If managed effectively, subscription services like Game Pass could provide intermediary solutions that do not completely erode traditional industry business models. However, given precedents in other arts sectors and the profit-driven ambitions of large corporations like Microsoft, this may be overly optimistic.

Despite rising costs, Xbox Game Pass continues to deliver substantial value for the most engaged players. “Xbox is asking the most active players to shoulder higher prices. Game Pass Ultimate caters specifically to these individuals,” Dring points out. “Statistics show they receive considerable value, so if they can afford it, a good portion of these players will likely accept the cost. The average Game Pass Ultimate user is expected to play around $550 worth of games annually.”

Editor’s Notes: Due to an editorial oversight, last week’s issue incorrectly referred to the new president of Nintendo of America, Devon Pritchard, using the wrong pronouns despite her being the first woman to hold the position. I apologize to Devon and appreciate those who brought this to my attention.

What to play

Baby Steps. Photo: Devolver Digital

September had a host of exceptional games, and I’m still catching up on them (and engrossed by Silksong). One game I’m particularly excited about is Baby Steps, a surreal slapstick comedy experience I’ve been eagerly anticipating forever. The narrative kicks off with a not-so-promising scenario where a sluggish man and woman, Nate, are dragged from their parents’ basement and plunged into the unforgiving wilderness. Using the triggers to lift your hesitant feet and the control stick to balance, you stumble out of the cave, bound for the camp at the mountain’s base.

However, the ensuing experience is among the most exasperating in gaming history. Expect to slip, stagger, and slide down areas you’ve painstakingly navigated for 20 minutes. I once stumbled Nate’s foot into a wooden beam and plummeted down, necessitating a lengthy trek back to the campsite I had just left an hour prior. Yet, astonishingly, I was glued to the screen until 2 AM, drawn in by its bizarre humor and the persistence required to maneuver Nate’s clumsy body. It truly embodies “painful beauty in art,” and if intriguing challenges appeal to you, give it a whirl.

Available: PS5, PC
Estimated play time: 10 hours

What to read

EA Head Office. Photo: Terry Schmidt/UPI/Shutterstock

  • For those interested in the ethical implications surrounding Saudi Arabia’s Public Investment Fund – as noted last week, EA is set to co-own a part of EA – Euro Gamer highlighted, “This is the Saudi national wealth that should be harnessed to advance the economic and social rights of the Saudi populace. Instead, it’s being directed towards lavish mega projects both domestically and internationally… This appears to be a deliberate tactic to distract from the human rights situations in the country.”

  • This summer yielded an animated Netflix film, K-POP Demon Hunter (if you know, you know), which has achieved notable popularity taking over Fortnite with new modes and character skins added. This sparked some lively discussions between me and my partner, who believes young kids shouldn’t play Fortnite. I’m more okay with it since it appeals to them. Either way, I will be engaging with it.

  • Pour one out for Rock Band, the once-famous plastic instrument game and the soundtrack of my college years. Its final installment, Rock Band 4, was delisted last Sunday, marking its 10th anniversary as the music licenses for the songs have expired. If you still own a copy, make sure to beef up your track library before all songs are taken off the market. As for developer Harmonix, they’ve shifted to creating music for Fortnite, thus signaling the end of new Rock Band games.

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What to click

Question Block

“We work in the dark to serve the light.” Photo: UBISOFT

A couple of weeks ago, I asked readers for thoughts on video game quotes that resonate with them. The responses were abundant. In no particular order:

“I’ve always believed if life hands you lemons, don’t just craft lemonade! Return those lemons and get angry! You don’t need those stinking lemons right now! What should I do with this? I’m calling for an emergency meeting with my life advisor!” – Portal 2, Submitted by Helen

“We work in the dark to serve the light” – I resonate with this phrase from Assassin’s Creed. It often echoes in my job as an assistant director in the film and television sector, where I spend a fair amount of time working in both literal and metaphorical darkness as a lighting manager. – Submitted by Stephen

“Please make your determination.” Undertale submitted by Kelly

“‘Comment is never forgotten, so there’s no need to remember it'” – this quote from Breath of the Wild holds a personal significance for me. A non-gamer friend wanted to give me a baby gift, so she printed this quote alongside a baby blanket and sent it to me. I still have it on my fridge. Loving everything her about Zelda, I named my daughter after the game. This line strikes me as particularly poignant during the final battle when Link confronts the dark beast Ganon, and his wise companion encourages him: it captures the essence of our journey as new parents. – Submitted by Kelly

“‘We’re not going to Ravenholm.'” – I often recall this quote from Half Life 2 whenever I am hesitant in my job and personal spheres—iykyk.

