Blistering temperatures have baked a large portion of China, curtailing power to factories. It shows the new supply chain woes that await if we don’t adapt.
China’s heat wave is on another level in terms of ferocity and scope. Daytime highs have reached well into the triple digits across a large swath of the country, crushing all-time heat records.
Searing temperatures have turned China into a furnace this summer, with a profound impact on the world’s industrial powerhouse that could be a preview of how other climate crisis-fueled changes will affect factories around the world.
Rivers have dried up and with them, hydropower supplies, right at a time when people are relying more heavily on air conditioning to keep cool. In an effort to keep the lights on, provincial governments have asked factories to cut power.
The issues reflect the bumpy road ahead for climate tech, one where the world’s race to decarbonize will be affected by the results of the climate crisis already baked into the system.
China’s heat wave is on another level in terms of ferocity and scope. Daytime highs have reached well into the triple digits (upper 30s and low 40s for Celsius readers) across a large swath of the country, crushing all-time heat records. Among the more eye-popping numbers are the overnight lows, which include Chongqing, a city of 32 million, cooling to just 95 degrees Fahrenheit. Again, that was the low temperature.
The heat has enveloped manufacturing hubs across the country, leading to factory shutdowns. That includes in Sichuan, where Toyota and Contemporary Amperex Technology, the world’s largest battery maker, have suspended operations in response to provincial demands to save energy. The province produces major amounts of lithium and polysilicon needed for batteries and solar panels, respectively, and numerous other manufacturers have also shut down shop during the blistering heat. SAIC Motor (China's largest automaker) and Tesla have also impacted operations in Shanghai, which is located far from Sichuan, because suppliers in the province have been unable to ship needed parts.
Most research has focused on the impact that climate shocks are having on worker productivity, but there’s a growing body of evidence — both in academic literature and the real world — that supply chains are increasingly vulnerable, too. The heat wave in China is a prime example, one that Christoph Schiller, a finance professor at Arizona State University, said shows the “big knock-on effects” the climate crisis can have on how goods are made and moved around the world.
He and Nora Pankratz, an economist at the Board of Governors of the Federal Reserve System, authored a 2021 paper showing that supply chain customers factor climate shocks into choosing suppliers. But when those shocks — in the case of the research, floods and heat waves — are worse than expected, customers are up to 11% more likely to end their relationship with a supplier.
But it’s not just the supplier-customer relationship that could be disrupted, given that heat and high water aren’t the only shocks that could affect the supply chain. Drought in Europe is currently making waterways unnavigable, affecting the shipping of raw materials.
A 2020 McKinsey analysis found that the odds of a typhoon near South Korea, Japan or Taiwan plunging the semiconductor industry into chaos could quadruple by 2040. Meanwhile, the chances of heavy downpours affecting rare earth mining could increase threefold by 2030, resulting in a 20% drop in production. This is the stuff of climate nightmares given the role those minerals play in the transition to an all-electric future.
While many tech companies have focused on getting their suppliers to decarbonize, the risks that are already here — to say nothing of the future ones in the pipeline — show the need for companies to also work with suppliers to adapt to climate shocks.
“Adaptation can take a whole lot of different ways,” Schiller said. “[There are] physical adaptations, as in, we put a higher wall so the floods aren't going to get to a factory, or it could mean changing patterns of work: Do you work later, do you work earlier?”
Pressure could come from companies looking to keep their supply chains from breaking down as well as people buying their products advocating for more just working conditions or cheaper goods. Ultimately, companies need to be looking to what the future holds. Extreme heat will increase in nearly every corner of the globe, but other effects like drought and downpours are more variable.
“Rather than purely rely on what types of climate shocks have happened to us, over the last two, three, four, five years in this particular supply chain relationship, what if we look at climate models,” Schiller said. “What would be the optimal supply chain if that is the scenario that we were working with? That is a question that managers have to ask themselves.”
Brian ( @blkahn) is Protocol's climate editor. Previously, he was the managing editor and founding senior writer at Earther, Gizmodo's climate site, where he covered everything from the weather to Big Oil's influence on politics. He also reported for Climate Central and the Wall Street Journal. In the even more distant past, he led sleigh rides to visit a herd of 7,000 elk and boat tours on the deepest lake in the U.S.
The ride-hailing giant has flip-flopped in its approach to congestion pricing in New York. Now it’s launched a campaign asking riders to oppose the policy.
The campaign shows the company’s apparent about-face when it comes to New York’s plan for congestion pricing.
