WEBVTT - FTC vs. Amazon and Starfield Launches 0:00:01.760 --> 0:00:07.040 From Mahard where Innovation, money and power collie in Silicon Valley, NBN. 0:00:07.360 --> 0:00:11.399 This is Bloomberg Technology with Caroline Hyde and Ed lud Love. 0:00:25.560 --> 0:00:28.640 I'm Caroline Heider, Bloomberg's World headquarters in New York and 0:00:28.640 --> 0:00:30.160 now Med Ludlow in San Francisco. 0:00:30.240 --> 0:00:32.120 This is Bloomberg Technology. 0:00:31.640 --> 0:00:32.680 Coming up the FTC. 0:00:32.880 --> 0:00:35.839 It gears up to sue Amazon this month after a 0:00:35.920 --> 0:00:38.519 four year antitrust investigation into the company. 0:00:38.720 --> 0:00:39.959 Will bring you all the details. 0:00:40.920 --> 0:00:46.080 Plus after years in development, Microsoft's highly anticipated Starfield hits 0:00:46.120 --> 0:00:48.960 the marketplace to some rave reviews. We discussed with the 0:00:49.000 --> 0:00:52.120 heads of Bethesda Game Studios and Microsoft Gaming. 0:00:52.440 --> 0:00:55.640 And the US is seeking more details into Huawei's made 0:00:55.760 --> 0:00:58.040 in China chip as they start to wonder about the 0:00:58.080 --> 0:01:01.680 effectiveness of US curbs on the carries vast technology sector. 0:01:02.320 --> 0:01:05.399 But let's dig into these markets first and foremost, as 0:01:05.400 --> 0:01:08.360 we look at what is again a macro picture ed overall, 0:01:08.400 --> 0:01:11.560 we are seeing ism services, the data, the macro picture 0:01:11.640 --> 0:01:15.000 of health here in the United States, whereas it is lackluster. 0:01:14.680 --> 0:01:16.600 Over in Europe and over in China. And what does that. 0:01:16.520 --> 0:01:19.000 Mean, Well, we actually see rates rise here in the US. 0:01:19.080 --> 0:01:21.560 We see the dollar rise in particular up two tents 0:01:21.600 --> 0:01:22.040 of percent. 0:01:22.400 --> 0:01:22.959 And as we. 0:01:22.920 --> 0:01:25.080 Start to see a question of whether the Fed has 0:01:25.120 --> 0:01:27.080 to go further in terms of interest rate hikes to 0:01:27.160 --> 0:01:30.080 cool down the inflationary pressure here in the US, that 0:01:30.160 --> 0:01:32.560 of course means further sell off in the Nasdaq. We're 0:01:32.560 --> 0:01:34.000 off by more than one point one percent. The two 0:01:34.080 --> 0:01:36.520 year yield as we see crescendoing up some six basis points. 0:01:36.600 --> 0:01:39.560 We're above that five percent level, so notable in the 0:01:40.040 --> 0:01:42.240 minds of many at this moment. We're also looking what's 0:01:42.240 --> 0:01:43.959 happening in the Bloomberg Dollar Index, as I said, up 0:01:44.000 --> 0:01:44.679 two tens percent. 0:01:44.720 --> 0:01:46.320 What does that mean for the rest of the risk 0:01:46.360 --> 0:01:47.119 assets out there? 0:01:47.160 --> 0:01:49.840 Well, we know that Japan, China they start to talk 0:01:49.920 --> 0:01:53.240 up really trying to fight back on preserving their own currencies. 0:01:53.400 --> 0:01:55.480 What does it mean for crypto where we're seeing actually, 0:01:55.520 --> 0:01:58.640 of course continue pressure from the US dollar visa v bitcoin. 0:01:58.720 --> 0:02:01.080 We're now twenty five thousand, five seventy eight. Is this 0:02:01.080 --> 0:02:02.760 more risk a version that's playing in? Is it a 0:02:02.760 --> 0:02:05.120 strong dollar? But we're off by five ten percent. But 0:02:05.240 --> 0:02:07.520 dig into some of the micro that's dragging down the Nasdaq. 