Less than 1 percent of Netflix’s subscribers are playing its games

Netflix’s entry into the gaming market is off to a slow start. According to an analysis performed by Apptopia on behalf of CNBC, the streaming giant’s games have been downloaded a total of 23.3 million times and average about 1.7 million daily users. Put another way, less than one percent of Netflix’s 221 million customers are taking advantage of the games included in their subscriptions.

Netflix did not immediately respond to Engadget’s request for comment. In the past, the company indicated it did not expect its gaming division to be profitable immediately. “We’re going to be experimental and try a bunch of things,” Netflix COO Greg Peters told investors during the company’s fourth-quarter earnings calls last year.

Still, the question that’s probably on everyone’s mind is how long Netflix is willing to wait to see if it made the right bet, especially after it lost nearly one million subscribers during its most recent quarter. Other lofty bets — like the company’s in-house fan blog, Tudum — were the subject of cutbacks after only a few months of spending.

The company has shared precious few details on how much it has spent expanding its portfolio beyond TV shows and movies, but most signs point to a significant investment. Earlier this year, the company paid $72 million to acquire Next Games, the studio behind Stranger Things: Puzzle Tales. More recently, it secured exclusive mobile rights to beloved indie titles like Spiritfarer and Into The Breach. The company is unlikely to make similar investments in the future if its current ones don’t pan out.

Amazon is buying iRobot, the creator of the Roomba robot vacuum

Amazon just took a big step toward cornering the market for household robots. The company has reached a deal to acquire iRobot, the creator of Roomba robot vacuums. The purchase is worth $1.7 billion in cash and will maintain Colin Angle as iRobot’s CEO. The two firms didn’t say when they expected the deal to close, but that will depend on the approval of both iRobot shareholders and regulators.

In announcing the deal, Amazon didn’t outline its exact plans. Amazon Devices Senior VP Dave Limp focused on iRobot’s ability to “reinvent how people clean,” and said he looked forward to inventing products. Angle said Amazon shared iRobot’s “passion” for innovative home products and felt the internet giant was a good fit.

A successful merger will end 32 years of independence for iRobot. The company was founded in 1990 by MIT researchers, and initially focused on military robots like PackBot. It marked a major turning point in 2002, when it unveiled the first Roomba — the robovac quickly became popular and racked up sales of
a million units by 2004. The company expanded its lineup to include products like robotic mops (Braava), and became so successful that it sold its military business in 2016.

iRobot has faced a rough few months. While it generally fared well in recent years, the company posted a loss in its latest quarter and saw both its revenue and cash reserves shrink. It also warned of weaker growth due to the potential impact of inflation and reduced customer demand in the wake of Russia’s invasion of Ukraine. The company was hopeful that it could get back to profitability and even outperform its past expectations, but it might not have to worry as much with Amazon’s help.

The deal could up-end the household robotics market. iRobot has fierce competition these days, including Anker’s Eufy brand, Neato, Roborock, Shark and Wyze. Amazon would not only give iRobot more resources to fend off rivals, but much stronger marketing — it’s safe to presume Amazon would promote iRobot products over the alternatives. As it stands, Amazon could use the acquisition to fuel projects like its Astro companion or a growing legion of warehouse robots.

SoundCloud is laying off up to 20 percent of its workforce

SoundCloud is joining the depressingly long list of companies in the tech industry that are letting personnel go due to the economic downturn. According to Billboard and Variety, company CEO Michael Weissman told employees in an email that it’s “making reductions” to its global team that will impact up to 20 percent of SoundCloud. Weissman said the move is necessary “given the challenging economic climate and financial market headwinds.” Further, the layoffs and the prudent financial decisions the company had recently made apparently put it on the path to sustained profitability.

A spokesperson has confirmed the job cuts to Billboard, adding that SoundCloud is providing support to employees who have to exit the company. The online audio distribution platform last laid off a significant chunk of its workforce — 40 percent in all — back in 2017, when it was struggling financially. As Billboard notes, SoundCloud has secured hundreds of millions of investments and has announced its first profitable quarter in 2020 since then. 

In 2021, the company introduced a listener-based royalties model that could lead to better pay for indie artists, since subscribers’ payments go straight to the artists they listen to. Warner Music Group recently adopted the model, becoming the first major label to do so. SoundCloud also purchased an AI music curation company called Musiio in May to help users find hidden gems before they make it big. Musiio’s technology listens to songs, tags them and then inserts them into appropriate playlists. 

SoundCloud’s LinkedIn profile says it has 1,707 employees, but that doesn’t always reflect the real number of workers in a company. Weissman told staff members in his email that the layoffs will affect employees in the US and the UK, who will be notified in the coming days.