“Okay. This won’t cease until I die, but I yearn for pain when that moment comes. As friends depart and when I must let go, even when all hope collapses, I crave to feel it all. It is daunting. I embrace loss. I want to face challenges and rise above until it all concludes. Can I express that? I wish to find light again, even through hardship. Because feeling pain signifies meaning. It confirms my existence.” …at least, at least…” From May Borowski in Night in the Woods, submitted by Keira

If you have inquiries regarding the Question Block or anything related to the newsletter, feel free to reply or email pushbuttons@theguardian.com.

Source: www.theguardian.com

MicroStrategy’s Bold Investment in Bitcoin Sends Stock Price Soaring

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I
In the summer of 2020, amidst the disruption caused by the coronavirus pandemic on economies worldwide, an overlooked American software company made a bold decision to diversify. MicroStrategy, located near a shopping mall and subway station in Tysons Corner, Virginia, felt that its traditional “software-as-a-service” business was not daring enough.

Instead, the company announced its plans to broaden its horizons by investing up to $250 million in alternative assets, including stocks, bonds, commodities like gold, digital assets such as Bitcoin, and other types of assets.

Fast forward less than five years later, and the sideline in Bitcoin has propelled MicroStrategy to new heights. The company’s stock price has skyrocketed by 20 times, pushing its market capitalization to nearly $75 billion, with its stock entering the Nasdaq 100 index of leading technology companies.

Co-founder and chairman Michael Saylor took a risk to embrace digital currencies after Donald Trump’s election victory, despite concerns about potential threats from volatile crypto prices. MicroStrategy has now become a preferred choice among UK investors as the token’s value has surged.

Saylor’s strategic vision transformed the company into the world’s first “Bitcoin treasury company.” MicroStrategy’s relentless pursuit involves a cycle where issuing bonds to purchase Bitcoin drives up MSTR stock prices, leading to more bond offerings to acquire additional Bitcoin.

Interestingly, Saylor likened Bitcoin to Manhattan real estate in 1650 and emphasized the company’s commitment to quarterly Bitcoin acquisitions.

Critics argue that Manhattan real estate provides stable rental income and potential property value appreciation. However, Saylor focuses on BTC yield, a key metric tracked by MicroStrategy to monitor the ratio of Bitcoin holdings to the company’s stock.

While some may feel they missed the boat with Bitcoin reaching $100,000 in December, Saylor confidently stated that he would buy $1 billion worth of Bitcoin daily even at that price.

Portfolio manager Michael Lebowitz criticized MicroStrategy for essentially “ripping off investors,” citing increased optimism about Bitcoin and heightened stock price volatility.

MicroStrategy’s financial results showed a decline in total revenue and a significant increase in net losses in the third quarter of 2024. Despite this, the company became the top stock choice for UK investors through Interactive Investor.

By the end of December, MicroStrategy had invested $27.9 billion to acquire a total of 446,400 Bitcoins. This represented around 2% of the total Bitcoin supply and was valued at approximately $42 billion at that time.


This strategic approach significantly boosted MicroStrategy’s stock price by almost 400% in 2024, with Bitcoin’s value doubling within that year.

MicroStrategy’s inclusion in the Nasdaq 100 index was expected to accelerate the flywheel effect, as index-tracking ETFs would automatically purchase the company’s stock. This move was likened to Bitcoin entering the Nasdaq by industry analysts.

However, investors who bought in November might have witnessed a drop in value, as MicroStrategy’s stock price surged by 58% in November but declined over 20% in December.

In October, MicroStrategy unveiled plans to issue $21 billion in stock and bonds over the next three years to fund further Bitcoin acquisitions.


Shortly before Christmas, the company sought approval from shareholders to issue billions of additional shares, significantly increasing the number of Class A common stock.

MicroStrategy has become an attractive option for investors seeking exposure to Bitcoin without directly owning the cryptocurrency. Shares can be held through various accounts like Roth IRAs or ISAs.

