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  • How to clean keyboard grunge, earwax in earphones and screen smudges

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    LONDON (AP) — Smartphones, laptops, headphones and other electronic devices are essential for work and play in our daily lives. But all that time spent typing, scrolling or listening also means our devices gradually accumulate grime that needs to be cleaned off.

    You might not give much thought to cleaning your devices but there are reasons you should, says Logitech, which makes keyboards, webcams and other computer peripherals.

    “Regular cleaning and proper maintenance not only keeps your gadgets looking pristine, and wins you hygiene points, it also helps them perform better and last longer,” the company says. “In the case of devices like earbuds, the accumulated bacteria and debris may even cause health issues or discomfort.”

    Here are some pointers on cleaning your tech:

    Getting started

    Always check if the manufacturer has any specific guidelines for cleaning.

    Assemble some basic equipment and material for cleaning, which should include a soft and lint-free cleaning cloth, like a microfiber cloth; cotton swabs; a soft-bristled brush like a toothbrush, paintbrush or makeup brush; compressed air and isopropyl alcohol.

    Isopropyl, or rubbing alcohol, is a cleaning solvent that’s antiseptic and antibacterial. It’s popular for cleaning electronics because it doesn’t leave any residue and dries quickly. But you might want to wear gloves to avoid skin irritation. Drip some of it on a cloth instead of pouring it directly onto your device. Also heed some of the more specific warnings below.

    Water and mild soap can be useful for cleaning dirty surfaces, but isopropyl alcohol is recommended for cleaning the internals of a device, said Alex Diaz-Kokaisl, senior technical writer at electronics repair company iFixit.

    “While there isn’t a hard-and-fast rule for cleaning electronics, we generally use high-concentration isopropyl alcohol (more than 90%) because it evaporates quickly,” he said. “The faster a liquid evaporates, the less likely it is to affect any components that conduct electricity.”

    For whatever device you’re cleaning, disconnect or power it off first. Remove any cases, plugs, covers and accessories.

    Computers and laptops

    When using a computer, the keyboard and mouse are the parts that are touched most often and therefore need the most frequent cleaning. And all those crevices between a keyboard’s keys are sure to catch crumbs.

    To remove any loose debris, iFixit’s official in-house cleaning guide recommends using a can of compressed air. Run the spray back and forth across the keys to blow out any bits. If possible, hold the keyboard upside down so the debris falls out.

    If you don’t have compressed air, Logitech suggests using a hair dryer on the cold air setting. Some social media users also recommend a handheld balloon pump.

    Next, dampen a cleaning cloth with water and gently wipe down the keyboard and mouse.

    Logitech says you can also use rubbing alcohol but recommends you test it first on an inconspicuous spot to make sure it doesn’t cause discoloration or scrub the lettering off the keys.

    Anti-bacterial baby wipes can also work on devices like a mouse, Diaz-Kokaisl said.

    “There shouldn’t be enough liquid to seep through cracks in the shell, and their residue typically evaporates faster than just using soap and water,” he said.

    For laptop screens or external monitors, use a dry microfiber cloth to gently wipe away fingerprint smudges.

    If there are more stubborn spots — like food stains or sneezy spatters — dampen the cloth with distilled water or a 50/50 solution of distilled water and vinegar.

    Computer maker Lenovo says the “gentle acidity of vinegar can help break down oils and fingerprints.” Avoid using household glass cleaners, which can contain ammonia that could damage the screen. The same goes for paper towels, which can scratch the screen. HP also warns against using rubbing alcohol.

    AirPods and earphones

    A lot of people listen to music or podcasts through their earbuds, but that also means they’ll need regular cleaning to remove any earwax, natural skin oils or other grungy buildup.

    If the earbuds have silicon tips, remove them. Cleaning procedures vary depending on your brand and model. Logitech and Bose recommend using soapy water. But Sony warns against water or wet wipes because they can speed deterioration, and, instead, advises using a dry cloth.

    Use a cotton swab to wipe the earbud nozzles clean.

    Owners of Apple AirPods need to follow a much more elaborate procedure to clean the mesh. You’ll need a child’s toothbrush, two small cups, a paper towel, distilled water, as well as micellar water — typically used as a facial cleanser.

    Pour some micellar water into a cup, dip the toothbrush, brush the AirPod’s various mesh parts, and then blot them dry with the paper. Repeat twice. Then repeat that procedure but using the distilled water to rinse off the micellar water. Finally, let the AirPods dry for at least two hours.

    To clean the rest of the AirPod’s body, use a damp cloth. And don’t forget about the charging case. Apple recommends brushing out any debris and then wiping with a dry cloth. If needed, dampen it with isopropyl alcohol.

    What about over-the-ear headphones? Bose says you should wipe them down at least once a week, especially after working out, to remove any dirt and bacteria hiding in the nooks and crannies. Remove the pads and use a cloth dampened with soapy water to clean them.

    Smartphones

    Apple has issued specific instructions on its website for cleaning various iPhone models. Samsung has posted similar guidelines for its Galaxy lineup.

    They both advise using a soft, lint-free cloth, such as a lens cleaning cloth, to gently wipe the outside of the phone. Apple warns against using any cleaning products, which could erode the oil-repellent coating that most iPhones come with.

    Both companies say it’s OK to use disinfectants such as rubbing alcohol to gently clean the exterior, but avoid bleach or hydrogen peroxide.

    ___

    Is there a tech topic that you think needs explaining? Write to us at [email protected] with your suggestions for future editions of One Tech Tip.

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  • ‘Inside Out 2’ hits $155 million domestic debut, second-highest animation opening ever

    ‘Inside Out 2’ hits $155 million domestic debut, second-highest animation opening ever

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    Disney and Pixar brought a big dose of joy to the box office this weekend.

    “Inside Out 2” debuted with an estimated $155 million domestically, the second-highest theatrical opening of an animated film and the first film since Warner Bros.’ “Barbie” to top $100 million during its debut.

    Of note, Disney does not consider its 2019 live-action remake of “The Lion King,” which generated $191.7 million during its debut, an animation film.

    “Inside Out 2” is expected to haul in $295 million globally for the weekend.

    “Let’s issue a collective ‘welcome back’ to Disney, Pixar, and the summer box office,” said Shawn Robbins, founder and owner of Box Office Theory.”

    Both Pixar and Walt Disney Animation struggled to regain a foothold at the box office after pandemic restrictions lessened and audiences returned to theaters. Disney had opted to debut a handful of animated features directly on Disney+ and so parents were trained to seek out new Disney titles on streaming, not in theaters, even when they did return to the big screen.

    Compounding Disney’s woes, many audience members began to feel that the company’s content had grown overly existential and too concerned with social issues beyond the reach of children.

    “Many narratives have been written about the two studios and moviegoing in recent times, so this powerful debut by ‘Inside Out 2’ is a breath of fresh air,” Robbins said.

    The film is the fifth Pixar feature to surpass $100 million during its debut in North America and the second-biggest opening weekend ticket seller for the studio just behind 2018’s “The Incredibles 2,” which tallied $182.6 million. Around 12 million patrons flocked to cinemas to see the flick, according to data from EntTelligence.

    “This is clearly a big win for theaters,” said Paul Dergarabedian, senior media analyst at Comscore. “It’s an even bigger win for Pixar.”

    The theatrical industry has struggled this year with fewer titles, as production shutdowns from the pandemic were exacerbated by a dual labor strike that closed movie sets for nearly five months last year. The result has been a 26% decline in ticket sales compared to 2023 and a 42% drop from 2019 levels, according to data from Comscore. Heading into this weekend, the domestic box office stood at $2.8 billion.

    While there have been some standout performances from films like Warner Bros. and Legendary Entertainment’s “Dune: Part Two,” Warner Bros. and Toho’s “Godzilla x Kong: The New Empire” and Universal’s “Kung Fu Panda 4,” the 2024 box office has struggled to hit a consistent pace of releases and ticket sales.

    Missing from this year’s early summer slate for the first time since 2009 was a Marvel Cinematic Universe title. Typically, these films average $100 million to $200 million openings, with 2019’s “Avengers: Endgame” hitting a record $357.1 million. Instead, this year, Universal’s “The Fall Guy” opened to $28 million.

    Fewer films and fewer blockbusters could push the summer box office down as much as $800 million compared with 2023, according to Comscore’s Dergarabedian, and have ripple effects for the whole year. After all, the key summer period, which runs from the first weekend in May through Labor Day, typically accounts for 40% of the total annual domestic box office.

    “Inside Out 2” is a bright spot for the industry. It boasts the biggest domestic debut of 2024, surpassing “Dune: Part Two” and its $82.5 million in opening weekend ticket sales.

    “Does this performance wipe away all concerns of evolving consumer behavior? Of course not, but it should stay the hand of those thinking Disney or Pixar had permanently lost their commercial gravitas after an overly aggressive streaming strategy and undercooked films which together eroded some of their audiences in the past few years,” Robbins said.

    And some heavy hitters are coming to close out the summer and finish up the year.

    “Deadpool and Wolverine,” Marvel’s first R-rated feature, is due in theaters in July and is expected to deliver a strong opening weekend as well as a steady stream of ticket sales throughout its run.

    Then “Beetlejuice Beetlejuice” arrives in early September, “Joker: Folie a Deux” hits in October alongside “Venom: The Last Dance,” and November sees “Gladiator II,” “Moana 2” and “Wicked.” Additionally, December will have “Kraven the Hunter,” “Sonic the Hedgehog 3″ and “Mufasa: The Lion King.”

    Disclosure: Comcast is the parent company of NBCUniversal and CNBC.

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  • ‘Anyone But You’ could spark a rom-com renaissance in Hollywood

    ‘Anyone But You’ could spark a rom-com renaissance in Hollywood

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    Glen Powell and Sydney Sweeney star in Sony’s “Anyone But You.”

    Sony

    Released just before the crowded Christmas movie season, Sony’s “Anyone But You” seemed destined to be anything but a box-office hit — especially after it tallied just $6 million in ticket sales during its opening weekend.