0:02:08.160 --> 0:02:10.480 Yeah, Karray, these are the biggest points movers to the 0:02:10.520 --> 0:02:13.440 downside on the Nasdaq one hundred. Clearly that hot ism 0:02:13.520 --> 0:02:17.360 print is impacting equities at the single name level, but 0:02:17.400 --> 0:02:19.639 there's news flow as well. Overnight the Wall Street Journal 0:02:19.680 --> 0:02:25.760 reporting that China Central government is telling specific agencies some 0:02:26.000 --> 0:02:29.080 agencies as the language they use to get their people 0:02:29.160 --> 0:02:32.440 to move away from using foreign handsets to domestic handsets, 0:02:32.560 --> 0:02:35.520 with particular focus on Apple's iPhone. We will discuss that 0:02:35.760 --> 0:02:38.360 later in the show, along with what's happening with Huawei, 0:02:38.480 --> 0:02:41.280 Tesla and Nvidia also big drags on the index at 0:02:41.320 --> 0:02:43.560 the innex level the Nasdaq one hundred. Two other big 0:02:43.639 --> 0:02:45.840 names that we're watching at the megacap level. Well, the 0:02:45.840 --> 0:02:48.280 first is Microsoft. As you heard later in the show, 0:02:48.320 --> 0:02:50.760 we will speak to Microsoft's gaming chief and the head 0:02:50.800 --> 0:02:53.680 of the prefers to Studio Starfield available today. So many 0:02:53.720 --> 0:02:55.560 of you have reached out to Karen and I with 0:02:55.600 --> 0:02:56.720 your thoughts on the title. 0:02:56.880 --> 0:02:57.519 We'll dig into that. 0:02:57.560 --> 0:02:59.800 But we also had the Gatekeeper's list out of the EU, 0:03:00.200 --> 0:03:02.560 which has some relevance to all of these megacat names. 0:03:02.600 --> 0:03:05.880 Then Amazon down one percent, as you know, Caroline. According 0:03:05.880 --> 0:03:08.880 to our sources, the FTC will finally act later this 0:03:08.960 --> 0:03:10.080 month with that suit. 0:03:10.440 --> 0:03:13.160 Yeah, as soon as September. That's, of course what's currently 0:03:13.160 --> 0:03:15.600 being reported by our own people on the ground. And 0:03:15.639 --> 0:03:18.200 we know that the company has been trying to well 0:03:18.280 --> 0:03:21.280 win the ear of regulators, but it's failed thus far 0:03:21.440 --> 0:03:24.799 to really offer what has been a substantive reason as 0:03:24.800 --> 0:03:28.200 to why it's marketplace in particular hasn't been deemed well 0:03:28.240 --> 0:03:31.639 overall some sort of competitive. 0:03:31.080 --> 0:03:32.079 Threat at the moment. 0:03:32.160 --> 0:03:33.920 So we're going to be digging into all of these 0:03:34.360 --> 0:03:35.520 lack of concessions. 0:03:35.680 --> 0:03:38.560 Thus far, it seems Blooms, Lea, Ninel and Lea. 0:03:39.080 --> 0:03:41.520 What is it that Amazon really has failed to show 0:03:41.600 --> 0:03:42.360 to the FTC. 0:03:43.800 --> 0:03:46.120 Yeah, the FTC has been looking at Amazon now for 0:03:46.160 --> 0:03:48.160 four years and it has a lot of concerns about 0:03:48.160 --> 0:03:52.080 the way that it has organized its marketplace. In order 0:03:52.120 --> 0:03:54.080 to get the prime badge, which you know is the 0:03:54.080 --> 0:03:56.520 one that most people buy, It's the one that when 0:03:56.560 --> 0:03:59.000 you go into the website and click on the buybox, 0:03:59.280 --> 0:04:02.040 that's the one right there. In order to get that, 0:04:02.080 --> 0:04:05.960 you have to use Amazon's logistics service, and the FTC 0:04:06.000 --> 0:04:09.520 is concerned that that unfairly ties access to the marketplace 0:04:09.640 --> 0:04:13.360 to using these other services that Amazon buys now. Amazon 0:04:13.400 --> 0:04:16.360 has tried to assuage some of the concerns about that, 0:04:16.600 --> 0:04:21.200 such as by opening up this new program called Prime 0:04:21.880 --> 0:04:25.240 Prime Sellers so that you could do your own logistics 0:04:25.279 --> 0:04:27.480 by using like ups or FedEx. 0:04:27.839 --> 0:04:28.960 But that doesn't seem to. 0:04:28.960 --> 0:04:33.520 Have resolved any concerns by the FTC. 0:04:34.880 --> 0:04:38.200 Leah, we know that in mid August, representatives from Amazon 0:04:38.440 --> 0:04:41.599 met with the three commissioners of the FTC. We talked 0:04:41.600 --> 0:04:43.919 so much about it with you on this program, but 0:04:44.000 --> 0:04:46.200 what we didn't really learn was are there any concessions 0:04:46.279 --> 0:04:49.880 or anything. Carol talked about that that Amazon tried to 0:04:49.920 --> 0:04:52.279 do to avert this from happening or is it always 0:04:52.320 --> 0:04:53.000 just going to happen? 