Gadgets galore at CES, Microsoft bets big on gaming and Elon Musk talks Tesla bot
January 2022
Hello and welcome! 👋
January is drawing to a close and we’re about to usher in the Year of the Tiger. Gong hei fat choy/gong xi fa cai to everyone celebrating on 1 February.
As you may have guessed from the subject line, this edition of Deep Dive has a technology news focus. Let me know what you think, and thanks for reading!
PRODUCTS AND PROTOTYPES
Billed as “the most influential tech event in the world”, the Consumer Electronics Show returned to Las Vegas earlier this month after skipping 2021.
Although thousands of executives, developers and attendees were excited about the in-person activities, the exhibition was a smaller affair due to Covid concerns. Twitter, Facebook, Nvidia and Pinterest were among the VIPs who chose to participate virtually instead.
Still, CES generated plenty of buzz with its demos of gadgets, gizmos and software. From vehicles to crypto, whether practical or mind-boggling, the tech blowout offered a dizzying range of products and trends to keep an eye on.
Here’s a taster of some of the hardware:
A colour-changing car: Switching between black and white, BMW’s iX Flow has body panels made with E Ink, allowing drivers to adjust the exterior shade with the push of a button.
Flexible screen: The Asus Zenbook 17 Fold does exactly what it says on the tin. The 17-inch laptop screen, paired with a separate keyboard, can fold in half.
NFT TV: Wishing you could frame your digital art and hang it up on a wall? Samsung is here to help. The Korean giant is introducing “a groundbreaking platform that lets you browse, purchase, and display your favourite art — all in one place.”
Smart pet collars: Humans are increasingly using watches and bracelets to monitor steps, heart rate and body temperature, but what about checking the health of our furry friends? Catlog and Invoxia are two brands aiming to bring pet wearables into the mainstream.
Enhancing flavours: Meet SpoonTEK, the eating utensil that passes a mild electrical current through your food to satisfy your sensory systems.
Which piece of equipment would you want to own?
ABSORBING A GAMING JUGGERNAUT
Microsoft is breaking open its piggy bank to pay a whopping US$68.7 billion for Activision Blizzard. The cash deal, which will be finalised in 2023, is the largest ever acquisition in Microsoft’s history, topping the sums it paid for Skype and LinkedIn.
The powerhouse is no stranger to video games (see: Xbox and ZeniMax Media), but Activision is a beast in the industry, publishing titles such as Call of Duty, World of Warcraft and Candy Crush.
So why is Microsoft going through with this mega takeover? The answer is two-fold. Firstly, gaming is the fastest-growing form of entertainment. Despite the streaming service boom, the gaming sector is notably bigger with an estimated value of US$300+ billion. If anything, the pandemic has expanded the reach and size of the gaming community.
Snapping up Activision also gives Microsoft the option to benefit from exclusive content, should it choose to pull titles from PlayStation. That potential move has made Sony’s investors nervous - the company’s share price tumbled 9% following Microsoft’s acquisition announcement.
Secondly, Microsoft’s bosses are relying on Activision’s infrastructure to accelerate development of the metaverse. Its army of game designers have superior knowledge of interactive experiences and virtual spaces.
However, the multi-billion dollar deal could put Microsoft in the crosshairs of EU and US regulators, who are scrutinising the tech titans over their monopolistic behaviour. Another issue is Activision’s reputation for harmful “frat boy culture”. In July 2021, the state of California sued the video game publisher over allegations of sexual harassment and pay inequality. The lawsuit is ongoing and Activision CEO Bobby Kotick is reportedly being pressured to resign.
For more on the story, listen to this episode of WSJ’s The Journal podcast.
TALKING UP TESLA BOTS
Tesla continues to go from strength to strength. The electric vehicle pioneer posted record revenue figures for the October to December quarter, smashing Wall Street’s estimates.
Elon Musk remains confident about his company’s prospects - he’s expecting deliveries to surge in 2022 as Tesla cranks out thousands more cars. It’s totally feasible. According to Bloomberg, Tesla now “runs the most productive auto factory in America”.
But in true Musk fashion, the unconventional CEO is shifting his attention to the next venture. In a recent earnings call, he told investors that his humanoid robot project, dubbed Optimus, could “be more significant than the vehicle business, over time”. There’s one catch - the Tesla bot hasn’t been built yet.
Anyway, if Optimus does come to fruition, Musk reckons the robot will be used in Tesla’s plants and, in the future, might be able to solve labour shortages.
Of course, the Tesla boss is famous for throwing ideas - as well as timelines - around. CNBC says the robot chatter is “an example of Musk’s showmanship”, which helps “energise employees, customers and investors”.
Please feel free to share the newsletter with your friends and family. Take care and stay curious, Sara x