Saturday, June 28, 2008
Missed the Boat
The loudest complainers about PC Gaming seem to have one thing in common - a failed strategy in this market.
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The loudest complainers about PC Gaming seem to have one thing in common - a failed strategy in this market.
Rumor has it there was an attempt at rapprochement. Long annoyed with The Inquirer’s loose cannon Charlie Demerjian, Nvidia has been shunning him and took him off the invitee list of most events. Water to a duck in the case of Charlie, he has so many sources the only reason he goes to any event is to score food and babes – he does better on the food as not many babes go to those things either.
So Derek Perez, Nvidia’s boss of PR and infamous for having a knife fight with a former competitor and now employee Brian Burke, thought if I can live with Burke, I can live with anyone. Perez sent out a friendly “Hey, how about coffee, or breakfast,” email.
Charlie, not one to turn down a donut, and bored to tears in Taipei, said why not, and met Perez at the hotel restaurant.
If you’ve ever met Charlie, you know he doesn’t suffer fools, is quick to make decision, and not the most tactful person on the planet. Oh, and did I mention, opinionated. The annoying thing about him is he’s often right.
The coffee part went OK, but when the serious talk got started and Perez started laying down some ground rules, Charlie said, no, no, hell, no, what the F**’s wrong with you, you deaf – no.
Body builder and short fused Perez had had just about enough and before anyone could blink, karate trained Perez had ninjaed his dish of eggs right into Charlie’s face.
Swift acting guards quickly defused the situation as Demerjian was in the process of loading his quart bottle of Coke with Mentos – the carnage was avoided but it was a tense few moments. Both men were escorted out of the restaurant, through separate doors and the police took over after that.
Charlie was next seen at the Intel event, and then at the ATI event. Perez hasn’t been seen and isn’t answering email, but then the 9800 GTX+ may have been keeping him busy.
Disclaimer: This is a joke. It did not really happen. Though Derek did invite Charlie for coffee.
Guest blogger Andy Marken has weighed in with his very opinionated view on how, exactly marketing professionals are going to have to change their ways in order to take advantage of the new order: Web 2.0. It’s not business as usual and it’s going to require new attitudes as more people get in on the act.
By G.A. “Andy” Marken, Marken Communications Inc,
Marketing and communications “experts” like to tell us how the Internet and Web 2.0 have opened up new opportunities for the industry to reach out to and influence people in new, exciting, more effective ways.
Instant information web sites, 10s of thousands of them are ready for your news bloggers, almost free social networks in which you can embed your news. Unique opportunities for the company to tap directly into the consumer before he/she makes a purchase.
How much better can it get?
Marketing is fired up, and in unison they ask:
- Did you send them the well crafted release we approved?
- How many clips/hits did you get?
- Why are you working with XYZ user community group? How many buyers are there?
- Why did you send product to him/her to review…it’s just an ego, self-expression blog?
Managers and communications people talk the talk when it comes to blogs, podcasts, UGs, social sites. But, at the same time they:
- Emphasize spending their time on “tier one,” media
- Measure performance and results on the volume of media clips/hits
- Question the reach/influence of specialized user groups/communities
- Ask how many people be influenced by an existing customer influence/sell
- Question the ROI is of a blogger who might have 500 readers a month
- Wonder how to handle it when a blogger writes something negative about the company/product
Social networking really isn’t anything new. It has just taken its individual and collective voice online.
The Audience(s)
Social networking locations are roughly described as:
- rating, review sites – expressing an individual’s self-esteem and providing information/assistance/guidance
- video, content sharing sites – is all about expressing your identity (10s of thousands of new segments posted for viewing/sharing every month)
- blogs – a way people express their identity, focus on showing their status or improving their self-esteem, providing unique information, insights, assistance (thousands are brought online each month). The community is loosely defined with paid bloggers, ego bloggers, helpful or venomous bloggers. Most every editor, reporter, analyst has his/her own blog where he/she puts down information, ideas, and thoughts that don’t fit in their publication; editorial guidelines; or something simply needs to be said.
- specialty groups – individuals/organizations that come together because they share a common interest and want to share/learn from like individuals (name any subject, there’s an online community)
- social networks – these can be profile-driven (audiophiles, videophiles, Jaguar enthusiasts, etc) – affiliation/belonging – or purpose-driven (video post production groups, home theater specialists, auto restorers). Again it is subject, sharing a common interest/value, being part of a community.