0:04:54.400 --> 0:04:56.760 Yeah, what we've heard about that meeting. It took place 0:04:56.800 --> 0:04:59.760 in mid August. They had a video chat with all 0:04:59.800 --> 0:05:02.600 of them commissioners and sort of laid out what they 0:05:02.640 --> 0:05:04.600 think are their defenses to these things. 0:05:04.720 --> 0:05:06.120 There were no settlement talks. 0:05:05.920 --> 0:05:09.520 At that meeting, so the FTC wasn't particularly interested in 0:05:09.600 --> 0:05:13.440 hearing about a settlement. Which Amazon had offered a settlement 0:05:13.760 --> 0:05:16.200 to resolve these sort of concerns in both Europe and 0:05:16.240 --> 0:05:19.400 the UK, but here in the US the FTC was 0:05:19.440 --> 0:05:23.279 not particularly interested, so that was sort. 0:05:23.080 --> 0:05:25.599 Of the last step before. 0:05:25.400 --> 0:05:27.480 A suit is filed, and we're hearing that it will 0:05:27.520 --> 0:05:28.960 probably come sometime later. 0:05:28.800 --> 0:05:30.720 This month, and just give us the context. 0:05:30.880 --> 0:05:32.719 Remind us if you've. 0:05:32.560 --> 0:05:35.800 Forgotten, of course, Lena Khan, many you expected this was 0:05:35.960 --> 0:05:39.200 likely to come. It's the big beefy world visa VI Amazon, 0:05:39.440 --> 0:05:41.839 And actually they've taken steps to sue already in May 0:05:41.839 --> 0:05:43.320 and then in June. 0:05:43.760 --> 0:05:46.520 Yeah, so this will actually be the fourth lawsuit that 0:05:46.560 --> 0:05:50.080 the FTC has filed against Amazon this year. They filed 0:05:50.080 --> 0:05:55.320 two earlier over the privacy related to Amazon's devices. Those 0:05:55.400 --> 0:06:00.240 were the ring doorbell and the echo speaker. Amazon to 0:06:00.279 --> 0:06:03.360 pay thirty million dollars and fines related to that. They 0:06:03.360 --> 0:06:06.400 filed a second suit that remains pending. Amazon can tests 0:06:06.400 --> 0:06:10.320 that one over consumer protection allegations related to Prime. The 0:06:10.400 --> 0:06:13.880 FTC says that Amazon has deliberately made it too difficult 0:06:13.960 --> 0:06:17.960 for consumers to cancel their Prime subscriptions. Amazon, as I said, 0:06:18.000 --> 0:06:20.760 is contesting that, and that lawsuit is ongoing. But this 0:06:20.800 --> 0:06:22.640 will be sort of like the big one, you know. 0:06:22.880 --> 0:06:25.680 Lena Khan was well known before she became FTC chair 0:06:25.760 --> 0:06:29.440 for this paper she wrote about Amazon. Someone was joking 0:06:29.440 --> 0:06:31.760 to me the other day that like this lawsuit is 0:06:31.800 --> 0:06:34.480 going to be like inscribed on her tombstone when she dies. 0:06:34.920 --> 0:06:38.000 So you know, the FTC has been like looking forward 0:06:38.000 --> 0:06:39.800 to this for at least the past two years, and 0:06:39.839 --> 0:06:41.800 it's going to be one of the biggest moves that 0:06:41.839 --> 0:06:43.600 they make during the administration. 0:06:44.720 --> 0:06:47.240 All right, Blombos Leah Eylan on the antitrust beat at 0:06:47.240 --> 0:06:51.440 a DC, thank you sticking with these kind of geopolitical tensions. 0:06:51.480 --> 0:06:55.400 The US is working to establish a full detail of 0:06:55.520 --> 0:06:59.400 Huawei's advances in chit technology, news of which is Chinese 0:06:59.480 --> 0:07:04.280 nationalizard and ignited speculation about the effectiveness of Washington's curbs 0:07:04.480 --> 0:07:07.479 on the country's vast technology sector. For more, let's bring 0:07:07.480 --> 0:07:11.880 in Bloomberg's and Marie Orden amh DC A calling for 0:07:12.160 --> 0:07:15.720 what they see as a warranted investigation into Huawei and 0:07:15.800 --> 0:07:17.920 the seven nanometer processor. 