June 28 2023 - Gaming, Social Shopping & Layoffs

👋Happy Wednesday all. Well, layoffs are back in the news, Among Us is making the trip down entertainment lane and social shopping + e-commerce is on everyone's mind. All that and more below –

Robinhood is laying off approximately 7% of its full-time staff, amounting to around 150 employees. This is the company's third round of layoffs in just over a year, prompted by a decrease in customer trading activity. Last year, Robinhood had already cut over 1,000 jobs in two separate rounds of layoffs. The recent restructuring primarily affected roles in customer experience, platform shared services, customer trust and safety, and safety and productivity. After the previous layoffs, the company observed an increase in voluntary departures and a decline in employee job satisfaction. These job cuts come shortly after Robinhood announced its acquisition of credit-card startup X1 for $95 million, indicating the company's effort to expand its product offerings beyond trading. While Robinhood experienced significant growth during the pandemic, with more than 21 million monthly active users in the second quarter of 2021, its user base has since declined to fewer than 11 million monthly active users as of May.

Lordstown Motors, the electric pickup truck company that acquired a General Motors plant in Ohio, has filed for bankruptcy protection. Despite initially receiving praise for preserving manufacturing jobs, the company faced numerous challenges, including development setbacks, management changes, and a failure to produce and sell a significant number of trucks. The bankruptcy filing was triggered by a dispute with major investor Foxconn, a Taiwan-based contract manufacturer, claiming Lordstown breached their investment agreement due to the company's stock falling below $1 per share. Lordstown, in turn, filed a lawsuit alleging that Foxconn failed to fulfill its commitment to invest additional funds. The company aimed to produce an innovative electric truck but struggled to translate its concept into mass production. Even at its peak, Lordstown employed a fraction of the workers compared to when the plant produced vehicles for GM.

Google has reportedly discontinued its Project Iris, an AR glasses project, according to sources familiar with the matter. Project Iris was intended to compete against AR headsets from Meta and Apple. Instead, Google is said to be shifting its focus to software and developing a "micro XR" platform that could be licensed to other headset manufacturers. However, there are indications that a ski goggle-like headset mentioned previously may still be in development, possibly as a collaboration with Samsung. The Project Iris initiative faced challenges, including layoffs and strategic changes, and the head of Google's VR/AR division, Clay Bavor, left the company four months ago.

• Taika Waititi, the actor and filmmaker, has become the Chief Creative Officer of a San Francisco-based beverage startup named Taika. The company produces premium coffee, tea, and yerba mate drinks fortified with adaptogens. Waititi stars in a quirky short film promoting the brand, playing himself and an "everyday hater." The ad highlights the functional ingredients of Taika's zero-sugar beverages and emphasizes their role as "delicious creative fuel in a can." In addition to being the spokesperson, Waititi will be involved in marketing strategy, product development, and package design. The launch of the ad coincides with a new distribution deal, expanding Taika's presence in U.S. retailers.

• The International Brotherhood of Teamsters has approved a $2 million fund to aid union members affected by the ongoing WGA strike. The fund aims to support families impacted by the strike and will be available to Teamster members working in the film and TV industry. This comes after the IATSE also established a $2 million fund for their members affected by the strike, and the prominent members donated $1.7 million to support non-WGA industry workers.
• Google plans to merge its mapping service Waze with the team overseeing Google Maps to streamline operations and cut costs, but no layoffs are expected as part of the reorganization. Over 500 employees from Waze will join Google's Geo organization, responsible for Maps, Earth, and Street View. Waze's CEO will exit after a transition period. The restructuring aims to reduce redundant mapmaking efforts between Waze and Maps.
• New evidence suggests that a mysterious vehicle testing facility in Arizona is connected to Apple's autonomous vehicle project, known as the Apple Car. Previous rumors speculated that the facility was acquired by a shell corporation named Route 14 Investment Partners, but recent findings, including an identical vehicle and sensor housing at the site, indicate Apple's involvement. Photos of a Lexus RX with a sensor stack driving at the Arizona facility align with Apple's test vehicles seen in California, according to California Autonomous Mileage Reports. Additional connections, such as shared contact information, suggest Apple's ownership of the facility as it continues to develop its autonomous vehicle technology. Quoting "We then crosschecked each VIN against those listed within California's 2022 Autonomous Mileage Reports. The result? All five VINs correlated with reports submitted by Apple."

• TikTok is discontinuing its BeReal clone, TikTok Now, as the viral sensation of BeReal fades away. Users have received notifications stating that TikTok Now is being discontinued. TikTok Now was launched nine months ago with the goal of fostering authentic connections, but its format closely resembled BeReal, which experienced a significant drop in daily active users.
• Nintendo's CEO, Shuntaro Furukawa, stated during the company's shareholders meeting that Nintendo Accounts will play a crucial role in facilitating a smooth transition from the Nintendo Switch to the next-generation console. Furukawa emphasized the challenge of transitioning customers from one console to another in the past and mentioned that the more than 290 million cross-platform Nintendo Accounts can be used with console games and mobile apps.
• Bloomberg plans to publish more audio content on YouTube in an effort to reach an audience that engages with short-form video platforms like TikTok, Instagram Reels, and YouTube Shorts. The move comes as part of a larger trend in which publishers and independent creators are recording their podcasts as videos to expand their reach and advertising opportunities. Bloomberg's Global Head of Audio, Anthony Mancini, outlined the plan in an internal memo, mentioning increased live video streams of radio and podcasts on YouTube and increased integration between podcast and radio teams.
• Among Us, the popular social deduction game, is being adapted into an animated series by CBS Studios. The series will be based on the premise of the game, where crew members are replaced by an alien shapeshifter causing chaos and trying to kill everyone. The animation for the show will be done by Titmouse, known for their work on shows like Big Mouth and Star Trek: Lower Decks. The network or streaming service on which the show will appear is yet to be decided. Owen Dennis, creator of Infinity Train, will serve as the show's creator and executive producer.

