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This Week in Apps: Apple’s vaping app ban, Disney+ gets installed, apps gear up for Black Friday

Welcome back to This Week in Apps, the Extra Crunch series that recaps the latest OS news, the applications they support, and the money that flows through it all. What are developers talking about? What do app publishers and marketers need to know? How are politics impacting the App Store and app businesses? And which apps are everyone using?

As mid-November rolls around, we’re looking at a few big stories, including Apple’s decision to ban an entire category of apps due to health concerns, the launch of Disney+ from an app perspective, what Black Friday will mean for e-commerce apps, and more.

Fast Facts

With Disney+’s huge launch (10+ million users!) on everyone’s minds, it’s time to think about what these streaming newcomers mean for the overall landscape and the app stores. In this case, it seems that Disney+’s user base was highly mobile. The company itself announced more than 10 million users, while data on the Disney+ app’s first few days indicates it now has over 10 million downloads. It seems like consumers definitely want to take their new streaming service with them everywhere they go.

  • In 2020, App Annie forecasts consumers will spend more than 674 billion hours in the Entertainment and Video Player and Editor categories worldwide on Android phones, up from an expected 558 billion hours in 2019. Thanks to Disney+, Apple TV+ and soon, HBO Max, Peacock and Quibi, to making the landscape both richer and more complicated.
  • On its launch day, Disney+ hit #1 by iPhone Overall downloads at 8 AM in the U.S. and at 11 AM in Canada — an indication of the ability that strong IP has can really excite consumers to come out in droves. (Unfortunately, that led to some launch day glitches, too.)
  • Apptopia estimated Disney+ was downloaded 3.2 million times in its first 24 hours. The firm also estimated users collectively spent 1.3 million hours watching Disney+ on day one — ahead of Amazon Prime Video, but well behind Netflix.

  • Sensor Tower waited to collect a little more data instead. It found that the Disney+ app was installed approximately 9.6 million times in all available markets (the U.S., Canada, and the Netherlands), since its U.S. launch on Tuesday, Nov. 12. For comparison’s sake, HBO Now’s U.S. launch only saw 180,000 installs in its first three days — or 2% of the Disney+ total. Combined with the test period installs in the Netherlands, the app has now been installed over 10 million times.
  • The hype around Disney+ has had a halo effect. Hulu and ESPN, which were offered in a bundle with Disney+, also grew as a result of the Disney+ launch. Sensor Tower found combined users of the apps in the U.S. and Canada were up 30% in the past week over the week prior.

Headlines

Apple removed all vaping apps from the App Store, citing CDC health concerns

The CDC says 42 people have died due to vaping product use and thousands more cases of lung injuries have been reported from 49 states. Now, Apple has made the controversial decision to remove all 181 vaping-related apps from its App Store — including those with news and information about vaping and even vaping-related games, Axios reported this week.

Some say Apple is helping to protect kids and teens by limiting their exposure to e-cigarette and vaping products, which are being used to addict a younger generation to nicotine and cause serious disease. Others argue that Apple is over-reaching. After all, many of the lung illnesses involve people who were vaping illegally obtained THC, studies indicated.

This isn’t the first time Apple has banned a category of apps because of what appear to be moral concerns. The company in the past had booted apps that promoted weed or depicted gun violence, for example. In the case of vaping apps, Apple cited the public health crisis and youth epidemic as contributing factors, telling Axios that:

We take great care to curate the App Store as a trusted place for customers, particularly youth, to download apps. We’re constantly evaluating apps, and consulting the latest evidence, to determine risks to users’ health and well-being. Recently, experts ranging from the CDC to the American Heart Association have attributed a variety of lung injuries and fatalities to e-cigarette and vaping products, going so far as to call the spread of these devices a public health crisis and a youth epidemic. We agree, and we’ve updated our App Store Review Guidelines to reflect that apps encouraging or facilitating the use of these products are not permitted. As of today, these apps are no longer available to download.

Existing users will still be able to use their apps, but new users will not be able to download the banned apps going forward.