0:07:18.000 --> 0:07:18.680 Will we get one. 0:07:20.280 --> 0:07:20.960 Well, we heard from. 0:07:20.920 --> 0:07:22.560 Jake Salvin yesterday and he really didn't want to make 0:07:22.560 --> 0:07:26.160 a prediction. All we saw at of Huawei interesting and 0:07:26.240 --> 0:07:28.960 a coincidence if you will, or potentially on purpose. When 0:07:29.000 --> 0:07:32.480 Gina Ramando, the individual in charge of the Commerce Department 0:07:32.560 --> 0:07:35.600 which is enacting those export controls and would likely be 0:07:35.640 --> 0:07:38.080 the ones to be leading that investigation when she was 0:07:38.160 --> 0:07:40.560 leaving China. But when we heard from Jake Selva and 0:07:40.560 --> 0:07:43.600 the President's national security advisors that they need more information, 0:07:43.760 --> 0:07:44.640 they certainly want to. 0:07:44.600 --> 0:07:45.320 Look into this. 0:07:45.840 --> 0:07:48.280 But today and they might get some political pressure because 0:07:48.320 --> 0:07:51.720 today we heard from Representative Michael McCall, he's the Republican 0:07:52.080 --> 0:07:54.600 chairman of the House Foreign Relations Committee. 0:07:54.160 --> 0:07:55.560 And he was asked about this. 0:07:55.680 --> 0:08:00.600 He was asked if China's chopped chip maker SMIC warned 0:08:00.600 --> 0:08:01.520 in an investigation. 0:08:01.680 --> 0:08:03.160 He said he certainly thinks it does. 0:08:03.200 --> 0:08:05.080 And he says it sure looks like they did in 0:08:05.200 --> 0:08:08.360 terms of violating sanctions. So this is not just going 0:08:08.400 --> 0:08:11.760 to be political pressure on the White House from Congress 0:08:11.760 --> 0:08:14.000 on the Republicans side of Democratic side, it does look 0:08:14.040 --> 0:08:16.640 like they want to see how Huawei was able to 0:08:16.720 --> 0:08:20.360 come up with this phone, given the fact that SMIC 0:08:20.560 --> 0:08:22.400 is on the entity's list, Whawei itself is on the 0:08:22.480 --> 0:08:25.760 entity's list, and given the fact that you have US 0:08:25.800 --> 0:08:31.120 technology present within SMIC components, if they were to want 0:08:31.160 --> 0:08:33.960 to give it to Huawei, they would need to get 0:08:34.160 --> 0:08:39.520 release and call Washington and get and get that review 0:08:39.600 --> 0:08:42.200 before they were should be allowed to do so. 0:08:42.240 --> 0:08:43.840 According to the current rule and law. 0:08:44.760 --> 0:08:50.160 Smoothyard Highens. That's basically, well the tactics have been thus far. 0:08:50.559 --> 0:08:53.080 Do you think that ultimately gets cooled into question because 0:08:53.160 --> 0:08:56.240 Jake Sullivan seems to be sticking to that particular calls. 0:08:57.840 --> 0:08:58.600 Yeah, it was interesting. 0:08:58.600 --> 0:09:00.760 What Jake Sullivan wanted to say yesterday is that they 0:09:00.840 --> 0:09:03.440 still maintain that there is a lot of business between 0:09:03.520 --> 0:09:05.600 or seemed like he was trying to say business between 0:09:05.760 --> 0:09:09.520 Washington and Beijing on the commercial side. But these export controls, 0:09:09.559 --> 0:09:13.080 these sanctions, these investigations, if they have one, is really 0:09:13.080 --> 0:09:13.679 has to do with. 0:09:13.720 --> 0:09:15.160 National security concerns. 0:09:15.520 --> 0:09:17.920 That was the message from Gina Ramundo when she was 0:09:17.920 --> 0:09:19.720 in China, and that seemed to be the message yesday 0:09:19.760 --> 0:09:20.880 from the podium in the West Wing. 0:09:21.600 --> 0:09:24.079 I'm Mary Holden, brilliant, Thank you very much for bringing 0:09:24.120 --> 0:09:26.960 us the inside track from Washington. Meanwhile, look, let's just 0:09:26.960 --> 0:09:28.760 talk a little bit more about what's happening in China. 0:09:28.800 --> 0:09:30.440 Because the government agencies. 