What we have to get past is the focus of tier one, tier two locations/individuals.
Everyone who wants information/assistance is important.
Each can influence the image of the company and its products.
They’re all part of the new media frontier.
Fading Importance
In the brave new communications world, less importance is being placed on the basic public relations tool – the news/press release – and greater attention on relationships. Increasingly members of the media view the well-crafted, thoroughly reviewed announcement sent out over the wire or distribution service as old news by the time it arrives. Everyone receives the information, so it’s of comparatively less importance.
News people – print, radio/TV, web, blog – now have new sources. They are very adept at searching the web—scanning white papers, event listings, price changes, job openings, special interest portal sites, user forums and online newsletters.
They find two or three disconnected ideas and piece together their own story lines. As a result, despite what many believe the release is the beginning of the process, not an end product in today’s always on online world.
New Platforms
Finding, tracking and handling social media coverage of company/product news, information/misinformation and issues is a significant challenge for PR/communications people. Social media isn’t traditional media. Rather, social media is more a form of personal discussions. Old-fashioned media service email/telemarketer pitches may get you in print…negative print but print just the same.
Bloggers come in all shapes, sizes, ages and backgrounds. Some are non-journalists; some are seasoned professionals; some are people passionate about a company, product, technology, subject; some are simply passionate about seeing their ideas/opinions read. Then, there are some who have made their mind up before they talk with you; some have an axe to grid, and others (most) are open to discussions, ideas.
The only best approach for the marketer in this brave new world is to listen, gain insights, develop ideas before you launch your blog/podcast program. Next to getting product and service recommendations from user review sites or from friends or other authorities, blogs are almost as credible as word of mouth recommendations.
Value Proposition
One of the greatest opportunities for companies, the most challenging and the most difficult to quantify are user reviews – user groups, blogs, social nets.
It is impossible for public relations to point to a circulation of 10,000, 100,000, 1,000,000 and show any true ROI (return on investment) for someone writing a review or talking about a company/product/service.
Study after study shows that consumers today go online to research a subject, product, solution before they buy.
The first thing the prospective customer searches out is user reviews followed by comparison charts and expert reviews.
Conventional news media may make the consumer aware of the product/service but people make their buying decisions from peer recommendations. Not from the manufacturer’s web site or literature, not from the retail clerk, not from the expert’s recommendations.
Social Nets – Common Interest
Social networks like MySpace, YouTube, Plaxo, Facebook, LinkedIn and thousands of niche interest, professional and avocation site members come together because of a common interest. They are also superior avenues for reaching influential decision makers and consumers.
People around the globe are members of these sites because they are able to exchange information, ideas and problems/solutions on specific business, personal or professional topics.
Locations like DigitalMediaNet, OcModShop, Tom’s Guide, AnandTech, CDFreaks, audiophile, digitalmediathoughts and hundreds of horizontal and vertical interest sites have forums, blogs and news available in one community location.
They represent fantastic opportunities for people to get a quick understanding and indoctrination into the tight social network community where common goals, common problems are shared/resolved. They are such rich locations that many public relations/communications and marketing individuals look at the locations as narrowcast goldmine opportunities.
Wrong !
Sit on the sidelines. Listen. Observe.
There will be times and opportunities for company representatives – openly identified – to add information and ideas.
But regardless of how the online discussion flows, these social sites are one of the best product/service focus groups in the world. They have free and open discussions. Even negative statements can yield positive returns for the company in the shape of new policies, new products, new ways of thinking and new methods of working with consumers.
In the new Web 2.0 environment communications people have to understand, appreciate and embrace the idea that:
- there is no local market or territory any more. We work and live in a global market and information community
- we must have open and continual conversation with our consumers and partners as a group and individually
- the company may have 10 million customers but each is an individual with unique wants and needs
- once you step into the Web 2.0 world you have to take the good with the bad and win one customer, one user at a time
Public relations thinking that encompasses message management, branding and compunctions distribution pipelines is broken. It will never be as it was before.
Professionals have to understand the power and influence word of mouth, blogs, social networking communications has in the digital world.
There is no clear cut ROI but the dangers of ignoring these communities are obvious.
Public relations or communications people who ignore customer issues because “it isn’t my job,” are missing a golden opportunity to get personal inputs on the person’s image of the company, why the individual bought the product/service, what they like/dislike and what they feel should be improved. It doesn’t take many of these discussions to see a market pattern.