Update 08/04/22: Clarified that the layoffs could added “up to” 20 percent of the company’s workforce.

Nintendo’s Switch sales drop as it contends with chip shortage

Nintendo’s Switch sales fell significantly last quarter, dropping to 3.43 million units compared to 4.45 million during the same period last year, according to its earnings report. Software sales also fell to 41.4 million units compared to 45.3 million year over year. All that that resulted in an operating profit of 101.6 billion yen ($763 million), down from last year and short of what was expected. 

The company chalked up the Switch sales issue to a parts shortage, the same thing that bedeviled Sony during the same quarter. “Hardware production was impacted by factors such as the global shortage of semiconductor components, resulting in a decrease of hardware shipments,” the company said. It noted that the OLED model made up a large chunk of Switch sales with 1.52 million units sold, and the lower margins on that model dragged profit down a bit.

While game sales also dropped, Nintendo managed to boost the overall percentage of first-party games sold. In fact, it was the second best first quarter for first-party game sell-through since the Switch launched — second only to Q1 2021, which was fueled by Animal Crossing: New Horizons. All told, however, Nintendo would have to call the quarter a success considering that game buyers spent 13 percent less this year compared to 2021, according to Bloomberg. 

Some of that was aided by the launch of three key games, the company pointed out, particularly Nintendo Switch Sports which arrived on April 29th. Mario Strikers: Battles League launched on June 10th, while Fire Emblem Warriors arrived on June 24th. “More than 100 million users played Nintendo Switch in the latest 12-month period,” the company added. 

Nintendo is hoping that upcoming games will help out next quarter. Xenoblade Chronicles 3 just launched, Mario Kart 8 Deluxe – Booster Course Pass: Wave 2 arrives on August 4th, Splatoon 3 will be released on September 9th and you’ll see Kirby’s Dream Buffet sometime this summer. The company is also launching an OLED Switch Splatoon 3 Edition on August 26th. 

Sheryl Sandberg officially steps down as COO of Meta

It’s the end of an era at the company formerly known as Facebook. Sheryl Sandberg has officially stepped down as Chief Operating Officer on August 1st, as revealed by a SEC filing noticed by TechCrunch. In the filing, Meta said Javier Olivan is now the company’s COO and that Sandberg will only remain an employe until September 30th. After that and going forward, Sandberg will serve as a member of Meta’s Board and will receive compensation as a non-employee director. 

Sandberg first announced that she was leaving her role as COO of Meta after 14 years in early June. Mark Zuckerberg revealed at the time that Olivan will take on the COO role, but that his responsibilities will be different from Sandberg’s. Olivan will have a “more traditional COO role where [he] will be focused internally and operationally, building on his strong track record of making our execution more efficient and rigorous,” the company CEO said. 

As The Wall Street Journal noted in a piece about Sandberg back in June, she joined Facebook in 2008 and led the business side of the company, allowing Zuckerberg to focus on engineering work. In more recent years, she became the face of the social network when it comes to leading public response to controversies, such as the Cambridge Analytica scandal.

Before Sandberg announced her departure, The Journal reported that the Meta COO used company resources to help kill negative reporting about Activision CEO Bobby Kotick, who she was dating at the time. In mid-June, the publication also reported that Meta’s lawyers are investigating Sandberg’s use of the company’s resources and employees for her foundation and to promote her book Option B. 

Sandberg is leaving the company just as it has started preparing for “serious times.” In a meeting with employees, Zuckerberg revealed that Meta is experiencing “one of the worst downturns [it has seen] in recent history.” As a result, Meta had to slash its target number for new engineers this year. In addition, company leadership reportedly told managers to identify poor performers and to “move to exit” them if they can’t get back on track. 

30年で所得は倍増・出生率は半減の韓国。急激な金利上昇で住宅ローンが払えず、産休切り上げで働く家庭も – 斗比主閲子の姑日記

私はここ5年ぐらい韓国を注目しています。 理由は、日本の隣という地理的要因、文化も近く、言語はSOVの順と非常に親しみがある一方で（韓国語の習得は英語・中国語の習得と比べると驚くほど容易です）、1990年から約30年で所得が倍増し、日本を上回り、合計特殊出生率は同期間で1.6から0.8に半減し、日本を下回っている…

Microsoft negs Activision Blizzard to push through $68.7 billion acquisition

Microsoft is taking an interesting approach to secure regulatory approval for its acquisition of Activision Blizzard. In a recent filing spotted by Rock Paper Shotgun, the company told New Zealand’s Commerce Commission the troubled publisher produces n…