Minecraft Earth arrives 

Minecraft Earth launched early last week across 9 countries on both Android and iOS and now it’s come to the U.S., Canada, the U.K., and several other markets. Some expect the app will rival the success of the AR breakout hit, Pokémon Go, which was thought at the time to be the precursor to a new wave of massive AR gaming titles. But in reality, that didn’t happen. The highly anticipated follow-up from Niantic, Harry Potter: Wizards Unite didn’t come close to competing with its predecessor, generating $12 million in its first month, compared with Pokémon Go’s first-month earnings of $300 million. With Minecraft Earth now sitting at No. 2 (c’mon, you can’t unseat Disney+) on the U.S. App Store, it seems there’s potential for another AR kingpin.

App Annie releases a user acquisition playbook

A top name in App Store intelligence, App Annie this week released a new how-to handbook focused on user acquisition strategies on mobile. Sure the free download is just a bit of lead gen for App Annie, but the guide promises to fill you in on all you need to know to be successful in acquiring mobile users. The playbook’s arrival follows App Annie’s acquisition of adtech insights firm Libring this fall, as it expands to cover more aspects of running an app business. Just as important as rankings and downloads are the very real costs associated with running an app business — including the cost of acquiring users.

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Why Salesforce is moving Marketing Cloud to Microsoft Azure

When Salesforce announced this week that it was moving Marketing Cloud to Microsoft Azure, it was easy to see this as another case of wacky enterprise partnerships. But there had to be sound business reasons why the partnership came together, rather than going with AWS or Google Cloud Platform, both of which are also Salesforce partners in other contexts.

If you ask Salesforce, it says it was ultimately because of compatibility with Microsoft SQL.

“Salesforce chose Azure because it is a trusted platform with a global footprint, multi-layered security approach, robust disaster recovery strategy with auto failover, automatic updates and more,” a Salesforce spokesperson told TechCrunch. “Marketing Cloud also has a long standing relationship with Microsoft SQL which makes the transition to SQL on Azure a natural decision.”

Except for the SQL part, Microsoft’s chief rivals at AWS and Google Cloud Platform also provide those benefits. In fact, each of those reasons cited by the spokesperson — with the exception of SQL — are all part of the general cloud infrastructure value proposition that all the major cloud vendors provide.

There’s probably more to it than simply compatibility. There is also a long-standing rivalry between the two companies, and why in spite of their competition, they continue to make deals like this in the spirit of co-opetition. We spoke to a few industry experts to get their take on the deal to find out why these two seeming rivals decided to come together.

Retailer’s dilemma

Tony Byrne, founder and principal analyst at Real Story Group, thinks it could be related to the fact it’s a marketing tool and some customers may be wary about hosting their businesses on AWS while competing with Amazon on the retail side. This is a common argument for why retail customers in particular are more likely to go with Microsoft or Google over AWS.

“Salesforce Marketing Cloud tends to target B2C enterprises, so the choice of Azure makes sense in one context where some B2C firms are wary of Amazon for competitive reasons. But I’d also imagine there’s more to the decision than that,” Byrne said.

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Daily Crunch: TikTok starts experimenting with commerce

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 9am Pacific, you can subscribe here.

1. TikTok tests social commerce

The short-form video app said it’s allowing some users to add links to e-commerce sites (or any other destination) to their profile, while also offering creators the ability to easily send their viewers to shopping websites.

On their own, these changes might not sound that dramatic, and parent company ByteDance characterizes them as experiments. But it could eventually lead TikTok to become a major force in commerce — and to follow the lead of Instagram, where “link in bio” has become one of the most common promotional messages.

2. Despite bans, Giphy still hosts self-harm, hate speech and child sex abuse content

A new report from Israeli online child protection startup L1ght  has uncovered a host of toxic content hiding within the popular GIF-sharing community, including illegal child abuse content, depictions of rape and other toxic imagery associated with topics like white supremacy and hate speech.

3. Lyft is ceasing scooter operations in six cities and laying off 20 employees

Lyft notified employees today that it’s pulling its scooters from six markets: Nashville, San Antonio, Atlanta, the Phoenix area, Dallas and Columbus. A spokesperson told us, “We’re choosing to focus on the markets where we can have the biggest impact.”