0:09:29.960 --> 0:09:33.439 Have in fact band staff from using iPhones, Apple iPhones 0:09:33.520 --> 0:09:36.400 and other foreign random devices at work. That's all as 0:09:36.400 --> 0:09:39.600 we understand to the Wall Street Journal, China is Apple's 0:09:39.760 --> 0:09:42.760 largest international market. Remember, and iPhones are common in both 0:09:42.760 --> 0:09:45.120 government and in the private sector, so we'll see how 0:09:45.160 --> 0:09:46.240 that continues to unfold. 0:09:54.760 --> 0:09:57.400 Time for some talking tech first up Right to Repair 0:09:57.480 --> 0:10:01.880 supporters are increasingly bullish about their chances of advancing legislation 0:10:02.280 --> 0:10:06.480 in states nationwide after Apple unexpectedly got behind a California 0:10:06.520 --> 0:10:08.800 bill that cleared a key herd all last week. Final 0:10:08.880 --> 0:10:11.720 approval of the proposal will make the Golden State the 0:10:11.840 --> 0:10:15.800 latest to pass a law requiring the electronics companies loos 0:10:15.880 --> 0:10:19.160 in control over the parts and technical know how necessary 0:10:19.520 --> 0:10:23.880 to fix their products. Microsoft and Apple face fresh investigations 0:10:23.920 --> 0:10:27.280 from EU regulators as part of the block's landmark Digital 0:10:27.440 --> 0:10:30.160 markets clamp down. Those companies are among a list of 0:10:30.200 --> 0:10:34.120 twenty two services for under the EU's Digital Markets Act, 0:10:34.280 --> 0:10:36.840 which gives them six months to fall in line with 0:10:36.920 --> 0:10:39.040 the new rules or challenge. 0:10:38.640 --> 0:10:40.079 Them in an EU court. 0:10:40.200 --> 0:10:44.240 Plus, Saudi Telecom is taking a nearly ten percent stake 0:10:44.559 --> 0:10:48.000 in Spain's Telefonica for roughly two point twenty five billion, 0:10:48.200 --> 0:10:50.800 as the struggling the Did based carrier prepares to lay 0:10:50.800 --> 0:10:53.480 out a new strategy for future growth. The acquisition is 0:10:53.480 --> 0:10:56.160 bound to draw scrutiny from the Spanish government, which views 0:10:56.160 --> 0:10:59.679 Telefonica as a company of strategic importance operating in this 0:10:59.720 --> 0:11:03.800 structure that is critical to the nation's defense and security. 0:11:03.840 --> 0:11:06.960 Caroline, Meanwhile, I mean so many other stories to be 0:11:06.960 --> 0:11:09.800 digging into today. One of them is, of course, after 0:11:09.840 --> 0:11:12.920 their reverse stock split one to forty we work back 0:11:12.920 --> 0:11:15.360 at three dollars forty three, but under pressure once again, 0:11:15.400 --> 0:11:17.880 we're down by three percent. And this, as we understand, 0:11:17.920 --> 0:11:20.680 the CEO is putting out really a letter talking about 0:11:20.760 --> 0:11:24.560 how they're looking to renegotiate nearly all of their leases 0:11:24.559 --> 0:11:27.240 with landlords and they plan to exit what they call 0:11:27.360 --> 0:11:29.199 unfit and underperforming locations. 0:11:29.440 --> 0:11:32.400 Really, David totally here, Ed is sort. 0:11:32.200 --> 0:11:36.479 Of at a race against time, really, isn't it. Ultimately 0:11:36.559 --> 0:11:39.000 a lot of businesses haven't been returning to the office. 0:11:39.080 --> 0:11:40.959 We now get the feel that it's back to school 0:11:41.000 --> 0:11:44.520 Septembers upon us. But ultimately they are running low on 0:11:44.559 --> 0:11:47.200 the money and they need to be renegotiating now. Of course, 0:11:47.200 --> 0:11:49.000 they've already warned that whether or not this business can 0:11:49.040 --> 0:11:49.800 be a going concern. 0:11:50.720 --> 0:11:52.200 Yeah, so that happened last month. 