Industry experts view MicroStrategy as a “Bitcoin agency,” catering to risk-tolerant investors seeking exposure to the cryptocurrency. The significant surge in Bitcoin prices, especially during specific periods, has further fueled interest in the company.

An essential component of MicroStrategy’s strategy involves issuing convertible debt with minimal or no interest payments. These instruments provide investors exposure to Bitcoin by converting into stock if the company’s value surges.

In December, MicroStrategy sold $3 billion in convertible notes without interest, convertible into stock at a premium above the stock price on the sale date.

Lebowitz cautioned that convertible note holders would profit only if the company’s stock price exceeds the conversion price upon maturity, potentially missing out on interest payments elsewhere.

MicroStrategy’s heavy reliance on Bitcoin holdings has led to the company being dubbed a leveraged Bitcoin holder, carrying significant risks in case of a market downturn.

Before embracing Bitcoin, Saylor faced a significant financial setback in 2000, losing billions of personal wealth in a day. MicroStrategy had to revise its earnings, leading to a steep decline in its stock price.

MicroStrategy is not alone in aspiring to benefit from the Bitcoin boom. Other players like Riot Platforms and Tesla have joined the trend, while Microsoft shareholders recently voted against adding Bitcoin to the company’s balance sheet.

Analysts have raised concerns about MicroStrategy’s vulnerability to Bitcoin price fluctuations, emphasizing the importance of Bitcoin’s sustained growth for the company’s success.

While Bitcoin enthusiasts believe in its resilience, the future of MicroStrategy’s strategy remains uncertain, particularly in the face of market volatility.

Source: www.theguardian.com

Bitcoin price surpasses $100,000 as Cryptocurrency interest surges following Trump’s win

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Bitcoin has surpassed $100,000 for the first time, reaching a new high amid a euphoric surge triggered by President Donald Trump’s election win.

The largest and most valuable cryptocurrency in the world, known for its market volatility, has been on the rise in recent weeks due to expectations of a new era of deregulation and supportive policies under the incoming administration.

On Wednesday, it hit a record high of $103,619, marking a 45% increase since Election Day. Other cryptocurrencies are also experiencing similar gains.

bitcoin graphics

“We are witnessing a paradigm shift. After four years of political purgatory, Bitcoin and the entire digital asset ecosystem are about to enter the financial mainstream,” said Mike Novogratz, founder and CEO of Galaxy Digital, a US cryptocurrency company.

“This momentum is driven by institutional adoption, advancements in tokenization and payments, and a clearer regulatory path,” he added.

President Trump has nominated crypto lobbyist Paul Atkins to lead the Securities and Exchange Commission (SEC), signaling a more favorable stance towards cryptocurrencies.

“Congratulations Bitcoiners!!! $100,000!!! You’re welcome!!! Together we will make America great again!” President Trump tweeted on his social media platform, Truth Social.

Reaching a six-digit price is a significant milestone for Bitcoin, which was created in 2008 and remains shrouded in mystery surrounding its creator Satoshi Nakamoto.

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Supporters see Bitcoin and the broader crypto space as the future of finance, although its volatile valuation and slow adoption for everyday transactions raise concerns.

“Bitcoin surpassing $100,000 signifies changing trends in finance, technology, and geopolitics,” said crypto analyst Justin Danesan based in Hong Kong.

“People who were once considered fantasy now exist in reality,” he added.

Trump, who once called Bitcoin a “scam,” has shifted his stance to a more supportive position, touting it as a symbol of free trade and innovation.

Atkins, the former SEC commissioner and crypto advocate, is seen as bringing a fresh perspective to digital asset regulation in the US.

“Atkins’ familiarity with the digital asset ecosystem can lead to new opportunities for US cryptocurrency innovation,” said Kristin Smith, CEO of the Blockchain Association.

Cryptocurrency stocks are on the rise alongside Bitcoin prices, with companies like MicroStrategy heavily investing in Bitcoin.

Trump has also announced his own virtual currency venture, World Liberty Financial, showing growing support for cryptocurrencies.

Source: www.theguardian.com

Review: Meta Quest 3S: The Ultimate VR Experience at an Affordable Price

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Meta’s latest virtual reality headset, the Quest 3S, offers almost all the features of the Top Model but at a more affordable price point of £290 (€330/$300/AU$500). This makes it around 40% cheaper than the Quest 3 and even cheaper than the 2020 Quest 2.