4. Takeaways from Nvidia’s latest quarterly earnings

After yesterday’s earnings report, Wall Street seems to have barely budged on the stock price — everyone’s waiting for resolution on some of the key questions facing the company. (Extra Crunch membership required.)

5. Virgin Galactic begins ‘Astronaut Readiness Program’ for first paying customers

The program is being run out of the global headquarters of Under Armour, Virgin Galactic’s partner for its official astronaut uniforms. The training, with instruction from Chief Astronaut Instructor Beth Moses and Chief Pilot Dave Mackay, is required for all Virgin Galactic passengers.

6. AWS confirms reports it will challenge JEDI contract award to Microsoft

In a statement, an Amazon spokesperson suggested that there was possible bias in the selection process: “AWS is uniquely experienced and qualified to provide the critical technology the U.S. military needs, and remains committed to supporting the DoD’s modernization efforts.”

7. SoftBank Vision Fund’s Carolina Brochado is coming to Disrupt Berlin

At SoftBank’s Vision Fund, Brochado focuses on fintech, digital health and marketplace startups. Some of her past investments with both Atomico and SoftBank include LendInvest, Gympass, Hinge Health, Ontruck and Rekki.

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Three of Apple and Google’s former star chip designers launch NUVIA with $53M in series A funding

Silicon is apparently the new gold these days, or so VCs hope.

What was once a no-go zone for venture investors, who feared the long development lead times and high technical risk required for new entrants in the semiconductor field, has now turned into one of the hottest investment areas for enterprise and data VCs. Startups like Graphcore have reached unicorn status (after its $200 million series D a year ago) while Groq closed $52M from the likes of Chamath Palihapitiya of Social Capital fame and Cerebras raised $112 million in investment from Benchmark and others while announcing that it had produced the first trillion transistor chip (and who I profiled a bit this summer).

Today, we have another entrant with another great technical team at the helm, this time with a Santa Clara, CA-based startup called NUVIA. The company announced this morning that it has raised a $53 million series A venture round co-led by Capricorn Investment Group, Dell Technologies Capital (DTC), Mayfield, and WRVI Capital, with participation from Nepenthe LLC.

Despite only getting started earlier this year, the company currently has roughly 60 employees, 30 more at various stages of accepted offers, and the company may even crack 100 employees before the end of the year.

What’s happening here is a combination of trends in the compute industry. There has been an explosion in data and by extension, the data centers required to store all of that information, just as we have exponentially expanded our appetite for complex machine learning algorithms to crunch through all of those bits. Unfortunately, the growth in computation power is not keeping pace with our demands as Moore’s Law slows. Companies like Intel are hitting the limits of physics and our current know-how to continue to improve computational densities, opening the ground for new entrants and new approaches to the field.

Finding and building a dream team with a “chip” on their shoulder

There are two halves to the NUVIA story. First is the story of the company’s founders, which include John Bruno, Manu Gulati, and Gerard Williams III, who will be CEO. The three overlapped for a number of years at Apple, where they brought their diverse chip skillsets together to lead a variety of initiatives including Apple’s A-series of chips that power the iPhone and iPad. According to a press statement from the company, the founders have worked on a combined 20 chips across their careers and have received more than 100 patents for their work in silicon.

Gulati joined Apple in 2009 as a micro architect (or SoC architect) after a career at Broadcom, and a few months later, Williams joined the team as well. Gulati explained to me in an interview that, “So my job was kind of putting the chip together; his job was delivering the most important piece of IT that went into it, which is the CPU.” A few years later in around 2012, Bruno was poached from AMD and brought to Apple as well.

Gulati said that when Bruno joined, it was expected he would be a “silicon person” but his role quickly broadened to think more strategically about what the chipset of the iPhone and iPad should deliver to end users. “He really got into this realm of system-level stuff and competitive analysis and how do we stack up against other people and what’s happening in the industry,” he said. “So three very different technical backgrounds, but all three of us are very, very hands-on and, you know, just engineers at heart.”

