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Feb 09, 2024 4
Since 2011
VISION PRO
SPATIAL
COMPUTING
WHY APPLE PUSHES THE
TERM WITH ITS HEADSET
MICROSOFT
SATYA
NADELLA
CEO CAPS ADECADE
OF CHANGE & GROWTH
Bf
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WHY APPLE IS PUSHING THE TERM ‘SPATIAL COMPUTING’
ALONG WITH ITS NEW VISION PRO HEADSET
META SAYS IT WILL LABEL AI-GENERATED
IMAGES ON FACEBOOK & INSTAGRAM
GAME BOOST: EXPANDING APPLE’S GAMING
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MICROSOFT CEO SATYA NADELLA CAPS A DECADE
OF CHANGE AND TREMENDOUS GROWTH
{ US ADULTS...
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ESPN, FOX, WARNER BROS. DISCOVERY ARE PLANNING A SPORTS STREAMING PLATFORM...
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JAPAN GAME MAKER NINTENDO REPORTS SOLID PROFIT ON A JUMP IN SUPER MARIO SALES
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WHY APPLE IS
PUSHING THE
TERM ‘SPATIAL
COMPUTING’
ALONG WITH
ITS NEW VISION
PRO HEADSET
With Apple's hotly anticipated Vision Pro headset
hitting store shelves, you're probably going to
start to see more people wearing the futuristic
googles that are supposed to usher in the age of
“spatial computing.”
It's an esoteric mode of technology that Apple
executives and their marketing gurus are
trying to thrust into the mainstream. This while
avoiding other more widely used terms such
as “augmented reality” and “virtual reality” to
describe the transformative powers of a product
that's being touted as potentially monumental
as the iPhone that came out in 2007.
08
Image: Noah Berger
09
10
~*
Image: Noah Berger
“We can't wait for people to experience the
magic,’ Apple CEO Tim Cook gushed while
discussing the Vision Pro with analysts.
The Vision Pro also will be among Apple's most
expensive products at $3,500 — a price point
that has most analysts predicting the company
may only sell 1 million or fewer devices during
its first year. But Apple only sold about 4 million
iPhones during that device's first year on the
market and now sells more than 200 million
of them annually, so there is a history of what
initially appears to be a niche product turning
into something that becomes enmeshed in how
people live and work.
If that happens with the Vision Pro, references
to spatial computing could become as
ingrained in modern-day vernacular as mobile
and personal computing — two previous
technological revolutions that Apple played an
integral role in creating.
So what is spatial computing? It's a way to
describe the intersection between the physical
world around us and a virtual world fabricated
by technology, while enabling humans and
machines to harmoniously manipulate objects
and spaces. Accomplishing these tasks often
incorporates elements of augmented reality,
or AR, and artificial intelligence, or Al — two
subsets of technology that are helping to make
spatial computing happen, said Cathy Hackl,
a long-time industry consultant who is now
running a startup working on apps for the
Vision Pro.
“This is a pivotal moment,’ Hackl said. “Spatial
computing will enable devices to understand
the world in ways they never have been able
11
to do before. It is going to change human to
computer interaction, and eventually every
interface — whether it’s a car or a watch — will
become spatial computing devices.”
In a sign of the excitement surrounding the
Vision Pro, more than 600 newly designed
apps will be available to use on the headset
right away, according to Apple. The range of
apps will include a wide selection of television
networks, video streaming services (although
Netflix and Google's YouTube are notably
absent from the list) video games and various
educational options. On the work side of things,
videoconferencing service Zoom and other
companies that provide online meeting tools
have built apps for the Vision Pro, too.
But the Vision Pro could expose yet another
disturbing side of technology if its use of spatial
computing is so compelling that people start
seeing the world differently when they aren't
wearing the headset and start to believe life
is far more interesting when seen through the
goggles. That scenario could worsen the screen
addictions that have become endemic since the
iPhone's debut and deepen the isolation that
digital dependence tends to cultivate.
Apple is far from the only prominent technology
company working on spatial computing
products. For the past few years, Google
has been working on a three-dimensional
videoconferencing service called “Project
Starline” that draws upon “photorealistic” images
and a“magic window” so two people sitting
in different cities feel like they are in the same
room together. But Starline still hasn't been
widely released. Facebook's corporate parent,
Meta Platforms, also has for years been selling
the Quest headset that could be seen as a
platform for spatial computing, although that
company so far hasn't positioned the device in
that manner.
Vision Pro, in contrast, is being backed by a
company with the marketing prowess and
customer allegiance that tend to trigger trends.
Although it might be heralded as a
breakthrough if Apple realizes its vision with
Vision Pro, the concept of spatial computing has
been around for at least 20 years. In a 132-page
research paper on the subject published in 2003
by the Massachusetts Institute of Technology,
Simon Greenwold made a case for automatically
flushing toilets to be a primitive form of spatial
computing. Greenwold supported his reasoning
14
Image: jim Wilson
15
al
®)
i
Image: jim Wilson
by pointing out the toilet “senses the user's
movement away to trigger a flush” and “the
space of the system's engagement is a real
human space.”
The Vision Pro, of course, is far more
sophisticated than a toilet. One of the most
compelling features in the Vision Pro are its
high-resolution screens that can play back
three-dimensional video recordings of events
and people to make it seem like the encounters
are happening all over again. Apple already
laid the groundwork for selling the Vision Pro
by including the ability to record what it calls
“spatial video” on the premium iPhone 15
models released in September.
Apple's headset also reacts to a user’s hand
gestures and eye movements in an attempt
to make the device seem like another piece of
human physiology. While wearing the headset,
users will also be able use just their hands to
pull up and arrange an array of virtual computer
screens, similar to a scene featuring Tom Cruise
in the 2002 film “Minority Report.’
Spatial computing “is a technology that’s starting
to adapt to the user instead of requiring the user
adapting to the technology,’ Hackl said. “It’s all
supposed to be very natural.’
It remains to be seen how natural it may seem
if you are sitting down to have dinner with
someone else wearing the goggles instead of
intermittently gazing at their smartphone.
17
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OVERSIGHT
BOARD URGES
META TO RETHINK
ITS POLICY ON
MANIPULATED
MEDIA IN
HIGH-STAKES
ELECTION YEAR
An oversight board is criticizing Facebook
owner Meta’s policies regarding manipulated
media as “incoherent” and insufficient to
address the flood of online disinformation that
already has begun to target elections across
the globe this year.
The quasi-independent board this week said its
review of an altered video of President Joe Biden
that spread on Facebook exposed gaps in the
policy. The board said Meta should expand the
policy to focus not only on videos generated
with artificial intelligence, but on media
21
regardless of how it was created. That includes
fake audio recordings, which already have
convincingly impersonated political candidates
in the U.S. and elsewhere.
The company also should clarify the harms it
is trying to prevent and should label images,
videos and audio clips as manipulated instead
of removing the posts altogether, the Meta
Oversight Board said.
The board's feedback reflects the intense
scrutiny that is facing many tech companies
for their handling of election falsehoods ina » a
year when voters in more than 50 countries F
will go to the polls. As both generative artificial
intelligence deepfakes and lower-quality “cheap Si”
fakes” on social media threaten to mislead y :
voters, the platforms are trying to catch up and La : : y =
respond to false posts while protecting users’ { : ‘
rights to free speech. i 2 a ee Bi Se
“As it stands, the policy makes little sense,’ ‘ ners Sie
Oversight Board co-chair Michael McConnell ie ees é 2
said of Meta's policy in a statement. He said
the company should close gaps in the
dlicy \ g political speech is
eye)
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nd publicly to the
any type of co
Community Standards, he said.
