People are so excited for the next-gen Switch, they're likely holding off on buying Nintendo's current consoles and games. At least that's what the company's latest earnings report seems to indicate. For the quarter ending on June 30, Nintendo posted a net profit of 80.9 billion Japanese Yen, which is higher than its forecast but over 50 percent lower than its net profit for the same period last fiscal year. In addition, the company said it only sold 2.1 million Switch consoles for the quarter. That means it experienced a 46.3 percent decline on unit sales year-on-year. Even its games didn't sell well, seeing as Nintendo posted a software sales figure that's 41.3 percent lower than last fiscal year's at 30.64 million units sold.
In its report, Nintendo admits that the low sales figures for games was caused by the lack of big releases, such as the previous year's The Legend of Zelda: Tears of the Kingdom. The Super Mario Bros. Movie also helped "energize" its business back then. But since hardware sales for this quarter are similar to the previous one's, Nintendo considers its Switch sales to be stable.
Nintendo is expected to launch its "Switch 2" console soon. It was expected to come out sometime this year, but according to reports published in the previous months, it will be released in early 2025 instead. There's still very little known about the upcoming console, but rumors say it will have backwards compatibility, as well as 4K capabilities.
This article originally appeared on Engadget at https://www.engadget.com/nintendo-profits-fall-55-percent-as-people-save-their-cash-for-the-switch-2-140019403.html?src=rss
In a crushing quarterly update, Intel disclosed that it will cut more than 15 percent of its workforce. The layoffs, which could impact over 15,000 jobs, are part of the company's $10 billion cost-reduction plan to recover financial stability. Intel posted a second-quarter net loss of $1.6 billion, plunging from the net income of $1.5 billion it reported in the same period of 2023.
CEO Pat Gelsinger addressed employees with a memo acknowledging the scope of today's announcements. "This is painful news for me to share," he said. "I know it will be even more difficult for you to read. This is an incredibly hard day for Intel as we are making some of the most consequential changes in our company’s history."
As well as the job cuts, the cost-reduction plan includes creating separate financial reporting for Intel Products and Intel Foundry. The Intel Foundry branch saw an operating loss of $2.8 billion in Q2, even more than the $1.8 billion operating loss it saw during the second quarter last year. Intel has been in the process of overhauling its foundries to make them more competitive. In the interim, it has had to rely on other companies for some production. TSMC, the same manufacturer used by Apple, Qualcomm and AMD, is producing its new Lunar Lake chips.
The company took an additional hit in the public eye when its 13th- and 14th-generation desktop CPUs began experiencing instability issues. While a fix is expected this month to prevent any further problems, any damage that the microcode errors caused to CPUs appears to be permanent.
This article originally appeared on Engadget at https://www.engadget.com/intel-will-cut-over-15000-jobs-in-a-sweeping-cost-cutting-effort-220951016.html?src=rss
In a crushing quarterly update, Intel disclosed that it will cut more than 15 percent of its workforce. The layoffs, which could impact over 15,000 jobs, are part of the company's $10 billion cost-reduction plan to recover financial stability. Intel posted a second-quarter net loss of $1.6 billion, plunging from the net income of $1.5 billion it reported in the same period of 2023.
CEO Pat Gelsinger addressed employees with a memo acknowledging the scope of today's announcements. "This is painful news for me to share," he said. "I know it will be even more difficult for you to read. This is an incredibly hard day for Intel as we are making some of the most consequential changes in our company’s history."
As well as the job cuts, the cost-reduction plan includes creating separate financial reporting for Intel Products and Intel Foundry. The Intel Foundry branch saw an operating loss of $2.8 billion in Q2, even more than the $1.8 billion operating loss it saw during the second quarter last year. Intel has been in the process of overhauling its foundries to make them more competitive. In the interim, it has had to rely on other companies for some production. TSMC, the same manufacturer used by Apple, Qualcomm and AMD, is producing its new Lunar Lake chips.
The company took an additional hit in the public eye when its 13th- and 14th-generation desktop CPUs began experiencing instability issues. While a fix is expected this month to prevent any further problems, any damage that the microcode errors caused to CPUs appears to be permanent.
This article originally appeared on Engadget at https://www.engadget.com/intel-will-cut-over-15000-jobs-in-a-sweeping-cost-cutting-effort-220951016.html?src=rss
Microsoft has withdrawn from OpenAI's board of directors a couple of weeks after the European Commission revealed that it's taking another look at the terms of their partnership, according to the Financial Times. The company has reportedly sent OpenAI a letter, announcing that it was giving up its seat "effective immediately." Microsoft took on an observer, non-voting role within OpenAI's board following an internal upheaval that led to the firing (and eventual reinstatement) of the latter's CEO, Sam Altman.