Positioned between the Quest 2 and Quest 3, the Quest 3S utilizes the same high-performance Qualcomm VR chip found in the Quest 3 while maintaining a similar design and feel to the Quest 2 to keep costs down.

Well-designed straps, rotating arms, and a well-cushioned faceplate make it easy to get a comfortable fit. Photo: Samuel Gibbs/The Guardian

The Quest 3S has adjustable straps, rotatable arms, and a foam faceplate that make it one of the most comfortable headsets for extended wear. Additional straps and faceplates are available for users seeking a customized fit.

Featuring speakers in the arm, the Quest 3S provides decent spatial audio, but users can also opt to connect Bluetooth headphones or use a USB-C headphone adapter for wired audio.

The Quest 3S boasts the same screen and lens as the Quest 2, delivering sharp images at up to 120 frames per second. However, the use of fresnel lenses with limited distance settings may lead to blurriness at the edges when looking around.

The headset comes with industry-leading hand controllers for precise and intuitive interactions. Photo: Samuel Gibbs/The Guardian

Two hand controllers, light and comfortable, feature capacitive buttons that respond to finger movements without accidental presses. Each controller uses a standard AA battery, with rechargeable options recommended for cost-effectiveness and sustainability.

The Quest 3S also includes spacers for glasses and offers prescription lenses for an additional cost.

Specifications

  • Screen: 120Hz LCD (1832×1920 per eye)

  • Processor: Qualcomm Snapdragon XR2 Gen 2

  • RAM: 8GB

  • Storage: 128GB or 256GB

  • Operating System: Horizon OS (Android)

  • Connectivity: WiFi 6E, Bluetooth, USB-C with Oculus Link, stereo speakers, microphone

  • Headset Dimensions: 191.5×102×142.5mm

  • Headset Weight: 514g

  • Controller Weight: 103g (excluding batteries)

Source: www.theguardian.com

Is the PlayStation 5 Pro upgrade worth the £700 price tag from Sony? | Games

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The PlayStation 5 Pro was announced in September, and people immediately reacted in disbelief at the £699/$699 price tag without a disc drive. Accounting for inflation, it’s the second most expensive console ever released, surpassed only by the PlayStation 3, which quickly dropped in price once it turned out no one wanted it. do a side job can afford one. This is an addition, not a replacement, to the original PS5 model. All games released so far will work on the Pro, and all future PS5 games will work on both models.

For your money, you get an upgraded GPU (graphics processing unit) that’s 45% more powerful overall than the original PS5. AI upscaling makes images more detailed. Advanced ray tracing improves lighting. Simply put, all PS5 games should look better and be faster.

My partner and I bought an extra disk drive last week to top up the 2TB of storage (additional cost is £100, but it’s currently out of stock). Context: I primarily play games on a Steam deck or Nintendo Switch, and I only see the difference between 30FPS and 60FPS. I appreciate gorgeous games – I was impressed with God of War and Ratchet and Clank on PS5 – but graphical performance isn’t that important to me. My partner, on the other hand, is a lifelong early adopter and PC gamer. very invested in his technology. This is our verdict.

https://www.youtube-nocookie.com/embed/6HaRMiTfvks?wmode=opaque&feature=oembed" title="PlayStation 5 Pro Console – Reveal Trailer" height="480" width="854" allowfullscreen="

The idea behind this console upgrade is to eliminate any compromises. The original PS5’s graphics options let you choose fidelity and performance: how good everything looks and how fast everything moves. Fidelity provides better lighting and detail for each scene, but at a lower frame rate. Choosing Performance will give you a higher frame rate and feel smoother while playing, but it will turn off some of the flashy lighting effects and detail. PS5 Pro removes the compromises and allows you to get more detail at higher frame rates.

Whether you can actually see this difference depends a lot on your TV. For example, if you don’t have a 4K TV, this console makes no sense at all. The difference may not be as big as you might expect, as most high-end TVs now have a number of built-in effects and features that smooth out frame rates and improve the look and performance of what you’re playing. yeah. Personally, as someone who hasn’t invested in any high-end technology, I can see and feel small but noticeable differences when comparing the same games on PS5 and Pro on a 4K TV. My partner finds the contrast more obvious because his eye for these things is better trained.