22
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Facebook, which turned 20 this week,
remains the most popular social media site
for Americans to get their news, according to
Pew. But other social media sites, among them
Meta’s Instagram, WhatsApp and Threads, as
well as X, YouTube and TikTok, also are potential
hubs where deceptive media can spread and
fool voters.
Meta created its oversight board in 2020 to
serve as a referee for content on its platforms.
Its current recommendations come after it
reviewed an altered clip of President Biden and
his adult granddaughter that was misleading
but didn’t violate the company’s specific policies.
The original footage showed Biden placing an“!
Voted" sticker high on his granddaughter’s chest,
at her instruction, then kissing her on the cheek.
The version that appeared on Facebook was
altered to remove the important context, making
it seem as if he touched her inappropriately.
The board's ruling on Monday upheld Meta’s
2023 decision to leave the seven-second clip
up on Facebook, since it didn't violate the
company’s existing manipulated media policy.
Meta’s current policy says it will remove videos
created using artificial intelligence tools that
misrepresent someone's speech.
“Since the video in this post was not altered
using Al and it shows President Biden doing
something he did not do (not something he
didn't say), it does not violate the existing policy,’
the ruling read.
The board advised the company to update the
policy and label similar videos as manipulated
in the future. It argued that to protect users’
rights to freedom of expression, Meta should
27
label content as manipulated rather than
removing it from the platform if it doesn’t
violate any other policies.
The board also noted that some forms of
manipulated media are made for humor, parody
or satire and should be protected. Instead of
focusing on how a distorted image, video or
audio clip was created, the company's policy
should focus on the harm manipulated posts
can cause, such as disrupting the election
process, the ruling said.
Meta said on its website that it welcomes the
Oversight Board's ruling on the Biden post and
will update the post after reviewing the board's
recommendations.
Meta is required to heed the Oversight Board’s
rulings on specific content decisions, though
it’s under no obligation to follow the board’s
broader recommendations. Still, the board has
gotten the company to make some changes
over the years, including making messages to
users who violate its policies more specific to
explain to them what they did wrong.
Jen Golbeck, a professor in the University of
Maryland's College of Information Studies, said
Meta is big enough to be a leader in labeling
manipulated content, but follow-through is just
as important as changing policy.
“Will they implement those changes and then
enforce them in the face of political pressure
from the people who want to do bad things?
That's the real question,’ she said. “If they do
make those changes and don't enforce them, it
kind of further contributes to this destruction of
trust that comes with misinformation.’
28
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META SAYS IT
WILL LABEL
AI-GENERATED
IMAGES ON
FACEBOOK &
INSTAGRAM
Facebook and Instagram users will start seeing
labels on Al-generated images that appear on
their social media feeds, part of a broader tech
industry initiative to sort between what's real
and not.
Meta said this week it’s working with industry
partners on technical standards that will make it
easier to identify images and eventually video and
audio generated by artificial intelligence tools.
What remains to be seen is how well it will work
at a time when it’s easier than ever to make
and distribute Al-generated imagery that can
cause harm — from election misinformation to
nonconsensual fake nudes of celebrities.
“It’s kind of a signal that they're taking seriously
the fact that generation of fake content online
is an issue for their platforms,’ said Gili Vidan,
an assistant professor of information science at
Cornell University. It could be “quite effective” in
flagging a large portion of Al-generated content
made with commercial tools, but it won't likely
catch everything, she said.
Meta’s president of global affairs, Nick Clegg, didn’t
specify when the labels would appear but said
it will be “in the coming months’ and in different
languages, noting that a“number of important
elections are taking place around the world’
“As the difference between human and
synthetic content gets blurred, people want
to know where the boundary lies,’ he said in a
blog post.
Meta already puts an “Imagined with Al” label
on photorealistic images made by its own tool,
but most of the Al-generated content flooding
its social media services comes from elsewhere.
34
35
36
ae
A number of tech industry collaborations,
including the Adobe-led Content Authenticity
Initiative, have been working to set standards.
A push for digital watermarking and labeling
of Al-generated content was also part of an
executive order that U.S. President Joe Biden
signed in October.
Clegg said that Meta will be working to label
“images from Google, OpenAl, Microsoft, Adobe,
Midjourney, and Shutterstock as they implement
their plans for adding metadata to images created
by their tools.”
Google said last year that Al labels are coming to
YouTube and its other platforms.
“In the coming months, we'll introduce labels that
inform viewers when the realistic content they're
seeing is synthetic,’ YouTube CEO Neal Mohan
reiterated in a year-ahead blog post.
One potential concern for consumers is if tech
platforms get more effective at identifying Al-
generated content from a set of major commercial
providers but miss what's made with other tools,
creating a false sense of security.
“There's a lot that would hinge on how this
is communicated by platforms to users,’ said
Cornell's Vidan.“What does this mark mean? With
how much confidence should | take it? What is its
absence supposed to tell me?”
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GM’S TROUBLED
ROBOTAXI SERVICE
FACES ANOTHER
ROUND OF PUBLIC
RIDICULE IN
REGULATORYHEARING
General Motors’ troubled robotaxi service Cruise
this week endured a public lashing from a
California judge who compared the company
to the devious TV character Eddie Haskell for
its behavior following a ghastly collision that
wrecked its ambitious expansion plans.
The withering comparison to the two-faced
Haskell from the 1950s-era TV series, “Leave It
To Beaver,’ was drawn by Administrative Law
Judge Robert Mason III during an hour-long
hearing held to consider a proposed settlement
of a case accusing Cruise trying to conceal its
excruciating role in an incident that resulted in
the suspension of its California license.
After a vehicle driven by a human struck a San
Francisco pedestrian in early October, a Cruise
robotaxi named “Panini” dragged the person 20
feet (6 meters) while traveling at roughly seven
miles per hour (11 kilometers per hour).
But the California Public Utilities Commission,
which in August had granted Cruise a permit to
operate an around-the-clock fleet of computer-
driven taxis throughout San Francisco, alleged
Cruise then covered up what Panini did for
more than two weeks, raising the specter of a
potential fine of $1.5 million, depending on how
the regulations are interpreted.
A new management team that General Motors
installed at Cruise following the October
incident acknowledged it didn't fully inform
regulators what Panini did to the pedestrian
that night while also trying to persuade Mason
that the company wasn't necessarily being
purposefully deceitful.
Mason became so exasperated by Cruise's
mixed messaging during Tuesday's hearing
45
that he harked back to the TV series starring
Jerry Mathers as the Beaver that still pops up in
reruns. “For some reason, Eddie Haskell popped
in my head,’ Mason quipped to Craig Glidden,
who now oversees Cruise as its president and
chief administrative officer.
Glidden sought to assure Mason that Cruise
will accept its culpability for what he described
as a regrettable “mistake.” Cruise entered the
hearing proposed to settle the case for $75,000,
but when Mason contended that the company
should be required to pay at least $112,500,
Glidden immediately agreed to that figure.
“We want to move forward,’ Glidden said. He
also reminded Mason that Cruise could still
face other repercussions beyond California,
with both the U.S. Justice Department and U.S.
Securities and Exchange Commission probing
the robotaxi service's conduct.
