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With the rise of livestreaming, gaming has evolved from a toy-like consumer product to a legitimate platform and medium in its own right for entertainment and competition.
Twitch’s viewer base alone has grown from 250,000 average concurrent viewers to over 3 million since its acquisition by Amazon in 2014. Competitors like Facebook Gaming and YouTube Live are following similar trajectories.
The boom in viewership has fueled an ecosystem of supporting products as today’s professional streamers push technology to its limit to increase the production value of their content and automate repetitive aspects of the video production cycle.
The largest streamers hire teams of video editors and social media managers, but growing and part-time streamers struggle to do this themselves or come up with the money to outsource it.
The online streaming game is a grind, with full-time creators putting in eight- if not 12-hour performances on a daily basis. In a bid to capture valuable viewer attention, 24-hour marathon streams are not uncommon either.
However, these hours in front of the camera and keyboard are only half of the streaming grind. Maintaining a constant presence on social media and YouTube fuels the growth of the stream channel and attracts more viewers to catch a stream live, where they may purchase monthly subscriptions, donate and watch ads.
Distilling the most impactful five to 10 minutes of content out of eight or more hours of raw video becomes a non-trivial time commitment. At the top of the food chain, the largest streamers can hire teams of video editors and social media managers to tackle this part of the job, but growing and part-time streamers struggle to find the time to do this themselves or come up with the money to outsource it. There aren’t enough minutes in the day to carefully review all the footage on top of other life and work priorities.
An emerging solution is to use automated tools to identify key moments in a longer broadcast. Several startups compete to dominate this emerging niche. Differences in their approaches to solving this problem are what differentiate competing solutions from each other. Many of these approaches follow a classic computer science hardware-versus-software dichotomy.
Athenascope was one of the first companies to execute on this concept at scale. Backed by $2.5 million of venture capital funding and an impressive team of Silicon Valley Big Tech alumni, Athenascope developed a computer vision system to identify highlight clips within longer recordings.
In principle, it’s not so different from how self-driving cars operate, but instead of using cameras to read nearby road signs and traffic lights, the tool captures the gamer’s screen and recognizes indicators in the game’s user interface that communicate important events happening in-game: kills and deaths, goals and saves, wins and losses.
These are the same visual cues that traditionally inform the game’s player what is happening in the game. In modern game UIs, this information is high-contrast, clear and unobscured, and typically located in predictable, fixed locations on the screen at all times. This predictability and clarity lends itself extremely well to computer vision techniques such as optical character recognition (OCR) — reading text from an image.
The stakes here are lower than self-driving cars, too, since a false positive from this system produces nothing more than a less-exciting-than-average video clip — not a car crash.
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Microsoft will soon launch a dedicated device for game streaming, the company announced today. It’s also working with a number of TV manufacturers to build the Xbox experience right into their internet-connected screens and Microsoft plans to bring cloud gaming to the PC Xbox app later this year, too, with a focus on play-before-you-buy scenarios.
It’s unclear what these new game streaming devices will look like. Microsoft didn’t provide any further details. But chances are we’re talking about either a Chromecast-like streaming stick or a small Apple TV-like box. So far, we also don’t know which TV manufacturers it will partner with.
It’s no secret that Microsoft is bullish about cloud gaming. With Xbox Game Pass Ultimate, it’s already making it possible for its subscribers to play more than 100 console games on Android, streamed from the Azure cloud, for example. In a few weeks, it’ll open cloud gaming in the browser on Edge, Chrome and Safari, to all Xbox Game Pass Ultimate subscribers (it’s currently in limited beta). And it is bringing Game Pass Ultimate to Australia, Brazil, Mexico and Japan later this year, too.
In many ways, Microsoft is unbundling gaming from the hardware — similar to what Google is trying with Stadia (an effort that, so far, has fallen flat for Google) and Amazon with Luna. The major advantage Microsoft has here is a large library of popular games, something that’s mostly missing on competing services, with the exception of Nvidia’s GeForce Now platform — though that one has a different business model since its focus is not on a subscription but on allowing you to play the games you buy in third-party stores like Steam or the Epic store.