This lack of compromise is what tech-minded gamers expected from this generation of consoles in the first place, so it’s nice to finally see it. Indeed, I think the ideal customer for the PS5 Pro is someone who held off on purchasing a PS5 because they felt it was a poor upgrade from their PS4. Most people aren’t likely to play PS5 exclusive games like Spider-Man 2 or Horizon Forbidden West again just because they look a little better on the upgraded console. However, even if you’ve never played these games in the first place, you can now enjoy them at their best.




Sony’s attractive hardware design continues with PlayStation 5 Pro Photo provided by: Sony Interactive Entertainment

Speaking of gaming at its best, the console has a feature called PS5 Pro Game Boost that also boosts all 8,500+ backwards-compatible PlayStation 4 games. Some of PS4’s best games have already been remastered specifically for PS5, such as The Last of Us Parts I and II and Horizon Zero Dawn, but many games have yet to be remastered., has benefited greatly from this upgrade. The difference here is obvious to everyone.

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Sony typically releases these upgraded consoles right after the midpoint of the PlayStation’s lifespan, so you can assume that you’ll get three to four years of use out of the PS5 Pro before the PlayStation 6 arrives. As for whether it’s worth the money? If you already have a really good TV, like to use the latest technology, and haven’t played all the PS5 games worth playing yet, like my partner, You will be satisfied. It’s more of a convenience than a necessity. If you, like me, are hesitant about paying this much for a gaming console, rest assured you’re not missing out on much.

Source: www.theguardian.com

Dating Costs: Exploring the Price of Love and Who Foots the Bill

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Being vulnerable, open, and risking rejection come with a price when putting yourself out there. Today, that price can be substantial.

Beyond just the cost of drinks and dinner, you may have already invested hundreds of pounds in a dating site to secure a date before even starting the awkward dance of who foots the bill.

How much does the app cost?

While some dating services are free, many now offer attractive add-ons for a small fee to help you find more compatible connections, get noticed faster, and get more dates. We’ve looked into what the main ones offer.

crater




Tinder is free, but you can upgrade to a paid version “to enhance your Tinder experience,” according to the website.
Photo: Martin Bülow/AFP/Getty Images

Tinder is free, but you can upgrade to a paid version for an enhanced experience, with prices starting at £7 per month and going up to around £50 according to their press team.

There are three subscription tiers (Plus, Gold, and Platinum) offered at varying prices. Plus options range from £4.99 to £19.94 per month in 2021, gold ranges from £13.99 to £29.49, and platinum from £18.14 to £36.49.

Different users may be charged different prices based on factors like age, as revealed by a survey by a consumer group “Which?”.

hinge

The free version of Hinge allows eight likes and messages to matches per day. Two paid subscriptions promise double the dates.

Hinge+ costs £14.99 per week, £24.99 per month, £49.99 for three months, and £74.99 for six months.

HingeX costs £24.99 per week, £44.99 per month, £89.99 for three months, and £129.99 for six months.




With Gold membership, it takes an average of 3 months to find a partner and leave Muzz.
Photo: Mikhailo Polenok/Alamy

Source: www.theguardian.com

NVIDIA’s stock price drops as US ramps up antitrust probe

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Shares in AI chip designer Nvidia have been falling overnight following reports that US authorities are stepping up an investigation into whether the company has violated competition laws.

The company’s shares fell 2.4% in after-hours trading, supplementing a fall of nearly 10% in regular trading, sending its market capitalisation down by $279bn (£212bn) to $2.6trn, the biggest one-day fall ever for a US company.

Bloomberg reported that overnight, the Department of Justice sent subpoenas to Nvidia and other tech companies, taking steps to legally compel recipients to hand over information.

Nvidia executives are said to be concerned that the company is making it difficult for customers to switch to other semiconductor suppliers and penalizing buyers that refuse to give them exclusive use of Nvidia’s AI chips.

The moves mark an intensification of the U.S. antitrust investigation and bring the government one step closer to filing formal charges against Nvidia.

Tuesday’s sell-off came amid a market-wide sell-off sparked by weak U.S. manufacturing data that raised broader concerns among investors about the outlook for the U.S. economy. Manufacturing contracted at a moderate pace in August, with new orders, production and employment levels declining, according to the Institute for Supply Management’s monthly survey of factories.

That sent the S&P 500 down more than 2%, while the tech-heavy Nasdaq Composite Index fell nearly 3.3%. Uncertainty spread to Asia, where Japan’s Nikkei fell 4.2% on Wednesday and Australia’s S&P/ASX 200 index fell 1.9%.

