Microsoft and Apple find common purpose as they gang up on Google

Apple versus Google in mobile warsHead on over to the official Google blog and you’ll find a very interesting article posted yesterday (August 4th 2011) entitled “When Patents Attack Android” that went on to spark a very pubic and very bitter argument  between the technology giants.

Chief Legal Officer at Google, David Drummond, used the original post to launch a highly critically attack on Microsoft, Apple & others for buying up mobile technology patents with the direct intention of limiting innovation and forcing up prices for handsets using the Android operating system.  In Drummond’s own words

“Android’s success has yielded…a hostile, organized campaign against Android by Microsoft, Oracle, Apple and other companies, waged through bogus patents”

This is what seems to have happened.   A group of companies (Rockstar) led by Apple and Microsoft have acquired a number of old patents previously held by Novell & Nortel that cover mobile operating software.  They were purchased for the princely sum of $4.5 billion, 5 times more than the pre-auction estimate.  A hefty investment and one seemingly made to inflict maximum pain on Google’s ambitions for the mobile space.

In doing so they are now able to levy a $15 licensing fee against every handset that uses the Android system.  They’re taking violations of these patents very seriously and have already launched suits against Samsung, HTC and Motorola.

Google have hit back and called upon the US Department of Justice to look into this purchase citing it as anti-competitive.   Google claim that the Rockstar group are both stifling innovation and limiting consumer choice and that rather than competing “by building new features or devices, they are fighting through litigation“.

At this point  Microsoft’s General Counsel Brad Smith disputed Drummond’s version on the Novell patent issue on Twitter.

“Google says we bought Novell patents to keep them from Google. Really? We asked them to bid jointly with us. They said no,” Smith tweeted in response to the blog.

And so it seems to go on with executives from both sides taking shots at each other over the issue.  But with the mobile market continuing to expand and the prize of dominating the (non-Apple) mobile OS space being granted to the winner of this fight we think it’s going to get much worse for both sides.

To read the original Google blog post go to

http://googleblog.blogspot.com/2011/08/when-patents-attack-android.html

 

 

 

 

Has Android killed the video games star?

As sales of Android powered smartphones soar across the globe, Nintendo announces drastic cuts to it’s profit outlook and slash the cost of the new 3DS by up to 40%.   Has the Google effect finally hit the video gaming mark?Image of Nintendo 3DS

In a striking reversal of fortune for the world’s largest video game maker, Nintendo drastically cut its annual profit outlook on Thursday and said it would deeply discount its new 3DS hand-held device as it struggles to stem a flow of users to casual gaming across other platforms such as smartphones and tablets.

On August the 12th , Nintendo will cut the price of the 3DS, introduced in March, by 40 percent in yen and 32 percent in dollars, a remarkable drop so soon after a game system’s debut.

Nintendo said it lost 25.5 billion yen  in the three months that ended June 30, the first quarter of its fiscal year, as sales plunged 50 percent from a year earlier. The loss prompted Nintendo to lower its annual profit forecast 82 percent, to 20 billion yen ($257 million) for the year ending in March, down from a previous estimate of 110 billion yen. The company also slashed its annual sales forecast by 18 percent, to 900 billion yen.

The gaming giant had been looking to the 3DS, its first major innovation since the launch of the revolutionary Wii home console, to propel them back to the heady days of the success they achieved with the console so memorably advertised by Jamie Redknapp!  This hand-held machine lets users play games that appear in 3-D, without the need for the weird geek-boy glasses that accompany most current 3-D technology.

But sales of the 3DS — which went on sale in February in Japan and in March in other parts of the world — have fallen short of expectations, hurt partly by the device’s worldwide release date, just after the devastating earthquake that struck Japan in March.  However, this isn’t the root of the problems.

Nintendo have been badly hit by the huge up turn in sales of the Android powered smartphones that are being purchased in such large numbers that Samsung overtook Apple in terms of sales in Q2 of this year.

Smartphones that run Google’s Android operating system are the perfect platform for causal gamers to play instantly downloadable games and critically don’t require gamers to carry multiple devises as they travel.     Smartphones also allow users access to games played within social networks like the now ubiquitous Farmville.

Yes, the 3D technology is amazing and Nintendo have produced another revolutionary product but unlike the Wii this handheld is facing massive competition on multiple fronts.  Will casual gamers invest in this technology when smartphones are delivering a good (if not great) experience but critically a massive choice of available games, many of them free?    So with cost, portability and gaming choice already stacking up against the 3DS, do Nintendo have any choice but to slash prices?

Nintendo has dominated the last generation of consoles with the Wii  but for now, players complain of a lack of games for the 3DS, a problem that plagues most new systems. Nintendo said Thursday that two flagship titles for the 3DS — Super Mario 3DLand and Mario Kart 7 — would go on sale in November and December. The releases are expected to improve sales of the device.

But unless more consumers start buying the 3DS soon, third-party developers could be discouraged from making games for it, leading to a vicious cycle of fewer games released and fewer 3DS units sold.

Nintendo is hoping that the steep price cut will help drive sales. From August the 3DS will cost 15,000 yen in Japan, down 40 % from the original price of 25,000 yen.

In a letter posted online, Satoru Iwata, Nintendo’s president and chief executive, offered a profuse apology to Nintendo users, saying that lowering prices so soon after a game machine’s release was a painful move.

“Never in Nintendo’s history have we lowered prices to such an extent, less than half a year since the product launch,” Mr. Iwata said. “But we have judged that unless we move decisively now, there is a high possibility that we will not see many of our customers enjoying a Nintendo 3DS.”

Amazon launch their Android Appstore with rumour of exclusive Call of Duty app.

Angry birds at Amazon imageIt would appear that Amazon are using all of their normal market busting tricks as they launch their Android Appstore.   Loss leaders and exclusive releases are being used by the retail giant to secure their position as top of the pops in the Android marketplace.

The store opens next month but news of their proposed pricing and exclusive products were leaked by Androidnews.de  yesterday who picked up on a prematurely published page at the Amazon website.

The page was briefly seen at amazon.com/apps but as expected it’s since disappeared whence it came.  Our friends at Androidnews.de did manage to take a few screen shots first though!

 

We’re all aware that they’ve already secured the exclusive launch of  Angry Birds Rio. But news is that our favourite megastore has secured four other exclusive titles, including Call of Duty: Modern Warfare Force Recon to celebrate the launch.  Angry birds and angry boys; what more could we Levellers want!

It’s no surprise that Amazon are going to be offering some amazing deals, but it would appear that they’re pulling their normal tricks of undercutting the competition by offering a selection of loss leaders on popular apps, in essence offering them for less than the developers are selling them for.   The developers have no need to worry though as Amazon will still reward them with the commission set at the non discounted price.

There’s still no official launch date for the Appstore but we can’t wait to see what they’ll have on offer for us.  Anything that opens up the app market and helps chip away at the power of Apple’s impenetrable walled garden is good, good thing!

To read the original article go to; http://www.androidnews.de/amazon-appstore-apps-prices-leak