Microsoft officials have confirmed that the company is making another round of job cuts today, according to reports from TechFlash and PaidContent. Rumors of the cuts have been widely circulated. The software giant is eliminating 800 jobs around the world, TechFlash reports, citing Microsoft spokesman Lou Gellos as saying that the cumulative number of layoffs go beyond the planned 5,000 cuts announced in January. About a quarter of the job cuts are reportedly in Washington, where Microsoft’s headquarters are. While early reports on adoption of the company’s new Windows 7 operating system are positive, the latest round of cuts may still have to do with the mobile tech-related reasons for staff reductions that the company cited in January. UPDATE: Microsoft employees are now confirming online that they’ve been let go–more below the fold.
In January, Microsoft announced plans to cut 5,000 jobs following a $465 million shortfall in OEM revenue. According to the company’s 10-Q filing from then:
The decline in OEM revenue reflects an 11 percentage point decrease in the OEM premium mix to 64 percent, primarily driven by growth of licenses related to sales of netbook PCs, as well as changes in the geographic and product mixes.
The fact that profit margins are razor thin in the red-hot netbook category has plagued Microsoft all year, and the company’s Windows Mobile strategy is showing signs of profound weakness. While our calls for confirmation of the latest round of job cuts have yet to be returned, it’s entirely likely that the shrinking level of opportunity that Microsoft has in the mobile arena continues to be the explanation for staff reductions. We will update this report as more details become available.
UPDATE: Don Dodge, from Microsoft’s Emerging Business Team, has confirmed on his blog that he was among the employees let go today. “This was a total surprise to me, and management offered no explanation,” he reports.
481 days. That’s how long it took the App Store to go from opening its virtual doors with 500 applications on July 11, 2008 to a catalog of more than 100,000 applications downloaded more than 2 billion times.
Not surprisingly, the folks at Apple are pleased.
“The App Store, now with over 100,000 applications available, is clearly a major differentiator for millions of iPhone and iPod touch customers around the world,” said Philip Schiller, Apple’s senior vice president of Worldwide Product Marketing. “The iPhone SDK created the first great platform for mobile applications and our customers are loving all of the amazing apps our developers are creating.”
The amazing thing is that it’s likely not even Apple knew just how successful the App Store and SDK would be or how it would spawn so many competitors (GigaOM Pro, subscription required).
In June 2007, it was Apple CEO Steve Jobs talking up a different method application development for the iPhone:
“Our innovative approach, using Web 2.0-based standards, lets developers create amazing new applications while keeping the iPhone secure and reliable.”
Imagine for a moment if Apple had stuck to that ideal of a web-based platform. I believe it would be called the Palm Pre.
Of course, it’s possible that Apple knew all along that there would be a real SDK for the iPhone OS, almost assuredly so for major partners like game developers. Apple again pushed that gaming concept for iPhone OS with today’s announcement, too. EA Mobile VP Travis Boatman chimed in on the press release, saying that the App Store has “forever changed the mobile gaming industry and continues to improve.” You can bet Nintendo and Sony believe at least the first part of that statement, much to their chagrin.
What you didn’t find in the press release was what, exactly, is being done to improve the flawed approval process. While Apple talks about addressing issues, there is no evidence of real, systemic change. As the App Store moves inevitably towards 500,000, and then its millionth application, you have to wonder if the App Store can withstand the stress of its own incredible success.
Verizon really does want to differentiate itself from the pack, doesn’t it? Aside from getting sued for allegedly comparing its 3G network coverage and allowing free GPS navigation on a smartphone, it’s treading where Sprint has decided not to walk — smartphone tethering. The Motorola Droid will indeed support Internet tethering, Sascha Segan at Gearlog reports, allowing customers to use their Android handset as a 3G modem. Sascha expects this to be a $15 monthly fee, which sounds about right based on Verizon’s current offerings. The Broadband Access Connect plan should hit the Droid in early 2010.
About four years ago, I used a phone as a wireless broadband modem all day long. It worked perfectly well over USB or over Bluetooth. But I was in a relatively fixed location, and I had access to an electrical outlet for my computer, which in turn charged my phone over USB. These days, the only times my mobile devices see outlets is overnight, so I’m not so sure I’d rely on phone tethering for all of my 3G needs. For occasional use it would work just fine for me. And I do have Internet tethering on my iPhone as a backup, which really saved the day once before. I’m curious — would you consider using the Droid or another tethered phone for a primary 3G connection?
We’ve already heard that the top-tier Windows phone, the HTC HD2, would be coming to the U.S. in early 2010, and having received word from HTC, it is now official. The HD2 is soon to be available in Europe and Asia. HTC cannot confirm at this time pricing or which carrier in the U.S. will carry the HD2.
The HD2 is the thin smartphone with the 1 GHz Snapdragon processor running that gorgeous 4.3-inch screen that houses the first WinMo capacitive digitizer. The HD2 is easily looking like the WinMo phone to have, and it will be very interesting to see which U.S. carrier picks it up.
Starbucks is changing its card programs next month, which has an impact on accessing Wi-Fi in its locations. It’s all actually confusing in terms of the Wi-Fi, but Glenn Fleishman at WiFiNetNews takes a crack at decoding the new deal. Essentially, Starbucks is consolidating its different card programs into one program on Dec. 26. Each drink transaction will net you a star, and five stars qualifies you for two hours of free, daily Wi-Fi. Here’s where it gets interesting:
“After five transactions, you’re boosted into the Green Level — green being Starbucks’ corporate color — and you qualify for the daily Wi-Fi allotment with no further purchases. In fact, the FAQ says that you remain active at the green level for two years following your last transaction. So those that want the two-hours-a-day Wi-Fi without purchasing drinks need only prime the pump lightly.”
