Techmeme Ride Home – Wednesday, May 28, 2025: Apple Playing Games Again

Host: Brian McCullough

Introduction

In this episode of Techmeme Ride Home, host Brian McCullough navigates through the latest developments in the tech world, highlighting significant moves by Apple, ongoing legal battles in the AI realm, advancements in autonomous trucking, and the escalating rivalry between Apple and Elon Musk. Here's a comprehensive breakdown of the key topics discussed.

Apple’s Strategic Move into Gaming: Acquiring Rack7

Apple has taken a noteworthy step into the gaming industry by acquiring Rack7, the two-person studio behind the popular Apple Arcade title Sneaky Sasquatch. This acquisition marks Apple's first foray into acquiring a video game studio, signaling a deeper commitment to its gaming ecosystem.

• Rack7’s Success: As reported by Digital Trends, Rack7 has been instrumental in developing indie titles like Dark Echo and Splitter Critters. Their flagship game, Sneaky Sasquatch, launched as an Apple Arcade exclusive in 2019 and quickly became a standout success among the service's 71 launch titles. The game has maintained its popularity with regular updates, and Rack7 will now operate as an internal studio within Apple.

• Apple Arcade’s Growth: Alex Rothman, Apple Arcade’s senior director, highlighted the game’s impact, stating, “We hear from customers all over the world whose kids want Sneaky Sasquatch birthday parties” (02:30). Rack7 joins other indie powerhouses like Likey Studios and Tri Band Games in contributing to the platform's diverse offerings.

• Future Gaming Strategy: While the acquisition might suggest a new direction, McCullough remains skeptical. “It doesn’t signal the beginning of a new gaming strategy for Apple. Probably not, because every time Apple signals they're going to get serious about gaming, it really never pans out, does it?” (05:10). However, there are indications of a potential shift with reports from Mark Gurman about Apple developing a dedicated gaming app to replace the existing Game Center.

Apple’s New Gaming App and Market Competition

Apple is reportedly working on a dedicated gaming app set to launch alongside Nintendo’s much-anticipated Switch 2 at Apple’s Worldwide Developers Conference on June 9.

• Features of the New App: The app aims to centralize gaming activities, including in-game achievements, leaderboards, and communications. It will serve as a launcher for titles, access to the App Store's game section, and promote Apple Arcade subscriptions priced at $6.99 per month. Additionally, a Mac version will be introduced to tap into games downloaded outside the App Store, leveraging significant market share.

• Market Positioning: Despite these enhancements, Apple’s move comes in a crowded market with robust alternatives like cloud services and established consoles. While the new app may streamline the gaming experience on Apple devices, initial testers anticipate it might not substantially alter perceptions among high-end game developers and players.

Texas Enacts Online Child Safety Bill Impacting App Stores

Texas has enacted a stringent online child safety bill mandating app stores to verify users' ages and secure parental approval before minors can access most apps or make in-app purchases.

• Legislative Background: Modeled after Utah’s App Store Accountability Act, the Texas bill empowers parents to control their children's online interactions. Angela Paxton, the bill’s author, emphasized, “This puts tools in the hands of parents to make decisions for their own children” (15:20).

• Industry Reactions: Major players like Apple, Google, and Alphabet have expressed strong opposition. Apple CEO Tim Cook personally reached out to Texas Governor Abbott to protest the legislation, arguing that it could “unnecessarily erode personal privacy” (16:45). The companies contend that the bill poses significant privacy risks, while Texas officials maintain it’s a crucial step for child safety.

• Future Implications: As Texas leads with this legislative approach, the tech industry is watching closely to see if other states will follow suit, potentially reshaping app store policies nationwide.

Getty Images Takes Legal Action Against Stability AI

In a significant legal battle, Getty Images CEO Craig Peters announced that Getty is suing Stability AI and other AI firms for allegedly stealing 12 million copyrighted images to train their AI models.

