Japan’s Nintendo has said that production of its popular Switch gaming console could be hit by global chip shortages, following a similar warning from rival Sony last week.
At its full-year results on Thursday, Nintendo forecast a 12 percent drop in sales of its flagship Switch in the financial year ending in March 2022, citing potential issues with procuring important components.
Nintendo’s comments contrast with its performance over the past 12 months, when the Kyoto-based company’s fortunes were boosted by coronavirus pandemic restrictions that forced entire nations into lockdown and increased demand for home-based entertainment.
The company said it expects to sell 25.5 million Switch consoles for the fiscal year ending next March. That follows a blockbuster year in which Nintendo sold 28.8 million units and benefited from roaring demand for popular first-party titles such as Animal Crossing: New Horizons and The Legend of Zelda: Breath of the Wild. Nintendo also expects sales of Switch software to fall 18 percent to 190 million units.
Worries over the potential hit from chip shortages are broadening. The initial focus of concern was the automotive industry, but analysts see a wider range of manufacturers being affected.
Production “might be affected by obstacles to the procurement of parts, including the increase in global demand for semiconductor components,” Nintendo said in its financial statement.
Hiroki Totoki, Sony’s chief financial officer, said last week that the group would not be able to dramatically increase the production of its new PlayStation 5 console, predicting that the semiconductor shortage would continue throughout the financial year that started in April.
Nintendo, which is famous for its overly conservative guidance, projected its net profit would fall 29 percent to ¥340 billion ($3.1 billion) during the 2021-2022 fiscal year. That came in below analysts’ forecasts of ¥412 billion ($3.7 billion), according to S&P Global Market Intelligence. Nintendo expects revenue to fall 9 percent to ¥1.6tn ($14.6 billion).
Nintendo also said it plans to appoint Chris Meledandri, the chief executive of animation studio Illumination and producer of the Despicable Me franchise, as a non-executive director pending shareholder approval in June.
The choice of Meledandri fits with Nintendo’s recent shift in strategy as its chief executive Shuntaro Furukawa has sought ways to more effectively monetize Nintendo’s intellectual property outside its games console business.
Those efforts include the recent opening of the Super Nintendo World attraction at the Universal Studios Japan theme park in Osaka. In presentations to investors, Nintendo has also described plans for an animated Mario film.
For the year that ended in March, profits from its IP and mobile games rose 11.3 percent, helping Nintendo’s annual net profit surge 86 percent to an all-time high of ¥480 billion ($4.39 billion).
This week, Microsoft and Bethesda confirmed that Starfield will be coming exclusively to Xbox Series X/S and PC next year. And while that kind of exclusivity deal had been hinted at and heavily suspected by many since Microsoft’s $7.5 billion acquisition of Bethesda’s parent company, the announcement still came as sad news for PlayStation 5 owners hoping to play the upcoming space epic.
Bethesda Senior Vice President of Marketing and Communications Pete Hines said he can certainly understand how PS5 owners must feel. In a video interview with GameSpot Wednesday, he offered his sympathy and an apology to PS5 owners upset about the move.
“I don’t know how to allay the concerns of consumer and PlayStation 5 fans other than to say I’m a PlayStation 5 player as well and I’ve played games on that console and there’s games I’m going to continue to play on it,” Hines said. “But if you want to play Starfield [it’s] Xbox and PC. Sorry. All I can say is I apologize because I’m certain that that’s frustrating to folks, but there’s not a whole lot I can do about it.”
Look on the bright side
At the same time, Hines seemed to suggest that Xbox Cloud Gaming could provide a way for players who don’t have an Xbox or a gaming PC to access Starfield through the “Xbox ecosystem.” Hines mentioned that Xbox chief Phil Spencer “has talked about how they’re looking to expand that and… looking to bring Xbox games to folks who don’t own a Series S or X or even a PC but want to play the games that we’re bringing to Game Pass.” That’s an apparent reference to Microsoft’s recently announced plans to expand Xbox Cloud Gaming to many Smart TVs and generic web browsers like Chrome, Safari, and Edge.
Hines also said Starfield‘s exclusivity could help its developers focus on the gameplay experience rather than compatibility with additional platforms. “I’m here to tell you, and any [developer] will tell you this, [when] you go to fewer platforms, your development gets more streamlined,” he said. “You’re not worrying about, ‘Well, how does it work on this box versus how does it work on that box…’ We’re not making it on that box, so it just needs to run as well as possible on this one [and] on a PC. A narrow focus always helps…”
That statement echoes comments Bethesda producer Todd Howard made to The Telegraph this week, when he said that “by focusing on those platforms [Xbox and PC], you really get to lean in a lot on making it the best it can be for those systems.”
In that interview, Howard also said he had “a little bit” of reservation about not having a PS5 version of Starfield. “You don’t ever want to leave people out, right?” But Howard also suggested that Xbox Cloud Gaming means “we see it actually opening up more and more and more so that people’s ability to play our games—via Game Pass and other things—their ability to play our games doesn’t go down. It goes up dramatically… I will just say I want everybody to have the ability to play it in some fashion.”
