The Boy Genius Report: The Wii U is the Nintendo’s last console

I remember it still — people flipped out about the Nintendo (NTDOY) Wii. Yes, its name was mocked for a while, but there was genuine excitement around what Nintendo was doing with motion and the entire gameplay experience. While the original Nintendo Wii was almost an Apple (AAPL)-like product — Nintendo focused on the gameplay and not on specs; the company didn’t even have HD graphics when every other console did — the Nintendo Wii U clearly demonstrates how far Nintendo has fallen and how out of touch the company is.
[More from BGR: Samsung could face $15 billion fine for trying to ban iPhone, other Apple devices]
I bought a Nintendo Wii U for one reason and one reason only, and that’s to play and beat “Super Mario Bros. U.” I’ll probably end up returning the console after I’m done, because that’s how horrible the Wii U actually is.
[More from BGR: Five-year-old finds porn on refurbished Nintendo 3DS from GameStop]
First of all, the fact that Nintendo actually decided to ship this joke of a controller called the GamePad with a 6.2-inch touchscreen in the middle says it all. It only lasted for around two hours per charge over the week I’ve used it, and it’s big, clunky and made of glossy Nintendo plastic. The problem it, it has no charm. It feels thrown together to try to make a statement, one that says that Nintendo isn’t afraid of the iPads or Android tablets or iPhones or iPod touches, and that it too can take on touch just as it took on motion.
It fails miserably. And that’s just the controller.
The actual console is one that finally for the first time ever supports HDMI and HD graphics, yet Nintendo’s flagship game doesn’t look good in high-definition. The console’s UI is a mess, and let’s be honest, we are living in a time where we are so connected, where so much is shared across continents instantly, that real design transcends what country it was designed in.
When you see a beautiful iPhone app’s interface, there’s a good chance you couldn’t tell if it was designed by a company in San Francisco or Paris or Hong Kong. But Nintendo’s interface is blatantly Japanese, and it lacks any and all sophistication. It’s like all of Nintendo’s designers just gave up and are living in a time when Apple’s iOS devices and Google’s (GOOG) Android devices don’t exist, blissfully ignoring the threat that their company is facing from all angles.
The Wii U experience is so terrible that it took over an hour to update the software on the console recently, and apparently that wasn’t that bad. People have told me their updates took over 4 hours when performed closer to Christmas. Do you know what that 7-year-old is doing during those 4 hours you’re making him wait? Playing Temple Run or Angry Birds on his iPad mini. Way to go Nintendo.
I’ll go on record and say that I think this is the last video game console Nintendo will make for the home. I just don’t see the future here with hardware. Not by a mile.
Nintendo needs to realize that hardware is hardware and that Nintendo’s hardware isn’t special, it isn’t elegant and it isn’t thoughtful. It’s merely a delivery mechanism in a time where design has never been more important.
Nintendo is a great company, one that has invented so many great products, but sooner or later it will be forced to offer its titles on iOS devices and Android devices. It’s going to get to that point. There’s way too much revenue to be made — Nintendo isn’t Sega, and Sega is crushing it as a software-only company.
I just hope Nintendo follows suit sooner or later, because I have $9.99 ready to go for the Super Mario app on iOS.

Read More..

Oracle sees third-quarter profit of 64 to 68 cents per share

BOSTON (Reuters) - Oracle Corp, the world's No. 3 software maker, said it expects to report non-GAAP earnings per share of 64 cents to 68 cents in its fiscal third quarter.
Oracle forecast that third-quarter new software sales and cloud subscriptions sales will rise 3 percent to 13 percent from a year earlier.
The company said its sees third-quarter hardware products sales flat to down 10 percent from a year ago.
Chief Executive Larry Ellison said he expects hardware systems revenue to start growing from the fiscal fourth quarter.
Oracle President Mark Hurd said that Oracle is gaining share against SAP in Europe.

Read More..

