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Intel Targets 35% Cost Reduction in Sales and Marketing Group, Bracing for Tough Times Ahead

Intel's Sales and Marketing Group (SMG) has announced a 35% reduction in costs as the company looks to streamline operations and adapt to challenging market conditions. The cuts, revealed during an all-hands meeting on August 5th, will impact both jobs and marketing expenses within the SMG. Intel has directed the group to "simplify programs end-to-end" by the end of the year, a directive that comes on the heels of the company's announcement that it would lay off 15% of its global workforce to save $10 billion in operating expenses. "We are becoming a simpler, leaner, and more agile company that's easier for partners and customers to work with while ensuring we focus our investments on areas where we see the greatest opportunities for innovation and growth," Intel said in a statement to CRN. The company emphasized that this restructuring is about "building a stronger Intel for the future," with partners integral to its plans.

The job cuts within the SMG are expected to target overlapping responsibilities, such as account managers and industry-focused teams, which can confuse customers navigating Intel's complex organization. Additionally, the company plans to significantly reduce its marketing budget and simplify programs, aiming to save at least $100 million in the latter half of 2024 and an additional $300 million in the first half of 2025. The impact will also be felt in Intel's market development fund (MDF), a crucial tool for supporting OEMs and other partners through events, training, and more. An ex-Intel executive warned that the MDF had become vital as the company's product leadership waned, allowing it to maintain valuable relationships with partners. As Intel navigates these changes, its partners are bracing for the impact, with one CEO describing the situation as everyone "hunkering down and just waiting to hear something." Another partner executive expressed concerns about Intel's ability to maintain the level of service and support its customers have come to expect.

AMD Ryzen 9 9900X Benchmarked in Geekbench 6, Beats Intel's Best in Single-Core Score

As AMD prepares to roll out its next-generation Ryzen 9000 series of CPUs based on Zen 5 architecture, we are starting to see some systems being tested by third-party OEMs and system integrators. Today, we have Geekbench 6 scores of the Ryzen 9 9900X CPU, and the 12-core, 24-thread processor that has demonstrated impressive performance gains. Boasting a base clock of 4.4 GHz and a boost clock of up to 5.6 GHz, the CPU features only 120 W TDP, a significant reduction from the previous 170 W of the previous generation. In Geekbench 6 tests, the Ryzen 9 9900X achieved a single-core score of 3,401 and a multicore score of 19,756.

These results place it ahead of Intel's current flagship Core i9-14900KS, which scored 3,189 points in single-core performance. Regarding multicore tasks, the i9-14900K scored 21,890 points, still higher than AMD's upcoming 12-core SKU. The benchmark of AMD's CPU was conducted on an ASUS ROG Crosshair X670E Gene motherboard with 32 GB of DDR5 memory. As anticipation builds for the official release, these early benchmarks suggest that AMD will deliver a compelling product that balances high performance with improved energy efficiency. The top tier models will still carry a 170 W TDP, while some high-end and middle-end SKUs get a TDP reduction like the Ryzen 7 9700X and Ryzen 5 9600X dial down to 65 W, decreased from 105 W in their previous iterations.

Respawn Entertainment Reportedly Prototyping New Titanfall IP

Electronic Arts revealed a workforce reduction program last week—reportedly impacting around 670 employees—alongside announcements regarding a number of major development project cancellations and reassignments. Laura Miele, President of EA Entertainment and Technology, disclosed that Respawn Entertainment's mysterious "Star Wars FPS Action game" had been axed, with staffers moving onto "new projects based on our owned brands" instead of licensed material. Industry insider reports suggested that an internal Respawn team—not assigned to a "Star Wars: Jedi" sequel—had started work on a Mandalorian/bounty hunter-themed first-person shooter IP. The official announcement of a renewed focus on Respawn's "rich library of owned brands" has generated plenty of internet speculation—Titanfall franchise fans have long demanded a proper third entry in the series. Studio boss, Vince Zampella, has teased revisits in the past—an Axios interview revealed that veteran Titanfall game director, Steve Fukuda, was incubating "something new" with a very small skunkworks-type team.

Earlier this week, Giant Bomb's Jeff Grubb addressed rumored goings-on at Respawn. His "Game Mess Mornings 03/04/24" videocast—co-hosted by Emma Fyffe—included a segment dedicated to EA's adjusted development strategies. Grubb reiterated insider information about "Titanfall Legends" getting canned early on last year—allegedly a single-player Apex/Titanfall crossover experience. Giant Bomb's News Editor has reached out to his network of moles—he shared this inside info during Monday's broadcast: "They're not making Titanfall 3. They just straight up aren't. They do have another team that has been kicking around a project that is very early. There's been a very small team in the prototyping phase and now they're going to go to wider. This is a real project now, but still in the prototyping phase. This game, as it stands today, as far as I understand, is a Titanfall game. It's in the Titanfall universe. But everyone I talk to keeps saying, don't get in your mind that it's Titanfall 3, a game with online multiplayer and a single player campaign."