Lisa Martine Jenkins is a senior reporter at Protocol covering climate. Lisa previously wrote for Morning Consult, Chemical Watch and the Associated Press. Lisa is currently based in Brooklyn, and is originally from the Bay Area. Find her on Twitter ( @l_m_j_) or reach out via email (ljenkins@protocol.com).
A number of New York-area Uber users received a surprising message this week. It wasn’t an offer for free rides; instead, it was an email from the ride-hailing service imploring them to “tell the MTA that their proposed increase in fees and your lack of accessible subways or bus lines leaves you flat out of options for getting where you need to.”
It’s part of a campaign that’s been hitting users’ inboxes and app notifications for the past month and shows the company’s apparent about-face when it comes to New York’s plan for congestion pricing. The policy, which was approved by lawmakers in 2019 but has yet to be ironed out by the Metropolitan Transportation Authority, would charge drivers entering much of lower Manhattan during rush hour an extra fee in an attempt to both ease traffic and reduce carbon emissions.
Uber was originally among a coalition of companies and NGOs lobbying New York state lawmakers in support of congestion pricing. Now that the process of ironing out the details is underway, though, the company seems to have changed its tune.
Josh Gold, Uber’s senior director of public policy and communications, told Protocol that the company “strongly [believes] congestion pricing should go forward.” However, it takes issue with the proposed options for structuring the toll, which he said “bizarrely puts an additional burden on riders coming in from [outer boroughs] while giving a cheaper ride to those going from a TriBeCa condo to their Midtown office.”
The MTA is reviewing seven potential scenarios for structuring the congestion pricing scheme. The most onerous one for drivers would charge commuters $23 for a rush hour trip into the heart of Midtown, and $17 for an off-peak-hours trip. The scenario that would cost drivers the least would include a toll of $9 during peak hours and $7 for off-peak hours.
Taxi drivers have also protested congestion pricing, rallying in front of Gov. Kathy Hochul’s office on Aug. 24 for exemptions to the new law. But Uber is alone in using its access to riders, including information about where they live, to marshal them to the company’s cause. The email to riders who live in transit deserts brings users to a form email directed at the MTA.
“It’s critical we improve our public transit system — I understand that better than most - but the largest burden shouldn’t fall on those with the least access,” the email reads. “Please don’t leave me stranded.”
The company has also been targeting riders via messages both in the app and attached to post-ride invoices. Seth Friedman, a Brooklyn resident, told Protocol that he has started noticing messages about congestion pricing even when he wasn’t riding into Manhattan.
Messages asking New Yorkers to push back against potentially high tolls as a part of the city's congestion pricing policy have landed in the notifications and invoices of riders like Seth Friedman. These were received between July 29 and Aug. 30.Images: Seth Friedman
Since 2019, New York Uber riders received notes on certain invoices prompting them to “learn more about the government-mandated pricing rules, taxes, and fees that make trips in NYC more expensive,” but without reference to new congestion pricing scenarios.
However, beginning on Aug. 25, that message has evolved to be more explicit, telling users that the congestion pricing policies could result in “tolls as high as $23 per trip during peak hours,” with a link to “say no to new fees” that brings users to a different form email without the transit desert language that will be sent to the MTA. During a ride on Aug. 30, Friedman noticed that the invoice ads had been complemented by a pop-up in Uber’s ride interface as well.
For Friedman, who describes himself as “a strong supporter of congestion pricing,” the ads seem to have backfired.
“It makes me not want to use Uber anymore,” Friedman said. “I think it’s really gross that they’re doing this.”
The MTA’s environmental assessment found that implementing tolls would reduce the number of vehicles entering the central part of Manhattan by 15.4% to 19.9%, and improve air quality as a result. The fees collected would be used in part to improve public transit, further incentivizing New Yorkers to use lower-emissions ways of getting around.
“Anyone who has been in New York City in the past decade knows that for-hire vehicles are a part of the story of congestion in Manhattan’s Central Business District, which has harmful air quality impacts and slows down the economy,” said John McCarthy, chief of external relations for the transit agency.
The public comment period for the program’s environmental assessment, which lays out the potential tolling scenarios, ends on Sept. 9. While the rollout of congestion pricing does not yet have a firm timeline, the tolls could take effect as soon as late 2023.
Lisa Martine Jenkins is a senior reporter at Protocol covering climate. Lisa previously wrote for Morning Consult, Chemical Watch and the Associated Press. Lisa is currently based in Brooklyn, and is originally from the Bay Area. Find her on Twitter ( @l_m_j_) or reach out via email (ljenkins@protocol.com).