Oracle beats outlook, shrugs off fiscal debate

BOSTON/SAN FRANCISCO (Reuters) - Technology giant Oracle Corp said software sales growth will stay strong into the new year despite fears that there could be big tax hikes and U.S. government spending cuts that could cause a slump in spending by customers.
Shares of the world's No. 3 software maker rose 1.3 percent after it reported fiscal second-quarter revenue and earnings that surpassed Wall Street forecasts.
Oracle President Safra Catz told investors that businesses were still looking to spend money already allocated to 2012 technology budgets.
"Folks want to close deals," she told analysts on a conference call following the earnings release on Tuesday. There has been "no negative impact on pricing. Pricing remains very good for us."
Oracle said software sales would grow 3 to 13 percent this quarter, which runs through February. It expects fiscal third-quarter hardware products sales to be flat to down 10 percent from a year ago.
The company's software and hardware forecasts were roughly in line with Wall Street expectations, according to FBR Markets analyst Daniel Ives.
Oracle reported that software sales and cloud software subscriptions rose 17 percent from a year earlier to $2.4 billion in its fiscal second quarter ended November 30.
It had forecast that new software sales would climb 5 to 15 percent from a year earlier, when it last reported earnings on September 20.
"I would call it an early Christmas present," Ives said. "It's a positive sign for the overall technology sector."
Investors pay close attention to new software sales because they generate high-margin, long-term maintenance contracts and are an important gauge of the company's future profits.
Oracle posted a second-quarter profit, excluding items, of 64 cents per share, beating the average analyst forecast of 61 cents according to Thomson Reuters I/B/E/S.
Jefferies & Co analyst Ross MacMillan said Oracle's results are encouraging for other makers of business software, many of which end their quarter on December 31.
OFF A CLIFF
Some investors have worried that corporations would postpone spending on technology projects because of uncertainty over the year-end deadline for Congress and U.S. President Barack Obama to reach a compromise to thwart an automatic rise in tax rates and government spending cuts.
Failing to reach a deal, economists say, could lead to another U.S. recession. Catz said Oracle's customers are still spending on software.
"What's going on in Washington - I don't know who it's necessarily influencing today. But I can tell you, our customers have been spending money with us even here in December."
On Tuesday, Oracle forecast earnings per share in the current fiscal third quarter of 64 to 68 cents, excluding items. That was about level with an average forecast for 66 cents.
"It tells you that there's still money being spent by enterprises on software. It's not like the world has ground to a halt," MacMillan said.
The picture was not so bright for Oracle's troubled hardware division, which it acquired with its $5.6 billion purchase of Sun Microsystems in January 2010. The division's revenue has fallen every quarter since it closed that deal.
Hardware systems product sales fell 23 percent from a year earlier to $734 million. Oracle had forecast that hardware sales would drop between 8 and 18 percent.
Chief Executive Larry Ellison told analysts he expected hardware systems revenue to start growing in the fiscal fourth quarter which begins March 1.

Read More..