What Microsoft clearly wants to do is expand the overall Xbox ecosystem, even if that means it sells fewer dedicated high-powered consoles. The company likens this to the music industry’s transition to cloud-powered services backed by all-you-can-eat subscription models.
“We believe that games, that interactive entertainment, aren’t really about hardware and software. It’s not about pixels. It’s about people. Games bring people together,” said Microsoft’s Xbox head Phil Spencer. “Games build bridges and forge bonds, generating mutual empathy among people all over the world. Joy and community — that’s why we’re here.”
It’s worth noting that Microsoft says it’s not doing away with dedicated hardware, though, and is already working on the next generation of its console hardware — but don’t expect a new Xbox console anytime soon.
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Arm today announced the launch of two new platforms, Arm Neoverse V1 and Neoverse N2, as well as a new mesh interconnect for them. As you can tell from the name, V1 is a completely new product and maybe the best example yet of Arm’s ambitions in the data center, high-performance computing and machine learning space. N2 is Arm’s next-generation general compute platform that is meant to span use cases from hyperscale clouds to SmartNICs and running edge workloads. It’s also the first design based on the company’s new Armv9 architecture.
Not too long ago, high-performance computing was dominated by a small number of players, but the Arm ecosystem has scored its fair share of wins here recently, with supercomputers in South Korea, India and France betting on it. The promise of V1 is that it will vastly outperform the older N1 platform, with a 2x gain in floating-point performance, for example, and a 4x gain in machine learning performance.
“The V1 is about how much performance can we bring — and that was the goal,” Chris Bergey, SVP and GM of Arm’s Infrastructure Line of Business, told me. He also noted that the V1 is Arm’s widest architecture yet. He noted that while V1 wasn’t specifically built for the HPC market, it was definitely a target market. And while the current Neoverse V1 platform isn’t based on the new Armv9 architecture yet, the next generation will be.
N2, on the other hand, is all about getting the most performance per watt, Bergey stressed. “This is really about staying in that same performance-per-watt-type envelope that we have within N1 but bringing more performance,” he said. In Arm’s testing, NGINX saw a 1.3x performance increase versus the previous generation, for example.
In many ways, today’s release is also a chance for Arm to highlight its recent customer wins. AWS Graviton2 is obviously doing quite well, but Oracle is also betting on Ampere’s Arm-based Altra CPUs for its cloud infrastructure.
“We believe Arm is going to be everywhere — from edge to the cloud. We are seeing N1-based processors deliver consistent performance, scalability and security that customers want from Cloud infrastructure,” said Bev Crair, senior VP, Oracle Cloud Infrastructure Compute. “Partnering with Ampere Computing and leading ISVs, Oracle is making Arm server-side development a first-class, easy and cost-effective solution.”
Meanwhile, Alibaba Cloud and Tencent are both investing in Arm-based hardware for their cloud services as well, while Marvell will use the Neoverse V2 architecture for its OCTEON networking solutions.
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Artificial intelligence technology holds a huge amount of promise for enterprises — as a tool to process and understand their data more efficiently; as a way to leapfrog into new kinds of services and products; and as a critical stepping stone into whatever the future might hold for their businesses. But the problem for many enterprises is that they are not tech businesses at their core, so bringing on and using AI will typically involve a lot of heavy lifting. Today, one of the startups building AI services is announcing a big round of funding to help bridge that gap.
SambaNova — a startup building AI hardware and integrated systems that run on it that only officially came out of three years in stealth last December — is announcing a huge round of funding today to take its business out into the world. The company has closed on $676 million in financing, a Series D that co-founder and CEO Rodrigo Liang has confirmed values the company at $5.1 billion.
The round is being led by SoftBank, which is making the investment via Vision Fund 2. Temasek and the government of Singapore Investment Corp. (GIC), both new investors, are also participating, along with previous backers BlackRock, Intel Capital, GV (formerly Google Ventures), Walden International and WRVI, among other unnamed investors. (Sidenote: BlackRock and Temasek separately kicked off an investment partnership yesterday, although it’s not clear if this falls into that remit.)