But Mason indicated that he is leaning toward
letting the case continue through the entire
hearing process rather than approving a
settlement. The judge didn’t set a timetable for
resolving the matter.
Tuesday's hearing came less than two weeks
after Cruise released a lengthy report reviewing
how the company mishandled things after the
pedestrian was hurt.
The report prepared by the law firm of Quinn
Emanuel Urquhart & Sullivan rebuked Cruise's
management that has since been dumped for
“poor leadership,’ and fostering an “us versus
them” mentality with regulators. But is also
blamed internet connection problems for
46
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preventing various regulators from seeing
parts of a video showing Panini dragging
the pedestrian after the vehicle misread
the situation.
Besides parting ways with former CEO and co-
founder Kyle Vogt and other top executives,
Cruise also has laid off about one-fourth of its
workforce as part of GM's decision to back off its
one-time goal of generating $1 billion in annual
revenue from the robotaxi service by 2025.
49
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In an unexpected move, Apple has announced
an update to its App Store policies that will
allow developers to release game streaming
apps to the platform, meaning native versions
of services like Xbox Cloud Gaming or Amazon
Luna can come to iOS for the first time.
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Steam Link
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DESTINY W2 Seasfti
¥ §
eS
A NEW ERA FOR GAMING
For years, Apple's stringent policies have
meant that developers were forced to submit
individual apps for each game they wanted to
release on iOS, which many found burdensome
and restrictive. This policy effectively barred
major game streaming platforms like Xbox
Cloud Gaming and Steam from providing full
services on the iOS platform and has no doubt
stifled innovation on iOS. However, with new
guidelines, Apple now allows developers to
submit a single ‘host’ app offering a catalogue
of streaming games, mini-games, chatbots, and
plugins - good news for gaming lovers.
Interestingly, this policy update is open to
more than just the European Union, where
regulatory pressure is most intense. Instead,
Apple has decided to implement these
changes globally, marking a strategic shift
in Apple's approach to its App Store, aiming
to make it a more attractive and competitive
platform worldwide. Apple is introducing
new capabilities to enhance the discovery of
streaming games to support this new category
of game-streaming apps. Additionally, the
company is accommodating separate in-app
purchases for the first time. This move could
59
open new revenue streams for developers and
Apple alike through subscriptions and other
digital goods and services and keep iOS on top.
Speaking of the news on the Apple Developers
website, the company said: “Apple is introducing
new options for how apps globally can deliver
in-app experiences to users, including streaming
games and mini-programs, adding that
“developers can now submit a single app with the
capability to stream all of the games offered in
their catalogue’
“Apps will also be able to provide enhanced
discovery opportunities for streaming games,
mini-apps, mini-games, chatbots, and plug-
ins that are found within their apps,’ Apple
continued in its statement, adding: “mini-apps,
mini-games, chatbots, and plug-ins will be able
to incorporate Apple’s In-App Purchase system
to offer their users paid digital content or
services for the first time, such as a subscription
for an individual chatbot.’
62
SECURITY CONCERNS
While this is a significant step forward for
game streaming services, it raises concerns
about privacy and security. Apple’s previous
policy of individually reviewing each game
provided protection, ensuring that the App
Store remained a safe and trusted place for
customers. The introduction of streaming game
services, where the game code runs off a server,
presents new challenges in maintaining this
security and trust. The shift to allow App Store
streaming platforms opens devices to various
risks. These include scams, illegal charges
associated with third-party payment systems,
66
and exposure to unregulated content such as
casinos and gambling. This change will require
innovative solutions from Apple to safeguard
its users against these threats, especially given
its reputation for prioritising user privacy.
Another interesting move is that Apple has
updated its App Store Review Guideline for
using Sign-in with Apple. The service, launched
on iOS and available on iPadOS and macOS,
makes it easy for users to sign in to apps and
websites using their Apple ID and was built from
the ground up with privacy and security in mind.
From January 2024, developers no longer
need to offer Sign-In with Apple as part of
67
@ Sign in wi
h Apple
their app sign-in process. They can instead
offer users an equivalent privacy-focused login
service instead, provided it meets protocols.
Apple, known for its creativity and innovation,
now faces the challenge of adapting its security
measures to this new landscape. The company
must find ways to ensure its ecosystem remains
d trusted, even as it becomes more
nge is not merely a response
eloper feedback or a sudden change of
heart by Apple. It is closely tied to the broader
regulatory environment, particularly in the
EU. The Digital Markets Act is pushing major
tech companies to open up their platforms to
other companies’ app stores. By relaxing its
policies, Apple is likely aiming to keep its App
Store competitive and appealing in the face of
these new regulations. Other tech giants and
game developers are also responding to these
regulatory changes. Companies like Microsoft
want to take advantage of the EU’s new
rules by implementing their own app stores.
The move comes after the UK Competition
and Markets Authority also said it would
move forward with an investigation into
the distribution of cloud game services on
mobile devices, which could provide further
regulatory challenges for Apple as it looks
to cut costs and keep international markets
on side. Introducing sweeping changes
could support the company in its efforts to
stay compliant around the world and avoid
potential fines or even sales bans.
71
These developments indicate a significant shift in
the mobile app and gaming industry, driven by
both competitive forces and regulatory mandates.
The truth is that it’s too early to say whether this
will be good news or bad news for consumers,
but it will certainly lead to more choices. Indeed,
we could soon see the Google Play Store on
iOS, and there'll no doubt be a push by large
technology firms to encourage users to choose
their app stores over the native iOS App Store.
Developers and technology companies may even
offer incentives to get users on their platforms or
limit access to their apps - Meta, for instance, could
make its Facebook, Instagram, and WhatsApp
products available exclusively via a Meta App
Store for iOS.
Apple's decision to allow game
streaming services on its App Store
marks a significant shift in the
mobile gaming landscape. While
it opens up new OpE ties for
developers and provides r
options for consumers, it also
presents challenges in maintaining
the security and privacy standards
that Apple is known for. Only time
will tell what impact it may have.
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——
APPLE ENDS
YEARLONG
SALES SLUMP
WITH SLIGHT
REVENUE RISE IN
HOLIDAY-SEASON
PERIOD BUT
STOCK SLIPS
79
Apple snapped out of a yearlong sales funk during
its holiday-season quarter, propelled by solid
demand for the latest model of its iPhone and still-
robust growth in a services division facing legal
threats that could undermine its prospects.
The modest revenue growth announced last
week as part of Apple’s October-December results
ended four consecutive quarters of year-over-year
sales declines. But the performance still may not
be enough to allay recent investor concerns about
Apple's ability to rebuild the momentum that
established it as the most valuable U.S. publicly
traded company.
After years of holding that mantle, Apple recently
ceded the top spot to its long-time rival Microsoft,
which has been elevated largely through its early
leadership in artificial intelligence technology.
Apple is hoping to shift the narrative back in its
favor with the release of its Vision Pro headset
that transports users into a hybrid of physical
and digital environments — a combination the
company is promoting as “spatial computing.’ But
the first version of the Vision Pro will cost $3,500
—a lofty price tag analysts expect to constrain
demand this year.
“We are optimistic about the future, confident in
the long term, and excited as we have ever been,’
Apple CEO Tim Cook assured analysts during a
conference call about the latest quarterly results.
Despite recurring worries that Apple may be
entering a period of slower growth compared
with its track record over the past 20 years, the
Cupertino, California, is still thriving.