If you thought the rise of remote work, independent contractors and contingent workers rose sharply during the pandemic, just wait until the next few months when you see a higher uptick in the on-demand talent economy.
Rising workload and pace, the stress of commuting and a taste of the flexible work-from-anywhere lifestyle have all contributed to what many are calling the Great Resignation, which is only just the beginning of the headwinds organizations are facing, says Tim Sanders, vice president of client strategy at Upwork, a marketplace that connects businesses with independent professionals and agencies around the globe.
“It began with front-line workers, but it’s not going to end there,” Sanders notes, “Recent data suggests that the biggest industries for quits are now software and professional services and on top of that, I predict that we’ll see more leaders and managers continuing to quit their jobs.”
As the economy leans toward a recession, and layoffs across dozens of tech firms make headlines, Sanders predicts companies will increasingly turn to on-demand talent. “These highly skilled independent contractors and professionals offer the speed, flexibility and agility companies are seeking right now. Leaders are becoming more empowered to fully embrace a hybrid workforce and shift away from rigid models.”
Leaning into headwinds: Driving growth amid uncertainty
A recent report from Upwork, The Adaptive Enterprise, underscores the importance of flexible on-demand talent during uncertain times. Sanders notes: “A growing number of organizations, including Upwork and customers like Microsoft, Airbnb and Nasdaq understand that on-demand talent enables companies to reduce risk, drive cost savings, and at the same time, protect their people from burnout. Flexible workforce models also allow businesses to respond to and recover faster from crises than more traditional models.”
Some crises come in the form of economic slowdowns, while others can take the shape of geopolitical conflicts that disrupt life and work as we know it. Mitigating risk — such as a pandemic wave striking a certain region housing the majority of a company’s staff — is one reason businesses turn to on-demand talent, but it’s certainly not the only one.
CEOs surveyed by Deloitte in 2022 see talent shortages as the biggest threat to their growth plans. The survey goes on to report that CEOs believe that talent is the top disruptor to their supply chain and there is more to be gained within their workforce by providing greater flexibility (83% in agreement) as opposed to merely offering more financial-related incentives. What is top of mind for many business leaders is needing to fill talent and skills gaps, so they can deliver new products and enhanced services. In other words, companies are struggling to find the specific skill sets needed to advance their business objectives and innovation agendas.
The biggest benefit of leveraging on-demand talent is often tapping into the talent and skills that businesses can’t find elsewhere. Upwork’s recent report highlights that 53% of on-demand talent provide skills that are in short supply for many companies, including IT, marketing, computer programming and business consulting.
By harnessing a global talent pool from digital marketplaces like Upwork, businesses have wider access to skilled talent who can accelerate what those companies offer to customers at a fraction of the cost. “Skillsourcing” on-demand talent helps companies maintain a more compact population of full-time employees to concentrate on work that only they can do as well as maximize their strengths while bringing in independent professionals to handle the rest.
Behind the growth: Speed, flexibility and agility
Speed, flexibility and agility are three critical benefits offered by on-demand talent to businesses seeking competitive advantages in their sector. While on-demand talent solutions give companies speed-to-market advantages, Sanders sees that they also give organizations a strategic form of flexibility.
“An agile organization is able to make bold and quick moves without breaking everything,” Sanders says, “and look at a number of our Fortune 100 customers that have a workforce made up of almost half on-demand talent, and how they can pivot on a dime. It's a case of structure enabling strategy.”
As for speed and efficiency doing the actual work, Sanders says clients report that when hiring managers have been given access to on-demand talent, they engage the needed talent within days instead of months, and when they bring them onto projects, the work is completed up to 50% faster than through traditional avenues.
Sanders says, “Businesses have realized that remote work experiences are best led and judged by outcomes, not just time in the office, and more leaders are comfortable and confident opting for a hybrid workforce that can deliver based on those outcomes.”
Upwork’s Labor Market Trends and Insights page shows that organizations are indeed ramping up their hybrid workforces: 60% of businesses surveyed said they plan to use more on-demand talent in the next two years.
“The old way of acquiring talent isn’t efficient,” Sanders says. “Staffing firms aren’t the silver-bullet solution they once were, and more businesses need to rethink and redesign their workforce with on-demand talent as the economy and work rapidly evolve. The conversation is no longer about the future of work, but the future of winning.”
Don’t know what to do this weekend? We’ve got you covered.
