08Feb

DeNA Has Big Quarter, Acquiree Ngmoco:( Has Layoffs

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Screen Shot 2012-02-08 at 5.10.02 PM

Japanese mobile gaming giant DeNA bought mobile app developer Ngmoco last year for $400 million. Since then, the company has acquired a range of other outfits and worked to tie the San Francisco startup in with everything else it does.

In general, things seem to be improving. The conglomerate just posted a strong third quarter, with net sales up 16%, which in turn boosted the stock price by more than 8% for a valuation of $4.8 billion. However, net income declined versus the same period the previous year, from $106 million to $79.2 million.

And maybe cost savings had something to do with a rumor we heard last week and have since confirmed: Ngmoco recently had a round of layoffs — maybe somewhere above 30 people, according to one source. The number isn’t huge, but among the departed are senior leaders including a director of platform tech and the chief marketing officer, this person tells me. One game has apparently been shut down, while another has been pared down, with some engineers remaining to see it to launch.

Here’s the company’s response today, from the normally pithy Ngmoco chief executive Neil Young: “Armed with the insights we’ve gained from both the Western and Japanese markets and after completing the integration of a series of key acquisitions, we’ve organized our global operations to best support and deliver on our mission to build the leading Global Social Mobile Game Platform company.”

“We’re incredibly proud of our company and our products,” he added. “We thank everyone that has helped us get to where we are today.”

All in all, it seems that Ngmoco went on a big hiring spree, then had to figure out what was working in coordination with everything else that was happening at DeNA. These types of organizational changes happen in business. The good news for those laid off is that there are lots of other mobile app developers who are hiring (including Ngmoco, it appears).



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08Feb

Sprint sold 1.8 million iPhones last quarter, but still lost $1.3 billion

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sprint-iphone

Sprint released its fourth quarter financial results, and as expected, the iPhone played a huge part in the company’s business dealings. In fact, of the 1.6 million new Sprint subscribers last quarter, 720,000 of them are iPhone customers. For those keeping track, that’s 45%. According to Sprint CEO Dan Hesse, “Our strong fourth quarter performance…

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08Feb

Sprint Sold 1.8 Million iPhones Last Quarter, 40 Percent To New Customers

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sprint

Sprint Nextel this morning released its earnings for the fourth quarter of 2011 as well as the full-year results.

The company reported a net loss of $1.3 billion for the quarter, and $2.9 billion for the whole of 2011.

The company reported total net subscriber additions of 1.6 million during the quarter, the best quarterly result in six years and bringing total subscribers to the highest level in Sprint’s history.

Now serving roughly 55 million customers, the company said it is seeing “strong iPhone sales”, selling 1.8 million of the popular smartphone in Q4, of which 40 percent was to new customers.

However, the iPhone launch also had a negative impact on its balance sheet, due to increased equipment net subsidies and sales expenses, the company said.

From the press release:

Strong revenue growth and cost management partially offset the impact of increased equipment net subsidies and sales expense associated with the successful launch of the iPhone. Forty percent of Sprint’s 1.8 million iPhone sales in the fourth quarter were to new customers.

Based on internal estimates, including incremental costs associated with iPhone sales, the combined impact of iPhone and Network Vision costs reduced fourth quarter Adjusted OIBDA margin, which was 10.8 percent, by approximately 8.8 percentage points.

Based on internal estimates, Sprint Nextel says the combined impact of iPhone and Network Vision costs reduced fourth quarter Adjusted OIBDA of $842 million by approximately $684 million.

In case you were wondering: OIBDA is operating income (or loss) before depreciation and amortization. Adjusted OIBDA excludes severance, exit costs, and other special items.



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25Jan

iPhone sales higher than Android last quarter

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apple-vs-android

Over the past few years there’s been an incredible upward trend for Android in the smartphone market. We’ve gotten too used to Google’s OS taking a bigger chunk of sales than iOS. It’s not like any of us were particularly surprised either. Stick a platform on countless devices against little to no competition from anyone but Apple and you’re going to…

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11Jan

Sony’s Music Unlimited Service To Land On iOS This Quarter

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iphonemu

Apple users probably have more than enough media on their iDevices to keep them entertained on the go, but Sony Network Entertainment President Tim Schaaff thinks there’s room for another media service on iOS. According to VentureBeat, the company’s Music Unlimited streaming service will be hitting Apple’s mobile platform some time in Q1 2012.

In addition to simply streaming music from the Music Unlimited catalog, users will be able save cache their playlists for offline streaming at a later time. The service is already available on Android devices (not to mention several of Sony’s own products) so it’s more than a little surprising that it will soon make the iOS leap.

It’s especially puzzling because there is already no shortage of competitors in the streaming music space. As VentureBeat notes, rivals Spotify and Rdio have been on iOS for quite some time now, and already offer a similar feature set.

Really, it’s problem that all new entrants to this space have to deal with. As Eric Schmidt would probably say, it all comes down to differentiation. Rara, a relatively new streaming music service that launched this past December, is a great example. While they peg their service as being tuned for the non-tech savvy, their other main differentiator was that they launched simultaneously in multiple markets worldwide where some of the bigger services have yet to make a splash. While it’s still early to say if the approach is actually sustainable, I’ve got to give them credit for taking a different approach.

In this case, Sony’s appearance on iOS probably holds considerable appeal for people who have already invested heavily into the Sony media/hardware ecosystem, but it’s going to be a tough sell for anyone who doesn’t have some sort of pre-existing allegiance to the Japanese giant. I wish them the best — more competition is always good — but I look forward to seeing how many iOS users adopt it.



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