Video game developer Electronic Arts announced on Monday that it has acquired social-gaming company Playfish, paying $275 million in cash and $25 million in "equity-retention arrangements." Playfish also is entitled to up to $100 million if it meets performance milestones by December 31, 2011.
EA also announced later Monday that it planned to eliminate 1,500 jobs, or about 17 percent of its workforce, as part of a plan to reduce annual costs by about $100 million.
The acquisition of Playfish falls in line with EA's desire to be more than just a developer for traditional gaming platforms, like consoles and the PC. The company said in a statement that the acquisition "strengthens its focus on the transition to digital and social gaming."
Thanks to the explosive growth of social networks and games made for those platforms, Playfish is enjoying strong performance in the social-gaming space. The company has more than 150 million games installed on several platforms, including Facebook, MySpace, the iPhone, and Android-based devices. According to Playfish, more than 60 million active players per month are playing titles. Its Facebook titles include Pet Society, Restaurant City, and Country Story--all three are among the most-popular games on the social network.
The EA Interactive division, which Playfish will join, has done a fine job of capitalizing on the trend of online and mobile gaming. That division includes Pogo, one of the top casual-gaming sites on the Web. The Mobile side of EA Interactive has captured 34 percent market share in the U.S. with the help of Madden NFL 10, The Sims, and Tetris.
Updated at 10:20 p.m. with details of job cuts.
Microsoft's competition might be looking for a silent contender, but they won't find it in CEO Steve Ballmer. Rather than relying on the software giant's marketing professionals to dish dirt on competitors, Ballmer does it himself. And he does it quite often.
On Tuesday, Ballmer had some interesting things to say about Google and its upcoming Chrome operating system.
Steve Ballmer fielding a question from Fortune's Geoff Colvin.
(Credit: Screenshot by Ina Fried/CNET)Speaking in an onstage question-and-answer session following his speech at the Worldwide Partner Conference in New Orleans, Ballmer told those in attendance that he doesn't "know if Google can't make up their mind or what the problem is over there...The last time I checked, you don't need two client operating systems."
Ballmer couldn't quite stop himself there. He had a few more interesting things to say about Chrome OS.
"Who knows what this thing is?" Ballmer said. "To me, the Chrome OS thing is highly interesting--it won't happen for a year and a half, and they already announced an operating system (Android)."
With all those zingers flying around, it made me start remembering other instances in which Ballmer has taken a company or product to task. So I decided to search Google for all results matching "Ballmer disses." Amazingly, the search returned more than 125,000 results.
Microsoft's CEO likes to hit the competition with some pretty tough comments. Here's what he's had to say about some of his most prominent competitors over time.
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A report surfaced on Monday claiming that the new Acer Aspire One Netbook featuring Android will start shipping in August. The price of the Netbook is still unknown.
The computer reportedly will have the Google mobile operating system installed but will be configured as a dual-boot system, also shipping with Microsoft's Windows XP.
In June, just a few days after Acer announced that an Android-based Netbook would hit store shelves, the company told Digitimes that deploying a dual-OS strategy was in its best interest.
"(Acer Chairman) Wang pointed out that the dual-OS strategy is much safer for Acer, since consumer acceptance of the Android platform is unclear for the time being," DigiTimes reported. "Acer will be able to promote Android as a value-added feature, similar to Asustek Computer's Express Gate, to account for any price premium."
It's an interesting decision. To hedge its bets, Acer has decided that consumers wouldn't want an Android-only Netbook. So if you're looking to buy one of these computers, you'll have two operating systems from which to choose. Which OS would you pick?
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Netbooks are helping boost the PC market as it continues to slide with the economy, but it's only a matter of time before something precipitates a market upturn.
Thanks to the announcement of the Archos 9 PC Tablet on Wednesday, there's even more evidence helping fuel speculation that touch screens can transform the Netbook experience from basic computing into multitouch bliss.
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Touch screens are undoubtedly popular in the mobile market, but they have yet to break through in the computing space. Will they be as revolutionary for PCs as they have thus far been for smartphones?
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The Sony Walkman X-Series.
(Credit: Sony)Remember the Sony Walkman? It was, at one time, the iPod of its day. No other portable media player was capable of competing against the Walkman. Everyone wanted to get their hands on Sony's stellar device. And every year, when Sony would tweak it just a little bit, we all jumped at the chance to buy the latest and greatest Walkman.