    However, the film’s box-office success was as much of a slow burn as the romance between its main characters played by rising stars Glen Powell and Sydney Sweeney.

    In the seven weeks since, the romantic comedy has tallied $170 million globally, including $80 million from domestic theaters, according to data from Comscore. The film had a reported budget of just $25 million.

    A sleeper hit at the box office, the film is a “healthy sign” for the romantic comedy genre and other mid-budget Hollywood flicks, said Scott Meslow, author of “From Hollywood With Love: The Rise and Fall (and Rise Again) of the Romantic Comedy.” But it remains to be seen if other rom-coms can repeat its success.

    As studios chased big-budget superhero flicks after the success of Marvel’s interconnected cinematic universe, Christopher Nolan’s Batman trilogy and DC Studios’ “Man of Steel,” the rom-com found itself on the cutting room floor — and then as padding for streaming services.

    Between 2004 and 2010, Hollywood consistently released between 15 and 25 romantic comedy or romance films each year. But from 2011 through last year, there were less than 15 new rom-com or romance releases per year, with most years falling below 10.

    Meslow said there was no rom-com “kill shot,” a film or series of films that sparked the decline in theatrical releases of the genre.

    Instead, it came after media companies changed their priorities.

    “Studios are, at the end of the day, businesses,” Will Gluck, the writer-director of “Anything But You” and the filmmaker behind “Easy A” and “Friends with Benefits,” told CNBC. “So, if they start to see a certain thing is successful, they’re going to try to replicate that success. So, I don’t think there’s an inherent bias against rom-coms and comedies.”

    Studios saw action or superhero movies with $200 million budgets and billions in box-office returns as a priority over smaller-budget films, which may have been profitable, but less so in comparison. Now, as superheroes fall out of favor and Wall Street wants to see profitability from direct-to-consumer streaming platforms, the romantic comedy genre is poised for a comeback.

    Gluck’s “Anyone But You” proves audiences will still turn up for romantic comedies in theaters.

    The film’s performance builds on the success of two rom-coms from 2022. Paramount’s “The Lost City” generated nearly $200 million at the global box office on a budget of under $75 million. Universal’s “Ticket to Paradise” snared nearly $170 million globally on a budget of $60 million.

    While “Anyone But You” had a slow start at the box office, ticket sales increased in both its second and third weekend in theaters. And when sales started to dip, they fell just 27% or less in each of the next five weeks. Typically, films will see sales drop around 50% to 70% in each week after their opening weekend.

    Gluck attributes much of the film’s box-office popularity to word of mouth and the power of TikTok.

    In the wake of its release, users on the social media platform began making short videos of themselves singing and dancing to Natasha Bedingfield’s 2004 single “Unwritten.” The song is featured in the film, and cast and crew are seen singing and dancing to it during the final credits.

    “It would not surprise me at all if this became a textbook case of modern Hollywood marketing,” Meslow said. “It’s really harnessed TikTok and the stars’ presence on it better than probably any movie ever released.”

    Hollywood will now find out if “Anyone But You” is a unicorn or a replicable theatrical strategy. The film benefited from several key factors, including a blockbuster-free January and limited direct competition.

    But the industry is already leaning into a strategy that relies on potential sleeper hits like “Anyone But You.”

    Major studios have pledged to bring more mid-budget films back to theaters. Those movies are able to fill the gaps between large tentpole features and provide consistent box-office dollars. More films also means more chances for studios to advertise future releases to the public.

    While some films will still be released only on streaming platforms, Hollywood has rediscovered the importance of theatrical as part of overall downstream revenue. A film’s debut in theaters creates buzz and a sense of quality that follows it through on-demand sales and onto streaming platforms.

    Notably, Sony’s “No Hard Feelings,” which tallied $83.8 million globally in 2023 on a budget of $45 million, became a top-streaming film on Netflix when it was released on the platform in October.

    “Anyone But You” is destined for Netflix after it wraps up its theatrical run, as part of a streaming distribution deal with Sony signed in 2021.

    Gluck, who enjoys taking on a wide variety of projects, expects he will continue to write and direct films like “Anyone But You” going forward.

    “I think I’d rather take a gamble on a mid- to low-budget movie than a $200 million movie,” Gluck said. “Because my whole career has been mid-level budget movies. But to me, the fun part is always outperforming. It is always great when the expectations are low … it’s just it’s really fun to be written off and outperform.”

    Disclosure: Comcast is the parent company of NBCUniversal and CNBC.

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  • Sony is making a bold bet on an African gaming startup to boost PlayStation’s reach in the continent

    Sony is making a bold bet on an African gaming startup to boost PlayStation’s reach in the continent

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    The PlayStation DualSense controller and PlayStation 5 console.

    Jakub Porzycki | Nurphoto | Getty Images

    Sony is making a bold bet on Africa’s video game industry. 

    The Japanese consumer electronics and gaming giant has invested an undisclosed sum into Carry1st, a video game studio based in Cape Town, South Africa, via its Sony Innovation Fund venture arm, Carry1st told CNBC exclusively. 

    The deal is a strategic investment that will see the two companies partner on a range of commercial opportunities. For now, the two companies are in the “exploratory stages” of that partnership.

    Cordel Robbin-Coker, CEO and co-founder of Carry1st, said talks with the Sony Innovation Fund began about eight to nine months ago, and that his pitch to the PlayStation console maker was that Africa is the next big market to find growth in video games. 

    “As large companies like Sony that have really strong footholds in tier-one and tier-two markets start thinking about where the next billion customers and gamers are going to come from, our pitch is that Africa is a prime market for that,” Robbin-Coker told CNBC in an interview. 

    “We believe very firmly that there is an incredibly underrated console opportunity in Africa,” Robbin-Coker said, citing countries like Nigeria, Morocco and Algeria as places where console adoption is rising a lot. 

    Sony is coming into an emerging gaming market with blistering growth potential. Sub-Saharan Africa’s gaming industry is expected to generate over $1 billion for the first time in 2024, according to research from Carry1st and venture capital firm Konvoy. 

    Many gamers in Africa are buying consoles on “gray” markets — in other words, from vendors who’ve imported consoles from overseas to resell them locally, Robbin-Coker added. 

    Expanding PlayStation in Africa 

    One aspect of Carry1st’s partnership with Sony was about helping the games and entertainment giant expand PlayStation’s footprint in Africa. 

    Sony forecast it would sell a record 25 million PlayStation 5 units in its 2023 fiscal year, which would mark the best year for any PlayStation console in history. The PS5 was initially blighted by shortages due to a scarcity of chips and supply chain disruptions.

    Sony’s bet with its stake in Carry1st is that Africa will be the next major market to drive growth in PS5 sales.

    “Our hope is that we can help [Sony] to expand their reach of PlayStation in the region and support them in a range of ways, including broader go-to-market strategies, as well as digital payments,” Robbin-Coker told CNBC.

    He noted Carry1st could take advantage of the changing console business model, where sales have gone from primarily in-store payments for physical consoles and games to a more online experience marked by digital downloads, free-to-play games, and in-app purchases. 

    Carry1st’s localized payment service Pay1st allows African gamers to buy games using local infrastructure, bank accounts, and payment methods including M-Pesa and mobile wallets. Game makers can monetize their games on Carry1st, the company’s online marketplace for games and add-on content. 

    Original games in the pipeline  

    Carry1st, founded in 2018, specializes in developing mainly social and casual puzzle-based mobile games for an African audience.  

    Carry1st currently only makes and scales games for other clients, like Activision. But the company is now planning to develop its own original titles this year, with development underway on three new games.  

    Little is known about the original games for now, but Robbin-Coker says he is “very confident” about the road map for Carry1st’s original titles, and that he “firmly believes” the company is on track to launch its debut first-party game sometime in 2024. 

    Carry1st is still an early-stage startup, but its growth has been on a tear in recent years. Carry1st says its revenues climbed nearly ninefold between 2021 and 2023. Carry1st said it was unable to give a fuller picture of its financials given the sensitivity of the numbers. 

    Carry1st works with the likes of Activision, Supercell and Riot Games to bring Western game franchises like “Call of Duty: Mobile” and “Valorant” to Africa. 

    The company is behind the mobile games “Mancala Adventures,” “SpongeBob Krusty Cook-Off” — made in partnership with Nickelodeon — “Ludo Blitz” and “Mine Rescue.” 

    Sony’s investment in Carry1st marks the first financial commitment of its new flagship African venture fund, Sony Innovation Fund: Africa, which launched in October 2023 to invest in early-stage startups in Africa’s entertainment industry. 

    Sony Ventures Corporate, Sony’s venture arm, allocated an initial $10 million to its Africa fund.  

    Carry1st’s latest deal adds to its list of venture backers, with another top name on the cap table. Andreessen Horowitz, Bitkraft Ventures, Google, Riot Games, and rapper Nas have so far backed the company with $60 million of funding to date. 

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  • Hunger Games prequel, ‘Napoleon’ lead as Thanksgiving box office shows signs of life

    Hunger Games prequel, ‘Napoleon’ lead as Thanksgiving box office shows signs of life

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    Tom Blyth and Rachel Zegler star as Coriolanus Snow and Lucy Gray Baird in Lionsgate’s “Hunger Games: The Ballad of Songbirds and Snakes.”

    Lionsgate

    This year’s Thanksgiving box office was both feast and famine for the theatrical industry.

    Lionsgate’s “Hunger Games: The Ballad of Songbirds and Snakes” had a solid second week run in cinemas, generating an estimated $42 million for the five-day Thanksgiving frame and Apple’s “Napoleon,” an R-rated war epic distributed by Sony, snared around $32.5 million.

    Meanwhile, Disney’s latest animated feature “Wish,” which celebrates the company’s 100th anniversary, fell startlingly short of box office expectations, tallying just $31.7 million over its first five days in theaters. Analysts had foreseen an opening of $45 million to $55 million for the five-day period.