Gulati would take an opportunity at Google in 2017 aimed broadly around the company’s mobile hardware, and he eventually pulled over Bruno from Apple to join him. The two eventually left Google earlier this year in a report first covered by The Information in May. For his part, Williams stayed at Apple for nearly a decade before leaving earlier this year in March.

The company is being stealthy about exactly what it is working on, which is typical in the silicon space because it can take years to design, manufacture, and get a product into market. That said, what’s interesting is that while the troika of founders all have a background in mobile chipsets, they are indeed focused on the data center broadly conceived (i.e. cloud computing), and specifically reading between the lines, to finding more energy-efficient ways that can combat the rising climate cost of machine learning workflows and computation-intensive processing.

Gulati told me that “for us, energy efficiency is kind of built into the way we think.”

The company’s CMO did tell me that the startup is building “a custom clean sheet designed from the ground up” and isn’t encumbered by legacy designs. In other words, the company is building its own custom core, but leaving its options open on whether it builds on top of ARM’s architecture (which is its intention today) or other architectures in the future.

Building an investor syndicate that’s willing to “chip” in

Outside of the founders, the other half of this NUVIA story is the collective of investors sitting around the table, all of whom not only have deep technical backgrounds, but also deep pockets who can handle the technical risk that comes with new silicon startups.

Capricorn specifically invested out of what it calls its Technology Impact Fund, which focuses on funding startups that use technology to make a positive impact on the world. Its portfolio according to a statement includes Tesla, Planet Labs, and Helion Energy.

Meanwhile, DTC is the venture wing of Dell Technologies and its associated companies, and brings a deep background in enterprise and data centers, particularly from the group’s server business like Dell EMC. Scott Darling, who leads DTC, is joining NUVIA’s board, although the company is not disclosing the board composition at this time. Navin Chaddha, an electrical engineer by training who leads Mayfield, has invested in companies like HashiCorp, Akamai, and SolarCity. Finally, WRVI has a long background in enterprise and semiconductor companies.

I chatted a bit with Darling of DTC about what he saw in this particular team and their vision for the data center. In addition to liking each founder individually, Darling felt the team as a whole was just very strong. “What’s most impressive is that if you look at them collectively, they have a skillset and breadth that’s also stunning,” he said.

He confirmed that the company is broadly working on data center products, but said the company is going to lie low on its specific strategy during product development. “No point in being specific, it just engenders immune reactions from other players so we’re just going to be a little quiet for a while,” he said.

He apologized for “sounding incredibly cryptic” but said that the investment thesis from his perspective for the product was that “the data center market is going to be receptive to technology evolutions that have occurred in places outside of the data center that’s going to allow us to deliver great products to the data center.”

Interpolating that statement a bit with the mobile chip backgrounds of the founders at Google and Apple, it seems evident that the extreme energy-to-performance constraints of mobile might find some use in the data center, particularly given the heightened concerns about power consumption and climate change among data center owners.

DTC has been a frequent investor in next-generation silicon, including joining the series A investment of Graphcore back in 2016. I asked Darling whether the firm was investing aggressively in the space or sort of taking a wait-and-see attitude, and he explained that the firm tries to keep a consistent volume of investments at the silicon level. “My philosophy on that is, it’s kind of an inverted pyramid. No, I’m not gonna do a ton of silicon plays. If you look at it, I’ve got five or six. I think of them as the foundations on which a bunch of other stuff gets built on top,” he explained. He noted that each investment in the space is “expensive” given the work required to design and field a product, and so these investments have to be carefully made with the intention of supporting the companies for the long haul.

That explanation was echoed by Gulati when I asked how he and his co-founders came to closing on this investor syndicate. Given the reputations of the three, they would have had easy access to any VC in the Valley. He said about the final investors:

They understood that putting something together like this is not going to be easy and it’s not for everybody … I think everybody understands that there’s an opportunity here. Actually capitalizing upon it and then building a team and executing on it is not something that just anybody could possibly take on. And similarly, it is not something that every investor could just possibly take on in my opinion. They themselves need to have a vision on their side and not just believe our story. And they need to strategically be willing to help and put in the money and be there for the long haul.