Apple's revenue for its most recent quarter rose
2% from the same time in the previous year to
81
$119.58 billion. The company earned $33.92
billion, or $2.18 per share, a 13% gain from the
same time last year.
As usual, the iPhone accounted for the bulk of
Apple's revenue. Sales of the company’s marquee
product totaled $69.7 billion in the past quarter, a
6% increase from the same time in the prior year.
Those results include the latest iPhone that came
out in late September, including a premium model
that includes a special video recording feature
designed for playing back on the Vision Pro.
Apple's services division, which is tied largely to
the iPhone, posted an 11% rise in revenue from
the previous year to $23.12 billion.
Both the revenue and earnings for the quarter
exceeded analysts’ projections, according to
FactSet Research.
\ But Apple issued a lukewarm forecast for the
current January-March period that indicated
iPhone sales will slip from last year, supporting
the thesis that the company is mired ina
financial malaise.
While it has been consistently generating double-
digit revenue growth, Apple's services division
is under legal attack. The results of the legal
challer ild siphon away a significant chunk
of lowing from a search deal with Google
sions collected through the iPhone
en consumers complete digital
n the device.
reement to make Google the default
gine on the iPhone and Safari browser
hat brings in an estimated $15 billion
illion annually — is the focal point
st case brought by the U.S. Justice
ent that will shift into its final phase
83
+
ie}
in May. Another antitrust case brought by
video game maker Epic Games and new
regulatory rules in Europe already have
forced Apple to revise its commission system
in the iPhone app store, although critics say
the concessions are illusory and are pledging
to push for even more dramatic changes.
The past quarter also pointed to faltering
sales in China, a major market for Apple and
an area that investors have been fretting
about because of that country’s weakening
economy and reports that the government
there may prohibit its workers from buying
iPhones. Apple's revenue in China dropped
13% from the previous year to $20.82 billion.
85
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MICROSOFT CEO
SATYA NADELLA
CAPS A DECADE
OF CHANGE AND
TREMENDOUS
GROWTH
Satya Nadella marks his tenth year as Microsoft
CEO, capping a decade of stunning growth
as he pivoted the slow-moving software giant
into a laser focus on cloud computing and
artificial intelligence.
Microsoft's stock has soared by more than
1,000% since Nadella took the helm in 2014,
compared to the more gradual 185% growth
of the broader S&P 500. Microsoft now has a
market value of $3 trillion — more than any
U.S. publicly traded company, including its
longtime rival Apple.
89
LEAS
SO
~~
\
“Nadella’s had the biggest transformation of a
tech company potentially ever,’ said Wedbush
Securities analyst Daniel Ives. “The only one that
would rival it was (Steve) Jobs coming back to
Apple and turning it around with the iPhone.’
Microsoft has created $2.8 trillion in
shareholder wealth in the past decade,
meaning an investor who bought a $10,000
stake in Microsoft at the time Nadella took over
and did nothing with those shares, would have
a stake worth about $113,000 now.
HOW IT HAPPENED
“Our industry does not respect tradition — it only
respects innovation,’ Nadella told employees in an
inaugural memo 10 years ago, an opening salvo
that hinted at bigger shifts to come. Microsoft
declined requests for an interview.
Now a hero to Wall Street, some were at first
skeptical that such transformation could come
from an insider whod already spent 22 years
at the Redmond, Washington company. He's
only the third Microsoft CEO, following Steve
Ballmer, who lasted for 14 years, and Bill Gates,
who co-founded the company in 1975 and took
it public in 1986.
Big changes came quickly under Nadella. He
marshaled resources to build up the Azure cloud
computing platform, a shift in priorities from
the company’s longtime reliance on its flagship
Windows operating system and the royalties
it gets for each PC sold with it. And he largely
put the brakes on Microsoft's ill-fated attempts
to play catch-up in the smartphone market,
marked by his predecessor Ballmer’s $7.3 billion
acquisition of Nokia's phone business.
91
But some of the biggest changes were in the
company’s culture, a shift away from Microsoft's
brash external reputation and internal bickering
to a more collaborative approach that Nadella
has modeled in his own collegial personality and
engineer's mindset.
LEARN-IT-ALL CULTURE
“Microsoft is known for rallying the troops
with competitive fire,’ Nadella said in his 2017
autobiography. “The press loves that, but it’s
not me.’
Much of Nadella’s strength is how he stands
out from the typical “very strong ego CEO,’ said
Raimo Lenschow, a stock analyst at Barclays who
covers 36 tech companies. Instead of making
bold pronouncements, Lenschow said Nadella
takes a more measured approach to explaining.
“where he thinks the future is going.”
And “whether it’s the person making food in
the cafeteria, an engineer, finance executive, a
customer, he treats everyone in the same way,
with respect,’ said Ives. It’s not just Wall Street
analysts who think so.
A tiny startup from Zeeland, Michigan, running
a booth at January’s CES gadget show in
Las Vegas caught a glimpse of Nadella’s
curiosity when he showed up, shook founder
Tim Murphy's hand and asked for a demo. The
product, Audio Radar, visualizes the
sounds in video games for deaf and hard
of hearing players.
“He's very down to earth,’ said Murphy, who was
there with a small crew including his teen son.
“| gave him the pitch, played some games, and
he was like, ‘It’s wonderful what you're doing:
Honestly, | can’t really remember too much of
what he said because | was just kind of shocked.’
Nadella has long made the accessibility of
technology a priority, informed in part by his
experience raising a son who was visually
impaired, quadriplegic and had cerebral palsy.
Zain Nadella died in 2022.
Al PUSH
What's brought Microsoft to its latest heights is
its emergence as an artificial intelligence leader,
setting the agenda on how Al tools could get
used in work and society. While Nadella has
been emphasizing Al for most of his tenure, its
role was not guaranteed and happened after
years of careful planning that led to a close
partnership with ChatGPT-maker OpenAl.
“Historically, if you're a cool startup that was
doing something amazing, Microsoft wasn't
really your first choice,’ Lenschow said. “So the
fact that he got OpenAl to commit to Azure
was an amazing masterstroke ... it gives him a
massive, competitive advantage over Google
and Amazon.’
94
95
That position was put in jeopardy late last year
when OpenAls board of directors suddenly
fired CEO Sam Altman. A weekend of behind-
the-scenes maneuvers and a threatened mass
exodus of employees championed by Nadella
helped bring back Altman and stabilize the
startup, assuaging clients and shareholders. “He
handled that like he was in the World Series of
Poker playing against little kids,’ Ives said.
ONGOING CHALLENGES
Nadella’s tenure hasn't been without hiccups,
especially given how much of the world relies so
heavily on Microsoft products — sometimes to
the frustration of people using them.
Cybersecurity experts say its tendency is to
sacrifice security for convenience, including in
its gung-ho rollout of Al large language models.
The company’s trademark suite of work tools,
Microsoft Office 365, has also been penetrated
successfully in recent years in embarrassing
high-profile compromises that have seen elite
Russian and Chinese cyber operators access
the email accounts of senior U.S. officials and
members of Microsoft's senior leadership team.
It stepped in to provide cloud hosting to Ukraine
just ahead of Russia's 2022 invasion, but the
networks serving NATO allies are constantly
peppered by intrusion attempts. That, and
the worsening ransomware scourge, have led
Nadella to call for a cyber Geneva Convention
with Russia and China.
And despite Nadella’s stated aversion to
“competitive fire,’ Microsoft is once again
drawing the kind of antitrust scrutiny that
dogged Gates and Ballmer in earlier years.