    “It wouldn’t be a holiday box office season without some occasional upsets and this weekend is delivering on that front,” said Shawn Robbins, chief analyst at BoxOffice.com. “‘Napoleon’ is a solid win for Sony, Apple, theaters and moviegoers all around. Another successful adult-driven film was needed right now after the vacancy left behind by ‘Dune: Part Two’ and the light holiday calendar still ahead.”

    Top Thanksgiving box office titles (five-day)

    • “Hunger Games: The Ballad of Songbirds and Snakes” (Lionsgate) — $42 million
    • “Napoleon” (Apple/Sony) — $32.5 million
    • “Wish” (Disney) — $31.7 million
    • “Trolls Band Together” (Universal) — $25.3 million
    • “Thanksgiving” (Sony) — $11.13 million
    • “The Marvels” (Disney) — $9.2 million
    • “The Holdovers” (Focus Features/Universal) — $3.75 million
    • “Saltburn” (Amazon MGM/Warner Bros. Discovery) — $2.72 million
    • “Next Goal Wins” (Disney) — $2.57 million
    • “Five Nights at Freddy’s” (Universal) — $2.5 million
    • Taylor Swift’s Eras Tour concert film (AMC) — $2.33 million

    ** All figures are estimated by studios

    Yet, the underperformance of “Wish” continues to call attention to issues over at Disney’s animation studios, which have struggled to lure audiences back to theaters since the pandemic. For comparison, Universal’s “Trolls Band Together” managed to snag $25.3 million for the five-day period and it was the film’s second week in theaters.

    “Disney’s ‘Wish’ is struggling to reach even the most conservative of expectations,” said Robbins. “It is a performance that again highlights the studio’s long road ahead to rebuild brand and audience confidence while making their films stand out as theatrical events again rather than have them be cannibalized by the impact of flailing streaming-focused strategies.”

    Overall, the Thanksgiving box office secured around $172 million, an improvement over the previous three years of pandemic-pressured ticket sales. Prior to the coronavirus outbreak, the five-day Thanksgiving spread — consisting of the Wednesday before Thanksgiving through Sunday — had resulted in more than $250 million in ticket sales each year. 

    Thanksgiving 5-day frame over the last decade

    • 2023 — $172 million (estimated)
    • 2022 — $122.8 million
    • 2021 — $142.7 million
    • 2020 — $21.4 million
    • 2019 — $263.4 million
    • 2018 — $315.6 million (biggest all-time Thanksgiving frame)
    • 2017 — $270.5 million
    • 2016 — $260.8 million
    • 2015 — $258.5 million
    • 2014 — $230.2 million
    • 2013 — $294.2 million

    Source: Comscore

    “This important period of Thanksgiving moviegoing has been solid though not earth-shattering,” said Paul Dergarabedian, senior media analyst at Comscore. “This week’s performance is encouraging for the industry, though at under $200 million, the total box office has not returned to the heyday years of pre-2020 levels.”

    Still, Dergarabedian noted that the Thanksgiving box office offered moviegoers an eclectic selection of films across genres and age demographics, something that has been lacking in recent years.

    “Overall, this is a positive step forward for Thanksgiving box office moviegoing traffic as the industry continues to learn how to navigate a rapidly evolving marketplace,” said BoxOffice.com’s Robbins.

    Disclosure: Comcast is the parent company of NBCUniversal and CNBC. NBCUniversal distributed “The Holdovers,” “Trolls Band Together” and “Five Nights at Freddy’s.”

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  • Smartphones with ‘self-healing’ displays will arrive within five years, analysts predict

    Smartphones with ‘self-healing’ displays will arrive within five years, analysts predict

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    A Samsung Galaxy S23 Ultra smartphone.

    SeongJoon Cho | Bloomberg via Getty Images

    Smartphones with displays capable of repairing themselves could start appearing on the market by 2028, according to analyst firm CCS Insight.

    In its roundup of top tech predictions for 2024 and beyond, CCS Insight said that it expects smartphone makers to begin producing phones with “self-healing” displays within five years. The way this could work is by incorporating a “nano coating” on the surface of the display that, if scratched, creates a new material that reacts when exposed to air and fills in the imperfection.

    “This is not in the realms of science fiction, it can be done,” Wood told CNBC on a call earlier this week. “I think the biggest challenge with this is setting expectations correctly.”

    Companies have been talking about smartphone display technology that can be self-repaired for several years now.

    LG, the South Korean consumer electronics giant, was touting self-healing technology in its smartphones as far back as 2013. The company released a smartphone called the G Flex which featured a vertically curved screen and a “self-healing” coating on the back cover. It didn’t explain how exactly the technology worked at the time.

    “There’s some new technologies that people are working on right now that looks as though this could become something that people have another go with. We’re not talking about smashed screens miraculously coming back. This is all just little cosmetic scratches,” Wood told CNBC.

    A few other phone makers have touted self-healing materials in smartphones. In 2017, Motorola filed a patent for a screen made from a “shape memory polymer” which, when cracked, repairs itself. The idea is that, when heat is applied to the material, it heals over the cracks.

    Meanwhile, Apple also previously secured a patent for a folding iPhone with a display cover that would fix itself when damaged.

    Still, the technology is yet to be found in a commercially successful handset. And there are a few barriers to launching such phones at a mass scale.

    For one, companies require lots of investment in research and development to ensure they can identify new innovations in smartphone screens. Cash is also required to market and sell the phones in big volumes — and ensure consumers are actually properly informed about what level of damage in the phones can be fixed without any manual intervention.

    Wood jokingly said he fears that tech tear-down enthusiasts like the popular YouTuber JerryRigsEverything will take a knife to test their self-healing capabilities. This, he says, isn’t the point of self-healing devices. Rather, it’s about technology that can make minimal repairs to the surface of its own accord.

    Phone makers are getting more and more inventive when it comes to display technology. At the Mobile World Congress in Barcelona, Motorola released a rollable concept smartphone that extends vertically when pushed upward.

    Samsung is pretty far along in the journey toward commercial smartphones with more advanced displays, with its folding Galaxy Z Fold 5 and Z Flip 5 phones now capable of folding hundreds of thousands of times over their lifetime.

    HTC could exit VR market by 2026

    HTC has largely staked its future on the merging of virtual and physical worlds. In January, the company launched its Vive XR Elite device, a lightweight headset focused on gaming, fitness and productivity, at a $1,099 price point.

    CCS Insight thinks that the firm will quit the VR space due to dwindling revenues and growing competition from Meta, Sony, and, more recently, Apple.

    “HTC was one of the pioneers of VR, they’ve done a lot there,” CCS Insight’s Wood said. “But they have kind of struggled to compete, because they haven’t gone for the race to the bottom on price, whereas Meta, with Quest, have been prepared to take very aggressive pricing — almost just above cost pricing — to drive adoption.”

    HTC “may get a little bit of an uptick with Apple coming into the space as it’s kind of renewed interest in the category,” Wood continued. “But, ultimately, we think it’s hard for them to stay in it. So we’re predicting that by 2026, they’ll exit the market, and they’ll sell their IP [intellectual property] to some of the other players who are bigger in the space.”

    Apple takes control of second-hand market

    CCS Insight also predicted that Apple will seek to gain more direct control over the second-hand smartphone market to avoid the growing popularity of second-hand devices denting sales of new iPhones.

    Apple may do this by encouraging customers to trade in their phones with the company directly, rather than relying on third-party marketplaces like PCS Wireless; or by incentivizing carriers to give in their old phones to get credits to offset the cost of buying a new iPhone, the firm’s analysts said.

    Apple could also start focusing on a “verified” system for grading refurbished iPhones, in order to encourage quality secondhand devices, according to CCS Insight — reinforcing the move in the technology industry toward more “circular” products that can be repaired and resold to avoid electronic waste.

    CCS Insight estimates iPhone accounts for around 80% of the organized secondary smartphone market.

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  • Forget the U.S: Pros say another top market looks cheap and offers the ‘best’ opportunities

    Forget the U.S: Pros say another top market looks cheap and offers the ‘best’ opportunities

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  • CNBC Daily Open: For banks, big profits don’t mean stock gains

    CNBC Daily Open: For banks, big profits don’t mean stock gains

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    A person enters the JPMorgan Chase headquarters in New York, June 30, 2022.

    Andrew Kelly | Reuters

    This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

    What you need to know today

    Lackluster markets
    U.S. stocks
    traded mixed Friday, with the Dow Jones Industrial Average the only major index to rise, though all big indexes ended in the green for the week. Asia-Pacific markets fell Monday. China’s Shanghai Composite retreated around 1.2%, leading losses in the region, after disappointing economic data.

    The Chinese economy slows
    China’s second-quarter gross domestic product grew 6.3% from a year ago, falling short of the 7.3% increase analysts had expected. Moreover, the number looks impressive on a year-on-year basis only because Shanghai was in lockdown this time last year. When tabulated month over month, GDP grew only 0.8%, much slower than the 2.2% increase in the first quarter.

    Caged bird
    Twitter’s experiencing negative cash flow because of an approximately 50% drop in advertising revenue and “heavy debt,” Elon Musk said Saturday morning. Musk, who is Twitter’s CTO and executive chairman, told a BBC reporter in April that the company’s “roughly breakeven” and expected to have positive cash flow within the next quarter.

    Thawing Activision Blizzard deal
    Microsoft’s one step closer to acquiring Activision Blizzard. The U.S. Appeals Court on Friday denied the Federal Trade Commission’s motion to stop the $68.7 billion deal, while Britain’s competition regulator said it would consider Microsoft’s proposals to “restructure the transaction.” Meanwhile, Sony’s signed a 10-year agreement with Microsoft to keep Activision’s Call of Duty on the PlayStation console.

    [PRO] Retail therapy
    China’s economy may be slowing, but the country’s “premium” spenders are still splashing out on goods, according to Bernstein. The private wealth management firm estimates there are 263 million people in that category, who are spending on products from these companies and potentially boosting their shares.