Nick Statt is Protocol's video game reporter. Prior to joining Protocol, he was news editor at The Verge covering the gaming industry, mobile apps and antitrust out of San Francisco, in addition to managing coverage of Silicon Valley tech giants and startups. He now resides in Rochester, New York, home of the garbage plate and, completely coincidentally, the World Video Game Hall of Fame. He can be reached at nstatt@protocol.com.
Fantasy fans can feast this weekend on the two biggest prequels in prestige TV: The third episode of HBO’s “House of the Dragon” airs Sunday, while Amazon’s two-episode premiere of LOTR prequel “Rings of Power” landed for U.S. Prime subscribers Thursday evening. After that, consider diving back into Naughty Dog’s PS5 remake of The Last of Us.
While HBO is riding high on the success of “House of the Dragon,” Amazon is trying its hand at the arguably even trickier task of reviving the high fantasy world of J.R.R. Tolkien’s “The Lord of the Rings” in a new mass media format. The Warner Bros. film trilogy is one of the most beloved adaptations of all time, and the expectations for the “Rings of Power” TV series, which is set thousands of years before the films, are mixed, with many fans wondering if it might flop without strong enough threads tying it back to Frodo Baggins and crew. But early reviews are positive, and Amazon spent a staggering $715 million on the series’ licensing rights and first-season budget. Let’s hope it was money well spent.
Despite what the internet may tell you about the lasting legacy of HBO’s “Game of Thrones,” the worldbuilding of author George R.R. Martin remains unrivaled, and the engrossing political drama on “House of the Dragon” is yet more proof. The prequel series, adapted from Martin’s “Fire & Blood” and focused on the Targaryen war of succession, premiered to a record 10 million viewers in its first episode last month, while last week’s follow-up actually increased the show’s viewership to 10.2 million. A second season has already been ordered, and it’s clear why: The world of Westeros is rich in lore, and “House of the Dragon” is so far doing a great job of teasing it out in new and unique ways.
The success of the free-to-play business model has become a central narrative in the trajectory of the game industry and in particular the explosive growth of mobile gaming. But it’s not all meteoric rises and massive revenue gains. A new report at The Verge examines the unfortunate aftermath of free-to-play hits shutting down in the wake of Nintendo’s planned shuttering of Dragalia Lost. With single-player titles, you can always revisit them, but when free-to-play games get shut down, they’re gone for good — taking players’ hard-earned progress and paid-for cosmetics with them.
The video game industry’s tried-and-true practice of repackaging old products and marketing them with nostalgia is out in full force with Friday’s release of The Last of Us Part I. It’s a remake of a 9-year-old game, which already has its own remastered version, with a retail price of $70. The title, released as a kind of swan song to the PS3 back in 2013, is heralded as one of the best single-player narrative games of all time. But it’s also an open question of whether it justifies its own cost.
The new remake, which builds on the 2014 remaster of the game with a major visual overhaul for the PS5 and other small tweaks and changes, is certainly aimed at diehard fans. That makes it hard to recommend, especially without the multiplayer component of the original. That is unless you never played the original. If this would be your first time taking the reins of Joel and Ellie in their post-apocalyptic zombie adventure, it’s definitely worth the steep price tag. For everyone else, perhaps it’s best waiting until the game hits PlayStation Plus at some point in the future.
A version of this story also appeared in today’s Entertainment newsletter; subscribe here.
Nick Statt is Protocol's video game reporter. Prior to joining Protocol, he was news editor at The Verge covering the gaming industry, mobile apps and antitrust out of San Francisco, in addition to managing coverage of Silicon Valley tech giants and startups. He now resides in Rochester, New York, home of the garbage plate and, completely coincidentally, the World Video Game Hall of Fame. He can be reached at nstatt@protocol.com.
Two bills passed in California would protect data related to gender-affirming care for out-of-state minors and those who access abortion care in the state. And they could be the first of many.
States like California are passing laws that would make them data sanctuaries.
Kwasi (kway-see) is a fellow at Protocol with an interest in tech policy and climate. Previously, he covered global religion news at the Associated Press in New York. Before that, he was a freelance journalist based out of Accra, Ghana, covering social justice, health, and environment stories. His reporting has been published in The New York Times, Quartz, CNN, The Guardian, and Public Radio International. He can be reached at kasiedu@protocol.com.
As states across the country introduce bills that would restrict gender-affirming care for trans youths and limit access to abortion services, lawmakers in California and other Democratic states are moving to turn their regions into what some are referring to as “data sanctuaries,” which protect the private information of people traveling out of state for care.