BofA CEO: Fed wants bank to show consistent earnings

CHARLOTTE, North Carolina (Reuters) - Bank of America Corp needs to show the U.S. Federal Reserve it can produce consistent earnings as part of the annual process to gain permission to return more capital to shareholders, CEO Brian Moynihan said in an interview.
The second-largest U.S. bank is turning a profit in most of its main businesses, but it inherited costly legal problems when it acquired companies during the financial crisis, including subprime mortgage lender Countrywide Financial.
In the third quarter, Bank of America reported only a nominal profit after reaching a $2.4 billion settlement with investors to resolve claims it hid crucial information from shareholders when it bought investment bank Merrill Lynch & Co.
Moynihan declined to comment on whether the bank's capital plan, which is due to the Fed by January 7, will include any proposed share buybacks or increases in dividends. Moynihan suffered a major embarrassment in 2011 when the Fed rejected the bank's request to increase its quarterly dividend, which has been stuck at just one penny per share since the financial crisis.
The Fed has been evaluating capital plans as part of its supervision of bank holding companies and under provisions in the Dodd-Frank financial reform law. It is unclear whether the Fed would approve any request for an increased dividend or share buybacks next year. A Fed spokesperson declined to comment.
"The element that is sort of unique to us is the predictability of the earnings stream," Moynihan said in an interview in his Charlotte, North Carolina, office. "We are working to get through that."
Other banks have demonstrated their ability to earn money more consistently. JPMorgan Chase & Co's quarterly profit, for example, hasn't fallen below $3.7 billion in the past year, even as it has taken losses on disastrous credit derivative trades.
Investors and analysts are hopeful that Bank of America's legal problems will die down soon. Its stock price has more than doubled this year, partly on expectations that the bank will increase its dividend and buy back more stock after the Federal Reserve reviews its capital plans this spring.
Analysts at Atlantic Equities on Tuesday said they expect Bank of America to buy back $4 billion of its own shares in 2013 and $10 billion in 2014, which would be its first buybacks since 2007.
The bank has "made a lot of progress" on legal issues, Moynihan said, but he acknowledged that the company is still working through lawsuits and investor demands to buy back soured mortgages the bank sold off during the housing boom.
In recent weeks, the bank's dispute with insurer MBIA Inc over mortgage-related claims has heated up, with Bank of America filing a new lawsuit last week against the insurer. The legal tussle with MBIA has dragged on, even as Bank of America has worked out settlements with other insurers of mortgage-backed securities issued by Countrywide.
Moynihan said the bank will settle the MBIA dispute if it can reach an agreement that is reasonable for shareholders but otherwise it is ready to litigate the matter.
The bank's shares closed Tuesday at $11.35, up 3.2 percent for the day. The shares are the best performer in the Dow Jones industrial average this year, after falling the most in 2011.
HEALING
In an effort to improve earnings, Moynihan is aiming to cut costs by $8 billion annually by mid-2015 through a program called Project New BAC, including 30,000 layoffs that have been under way since September 2011. Bank of America had noninterest expenses of $76.5 billion in 2011.
In addition, Bank of America expects to eventually reduce costs in its unit that serves delinquent mortgage customers to about $500 million per quarter from about $3.4 billion in the third quarter. If delinquent mortgages continue to fall, that saving should be achieved in 2015, if not sooner, Moynihan said.

Read More..

Top UBS shareholder pins rebound hopes on private wealth

UBS's wealth management business will help it bounce back from a $1.5 billion rap for rigging interest rates, one of its largest investors said, although fears of costly civil lawsuits could cast a pall over its shares for some time.
Paras Anand, European equities head at Fidelity Worldwide Investment, said legal action sparked by the Libor scandal posed an unpredictable threat to the bank's near-term earnings, even if its core private banking franchise escaped permanent harm.
"The big unknown factor is the civil litigation that could follow on as a result of this...That is one thing at the back of our minds that we have to be cognizant of," Anand said in an interview with Reuters.
"The issue for shareholders is the challenge of pricing that risk in. The potential costs are too unquantifiable and indeed, it's unclear as to whether they will actually manifest or not."
Switzerland's largest bank was hit with the fine on Wednesday after admitting to fraud, paying bribes to brokers and "pervasive" manipulation of global benchmark interest rates by dozens of its staff.
UBS shares were trading 1.3 percent higher at 9:01 a.m. ET, as investors looked forward to the end of a scandal-filled chapter in the bank's history and a renewed focus on managing cash on behalf of rich clients, rather than so-called 'casino' investment banking.
"There's clearly been a backlash against big faceless financial entities but a private bank has big personal relationships with its customers ... These kinds of institutions are surprisingly resilient," Anand said.
"We have seen some awful scandals in businesses much weaker than UBS and they manage to survive," he added.
Fidelity owns around 45 million shares in UBS, equivalent to around 1.2 percent of the bank, and is its fifth largest institutional owner excluding sovereign wealth funds, according to Thomson Reuters data.

Read More..