Co-founded by two Stanford professors, Kunle Olukotun and Chris Ré, and Liang, who had been an engineering executive at Oracle, SambaNova has been around since 2017 and has raised more than $1 billion to date — both to build out its AI-focused hardware, which it calls DataScale, and to build out the system that runs on it. (The “Samba” in the name is a reference to Liang’s Brazilian heritage, he said, but also the Latino music and dance that speaks of constant movement and shifting, not unlike the journey AI data regularly needs to take that makes it too complicated and too intensive to run on more traditional systems.)
SambaNova on one level competes for enterprise business against companies like Nvidia, Cerebras Systems and Graphcore — another startup in the space which earlier this year also raised a significant round. However, SambaNova has also taken a slightly different approach to the AI challenge.
In December, the startup launched Dataflow-as-a-Service as an on-demand, subscription-based way for enterprises to tap into SambaNova’s AI system, with the focus just on the applications that run on it, without needing to focus on maintaining those systems themselves. It’s the latter that SambaNova will be focusing on selling and delivering with this latest tranche of funding, Liang said.
SambaNova’s opportunity, Liang believes, lies in selling software-based AI systems to enterprises that are keen to adopt more AI into their business, but might lack the talent and other resources to do so if it requires running and maintaining large systems.
“The market right now has a lot of interest in AI. They are finding they have to transition to this way of competing, and it’s no longer acceptable not to be considering it,” said Liang in an interview.
The problem, he said, is that most AI companies “want to talk chips,” yet many would-be customers will lack the teams and appetite to essentially become technology companies to run those services. “Rather than you coming in and thinking about how to hire scientists and hire and then deploy an AI service, you can now subscribe, and bring in that technology overnight. We’re very proud that our technology is pushing the envelope on cases in the industry.”
To be clear, a company will still need data scientists, just not the same number, and specifically not the same number dedicating their time to maintaining systems, updating code and other more incremental work that comes managing an end-to-end process.
SambaNova has not disclosed many customers so far in the work that it has done — the two reference names it provided to me are both research labs, the Argonne National Laboratory and the Lawrence Livermore National Laboratory — but Liang noted some typical use cases.
One was in imaging, such as in the healthcare industry, where the company’s technology is being used to help train systems based on high-resolution imagery, along with other healthcare-related work. The coincidentally-named Corona supercomputer at the Livermore Lab (it was named after the 2014 lunar eclipse, not the dark cloud of a pandemic that we’re currently living through) is using SambaNova’s technology to help run calculations related to some COVID-19 therapeutic and antiviral compound research, Marshall Choy, the company’s VP of product, told me.
Another set of applications involves building systems around custom language models, for example in specific industries like finance, to process data quicker. And a third is in recommendation algorithms, something that appears in most digital services and frankly could always do to work a little better than it does today. I’m guessing that in the coming months it will release more information about where and who is using its technology.
Liang also would not comment on whether Google and Intel were specifically tapping SambaNova as a partner in their own AI services, but he didn’t rule out the prospect of partnering to go to market. Indeed, both have strong enterprise businesses that span well beyond technology companies, and so working with a third party that is helping to make even their own AI cores more accessible could be an interesting prospect, and SambaNova’s DataScale (and the Dataflow-as-a-Service system) both work using input from frameworks like PyTorch and TensorFlow, so there is a level of integration already there.
“We’re quite comfortable in collaborating with others in this space,” Liang said. “We think the market will be large and will start segmenting. The opportunity for us is in being able to take hold of some of the hardest problems in a much simpler way on their behalf. That is a very valuable proposition.”
The promise of creating a more accessible AI for businesses is one that has eluded quite a few companies to date, so the prospect of finally cracking that nut is one that appeals to investors.
“SambaNova has created a leading systems architecture that is flexible, efficient and scalable. This provides a holistic software and hardware solution for customers and alleviates the additional complexity driven by single technology component solutions,” said Deep Nishar, senior managing partner at SoftBank Investment Advisers, in a statement. “We are excited to partner with Rodrigo and the SambaNova team to support their mission of bringing advanced AI solutions to organizations globally.”