    The bottom line

    Despite big banks posting solid earnings for their second quarter, they didn’t reap rewards in stock markets Friday.

    Citigroup’s earnings and revenue beat expectations. Its shares sank 4.05%. Likewise, Wells Fargo reported better-than-expected earnings and revenue, and raised its guidance for full-year net interest income. Still, market response was muted. Shares of Wells Fargo slipped 0.34%

    Even JPMorgan, the grand dame of U.S. banks, didn’t manage to rouse investor interest. Its net income soared 67% year over year; its stock inched up 0.6%.

    Why aren’t investors more excited about banks?

    The memory of March’s banking turmoil, I think, still lingers. Higher interest rates may benefit big banks because their deposits are relatively sticky compared with those at regional banks — such as the ill-fated Silicon Valley Bank.

    But high rates are also deepening commercial real estate debt, impeding dealmaking and lowering loan demand — all headwinds for banks, regardless of their size. It’s hard, in other words, to muster enthusiasm over banks when rates are still at historically high levels.

    Another reason for the disinterest in the banking sector, I think, is because stocks are essentially promises of future earnings. And there’s nothing new or exciting that banks can do, really, to generate income.

    In fact, I’d argue that banks are supposed to be boring. No one wants the place where they entrust their money to be exciting. The banks that collapsed this year were all, loosely speaking, deviating from boring banking business: Focusing on tech startups, the crypto industry, or — in the case of Credit Suisse — just straightforwardly plagued by scandals.

    It’s maybe not a bad thing, then, that investors aren’t piling into big banks.

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  • CNBC Daily Open: For banks, big profits don’t mean market gains

    CNBC Daily Open: For banks, big profits don’t mean market gains

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    People walk outside of the JPMorgan Chase & Co. Headquarters on June 12, 2023. in New York.

    Eduardo Munoz Alvarez | View Press | Getty Images

    This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

    What you need to know today

    Lackluster markets
    U.S. stocks
    traded mixed Friday, with the Dow Jones Industrial Average the only major index to rise, though all big indexes ended in the green for the week. European markets closed lower after five positive sessions. The benchmark Stoxx 600 index retreated 0.11%, dragged down by telecom stocks after downbeat news from Nokia and Ericsson.

    Biggest bank gets bigger
    JPMorgan Chase’s second-quarter net income surged 67% to $14.5 billion, or $4.75 per share. When excluding its acquisition of First Republic, earnings were $4.37 per share. Revenue grew 34% to hit $42.4 billion, boosted by a 44% jump in net interest income. All figures beat Wall Street’s estimates — and the bank’s own, causing it to raise its expectations for the full year’s net interest income.

    Caged bird
    Twitter’s experiencing negative cash flow because of an approximately 50% drop in advertising revenue and “heavy debt,” Elon Musk said Saturday morning. Musk, who is Twitter’s CTO and executive chairman, told a BBC reporter in April that the company’s “roughly breakeven” and expected to have positive cash flow within the next quarter.

    Thawing Activision Blizzard deal
    Microsoft’s one step closer to acquiring Activision Blizzard. The U.S. Appeals Court on Friday denied the Federal Trade Commission’s motion to stop the $68.7 billion deal, while Britain’s competition regulator said it would consider Microsoft’s proposals to “restructure the transaction.” Meanwhile, Sony’s signed a 10-year agreement with Microsoft to keep Activision’s Call of Duty on the PlayStation console.

    [PRO] Ripple effects
    A judge in the Southern District of New York ruled Thursday that Ripple’s XRP token is “not necessarily a security on its face.” That’s a win not just for Ripple, a crypto company, but the wider industry. CNBC Pro’s Tanaya Macheel explains what the case means for crypto companies like Coinbase.

    The bottom line

    Despite big banks posting solid earnings for their second quarter, they didn’t reap rewards in stock markets Friday.

    Citigroup’s earnings and revenue beat expectations. Its shares sank 4.05%. Likewise, Wells Fargo reported better-than-expected earnings and revenue, and raised its guidance for full-year net interest income. Still, market response was muted. Shares of Wells Fargo slipped 0.34%

    Even JPMorgan, the grand dame of U.S. banks, didn’t manage to rouse investor interest. Its net income soared 67% year over year; its stock inched up 0.6%.

    Why aren’t investors more excited about banks?

    The memory of March’s banking turmoil, I think, still lingers. Higher interest rates may benefit big banks because their deposits are relatively sticky compared with those at regional banks — such as the ill-fated Silicon Valley Bank.

    But high rates are also deepening commercial real estate debt, impeding dealmaking and lowering loan demand — all headwinds for banks, regardless of their size. It’s hard, in other words, to muster enthusiasm over banks when rates are still at historically high levels.

    Another reason for the disinterest in the banking sector, I think, is because stocks are essentially promises of future earnings. And there’s nothing new or exciting that banks can do, really, to generate income.

    In fact, I’d argue that banks are supposed to be boring. No one wants the place where they entrust their money to be exciting. The banks that collapsed this year were all, loosely speaking, deviating from boring banking business: Focusing on tech startups, the crypto industry, or — in the case of Credit Suisse — just straightforwardly plagued by scandals.

    It’s maybe not a bad thing, then, that investors aren’t piling into big banks.

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  • Microsoft and Sony sign deal to keep Activision’s Call of Duty on PlayStation

    Microsoft and Sony sign deal to keep Activision’s Call of Duty on PlayStation

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    Game enthusiasts and industry personnel walk between the Microsoft Xbox and Sony PlayStation exhibits at the E3 trade show on June 16, 2015 in Los Angeles, California.

    Christian Petersen | Getty Images

    Sony has signed a binding, 10-year agreement with Microsoft to keep Call of Duty on its PlayStation gaming consoles after closing the Activision Blizzard acquisition, Microsoft said on Sunday.

    “We are pleased to announce that Microsoft and PlayStation have signed a binding agreement to keep Call of Duty on PlayStation following the acquisition of Activision Blizzard,” Microsoft Gaming CEO Phil Spencer said on Twitter Sunday.

    related investing news

    CNBC Investing Club

    Activision is the maker of the best-selling Call of Duty lineup. Regulators around the world had expressed significant concern about Microsoft’s power over the gaming market if an Activision acquisition was approved.

    Microsoft is the manufacturer of the Xbox, which competes directly with Sony’s PlayStation, prompting fears that Microsoft would be able to make games “exclusive” to its own consoles and displace Sony from competition.

    The deal does something to ameliorate those concerns, although Microsoft and Sony aren’t disclosing the duration of the agreement. A Microsoft spokesperson noted the deal was in place for the long term. The company has signed similar deals in the past.

    Anti-competitive concerns were shared by the CEO of Sony’s interactive entertainment division, Jim Ryan, as recently as last month. Ryan, whose portfolio includes PlayStation, said that he thought the proposed Activision Blizzard acquisition was not good for competition in videotaped June testimony.

    Microsoft vice chair Brad Smith said on Twitter Sunday that even after a potential deal closes, Microsoft “will remain focused on ensuring that Call of Duty remains available on more platforms and for more consumers than ever before.”

    The acquisition isn’t certain to close, although Microsoft and Activision’s prospects are markedly better after a federal appeals judge prevented the Federal Trade Commission from temporarily blocking the deal. The FTC had sued to stop the deal in San Francisco federal court in July but had failed to convince a judge that the deal would pose a sufficient anti-competitive risk.

    Regulators in the EU signed off on the deal in May. The U.K.’s Competition and Markets Authority, which has forced divestitures and blocked prior tech deals, said on Wednesday that it was prepared to negotiate with Microsoft over the terms of the deal.

    The two companies are aiming to complete their transaction by Tuesday, July 18.

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  • The biggest takeaways from Microsoft’s courtroom showdown with the FTC over Activision Blizzard

    The biggest takeaways from Microsoft’s courtroom showdown with the FTC over Activision Blizzard

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    Microsoft CEO Satya Nadella arrives at the U.S. DIstrict Court for the Northern District of California in San Francisco on June 28, 2023.

    Philip Pacheco | Bloomberg | Getty Images

    Microsoft and its current major acquisition target, video game publisher Activision Blizzard, have wrapped up their five days in court in San Francisco as the Federal Trade Commission sought to stop the deal from closing, but not without several fascinating facts coming to light.

    And not only about games. Information on Microsoft’s business ambitions, its process for okaying acquisitions, and its most critical rivals in cybersecurity was revealed as part of the hearing process, thanks to documents and testimony from executives. Large releases like this don’t happen every day, and in the past several years Microsoft has avoided prominent trials that can result in several notable disclosures at once.

    The FTC had originally planned to bring its case against the deal before an administrative law judge in August but then opted to seek a preliminary injunction in federal court as the agency became worried that Microsoft would try to close, even though some jurisdictions had not cleared the purchase.

    In addition to regulators in the U.S. and the United Kingdom, Sony also opposes the deal. Its PlayStation 5 console competes with the Xbox Series S and X consoles, and the company has said that anticompetitive effects would arise if Microsoft were to take control of Activision Blizzard.

    Here’s a rundown of notable facts that have trickled out in recent days and are still lingering after both parties presented their closing arguments on Thursday.