Drugs group Lundbeck's shares hit by profit warning

COPENHAGEN (Reuters) - Shares in Danish drugs firm Lundbeck fell to their lowest level in over 12 years on Wednesday after it cut its profits forecast for the next two years as European sales slow and spending on new products rise to combat generic competition.
The company has already warned that earnings would stall until 2015 due to cheap generic competition for its existing drugs, meaning new products will be vital for future earnings.
But Chief Executive Ulf Wiinberg said on Wednesday that the negative impact on revenue from healthcare reforms in Europe had also been bigger than expected in the last two years and that slowing European sales and generic competition were hurting.
As a result the company said operating profits would fall further than previously forecast in 2014 as it increases investments in its late-stage drugs development pipeline and product launches.
Lundbeck is working to find new drugs to replace lost revenue from products coming off patent protection such as its antidepressant Cipralex, which is sold as Lexapro in the United States and Japan, and Alzheimer's drug Ebixa.
Wiinberg said 2014 would be the company's peak investment year for the new products pipeline, offering it a solid foundation for growth starting in 2015.
"You only get one chance to launch a product and we have to do it well," Wiinberg said at a briefing for investors.
He was commenting after the company warned in a statement that it now expects revenue in 2014 of about 14 billion Danish crowns ($2.5 billion) and an operating profit of between just 0.5 billion and 1 billion crowns.
Analysts have on average been forecasting a profit of over 2.5 billion crowns for 2014 on turnover of over 14.7 billion crowns, according to Thomson Reuters I/B/E/S Estimates.
Two years ago Lundbeck predicted its annual revenues over the period 2012-2014 would exceed 14 billion crowns a year while earnings before interest and tax (EBIT) would exceed 2 billion crowns a year.
Next years' revenue is now forecast to be in the range of 14.1 billion and 14.7 billion crowns to produce an operating profit of 1.6 billion to 2.1 billion crowns, with no change to the company's forecast for 2012.
Analysts' forecasts for this year are for operating profit to drop 41 percent to 1.99 billion crowns on revenue down 8 percent at 14.7 billion crowns, while for 2013 they predict a profit of 2.26 billion crowns on revenue of 14.5 billion crowns.
Lundbeck's shares were trading down 17 percent at 79.90 crowns at 12.44 p.m. British time, dropping below 80 crowns for the first time since April 2000.
"In the short term, earnings are under pressure," Sydbank analyst Soren Hansen said.
Lundbeck said that it expects a dividend payout ratio of about 35 percent of net profits in the 2012-14 period. Last year it paid 3.49 crowns on basic earnings per share of 11.64 crowns, a payout ratio of 30 percent.
Analysts have been predicting a 27-30 percent cut this year to 2.53-2.28 crowns, according to Thomson Reuters StarMine data.
But a number of analysts doubt that revenue from new products will be enough to secure revenue growth in 2015, compensating for lost revenue from Cipralex, Lexapro and Ebixa which together accounted for about 70 percent of group revenue in 2011.
Lundbeck is working on new products such as antidepressant Brintellix in Europe and the United States for launch at the end of next year or start of 2014, as well as alcohol dependency treatment Selincro in Europe in mid 2013.
"It is difficult to see revenue from the smaller products compensating for the large products," said Hansen.

Read More..