According to previous reports, Apple was also supposed to get an observer seat at the board following its announcement that it will integrate ChatGPT into its devices. The Times says that will no longer be the case. Instead, OpenAI will take on a new approach and hold regular meetings with key partners, including the two Big Tech companies. In the letter, Microsoft reportedly told OpenAI that it's confident in the direction the company is taking, so its seat on the board is no longer necessary.
The company also wrote that its seat "provided insights into the board's activities without compromising its independence," but the European Commission wants to take a closer look at their relationship before deciding if it agrees. "We’re grateful to Microsoft for voicing confidence in the board and the direction of the company, and we look forward to continuing our successful partnership," an OpenAI spokesperson told The Times.
Microsoft initially invested $1 billion into OpenAI in 2019. Since then, the company has poured more money into the AI company until it has reached $13 billion in investments. The European Commission started investigating their partnership to figure out if it breaks the bloc's merger rules last year, but it ultimately concluded that Microsoft didn't gain control of OpenAI. It didn't drop the probe altogether, however — Margrethe Vestager, the commission's executive vice-president for competition policy, revealed in June that European authorities asked Microsoft for additional information regarding their agreement "to understand whether certain exclusivity clauses could have a negative effect on competitors."
The commission is looking into the Microsoft-OpenAI agreement as part of a bigger antitrust investigation. It also sent information requests to other big players in the industry that are also working on artificial intelligence technologies, including Meta, Google and TikTok. The commission intends to ensure fairness in consumer choices and to examine acqui-hires to "make sure these practices don’t slip through [its] merger control rules if they basically lead to a concentration."
This article originally appeared on Engadget at https://www.engadget.com/microsoft-and-apple-give-up-their-openai-board-seats-120022867.html?src=rss
Tesla has announced its second quarter figures, with the company producing 410,831 and delivering 443,956 EVs in Q2. Production decreased by a little over 20,000 units compared to quarter one, but deliveries increased by nearly 15 percent. However, its distribution numbers are 4.8 percent lower than the same period in 2023. Tesla notes it "deployed 9.4 GWh of energy storage products in Q2, the highest quarterly deployment yet."
The car manufacturer's first quarter of 2024 was the first time since 2020 that the company reported a year-over-year sales drop. The car manufacturer blamed the decrease partly on "the early phase of the production ramp of the updated Model 3 at our Fremont factory and factory shutdowns resulting from shipping diversions caused by the Red Sea conflict and an arson attack at Gigafactory Berlin." A group of people called "Volcano Group" claimed responsibility for cutting the power to Tesla's factory outside Berlin. The plant is Tesla's only one in Europe and had to close for a week while power was restored.
Notably, on April 1 Tesla increased the price of every Model Y in the US by $1,000, but we'll have to wait until July 23 to see if it impacted the company's Q2 financial results. Earlier this year, Tesla CEO Elon Musk announced that a lower-cost EV should arrive in the second half of 2025, but that its production might lower sales growth this year.
This article originally appeared on Engadget at https://www.engadget.com/teslas-year-over-year-deliveries-decreased-for-the-second-quarter-in-a-row-144057024.html?src=rss
Tesla has announced its second quarter figures, with the company producing 410,831 and delivering 443,956 EVs in Q2. Production decreased by a little over 20,000 units compared to quarter one, but deliveries increased by nearly 15 percent. However, its distribution numbers are 4.8 percent lower than the same period in 2023. Tesla notes it "deployed 9.4 GWh of energy storage products in Q2, the highest quarterly deployment yet."
The car manufacturer's first quarter of 2024 was the first time since 2020 that the company reported a year-over-year sales drop. The car manufacturer blamed the decrease partly on "the early phase of the production ramp of the updated Model 3 at our Fremont factory and factory shutdowns resulting from shipping diversions caused by the Red Sea conflict and an arson attack at Gigafactory Berlin." A group of people called "Volcano Group" claimed responsibility for cutting the power to Tesla's factory outside Berlin. The plant is Tesla's only one in Europe and had to close for a week while power was restored.
Notably, on April 1 Tesla increased the price of every Model Y in the US by $1,000, but we'll have to wait until July 23 to see if it impacted the company's Q2 financial results. Earlier this year, Tesla CEO Elon Musk announced that a lower-cost EV should arrive in the second half of 2025, but that its production might lower sales growth this year.