    • Mobile, mobile, mobile. The impulse to expand Microsoft’s gaming business on mobile devices at least in part inspired the Activision acquisition. “It was very imperative to us if we were going to remain [relevant and] grow relevance in the market, we were going to have to find mobile customers for Xbox,” Phil Spencer, Microsoft’s CEO of gaming, said last Friday. Revenue from mobile gaming is growing faster than revenue from gaming on PCs or consoles, and Microsoft executives repeatedly said in the hearings that the company has made little progress on building key mobile gaming content.
    • Several earlier mobile targets. Microsoft considered several other companies before choosing to buy Activision Blizzard, including FarmVille publisher Zynga, Pokemon Go developer Niantic and Japanese digital entertainment mainstays Sega Sammy and Square Enix, according to testimony and documents released in the case.
    • Interest in Asia. While Xbox consoles have a respectable market share in the U.S., they’re less popular in Japan, where Nintendo and Sony rule. A 2019 analysis Microsoft produced for a possible Square Enix bid said that “acquiring Square Enix would provide Gaming with market relevance in a region that currently lacks a meaningful Xbox presence, allowing us to reach more gamers in more geographies.”
    • Valuable incentives. Sony has paid game developers fees to discourage them from shipping games such as “Ghostwire: Tokyo” and “Deathloop” on Xbox, Microsoft executives said. Microsoft pays its own fees, and Spencer said that buying Activision Blizzard would mean Microsoft wouldn’t have to spend as much on incentives.
    • Many games under consideration. One of the more dramatic moments in the five days of hearings was when the FTC’s lead lawyer, James Weingarten, sought to push Spencer to make certain commitments on Microsoft’s part. Weingarten got Spencer to say he would not pull any future Call of Duty game from PlayStation consoles, a statement that was in keeping with what Microsoft has said for months. Then Weingarten went further, asking Spencer to do the same thing with all Activision content. Spencer did not immediately agree. Activision Blizzard publishes many other games besides Call of Duty, such as those in the Diablo and Overwatch franchises, but the bulk of the attention was on Call of Duty. Jim Ryan, CEO of Sony Interactive Entertainment, wasn’t happy with a Microsoft-generated list of Activision Blizzard games that would remain accessible on the PlayStation after the acquisition closes. “Overwatch is there, but Overwatch 2 is not on there, which is the current version of the game,” he said.
    • Microsoft’s long-range ambitions. The FTC managed to get ahold of documents Microsoft CEO Satya Nadella sent to top executives and fellow board members that laid out Microsoft’s financial goals for the current decade. The documents showed that Nadella is aiming for Microsoft to generate $500 billion by the 2030 fiscal year, with at least 10% year-over-year revenue growth. One document said Microsoft’s Security, Compliance, Identity and Management business could reach $100 billion in revenue by the 2030 fiscal year, while the company wants its Teams communication app to reach 1 billion monthly active users by then.
    • Weak hardware access. Spencer said during his testimony that Sony was reluctant to send Microsoft development kits for the PlayStation 5 before its 2020 release, and that prevented Microsoft from optimizing its Minecraft game for Sony’s current console. That put the game at a disadvantage compared with other developers, Spencer said. Ryan, from Sony, explained why his company provides development kits to Microsoft later than it does for other studios. “The commercial risks associated with this knowledge of those feature sets leaking to our principal competitor is not something that we would choose to rely on any contract to enforce,” Ryan said. Gamers can find an older version of Minecraft on the PlayStation 5.
    • Deal threshold. Amy Hood, Microsoft’s finance chief, said in written testimony for the hearing that she provides final approval for proposed deals under a certain dollar amount, but Microsoft’s board must sign off on deals valued above $500 million. Microsoft had $104 billion in cash and equivalents at the end of March, and 2022 revenue exceeded $204 billion.
    • Negotiating leverage. Microsoft was determined to ensure that Activision Blizzard’s Call of Duty games remain on Xbox for its current generation, which debuted in 2020. Bobby Kotick, Activision Blizzard’s CEO, conveyed that if Microsoft refused to provide a more favorable revenue share than the usual 70-30 split, then the games would not continue to be available, Microsoft executive Sarah Bond said. An FTC lawyer accidentally mentioned that Microsoft agreed to accept 20% instead of the typical 30%.
    • Sony’s altered expectations. In early 2022, two days after Microsoft announced its plan to buy Activision Blizzard, Ryan wrote in an email to another Sony Group executive that he was “pretty sure” Call of Duty would be available on PlayStation consoles for many years. But he appeared to lose confidence in that belief. In videotaped testimony, Ryan said he had “significant concerns” as to whether Call of Duty and other Activision Blizzard games would continue to be available on PlayStation after the transaction.
    • Kotick’s console mistake. Kotick has been in video games for decades, and he fumbled when he looked for the first time at the Nintendo Switch console and decided that it would not be successful. He had been more impressed with Nintendo’s earlier Wii console. The Switch became the third best-selling console of all time. When an FTC lawyer asked Kotick if Activision Blizzard would produce a Call of Duty game for a future Nintendo console, he said, “We missed out on the opportunity for the past generation of Switch, so I would like to think we would be able to do that, but we’d have to look.”
    • Game Pass opposition. Kotick made it clear that while Activision Blizzard has experimented with putting games in subscription libraries, he didn’t think they would lead to “sustainable long-term business.” He said he considered putting games on Game Pass in 2020 during negotiations with Microsoft over Activision Blizzard’s most recent licensing agreement, but ultimately the company decided not to go forward with it, he said. He couldn’t imagine anyone offering commercial terms that would be favorable, he said.
    • Whither Amazon? Weingarten pointed out that while Microsoft agreed to provide Call of Duty to small cloud gaming players such as Boosteroid and Ubitus, it has not done the same with Amazon, which fields the Luna cloud gaming service. Amazon is among Microsoft’s most prominent competitors in the cloud-computing business.
    • Cloud flop. Microsoft has sought to supplement PC and console gaming with a cloud-based streaming option, which is included with the Game Pass Ultimate service, along with a library of games to download and play for a monthly fee. Microsoft began testing cloud gaming with consumers in 2019. Bond testified that gamers mainly use the cloud option not with their phones but with their consoles, while they wait for downloads to finish. At that point, they switch to playing games locally, she said. The cloud gaming option is not growing and is unprofitable, Tim Stuart, finance chief for Microsoft’s Xbox division, said during his testimony. “The feedback to date is that it’s just not good enough as a — you know, definitely as a substitute to any of the current platforms,” Nadella said. “But you know, it can break through at some point, on something new, but it’s not yet happened, both on the economics as well as the content side.”
    • Sizing up cloud infrastructure. The big-picture memos from Nadella contained figures for the scale of various businesses across Microsoft, and one is more important than the others for the company’s investors. Perhaps the most closely tracked number in Microsoft’s earnings report after revenue and earnings is the growth of the Azure public cloud, because the software maker doesn’t disclose Azure revenue in dollars. One of the Nadella memos said Microsoft’s “infrastructure” revenue in the 2022 fiscal year was $34 billion. The tally was “very close to our estimates,” Bernstein Research analysts led by Mark Moerdler, with the equivalent of a buy rating on Microsoft stock, said in a Thursday note.
    • Critical security rivals. One of the documents that became publicly available as part of the hearing identified four security companies that Microsoft used to track its sprawling cybersecurity operation. The results contributed to a scorecard to assess performance among Microsoft’s top executives. Scorecard metrics included the percentage of “managed accounts with at least one Okta detection,” the percentage of “commercial Windows 10/11 MAD [monthly active devices] that have CrowdStrike components detected,” the percentage of “mail recipients that are protected by Proofpoint,” and percentage of “Commercial Windows 10/11 MAD that have Symantec DLP components detected.”
    • Exclusive exploration. Microsoft has argued that it would keep Call of Duty on PlayStation and make games in that franchise available on multiple cloud streaming services for a decade. “The acquisition’s strategic rationale and financial valuation are both aligned toward making Activision games more widely available, not less,” Hood said in written testimony. But on the fifth and final day of hearings, the FTC succeeded in getting witnesses to show that Microsoft did evaluate ways of trying to reduce the availability of Activision Blizzard content on the Sony PlayStation. Stuart confirmed that in preparation for a Microsoft board meeting, executives examined a scenario of lower sales of Activision Blizzard games on the PlayStation and ways of making up for the shortfall with sales of more Xbox consoles and Game Pass subscriptions.

    Activision Blizzard and Microsoft have agreed to terminate the deal if it’s not done by July 18. District Judge Jacqueline Scott Corley said on Thursday that she isn’t sure when she’ll decide on the preliminary injunction. “But obviously, I’m mindful,” she said.

    WATCH: Activision Blizzard CEO Bobby Kotick and Microsoft CEO Satya Nadella to testify today

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  • ‘The Flash,’ ‘Elemental’ disappoint as ‘Spider-Verse’ continues box office domination

    ‘The Flash,’ ‘Elemental’ disappoint as ‘Spider-Verse’ continues box office domination

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    Ezra Miller stars as Barry Allen in Warner Bros.’ “The Flash.”

    Warner Bros. Discovery

    Moviegoers spread the wealth over Father’s Day weekend across a diverse slate of new releases and lingering favorites.

    The mixed results saw disappointing debuts from “The Flash” and “Elemental,” while “Spider-Man: Across the Spider-Verse” continued to attract ticket buyers.

    Warner Bros.’ latest superhero film hauled in just $55 million during its first three-day weekend, a far cry from the $75 million to $85 million industry experts had expected. It also fell short of the $67 million debut of fellow DC film “Black Adam” last October.

    “‘The Flash’ is a victim of numerous factors that stalled buzz for the once highly anticipated film,” said Shawn Robbins, chief analyst at BoxOffice.com.

    Robbins pointed to the ongoing controversy surrounding star Ezra Miller, a lack of consistency in the DC film franchise and a too-narrowly focused marketing campaign that only targeted die-hard fans for the lower-than-expected box office opening.

    “Audiences have shown in recent months and post-‘Endgame’ years that they are being more selective about which comic book films are going to earn their box office dollars,” he said.

    It wasn’t the only film to see a poor audience response over the weekend. Disney’s animation rut continued with the release of “Elemental,” which is expected to have the second-lowest opening of any wide-released Pixar film in the studio’s history. Estimates peg the film’s debut at $29.5 million, just higher than the $29.1 million “Toy Story,” Pixar’s first-ever theatrical release, which opened in 1995.

    “[‘Elemental’s’] middling debut is less surprising,” Robbins said, noting that Pixar is in the middle of rebranding itself following a slew of pandemic-era streaming releases.

