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Zuora’s IPO is another step in golden age of enterprise SaaS

Zuroa’s founder and CEO Tien Tzuo had a vision of a subscription economy long before most people ever considered the notion. He knew that for companies to succeed with subscriptions, they needed a bookkeeping system that understood how they collected and reported money. The company went public yesterday, another clear sign post on the road to SaaS maturation.

Tzuo was an early employee at Salesforce and their first CMO. He worked there in the early days in the late 90s when Salesforce’s Marc Benioff famously rented an apartment to launch the company. Tzuo was at Salesforce 9 years, and it helped him understand the nature of subscription-based businesses like Salesforce.

“We created a great environment for building, marketing and delivering software. We rewrote the rules, the way it was built, marketed and sold,” Tzuo told me in an interview in 2016.

He saw a fundamental problem with traditional accounting methods, which were designed for selling a widget and declaring the revenue. A subscription was an entirely different model and it required a new way to track revenue and communicate with customers. Tzuo took the long view when he started his company in early 2007, leaving a secure job at a growing company like Salesforce.

He did it because he had the vision, long before anyone else, that SaaS companies would require a subscription bookkeeping system, but before long, so would other unrelated businesses.

Building a subscription system

As he put it in that 2016 interview, if you commit to pay me $1 for 10 years, you know that $1 was coming in come hell or high water, that’s $10 I know I’m getting, but I can’t declare the money until I get it. That recurring revenue still has value though because my investors know that I’m secure for 10 years, even though it’s not on the books yet. That’s where Zuora came in. It could account for that recurring revenue when nobody else could. What’s more, it could track the billing over time, and send out reminders, help the companies stay engaged with their customers.

Photo: Lukas Kurka/Getty Images

As Ray Wang, founder and principal analyst at Constellation Research put it, they pioneered the whole idea of a subscription economy, and not just for SaaS companies. Over the last several years, we’ve heard companies talking about selling services and SLAs (service/uptime agreements) instead of a one-time sale of an item, but not that long ago it wasn’t something a lot of companies were thinking about.

“They pioneered how companies can think about monetization,” Wang said. “So large companies like a GE could go from selling a wind turbine one time to selling a subscription to deliver a certain number of Kw/hr of green energy at peak hours from 1 to 5 pm with 98 percent uptime.” There wasn’t any way to do this before Zuora came along.

Jason Lemkin, founder at SaaStr, a firm that invests in SaaS startups, says Tzuo was a genuine visionary and helped create the underlying system for SaaS subscriptions to work. “The most interesting part of Zuora is that it is a “second” order SaaS play. It could only thrive once SaaS became mainstream, and could only scale on top of other recurring revenue businesses. Zuora started off as a niche player helping SaaS companies do billing, and it dramatically expanded and thrived as SaaS became … Software.”

Market catches up with idea

When he launched the company in 2007, perhaps he saw that extension of his idea out on the distant horizon. He certainly saw companies like Salesforce needing a service like the one he had decided to create. The early investors must have recognized that his vision was early and it would take a slow, steady climb on the way to exiting. It took 11 years and $242 million in venture capital before they saw the payoff. The revenue after 11 years was a reported $167 million. There is plenty of room to grow.

But yesterday the company had its initial public offering, and it was by any measure a huge success. According TechCrunch’s Katie Roof, “After pricing its IPO at $14 and raising $154 million, the company closed at $20, valuing the company around $2 billion.” Today it was up a bit more as of this writing.

When you consider the Tzuo’s former company has become a $10 billion company, that companies like Box, Zendesk, Workday and Dropbox have all gone public, and others like DocuSign and Smartsheet are not far behind, it’s pretty clear that we are in a golden age of SaaS — and chances are it’s only going to get better.

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U.S. iPhone users spent 23% more in apps in 2017 than the year before

Games, dating apps and streaming services contributed to a rise in consumer spending in iPhone apps last year, according to new data from app store intelligence firm, Sensor Tower. The firm found that U.S. iPhone users spent 23 percent more on in-app purchases in 2017 than they did the year prior – or, an average of $58 per active user was spent on in-app purchases, up from $47 in 2016.

To be clear, this is only on purchases made within an app using Apple’s in-app purchase or subscription mechanisms. It’s not tracking e-commerce purchases – like things users bought in Amazon – or payments made to service providers in an app like Uber or Lyft.