0:11:52.200 --> 0:11:54.240 But the reality is there are people in the tech 0:11:54.280 --> 0:11:57.599 industry that still use we work, you know, small startup 0:11:57.640 --> 0:12:00.800 shared spaces and are. Part of what Tolly said is 0:12:00.800 --> 0:12:03.040 that if we're going to close locations down just like 0:12:03.040 --> 0:12:05.640 they've done in the past, as part of this process, 0:12:05.880 --> 0:12:07.439 they're going to have to go and tell everyone that's 0:12:07.480 --> 0:12:08.400 currently working in them. 0:12:08.480 --> 0:12:11.559 Yeah, off for alternative arrangements, additional support to minimize any 0:12:11.600 --> 0:12:16.040 disruption or indeed inconvenience, but inconvenient it is if you 0:12:16.120 --> 0:12:18.520 are in someone who enjoys going into the office in 0:12:18.559 --> 0:12:20.920 some of these key locations. But we keep a close 0:12:20.920 --> 0:12:22.800 eye on what is now at three dollars forty three 0:12:22.840 --> 0:12:25.200 stock and has continued to be under pressure from New 0:12:25.280 --> 0:12:26.160 York and San Francisco. 0:12:26.800 --> 0:12:28.240 This is Bloomberg Technology. 0:12:49.480 --> 0:12:52.800 Let's go global and take a look at India's economic transformation. 0:12:52.840 --> 0:12:57.080 With multinational giants like Apple and Samsum looking to diversify 0:12:57.120 --> 0:13:00.680 their manufacturing away from China, Here's the question, is India 0:13:00.720 --> 0:13:03.880 prepared to take China's path and emerge as the next 0:13:03.920 --> 0:13:08.960 global factory to become the next economic powerhouse. Here's Bloomberg's Minarkadoshi. 0:13:15.400 --> 0:13:19.040 India is the world's second largest phone market, over two 0:13:19.120 --> 0:13:20.720 hundred million sold last year. 0:13:21.160 --> 0:13:23.160 A decade ago, most of them were important. 0:13:23.440 --> 0:13:26.600 Now the country is a net exporter with Samsung and. 0:13:26.600 --> 0:13:27.800 Apple leading the charch. 0:13:29.160 --> 0:13:32.800 Crimnisterner in the movie wants to repeat this phone success 0:13:33.080 --> 0:13:38.400 across electronic goods, electric vehicles, green energy, chemicals, textiles. 0:13:38.679 --> 0:13:40.600 The neartome goal is to reverse the. 0:13:40.559 --> 0:13:45.320 Declining share of manufacturing in GDP, targeting one trillion dollars 0:13:45.320 --> 0:13:49.439 in goods exports and most importantly, creating jobs for the 0:13:49.559 --> 0:13:51.880 largest working age population. 0:13:51.760 --> 0:13:52.360 In the world. 0:13:53.400 --> 0:13:56.520 But standing in the way of this manufacturing nvision are 0:13:56.559 --> 0:14:00.880 some old challenges, land acquisition problems, high logistics costs, and 0:14:00.960 --> 0:14:04.440 some new ones as well automation lack of skilled labor 0:14:04.880 --> 0:14:08.439 take phones, for instance. The government has implemented a mix 0:14:08.480 --> 0:14:13.280 of high import tariffs on finished phones and production incentives 0:14:13.480 --> 0:14:18.559 to boost local manufacture, but supply chain in digitization is. 0:14:18.520 --> 0:14:19.800 A long way off. 0:14:20.480 --> 0:14:24.000 According to one report, Indian factories add eighteen percent in 0:14:24.080 --> 0:14:28.280 value to the electronic devices they assemble for export, compared 0:14:28.320 --> 0:14:31.240 with thirty eight percent in China and twenty four percent 0:14:31.360 --> 0:14:35.160 in Vietnam. Manufacturing in Vietnam is also cheaper by at 0:14:35.240 --> 0:14:38.480 least a tells the mag in India campaign will benefit 0:14:38.800 --> 0:14:43.120 from record investments in infrastructure and logistics. There's also the 0:14:43.240 --> 0:14:48.240 lure of a potentially large domestic market. And now there's 0:14:48.280 --> 0:14:52.240 the China plus one wave as large global corporations seek 0:14:52.280 --> 0:14:55.360 to mitigate geopolitical risks, and they are slow in China 0:14:55.440 --> 0:14:58.280 economy by diversifying their supply chains. 0:14:59.080 --> 0:15:00.480 Since the liberal i of. 0:15:00.440 --> 0:15:03.120 Its economy in the nineties, India has come to be 0:15:03.200 --> 0:15:06.560 known as the back office to the world. After becoming 0:15:06.560 --> 0:15:10.120 a developed economy, the government also needs it to become 0:15:10.520 --> 0:15:11.840 the factory to the world. 