It may be a long haul, but Gulati noted that “on a day-to-day basis, it’s really awesome to have mostly friends you work with.” With perhaps 100 employees by the end of the year and tens of millions of dollars already in the bank, they have their war chest and their army ready to go. Now comes the fun (and hard) part as we learn how the chips fall.

Update: Changed the text to reflect that NUVIA is intending to build on top of ARM’s architecture, but isn’t a licensed ARM core.

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Ford’s Mustang Mach-E all-electric SUV revealed in leaked photos, prices and configurations

Ford is officially debuting its fully electric crossover SUV on Sunday, November 17 — but we got a look at the new Mach-E (which was just officially named yesterday) a couple of days early. The leak comes from Ford’s own website, as screenshotted for posterity by Jalopnick, and includes photos of most angles of the car, including the interior, as well as pricing and configuration details for the model variants available at launch.

The Mach-E will start at $43,895 U.S., before any state or tax incentives are applied (and that turns into $36,395 once you apply the maximum $7,500 federal tax credit). The “Select” trim Mach-E as configured at that price gets you 230 EPA-rated miles of range, either AWD or RWD (which presumably alters the price) and a 0-60MPH time in the mid five-second range.

Next up is the “Premium” trim starting at $50,600, again offering an AWD or RWD option, with 300 miles of estimated EPA-rated range, and that same mid five-second 0-60MPH time. The “California Route 1” model above that comes in only AWD, has that longer 300 miles of EPA range and promises a mid six-second 0-60MPH time. It’s a bit slower off the jump, but it’s “named for its cruise-worthy engineering,” so presumably it’s got a more luxe interior for long-distance highway scenic drives.

Next up is a $59,900 “First Edition,” which will be in limited availability and only at launch for the first batch of customers to reserve. It’s got AWD, a range of around 270 miles, a mid five-second 0-60MPH time and exclusive exterior color options, special scuff plates, brushed aluminum pedals and red brake callipers, as well as contrast-colored interior stitching. There’s a GT edition at the top end, with an MSRP starting at $60,500, that will manage to get a 0-60MPH time in the mid three-second range, so that’s clearly the peak performance options for thrill-seekers. Estimated EPA range on that one is around 230 miles.

In terms of looks, the Mustang Mach-E’s design won’t be a surprise to anyone who’s seen the camouflaged spy shots, or the teaser peeks officially released by Ford. It’s definitely got Mustang vibes, and looks a bit like a Mustang that has been lifted up with paneling extended down toward the road. It looks like a panorama roof is an option, and that hatchback will probably please a lot of small SUV fans. There’s also something funky going on with the door handles — the front ones appear very small and near the base of the door windows, while I’m not sure how exactly it works on the rear passenger doors based on these photos.

There’s also a panoramic sunroof at least as an option, and you can see the interior looks pretty blatantly Tesla -inspired, with a large vertical touchscreen taking up most of the center of the dash — albeit with something that looks like a large physical dial right at the base, instead of going for fully touch-only input. A second digital display appears to replace the instrument cluster behind the steering wheel.

Ford has since taken this down, as it’s hosting a splashy event on Sunday with Idris Elba in LA for the full official reveal. TechCrunch will be on site to bring you more photos and details around availability, customization options and more on the day.

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AWS confirms reports it will challenge JEDI contract award to Microsoft

Surely just about everyone was surprised when the Department of Defense named Microsoft as the winner of the decade long, $10 billion JEDI cloud contract last month, none more so than Amazon, the company everyone assumed all along would be the winner. Today the company confirmed earlier reports that it was challenging the contract award in the Court of Federal Claims.

The Federal Times broke this story.

In a statement, an Amazon spokesperson suggested that there was possible bias and issues in the selection process. “AWS is uniquely experienced and qualified to provide the critical technology the U.S. military needs, and remains committed to supporting the DoD’s modernization efforts. We also believe it’s critical for our country that the government and its elected leaders administer procurements objectively and in a manner that is free from political influence.