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Nvidia’s cloud gaming service GeForce Now has announced some changes when it comes to subscription plans. Starting today, paid memberships now cost $9.99 per month, or $99.99 per year — they are now called “Priority” memberships.
If you’re an existing “Founders” member, you’ll keep the same subscription price as long as you remain a subscriber. If you stop your subscription at any point, you won’t be able to pay $5 per month again.
Last year, when Nvidia originally introduced paid plans for GeForce Now, the company was pretty transparent with its user base. You could pay $4.99 per month to access the Founders edition, but the company was going to raise the subscription fee at some point. And it sounds like Nvidia has made up its mind and thinks the paid subscription is worth $9.99 per month.
If you’re not familiar with GeForce Now, it lets you start a game on a powerful gaming PC in a data center near you. You get a video stream on your computer, mobile phone, tablet or TV of the game running in a data center — GeForce Now uses a web app on iOS and iPadOS and is available on a limited number of Android TV devices. When you press a button on your controller, the action is relayed to the server so you can interact with the game. All of this happens in tens of milliseconds, making it one of the smoothest cloud gaming experiences available right now.
Compared to Google Stadia and Amazon Luna, Nvidia isn’t starting its own game store. GeForce Now customers launch games they already own. The platform supports Steam, Epic Games, GOG.com and Ubisoft’s launcher.
Game publishers have to opt in to GeForce Now, which means that you can’t launch all your games that you own in your Steam library. Right now, GeForce Now supports around 800 games that you can find on this page.
If you want to try GeForce Now, you can start playing for free. Nvidia offers a free membership that should be considered as a free trial. First, you have to wait in a queue until a free server is available — it can take five, 10 or 15 minutes.
After that, you’re limited to one-hour sessions. When you’ve played for an hour, you’re kicked out of the server. You can still start the game again, but you’ll have to go through the queue one more time.
If you become a paid member, games start nearly instantly and you can play up to six hours at a time. Similarly, you can start the game instantly after your six hours are up. Paid members also get RTX-enabled graphics.
When it comes to specifications, Nvidia has several configurations with different CPUs, graphic cards and RAM. If you play Fortnite, you might not get the best rig as you can get very high graphics on a medium-range PC. But if you launch Cyberpunk 2077, the service tries to prioritize better rigs.
Nvidia says it has attracted nearly 10 million users for its cloud gaming service. It’s unclear how many of them are paying for a subscription.
The company doubled the number of data centers in the last year. There are now more than 20 data centers operated by Nvidia or local partners. The company plans to expand capacity in existing data centers, and add new data centers in Phoenix, Montreal and Australia.
There will be some quality-of-life updates as well, such as the ability to link games with your account to make it easier to launch them and more aggressive preloading of games.
Image Credits: Nvidia
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Google and Nvidia both had some news about their respective cloud gaming service today. Let’s start with Nvidia. GeForce Now is now available on the iPhone and the iPad as a web app. The company says it’s a beta for now, but you can start using it by heading over to play.geforcenow.com on your iOS device.
GeForce Now is a cloud gaming service that works with your own game library. You can connect to your Steam, Epic and Ubisoft Connect accounts and play games you’ve already purchased on those third-party platforms — GOG support is coming soon. GeForce Now is also available on macOS, Android and Windows.
Game publishers have to opt in to appear on GeForce Now, which means that you won’t find your entire Steam library on the service. Still, the list is already quite long.
Right now, it costs $5 per month to access the Founders edition, which lets you play whenever you want and for as long as you want. It’s an introductory price, which means that Nvidia could raise prices in the future.
You can also try the service with a free account. You’re limited to one-hour sessions and less powerful hardware. There are also few slots. For instance, you have to wait 11 minutes to launch a game with a free account right now.
Once you add the web app to your iOS home screen, you can launch the service in full screen without the interface of Safari. You can connect a Bluetooth controller. Unfortunately, you can’t use a keyboard and a mouse.
The company says it is actively working with Epic Games on a touch-friendly version of Fortnite so that iOS players can play the game again. It could definitely boost usage on the service.
As for Google, the company issued an update 12 months after the launch of Stadia. Unlike GeForce Now, Stadia works more like a console. You have to buy games for the platform specifically. There are a hundred games on the platform including some games that you get with an optional Stadia Pro subscription.