Sony Announces Layoff of 900 PlayStation Employees, London Studio Shuttered

Jim Ryan—President & CEO, Sony Interactive Entertainment—revealed a sobering restructuring plan earlier today: "The PlayStation community means everything to us, so I felt it was important to update you on a difficult day at our company. We have made the extremely hard decision to announce our plan to commence a reduction of our overall headcount globally by about 8% or about 900 people, subject to local law and consultation processes. Employees across the globe, including our studios, are impacted." Ryan's full email—addressed to the entire Sony Interactive Entertainment workforce—can be found here. It reveals that company leadership has decided to close its PlayStation London Studio—the South East UK team is/was reportedly working on an announced "PS5 online game." Microsoft revealed a larger scale layoff program late last month—affecting 1900 employees—albeit without shuttering any major development studios. A number of its California-based teams are in the process of ditching "traditional" office locations (including a former aircraft hangar), and are moving to a work from home (WFH) model.

The SIE chief believes that current circumstances are not sustainable: "These are incredibly talented people who have been part of our success, and we are very grateful for their contributions. However, the industry has changed immensely, and we need to future ready ourselves to set the business up for what lies ahead. We need to deliver on expectations from developers and gamers and continue to propel future technology in gaming, so we took a step back to ensure we are set up to continue bringing the best gaming experiences to the community." His email outlines an "impact for employees across all SIE regions—Americas, EMEA, Japan, and APAC," with reductions affecting native development teams and Firesprite, a Liverpool, UK-based studio (founded by former Psygnosis veterans). Hermen Hulst, Head of PlayStation Studios, also posted a blog entry on the subject of SIE global layoffs—he confirmed a number of reductions and project cancellations.

NVIDIA GeForce RTX 4080 SUPER FE Sports Fewer Power Phases Than Non-SUPER Model

A video review has highlighted some curious internal changes on the NVIDIA GeForce RTX 4080 SUPER Founders Edition graphics card—Geekerwan has discovered that the board design has been "updated" to a small degree, when cross examined with the non-SUPER variant. Team Green engineers have chosen to decrease the number of phases from 13 to 11, while the memory phase count goes from 3 down to 2. HXL (@9550pro) TLDR-ed the situation on social media: "4080 Super FE vs 4080 FE: Core: -2 phase & VRAM: -1 phase." Tech experts have also noticed that the new SUPER FE's board does not have a phase near to its power connector. VideoCardz found these changes to be a little bit odd, considering that the card arrives with faster memory and a increased core count.

Geekerwan reckons that NVIDIA has implemented these internal adjustments in an effort to reduce power consumption in gaming scenarios. The official comparison table confirms this ambition—in the "Average Gaming Power" category we see the GeForce RTX 4080 SUPER target 246 W, and GeForce RTX 4080 (non-SUPER) aim for 251 W. The reviewer notes that their ASUS ROG STRIX RTX 4080 SUPER GAMING sample card features the same power layout as its non-SUPER sibling. They believe that NVIDIA's Founders Edition is the only model bearing an adjusted phase tally—while Team Green's board partners have simply rolled out the previous RTX 4080 layout.

Microsoft Lays Off 1900 Activision Blizzard, ZeniMax & Xbox Employees

The Verge has obtained an internal Microsoft memo that outlines a comprehensive reduction of headcounts across a number of Xbox Game Studios departments. Microsoft's gaming division has fought tooth and nail to complete their takeover of the highly prized (~$69 billion) Activision Blizzard + King group, yet this freshly acquired operation is set suffer the most. Microsoft Gaming CEO—Phil Spencer—was tasked with delivering some unfortunate news to an unlucky 8% of the current workforce: "It's been a little over three months since the Activision, Blizzard, and King teams joined Microsoft. As we move forward in 2024, the leadership of Microsoft Gaming and Activision Blizzard is committed to aligning on a strategy and an execution plan with a sustainable cost structure that will support the whole of our growing business. Together, we've set priorities, identified areas of overlap, and ensured that we're all aligned on the best opportunities for growth."

He continued: "As part of this process, we have made the painful decision to reduce the size of our gaming workforce by approximately 1900 roles out of the 22,000 people on our team. The Gaming Leadership Team and I are committed to navigating this process as thoughtfully as possible. The people who are directly impacted by these reductions have all played an important part in the success of Activision Blizzard, ZeniMax and the Xbox teams, and they should be proud of everything they've accomplished here. We are grateful for all of the creativity, passion and dedication they have brought to our games, our players and our colleagues. We will provide our full support to those who are impacted during the transition, including severance benefits informed by local employment laws. Those whose roles will be impacted will be notified, and we ask that you please treat your departing colleagues with the respect and compassion that is consistent with our values."

Possible NVIDIA GeForce RTX 3050 6 GB Edition Specifications Appear

Alleged full specifications leaked for NVIDIA's upcoming GeForce RTX 3050 6 GB graphics card show extensive reductions beyond merely reducing memory size versus the 8 GB model. If accurate, performance could lag the existing RTX 3050 8 GB SKU by up to 25%, making it weaker competition even for AMD's budget RX 6500 XT. Previous rumors suggested only capacity and bandwidth differences on a partially disabled memory bus between 3050 variants, which would reduce the memory to 6 GB and 96-bit bus, from 8 GB and 128-bit bus.. But leaked specs indicate CUDA core counts, clock speeds, and TDP all see cuts for the upcoming 6 GB version. With 18 SMs and 2304 cores rather than 20 SMs and 2560 cores at lower base and boost frequencies, the impact looks more severe than expected. A 70 W TDP does allow passive cooling but hurts performance versus the 3050 8 GB's 130 W design.