    Pixar is also facing steep competition from rival animation studios. Universal’s Illumination and DreamWorks animation arms have dominated the box office with hits like “The Super Mario Bros. Movie,” “Puss in Boots: The Last Wish” and “Minions: The Rise of Gru.”

    And then there is Sony’s “Spider-Man: Across the Spider-Verse,” which has continued to attract audiences since its June 2 debut. The film generated an estimated $27.8 million over the three-day spread and has tallied $489.3 million globally since its June 2 release.

    “Though there were no massive overperformances by the wide-release newcomers, this weekend was distinguished by the sheer number of movies and the wide variety of audience demographics drawn to the multiplex,” said Paul Dergarabedian, senior media analyst at Comscore.

    Paramount’s “Transformers: Rise of the Beasts” added another $20 million domestically, Disney’s “The Little Mermaid” secured another $11.6 million in ticket sales and Marvel’s “Guardians of the Galaxy: Vol. 3” took in another $5 million.

    Across Friday, Saturday and Sunday of the Father’s Day weekend, the domestic box office is expected to tally just under $175 million in receipts. That’s 5% higher than the haul over the same period in 2022 and 28% higher than 2019, according to data from Comscore.

    “Father’s Day weekend, while not boasting a record-smashing breakout hit, was a great one for movie theaters that saw their fortunes rise by virtue of an appealing assortment of films that powered a fantastic overall weekend,” said Dergarabedian.

    Disclosure: Comcast is the parent company of NBCUniversal and CNBC.

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  • Sony posts record annual profit boosted by chips and all-time high PlayStation 5 sales

    Sony posts record annual profit boosted by chips and all-time high PlayStation 5 sales

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    Sony aims to sell 18 million PlayStation 5 consoles in its financial year ending in March 2023.

    Thiago Prudencio | Lightrocket | Getty Images

    Sony posted record annual operating revenue on Friday, helped by its chip division and sales of its flagship PlayStation 5 gaming console which hit a record for the financial year.

    Here’s how Sony did in the March quarter versus Refinitiv consensus estimates:

    • Revenue: 3.06 trillion Japanese yen ($22.7 billion) versus 2.92 trillion yen expected. That represents a 35% year-on-year rise.
    • Operating profit: 128.5 billion Japanese yen versus 124.34 billion yen expected. That represents a 7% year-on-year fall.

    For its full fiscal year which ended in March, Sony previously forecast operating profit of 1.18 trillion yen and 11.5 trillion yen in revenue. The company beat its own forecast with 1.21 trillion yen in operating profit, a record for the company.

    Sony forecast its sales for the current fiscal year, which ends in March 2024, will be 11.5 trillion yen, roughly flat versus last year. It said operating profit would come in at 1.17 trillion yen, down 3% year-on-year.

    PlayStation 5 sales hit record

    Sony said it sold 19.1 million PlayStation 5 consoles in the financial year, beating its own forecast of 18 million. That was up from 11.5 million PS5 units sold in the previous fiscal year when Sony was facing supply chain issues.

    The Japanese giant’s gaming division was one of its biggest profit drivers for the year, bringing in operating profit of 250 billion yen, although that was down 27% year-on-year.

    For the fiscal year, Sony’s gaming division brought in revenue of 3.64 trillion yen, up 33% year-on-year. The business was Sony’s biggest category by sales.

    Sony forecast operating profit for its gaming business to be 270 billion yen for the current fiscal year. The company is hoping PlayStation VR 2, the company’s virtual reality gaming headset, will help add to sales. The company said it will see an improvement in profitability from hardware next year.

    This is a breaking news story. Please check back for more.

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  • Sony teases 2023 film slate, including R-rated ‘Kraven The Hunter’

    Sony teases 2023 film slate, including R-rated ‘Kraven The Hunter’

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    Tom Holland is Spider-Man in the Sony-Marvel film “Spider-Man: No Way Home.”

    Sony

    LAS VEGAS — CinemaCon kicked off Monday with a major announcement from Sony Pictures — its upcoming “Kraven the Hunter” would mark the first R-rated Marvel film produced by the studio.

    The reveal came during the company’s presentation at the annual convention for Hollywood studios and movie theater owners in Las Vegas, in which Sony unveiled new footage and trailers from its upcoming slate, including “Spider-Man: Across the Spider-Verse,” “Gran Turismo” and “No Hard Feelings.”

    “F— yes, it’s rated R,” said Kraven himself Aaron Taylor-Johnson in a pretaped teaser for the film before Sony showed the first trailer for the profane and bloody action flick.

    Kraven wouldn’t be the first R-rated superhero flick to hit theaters in the last decade. Fans of the genre have been treated to “Logan,” “Deadpool,” “Watchmen” and “The Suicide Squad” in recent years from 20th Century Fox (now owned by Disney) and Warner Bros. Discovery. But it opens the door for Sony to develop darker, bloodier and more mature films within the Spider-Man universe — namely, around the fan favorite character Venom.

    Sony currently owns the film rights to Spider-Man and his cavalcade of villains and has found success in alternative universe productions that fall outside Disney’s Marvel Cinematic Universe. The companies have partnered on three MCU standalone Spider-Man films featuring Tom Holland in the spidey suit and have granted Disney permission to use the character in its ensemble films.

    In 2023, the studio will have a sequel to its Oscar-winning animated feature “Spider-Man: Into the Spider-Verse.” On Monday, the company shared an extended look at “Spider-Man: Across the Spider-Verse,” in which Miles Morales reunites with Gwen Stacy after becoming Brooklyn’s full-time friendly neighborhood Spider-Man.

    He’s catapulted into the Multiverse where he encounters a team of Spider-People charged with protecting it. When the heroes clash on how to handle a new threat, Miles finds himself pitted against the other Spiders.

    Sony showed 14 minutes of the film — due out June 2 — to CinemaCon audiences, who laughed and cheered for the uniquely animated feature.

    Josh Greenstein, president of Sony Pictures’ Motion Picture Group, teased that the company would release 23 movies in 2023, after being introduced via video by Will Smith and Martin Lawrence, who are currently filming “Bad Boys 4.”

    Sony showed the opening clip of “Dumb Money,” a film by Craig Gillespie about how an everyday investor played by Paul Dano flipped the script on Wall Street, placing all his savings into GameStop in 2021. The film due out in October also stars Sebastian Stan, Seth Rogen, Pete Davidson, Shailene Woodley, America Ferrera, Anthony Ramos, Vincent D’Onofrio, Dane DeHaan and Nick Offerman.

    It followed with trailers for “Insidious: The Red Door,” due out in July, “The Machine,” coming in May and “Gran Turismo,” hitting screens in August.

    Sony also showcased a clip from Jennifer Lawrence’s upcoming R-rated drama “No Hard Feelings” to raucous applause. It also teased an R-rated comedy “Anyone But You” starring Sydney Sweeney and Glen Powell as well as a sequel to “Ghostbusters: Afterlife.”

    After accepting CinemaCon’s Lifetime Achievement Award, Denzel Washington brought on stage Antoine Fuqua and Dakota Fanning to show a trailer of “The Equalizer 3.”

    “You can see at Sony we are not f—ing around,” said Tom Rothman, chairman and CEO of Sony Pictures’ Motion Picture Group, closing out the presentation.

    He revealed that Apple and Ridley Scott’s “Napoleon” will be distributed by Sony. The film, due out at Thanksgiving, will have a “robust window,” Rothman promised.

    “Hold onto your tri-cornered hats,” he teased before showing the first footage of the war epic, which recieved thunderous applause.

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  • Activision shares jump as British competition regulator drops key concern on Microsoft takeover

    Activision shares jump as British competition regulator drops key concern on Microsoft takeover

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    An Activision Blizzard’s Call of Duty: Modern Warfare video game is inserted into the Microsoft’s Xbox One video game console arranged in Denver, Colorado, on Wednesday, Jan. 19, 2022.

    Michael Ciaglo | Bloomberg | Getty Images

    Shares of Activision Blizzard surged Friday, after the U.K.’s Competition and Markets Authority narrowed the scope of its investigation into Microsoft‘s takeover of the games publisher.

    The development marks a partial win for Microsoft, as it pursues an expansion of its video game business. The Redmond, Washington-based technology giant has deepened its focus on gaming through blockbuster acquisitions, such as its purchase of ZeniMax Media, the parent company of Bethesda Softworks.

    related investing news

    CNBC Investing Club

    In February, the CMA published provisional findings from its probe into the takeover, stating at the time that the transaction may result in higher prices, fewer choices and less innovation. Among its concerns, the regulator flagged that the deal would cause a substantial lessening of competition in the console gaming market.

    Since then, the regulator has received a “significant amount” of feedback from various industry participants on the deal. With this new evidence, the CMA now says it no longer believes the transaction will hamper competition in console games.

    “Having considered the additional evidence provided, we have now provisionally concluded that the merger will not result in a substantial lessening of competition in console gaming services because the cost to Microsoft of withholding Call of Duty from PlayStation would outweigh any gains from taking such action,” Martin Coleman, chair of the independent panel of experts conducting the CMA investigation, said in a statement Friday.

    “Our provisional view that this deal raises concerns in the cloud gaming market is not affected by today’s announcement. Our investigation remains on course for completion by the end of April.”

    Shares of Activision Blizzard were up more than 5% in morning trading in the U.S., after earlier surging more than 7% to a new 52-week high. Microsoft’s stock declined slightly amid a broad market slump.

    Call of Duty distribution in focus

    The CMA announcement comes after the U.S. technology giant has also won support from some companies that were against the deal, or sitting on the fence.

    One of the major concerns from Microsoft’s competitors was that the transaction would block distribution access to Activision’s crown jewel franchise — Call of Duty. Last month, Microsoft said it signed a “binding 10-year legal agreement” to bring Call of Duty to Nintendo players on the same day as Microsoft’s Xbox, “with full feature and content parity.”