This week, California’s legislature passed SB 107, a bill that would prohibit health care providers, law enforcement and courts in California from aiding in another state’s investigation related to a minor receiving gender-affirming care in California. That bill is now headed to Gov. Gavin Newsom’s desk. A separate bill introduced by assemblymember Mia Bonta, which was also passed by the legislature, would shield people who traveled to California for abortion services from having their medical records shared with states and third parties looking to enforce out-of-state abortion bans.
Through these bills, California lawmakers are hoping to do for trans and reproductive rights what other sanctuary city and state policies have done for immigrant rights. The legislation could help cut off at least some of the digital trails that civil liberties and privacy advocates fear could be used against trans youths and people seeking abortions.
“What is happening now is there are a series of red states — Texas, Alabama, others — that are trying to criminalize parents for allowing their trans children to receive gender-affirming care,” state Sen. Scott Wiener, who co-sponsored SB 107, told Protocol. “This bill is a response to those vile laws.”
Recent laws in states such as Arkansas have attempted to ban gender-affirming health care for minors, and in Texas, Gov. Greg Abbott has issued an order calling on the public to report parents who allow their children to receive gender-affirming care. The Supreme Court’s overturn of Roe v. Wade has also unleashed a flood of restrictive abortion laws across the country.
Residents in those states now have to look to nearby states where abortion and trans rights are protected to gain access to care. But without protections, the data they leave behind could be used to prosecute them when they return home.
“We know that parents are crossing borders with their kids. It is, I think, only a matter of time until the anti-trans investigators are looking into the movement of kids over state lines and turning to data that is in the pro-trans states,” said Adam Schwartz, a senior lawyer at Electronic Frontier Foundation, who recently wrote in support of more states becoming data sanctuaries for trans kids.
According to a March 2022 report by the Williams Institute at UCLA School of Law, “more than 58,000 transgender youth and young adults across 15 states are in jeopardy of losing access to gender-affirming care.”
SB 107 would make it a lot harder for other states to investigate instances of minors receiving gender-affirming care in California. It would prohibit compliance with out-of-state subpoenas that seek data to enforce state laws banning gender-affirming care of minors. It would also prohibit law enforcement from cooperating with the enforcement of out-of-state laws that prohibit this kind of care.
Since the bill was introduced, 19 other states have proposed similar so-called “trans refuge state” bills, according to Wiener’s office.
While federal laws such as HIPAA do protect the handling and disclosure of sensitive health information, not all local officials are covered under that regulation, and some aspects of a person’s information — such as the license plates of the car they drove to a clinic — are not protected and could be obtained with a subpoena or warrant.
The California bills are intended to have a similar effect as those enacted by Democrat-led cities and states to protect undocumented immigrants in the past. According to a 2020 study, those sanctuary policies have been effective at “reducing deportations of people with no criminal convictions by half — without affecting deportations of people with violent convictions.”
Of course, there are other ways that anti-trans states could go about getting the data they are seeking without implicating the California law enforcement agencies, courts or health care providers targeted in the bill. Data brokers sell sensitive data readily. Meanwhile, platforms such as Facebook could always share data voluntarily when asked, though Facebook’s stated policies generally suggest it would only do so in response to a law enforcement request or in emergency situations.
Still, supporters of the bill including Wiener concede this is something of a loophole, and are willing to see amendments. “If Apple or Facebook or anyone else thinks that we need to make any tweaks to it to make it more expansive, we are happy to have that conversation,” Wiener said.
Since the Supreme Court overturned Roe v. Wade, reproductive rights groups have also called on tech companies to do more to protect the data of people seeking abortions. Recently, authorities in Nebraska have used private Facebook messages to prosecute a mother and daughter in connection with an abortion. (Facebook said the law enforcement request for the data made no mention of abortion.)
For Schwartz, shielding information held by social media companies would be a crucial next step toward greater data protection. “There is a lot of hard work to be done to figure out how to be a data sanctuary,” Schwartz said. “There are a million cracks in the dike, and people are just beginning to figure out how to fill them.”
Kwasi (kway-see) is a fellow at Protocol with an interest in tech policy and climate. Previously, he covered global religion news at the Associated Press in New York. Before that, he was a freelance journalist based out of Accra, Ghana, covering social justice, health, and environment stories. His reporting has been published in The New York Times, Quartz, CNN, The Guardian, and Public Radio International. He can be reached at kasiedu@protocol.com.