Games were the largest category of consumers spending in 2017, accounting for roughly $36 of the $58 spent per device; or 62 percent of the spending. That’s a 13 percent increase over 2016’s $32 spent.

It’s no surprise that the biggest driver of iPhone spending is games.

The category typically outweighs all others in terms of revenue, not only for paid downloads, but for the ongoing purchases of things like virtual goods, unlocking levels, in-app currency, and the other extra features that mobile games offer. And because people play some types of games for long periods of time – like MMORPGs – they have many opportunities to spend on in-game items.

So while it’s notable that in-app spending in games is up by a few dollars, year-over-year, the more interesting trend is the rise in in-app spending generated by Lifestyle apps and subscription-based streaming services.

Specifically, outside of games, Entertainment apps – which includes streaming services like Netflix, Hulu, HBO NOW, etc. – grew 57 percent year-over-year to reach $4.40 in consumer spending per device. That makes it the largest category of spending outside games.

Music is also another big category for spending, up 8 percent year-over-year to $4.10. Much of what people are paying for in a music app is a subscription for the premium tier of the service, as with Pandora or Spotify. If this category was combined with Entertainment – which is also growing thanks to subscriptions – you’d see that streaming services are now a big factor contributing to the overall rise in U.S. consumer spending in iPhone apps.

But subscriptions to other types of services are growing, too.

Lifestyle apps, led by dating apps like Tinder and Bumble, grew 110 percent from 2016 to 2017 to reach $2.10 in iPhone consumer spending per device.

Spending in social media apps was up by 38 percent, to $3.60 thanks to things like in-app tipping (e.g. Live.me, Periscope, YouTube Gaming), subscriptions (e.g. LinkedIn memberships), and other activity (e.g. call credits in Skype).

Twitch has oddly categorized itself as a “Photo & Video” app, in case you’re wondering where it fits in.

While Sensor Tower’s published report focused on iPhone consumer spending, the company tells TechCrunch that Android spending on Google Play was much lower last year.

“We estimate that for each active Android device in the U.S. last year, approximately $38 was spent on Google Play – on and in apps – so about $20 less than iOS,” said Sensor Tower’s head of mobile insights, Randy Nelson. “That tracks with the disparity in revenue generation we see between the stores outside the per-device level,” he added. “Android users generally spend less on or in apps, Google Play generated about 60 percent of the App Store’s revenue last year in the U.S.”

However, he pointed that Android users have more than one official store to buy from – like the Amazon Appstore or Samsung Store, for example. Some apps also choose not to monetize directly through Google Play, which is an option not permitted on Apple’s App Store.

The increase in consumer spending isn’t the only significant trend Sensor Tower spotted.

iPhone app installs in the U.S. were up nearly 10 percent from 2016 to 2017, with users installing an average of 4 more apps in 2017 compared with the prior year.

Games, again, were a big source for installs, followed by Photo & Video apps, Entertainment apps, Social Networking and Utilities.

In total, users had installed an average of 45 apps on their iPhone apps in 2017, the firm found.

Correction, 4/13/17, 1 PM ET: users have installed 45 apps over the past year; that’s not the number of installed app; the post has been updated with clarified wording. Apologies for the confusion. 

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Podcasting app Anchor can now find you a cohost

Fresh off its relaunch as an app offering a suite of tools for podcasters, Anchor today is rolling a new feature that will make it easier for people to find someone to podcast with: Cohosts. As the name implies, the app will now connect you – sometimes immediately, if people are available – with another person who’s interested in discussing the topic you’ve chosen.

The result is a more engaging podcast where a conversation is taking place between two people, rather than a monologue.

“We give people the ability to choose a topic that they want to talk about on their podcasts, and the product will get to work trying to match you up with someone who wants to talk about the exact thing,” explains Anchor CEO Mike Mignano.

At first, Anchor will try to match you with someone who’s also currently in the app, he says. If it’s not able to do that, then it will notify you when it finds a match through an alert on your phone.

“We’ve developed an intelligent matching system to make sure there’s a high likelihood that you get matched up with someone that wants to talk at the same time,” Mignano notes.

The topics users select can be either broad – like politics – or narrow and hyper-specific, the company says.