But today, the Walkman is just an also-ran. Apple's iPod is dominating the business. With a firm grip on the market, there's currently no sign that Apple will be relinquishing its lead in the PMP space anytime soon. But Sony hasn't given up.
According to Engadget, the Japanese electronics powerhouse is planning to release an Android-based Walkman next year.
It makes sense. Rumors have been swirling since 2008 that its Sony Ericsson joint venture would be releasing an Android-based handset. Why wouldn't Sony also consider Google's mobile operating system for the Walkman?
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Speaking before an audience in Tokyo Tuesday, Chief Executive Michael Dell dropped a few hints that his company might be looking to release a smartphone.
"For the last three years, we have integrated 3G radios into our notebooks," said Dell. "We already have agreements with many mobile carriers around Netbook devices, so it wouldn't be unreasonable to expect that we would have smaller mobile Internet devices or smartphones in the future."
I don't think Dell can simply start selling small computers, call them smartphones, and expect to be successful. As a company that missed quite a few trends in the market and one of the last to stop selling Pocket PCs, Dell has to carefully prepare for some of the issues that await it if it does release a smartphone.
... Read moreAlthough some want to do it, we can't compare the G1 to the iPhone. Sorry, but it's just not there yet.
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Quite a bit has been made lately over Apple's treatment of developers who want to create apps for the iPhone and iPod Touch. The company has consistently played games with developers by keeping them in the dark and ensuring that each time an app is rejected they're given as little information as possible.
Of course, this doesn't come as a surprise to those of us who have followed Apple all these years. The company has always been suspect of third-party developers and has consistently failed to do the right thing even when it's faced with a PR firestorm. After all, if the mainstream doesn't pay attention, who cares?
But it's that kind of mentality that could get Apple into trouble. Sure, it worked fine for the company with Mac OS X and it has every right in the world to stop apps from getting into its store if they're undesirable, but that doesn't stop the onslaught of complaints that Apple is acting in a way that's more than a little "wrong."
Let's see if I can capture the main points. First, Apple announced that the first iPhone wouldn't have third-party apps. It took almost a year for the company to come around and finally let third-party developers create apps for its follow-up. But once that happened, all hell broke loose.
First, developers repeatedly made claims that Apple's excessive restrictions were out-of-hand, only to be followed once the App Store launched with a few notable removals from the store, including Nullriver's NetShare and Box Office.
Since that time, Apple has stayed quiet on what it takes to gain entry into the App store, the company has given poor reasons why it won't accept apps, and now it's believed that Apple's rejection letters are covered under its non-disclosure agreement, which means developers won't be able to help each other gain admission to the store.
All the while, developers across the globe are wondering why they thought Apple would do the right thing, given its history.
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 | EPISODE 34 |
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Correction, 1:47 p.m. PDT: This story incorrectly described the Apple iPhone. The iPhone does have GPS capability.
Google's first Android-based phone was announced Tuesday and so far, the response has been mixed.
Some believe it'll be the next big thing in the cell phone business because it adds some basics -- such as a physical keyboard -- that the iPhone is lacking. Others believe the G1 will fall flat on its face because it's not unique and its omissions (Exchange support, for one) will make it lose out in the corporate space. (For a full comparison of the two devices, see "T-Mobile G1 Vs. Apple iPhone 3G.")
I tend to agree on both counts. I think Android could be a major hit in the cell phone space, but the G1 won't be able to stand up to Apple or RIM. It's too underpowered and its obvious omissions tell me T-Mobile and Google rushed it before it was ready.
But Android is an entirely different story. At its core, Android is a platform that has tons of potential. It's not only open (which is probably the best feature), it offers full Google integration, which is a key concept in today's age of Google domination, and its touch-screen capabilities mean Apple isn't the only other major company doing something unique in the market.
But my belief that Android will be a success goes far beyond the product itself. Call me crazy, but I can't think of one reason why anyone would underestimate Google. Countless times, companies have ignored Google and let it slip into a market, only to learn when it's too late that it's the leader.
And while it's easy for Apple and the rest to scoff now, you can bet that that's exactly what Google wants.
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