    Additionally, Microsoft signed a deal with Nvidia to bring its Xbox games to Nvidia’s GeForce Now cloud gaming service. Microsoft said it would also bring the Activision games library to Nvidia’s service, if the acquisition closes. Nvidia was reportedly against Microsoft’s Activision takeover. 

    But Microsoft has yet to bring onside its biggest rival, Sony, which owns the PlayStation console. Microsoft President Brad Smith told CNBC last month that the company is offering Sony the same agreement as it did Nintendo — to make Call of Duty available on PlayStation at the same time as on Xbox, with the same features. Sony still opposes the deal.

    Microsoft looks to allay EU fears over Activision takeover with Nintendo, NVIDIA deals

    “We appreciate the CMA’s rigorous and thorough evaluation of the evidence and welcome its updated provisional findings,” a Microsoft spokesperson told CNBC via email.

    “This deal will provide more players with more choice in how they play Call of Duty and their favorite games. We look forward to working with the CMA to resolve any outstanding concerns.”

    An Activision spokesperson told CNBC that the CMA’s updated provisional findings “show an improved understanding of the console gaming market and demonstrate a commitment to supporting players and competition.”

    “Sony’s campaign to protect its dominance by blocking our merger can’t overcome the facts, and Microsoft has already presented effective and enforceable remedies to address each of the CMA’s remaining concerns. We know this deal will benefit competition, innovation, and consumers in the UK.”

    Microsoft is not completely off the hook.

    The CMA says it still has reservations about the deal as it pertains to cloud gaming, where delivery of games content is handled from remote servers rather than from a device’s internal memory. Notably, cloud gaming is still in its infancy and not yet a mass-market technology.

    In its provisional conclusions, the CMA suggested that Microsoft may need to divest part or all of Activision — or its CoD franchise alone — to resolve its concerns. The CMA did not provide an update as to whether it believes this remains a potential resolution.

    The watchdog will make its final decision on April 26.

    Microsoft also still faces uncertainty from regulators in the U.S. and European Union. Smith traveled to Brussels last month to meet with EU regulators. In the U.S., the Federal Trade Commission filed an antitrust case against Microsoft attempting to block the Activision deal.

    Some major companies retain reservations about the acquisition, which includes Google parent Alphabet, according to Bloomberg.

    — CNBC’s Steve Kovach contributed to this report.

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  • Nvidia supports Microsoft, Activision merger after Xbox deal to add games to cloud service

    Nvidia supports Microsoft, Activision merger after Xbox deal to add games to cloud service

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    BRUSSELS — Microsoft said Tuesday it will bring its Xbox PC games to Nvidia’s cloud gaming service, after the chipmaker had reportedly expressed opposition to a major Microsoft gaming deal.

    The announcement comes after Microsoft President Brad Smith met with European Union officials on Tuesday in a bid to convince them that its planned $69 billion acquisition of Activision Blizzard will be good for competition.

    Microsoft is offering the olive branch to stop the takeover from being blocked and thereby expand its gaming unit, which represents 9% of its total revenue. While sales of Microsoft’s Xbox consoles are slowing down, the company has been drawing on its cash pile to expand the collection of games it can sell and allow people to play through its cloud data centers.

    Microsoft President Brad Smith said at a press conference that, effective immediately, its Xbox games will be available on Nvidia’s GeForce Now cloud games service. Smith said if the Activision deal closes, it will bring all Activision Blizzard titles to GeForce Now.

    Nvidia is now on board with Microsoft’s pending deal for regulatory purposes, the two companies said in a joint statement confirming the two companies 10-year deal. In January Bloomberg reported that Nvidia had gone to the U.S. Federal Trade Commission with complaints about the Activision deal.

    “Combining the incredibly rich catalog of Xbox first party games with GeForce Now’s high-performance streaming capabilities will propel cloud gaming into a mainstream offering that appeals to gamers at all levels of interest and experience,” Jeff Fisher, Nvidia’s senior vice president for GeForce, was quoted as saying. “Through this partnership, more of the world’s most popular titles will now be available from the cloud with just a click, playable by millions more gamers.”

    Microsoft proposed its Activision Blizzard acquisition in January 2022, but since then, the buyer has faced pushback from regulators in the U.S., European Union and U.K.

    The Nvidia arrangement is meaningful because “now we’re addressing the full range of issues that have been raised by regulators as topics of not just interest but in some cases concern,” Smith said at the press conference.

    In November, the European Commission, the EU’s executive arm, opened an in-depth investigation into the deal citing concerns that it could reduce competition in the video games market.

    Activision Blizzard is the company behind popular game franchise Call of Duty. The EU commission said last year it is concerned that Microsoft could block access to the game on other platforms if the deal goes through.

    The commission is also concerned that it could give Microsoft an unfair edge in the nascent area of cloud gaming. Microsoft has a service called Game Pass through which it charges gamers $9.99 per month to access a library of games. The Activision takeover would add some high-profile titles to Game Pass.

    Nvidia’s GeForce Now has over 25 million members, while Microsoft said last year that 25 million people subscribe to Game Pass. Nvidia offers free and paid GeForce Now tiers, although high resolution is only available to those who pay. Members of GeForce Now will be able to stream through the cloud the games they buy through Microsoft’s app store, along with games listed in Epic Games and Steam’s app stores.

    In December, Microsoft said it had “entered into a 10-year commitment” to bring Call of Duty to Nintendo when the Activision acquisition closes. The announcement was seen as a move to assuage regulators’ antitrust concerns. On Tuesday, Smith tweeted that the two signs have now signed a “binding 10-year legal agreement” to bring Call of Duty to Nintendo players on the same day as Microsoft’s Xbox, “with full feature and content parity.”

    Smith declined to comment on the views of the European Commission in the hearing, but said the Nintendo and Nvidia deals are good for competition in the gaming market.

    “I think if you’re a competition regulator, and you’re focused on the interests of consumers and competition, today was a good day,” Smith told CNBC.

    Microsoft hopes for Sony deal

    Smith on Tuesday led a delegation that included Microsoft Gaming CEO Phil Spencer and Activision Blizzard CEO Bobby Kotick, Reuters reported, citing a European Commission document that the news agency had seen. Sony’s gaming chief Jim Ryan was also in attendance, Reuters added. Sony, Microsoft’s biggest rival, opposes the Activision takeover.

    Microsoft logo is seen on a smartphone placed on displayed Activision Blizzard logo in this illustration taken January 18, 2022.

    Dado Ruvic | Reuters

    Sony was not immediately available for comment when contacted by CNBC.

    During a press conference on Tuesday, Smith held up a piece of paper saying it is an agreement he is ready to send to Sony.

    Smith told CNBC that Microsoft is offering Sony the same agreement as Nintendo — to have Call of Duty available on the PlayStation the same time as Xbox with the same features. However, Sony still remains opposed to the deal.

    “I live with the hope that we’ll come to terms with Sony,” Smith told CNBC.

    “We’re not there yet. But I do think as we make progress with others, if we can get a deal done with Nintendo, if we can get an agreement with Nvidia, it should provide a path forward that others like Sony can build on as well.”

    U.K., U.S. regulators take aim at deal

    It’s not only European regulators that have concerns about the deal.

    The U.K.’s Competition and Markets Authority said this month that the takeover raises competition concerns and may result in higher prices, fewer choices and less innovation. The regulator said it could move to block the deal and suggested several remedies Microsoft could take. One of those involved Microsoft divesting the business responsible for Call of Duty.

    Smith said that Microsoft doesn’t see a “feasible path” to sell off the Call of Duty game.

    “It just isn’t something that seems to be lining up,” Smith told CNBC.

    “The only reason to sell it off is the CMA’s potential concern that if we buy it, we won’t provide it to others as broadly. I think that concern should be dispelled by the two agreements we’ve signed today.”

    In December, the FTC filed an antitrust case against Microsoft attempting to block the Activision deal.

    Google parent Alphabet also went to the FTC with dissatisfaction about Microsoft’s deal, Bloomberg reported.

    “The European Commission asked for our views in the course of their inquiries into this issue. We will continue to cooperate in any processes, when requested, to ensure all views are considered,” a Google spokesperson told CNBC in an email.

    Smith declined to comment on Alphabet’s exact concerns with the Activision deal but recognized the company’s potential misgivings.

    “It’s easy to understand that Google might have questions about whether something like Call of Duty would be available in the future on say Chromebooks and the Chrome operating system,” Smith said.

    The Nvidia agreement addresses that as the GeForce Now cloud gaming service is available on ChromeOS, Smith said. Microsoft is able to maintain compliance with the sorts agreements with European regulators that might require it to keep Call of Duty on Chrome OS, he said during the press conference.

    “With the agreement we’ve done with Nvidia, we’ve just ensured Google will benefit as well,” Smith said.

    Microsoft has maintained that its takeover of Activision Blizzard would not harm competition in video gaming and instead increase competition against large players like Sony and Chinese giant Tencent.

    Microsoft has remained behind the likes of Sony and Nintendo in the video-gaming business. Microsoft’s Xboxes have lagged Sony’s PlayStation 5 and Nintendo’s Switch. Sony and Nintendo’s popularity has come from its large number of successful first-party games. Microsoft is looking to boost its games library with the Activision acquisition.

    Activision Blizzard shares edged up during Tuesday’s U.S. trading session following the announcement.

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  • Marvel’s ‘Ant-Man and the Wasp: Quantumania’ scores $104 million during domestic debut

    Marvel’s ‘Ant-Man and the Wasp: Quantumania’ scores $104 million during domestic debut

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    Paul Rudd is Scott Lang, aka Ant-Man, alongside Johnathan Majors as Kang the Conqueror in “Ant-Man and the Wasp in Quantumania.”

    Disney

    Disney and Marvel Studios’ “Ant-Man and the Wasp: Quantumania” scored an estimated $104 million at the domestic box office during its opening weekend.

    The 31st Marvel Cinematic Universe film kicked off phase five of the 15-year-old franchise and established the next overarching villain for the series — Kang (Jonathan Majors). The character was first seen in the Disney+ series “Loki.”