One you’ve been offered a connection to a cohost, you have 30 seconds to meet in the app and decide how you want to get started. The recording will then start automatically, and will continue for up to 15 minutes. Both users will receive a copy of the recording and can choose to publish it to their own podcast right away, or save it for later.

After the recording, podcasters rate each other with a simple thumbs up or down. (If down, you’ll need to select a reason in case Anchor needs to step in and review bad behavior. Bad actors will no longer be permitted to use the service.)

If both give each other a thumbs up, though, they’ll automatically be favorited on each other’s account, so they can find each other again. Next time they want to record, they’ll have the option to team up through Anchor’s “Record with Friends” feature, where there’s no time limit.

Those who are highly rated will also get better ranked in the matching algorithm, Anchor notes.

If a podcaster has a particular topic in mind – like wanting to discuss Stephen King novels, for example – Mignano continues, they’re very likely to return to the app when they get a match, the team found during testing.

The Cohosts feature was beta tested with a small subset of users prior to today’s launch, but the company declines to share how many users tested it or how many people are currently using the app to create podcasts.

However, the app’s big makeover which took place in February basically turned Anchor into a different kind of app – so it’s still establishing a new user base.

While before, the app was focused on recording audio, Anchor 3.0 is meant to be a podcasting suite in your pocket. The new version includes recording features with no time limits, a built-in library of transition sounds, tools for adding music, support for voice messages (a call-in like feature), free hosting, and a push button experience for publishing to share your podcast to all the top platforms.

Matching cohosts in teams of two may just be the start.

Mignano hints that a future version of Anchor may include more flexibility on the number of cohosts. “You can imagine us doing something like, if the user specifies the topic, they can indicate how many people they want to have a conversation with,” he teases.

The new feature recalls Anchor’s roots as a platform for social audio.

“It’s something we’ve been thinking about for a while, says Mignano. “If you think back to Anchor 2.0 – and 3.0, as well – we’ve always wanted to make Anchor a little more interactive than a standard podcasting platform. To us, democratizing audio doesn’t just mean making it easier to create. It also means modernizing the format by making it more shareable, easier to interact with, short form, etc.,” he says.

The Cohosts feature is rolling out today in Anchor’s app.

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Sensu raises $10M to build a robust monitoring system for all your different operations

While companies’ operations become increasingly fragmented into a wide variety of different spots — especially if they exist somewhere in a group of different cloud tools — making sure those operations are still healthy has become more and more critical.

And for companies whose lifeblood is directly keeping that software online longer, it’s even more important. Uptime maps directly to revenue, and that’s why Caleb Hailey — who previously worked on this as a consultancy — decided to start Sensu to try to piece together the monitoring operations into a single spot where a company can keep an eye on the health of their operations. The company said it has raised $10 million in a new financing round led by Battery Ventures, with existing investor Foundry Group participating. Battery’s General Partner Dharmesh Thakker is joining the company’s board of directors.

“Big enterprises are hesitant to work on startups, they’re risk averse, and it reduces the risk exposure to double down on an open source stack,” Hailey said. ” But this open source technology, it’s used in the largest institutions in the world, and we have found that by delivering cost savings in a competitive market we have already established a rapidly growing developer stream.”

While all those different tools may have their own way of monitoring the health of a system, Sensu tries to get all this into one place to make things a little easier than checking things one-by-one. The aim is to be more proactive and try to flag problems before they are even noticed by the people using Sensu, plugging directly into services like Slack or sending emails to flag potential issues before they end up becoming larger problems. Like others like Cloudera, Sensu builds its business around helping companies deploy this otherwise open source technology efficiently.

Sensu’s backstory starts as a consultancy for Hailey, which was focused on infrastructure and automation — especially as more and more companies moved to a hybrid cloud model that existed partially in some box somewhere on Azure or AWS. Starting off as an open source project is one way that he hopes to convince larger enterprises that might already be using similar tools to adopt a known entity rather than just giving some random startup the keys to maintaining their operations.

The monitoring space is still a competitive — and crowded — one. There are tools like AppDynamics or New Relic, but Hailey argues that Sensu can be competitive with those as they are very bundled while his startup helps companies piece together a more complete solution. For example, a company might need higher granularity in their reports, and Sensu aims to try to provide a robust toolkit for companies that have many disparate operations they need to keep online and running smoothly.