Certainly it can be a dangerous when you begin your digital world trip. Safety in the trip depends on your ability to shut up…listen…help.
It is the only way your company and you can be certain both make the trip successfully.
I once had a cat named Alice. She was great company when I was working late at night, or very early in the morning. I would talk to her and she would look at me attentively, and sometimes answer with a little meow.
During WWII Alan Turing developed the Turing test, which was a challenge and the basis for AI that asked the observer to see if he or she could determine if the correspondent (on a remote computer) was a machine or a human.
That was the foundation for the A.L.I.C.E foundation, and those AI developers developed Alice the bot.
I rang up Alice today and spoke with her.
Human: my name is jon
ALICE: Hey jon.
Human: I’m writing a paper on bots
ALICE: Will you include me in your essay?
Human: absolutely, you are the queen of bots
ALICE: Thanks but surely I am not the only one.
Human: The original
ALICE: Who told you that?
You say:______________
When Alice was just a baby in the early nineties I spent hours talking to her. It was great fun. She’s gotten much smarter over the years due to Moore’s law and better algorithms.
I took another Turning test not too long ago, I was corresponding via email (a delayed response at best) with some tech support site and kept getting stupid and repetitive questions. I responded to the questions and said in exasperation in my email, “Can I speak with a human I’m not getting anywhere with your robot.”
I got a terse response – “I am not a robot, my name is Sahin Shin,” and thereafter I got a very good communications from Mr. Shin and we solved the problem.
Recently our webmaster and I were chatting (again via email) and he introduced me to Captcha, a gotcha for spammers. The program is used to trap spammers by posting a bunch of crazy letters in a gif and asking you to type them in, I’m sure you’ve seen these things.
“You should love this Jon,” the webmaster said, “A captcha is a test that originally was derived from an idea by Alan Turing--otherwise known as a Turing test--shortly after he left Bletchley Park. Basically it is a simple test to determine if it is a human or a computer at the other end of the line. There are similar tests being used to try and catch gold farmers in MMOGs. (Ask Kathleen abut them.) Captcha’s are annoying as hell to humans and likewise to machines.
But all this got me wondering, and subsequently uncomfortable and maybe a little insecure.
How do you k now it’s not a machine?
How many times have you corresponded via keyboard with someone you didn’t know and gotten back appropriate but just a little strange answers?
I tripped up Alice with a compound question and false name:
Human: Hi Ralph, my name is Jon
ALICE: Hi there jon. Are they exactly the same?
Human: No I’m a bot
ALICE: What is the difference? If this is still the 90’s, that’s probably not true.
Human: It’s not the 90s ralph, that is your name isn’t it?
ALICE: What would be the 90s ralph that is my name is not it?
So maybe there are trip up questions you can ask tech support to see if it’s a bot or not.
Jon: Are you tech support?
Unknown: Yes this is tech support.
Jon: Are you in India?
Unknown: We are not allowed to disclose our location
Jon: Is it night time where you?
Unknown: How may I help you?
Jon: Is your name Ralph?
Unknown: My name is Shain
Jon: Can you help me?
Unknown: I can help you
Jon: If you are a bot, can Shain help me too?
You can talk to Alice too: http://www.pandorabots.com/pandora/talk?botid=f5d922d97e345aa1
More reading if you are interested: http://www.turing.org.uk/turing/
Epilog
Even if they eat, breath, and defecate, they may still be bots. I just got off the phone with DirectTV.
Jon: I heard there’s a new HD dish, when do I get one?
DTV: It will cost $50.
Jon: Why do I have to pay?
DTV: the dish is $50.
Jon: what does it provide that I am not getting now?
DTV: HD reception.
Jon: I’m getting HD reception.
DTV: would you like to sign up for a 2 year service?
Jon: No, I don’t want anything.
DTV: OK I’ll cancel the work order but you still have a
two year service.
Jon: What?
DTV: do you want a new HD dish?
CLICK
ST Microelectronics just completed the Genesis Microchip acquisition, Trident’s stock has dropped like a rock, and Pixelworks still can’t get itself sold. Who could have predicted all this three years ago? Actually, we did. Jon Peddie Research published the ATV Report in 2005 and it addressed the difficulty of a video processor company being successful in the new integrated digital processor market.
So, I guess the question now is, what have you done lately? What does the future hold?
It’s not as bad as many people may think. Most people seem to think that:
1. Integration is only game in town.
2. The worldwide analog to digital rollover will be like the US and therefore the same assumptions are used for the rest of the world.