Russia says it won't host Assad but others welcome

 Russia's foreign minister says Moscow would welcome any country's offer of a safe haven to Syrian President Bashar Assad, but underlined that Moscow itself has no intention of giving him shelter if he steps down.
Russia has repeatedly used its veto right along with China at the U.N. Security Council to protect its old ally from international sanctions, but it has increasingly sought to distance itself from Assad.
Foreign Minister Sergei Lavrov told reporters late Friday that countries in the region he wouldn't name publicly had asked Russia to convey their offer of a safe passage to Assad. He said that Russia responded by telling them to go directly to Assad: "We replied: 'What do we have to do with it? If you have such plans, you go straight to him.'"
Asked if Moscow could offer a refuge to Assad, Lavrov responded that "Russia has publicly said that it doesn't invite President Assad."
"If there is anyone willing to provide him guarantees, they are welcome!" Lavrov told reporters on board a plane returning from Brussels where he attended a Russia-EU summit. "We would be the first to cross ourselves and say: "Thank God, the carnage is over! If it indeed ends the carnage, which is far from certain."
Lavrov also said the Syrian government has pulled its chemical weapons together to one or two locations from several arsenals across the country to keep them safe amid the rebel onslaught.
"According to the information we have, as well as the data of the U.S. and European special services, the government is doing everything to secure it," he said. "The Syrian government has concentrated the stockpiles in one or two centers, unlike the past when they were scattered across the country."
U.S. intelligence says the regime may be readying chemical weapons and could be desperate enough to use them. Both Israel and the U.S. have also expressed concerns they could fall into militant hands if the regime crumbles.
Lavrov gave no indication that Moscow could change its opposition to sanctions against Assad. He assailed the West for failing to persuade the opposition to sit down for peace talks with the government, saying that "the Syrian president's head is more important for them than saving human lives."
Lavrov added that U.N. peace envoy for Syria, Lakhdar Brahimi, would visit Moscow for talks before the year's end.
He said that Moscow has also invited the revamped Syrian opposition leadership to visit.
"We are ready to honestly explain that the emphasis on a military solution and the dismantling of the state institutions is disastrous for the country," he said. "Listen, there will be no winner in this war.

Read More..

Italy's Monti turns down Berlusconi offer to run

Italian Premier Mario Monti is spurning Silvio Berlusconi's offer to run on a center-right ticket backed by the media mogul in February elections.
Monti told a news conference in Rome on Sunday that his predecessor's flipping back and forth between condemning the government's economic policies and then praising the premier convinced him that "I couldn't accept his offer."
Monti didn't immediately say if he might run on his own ticket 13 months after his non-elected government was appointed to save Italy from the eurozone debt crisis.

Read More..