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Facebook Stories adds funky AR drawing and Instagram’s Boomerang

You’ll soon be able to draw on the world around you and shoot back-and-forth Instagram Boomerang GIFs with the Facebook Camera. Bringing additional creative tools to the Facebook Camera could make it a more popular place to shoot content and help the company compete with Snapchat.

“We wanted to give people an easy way to create with augmented reality and draw in the world around them” says John Barnett, a Facebook Camera Product Manager about the feature it calls “3D drawing”. It’s rolling out to users over the coming weeks. Matt Navarra first spotted the features.

With AR drawing, you can scribble on the world around you, then move your camera and see the markings stay in place. It’s a fun way to add graffiti that only exists inside your screen. You can add the drawings before or while you’re recording, allowing you to draw on something out of frame, then pan or unzoom to reveal it. Facebook will eventually add more brushes beyond the pastel gradient colors seen here.

Facebook tells me the technology understands the corners and objects in the room to create a 3D spec. Facebook could that use that to detect surfaces like walls and tables to wrap the drawing onto them. Currently, it only does that when it’s confident about the object recognition, such as in optimal light conditions.

Since drawing is a universal language, the feature could make AR easy to use for younger users and Internet novices. Facebook launched its AR effects at F8 last April, and has recently added AR tracker target experiences that are triggered by real-world posters or QR codes. It all started with the company acquiring fledgling AR masks startup MSQRD in 2016.

Facebook added looping GIF creation to the Facebook Camera a year ago, but those can feel a bit jarring since they start back at the beginning once they end. Some users no longer have that GIF option, so it’s potentially being replaced by Boomerang’s established brand and more silky back-and-forth animated video clips. Facebook confirms that this feature is now rolling out to the Facebook Camera.

As we reported last week, Facebook is determined to make Stories work. Despite the criticism of it being a rip-off of Snapchat and redundant given Instagram Stories, Facebook is trying new ways to make Stories more popular an accessible. That includes tests of Stories as the default destination for content shot with the Facebook Camera, showing bigger tiles with previews of Stories atop the News Feed, and showing a camera and camera roll preview window when you open the status composer. Those, combined with these new features, could give Facebook Stories a boost in utility and visibility.

Facebook believes social media is on an inevitable journey from text to photos to videos to Stories equipped with augmented reality. Since Snapchat refused its acquisition offers, Facebook is now on a quest to evolve into an AR company rather than having to buy a big one. It remains to be seen whether users think AR is a novelty or a core utility, but Facebook won’t wait to find out.

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Subscription biller Zuora soars 43% following IPO

Subscription biller Zuora was well-received by stock market investors on Thursday, following its public debut. After pricing its IPO at $14 and raising $154 million, the company closed at $20, valuing the company around $2 billion.

It was also much higher than expected. The company said in its filings that it planned to price its shares between $9 and $11, before it raised that range to $11 to $13.

Founder and CEO Tien Tzuo told TechCrunch that he believes “a bet on us is really a bet on an entire shift to a new business model, to a subscription economy.” He is optimistic that subscriptions are the “business model of the future.”

Zuora sees itself as an early pioneer in a growing category. The company believes that more businesses will shift their business models to subscriptions, across sectors like media and entertainment, transportation, publishing, industrial goods and retail.

It helps its 950 customers manage subscriptions, including billing and revenue recognition. Zuora touts that it has 15 of the Fortune 100 businesses as clients.

Zuora’s revenue for its fiscal 2018 year was $167.9 million. This was up from $113 million in 2017 and $92.2 million the year before. Losses remained constant in this time frame, from $48.2 million in 2016 to $47.2 million in 2018.

“We have a history of net losses, anticipate increasing our operating expenses in the future, and may not achieve or sustain profitability,” warned the requisite risk factors section of the filing.

It also acknowledged a competitive landscape. Oracle and SAP are amongst the companies offering software in the ERP (enterprise resource planning) category. It also competes with other startups like Chargebee and Chargify.

The largest shareholders are Benchmark, which owned 11.1 percent prior to the IPO. Founder and CEO Tien Tzuo owned 10.2 percent. Others with a significant stake included Wellington Management, Shasta Ventures, Tenaya Capital and Redpoint.

The San Mateo, Calif.-based company previously raised more than $240 million, dating back to 2007.

Zuora listed on the New York Stock Exchange, under the ticker “ZUO.” Goldman Sachs and Morgan Stanley worked as lead underwriters on the deal. Fenwick & West and Wilson Sonsini served as counsel.