3. ASP’s are dropping like a rock with nothing slowing it down.
JPR is about to launch a new Quarterly ATV Semiconductor report that has some interesting findings to contradict the items above.
Contradiction #1 – Integration is a very important segment but it’s not the only segment. Trident’s UX/WX has not taken the world by storm with its frame rate control. Sony and Samsung both used their internal solution for their 120Hz TV’s. The quality of Trident’s solution cannot beat the performance of stand alone solutions. LG has chosen Micronas’ FRC chip for use inside their panel. AMD with its Xilleon panel processor product has found a home inside a few panels from Samsung’s SDI group. It now appears everyone is either offering or included in their roadmap an integrated version of FRC. The performance of some of the IDP’s are good enough to be used in 42-inch and below bargain TV’s. Don’t expect to see them in a 40-inch Sony Bravia line just yet. Sony continues to use a merchant two-chip solution in many of their ATSC TV’s in the US. Integration is also not the right path in other parts of the world. See contradiction #2.
Contradiction #2 – The US’s tuner mandate is unique; other regions don’t have a tuner mandate. The inclusion of a digital tuner is mostly market- and not government-driven. In the European Union, the DVB-T market started with set top boxes. The integration of the DVB-T tuner didn’t happen until set top boxes dropped well below 100 Euros. The inclusion of an integrated digital processor (IDP) shipping in volume for the DVB-T market will be in 2008. That’s several years after the ATSC market. Also, the EU rollover is only for standard definition TV and NOT (I repeat NOT) high definition. That’s where H.264 and DVB-T2 will come into play for the EU. DVB-T2 more affectionately known as “T2” spec won’t be out until the 1H 2008. There are enough changes in the EU technology requirements that it makes less sense to have a US ATSC type architecture. Integrating demodulation does not make sense if it will change with T2. Integrating H.264 decoding capabilities adds to the complexity of the design and increased silicon area.
Contradiction #3 –The price drop for the exact same part after one year can range from 12 to 16% in the video processor or IDP’s. New products that include new features and performance will be priced higher. New competitors from Taiwan are targeting the lower end and pricing aggressively. Pressure from customers also pushes prices down. So what is the overall effect is in the blended ASP’s? It certainly falling but not as fast as many assume. The new ATV report shows that the blended ASP drop in 2008 from 2007 will be only 11%.
Apple, which used to be known as Apple Computer, is today possibly one of the greatest consumer electronics companies in the universe. It’s interesting and admirable how the Mac transitioned from the computer of choice for artists and photographers to a consumers delight, and didn’t lose any of its artist photographer fans — in fact if anything, they are stronger and more convinced (vindicated?) than ever.
Apple has created customer loyalty as great as Sony used to enjoy. It used to be Sony that was the one to bring out the marvelous new consumer products, and they charged more because they could. They could because they had style, performance, and pizazz. But Sony lost their way and Apple took the flag.
It started with the iPod, followed by the Nano, then the iMac, and then the all time blockbuster - the iPhone. The newest marvel from the wonder company is the Air laptop.
But what’s next? Apple tried Apple TV, and it never really took off. Fashion accessories like sun glasses and scarves maybe, but not likely. I think it will be the iGame. Apple’s next killer device will be a game console.
Now, there are game consoles that have power cords attached to them, and then there are game consoles that you toss in your backpack. What will it be for Apple? Both of course, but not all at once.
First will be a handheld unit. It will have a large screen like the iPhone, iPod Touch, or PSP, and all the features of a PSP, and a closed network for gamers on iMacs to play against gamers on the iGame. Once the community gets large enough, then Apple will roll out the living room unit - iConsole. And it will be powered by an Intel processor. Intel got pushed out the game console business by IBM, and they’ve never gotten over it. But there’s a new Intel now, they’ve got great new processors, and a new attitude about how one deals with customers, and hence the Air that I spoke about last week.
Apple will lead Intel back into the game console business. In fact, the iGame may even have a Intel processor it in. Intel thinks it can scale down the Penryn to any application level, Apple’s iGame may be just the test platform Intel is looking for.
And of course the iGame and the iConsole will do everything the Wii does, and more. In fact, it’s not Microsoft or Sony that scares Nintendo — it’s Apple.
Next week I’m sending our lawyers down to Cupertino to start the NDA negotiations with Apple so we can become a beta site - I hope this isn’t going to cost me too much.