“Numerous aspects of the JEDI evaluation process contained clear deficiencies, errors, and unmistakable bias — and it’s important that these matters be examined and rectified,” an Amazon spokesperson told TechCrunch.

It’s certainly worth noting that the president has not hidden his disdain for Amazon CEO and founder Jeff Bezos, who also is owner of the Washington Post newspaper. As I wrote in Even after Microsoft wins, JEDI saga could drag on:

Amazon, for instance, could point to Jim Mattis’ book where he wrote that the president told the then Defense Secretary to “screw Bezos out of that $10 billion contract.” Mattis says he refused, saying he would go by the book, but it certainly leaves the door open to a conflict question.

Oracle also filed a number of protests throughout the process including one with the Government Accountability Office that was later rejected. It also went to court and the case was dismissed. All of the protests claimed that the process favored Amazon. The end result proved it didn’t.

The president interjected himself in the decision process in August, asking the Defense secretary, Mark T. Esper to investigate once again if the procurement process somehow favored Amazon, and the week the contract was awarded, the White House canceled its subscription to the Washington Post.

In October, the decision finally came and the DOD chose Microsoft . Now Amazon is filing a challenge in federal Court, and the JEDI saga really ain’t over until it’s over.

 

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Homeis adds community tools for Mexican immigrants

Homeis, a startup building networking tools for immigrant communities, officially launched its community for Mexican immigrants this week.

Co-founder and CEO Ran Harnevo (pictured above) previously founded video syndication company 5min, which was acquired by AOL, where he served as the global president of the company’s video division. (AOL also bought TechCrunch and then was acquired, in turn, by Verizon.)

The company’s goal is to create networks that are focused on the needs of specific immigrant communities — starting with Israeli, French and Indian Communities — helping them find things like new friends and job opportunities.

In the launch announcement, the startup says that its Mexican community will “address specific pain points for Mexican immigrants,” for example by helping them find trusted immigration lawyers.

And if building tools for immigrants seems like a political act in 2019, that’s something Harnevo (an Israeli immigrant himself) seems to be embracing.

“It’s our personal mission to empower immigrants, and that has never been more critical,” he said in a statement. “The increased tension and hostility towards immigration has made it clear that tech companies must step up. With the launch of our Mexican community, we are able to share our technology and resources with the largest immigrant community in the U.S. As immigrants ourselves, that means a lot to us.”

Homeis raised a $12 million Series A led by Canaan Partners and Spark Capital earlier this year.

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Microsoft announces its xCloud streaming service and a truckload of new games are coming in 2020

Microsoft has announced a vague intention to launch its xCloud game streaming service sometime in 2020, and dropped a double handful of new titles that will arrive on it and the existing Game Pass subscription. It seems that next year will indeed be the opening battle in the streaming wars to come.

The announcements came at XO19, the company’s Xbox-focused event, which is taking place in London. They seem calculated to take the wind out of Google’s sails; the opening lineup of Stadia, Google’s entry in the game streaming world, was finalized earlier this week and is rather bare bones. Microsoft is hoping Google’s first-mover advantage will be nullified by the expected confusion around payments, features, titles and other issues Stadia is still working out.

Game Pass is currently in a preview period on PC. Although Microsoft did not supply a hard release date, saying only that 2020 is the plan. That year will also bring Windows 10 support, PC game streaming and potentially an expansion beyond Android for mobile streaming.

The price, too, is TBA — Google’s proposition is remarkably complicated, and it will take time for consumers to figure out what they’re willing to pay for, what the real costs are, and so on. So Microsoft is probably going to wait and see here.

But what is known about xCloud is that gamers will get access to all the games currently available on Microsoft’s Game Pass subscription — well over a hundred PC and console titles right now, with more being added regularly. That makes it easier to commit to for a lot of gamers.

New controllers will be supported soon, including Sony’s DualShock 4, which comes with the PlayStation 4; that’s a real olive branch to Microsoft’s arch-rival. And new countries will be brought into the fold soon, as well: Canada, India, Japan and “Western Europe.”