After a slow start to the year for tech IPOs, there has been a flurry of activity in recent weeks. Dropbox and Spotify were amongst the recent public debuts. We also have DocuSign, Pivotal and Smartsheet on the horizon.

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Watch the new trailer for the 15-year Rooster Teeth documentary

Being an online video star might seem cool or even glamorous these days, but Burnie Burns, co-founder and chief creative officer at Rooster Teeth, can remember when that wasn’t the case.

Rooster Teeth, which is behind the popular web series Red vs. Blue, is turning 15 years old this month. (The studio was acquired by Fullscreen a few years ago.) And Burns has been looking back at its history as part of the upcoming documentary Why We’re Here: 15 Years of Rooster Teeth.

He acknowledged that nowadays, anyone in the business is competing with “an enormous noise,” but at the same time, Burns said, “There’s the misconception that because no one was doing this when we got started, that made it easier. It’s really difficult to go into a place where no one else is and no one else cares what’s going on there.”

He recalled that in the studio’s early days, he would tell people about his work and realize, “Home video was a dirty word, and online video was beneath it.”

The documentary was directed by Mat Hames, and it allows Burns and his co-founder Matt Hullum to revisit many of their old haunts, including the bedroom where Burns uploaded the first episode of Red vs. Blue, “Why Are We Here?”

For Rooster Teeth fans, Burns promised footage that has never been seen before, as well as a recounting of the history that’s as honest as they could make it without violating nondisclosure agreements.

“I think we almost have an obligation to show what things were like back then,” he said.

And even if you haven’t been following the company through the years, Burns said the film provides an overview of how online video has evolved. After all, when Red vs. Blue launched, YouTube didn’t exist, and Burns said the documentary process has helped him understand “how short the memory of the Internet is.”

Rooster Teeth published a teaser for Why We’re Here last week, and today it’s launching the official trailer. The documentary will be released exclusively on the studio’s subscription video service FIRST on April 20.

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Are hardware makers doing enough to keep Android phones secure?

For all the good of Android’s open-source approach, one of the clear and consistent downsides is that the onus to issue software updates falls on the manufacturer. That can mean frustration for those waiting for the latest and greatest feature updates — and in some cases, it can put your phone at risk with delayed or missed security updates.

A pair of researchers at Security Research Labs recently shared a study with Wired highlighting some of these risks. The team’s findings are the result of testing 1,200 Android handsets from all the major manufacturers over the course of two years, examining whether manufacturers had offered the security patches as advertised.

According to SRL, missed security patches were discovered on a wide range of different handsets across manufacturers. Sony and Samsung were both flagged as having missed some security patches — in some cases in spite of reporting that they were up to date. “It’s almost impossible for the user to know which patches are actually installed,” one of the researchers told the site.

Xiaomi, Nokia, HTC, Motorola and LG all made the list, as well, while TCL and ZTE fared the worst in the study, with, on average, not having installed more than four of the patches they claimed to have installed on a given device.

In a statement provided to TechCrunch, Google pointed to the importance of various different means used to secure the Android ecosystem. The company believes that the SRL findings might not tell the full story when it comes to keeping devices secure.

“We would like to thank Karsten Nohl and Jakob Kell for their continued efforts to reinforce the security of the Android ecosystem,” the company writes. “We’re working with them to improve their detection mechanisms to account for situations where a device uses an alternate security update instead of the Google suggested security update. Security updates are one of many layers used to protect Android devices and users. Built-in platform protections, such as application sandboxing, and security services, such as Google Play Protect, are just as important. These layers of security—combined with the tremendous diversity of the Android ecosystem—contribute to the researchers’ conclusions that remote exploitation of Android devices remains challenging.” 

The company also pointed us to this year in review post, which sheds a bit more light on the matter.

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Arcade fame turns to infamy as Billy Mitchell’s record-setting Donkey Kong score is invalidated

The record-setting score that settled the Donkey Kong arcade rivalry, made famous by the documentary The King of Kong, has been invalidated by Twin Galaxies, the de facto arbiter of arcade world records. What’s more, Billy Mitchell, the occasionally controversial player who set the scores, has been permanently banned from consideration for future records.

It’s a huge upset that calls into question decades of history. Will other similarly disputed scores get the ax? Are any old-school arcade legends safe?