96
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The U.S. economy is humming and there are
hundreds of thousands of jobs being added
every month. In a stunning burst of hiring to
start the year, the nation added 353,000 jobs in
January, shrugging off the highest interest rates
in two decades that have been put in place by
the U.S. Federal Reserve in part to cool off hiring
and spending.
The unemployment rate is hovering at 3.7%, just
above a half-century low.
At the same time, layoffs continue to arrive
across almost every sector in 2024 as companies
adjust to a shifting economy.
Job cuts in tech and retail follow a massive
ramp-up in hiring during the COVID-19
pandemic — when people spent more time
and money online. Now, many companies are
reducing headcounts to help lower costs and
bolster their bottom lines. Many still have more
workers than they did a few years ago.
Here's where some of the job cuts have taken
place in recent weeks.
ESTEE LAUDER
Estee Lauder is cutting 3% to 5% of its global
workforce. The downsizing, which will affect as
many as 3,100 workers, will be made by July,
Estee Lauder said. The company employed
62,000 workers worldwide, according to its latest
regulatory filing.
REI
REI is laying off 357 workers, mostly in the
outdoor retailer's headquarters and distribution
centers. In a letter to employees, CEO Eric
Artz noted that “outdoor specialty retail has
105
experienced four quarters of decline — and
that trend has been worsening.’ While REI was
able to outperform this for much of last year,
he said, this trend caught up to the company in
the fourth quarter, and difficult conditions are
expected in 2024.
LEVI’S
Levi Strauss & Co. is slashing its global corporate
workforce by 10% to 15% in the first half of
the year — as part of a two-year restructuring
plan that seeks to cut costs and simplify its
operations, the denim giant said. The layoffs on
the same day Levi's unveiled a proposed 10-
year extension to the naming rights for Levi's
Stadium, home of the San Francisco 49ers, in a
$170 million deal.
MICROSOFT
Microsoft is laying off some 1,900 employees
in its gaming division, according to an internal
company memo. The job cuts — which
represent about an 8% reduction of Microsoft's
22,000-person gaming workforce — arrive
just over three months since the tech giant
completed its $69 billion purchase of video
game maker Activision Blizzard.
SNAP
The owner of Snapchat is cutting approximately
10% of its worldwide workforce, or about
530 employees, the latest tech company to
announce layoffs. Snap Inc. said in a regulatory
filing that it currently estimates $55 million to
$75 million in charges, mostly for severance and
106
related costs. It expects the majority of the costs
to be incurred in the first quarter.
TIKTOK
TikTok said its shedding dozens of workers in
its advertising and sales unit. A spokesperson
for the company confirmed that the social
media platform is cutting 60 jobs. TikTok, which
is owned by Beijing-based ByteDance, did not
provide a reason for the layoffs.
RIOT GAMES
Video game developer Riot Games, which
is behind the popular “League of Legends”
multiplayer battle game, is trimming 11% of its
staff. The company, which is owned by Chinese
technology giant Tencent, said 530 jobs were
being eliminated.
EBAY
Online retailer eBay Inc. will cut about 1,000 jobs,
or an estimated 9% of its full-time workforce,
saying its number of employees and costs have
exceeded how much the business is growing in
a slowing economy.
WAYFAIR
Online furniture seller Wayfair is cutting about
1,650 jobs, or 13% of its global workforce. The
restructuring is set to reduce team sizes across
the company and reduce seniority in certain
roles with the company planning to “rebuild
with modified leveling” this year, CEO and co-
founder Niraj Shah said.
109
MACY’S
Macy’s is laying off about 3.5% of its total
headcount, which amounts to roughly 2,350
employees. The iconic department store is also
closing five locations in Arlington, Virginia; San
Leandro, California; Lihue, Hawaii; Simi Valley,
California; and Tallahassee, Florida.
GOOGLE
Google said it was laying off hundreds of
employees working on its hardware, voice
assistance and engineering teams. The cuts
follow pledges by executives of Google and
its parent company Alphabet to reduce costs.
A year ago, Google said it would lay off 12,000
employees or around 6% of its workforce.
AMAZON
Twitch, which is owned by Amazon, is cutting
more than 500 jobs in a bid to save on costs. The
video streaming platform's CEO Dan Clancy said
in an email to employees that even with cost
cuts and growing efficiency, the platform “is still
meaningfully larger than it needs to be given
the size of our business.’
Amazon-owned online audiobook and podcast
service Audible is laying off about 5% of its
workforce. In a memo sent to employees,
Audible CEO Bob Carrigan said that the
company is in good shape, but faces an
“increasingly challenging landscape.’ In addition,
Amazon's Prime Video and MGM Studios unit, is
trimming hundreds of employees as it cuts back
in areas that are not delivering.
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WHY NOW IS A
CRUCIAL TIME
TO PAY OFF
CREDIT CARD
DEBT
For Americans who lacked savings prior to
the pandemic, financial stress is rising. A
combination of inflation, increased interest rates,
and the end of pandemic-tied relief, such as the
moratorium on student loan payments, has led
to record credit card debt, experts say.
In the fourth quarter of 2023, Americans held
$1.13 trillion on their credit cards, and aggregate
household debt balances increased by $212
billion, a 1.2% rise, according to the latest data
from the New York Federal Reserve.
Delinquencies are also on the rise. As of
December, 3.1% of outstanding debt was
114
115
in some stage of delinquency, up by 0.1
percentage point from the third quarter. The
New York Fed's report found that 6.4% of credit
card debt was delinquent by 90 days or more, up
from 4% in the last quarter of 2022.
“Credit card and auto loan transitions into
delinquency are still rising above pre-pandemic
levels,’ said Wilbert van der Klaauw, economic
research advisor at the New York Fed. “This
signals increased financial stress, especially
among younger and lower-income households.’
The average interest rate on a given credit card is
now roughly 21.5%, the highest it's been since the
Federal Reserve started tracking rates in 1994.
Silvio Tavares, president and CEO of
VantageScore, one of the country’s two major
credit scoring systems, said, “the reality is that
there are starting to be some significant signs
of stress,’ despite consumers generally being in
good financial health.
If you're facing increased credit card debt, while
feeling the ongoing effects of inflation, here's
what to consider:
ASK FOR A RATE CUT
One of the first things you should do is ask your
credit card company to lower your rates.
While the Federal Reserve signaled that its
first interest rate cut is likely months away, the
average credit card interest rate is already far and
away higher than the rate set by the Fed. Most
companies offer promotional rates and ways to
move your balances to low or zero-interest cards,
at least for the first year. These promotions can
help keep debt from accumulating.
116
117
That said, you may have to pay a balance
transfer fee and pay the balance off before
a given promotion window ends, or face
additional interest.
What's more, reports on bank industry
sentiment show banks are becoming
increasingly conservative in which loans they
give out, which means refinancing may be
becoming more difficult.
PAY OFF HIGHER-INTEREST DEBT FIRST
Known as the “avalanche approach,’ paying off
debt that accumulates interest more quickly will
always be more efficient than paying off lower-
interest debt first. This is the most financially
sound method of debt management.
Another way, known as the “snowball approach,’
considers the psychological rewards of paying
off small debts first, which can boost morale,
before tackling larger debts. Some financial
counselors see this method as more motivating.
Nonprofit credit counseling can be found
through the National Foundation for Credit
Counseling at nfcc.org.