The company says that iOS testing should start in the coming weeks. “This will be the first phase of our iOS progressive web application. As we test performance and add more features, your feedback will help us improve the Stadia experience for everyone. You can expect this feature to begin rolling out several weeks from now,” the company wrote.
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The British news service is reporting that Nvidia has developed a version of its GeForce cloud gaming service that runs on Safari.
The development means that Fortnite gamers can play the Epic Games title off of servers run by Nvidia. What’s not clear is whether the cloud gaming service will mean significant lag times for players that could effect their gameplay.
Apple customers have been unable to download new versions of Epic Games’ marquee title after the North Carolina-based company circumvented Apple’s rules around in-game payments.
Revenues and rules are at the center of the conflict between Epic and Apple. Epic had developed an in-game marketplace where transactions were not subject to the 30% charges that Apple places on transactions conducted through its platform.
The maneuver was a clear violation of Apple’s terms of service, but Epic is arguing that the rules themselves are unfair and an example of Apple’s monopolistic hold over distribution of applications on its platform.
That’s going to create a lot of hassles for the nearly 116 million iOS Fortnite players, especially for the 73 million players that only use Apple products to access the game, according to the BBC report.
Unlike Android, Apple does not allow games or other apps to be loaded on to its phones or tablets via app stores other than its own.
Nvidia already offers its GeForce gaming service for Mac, Windows, Android and Chromebook computers, but the new version will be available on Apple mobile devices as well, according to the BBC report.
If it moves ahead, Nvidia’s cloud gaming service would be the only one on the market to support iOS users. Neither Amazon’s Luna cloud-gaming platform nor Google’s Stadia service carry Fortnite.
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AWS today announced the launch of its newest GPU-equipped instances. Dubbed P4, these new instances are launching a decade after AWS launched its first set of Cluster GPU instances. This new generation is powered by Intel Cascade Lake processors and eight of Nvidia’s A100 Tensor Core GPUs. These instances, AWS promises, offer up to 2.5x the deep learning performance of the previous generation — and training a comparable model should be about 60% cheaper with these new instances.
For now, there is only one size available, the p4d.12xlarge instance, in AWS slang, and the eight A100 GPUs are connected over Nvidia’s NVLink communication interface and offer support for the company’s GPUDirect interface as well.
With 320 GB of high-bandwidth GPU memory and 400 Gbps networking, this is obviously a very powerful machine. Add to that the 96 CPU cores, 1.1 TB of system memory and 8 TB of SSD storage and it’s maybe no surprise that the on-demand price is $32.77 per hour (though that price goes down to less than $20/hour for one-year reserved instances and $11.57 for three-year reserved instances.
On the extreme end, you can combine 4,000 or more GPUs into an EC2 UltraCluster, as AWS calls these machines, for high-performance computing workloads at what is essentially a supercomputer-scale machine. Given the price, you’re not likely to spin up one of these clusters to train your model for your toy app anytime soon, but AWS has already been working with a number of enterprise customers to test these instances and clusters, including Toyota Research Institute, GE Healthcare and Aon.
“At [Toyota Research Institute], we’re working to build a future where everyone has the freedom to move,” said Mike Garrison, Technical Lead, Infrastructure Engineering at TRI. “The previous generation P3 instances helped us reduce our time to train machine learning models from days to hours and we are looking forward to utilizing P4d instances, as the additional GPU memory and more efficient float formats will allow our machine learning team to train with more complex models at an even faster speed.”
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As Nvidia continues to work through its deal to acquire Arm from SoftBank for $40 billion, the computing giant is making another big move to lay out its commitment to investing in U.K. technology. Today the company announced plans to develop Cambridge-1, a new £40 million AI supercomputer that will be used for research in the health industry in the country, the first supercomputer built by Nvidia specifically for external research access, it said.
Nvidia said it is already working with GSK, AstraZeneca, London hospitals Guy’s and St Thomas’ NHS Foundation Trust, King’s College London and Oxford Nanopore to use the Cambridge-1. The supercomputer is due to come online by the end of the year and will be the company’s second supercomputer in the country. The first is already in development at the company’s AI Center of Excellence in Cambridge, and the plan is to add more supercomputers over time.