This has exacerbated recent volatile trading for Nvidia and other AI-related stocks, including Google, Apple and Amazon, as investors worry that the real impact — and tangible benefits — of the much-touted AI revolution may still be a long way off.

Founded in 1993, Nvidia primarily designed chips for video games, but during the cryptocurrency boom it realized its processing technology could be used to mine digital coins. Since then, the company has shifted its focus to artificial intelligence, riding a new wave of excitement about the potential of large-scale language models.

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The company last week reported a 122% increase in second-quarter revenue, but signs of slowing growth, especially around its next-generation AI chip, code-named “Blackwell,” have spooked investors.

An Nvidia spokesman said: “We win on merit, as reflected in our benchmark results and value to customers, so they can choose the solution that’s best for them.”

Source: www.theguardian.com

Microsoft surpasses sales expectations, yet stock price dips due to slow growth in cloud services

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In its latest quarterly earnings report, Microsoft exceeded analysts’ expectations by reporting a 15% increase in revenue year over year on Tuesday. However, growth in Azure, the company’s flagship cloud-computing service, fell short, leading to a 7% drop in Microsoft shares during after-hours trading.

Expectations for solid growth in the fourth-quarter earnings report were high, especially driven by cloud services with predicted revenue growth of 29%, which was expected to be between 30% and 31%. This led to a decline in stock prices for major technology companies due to recent market challenges.

During the Microsoft Earnings Report, CEO Satya Nadella aimed to instill confidence in the company’s performance.

Nadella stated in the earnings call, “This year’s strong performance demonstrates our innovation and the ongoing trust our customers have in Microsoft. As a platform company, we prioritize meeting our customers’ mission-critical needs at scale while leading in the AI era.”

Microsoft’s significant investments in artificial intelligence in recent years reflect a strategic move to dominate the tech industry with AI-enabled services. Backing ChatGPT developer OpenAI solidifies Microsoft’s position as a key player in commercializing generative AI.

Despite the growing questions surrounding the revenue potential of big tech companies’ pivot to AI, other factors like speculation about a Federal Reserve rate cut have helped calm investors as enthusiasm for big tech fades after a period of rising stock prices driven by AI optimism.

Microsoft faced challenges this month amid a global technology outage caused by a flawed software update from cybersecurity firm CrowdStrike affecting Windows systems. An unrelated outage on Microsoft’s Azure cloud service on Tuesday also caused network connectivity issues in multiple countries.

Source: www.theguardian.com

Despite price cuts, Tesla experiences second consecutive quarter of sales decline

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Despite price cuts and low-interest financing offers, Tesla’s global sales have declined for two consecutive quarters, indicating weakening demand for its products and electric vehicles in general.

The company, based in Austin, Texas, reported sales of 436,956 vehicles from April to June, a 4.8% decrease from the same period last year. While this beat analyst expectations of 436,000 units, the demand for electric vehicles is slowing globally, with Tesla facing more challenges due to its older model lineup and higher prices.

Despite the decline, Tesla remains the top-selling electric car maker in the world, selling over 910,000 cars in the first half of the year. The company also managed to sell more vehicles than it produced in the second quarter, leading to reduced inventory levels.

Tesla’s sales decline comes amidst increased competition from other automakers, both established and emerging, aiming to gain market share in the EV industry. The company is set to report second-quarter earnings on July 23.

While sales were primarily driven by the Model 3 and Model Y, the more expensive models like the X, S, and new Cybertruck saw limited sales. Price cuts introduced by Tesla in April did not prevent the sales decrease, with the company also reducing the price of its “full self-driving” system during the quarter.

Analysts attribute Tesla’s sales challenges to the saturation of early adopters owning EVs and skepticism among mainstream buyers about EV capabilities. The company’s minimal model lineup changes and price cuts leading to decreased used car prices have impacted its sales performance.

Analyst Dan Ives views the second-quarter sales as a positive turnaround for Tesla, suggesting that the company’s cost-cutting measures have improved its profitability. While Tesla expects slower revenue growth this year, the outlook for the company seems optimistic following the recent sales performance.