CONSOLIDATE LOANS AND LOWER
YOUR STUDENT LOAN PAYMENT
Wherever possible, counselors also encourage
consumers to consolidate loans, at fixed rates
when available. The Federal Trade Commission's
Consumer Advice guide for Getting Out of Debt
can help you make a plan.
When it comes to student loan payments, also
make sure all of those debts are consolidated,
and that you're taking advantage of every way to
lower that monthly cost.
119
120
The Public Service Loan Forgiveness program
is one of several avenues for relief still available
to many with student debt. Other sources for
borrowers include: false certification, borrower
defense, closed school, total/permanent
disability discharges, and alternate repayment
programs like income-driven repayment.
BUDGET FOR INFLATION
Inflation is down from its peak, but the cost of
many goods and services remains elevated: A
loaf of bread that cost $1.54 in December 2020
cost $2.02 at the end of last year, according to
the Bureau of Labor Statistics. The median rent
for a property with up to two bedrooms is up
from $1,424 at the end of 2020 to $1,713 at the
end of last year, according to realtor.com.
America Saves, a non-profit campaign by
the Consumer Federation of America, offers
guidance here.
Since the pandemic, some providers of monthly
services have become more open to negotiating
bills — whether utilities, phone service, cable,
internet, or auto insurance. Making these calls
can lead to meaningful savings, according
to Kia McCallister-Young, director of America
Saves. Call to ask for the lowest rate, available
rebates and coupons, she advises. If a provider
is competitive with other companies, there's an
increased chance of getting a discount.
121
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: NEARLY
ADULTS
PLANTO.WAGER
a
Nearly 68 million American adults — about
1 in 4— plan to bet on this year’s Super
Bowl, setting a record by a wide margin,
according to the gambling industry's national
trade association.
Figures released this week by the American
Gaming Association include bets placed with
legal outlets, as well as with illegal bookies and
online operations in other countries.
The volume of betting participation is projected
to be 35% higher than last year, which was the
previous record.
Bettors plan to wager an estimated $23.1 billion
on this year's Super Bowl, up from $16 billion last
year, the group predicted.
Of that, about $1.5 billion is projected to be
bet with legal outlets, the group said, citing
consensus estimates from various sources. That
is in the same ballpark as the $1.25 billion in
legal bets projected by Irvine, California-based
research firm Eilers & Krejcik Gaming.
Sports betting is legal in 38 states plus
Washington, D.C.
“There's a good chance that every Super Bowl
for the next ten or so years will be the most bet
Super Bowl thanks to the underlying growth
of regulated sports betting in the U.S.,’said
gambling analyst Chris Grove, a partner at Eilers
& Krejcik Gaming.
Sunday's game will feature the defending Super
Bowl champion Kansas City Chiefs against the
San Francisco 49ers in a rare rematch from four
years ago.
127
The 49ers are favored by 2.5 points, meaning
they would have to win the game by 3 or
more points for bets on them to be winners.
Conversely, if the Chiefs win, or if they lose
by no more than 2 points, bets on Kansas
City would win. Those odds are from FanDuel
Sportsbook provider.
The romance between Chiefs star tight end
Travis Kelce and pop superstar Taylor Swift might
be helping drive interest in this Super Bowl.
About 73% of adults say they plan to watch the
game this year, about 10% higher than in recent
previous years.
“| think the ‘Taylor Swift effect’ will be more
obviously felt in terms of the total number of
people watching and betting on the game
than it will be in the total dollars bet on the
game,’ Grove said. “But there's little doubt that
sportsbooks will be seeing Swifties sign up that
otherwise would not have given sports betting a
second thought.”
Likewise, Cait DeBaun, a vice president with
the American Gaming Association, said Swift
could be one of several reasons for increased
betting on this year’s Super Bowl, along with
“the compelling matchup,’ the game being held
in Las Vegas, the nation’s betting capital, and the
growing availability of legal sports betting in
the U.S.
The largest group in the survey — 42.7 million
adults — plans to place a wager online (legally
or illegally), at a retail sportsbook or with an
illegal bookie, an increase of 41% from last year.
About 36.5 million adults plan to bet casually
with friends, or as part of a pool or squares
contest, up 32% from last year.
128
Bettors are nearly split on the outcome of
the game, with 47% planning to bet on the
Kansas City Chiefs and 44% planning to bet
on the San Francisco 49ers, according to the
association's survey conducted Jan. 30 through
Feb. 1 of a national sample of 2,204 adults. The
survey has a margin of error of plus or minus 2
percentage points.
Groups that treat or seek to prevent compulsive
gambling are always concerned as the Super
Bowl approaches, let alone one with the
anticipated betting activity this year’s game
is likely to have. The Council on Compulsive
Gambling of NJ urges bettors to set limits on
their wagering, only bet what you can afford
to lose and never chase gambling losses with
additional bets.
That is particularly important with the
widespread availability of in-game bets, the
group said.
“The capacity to wager throughout the game
allows gamblers to take as many risks as there
are plays, and with every setback comes the
temptation to try to recoup one's losses with yet
another bet,’ it said in a statement.
Help for those with a gambling problem is
available by calling 800-GAMBLER.
Eilers & Krejcik forecasts that nearly 13% of
money bet with legal sportsbooks will come
from Nevada, where the game will be played.
That is followed by New York (12.4%), New
Jersey (9.6%); Pennsylvania (7.4%), Illinois
(7.3%); Ohio (7%) and Arizona (5.6%). Other
states are projected to account for 3.6% or
less individually.
131
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133
SPO :RaleS
NBA SET TO
PLAY ON AN LED
GLASS COURT FOR
~ — SOMB-ALLSTAR
= WEEKEND EVENTS
For the first time, the NBA will play on glass.
Part of All-Star weekend in Indianapolis —
including the entire All-Star Saturday Night
lineup — will be played on a state-of-the-art, full
video LED court that will be installed at Lucas Oil
Stadium, the league said this week.
That means the skills competition, the 3-point
contest, the slam dunk competition and the
shooting matchup between Stephen Curry and
Sabrina lonescu will take place on the glass floor
on Feb. 17, as will the celebrity game on Feb. 16.
The actual All-Star Game itself on Feb. 18 will
remain on a wooden court.
“It gives us a little bit more range in what we
can do as far as interactive graphics, reactionary
graphics that happen on the floor, changing
the floor design, changing the colors, really
reacting to the play that happens on the
court,’ said Carlton Myers, an NBA senior vice
president overseeing live production and
entertainment. “So, we feel really, really good
about the capabilities of what this gives us,
what this provides us. And we think it’s going
to be really impactful, both in the building and
watching on television.”
The court, developed by the German company
ASB GlassFloor, has been used in events
by FIBA, the sport’s governing body. FIBA
approved usage of LED glass flooring at top-
tier competitions in 2022. The league didn't
reveal what the court costs, other than it’s more
expensive than a wood surface.
The NBA has been considering ways to use the
product for some time. Andre Iguodala of the
National Basketball Players Association and
Joe Dumars, the NBA's executive vice president
137
for basketball operations, experimented on
the court last week to check how it plays and
whether it's safe.
The court itself is actually two layers of
laminated safety glass, each five millimeters
thick, the NBA said. The surface is opaque, and
all the designs will be provided by the LED
panels. Courts will have a different look for each
event — and part of what'll be displayed are
real-time game stats, replays, video content and
even player tracking animations.