Monti says he won't run for Italian premier

After keeping Italians, and the rest of Europe, in suspense for weeks, caretaker Premier Mario Monti on Sunday ruled out running in February elections but said he would consider leading the next government if political forces sharing his reform-focused economic agenda requested it.
The decision by Monti positions him to take the helm again without having to get into the nitty-gritty of campaigning — thus preserving his image as someone above the political fray who can make tough decisions imposing austerity measures. His previous such measures have boosted confidence in Italy's finances, and fellow European leaders have made it no secret that they want his policies to stay in place.
Silvio Berlusconi, the scandal-tainted ex-premier considering another run, commented scathingly on Monti's openness to another term.
"I had a nightmare — still a government with Monti," the media mogul said in an interview on state TV. He has said in the past that he would run again if Monti did not, but made no commitment Sunday about his own political future.
Monti, who after his resignation Friday is continuing in a caretaker role in charge of a non-elected government tasked with rescuing Italy from economy, ruled out heading any ticket — even a center-right grouping that Berlusconi said he would be willing to back. But the 69-year-old economist made it clear he was willing to take another turn in power.
"If one or more political forces is credibly backing (my) agenda or even has a better one, I'd evaluate the offer," Monti said during a news conference.
"To those forces who demonstrate convincing and credible adherence to the Monti agenda, I am ready to give my appreciation, encouragement, and if requested, leadership, and I am ready to assume, one day, if the circumstances require it, the responsibility that would be entrusted to me by Parliament."
Monti ruled out heading any ticket himself, saying "I have no sympathy for 'personal' parties."
Italy is struggling to shore up its finances and emerge from recession, a challenge made harder by its volatile politics, which saw dozens of governments over the years that let tax evasion spread, avoided unpopular reforms like raising the retirement age, and allowed public spending to balloon.
Monti was appointed in November 2011 to head a non-elected government with the goal of saving Italy from a Greece-style debt debacle after financial markets lost faith in his populist predecessor, Berlusconi.
Berlusconi triggered Monti's resignation last week, a few months ahead of the term's end, when he yanked his Freedom Party's support in Parliament for the government. Parliament was then sent packing last week by Italy's president, and elections scheduled for Feb. 24-25.
Monti's announcement Sunday pleased some parties but irked others.
"Yet again, Monti shows himself to be arrogant and (Pontius) Pilate-like," said Antonio Borghesi, a leader of the small center-left party that refused to back him during Monti's 13 months at the head of a non-elected government. "He won't directly commit himself, but he doesn't rule out that his name be used by others who share his agenda and he gives his willingness, if asked, to again leader the country."
The tiny centrist Italy Future party, meanwhile, hailed Monti as a "great political leader and international statesman," and said in a statement: "We reiterate our willingness to back with pride the agenda of Premier Monti."
Monti said he was spurning Berlusconi's offer not to run himself but instead support a center-right ticket headed by Monti. The premier expressed bewilderment that Berlusconi alternated sharp condemnation of the government's economic policies, with the seemingly contradictory offer to back another Monti-led government.
"Yesterday, we read that he assessed the work of the (Monti) government to be a complete disaster. A few days earlier I read flattering things," Monti said of his predecessor. The logic of Berlusconi's positions "escapes me" Monti said, drawing chuckles.
Berlusconi has said he would try for a fourth term as premier if Monti doesn't run, even though he continues to face several legal and sex-related scandals.
Monti praised Parliament for backing his government's recipe of spending cuts, new taxes and pension reform, which he said saved Italy from the debt crisis.
"Italians as citizens can hold their heads up high in Europe," Monti said, noting Italy had avoided the bailouts that Greece, Portugal, Ireland and Cyprus have had to take.
"We have always been convinced that Italy had, in itself, the resources" to succeed, Monti said. "And that's what happened."
Italy's President Giorgio Napolitano dissolved Parliament after Monti resigned Friday following approval of the country's national budget law. Monti noted that as a senator-for-life, he remains in Parliament and thus doesn't need to run for a seat in the legislature.
Voter opinion polls indicate a centrist ticket backing Monti would take about 15 percent of the vote, meaning any government headed by him would need support from either of Italy's two largest political groupings: the center-right, led by Berlusconi, or the center-left, led by Pier Luigi Bersani.
After Monti's announcement Sunday, Bersani vowed to "preserve" the premier's anti-crisis efforts. But Bersani, whose forces lead in opinion polls, expressed equal determination to avoid what Monti calls the "strange majority" of center-left, centrists, and center-right in Parliament.
That grouping until earlier this month largely set aside differences to back reforms such as raising the retirement age.
Bersani's forces turned out to be Monti's staunchest proponent this past year. By declining to directly campaign for February's balloting, Monti avoids a direct clash with him. On Sunday, Monti would only would say that Bersani is a highly "legitimate candidate for premier of a coalition."
In an interview on state TV later Sunday, Monti declined to say if he thought his agenda would get more backing from Bersani's or from Berlusconi's forces.
Some had speculated that Monti had his sights set on the Italian presidency, since Napolitano's term ends this spring. But Monti ruled that out at the news conference.

Read More..

British paper to sue Armstrong

 The Sunday Times is suing disgraced cyclist Lance Armstrong for around one million pounds over his libel action against the British newspaper in 2004.
Armstrong, who was stripped of his seven Tour de France titles from 1999-2005 in October, received 300,000 pounds from the Sunday Times as payment towards his legal fees after the paper raised questions about the American's success following his recovery from testicular cancer.
"It is clear that the proceedings were baseless and fraudulent. Your representations that you had never taken performance enhancing drugs were deliberately false," read the letter to Armstrong's lawyers in the Sunday Times.
The paper is demanding the return of the 300,000 pounds payment plus interest, as well as costs accrued in defending the case, which was settled in 2006.
A report by the United States Anti-Doping Agency (USADA) in October said the now-retired Armstrong had been involved in the "most sophisticated, professionalised and successful doping program the sport has ever seen."
Armstrong has always denied using performance-enhancing drugs but chose not to contest the USADA charges.

Read More..