• Legal Claims: Peters stated, “These firms are taking copyrighted material to develop their powerful AI models under the guise of innovation and then just turning those services right back on existing commercial markets. That's disruption under the notion of move fast and break things, and we believe that's unfair competition” (22:10).

• Stability AI’s Response: Stability AI acknowledges using some Getty images for training but denies any liability, asserting that the AI-generated outputs do not reproduce the originals in a way that constitutes copyright infringement.

• Legal Challenges: Sakanya Wadhwa from Brandsmiths highlighted the complexities of the case, noting that courts will need to determine jurisdiction and whether the AI's outputs infringe on copyrights. The lawsuit is set for an initial trial on June 9th.

• Implications for the AI Industry: This lawsuit underscores the growing tensions between content creators and AI developers, raising critical questions about intellectual property rights in the age of machine learning.

Advancements and Challenges in Self-Driving Trucking

Self-driving trucks are edging closer to mainstream deployment, with companies like Aurora leading the charge.

• Aurora’s Progress: Aurora's autonomous truck has amassed over 1,000 driverless miles on I-45 and aims to deploy at least 20 robo trucks on railroads by the end of the year. Despite minor setbacks, such as temporarily returning an observer to the driver’s seat at a manufacturer’s request, Aurora remains optimistic about expanding its fleet and tackling more challenging driving conditions (28:50).

• Industry Projections: Consulting firm McKinsey & Co. projects that 13% of heavy-duty trucks on U.S. roads will be autonomous within the next decade. Aurora’s efforts are part of a broader movement with companies like Kodiak Robotics testing driverless trucks on Texas dirt roads.

• Expert Opinions: Engineering Professor Philip Koopman from Carnegie Mellon University lauds Aurora’s safety leadership but raises concerns about the lack of regulatory frameworks. “Nobody knows how it's going to turn out,” he cautions, highlighting the unpredictability of autonomous systems in unforeseen scenarios.

• Regulatory Landscape: While federal regulations remain absent, several states are contemplating legislation to oversee self-driving trucks. Experts believe that, under normal conditions, automated trucking could enhance road safety, but uncertainties persist regarding the technology’s response to atypical events.

Apple vs. Elon Musk: The Battle Over Satellite Internet and Smartphones

A deep dive into the escalating rivalry between Apple and Elon Musk reveals tensions over satellite internet services and the potential for Musk to challenge Apple’s dominance in the smartphone market.

• Elon Musk’s Proposal to Apple: Three years ago, Musk approached Apple with an ambitious offer for Starlink to provide exclusive satellite connectivity for iPhones. Musk proposed an $5 billion upfront payment for 18 months of exclusivity, followed by $1 billion annually. When Apple declined, Musk threatened to develop his own satellite-enabled smartphone (35:20).

• Apple’s Satellite Endeavors: Apple has invested heavily in satellite technologies, partnering with Globalstar and allocating substantial funds ($450 million in 2022 and $1.7 billion in 2024) to expand satellite coverage. However, internal debates persist about the value and feasibility of becoming a full-fledged internet service provider. Executives like Craig Federighi have suggested scaling back the project in response to Musk’s advancements.

• Musk’s Potential Smartphone Plans: Despite expressing reluctance, citing the monumental effort required, Musk has not entirely dismissed the idea of developing his own phone. He voiced frustrations, stating, “The idea of making a phone makes me want to die” (40:15), yet remains cryptic about future plans.

• Strategic Implications: Satellite internet remains a critical yet peripheral aspect of Apple’s core business. As both companies vie for supremacy in this niche, the outcome could significantly influence the future landscape of mobile connectivity and the broader tech ecosystem.

Conclusion

Brian McCullough wraps up the episode by reiterating the importance of clearly attributing quotes and maintaining clarity in reporting, hinting at potential future podcast merchandise. As always, Techmeme Ride Home delivers a thorough and engaging overview of the day’s tech news, ensuring listeners stay informed on the latest industry developments.

For a deeper dive into each topic, listen to the full episode of Techmeme Ride Home.