The surface plays almost exactly the same way
wood does, in terms of bounce and feel.
“What does it feel like? Does it have traction?
Does it have give? Those were the questions
that came to mind right away when you hear
about this court,’ Dumars said. “And they were
answered to our satisfaction.’
The NBA experimented with court design
changes earlier this season, when it used
different-looking surfaces for the In-Season
Tournament. Those courts were still the
traditional wood, just with a different
paint scheme.
138
ESPN, FOX,
WARNER BROS.
142
ESPN, Fox and Warner Bros. Discovery
announced plans this week to launch a sports
streaming platform in the fall that will include
offerings from at least 15 networks and all four
major professional sports leagues.
A one-stop app to view most sports should
be a welcome sight for fans, who continue
to navigate rising costs by subscribing to
multiple services.
Kevin Krim, the president and CEO of the ad
measurement firm EDO, compared the three
companies teaming up for sports like what some
networks did when Hulu started in 2008.
“My sense is knowing the cast of characters,
they're looking at the original Hulu concept
and thinking, ‘Well, that worked out really well
for us’ So let's do that again. But for live sports
streaming,’ he said.
The three companies will each share one-third
ownership in the joint venture. A name for
the service and pricing will be announced at a
later date.
“This new sports service exemplifies our ability
as an industry to drive innovation and provide
consumers with more choice, enjoyment and
value and we're thrilled to deliver it to sports
fans,’ Warner Bros. Discovery CEO David Zaslav
said in a statement.
The platform will include games from the NFL,
NBA, MLB, NHL, WNBA, NASCAR and college
sports, including the men’s and women’s NCAA
Tournament, as well as golf, tennis and the FIFA
World Cup.
It will include offerings from 15 linear networks
— ESPN, ESPN2, ESPNU, SEC Network, ACC
143
Network, ESPNEWS, ABC, FOX, FS1, FS2, Big Ten
Network, TNT, TBS, truTV — and ESPN+.
Subscribers would also have the ability
to bundle the product with Disney+,
Hulu and/or Max.
“We believe the service will provide passionate
fans outside of the traditional bundle an array
of amazing sports content all in one place,’
Fox CEO and Executive Chair Lachlan Murdoch
said in a statement.
The announcement of the bundle also comes as
ESPN and Warner Bros. Discovery are preparing
to enter negotiations to renew their NBA rights,
which expire at the end of next season.
“To me, the thing that’s triggering all this is
the NBA. We see time and again that the NBA
is the second-best franchise on TV behind the
NFL,’ Krim said. “You're sort of staring at that
renegotiation and new bids coming in that
could include Google, Amazon, Netflix, Apple
and others. It's a good way to team up and
stay competitive.’
ESPN has also been searching for strategic
partners as it prepares to launch a direct-to-
consumer product in the next year or two.
“The launch of this new streaming sports service
is a significant moment for Disney and ESPN, a
major win for sports fans, and an important step
forward for the media business,’ Walt Disney
Company CEO Bob lger said in a statement.
“This means the full suite of ESPN channels will
be available to consumers alongside the sports
programming of other industry leaders as part
of a differentiated sports-centric service.”
144
146
BLOW YOUR
SOCKS OFF
‘ARGYLLE’ WON'T
147
: fa
PREP eee pt ome
149
A checkered mesh of mysteries have accompanied
the release of Matthew Vaughn's “Argylle:’ There
is the promoted one: Who is the “real” Agent
Argylle? Then there's all the (baseless) conjecture
over whether argyle aficionado Taylor Swift had
anything to do with the film. But most of all: Why
two L's? While we can finally put to rest the first
two puzzles, we're left to posit that the spelling
must be to differentiate the movie for those who
just want to buy a pair of socks.
The socks would be a wiser investment.
“Argylle,” a $200 million production from
Apple Films opening in theaters last week,
is a big bet to kickstart a new spy series,
presumably with iterations to follow such as
“Plaidd” and “Herringbonne.”
Criss-crossing patterns of ridiculousness and self-
satisfaction run through “Argylle,’a tiresome meta
movie that puts an awful lot of zest into an awfully
empty high-concept story.
There are all kinds of dumb movies. It can
even be a good quality. “Step Brothers,”
for instance, is a brilliantly dumb movie.
“Argylle” knows it’s preposterous and it’s
trying to have fun with that. But it’s a
strained, unimaginative effort, over-reliant
on twists and needle drops, that leaves
“Argylle” on the bad side of dumb. The best
that you can say about “Argylle” is that it
comes by its dumbness genuinely.
Bryce Dallas Howard stars as Elly Conway, a
bestselling spy novelist who lives quietly with
her (CGI enhanced) cat, Alfie, while conjuring
globe-trotting adventures for her agent Argylle.
The movie's clunky prologue plunges us into
his world, as Argylle (Henry Cavill) dances with
150
Argylle | Official Trailer | Apple TV+
152
Argylle | “Electric Energy” Official Music Video |
Apple TV+
and then pursues a slinky target (Dua Lipa,
whose few minutes in the film may be its best).
While Elly mulls a new ending for her fifth book,
she’s thrown into a real-world espionage thriller.
While on the train, an actual, more scruffy-looking
spy, Adrian (Sam Rockwell), approaches her just as
mean-looking guys are closing in. Throughout the
encounter, Elly blinks and sees Argylle in the place
of Adrian, a bit of fiction-vs-reality that will play
throughout “Argylle”in mostly uninteresting ways.
It's a premise familiar from better movies like
“Romancing the Stone” or “The Lost City.’ But
while those films filled their adventures with
comedy, “Argylle” is surprisingly unfunny, a
lacking Jason Fuchs’ script tries to make up for
with one switcheroo after another. Eventually,
the whole movie feels like a joke, even if
contains few of them.
The actors nearly keep the movie's absurd
plate-spinning going. Among them are
Bryan Cranston as the head of a shadowy
organization called the Division, and
Catherine O'Hara as Elly’s mother. But roles are
fluid in “Argylle. It’s a testament to Howard's
charm that “Argylle” is watchable, at all, and
Rockwell, too, elevates the material.
Vaughn's knack for combining a smirky sense
of humor with flashy, slo-mo ultra-violence has
previously won him fans in the “Kingsman’ film
series. He delights in running spy tropes through
an irreverent wringer. (If“Kingsman’” was a 007 riff,
“Argylle” cribs from “Bourne.’) His movies,
while often colorful and spirited, are slyly
nasty with a slightly obnoxious juvenile
underpinning of “can you believe I’m really
doing this in a studio movie?”
154
With enough plot twists to make a daytime soap
blush, “Argylle” shows just how little that can add
up to. You might think: spy movie, fun actors,
pleasing diagonal lines — how bad can it be? As
much as we all could use a fun movie for fun's
sake, you, too, may have your concerns about
the limits of such pointlessness around the time
when Bryce Dallas Howard glides across an oil
spill on skates of knives. Plus, no movie genuinely
interested in a good time would dare not give
Catherine O'Hara room to be funny. All she needs
is an inch.
In the end, the mysteries that surrounded “Argylle”
ahead of its release were far more intriguing than
those that play out during its lengthy runtime.
Those questions go more like: Are they really
repeatedly using the Apple Music tie-in Beatles
song “Now and Then’? And: This film can't be
139-minutes long, can it?
If there's one person who seems to have the right
idea in “Argylle,’ it's, as usual, Samuel L. Jackson.
He has some vague role that requires him to
await an important transmission from Adrian.