Some napkin math suggests the 3050 6 GB could deliver only 75% of its elder sibling's frame rates, putting it more in line with the entry-level 6500 XT. While having 50% more VRAM helps, dramatic core and clock downgrades counteract that memory advantage. According to rumors, the RTX 3050 6 GB is set to launch in February, bringing lower-end Ampere to even more budget-focused builders. But with specifications seemingly hobbled beyond just capacity, its real-world gaming value remains to be determined. NVIDIA likely intends RTX 3060 6 GB primarily for less demanding esports titles. Given the scale of cutbacks and the modern AAA title's recommended specifications, mainstream AAA gaming performance seems improbable.

Oppo Could be Exiting France by the End of June

There are strong indications that Oppo is winding down its operations in France according to a report published by Frandroid last weekend, which goes against the company's denial that it was exiting several markets across the European Union, including France. Frandroid's investigative piece states that French retail workers had provided enough evidence, back in late March, for the publication to make the claim that Oppo was withdrawing from that region. The news outlet has gathered more insider information since then and now claims that a promotions company - Atmospheres - has not been contracted to help market Oppo's lastest smartphone models, including the Find N2 Flip. The agreement between the two firms was already set to end on June 30, but the promo team was expecting a renewal or extension - their boss finally admitted that it was all over and done with.

Frandroid has observed that Oppo is not updating its display material at big box stores, in particular Fnac Darty, and a salesperson confirmed that that they were only obligated to clear existing smartphone stock and related accessories. A former Oppo regional sales manager told the publication about a cessation of product training - under normal circumstances the team gets briefed about the latest products in advance, but the insider confides (under an alias): "We understood that they were leaving...We see the Find X coming out in China, oh no, it's not coming out in France. We see the new Reno phones arriving, will they be released in France? Neither. When the Find N2 Flip arrives, we are told of a store release, and then finally no, it is only available on the web store."

Xbox Announces Lower Pricing for Series X|S Storage Expansion Cards

Microsoft's official Xbox Twitter account has today announced that its official range of Xbox Series console storage expansion cards has been reduced in price: "Think of all the new games you'll be able to download and play now 👀. The Seagate Storage Expansion Card is now available starting at a lower price: xbx.lv/41e8t57." It is slightly odd that Seagate itself has not announced this lowering of gaming product MSRPs, but today's changes only affect the US market - European and UK listings feature the old prices (at the time of writing). It is not clear whether this discount is a permanent or temporary thing, but the latter is a more likely situation given rumors from last month.

It is very possible that Seagate is reacting to new competition - last month a Best Buy listing revealed that Western Digital is lining up to provide third party storage expansion cards for Xbox Series console owners. The leak of WD's incoming offerings indicated that it would be undercutting its arch rival in terms of pricing, at least with the single model that leaked (1 TB at $179.99) - Seagate has a timed exclusive agreement with Microsoft/Xbox for the licensed production/selling of proprietary cards. The officially sanctioned price drop brings the cards to more reasonable value levels, but Xbox owners have largely agreed that MSRPs were inflated from the beginning. The entry-level 512 GB Seagate model now costs $89.99 (a $50 reduction), the 1 TB model is now available at $149.99 (a $70 reduction) and the top-end 2 TB model gets the largest price slash (of $120) which brings it down to $279.99. Seagate appears to be undercutting WD's BLACK C50 1 TB model (if the Best Buy info leak price was accurate) by $30 with the official 1 TB storage expansion card.

Samsung Profits Down 96%, Cutting Back on Memory Chip Production

Samsung Electronics will be cutting back on memory chip production, following a worrying drop in its operational profits. Estimates for the first quarter point to a 96% year-on-year decline - the silicon mega-corporation's lowest profit result in 14 years (since the first quarter of 2009). Samsung's operating profits fell to 600 billion won ($456 million) in January to March 2023, from 14 trillion won the previous year. The company has confirmed that a slump in sales is the main cause behind the smaller margins - with a slow global economy and a drop in demand after the chip shortages of 2020 - 2022. Manufacturers of computer and server equipment have reduced expenditure on procurements of RAM and storage solutions.

In a statement released last week, the company confirmed that it was adjusting its manufacturing output in reaction to the drop in demand: "We are lowering the production of memory chips by a meaningful level, especially that of products with supply secured." Industry analysts in South Korean are foreseeing that Samsung's chip business will post heavy losses (into the billions of dollars) during the first three months of 2023. Samsung is expected to publish detailed financial results later this month. The analysts have spotted similar patterns at other South Korea-based memory chip markers - SK Hynix and Micron have recorded heavy financial losses across recent quarters.
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