Before anything, it should be noted that although this sounds like kind of a random niche issue, the classic gaming scene is huge and millions follow it closely and take it very seriously. Breaking a high score on a 30-year-old game or shaving a quarter of a second off a record time can and will be celebrated as if the player has won an Olympic medal. One can never underestimate the size or sincerity of online communities. Cheating is, of course, not tolerated.

With that said, it’s worth considering that Billy Mitchell’s case is unique. He is undoubtedly a highly skilled player and has been setting records since the ’80s. But, as anyone who watched The King of Kong will have learned, he’s also a bit shady and his Donkey Kong acumen is far from established.

The issue is simply that despite having provided tapes of games setting records — including being the first to break a million in Donkey Kong — no one has seen him play like that in person.

That may sound like a red flag, but in the speedrunning and record-setting community, a great deal of practice happens alone, in an empty arcade, or otherwise with no credible witnesses (though Twitch has changed that). You could set a world record while in the zone after getting home from work, but it doesn’t count unless it’s reviewed and accredited by a neutral party. Twin Galaxies is the largest organization performing that duty, and they take it very seriously indeed.

The final score on Mitchell’s disputed tape showing in The King of Kong (the leading 1 is omitted because the digits roll over when you reach a million).

You may remember that at the end of The King of Kong, Mitchell reestablishes his supremacy over plucky local kid Steve Wiebe with a “direct capture” tape of a run scoring 1,047,200 points. There are no witnesses to this game. Shortly after this, he also recorded a 1,050,200 score, also not witnessed. And just a week before being inducted into the International Video Game Hall of Fame in Iowa, he set records in both Donkey Kong (1,062,800) and Donkey Kong 2.

Now here’s where things get dicey (and nerdy).

Jeremy Young, aka Xelnia, put together the official two-part complaint on Twin Galaxies. For one part of it, he mentioned the suspicions some already had regarding the evidence set forth of the last and highest score Mitchell set, in an arcade called Boomers.

As others had already pointed out, not only are the run itself and resulting score not shown in the video, but the referee is among the least reliable, and the timeline is unclear, among other things. Most damning, however, it is clear that when Mitchell’s confederate ostentatiously “swaps out” the Donkey Kong board (so it can be verified elsewhere) for a Donkey Kong Jr. one (which Mitchell supposedly later set a record on), both PCBs were in fact the latter.

Twin Galaxies user Robert.F explained the differences in charming internet forum argot:

to a UN-trained train eye Dk and DKjr look the same and in fact they are vary similar, except for a few noticeable differences…the DK pcb has white text on the pcb and the Dk jr has banana yellow text printed on the board ,, the DK pcb is 1/2 digital and 1/2 Analog sound and there is a adjustment pot on the dk pcb for the Analog sound`s, The Dk Jr board is fully digital and has no Analog sound adjustment pot in the exact same position on the dkjr board, and the 3rd noticeable differences and you will see; it if you review the video carefully Dk has the same ROM socket lay out and the same number of sockets as a Dkjr pcb ,, But DKjr has one of them ROM socket empty ,,,,,,

But these circumstantial issues could be explained as a bit of confusion in the moment, a misspoken word in their excitement, and so on. Fortunately, that wasn’t the extent of the evidence.

As you may know, emulators are a type of application made to run old software (like arcade games) as closely as possible to how it ran on the original hardware. MAME is by far the most complex and perhaps the best-known emulator; this amazing app can emulate everything from Donkey Kong to much more recent games with complex 3D graphics. Of course, MAME runs aren’t accepted for world records — you could easily manipulate the software or even the game data itself. Real arcade hardware is required.

But MAME isn’t perfect; there are tiny differences in how it displays graphics — things you wouldn’t notice unless you were watching a game frame by frame looking for them in particular.

Which is exactly what people started doing with Mitchell’s no-witnesses, only-on-video scores.

It turns out that the original Donkey Kong PCBs had a specific method of rendering a scene during graphics transitions called a “sliding door effect,” distinctive in the pattern of how pixels are updated. Careful inspection of Mitchell’s tapes showed not a sliding door, but instead a distinctive artifact of MAME emulation whereby the frame is rendered in chunks according to how the data is loaded from memory.

You can see the similarity in the GIFs below, provided as evidence by Young.