Game Pass will also be receiving dozens of titles old and new throughout 2020, including Final Fantasy 7 through 15, Darksiders 3, Flight Simulator and a bunch of newly announced games such as Obsidian’s new “Honey, I Shrunk the Survival Game” title, “Grounded.”

Several brand new properties and gameplay for known but unreleased games were also teased at XO19. Check them out below:

Everwild is a new IP from Rare that appears to involve a lot of sneaking around a lush forest and either avoiding or interacting with fantastical animals. It’s still early days, but the team wants to create “new ways to play in a natural and magical world.” I’m just here for the solar-powered dino-deer.

Tell Me Why is a new one from Dontnod, makers of Life Is Strange starring a pair of twins with some kind of paranormal connection. Notably one of the twins is transgender, not common among game protagonists, and the company worked with GLAAD to make sure the representation of the character is genuine.

Age of Empires IV got an only slightly satisfying gameplay reveal. Real-time strategy buffs will want more than this, but no doubt they’re excited to see this venerable franchise getting a modern sequel.

You can catch up on the rest over at the Xbox official blog post.

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Recycling robots raise millions from top venture firms to rescue an industry in turmoil

The problem of how to find the potential treasure trove hidden in millions of pounds of trash is getting a high-tech answer as investors funnel $16 million into the recycling robots built by Denver-based AMP Robotics.

For recyclers, the commercialization of robots tackling industry problems couldn’t come at a better time. Their once-stable business has been turned on its head by trade wars and low unemployment.

Recycling businesses used to be able to rely on China to buy up any waste stream (no matter the quality of the material). However, about two years ago, China decided it would no longer serve as the world’s garbage dump and put strict standards in place for the kinds of raw materials it would be willing to receive from other countries. The result has been higher costs at recycling facilities, which actually are now required to sort their garbage more effectively.

At the same time, low unemployment rates are putting the squeeze on labor availability at facilities where humans are basically required to hand-sort garbage into recyclable materials and trash.

Given the economic reality, recyclers are turning to AMP’s technology — a combination of computer vision, machine learning and robotic automation to improve efficiencies at their facilities.

trash cans

Photo courtesy of Flickr/Abulla Al Muhairi

That’s what attracted Sequoia Capital to lead the company’s latest investment round — a $16 million Series A investment the company will use to expand its manufacturing capacity and boost growth as it looks to expand into international markets.

“We are excited to partner with AMP because their technology is changing the economics of the recycling
industry,” said Shaun Maguire, partner at Sequoia, in a statement. “Over the last few years, the industry has had their margins squeezed by labor shortages and low commodity prices. The end result is an industry proactively searching for cost-saving alternatives and added opportunities to increase revenue by capturing more high-value recyclables, and AMP is emerging as the leading solution.”

The funding will be used to “broaden the scope of what we’re going after,” says chief executive Matanya Horowitz. Beyond reducing sorting costs and improving the quality of the materials that recycling facilities can ship to buyers, the company’s computer vision technologies can actually help identify branded packaging and be used by companies to improve their own product life cycle management.

“We can identify… whether it’s a Coke or Pepsi can or a Starbucks cup,” says Horowitz. “So that people can help design their product for circularity… we’re building out our reporting capabilities and that, to them, is something that is of high interest.”

That combination of robotics, computer vision and machine learning has potential applications beyond the recycling industry as well, according to Horowitz. Automotive scrap and construction waste are other areas where the company has seen interest for its combination of software and hardware.

Meanwhile, the core business of recycling is picking up. In October, the company completed the installation of 14 robots at Single Stream Recyclers in Florida. It’s the largest single deployment of robots in the recycling industry and the robots, which can sort and pick twice as fast as people with higher degrees of accuracy, are installed at sorting lines for plastics, cartons, fiber and metals, the company said.

AMP’s business has two separate revenue streams — a robotics as a service offering and a direct sales option — and the company has made other installations at sites in California, Colorado, Indiana, Minnesota, New York, Pennsylvania, Texas, Virginia and Wisconsin.