Source: www.theguardian.com

Luigi’s Mansion 2 HD Review: A Spooky Sequel with a Shocking Price Tag

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MaWhat I love most about Luigi’s Mansion are the little details: the way Mario’s timid little brother nervously hums along to the music as he stumbles through the spooky mansion; the slapstick animations when he falls into a fireplace or gets blasted into a secret room on a foldout bed; the laughs and goofy expressions on his face as the ghosts start to play tricks on you. As you use Luigi’s trusty ghost vacuum to flip up carpets to reveal secret trap doors (or secret spiders) and suck up bills and gold coins hidden throughout, you can’t help but notice how every little sound, scene and secret has been carefully placed to give you little moments of joy.

This ghost-busting puzzle game was a very welcome surprise sequel when it launched for the Nintendo 3DS in 2013. Its diorama-like mini-mansions and peepholes gave Nintendo’s artists ample opportunity to show off the console’s stereoscopic 3D effects, enabled by a small slider on the side of the screen. But now, 11 years later, the game has launched on the Switch and two things have changed. First, the 3D effect it was designed around is no longer there, and second, Luigi’s Mansion 3 is here and it’s vastly improved.




Luigi’s Mansion 2 HD. Photo: Nintendo

Considering Luigi hasn’t made a single spooky film in a decade now, it’s hard to begrudge him a graphically improved remake. But Nintendo has priced Luigi’s Mansion 2 HD at almost £50, which is especially infuriating when you consider it wasn’t much more expensive to begin with. It looks better – the interiors of all five mansions have been revamped, with impeccable detail on everything from sofas and spider webs to armour – but it plays exactly the same, broken up into mini-missions that interrupt the flow of the game and take Luigi out of the creepy abode he’s exploring at 10-minute intervals, and back to paranormal investigator E. Gadd’s laboratory.

Gadd is constantly calling Luigi on his little flip phone, which is very cute, but also distracts from the gameplay. While many Nintendo games suffer from too many tutorials for the first hour or two, this game has these interruptions from start to finish, making it hard to enjoy leisurely exploration. It’s not a scary game, but it would be better without the constant chatter. Maybe the levels needed to be broken down like this to fit the game on the tiny 3DS cartridge, but it feels dated now. Another irritation is the multiplayer, where two people can’t play together on the same console. Unlike Luigi’s Mansion 3, you can’t play with your child or partner.

Structural quibbles aside, there’s no disputing Luigi’s Mansion 2’s design is sound: the puzzles are great, the ghost combat is fun and clever, and the attention to detail creates an abundance of endearing moments, but Luigi’s Mansion 3 delivers on all of that. and For the same price, you get even more attractions: you can explore a haunted hotel without being interrupted by anything but poltergeist activity;

Source: www.theguardian.com

Tesla experiences decrease in sales following a tumultuous week and global price reductions.

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Tesla has reduced prices on three of its five models in the U.S. and globally, including in China and Germany, due to declining sales, a Cybertruck recall, and increasing competition in the electric vehicle market. The price cuts have affected the Model Y, Model X, and Model S, while the Model 3 and Cybertruck prices remain unchanged.

The Model Y now starts at $42,990, the Model S at $72,990, and the Model X at $77,990 following the price reductions. Tesla also slashed the price of its “fully self-driving” software in the U.S. from $12,000 to $8,000.

In China, the starting price of the updated Model 3 was reduced by 14,000 yuan ($1,930) to 231,900 yuan ($32,000). Meanwhile, in Germany, the price of the rear-wheel-drive Model 3 dropped to 40,990 euros ($43,670.75) from 42,990 euros.

The price cuts extend to many other countries in Europe, the Middle East, and Africa, as Tesla tries to boost sales following a decline in global car deliveries in the first quarter of the year.

The series of price reductions come amidst challenges for the company, including a Cybertruck recall due to issues with the gas pedal. This incident has added to Elon Musk’s recent troubles, with Tesla stock dropping and criticism from investors mounting.

Analysts are awaiting the release of the Model 2, a smaller electric car expected to cost around $25,000. Reports of Musk canceling the project have created uncertainty, but he has denied these claims.

Tesla is set to announce its first quarter results soon, with expectations of a significant drop in sales compared to the previous year, marking the first decline in quarterly sales in about four years for the company.

Contributed by Kari Paul report

Source: www.theguardian.com

Bitcoin Halving: An Explanation of its Impact on Price

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Satoshi Nakamoto, the anonymous creator of Bitcoin, still wields influence over the cryptocurrency almost 14 years after vanishing.