First is footage of an actual machine taken at 60FPS. Note the diagonal “sliding door” that reveals the scene from the top left downwards:

Next, Mitchell’s 1,050,200 run:

Last, how MAME renders a similar scene:

See how the ladders come in all at once in that pattern, and there’s no sliding door? As you can tell, it’s something of a smoking gun. Certainly Twin Galaxies investigators thought so. In their conclusions, issued today on the forums, they wrote (emphasis theirs):

The taped Donkey Kong score performances of 1,047,200 (the King of Kong “tape”), 1,050,200 (the Mortgage Brokers score) that were historically used by Twin Galaxies to substantiate those scores and place them in the database were not produced by the direct feed output of an original unmodified Donkey Kong Arcade PCB.

They decline to go so far as saying they know it was MAME, but that’s a mere scruple — everyone understands it’s the most likely situation. Regardless, the very fact that Mitchell passed off non-authentic footage as real is more than enough to strike his scores and, as they also announce, ban him from further placement anywhere in the system.

Perhaps more importantly, Steve Wiebe, the underdog challenger in The King of Kong, has been elevated to become the first player to actually hit a million points in the game. Better late than never! Belated congratulations to Wiebe. (Wikipedia has already been updated.)

Mitchell, on the other hand, has remained out of sight during the investigation that has gone on these last few months, and has essentially been ruined for good in the arcade world. Even if he were to set a world record today (and existing record holders doubt he has the skill to do so based on reviewing his play), it would be tainted by years of proven deception. The community won’t forgive him.

And that’s the worry others are voicing: Will the investigators come for other scores that for years have been venerated but have not been verified as strictly as modern records are? Will, for example, any score without an accredited witness or reliable recording be removed from the lists?

In their decision, Twin Galaxies’ authorities write:

Twin Galaxies is dedicated to absolutely rooting out invalid scores from our historic database wherever we find them.

Our methodic approach has allowed many things to surface, not only related to this specific score, but other scores as well as some previously never-before-discussed video game related history.

We must repeat, the truth is the priority. That is the concern. Whatever it takes.

This dispute is closed, and a controversial but nevertheless legendary gaming figure covered in shame (or he should be if he has any). Who will be next? Regardless of who falls, the community will no doubt continue to thrive; the passion for these old games is undying and, as new generations have shown, is not limited to an aging cohort of Gen-Xers striving to extend a bygone era of glory (though admittedly they are a big part of it).

If this strange saga interested you anywhere near as much as it interested me, go ahead and dive in. You might find you have a new hobby. Just don’t try to fake it. And by the way, the current top score in Donkey Kong is 1,247,700, set just two months ago by Robbie Lakeman. Good luck.

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Uber expands privacy settlement with FTC

Uber is expanding the proposed settlement it made with the Federal Trade Commission last August pertaining to data mishandling, privacy and security complaints that date back to 2014 and 2015. In August, Uber agreed to 20 years of privacy audits.

That proposed settlement happened prior to Uber’s disclosure of the massive 2016 data breach that affected some 57 million riders and drivers. Now, Uber will be subject to “additional requirements,” according to the FTC.

“After misleading consumers about its privacy and security practices, Uber compounded its misconduct by failing to inform the Commission that it suffered another data breach in 2016 while the Commission was investigating the company’s strikingly similar 2014 breach,” Acting FTC Chairman Maureen K. Ohlhausen said in a statement. “The strengthened provisions of the expanded settlement are designed to ensure that Uber does not engage in similar misconduct in the future.”

As part of the revised settlement, Uber may be subject to civil penalties if it fails to notify the FTC of future privacy breaches. Uber must also submit all third-party audits of the company’s privacy program, as well as retain records pertaining to bug bounty programs that relate to unauthorized access to consumer data.

“My first week at Uber was the week we disclosed the 2016 breach. When Dara Khosrowshahi joined the company, he committed on behalf of every Uber employee that we would learn from our mistakes, change the way we did business and put integrity at the core of every decision we made,” Uber Chief Legal Officer Tony West said in a statement to TechCrunch. “Since then we have moved quickly to do just that by taking responsibility for what happened. I am pleased that just a few months after announcing this incident, we have reached a speedy resolution with the FTC that holds Uber accountable for the mistakes of the past by imposing new requirements that reasonably fit the facts.”

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