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Leading up to Black Friday and Cyber Monday, some expectations consumers would open their wallets to buy electronics were high.  The November Consumer Electronics Association (CEA)-CNET Index of Consumer Technology  Expectations (ICTE), which measures consumer expectations about planned technology spending, was at 93.5 on November 24th. That was the index’ highest level since tracking began in January 2007, and a gain of more than 14 points over October.

Putting the forecast to the test, actual results are starting to come in:

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When corporate earnings reports come in clusters there is often a macro tone about industry that echoes in the details like a PR reps list of talking points.  In Viacom’s third quarter earnings there were references to “financial discipline” and “renewed optimism.”  There were hints of a cautious recovery in advertising revenue. It was the same tone taken by other media companies.  On point and consistent, the message was clear: careful cost management is carrying the load while the broader market is stabilizing.

Overall, Viacom reported consolidated revenues of $3.3 billion in the third quarter, down 3% year over year. Operating income climbed 14% to $784m.  Net Adjusted EPS was 69 cents a share.  Analysts had expected 57 cents on comparable revenue (Thomson Reuters).

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Every company that struggles inevitably reaches a stage in its life when managers introspectively ask: what kind of company are we?   Yahoo in the Carol Bartz era decided it’s a media company. The company wants to be at the center of people’s online lives.

For the last two quarters Yahoo has trimmed costs and refocused to try and deliver that experience.  The end is not yet within reach,  but an apparently stabilizing ad market seems to be helping the cause.

Tuesday, Yahoo reported third quarter earnings up more than three fold over the same period last year.  On revenue of $1.58b (down 12% year over year), Yahoo earned $186.1m or 13 cents a share.   

The third consecutive double digit revenue decline was expected.  The extent of earnings growth wasn’t. 

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There comes a point when calling each successive performance a record starts to get a little ridiculous.  Apple crossed that threshold a long time ago but the fiscal rocket ship flying out of Cupertino isn’t showing any signs of slowing down either.   Even in spite of lofty expectations and market acceptance of Apple’s generally conservative guidance, Apple yet again flew by the benchmarks laid down to measure its performance.

Monday,  Apple’s reported revenue for the September quarter up 25% year over year to $9.87b (the company’s second best total on record).  Profits surged 47%.

For the fourth quarter, Apple earned $1.67b, or $1.82 a share, compared to $1.14 billion, or $1.26 a share, in the same period a year ago. Click to Read More

The New York Times Co. is set to announce quarterly earnings later this week.  Monday, bad news came early and by surprise.

With a need for greater cost reductions, the Times announced a plan to cut 100 newsroom jobs (8% of total) by year end.  This on top of budget cuts and a 5% employee pay cut already in place.

The Times is approaching the process with a buyout offer.  Employees will receive detailed information packets and have forty five days to decide whether or not to apply.  The buyouts are expected to offer between two and three weeks of salary per year of employment. If there aren’t enough volunteers, the company will implement layoffs to reach the quota.

Earlier this year, Times executives said they didn’t anticipate further newsroom cuts in 2009.  That they changed their minds isn’t surprising given the current ad market and the struggles of the print industry.  Newspapers are fighting an increasingly competitive online global arena and it’s clear there is no easy answer for how to succeed.   There’s so much information beamed at audiences.  To stand out from the volume (below cost and consistently) is a difficult task.  

What is odd about the Times’ news is the timing. Delivering bad news days before earnings…  the foreshadowing doesn’t look good.

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There is a transformation underway in the world of video games.  Fueled by changing technology and the opportunity to evolve outdated business models everything from who plays, to what they play, to how they play it, are in states of transition.

For the analyst, the executive, entrepreneurs or for simply curious fans, this begs the question: Where are we headed?   What will come next? Where will things differ and where will they stay the same?

Every answer is a tea-leaf reading game.  But dot by connected dot, piece by piece, from the patterns and trends showing today?

Chances are we’re heading slowly toward a new marketplace.  A place with different cost structures and different hardware archetypes.  A place where traditional hardware cycles elongate and where software delivery methods change. We’re probably looking at a gaming industry future where some consoles become truly multi-purpose home entertainment platforms – music, movie, digital video recording (DVR) and gaming enabled devices in one – where direct delivery (streamed digital content or real-time streamed game play) become the dominant reality.

It’s a likely future where interfaces and user experiences will mix and match – from 2D to 3D, from traditional joystick inputs to full figured motion control and voice automation.   It’s a future where mobile games will likely take off in new directions, a place where boundaries from one medium to the next (console, PC, portable, cellular etc) become less defined.   It’s a place where a game’s play will be capable of crossing over between different devices.  It’s a place where “non-puzzle” or non-“head to head” games won’t have to be linear, where game storytelling is able to explore new forms.

We’re heading toward an environment where streams and subscriptions stand to surpass “shrink wrap” software sales.  A place where business models evolve.

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Verizon, the biggest wireless service provider in the US has been loosely linked to Google’s Android operating system in the past but Tuesday the companies ratcheted up the stakes with word of a strategic partnership.

In a joint announcement (release), timed to coincide with the CTIA Wireless show, Verizon CEO Lowell McAdam said his company and Google plan to  "co-develop a family of Android based devices … with innovative applications from both companies."

Talks between the two giants began almost eighteen months ago and the first few devices to come out of the deal will be announced in a “few weeks.”

Both Verizon and Google are pledging to commit “substantial resources” to the project.  They are also pledging openness.

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