0:15:15.400 --> 0:15:19.080 That was Bloomberg's Monarkadoshi right. Top story Microsoft shot for 0:15:19.120 --> 0:15:22.400 the sky was Starfield. It's ambitious new space role playing 0:15:22.480 --> 0:15:25.400 video game and so far looks like a pretty decent 0:15:25.440 --> 0:15:29.640 bet The highly anticipated title arrives after seven years in development. 0:15:29.640 --> 0:15:32.440 It's the first time Bethesda has entered a new universe 0:15:32.480 --> 0:15:36.160 in twenty five years. Starfield available today to everyone through 0:15:36.320 --> 0:15:38.440 Xbox Game Pass. Delighted to bring in some of the 0:15:38.480 --> 0:15:42.160 giants behind the game, Phil Spencer, CEO of Microsoft Gaming, 0:15:42.440 --> 0:15:46.280 and Todd Howard, executive director of Bethesda Games Studios and 0:15:46.520 --> 0:15:48.520 the executive producer on the title. Todd, I'm going to 0:15:48.520 --> 0:15:50.680 start with you. I asked our audience, what would you 0:15:50.720 --> 0:15:54.280 ask Todd? Big question from many, why did you not 0:15:54.320 --> 0:15:55.840 optimize this game for PC. 0:15:59.360 --> 0:15:59.760 We did. 0:16:00.000 --> 0:16:02.240 It's running great. It is a next gen PC game. 0:16:02.280 --> 0:16:05.320 We really do push the technology, so you may need 0:16:05.360 --> 0:16:08.000 to upgrade your PC for this game. But it's got 0:16:08.000 --> 0:16:09.520 a lot of great stuff going on in it, and 0:16:09.560 --> 0:16:10.920 the fans are responding awesome. 0:16:11.800 --> 0:16:14.080 Karen and I have been reviewing the gameplay. We've also 0:16:14.160 --> 0:16:17.000 been reviewing some of the discussion online. Phil, Good to 0:16:17.040 --> 0:16:21.200 see you Xbox game Pass. Okay, it's available to anyone 0:16:21.400 --> 0:16:24.680 that subscribes, so how can you guarantee from a sort 0:16:24.720 --> 0:16:28.600 of sales perspective that you kind of hit the heights 0:16:28.600 --> 0:16:31.960 that Skyrim has. If it's available to anyone through game Pass, 0:16:32.240 --> 0:16:34.080 how do you ensure people actually play it? 0:16:37.880 --> 0:16:41.200 Well, we can see people playing, which is great on 0:16:41.240 --> 0:16:43.880 the platform. You might know, the game has been in 0:16:43.960 --> 0:16:46.840 preview for the last week and it's already our most 0:16:46.960 --> 0:16:51.440 played next Gen exclusive game on Xbox, so we're seeing 0:16:51.520 --> 0:16:55.120 huge success. It's our biggest wish listed game on Steam 0:16:55.160 --> 0:16:58.800 across Xbox and Bethesda Game Studio's history. And now, as 0:16:58.840 --> 0:17:01.600 you said, tens of millions of Game Path subscribers and 0:17:01.680 --> 0:17:04.520 the Standard Edition retail customers all get to play today. 0:17:04.920 --> 0:17:07.520 So incredible day New franchise launching. 0:17:07.600 --> 0:17:08.119 It's a lot of. 0:17:08.119 --> 0:17:10.919 Fun and I'm sure you want to dwell on the 0:17:10.960 --> 0:17:13.600 here that now, Phil, But You've been asked and I'm 0:17:13.600 --> 0:17:16.560 going to ask it again. You mentioned exclusive, so does 0:17:16.600 --> 0:17:19.160 that mean being able to scroll six will be How 0:17:19.200 --> 0:17:22.320 do you mark as to whether this is the right track, Phil? 0:17:22.480 --> 0:17:24.919 Yeah, we look at it on a case by case basis. 0:17:24.960 --> 0:17:27.359 With the games that we build, we want to make 0:17:27.400 --> 0:17:30.120 sure our games are available in so many different places 0:17:30.160 --> 0:17:32.080 on our Xbox consoles, on. 0:17:32.200 --> 0:17:33.919 PC, also via cloud. 0:17:34.000 --> 0:17:37.520 These games can come to almost any web enabled device. 0:17:37.640 --> 0:17:40.520 We're looking at. You know, millions and millions of players 0:17:40.560 --> 0:17:43.720 who will have had access to Starfield and other Xbox 0:17:43.760 --> 0:17:47.560 Game Studios games. It's really about giving players choice around 0:17:47.600 --> 0:17:49.520 how they want to play and they build their library 0:17:49.560 --> 0:17:50.040 of games. 