    “Quantumania’s” domestic haul is nearly double what the first standalone Ant-Man film opened to in 2015 and marks the 31st consecutive MCU release to debut at number one at the domestic box office.

    “Marvel has perhaps been more under the microscope in post-Endgame times than they’re used to with several films and streaming series occasionally not registering as well with critics and/or audiences as the brand is used to, which made this release even more important as it promises to kickstart Phase 5,” said Shawn Robbins, chief analyst at BoxOffice.com.

    “Although some critics didn’t take to the third Ant-Man entry, audiences still turned out for the film in strong numbers to the tune of more tickets sold on opening weekend than for any prior Ant-Man release,” he said.

    Internationally, “Quantumania” took in $121 million, bringing its estimated global haul for the three-day spread to $225 million.

    “The power of the Marvel brand to drive moviegoers to the multiplex is undeniable and the excitement surrounding phase five of the MCU makes ‘Ant-Man and the Wasp: Quantumania’ essential viewing for any fan looking to jumpstart their enthusiasm for this new era in the ongoing Marvel saga,” said Paul Dergarabedian, senior media analyst at Comscore.

    The film is expected to drive more than seven million patrons to theaters this weekend, according to data from EntTelligence. That’s more than double what Sony’s “Uncharted” lured in during last year’s Presidents Day weekend.

    “This Presidents weekend boasts the first true blockbuster opener of 2023,” said Comscore’s Dergarabedian. “‘Ant-Man and the Wasp: Quantumania’ sets into motion what looks to be week after week of solid moviegoing and creates momentum for a solid summer movie season.”

    Additionally, 28% of ticket buyers opted for premium format theaters, paying an average of $4.29 more per ticket.

    Higher foot traffic and higher ticket spending are good signs for the overall movie theater industry, which suffered considerably during the pandemic and is still recovering.

    “We often talk about dates circled on the calendar as potential inflection points, and this weekend was the latest for the movie industry,” said Robbins of BoxOffice.com. “After a brief dip in tentpole releases following the holidays, a better-than-expected January and this healthy result from ‘Quantumania’ pave the way for a significant pick-up in high-profile theatrical content once March begins.”

    “All told, 2023 is still in its infancy but is thus far living up to expectations as a year theaters and studios can be enthused about,” he said.

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  • Microsoft’s $69 billion Activision takeover in doubt as UK regulator raises competition concerns

    Microsoft’s $69 billion Activision takeover in doubt as UK regulator raises competition concerns

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    An Activision Blizzard’s Call of Duty: Modern Warfare video game is inserted into the Microsoft’s Xbox One video game console arranged in Denver, Colorado, on Wednesday, Jan. 19, 2022.

    Michael Ciaglo | Bloomberg | Getty Images

    The British competition regulator says that Microsoft’s $69 billion acquisition of gaming giant Activision Blizzard could harm competition in the U.K. gaming market, and that it could move to block the deal.

    The Competition and Markets Authority published a provisional decision on the deal on Wednesday, stating that the takeover raises competition concerns and may result in higher prices, fewer choices and less innovation.

    In a notice of possible remedies sent to both parties, the CMA said it may require Microsoft to:

    • sell the business associated with its popular Call of Duty franchise
    • divest the Activision segment of Activision Blizzard
    • divest both Activision and Blizzard
    • terminate the deal

    Microsoft and Activision Blizzard have until Feb. 22 to respond. The CMA is set to issue a final decision on April 26. The regulator opened an in-depth probe into the deal on Sept. 1.

    The CMA is concerned that the Activision deal could strengthen Microsoft’s position in the cloud gaming market, adding Call of Duty and other lucrative titles to its cloud-based Xbox Game Pass platform.

    Cloud gaming, which allows gamers to play games over the internet on devices other than a console, is still in its infancy and not yet a mass-market technology.

    The deal would also boost Microsoft’s console business, the CMA said, adding that Microsoft would find it “commercially beneficial” to make Activision games exclusive to its Xbox hardware or available on PlayStation “under materially worse conditions.”

    This “could substantially reduce the competition between Xbox and PlayStation in the UK, in turn harming UK gamers,” the watchdog noted.

    Activision Blizzard shares were down 2% on Wednesday following the CMA announcement. Microsoft shares, meanwhile, were trading 2% higher on the back of an announcement about the tech giant’s artificial intelligence advancements.

    “We are committed to offering effective and easily enforceable solutions that address the CMA’s concerns,” said Rima Alaily, Microsoft corporate vice president and deputy general counsel, in an emailed statement to CNBC.

    Microsoft has made commitments to Sony and Nintendo to continue releasing its new Call of Duty games on their respective PlayStation and Switch gaming platforms for 10 years.

    An Activision Blizzard spokesperson said the company hopes to “help the CMA better understand our industry to ensure they can achieve their stated mandate to promote an environment where people can be confident they are getting great choices and fair deals.”

    Activision Blizzard CEO Bobby Kotick also sent an internal memo to employees Wednesday, saying that the company was “confident that the law – and the facts – are on our side.”

    “In this case, our combined companies will bring more competition to an already crowded field of world-class gaming competitors, including Sony, Tencent, NetEase, Apple, Amazon, and Facebook,” Kotick added. “We believe this merger gives us additional resources to compete with such giants.”

    The Microsoft-Activision deal also faces scrutiny in the U.S. and European Union.

    Stateside, the Federal Trade Commission is seeking to block the purchase on competition grounds, while the European Commission also has a competition investigation into the transaction. The commission, which is the executive arm of the EU, recently filed a charge sheet known as a statement of objections setting forth its concerns about the deal, according to Reuters.

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  • Global spending on mobile games falls 5% as high inflation causes market to cool

    Global spending on mobile games falls 5% as high inflation causes market to cool

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    The Candy Crush Saga logo displayed on a phone screen.

    Jakub Porzycki | NurPhoto via Getty Images

    Spending on mobile games declined last year as consumers got more frugal with their purchasing decisions in response to rising inflation, according to a report from app analytics firm Data.ai.

    Mobile game spending fell 5% globally in 2022, to $110 billion, Data.ai, which was formerly known as App Annie, said in its “State of Mobile” report Wednesday. The report also looks at the broader state of sectors like mobile ads, retail and social media apps.

    Nevertheless, first-time installs of mobile titles rose 8% to a record 90 billion, with so-called “hypercasual” titles leading the gains.

    “We are seeing this major theme emerge of people being more price sensitive and financially more conservative,” Lexi Sydow, head of insights at Data.ai, told CNBC, adding that the “biggest hit” to spending on apps was in gaming.

    Faced with economic headwinds such as higher prices and borrowing costs, people are cutting back on discretionary purchases. Gaming especially has come under pressure.

    Global sales of games and services, including console and PC games, were expected to contract 1.2% year-on-year to $188 billion in 2022, according to a July research note from market data firm Ampere Analysis.

    In recent years, growth in mobile gaming has been the dominant story in the games industry, with major publishers making big bets on mobile game developers.

    Read more about tech and crypto from CNBC Pro

    Early last year, Take-Two bought mobile gaming firm Zynga for $12.7 billion. In 2016, the maker of Candy Crush Saga, King, was purchased by Activision Blizzard for $5.9 billion. U.S. tech giant Microsoft, meanwhile, is banking on continued growth in mobile gaming with its proposed $69 billion takeover of Activision Blizzard.

    That growth has been challenged lately by a number of macroeconomic headwinds, however, including a rise in the cost of living and higher interest rates.

    In 2020, Microsoft and Sony launched their respective next-generation gaming consoles, giving mobile more competition.

    Last year also saw a return to in-person activities and a normalization of travel rules from the height of the Covid-19 pandemic in 2020, when much of the world was hunkering down at home.

    Non-gaming apps proved more resilient in 2022, according to Data.ai’s research, with the value of purchases in such apps rising 6% year-over-year to $58 billion. The growth was driven mainly by subscriptions and in-app purchases in streaming platforms, dating apps and short-form video services like TikTok.

    Downloads of non-gaming apps grew 13% from the previous year, to 165 billion.

    That did little to offset the slump in mobile game spending, however, with spending across app stores slipping 2% to $167 billion. The figures include installs on third-party Android marketplaces in China, where Google’s official Play app store is banned.

    The market faces further headwinds in 2023, with recently introduced privacy measures from Apple expected to place greater strain on app makers.

    Apple launched its App Tracking Transparency feature, which gives users a prompt asking whether they wish to be targeted by advertisers, in 2021.

    Data.ai expects global app spend on games specifically to drop a further 3% to $107 billion this year as a result of decreased disposable income and changes to privacy.

    Google plans to adopt privacy curbs similar to Apple’s that would limit tracking across Android apps.

    “With limitations on your targeting capabilities from an advertiser standpoint, it becomes harder to attract the big whales who spend the most in games,” Sydow explained.

    The changes spell trouble for Meta, owner of the Facebook and Instagram social media platforms. Meta Chief Financial Officer David Wehner warned previously that Apple’s ATT could decrease its 2022 sales by $10 billion. The company made most of its $117.9 billion revenue in 2021 from advertising sales.

    Meta faces tense competition from rival firm TikTok. The Chinese-owned short video app last year reached $6 billion in overall lifetime spending and is only the second non-game app to achieve that milestone after Tinder, according to Data.ai.

    Sydow said the effects of Apple’s privacy measures hadn’t yet appeared in the 2022 numbers — with total spend dropping across both iOS and Google Play — but was likely to have a much greater impact this year.

    Despite the overall spending slowdown in 2022, there was still “more demand for mobile service than ever before,” Sydow added. First-time app downloads grew 11% to 255 billion, Data.ai said, while hours spent in apps climbed 9% to a record 4.1 trillion.

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  • These low-volatility stocks beat the market last year — and analysts see further upside in 2023

    These low-volatility stocks beat the market last year — and analysts see further upside in 2023

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