But this effectively means he spends much of the
movie far from the action, drinking red wine and
watching the Lakers game. Smart guy.
“Argylle,” a Universal Studios/Apple Studios release, is rated PG-13 by
the Motion Picture Association for strong violence and action and
some strong language. Running time: 139 minutes. One and a half
stars out of four.
156
The Bachelor
158
TOP
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GIRL GROUPS
RuPaut’s DRAG RACE
THE BACHELOR
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BLAZED AND CONFUSED
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Tver PERRY'S SISTAS
NOTES ONA SCANDAL
Vanperpump RuLes
UNTUCKED - GIRL GROUPS
RuPaut’s Dra Race: Unruckeo!
ICE WATERIN THEIR VEINS
FEuD
159
Kristin Hannah
160
TOP Books
THE WOMEN
Kristin HANNAH
THE GHOST ORCHID
JONATHAN KELLERMAN
THE PRICE YOU PAY
Nick PETRIE
SOMETHING LIKE LOVE
PipeR RAYNE
DESERVING LARA
SUSAN STOKER
BRIDE
At! HazELwooD
IF ONLY! HAD TOLD HER
Laura Nowin
THE YEAR OF THE LOCUST
Terry HAYES
FIRST LIE WINS
ASHLEY ELSTON
HOUSE OF FLAME AND SHADOW
SARAH J, Maas
161
162
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FLOWERS
Mey Cyrus
DOWN’TLET THE OLD MANIN
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SHOULD'VE BEEN A COWBOY
Tosy KeitH
TURN THE LIGHTS BACK ON
Buty Joe.
COURTESY OF THE RED, WHITE...
Tosy KeiTH
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Tosy KeitH
163
Toby Keith
164
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TRACY CHAPMAN
GREATEST HITS
Tracy CHAPMAN
GREATEST HITS 2
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GREATEST HITS: THE SHOW DOG YEARS
Tosy KeiTH
MIDNIGHTS (3AM EDITION)
Taytor SWIFT
ENDLESS SUMMER VACATION
Muey Cyrus
HAZBIN HOTEL ORIGINAL SOUNDTRACK...
Various Artists
JONI MITCHELL AT NEWPORT (LIVE)
Jon MITCHELL
GREATEST
Jim CROCE
165
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HOW DO YOULIKE ME NOW?!
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DOWN’TLET THE OLD MANIN
Tosy KeitH
GIVE ME ONE REASON
TRAcY CHAPMAN
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TOO DRUNK TO KARAOKE
Jumy Burrert & Toby KeitH
167
THE OWNERS OF RUSSIA'S
aig TECH PIONEER YANDEX
—_ ARE SELLING — AT A BIG,
~_KREMLIN-REQUIRED
DISCOUNT
Sim ee es ape
The Dutch parent of pioneering Russian tech
company Yandex is selling its operations in the
country at a steeply discounted price of just over
$5 billion to its Russia-based managers and oil
company Lukoil, one of the biggest deals for
Western-held companies to exit Russia since the
invasion of Ukraine.
The price reflects a 50% discount that Moscow
imposes on companies from “unfriendly” countries
like the Netherlands as a condition of exiting
business in Russia, according to a statement this
week from Nasdag-exchange listed Yandex NV.
It follows drawn-out negotiations that show
the complexities international companies must
navigate if they want to unload their Russian
businesses, which many have been struggling to
do since President Vladimir Putin's February 2022
invasion of Ukraine and the sweeping financial
and economic sanctions that followed.
Yandex, founded in 1997 as Russia's answer to
Google and Yahoo, serves Russian-speaking
customers through its search engine and with
widely used apps for food delivery, car-sharing
and shopping.
Co-founder Arkady Volozh, who had earlier moved
to Israel, resigned as CEO in 2022 after he was hit
with European Union sanctions. He subsequently
condemned Russia's invasion as “barbaric.’"The
Nasdaq exchange suspended trading in Yandex
shares days after the invasion.
“We can welcome the agreement
reached by the shareholders on the sale,”
Kremlin spokesman Dmitry Peskov said
in a conference call with reporters. “The
company’s Russian management will remain
as the main owner. Of course, it’s important
170
for us that the company continues its
operations in this sphere.
“We know that the negotiations were long, and
we welcome their completion,’ he added.
The sale in cash and shares worth 475 billion
rubles would transfer Yandex's core business
— representing more than 95% of its revenue,
assets and employees — to the group of up to
50 managers, Lukoil and business entities owned
by investors Alexander Chachava, Pavel Prass and
Alexander Ryazanov.
The 50% discounted sale price was based
on the average value of Yandex shares
on the Moscow exchange for the three
months ending Jan. 31 — $10.2 billion.
That's after shares had already fallen by
more than half in ruble terms since their
peak before the invasion.
After the sale, Yandex NV would be left with its
international businesses — employing 1,300
people — including self-driving technology and
generative artificial intelligence as well as a data
center in Finland.
Yandex NV Chairman John Boynton said the
company had faced “exceptional challenges” since
the start of the war.
“We believe we have found the best possible
solution for our shareholders, our teams and our
users in these extraordinary circumstances, he
said in a statement.
Boynton said the sale would “allow
shareholders to recover some value for the
businesses that we are divesting, while
unlocking new growth potential for the
international businesses we will retain.’
173
Hurdles for businesses to exit Russia include
finding partners who are not under U.S. or
European sanctions as well as avoiding banned
financial transactions. None of the purchasers
have been sanctioned, Yandex NV said, and the
cash part of the transaction would be conducted
in Chinese yuan outside of Russia.
Companies fleeing Russia not long after the
war began ended joint ventures and wrote off
stakes worth billions. For instance, McDonald's
sold its 850 restaurants to a local franchisee,
while France’s Renault took a symbolic single
ruble for its majority stake in Avtovaz, Russia's
largest carmaker.
Others are still struggling to leave because of the
hurdles put in place by Putin's government, and
some are simply staying put.
The government also has seized assets or
businesses belonging to Western corporations in
Russia, including Danish beer maker Carlsberg's
Baltika Breweries, French yogurt maker Danone,
Finnish energy company Fortum and Germany's
Uniper utility.
174
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177
Nintendo reported healthy sales and profits on
the back of the hit “Super Mario Bros. Wonder”
game, prompting the Japanese video game
maker to raise its full fiscal year forecasts.
Kyoto-based Nintendo Co. said this week that
demand for what it called the first completely
new Super Mario game in the series remained
strong. Sales of the new Zelda game and
“Pikmin 4” also surged.
More than 10.7 million units of the latest
Super Mario game have been sold around
the world since it went on sale in October,
according to Nintendo.
It is banking on upcoming games like “Mario Vs.
Donkey Kong” and “Princess Peach Showtime”
to keep the sales momentum going.
The wea
line by b
revenue
intendo earned 408 billion yen
p nearly 18% from 346 billion yen in the same
eriod the year before. Nine-month sales rose
% to 1.39 trillion yen ($9.4 billion).
tendo al ak down quarterly
umbers, expects a full profit of 440 billion
en ($3 billion), up from an earlier projection
ora 420 billion yen ($2.8 billion) profit.
intendo recorded nearly 433 billion yen in
Drofit a year earlier.
intendo said theme par ike its offerings at
ee in Japan jital for keeping
eople informed about and intefe:
anchise. The Super Ninte: orld park is set
‘0 open next year in Flori
181
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GOOD
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