0:17:50.720 --> 0:17:54.879 What then, todd about timing? What then about other names, 0:17:54.960 --> 0:18:00.600 other games Calder for example, Wilder'sgate that have done significant well, 0:18:00.640 --> 0:18:04.720 how do you think about ultimately making sure everyone's addicted 0:18:04.760 --> 0:18:06.400 to your current offering right here right now? 0:18:06.640 --> 0:18:08.800 You know, I think if you look at video games now, 0:18:08.840 --> 0:18:12.159 it is so competitive. I think this year twenty twenty 0:18:12.200 --> 0:18:15.480 three could be the greatest year ever in video games. 0:18:15.520 --> 0:18:18.200 I don't know, but to have Starfield be out there 0:18:18.240 --> 0:18:21.639 and the response that we've gotten has just been incredible 0:18:21.960 --> 0:18:24.760 for everybody here at the studio. And the other thing is, yes, 0:18:24.800 --> 0:18:28.080 it's about launch, it's about today, but our games they 0:18:28.119 --> 0:18:30.760 are played for years. You know, we're twelve years after 0:18:30.800 --> 0:18:33.560 Skyrim still one of our most played games. So we 0:18:33.680 --> 0:18:35.640 like to build these worlds that people can really really 0:18:35.680 --> 0:18:38.720 get lost in the fan feedback and what it means 0:18:38.760 --> 0:18:42.560 to everybody, It really is incredible for all of us here. 0:18:44.080 --> 0:18:46.000 Todd, I want to go to another one of the 0:18:46.040 --> 0:18:49.800 audience questions, and it's very specific, but so many people 0:18:49.840 --> 0:18:53.919 asked it, why are there no vehicles on planets? Space 0:18:54.040 --> 0:18:55.959 is one thing, but what about terra firma. 0:18:56.400 --> 0:18:59.119 It's a great question. Actually it's something we consider. You know, 0:18:59.160 --> 0:19:01.200 we're going to do our space, we're going new planets. 0:19:01.400 --> 0:19:04.439 Once you do vehicles, it does change the gameplay. So 0:19:04.600 --> 0:19:07.920 by focusing once you land in your ship that you're 0:19:07.960 --> 0:19:11.160 on foot, it lets us really for the players, make 0:19:11.160 --> 0:19:14.760 it an experience where we know how fast they're seeing things. 0:19:15.440 --> 0:19:16.520 In one sense. 0:19:16.359 --> 0:19:18.720 You do have a vehicle, which is obviously have your spaceship. 0:19:18.720 --> 0:19:20.560 You can go around in space, but then on the 0:19:20.600 --> 0:19:23.440 surface you do have a jetpack which you can upgrade, 0:19:23.480 --> 0:19:26.400 which is super fun new experience for us. And obviously 0:19:26.480 --> 0:19:30.000 planets have different levels of gravity which make that unique 0:19:30.040 --> 0:19:31.080 for many planets. 0:19:31.359 --> 0:19:35.199 Phil this is so closely tied to Xbox, and I 0:19:35.240 --> 0:19:37.320 find it interesting. I have to ask you about the 0:19:37.440 --> 0:19:41.320 latest offer from Microsoft and Activision to the uk CMA. 0:19:41.880 --> 0:19:44.919 Do you think that that structure will be accepted with 0:19:45.000 --> 0:19:45.960 the UKCMA. 0:19:46.320 --> 0:19:49.520 You know, we're working cooperatively with the regulators as we've 0:19:49.560 --> 0:19:52.320 had through this whole process. As you're well aware, it's 0:19:52.320 --> 0:19:55.320 been a long process. We remain confident in the work 0:19:55.359 --> 0:19:58.480 that we're doing with the CMA and the European Commission 0:19:58.520 --> 0:20:00.840 and here with the FTC and the UA, that we 0:20:00.920 --> 0:20:02.119 will close this acquisition. 0:20:03.119 --> 0:20:05.600 Another rather specific question for you, Todd. 0:20:06.160 --> 0:20:11.600 What's been your favorite means and operation, like what you'll 0:20:11.600 --> 0:20:14.520 build out there? What's been your favorite build or indeed 0:20:14.800 --> 0:20:18.240 favorite well means of traveling through space. 0:20:18.440 --> 0:20:21.080 Favorite means of traveling through space? Well, you know, when 0:20:21.119 --> 0:20:24.080