Back in October, Howard said it was “hard to imagine” a game like the upcoming Elder Scrolls VI being exclusive to Microsoft’s platforms. But that was before Microsoft’s acquisition of Bethesda was finalized in March, at a time when Howard admitted the two companies hadn’t fully discussed the details of any multiplatform publishing agreements. “We haven’t gone through all of that, to be honest,” he said at the time.
Everything we’ve feared about the Facebookening of Oculus and its virtual reality ecosystem is starting to come true.
A Wednesday blog post has confirmed that Oculus, the VR-specific arm of Facebook, is now displaying advertisements in select VR games and apps to their players. As Facebook has since emphasized in emails sent directly to the press, these ads will leverage “first-party info from Facebook to target these ads”—and FB has yet to announce any limitations for what Facebook account data may be leveraged. (Ars Technica was not briefed about this news ahead of the announcement, and we did not get the opportunity to request the comments that other members of the media received.)
FB’s additional clarifying statements about biometric and use data inside of VR are carefully worded to clarify that the company does examine specific use data as it sees fit, and for now, that data won’t apply to its new advertising platform. Facebook says it processes and keeps track of the following data, uploaded by users while connected to any Oculus services:
“Weight, height, or gender information that you choose to provide to Oculus Move [a pre-installed fitness suite]”
“Movement data” that Facebook uses to “keep you safe from bumping into real-world objects”—in other words, every single way your head and hands move around within VR and relative spatial data about the rooms you play VR within, which researchers have concluded can be used to create a recognizable biometric profile after only minutes of training
“The content of your conversations with people on apps like Messenger, Parties, and [Oculus] chats or your [Oculus] voice interactions”
For now, Facebook continues to tell users that “data that are processed on the device” are not uploaded to Facebook servers, which include “raw images” from Oculus headset sensors and “images of your hands” in its hand-tracking interface. Meanwhile, if you’d like to know how much of your use data inside of Facebook (and Instagram and other FB-connected services) might be leveraged by its combined advertising network, clear the rest of your day’s schedule and dive in.
Today’s announcement emphasizes that this advertising option is meant to generate “new ways for developers to generate revenue. The thing is, Facebook itself created a revenue blocker for VR game and app creators up until now, since its “app policies” agreement has always forbidden third-party advertising services inside of any products. Now that Facebook can operate the advertising platform and skim revenue off the top, things have changed.
How rapidly will the downstream soon run?
Facebook itself suggests that advertising is a key element in its VR business going forward: “This is a key part of ensuring we’re creating a self-sustaining platform that can support a variety of business models.” It also admits that product pricing can vary with advertising in the mix: “It helps us continue to make innovative AR [augmented reality]/VR hardware more accessible to more people.”
That news is unsurprising to anyone who follows Facebook’s quarterly financial results, which revolve largely around its targeted advertising platforms that deftly move from app to app and from service to service. Meanwhile, rival VR hardware manufacturers like HTC have loudly shot back at Facebook’s cheap-hardware sales approach.
Recently, HTC Vive general manager Dan O’Brien said the following to Ars Technica:
When pressed about Oculus as VR’s top-selling consumer option, O’Brien was frank: HTC wants to make its VR money from upfront purchase revenue, not from “downstream” opportunities. He described at length the business model of “some brands” subsidizing expensive hardware at a lower MSRP “with the hope of monetizing downstream on shared services” and “maybe using data-mining tactics to understand user behavior and then run a program that also generates downstream income.”
But also: notice the official mention of augmented reality in Facebook’s Wednesday pitch. The most recent Facebook Connect presentation revolved around Oculus research and hardware, included a wide-open pitch hosted by longtime Oculus lead Michael Abrash. He spoke of the company’s ambitions for Google Glass-like hardware that people may one day wear in public, full of real-time virtual images embedded in your nearby surroundings and high-level processing of all nearby audio and conversations. While we aren’t surprised that Facebook might want its eventual always-on-your-face device to tap into its advertising ecosystem, today’s announcement is a clear warning: if such a product should reach the market, it, like the $299 Oculus Quest 2, could very well be priced to move—but at a cost outside of shoppers’ dollars and cents.
As a reminder, all new Oculus-branded hardware going forward requires a Facebook account to work. Meanwhile, hardware sold before that rules change went into effect will require a ToS agreement beginning January 1, 2023. And the company’s combined ToS can penalize users for creating phantom or dummy Facebook accounts for the sole purpose of enabling connected Oculus VR features; by agreeing to that ToS, Facebook can void your account and its related purchases, should they be found in violation of its rules.
And as Facebook continues acquiring VR-focused video game developers, particularly the makers of megahit Beat Saber, those fully owned development houses could reasonably become prime targets for Facebook’s internal advertising tools. Big companies don’t acquire successful, smaller ones for charity, after all.