When I first read that, I nearly thought that five transactions nabs the Wi-Fi for two years, but I’m not sure that’s accurate. Under the old program, my understanding was that you needed to have made a purchase or card reload within the past 30 days to have Wi-Fi access. But there’s no mention of that on the current FAQ site for the new program, so it appears that you don’t need to make a purchase to have Wi-Fi in a given day. When I frequent the ‘bux, I do make a purchase, so it’s a non-issue to me. Others may want to run through the FAQs to review this, and any other changes.
The YouTube-hosted Elevator, launched in May 2007, has survived a 2009 production company changeover (from HBOlab to Break) to produce over 200 episodes of short, wry comedy shot in a single location. And that longevity has paid off, thanks in part to a wide range of guest stars, including YouTube elite like Charles Trippy and Ryan Higa, Garfunkle and Oates‘ Kate Micucci, and Canadian sketch comedy team Loading Ready Run, who have helped the series achieve millions of views and nearly 80,000 YouTube subscribers. Via chat, we talked with series creator Woody Tondorf about Elevator’s origins, the difference between his past and present corporate masters, and if an end is in sight for the series. An edited transcript follows.
NewTeeVee: So, where did the initial inspiration for Elevator come from?
Tondorf: When we were at HBOlab, our boss said, “We need a series that we can mass produce for cheap. Make that happen.” I was really inspired by the old “Far Side” comic strip, where you only needed a single picture and a single line to tell the joke. So I threw that out there in our next meeting, and it stuck. Luckily, we had a dead end at the end of our hallway that was plain white. We put a camera up on a table and eureka!
NewTeeVee: So it’s not actually an elevator!
Tondorf: People are still shocked about this! Everything on the Internet is fake! It’s just three walls. They’re also the longest elevator rides ever. No one is in an elevator longer than 30 seconds.
NewTeeVee: At the beginning, how much of a narrative were you looking to construct?
Tondorf: None. I had always envisioned Elevator as more of a video comic strip, something you could stop by for one laugh and either move onto the next episode or go back to cats on Roombas. We had a core group of characters, but arcs and storylines were never really a goal.
It’s HARD in web series to count on people to watch the last episode or the next episode or know what you’re talking about, so I try to stay away from it on Elevator.
NewTeeVee: But at the same time, you’ve definitely developed a cast of characters over the years.
Tondorf: Yeah, the characters and actors got to create these organic arcs that I think has really helped the series grow.
NewTeeVee: You’ve had some pretty great guest stars come in from the YouTube world — how have those appearances come about?
Tondorf: Part of them have come from personal relationships and others came from reaching out to managers and seeing if they want to come play. No one’s turned us down yet, which is really cool. I wouldn’t want folks on Elevator unless I thought their work was great.
NewTeeVee: So are/were these appearances done gratis?
Tondorf: A lot are. But we pay our cast.
NewTeeVee: Your regular cast, you mean.
Tondorf: Yeah. Anyone who’s doing several episodes for the day gets paid. We have been able to pay since the beginning. Being under HBO’s wing at the time certainly helped.
NewTeeVee: Speaking of HBO — when Runaway Box was acquired by Break, how big a factor was Elevator’s success in that deal?
Tondorf: I think it certainly helped. The lab had a proven history of original programming that I think Break found attractive. We were all part of the deal.
NewTeeVee: What’s been the difference between HBO and Break?
Tondorf: We do a lot more branded entertainment now. Series and shorts for SoCo, KFC, Stride, Levi’s, the works. It’s a good opportunity to take our skills from the lab and apply them to making a client happy and keep the lights on. I’m still waiting for the paperwork to go through on Nerf War 2, though.
NewTeeVee: So the emphasis at Break is on the branded stuff?
Tondorf: It’s constantly changing. Right now we’re cranking out new RFPs [Requests For Proposals] every day and getting new show concepts ready for prospective sponsors, but I’m also pitching two new one-offs to film this week and we just finished a blitz of original Halloween programming.
Right now we’re doing a lot of branded content, but we’re always on standby to shift to something new. It’s exciting, in an air traffic control sort of way.
NewTeeVee: Is there stuff you’ve been able to do at Break that you don’t think you could have done while under HBO’s wing?
Tondorf: I think the tone of Elevator has changed, for one. At HBO I had to push back a lot with content that was maybe a little blue, but Break has been better about it. I think I have a little more edge in the writing now. We also try not to swear, but that’s a terms of service thing more than anything else.
NewTeeVee: So is there any scripted web series out there which beats you in terms of length of time online and number of episodes?
Tondorf: I think LonelyGirl might, but does that count? It’s kind of like NCIS or CSI. There’s about five different incarnations of it, and I can’t be sure. But yeah, I’ll say we’re tops in terms of longevity and number of uploaded original episodes. I defy others to beat us. Now where’s my damn Streamy?
NewTeeVee: When you do end the series, do you know what direction it’ll take? Are you like J.K. Rowling, have you written the last episode ever and locked it in a safe?
Tondorf: I actually have written the last episode, and it’s a big disappointment. But this series has become my new media calling card. It will be sad when it ends, but honestly I’m not ready to let go of it yet.
NewTeeVee: When you do end it — any hints as to what might happen?
Tondorf: Ummmm…let’s just say we’re gonna need a bigger boat.
NewTeeVee: A bigger elevator, you mean?
Tondorf: Your words, not mine.
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