This article originally appeared on Engadget at https://www.engadget.com/teslas-year-over-year-deliveries-decreased-for-the-second-quarter-in-a-row-144057024.html?src=rss
A Chinese state-owned power company is splashing out 80 billion yuan ($11 billion) on an energy base that will generate electricity from solar, wind and coal sources. China Three Gorges Renewables Group, a subsidiary of the country’s largest hydropower company, plans to build a plant with a 16-gigawatt capacity and a five-gigawatt storage facility, Bloomberg reports.
This is part of China’s aim to build 455 gigawatts worth of renewable energy projects in the desert by 2030. This plant is being constructed in Inner Mongolia, which will get 135 gigawatts of the total planned output.
The China Three Gorges Corporation is looking to diversify its energy sources as building large hydro dams is becoming less feasible. According to Three Gorges, wind and solar generation from the plant will depend on grid accessibility. The coal plant is set to start operations in three years.
It’s somewhat disappointing that the new plant will have a coal power element, though it's not fully surprising given the way China has bristled at renewable energy commitments during climate summit talks with other countries. As Bloomberg notes, China has been struggling to put all of its clean energy into the power grid. It often relies on coal when renewable sources like solar and wind aren’t available.
This article originally appeared on Engadget at https://www.engadget.com/china-is-plowing-11-billion-into-a-solar-wind-and-coal-energy-project-120007712.html?src=rss
Volkswagen and EV company Rivian have entered a new partnership, and the total price tag for the collaboration could reach an eye-popping $5 billion. The businesses are launching a joint venture to develop platforms for “software-defined vehicles.” According to the press release announcing the deal, the joint venture's work will focus on Rivian's zone-based approach to electric vehicles, which significantly reduces the complexity of the wiring and electronics. Both Rivian and Volkswagen are expected to debut vehicles using their combined forces as a result of the partnership; the release notes that each of the brands will continue operating their vehicle businesses separately.
The massive dollar figure for this collaboration is broken up into components. Volkswagen is making a baseline $1 billion investment in Rivian the EV company, followed by two more expected investments of the same amount in 2025 and 2026. The car brand also anticipates putting a total of $2 billion into the joint venture, some at the launch and some as a loan in 2026.
This work will see Volkswagen adopting Rivian's signature zonal architecture for its own future machines. Today's announcement follows hot on the heels of the brand integrating ChatGPT into many of its car models.
Rivian has seen some financial struggles this year, leading the company to abandon plans for a plant in Georgia and to cut 10 percent of its salaried staff. A deal of this size with a leading traditional automaker should help the company to stabilize as it works towards its next generation of electric vehicles.
This article originally appeared on Engadget at https://www.engadget.com/volkswagen-and-rivian-agree-to-5-billion-partnership-230421407.html?src=rss
Jabra has been a mainstay in the true wireless earbuds category since 2018, but it won’t be any longer. Shortly after revealing two new products in its Elite lineup this week, parent company GN announced that it was shutting down its consumer earbud business to focus on other audio devices. The news was a shock given the timing and quickly put a damper on any excitement around the second-generation Elite 10 and Elite 8 Active.
“This announcement by GN is in an effort to concentrate resources and efforts on Jabra's enterprise products within audio, including enterprise-grade true wireless earbuds, as well as video and OTC hearing devices,” a Jabra spokesperson told Engadget. “While this puts a stop to the long-term development of the Elite and Talk product lines, it does not mean product names will cease to exist and the existing products will continue to be available. Customers will be able to buy them in the usual online and retail channels, as well as Jabra.com, and products will be supported throughout their lifetime, as normal.”
Jabra wasn’t the first company to make true wireless earbuds, but it was among the first to make a lasting impression. In 2018, it debuted the Elite 65t, the first set of its kind that I felt was truly compelling. Jabra’s version was smaller and therefore more comfortable than its rivals. They also offered better sound quality and more reliable connectivity than a lot of their existing competition.
With subsequent releases, the company revised its formula, assisted consistently by its parent company. GN’s decades of expertise in hearing aids provided helpful insights for Jabra’s true wireless products, especially when it came to ergonomic design. Jabra was among the first to drastically reduce the size of its buds, while some of the competition still struggles to balance size and fit even today.
Jabra Elite 75t and Elite 65t.
Billy Steele for Engadget
Jabra seemed to carve out a niche for itself with earbuds that offered a full set of features at prices below its main rivals like Apple, Bose and Sony. And until around 2020, the company was successful in offering a compelling alternative to the big-name brands. At that time, many earbud companies were still trying to fine-tune their formulas to offer the most complete set of buds with the best performance. Jabra’s follow-up, the Elite 75t, was what I described as “the leap from good to great.” But even then, the 75t lacked active noise cancellation (ANC) despite a smaller, more comfortable design, improved sound and longer battery life.