The growing role of AI has underscored an interesting crossroads in medical research. On one hand, leading researchers all acknowledge the role it will be playing in their work. On the other, none of them (nor their institutions) have the resources to meet that demand on their own. That’s driving them all to get involved much more deeply with big tech companies like Google, Microsoft and, in this case, Nvidia, to carry out work.
Alongside the supercomputer news, Nvidia is making a second announcement in the area of healthcare in the U.K.: it has inked a partnership with GSK, which has established an AI hub in London, to build AI-based computational processes that will be used in drug vaccine and discovery — an especially timely piece of news, given that we are in a global health pandemic and all drug makers and researchers are on the hunt to understand more about, and build vaccines for, COVID-19.
The news is coinciding with Nvidia’s industry event, the GPU Technology Conference.
“Tackling the world’s most pressing challenges in healthcare requires massively powerful computing resources to harness the capabilities of AI,” said Jensen Huang, founder and CEO of Nvidia, in his keynote at the event. “The Cambridge-1 supercomputer will serve as a hub of innovation for the U.K., and further the groundbreaking work being done by the nation’s researchers in critical healthcare and drug discovery.”
The company plans to dedicate Cambridge-1 resources in four areas, it said: industry research, in particular joint research on projects that exceed the resources of any single institution; university granted compute time; health-focused AI startups; and education for future AI practitioners. It’s already building specific applications in areas, like the drug discovery work it’s doing with GSK, that will be run on the machine.
The Cambridge-1 will be built on Nvidia’s DGX SuperPOD system, which can process 400 petaflops of AI performance and 8 petaflops of Linpack performance. Nvidia said this will rank it as the 29th fastest supercomputer in the world.
“Number 29” doesn’t sound very groundbreaking, but there are other reasons why the announcement is significant.
For starters, it underscores how the supercomputing market — while still not a mass-market enterprise — is increasingly developing more focus around specific areas of research and industries. In this case, it underscores how health research has become more complex, and how applications of artificial intelligence have both spurred that complexity but, in the case of building stronger computing power, also provides a better route — some might say one of the only viable routes in the most complex of cases — to medical breakthroughs and discoveries.
It’s also notable that the effort is being forged in the U.K. Nvidia’s deal to buy Arm has seen some resistance in the market — with one group leading a campaign to stop the sale and take Arm independent — but this latest announcement underscores that the company is already involved pretty deeply in the U.K. market, bolstering Nvidia’s case to double down even further. (Yes, chip reference designs and building supercomputers are different enterprises, but the argument for Nvidia is one of commitment and presence.)
“AI and machine learning are like a new microscope that will help scientists to see things that they couldn’t see otherwise,” said Dr. Hal Barron, chief scientific officer and president, R&D, GSK, in a statement. “NVIDIA’s investment in computing, combined with the power of deep learning, will enable solutions to some of the life sciences industry’s greatest challenges and help us continue to deliver transformational medicines and vaccines to patients. Together with GSK’s new AI lab in London, I am delighted that these advanced technologies will now be available to help the U.K.’s outstanding scientists.”
“The use of big data, supercomputing and artificial intelligence have the potential to transform research and development; from target identification through clinical research and all the way to the launch of new medicines,” added James Weatherall, PhD, head of Data Science and AI, AstraZeneca, in his statement.
“Recent advances in AI have seen increasingly powerful models being used for complex tasks such as image recognition and natural language understanding,” said Sebastien Ourselin, head, School of Biomedical Engineering & Imaging Sciences at King’s College London. “These models have achieved previously unimaginable performance by using an unprecedented scale of computational power, amassing millions of GPU hours per model. Through this partnership, for the first time, such a scale of computational power will be available to healthcare research – it will be truly transformational for patient health and treatment pathways.”