The traction the company is seeing in its core business was validating for early investors like BV, Closed Loop Partners, Congruent Ventures and Sidewalk Infrastructure Partners, the Alphabet subsidiary’s new spin-out that invests in technologies to support new infrastructure projects.

For Mike DeLucia, the Sidewalk Infrastructure Partners principal who led the company’s investment into AMP Robotics, the deal is indicative of where his firm will look to commit capital going forward.

“It’s a technology that enables physical assets to operate more efficiently,” he says. “Our goal is to find the technologies that enable really exciting infrastructure projects, back them and work with them to deliver projects in the physical world.”

Investors like DeLucia and Abe Yokell, from the investment firm Congruent Ventures, think that recycling is just the beginning. Applications abound for AMP Robotic’s machine learning and computer vision technologies in areas far beyond the recycling center.

“When you think about how technology is able to impact the built environment, one area is machine vision,” says Yokell. “[Machine learning] neural nets can apply to real-world environments, and that stuff has gotten cheaper and easier to deploy.”

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Spotify confirms it’s testing real-time lyrics synced to music

With the launch of iOS 13, Apple added perfectly timed live lyrics to its Apple Music app. Now Spotify may do the same. Several users in international markets are now seeing a similar synced lyrics feature in their Spotify mobile app, where lyrics scroll by in time with the music. The feature is powered by Musixmatch, according to the screenshots. Spotify confirmed to TechCrunch the feature is a test in a limited number of markets.

While Spotify didn’t confirm which regions have access, we’re seeing that users in Canada, Indonesia and Mexico appear to be among the test markets.

The feature sits beneath the playback controls where today, other enhancements like Behind the Lyrics or Storyline, currently appear. And users say they can also view the lyrics in a full-screen experience.

We were not able to duplicate the same experience here in the U.S., which indicates it’s still limited by geography.

Spotify kalian ada lirik nya tak?:”V
Ini tiba tiba ada:”V kaget gw:”V eh trnyta dari musixmatch:V pic.twitter.com/DFO54qFzuQ

— Aku sayang Wandireksen :(( (@notfndm) November 14, 2019

Bisa full screen juga

Terus ternyata dari musixmatch sepertiny mereka bekerjasm pic.twitter.com/EFqZom2Wmm

— 𝙉𝙤𝙧𝙖▯ (@lasttosleep) November 13, 2019

ahora spotify ha vuelto con ponerte los lyrics (gracias musicxmatch) y obvio lo más importante era hacer esto pic.twitter.com/Ip9goVs7SI

— mar crocs (@hijodeIaluna) November 14, 2019

Spotify had lyrics support on the desktop several years ago, but that feature was later removed. Since then, users have repeatedly asked when it would return. On Spotify’s user feedback community, for example, a request asking the company to “bring back lyrics” was upvoted more than 14,300 times. Spotify wouldn’t respond to user requests except to point users to its Genius integration, Behind the Lyrics.

Genius, however, doesn’t provide full lyrics. Instead, it’s a way to annotate tracks with a combination of lyrics and stories. While the feature can be both informative and entertaining, it’s not necessarily the experience people want when they’re trying to learn the words to a song.

Currently, neither Spotify’s desktop or mobile app has lyrics support, with the exception of Japan. It also regularly runs tests like this, so this is not a confirmation of a near-term launch.

Spotify’s decision to not make lyrics integration a priority has given Apple Music a competitive advantage in terms of its feature set. While it may not be a key selling point, per se — Spotify now has 113 million paying customers to Apple Music’s 60 million — it could help to retain users who don’t want to lose access by switching. Amazon has also capitalized on Spotify’s lack of lyrics with integrations of music and lyrics on Alexa devices.

Reached for comment, a Spotify spokesperson confirmed a synced lyrics experience is something it’s testing.

“We can confirm we are testing this feature in a small number of markets,” the spokesperson said. “At Spotify, we are always testing new products and experiences but have no further news to share at this time.”

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