The CMA says it is "concerned" that the acquisition could "substantially lessen competition" in gaming consoles, subscription services and cloud gaming.
The U.K.'s Competition and Markets Authority is pressing Microsoft on the Activision deal, all but ensuring a more in-depth regulatory review will be required.
Nick Statt is Protocol's video game reporter. Prior to joining Protocol, he was news editor at The Verge covering the gaming industry, mobile apps and antitrust out of San Francisco, in addition to managing coverage of Silicon Valley tech giants and startups. He now resides in Rochester, New York, home of the garbage plate and, completely coincidentally, the World Video Game Hall of Fame. He can be reached at nstatt@protocol.com.
Microsoft is now contending with increased pressure from U.K. regulators over its proposed acquisition of game publisher Activision Blizzard. On Thursday, the U.K.'s Competition and Markets Authority said it had "concerns" over the deal and would proceed with a second and extended period of regulatory review if Microsoft did not address the issues within five business days.
The tight time window all but ensures the so-called Phase 2 review will likely commence, which may involve deeper negotiations with the CMA over a period of many months that could prevent the deal from closing until well into 2023. Microsoft originally set a final deadline of June 2023 for the deal to pass, and the company is still working with both the U.S. Federal Trade Commission and the European Union's European Commission, the other two major regulatory bodies that could reasonably hold up or even doom the deal entirely.
"The Competition and Markets Authority (CMA) is concerned that Microsoft’s anticipated purchase of Activision Blizzard could substantially lessen competition in gaming consoles, multi-game subscription services, and cloud gaming services (game streaming)," the CMA wrote in a statement. The agency went on to say that it's concerned that if "Microsoft buys Activision Blizzard it could harm rivals, including recent and future entrants into gaming, by refusing them access to Activision Blizzard games or providing access on much worse terms."
Sorcha O’Carroll, the CMA's senior director of mergers, said in a statement, "We are concerned that Microsoft could use its control over popular games like Call of Duty and World of Warcraft post-merger to harm rivals, including recent and future rivals in multi-game subscription services and cloud gaming."
Microsoft has already released a blog post in response that outlines its position on the deal and tries to assuage concerns around Call of Duty and other thorny parts of the proposed acquisition. The post, penned by Microsoft Gaming CEO and Xbox chief Phil Spencer, echoes familiar statements company executives have made over the past nine months, including a commitment to keep Activision's Call of Duty franchise available to PlayStation players.
"We’ve heard that this deal might take franchises like Call of Duty away from the places where people currently play them. That’s why, as we’ve said before, we are committed to making the same version of Call of Duty available on PlayStation on the same day the game launches elsewhere," Spencer said. "We will continue to enable people to play with each other across platforms and across devices. We know players benefit from this approach because we’ve done it with Minecraft, which continues to be available on multiple platforms and has expanded to even more since Mojang joined Microsoft in 2014."
Spencer's post also goes to great lengths to outline exactly why Microsoft sees the Activision acquisition as a vital way to grow its consumer base beyond the console audience. "While we love consoles, we recognize that they are not the only way that people play games. Today, the largest and fastest growing segment of gaming is mobile platforms. To reach the billions of players where they are and no matter what device they play on, we need to embrace choice," Spencer wrote. "We are expanding choice in two ways: through the creation of Game Pass, which gives players a subscription option; and by bringing more games to mobile platforms, including through our cloud game streaming technology."
Spencer said the Activision deal includes not only big console and PC franchises like Diablo and Overwatch in addition to Call of Duty, but also mobile expertise in the form of Candy Crush maker King. Combined, the deal would allow Microsoft to grow its cloud gaming initiative to bring console games to smartphones and other screens while also developing more mobile-first titles to compete in the mobile gaming market. (Sony on Monday announced it had acquired its first mobile gaming studio to develop new PlayStation titles for smartphones.)
"This promises to open up mobile gaming, creating new distribution opportunities for game developers outside of mobile app stores while delivering compelling and immersive experiences for players by using the power of the cloud," Spencer said. "And we can extend the joy of playing to devices that people already own, including Smart TVs and laptops."
Nick Statt is Protocol's video game reporter. Prior to joining Protocol, he was news editor at The Verge covering the gaming industry, mobile apps and antitrust out of San Francisco, in addition to managing coverage of Silicon Valley tech giants and startups. He now resides in Rochester, New York, home of the garbage plate and, completely coincidentally, the World Video Game Hall of Fame. He can be reached at nstatt@protocol.com.
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