Ultimately, Jabra could never quite match the likes of Bose and Sony on ANC performance and overall audio quality. Despite this, Jabra was positioned fourth in the earbud market at the end of 2023, according to Global Market Insights. This put it behind Apple, Samsung and Sony in terms of overall market share.
Jabra continued to expand its lineup with affordable alternatives that went as low as $80. Perhaps this extension contributed to its downfall: the company currently offers five different models as part of its lineup with significant overlap between some of them.
GN explained this week that its “re-focusing” towards more premium true wireless products in 2023 with the Elite 10 and Elite 8 Active had led to “a stronger profitability than before.” However, it saw the writing on the wall: the earbud market is becoming increasingly crowded and competitive. The company knows that the investment required to develop enough “future innovation” that would maintain its position wasn’t sustainable. So, even on the heels of its latest Elite product launch, Jabra is bowing out.
“We have demonstrated that we can compete in even the most challenging categories,” CEO of GN Store Nord Peter Karlstromer said in a statement. “The markets, though, have changed over time, and it is today our assessment that we cannot generate a fair return on investment compared to the many other opportunities we have within our hearing, enterprise, and gaming businesses.”
Jabra Elite 10 (2nd gen)
Jabra
In what should be an exciting time for the company following the introduction of new models, Jabra is instead heading towards the end. The company has committed to supporting the products “for several years,” but I wouldn’t expect any new features. Instead, we’re likely to see subtle updates aimed at maintenance rather than significant improvements. It’s going to be a tough sell for your newly announced product when you’re already packing up shop.
Now, the company will focus on enterprise, over-the-counter hearing assistance and gaming devices. But that doesn’t mean Jabra will stop making earbuds entirely. The company still believes in true wireless earbuds, even though it has realized the consumer market isn’t a sustainable area for future investment. “True wireless innovation is still at the core of many of Jabra's products, so the company will remain in the earbuds market through other product lines,” a spokesperson explained.
But, it’s time for the company to move on. Several releases after the Elite 65t, Jabra still isn’t on par with Bose and Sony when it comes to noise-canceling abilities or overall sound quality. Not that it was ever far off, but it wasn’t nipping at their heels either.
Jabra may have been one of the first to actually deliver a reliable set of true wireless earbuds, but it squandered that lead by failing to surpass the competition. It introduced conveniences like multipoint Bluetooth connectivity way ahead of its rivals, a feature that is now common among new products. Even its latest two models come with an LE Audio-transmitting case that will allow you to send sound from devices with a USB-C or 3.5mm jack. Not an industry first, but another area where the company is an early adopter.
At some point along the way though, Jabra’s earbuds went from great to good. Not because they actually declined in quality, but because they just no longer stand out from the competition.
This article originally appeared on Engadget at https://www.engadget.com/so-long-jabra-earbuds-it-wasnt-your-fault-190039565.html?src=rss
Jabra is exiting the consumer earbuds business. The move is shocking, as Jabra's parent company made the announcement at the same time it unveiled new models of its Elite earbuds. Peter Karlstromer, CEO of parent company GN, said the decision is “part of our commitment to focus on attractive markets where we can deliver profitable growth and strong returns.”
The company will discontinue the Jabra Elite (consumer earbuds) and Talk (mono Bluetooth) product lines. In late 2023, it pivoted the Elite line towards the premium segment in a move designed to compete with industry heavyweights Apple, Sony and Bose. However, the company lamented that its target markets “have changed over time.” Its current assessment is that “we cannot generate a fair return on investment compared to the many other opportunities we have within our Hearing, Enterprise, and Gaming businesses.”
Jabra will reduce the inventory of the to-be-discontinued products, and it expects to complete the wind-down by the end of the year. However, GN says it will service and support its devices “for several years.”
Although a bit farther under the radar than obvious competitors like AirPods, Jabra made some high-quality audio gear. Engadget’s audio expert Billy Steele called the 2021 Jabra Elite 3 “the new standard for affordable wireless earbuds,” as the company struck an alluring balance between quality and value.
Update, June 12 2024, 1:15PM ET: This story and headline have been updated to note that Jabra's parent company made the announcement it was exiting the headphone business the same day it released new earbuds, not the day after.
This article originally appeared on Engadget at https://www.engadget.com/jabra-says-its-exiting-the-consumer-headphones-business-a-day-after-launching-new-earbuds-164518215.html?src=rss