We aren’t getting a second season of Picard until next year due to the pandemic delaying production, but Paramount+ has been dribbling out images and short teasers in the meantime. The latest teaser gives us our first look at the return of fan-favorite Q (John de Lancie), an extradimensional being with power over time, space, the laws of physics, and reality itself.
(Spoilers for S1 below.)
As I wrote in my review last year, the series is set 20 years after the events of Star Trek: Nemesis. The first season opened with Jean-Luc Picard (Patrick Stewart) having retired to the family vineyard. His bucolic existence was interrupted by the arrival of a mysterious woman named Dahj (Isa Briones) who pleaded for his help. Alas, Picard failed to save her. She was killed in front of him by Romulan assassins belonging to a radical sect known as the Zhat Vash, who is dedicated to eradicating all artificial life forms. Picard discovered that Dahj was actually a synthetic, technically Data’s “daughter,” and she had a twin sister, Soji, who was also in danger.
Resolved to save Soji, Picard asked Starfleet for a ship, but he had been gone a long time, and his entreaties were rebuffed. Never one to admit defeat, Picard amassed his own scrappy crew over the next few episodes for his unauthorized rescue mission. The crew included Cristobal Rios (Santiago Cabrera), a skilled thief and pilot of the ship La Sirena; Raffi (Michelle Hurd), a former Starfleet intelligence officer and recovering addict; Dr. Agnes Jurati (Alison Pill); and a Romulan refugee, Elnor (Evan Evagora).
Soji was found working at a Romulan reclamation site within a decommissioned Borg cube. She had become romantically involved with a Romulan named Narek (Harry Treadaway) who was secretly a member of the Zhat Vash. His mission was to seduce Soji in an attempt to discover the location of her home planet, with the ultimate goal of destroying all the synthetics there.
Of course, Picard and his ragtag crew ultimately foiled that plan. And it was revealed over the course of the season that Picard was dying, although since the show had already been renewed for a second (and possibly third) season, we didn’t get an honorable final farewell for the character. Instead, Picard’s consciousness was preserved and transferred to a snazzy new synthetic body. The Federation lifted the ban on synths, and La Sirena and her crew headed off for new adventures.
Season 2 brings back the main cast, including Brent Spiner, although he will be playing Dr. Altan Inigo Soong instead of Data. Michael Chabon has departed as showrunner (he remains on the show as executive producer), replaced by Akiva Goldsman and Terry Matalas. Last year’s notable guests included Jonathan Frakes and Marina Sirtis, reprising their roles as William Riker and Deanna Troi, so there were plenty of rumors about the possible return of other Star Trek: The Next Generation characters. Patrick Stewart personally invited Whoopi Goldberg to reprise her role as Guinan in S2 during an appearance on The View, and Paramount dropped an initial S2 teaser in April, on First Contact Day, that strongly hinted Q would return and the second season would play with time.
That teaser was just a tour through Picard’s empty home, set to Stewart’s voiceover ruminations. “The true final frontier is time,” Stewart/Picard reflected. “Time can turn even our most impulsive, our most ill-considered actions into history. What we do in a crisis often weighs upon us less heavily than what we wish we had done. What could have been. Time offers so many opportunities—but never second chances.”
The teaser ended with a Queen of Hearts playing card evaporating into dust, leaving just the “Q,” followed by de Lancie’s unmistakable voice chuckling and saying, “The trial never ends.” As every ST:TNG fan knows, Q notoriously put humanity on trial in that show’s finale, “All Good Things…,” with Picard forced to prove humanity’s potential to the Q Continuum. De Lancie confirmed he was indeed shooting scenes for seasons 2 and 3 of Picard (they are being filmed simultaneously) in a series of Cameo messages, of all things. He will appear in as many six episodes. In one message, de Lancie revealed that when he was first asked to return, he requested that the producers not make him wear tights again. (“You just don’t want a 70-year-old guy running around in tights.”)
The new teaser opens with Picard returning to his family vineyard, calling for Laris (Orla Brady), who strangely isn’t there. As a distraught Picard wonders what is happening, we hear Q answer, “Excellent question, Jean-Luc,” before commenting that Picard looks “a bit older than imagined.” And then Q appears, also looking older and more distinguished—and not wearing tights, per de Lancie’s request. “Welcome, my friend, to the very end of the road not taken,” Q continues.
Time has been broken, it seems, and we get glimpses of all the changes that have been wrought by… whatever it is Q has done to the flow of time. We see Elnor and Raffi fleeing for their lives, Soji dressed all in white and looking very VIP, Rios in a snazzy new Federation uniform with new insignia, and Agnes Jurati in civilian garb. Most shocking of all: Seven of Nine awakens in an unfamiliar apartment, and when she looks in the mirror, her Borg implant is gone. Ever the optimist, Picard insists, “We can save the future, and I will get us home. Together.”
The first season of Picard is available for streaming on Paramount+.