Dr. Ian Abbs, chief executive & chief medical director of Guy’s and St Thomas’ NHS Foundation Trust Officer, said: “If AI is to be deployed at scale for patient care, then accuracy, robustness and safety are of paramount importance. We need to ensure AI researchers have access to the largest and most comprehensive datasets that the NHS has to offer, our clinical expertise, and the required computational infrastructure to make sense of the data. This approach is not only necessary, but also the only ethical way to deliver AI in healthcare – more advanced AI means better care for our patients.”
“Compact AI has enabled real-time sequencing in the palm of your hand, and AI supercomputers are enabling new scientific discoveries in large-scale genomic data sets,” added Gordon Sanghera, CEO, Oxford Nanopore Technologies. “These complementary innovations in data analysis support a wealth of impactful science in the U.K., and critically, support our goal of bringing genomic analysis to anyone, anywhere.”
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Most gamers may not view Apple as a games company to the same degree that they see Sony with PlayStation or Microsoft with Xbox, but the iPhone-maker continues to uniformly drive the industry with decisions made in the Apple App Store.
The company made the news a couple times late this week for App Store approvals. Once for denying a gaming app, and the other for approving one.
The denial was Microsoft’s xCloud gaming app, something the Xbox folks weren’t too psyched about. Microsoft xCloud is one of the Xbox’s most substantial software platform plays in quite some time, allowing gamers to live-stream titles from the cloud and play console-quality games across a number of devices. It’s a huge effort that’s been in preview for a bit, but is likely going to officially launch next month. The app had been in a Testflight preview for iOS, but as Microsoft looked to push it to primetime, Apple said not so fast.
The app that was approved was the Facebook Gaming app which Facebook has been trying to shove through the App Store for months to no avail. It was at last approved Friday after the company stripped one of its two central features, a library of playable mobile games. In a curt statement to The New York Times, Facebook COO Sheryl Sandberg said, “Unfortunately, we had to remove gameplay functionality entirely in order to get Apple’s approval on the stand-alone Facebook Gaming app.”
Microsoft’s Xbox team also took the unusually aggressive step of calling out Apple in a statement that reads, in-part, “Apple stands alone as the only general purpose platform to deny consumers from cloud gaming and game subscription services like Xbox Game Pass. And it consistently treats gaming apps differently, applying more lenient rules to non-gaming apps even when they include interactive content.”
Microsoft is still a $1.61 trillion company so don’t think I’m busting out the violin for them, but iOS is the world’s largest gaming platform, something CEO Tim Cook proudly proclaimed when the company launched its own game subscription platform, Apple Arcade, last year. Apple likes to play at its own pace, and all of these game-streaming platforms popping up at the same time seem poised to overwhelm them.
Image Credits: Microsoft
There are a few things about cloud gaming apps that seem at odds with some of the App Store’s rules, yet these rules are, of course, just guidelines written by Apple. For Apple’s part, they basically said (full statement later) that the App Store had curators for a reason and that approving apps like these means they can’t individually review the apps which compromises the App Store experience.
To say that’s “the reason” seems disingenuous because the company has long approved platforms to operate on the App Store without stamping approval on the individual pieces of content that can be accessed. With “Games” representing the App Store’s most popular category, Apple likely cares much more about keeping their own money straight.
Analysis from CNBC pinned Apple’s 2019 App Store total revenue at $50 billion.
When these cloud gaming platforms like xCloud scale with zero iOS support, millions of Apple customers, myself included, are actually going to be pissed that their iPhone can’t do something that their friend’s phone can. Playing console-class titles on the iPhone would be a substantial feature upgrade for consumers. There are about 90 million Xbox Live users out there, a substantial number of which are iPhone owners I would imagine. The games industry is steadily rallying around game subscription networks and cloud gaming as a move to encourage consumers to sample more titles and discover more indie hits.
I’ve seen enough of these sagas to realize that sometimes parties will kick off these fights purely as a tactic to get their way in negotiations and avoid workarounds, but it’s a tactic that really only works when consumers have a reason to care. Most of the bigger App Store developer spats have played in the background and come to light later, but at this point the Xbox team undoubtedly sees that Apple isn’t positioned all that well to wage an App Store war in the midst of increased antitrust attention over a cause that seems wholly focused on maintaining their edge in monetizing the games consumers play on Apple screens.