This week, a protocol crafted by Nakamoto (an individual or group that went silent in December 2010) will trigger the “Bitcoin halving,” which has historically been tied to price increases. The upcoming halving is set to occur this Saturday.

Here’s a breakdown of what the Bitcoin halving entails and its potential ramifications.

What is Bitcoin halving?

It revolves around how Bitcoins are recorded and generated. Cryptocurrency transactions are recorded on a public ledger called the blockchain. These transactions are grouped into blocks by “miners,” solved, and linked. Miners use specialized hardware to solve cryptographic puzzles and, crucially, receive rewards in newly minted Bitcoins.

Nakamoto’s goal was to cap the total number of Bitcoins at 21 million, so the protocol adjusts to limit the influx of new coins into the market. This is accomplished by halving miners’ rewards every 210,000 blocks, approximately every four years.

The imminent halving is slated to take place early Saturday in the US and UK, reducing the reward for adding a new block to the blockchain from 6.25 Bitcoins to 3.125 Bitcoins. Bitcoin, currently with over 19 million coins in circulation, will continue halving until an estimated 21 million by 2140.

What impact will it have on the price of Bitcoin?

A halving leads to a decrease in the supply of new Bitcoin, potentially raising its price. It’s an economic principle that a decrease in supply with stable demand should drive up the price of an asset.

Data from 10x Research shows that the average prices following the past three halvings (2020, 2016, 2012) increased by 16% in the subsequent 60 days. The 2016 halving initially saw a 6% dip but then rebounded strongly in 2017.

Experts suggest that halvings usually lead to rising prices due to reduced supply, with a peak typically occurring around 500 days post-halving. However, markets have already factored in the halving, and significant price hikes aren’t expected immediately after.

Are there any negative effects?

Bitcoin mining companies, which bear energy and equipment costs to validate transactions, may face financial strain as rewards shrink.

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Andrew O’Neill, managing director of digital assets research at S&P Global, notes that halving the block rewards can impact miners’ profitability significantly, leading to potential closures of unprofitable businesses.

For Bitcoin mining to be economically sustainable, broader adoption across the global economy is required to boost miners’ earnings from transaction fees. However, concerns are rising about the environmental unsustainability of energy-intensive Bitcoin mining.

Critics fear that amateur investors may be drawn into price spikes and hype surrounding the halving, adding another layer of negative impact.

Source: www.theguardian.com

Lyft CEO takes responsibility for typo in financial results that led to 60% rise in stock price

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Lyft performed well in the fourth quarter, exceeding profit expectations due to increased rides to stadiums and airports and significant cost savings.

However, the company’s stock price initially rose over 60% in after-hours trading, but most of those gains were erased after Lyft’s chief financial officer corrected a major error in its earnings report. The company had initially predicted growth of 500 basis points (5%) in 2024, but later announced that the actual growth rate was lower at 50 basis points (0.5%). In 2023, the stock price had risen by about 36%.

Lyft CEO David Risher acknowledged the mistake, saying in an interview the following day: bloomberg“Bad. This was a terrible error, but there was one zero.”

Lyft reported that stadium attendance increased over 35% from 2022, driven primarily by popular tours and sporting events. The company also highlighted improvements to airport transportation as contributing to its growth.

Under new leadership, Lyft implemented an aggressive restructuring plan last year, including staff cuts and the removal of management to pursue profitability. The company laid off 1,200 employees in April and reduced overall costs by 12%.

“We’re going to put more money into the bottom line because we can scale even further and keep costs flat,” Risher said.

Lyft also announced a new policy to pay drivers the difference if their income, after outside fees, is less than 70% of what a passenger pays. In addition, Lyft and Uber agreed to pay $328 million to a New York rideshare driver accused of withholding pay and benefits.

There are growing concerns about safety, job security, and the general fear of artificial intelligence with regard to self-driving cars. Lyft is addressing this by partnering with Motional to provide more than 100,000 self-driving rides across the United States.

Revenue for the quarter ended Dec. 31 was $1.22 billion, in line with analyst expectations. The company expects earnings before interest, taxes, depreciation, and amortization to be between $50 million and $55 million for the quarter, exceeding expectations of $46.3 million. Lyft’s fourth-quarter adjusted core profit was $66.6 million, also beating expectations of $56.2 million.

Source: www.theguardian.com