• Etsy has selected Orchard as its creative advertising partner for its upcoming holiday campaign. This partnership marks the first collaboration between the two Brooklyn-based companies. Orchard was chosen for its ability to showcase Etsy's brand in unique and compelling ways that will attract shoppers during the busy holiday season. Previously, Etsy had been working with 72andSunny since 2020 for its holiday campaigns. Orchard's standout work, includes a Thanksgiving ad for Ocean Spray, showcasing it's quirky and memorable point of view.
• Unity has announced two new AI game development platforms, Unity Sentis and Unity Muse, aimed at making its game engine more accessible for digital creators and brand partners. While Unity has used AI in its advertising platform and emphasized its use during recent earnings calls, it has been lagging behind competitors in inviting brands to engage with its virtual worlds. The new AI platforms, Unity Sentis and Unity Muse, offer helpful tools for creators to collaborate with marketers and agencies to build custom in-game items or spaces. Unity's CEO, John Riccitiello, believes these AI tools will make it easier for brands and agencies to advertise inside games and participate in the gaming ecosystem. The company's focus on AI extends to its ad network and publisher's platform, aiming to enhance media placement and provide better ROI measurements for in-game advertising.
• Roku has signed its first-ever sports deal, becoming the streaming home of Formula E, while CBS Sports has expanded its partnership with the motorsports tournament. Starting in January 2024, five races will be broadcast live on CBS Television Network and simulcast on Paramount+, with both channels already integrated on Roku's platform. Additionally, 11 races in the ABB FIA Formula E World Championship will be available on The Roku Channel, along with Formula E's docu-follow series and other content. The partnership aims to increase Formula E's audience reach and provide unique viewing experiences through Roku's platform. CBS Sports will also air more live races and highlights.

• TikTok has introduced a new feature called the "TikTok Creative Challenge," which allows brands to request video submissions from creators to be used as in-feed ads on the platform. Qualified creators with at least 50,000 followers can submit videos to brands that have published challenges on the Creative Challenge landing page. Unlike the "Branded Mission" tool, the submitted videos only appear as ads and not on the brand's or creator's account. This feature aims to provide brands with user-generated content and offers creators a new monetization opportunity based on performance metrics such as views, clicks, and conversions.
• Meta is introducing new parental supervision tools and privacy features to its platforms in response to concerns about their impact on teen mental health. However, many of the features require minors and their parents to opt in, raising doubts about their effectiveness. Instagram will now send notices to teens after they block someone, encouraging them to allow their parents to supervise their accounts. The system allows parents to set time limits, monitor followers, and track time spent on Instagram, but does not grant access to message content. Meta is also adding parental supervision tools to Messenger. Critics argue that these features may be helpful for engaged parents but do not address the wider challenges of online safety for children and teens.
• Nicola Mendelsohn, head of the global business group at Meta, discussed the growth opportunities at the Cannes Lions festival highlighting the popularity of Reels on the platform, with 2 billion Reels being shared daily, making it one of their fastest-growing products. She also reaffirmed Meta's commitment to the metaverse, stating that they are "all in" and encouraging attendees to experience it at their Quest demonstration area.
• Amazon's potential launch of an ad-supported tier for Prime Video positions it uniquely in the streaming industry. The move comes as other streaming platforms, such as Netflix and Disney+, have already introduced ad-supported tiers. Amazon's advantage lies in its access to massive sales data, which can help brands evaluate the effectiveness of their TV ads in driving product sales. With its extensive ad platform and first-party data, Amazon can offer advertisers valuable insights and a holistic advertising journey. However, questions remain about pricing for consumers and advertisers, as well as the impact on the overall cost of a Prime subscription. Other streaming platforms may need to forge partnerships with retail media networks to provide granular reporting and closed-loop measurement similar to Amazon's capabilities.
• State Farm has invested heavily in gaming as part of its marketing strategy to connect with younger consumers. Last year, the company launched the Gamerhood Challenge show on Twitch, which garnered significant engagement and views. This year, State Farm continued its gaming efforts with The Gamerhood Challenge 2, featuring a larger roster of gamers, streamers, and content creators. The series takes place in a 50,000-square-foot set with various obstacles and interactive games.

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• NASA Seals Crew In Isolated Chamber For Yearlong Test Of Mars Mission
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• Volvo becomes latest automaker to adopt Tesla EV charging standard
• Podcast app Stitcher is shutting down in August
• Allbirds is trying to win back Silicon Valley with a weird sock shoe
• Pickleball Injuries Cost Americans Nearly $400 Million This Year
• You Are NOT the Father': Maury Povich Is Launching an At-Home Paternity Test Company
• At Paris Fashion Week, It Was Louis Vuitton vs. the World
• Diageo ends Diddy brand relationship after his racism claims
• Man Is Sentenced in $9 Million Cow Manure Ponzi Scheme
• Apple Put the First Episode of Silo Free on... Twitter

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