CEO Tim Cook spent an awful lot of time in his Congressional Zoom room answering question about perceived anticompetitiveness on the company’s application storefront.
The big point of tension I could see happening behind closed doors is that plenty of these titles offer in-game transactions and just because that in-app purchase framework is being live-streamed from a cloud computer doesn’t mean that a user isn’t still using experiencing that content on an Apple device. I’m not sure whether this is actually the point of contention, but it seems like it would be a major threat to Apple’s ecosystem-wide in-app purchase raking.
The App Store does not currently support cloud gaming on Nvidia’s GeForce platform or Google’s Stadia which are also both available on Android phones. Both of these platforms are more limited in scope than Microsoft’s offering which is expected to launch with wider support and pick up wider adoption.
While I can understand Apple’s desire to not have gaming titles ship that might not function properly on an iPhone because of system constraints, that argument doesn’t apply so well to the cloud gaming world where apps are translating button presses to the cloud and the cloud is sending them back the next engine-rendered frames of their game. Apple is being forced to get pretty particular about what media types of apps fall under the “reader” designation. The inherent interactivity of a cloud gaming platform seems to be the differentiation Apple is pushing here — as well as the interfaces that allows gamers to directly launch titles with an interface that’s far more specialized than some generic remote desktop app.
All of these platforms arrive after the company already launched Apple Arcade, a non-cloud gaming product made in the image of what Apple would like to think are the values it fosters in the gaming world: family friendly indie titles with no intrusive ads, no bothersome micro-transactions and Apple’s watchful review.
Apple’s driver’s seat position in the gaming world has been far from a wholly positive influence for the industry. Apple has acted as a gatekeeper, but the fact is plenty of the “innovations” pushed through as a result of App Store policies have been great for Apple but questionable for the development of a gamer-friendly games industry.
Apple facilitated the advent of free-to-play games by pushing in-app purchases which have been abused recklessly over the years as studios have been irresistibly pushed to structure their titles around principles of addiction. Mobile gaming has been one of the more insane areas of Wild West startup growth over the past decade and Apple’s mechanics for fueling quick transactions inside these titles has moved fast and broken things.

Take a look at the 200 top grossing games in the App Store (data via Sensor Tower) and you’ll see that all 199 of them rely solely on in-app micro-transaction to reach that status — Microsoft’s Minecraft, ranked 50th costs $6.99 to download, though it also offers in-app purchases.
In 2013, the company settled a class-action lawsuit that kicked off after parents sued Apple for making it too easy for kids to make in-app purchases. In 2014, Apple settled a case with the FTC over the same mechanism for $32 million. This year, a lawsuit filed against Apple questioned the legality of “loot box” in-app purchases which gave gamers randomized digital awards.
“Through the games it sells and offers for free to consumers through its AppStore, Apple engages in predatory practices enticing consumers, including children to engage in gambling and similar addictive conduct in violation of this and other laws designed to protect consumers and to prohibit such practices,” read that most recent lawsuit filing.
This is, of course, not how Apple sees its role in the gaming industry. In a statement to Business Insider responding to the company’s denial of Microsoft’s xCloud, Apple laid out its messaging.
The App Store was created to be a safe and trusted place for customers to discover and download apps, and a great business opportunity for all developers. Before they go on our store, all apps are reviewed against the same set of guidelines that are intended to protect customers and provide a fair and level playing field to developers.
Our customers enjoy great apps and games from millions of developers, and gaming services can absolutely launch on the App Store as long as they follow the same set of guidelines applicable to all developers, including submitting games individually for review, and appearing in charts and search. In addition to the App Store, developers can choose to reach all iPhone and iPad users over the web through Safari and other browsers on the App Store.
The impact has — quite obviously — not been uniformly negative, but Apple has played fast and loose with industry changes when they benefit the mothership. I won’t act like plenty of Sony and Microsoft’s actions over the years haven’t offered similar affronts to gamers, but Apple exercises the industry-wide sway it holds, operating the world’s largest gaming platform, too often and gamers should be cautious in trusting the App Store owner to make decisions that have their best interests at heart.
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