Techmeme Ride Home: Thu. 01/16 – Nintendo Switch 2 Summary

Release Date: January 16, 2025

Host: Brian McCullough
Source: Ride Home Media
Podcast Description: The day's tech news, every day at 5pm. From Techmeme.com, Silicon Valley's most-read news source. 15 minutes and you're up to date.

1. Nintendo Switch 2 Official Reveal

Overview: Nintendo officially unveiled the highly anticipated Nintendo Switch 2, featuring significant design enhancements and improved functionality over its predecessor.

Key Details:

• Design Enhancements: The Switch 2 resembles the original but is larger, with a redesigned U-shaped kickstand. A new USB-C port has been added adjacent to the 3.5mm headphone jack.
• Joy-Con Improvements: The Joy-Con controllers are now black with colored accents and attach to the console's sides magnetically, allowing for easier snapping on and off. A new button has been introduced beneath the Home button on the right Joy-Con, and the SL&SR buttons are larger.
• Functionality: Backward compatibility for both physical and digital games is confirmed. Additionally, the Joy-Cons can be used similarly to a mouse, enhancing user interaction.
• Dock Redesign: The new dock features a more rounded design, and a separate controller grip is available for snapping the Joy-Cons into place.

Notable Quotes:

• Brian McCullough [00:04]: "We now know what the successor to the Nintendo Switch will be like..."
• The Verge [Timestamp Not Specified]: "The console looks a lot like the original, but it's bigger."

Future Plans:

• Nintendo Direct: Scheduled for April 2nd, where more details will be unveiled.
• Live Events: Ticketed events in New York, Los Angeles, and Dallas in April for closer inspections.
• Game Teaser: A new version of Mario Kart is expected, potentially the most significant announcement since Mario Kart Deluxe sold 64 million copies.

2. TikTok Ban and Potential Executive Order by Donald Trump

Overview: The future of TikTok in the United States remains uncertain as former President Donald Trump considers issuing an executive order to suspend the enforcement of the TikTok ban.

Key Points:

• Executive Order Consideration: Trump is strategizing to delay the TikTok ban by 60 to 90 days through an executive order, despite the Supreme Court likely upholding the law.
• Legislation Background: A law signed by President Joe Biden mandates ByteDance, TikTok’s parent company, to sell the app by January 19 or face an immediate ban due to national security concerns.
• Legal and Political Maneuvering: Trump aims to position himself as a savior of TikTok, leveraging unconventional deal-making and legal tactics to extend the deadline past his inauguration.

Notable Quotes:

• Senator Ron Wyden [Referenced Interview]: "There is a concerted effort behind the scenes to try to buy more time here in Congress."
• Alan Rochenstein, Former National Security Advisor [Timestamp Not Specified]: "Executive orders are not magical documents, they're just press releases with nicer stationery."

Current Status:

• Supreme Court Involvement: The Supreme Court is expected to allow the law to proceed, potentially making the executive order ineffective.
• Biden Administration’s Stance: Exploring options to implement the law without abruptly banning TikTok, ensuring the app does not go offline imminently.
• Incoming Administration Actions: Trump's incoming national security adviser, Mike Waltz, has expressed readiness to intervene, while Attorney General nominee Pam Bondi has not committed to enforcing the ban.

User Impact:

• App Growth: Alternatives like Zhao Hongshu (RedNote) are seeing significant growth, with over 700,000 new users and a 200% increase in US downloads year-over-year.

3. Emergence of Zhao Hongshu (RedNote) as a TikTok Alternative

Overview: Zhao Hongshu, also known as RedNote, is rapidly gaining traction as a potential competitor to TikTok amid the ongoing regulatory uncertainties surrounding the popular video app.

Key Statistics:

• User Growth: Over 700,000 new users in recent days.
• Download Surge: 200% year-over-year increase in US downloads as reported by Sensor Tower.
• Valuation and Investment: Major shareholders are negotiating to sell part of their holdings at a valuation of at least $20.20 billion, according to Bloomberg.

Implications:

• Market Dynamics: The rise of RedNote suggests a shifting landscape in the short-form video app sector, potentially filling the void left by TikTok’s uncertain future in the US market.

4. Launch of NDIA: An AI Research Lab Focused on AGI

Overview: AI researcher Francois Chollet and Zapier co-founder Mike Knop have launched NDIA, an AI research and science lab dedicated to developing Artificial General Intelligence (AGI).

Key Insights:

• Mission: NDIA aims to create AI capable of true invention, adaptation, and innovation, diverging from traditional AI development paths.
• Technological Approach: Utilizes program synthesis alongside other techniques to enable AI to generate and solve novel problems efficiently.
• Strategic Vision: Chollet believes overcoming the computational intensity of program synthesis will accelerate scientific progress and AGI development.

Notable Quotes:

• Francois Chollet [Referenced via TechCrunch]: "We are at the crest of a pivotal moment in scientific history and the world deserves every possible, direct, unique attempt to build AGI."

Organizational Growth:

• Funding: NDIA has not disclosed external funding but is actively hiring.
• Team Composition: Founded by prominent figures in AI and machine learning, including Chollet, creator of the Keras open-source API.
• Future Plans: Developing AGI benchmarks and exploring diverse, innovative AI research methodologies.

5. Nothing's Ambitious Funding Round and Expansion Plans

Overview: Nothing, a smartphone maker known for its unique device designs, is seeking to raise at least $100 million in a Series C funding round to expand its operations and market presence.

Company Milestones:

• Sales Achievement: Surpassed $1 billion in lifetime sales with 7 million devices sold to date.
• Revenue Growth: Doubled annual revenue to over $500 million in 2024.
• Market Focus: Primarily sells devices overseas, with India as its largest market, followed by Germany and the UK. Audio gear is most popular in the US.

Strategic Moves:

• Product Line: Offers smartphones priced between $250 and $700, alongside earbuds and a smartwatch.
• Expansion Goals: Plans to intensify sales efforts in the American market by 2026 and explore additional product categories.
• Manufacturing: Operates with around 600 employees, manufacturing devices in China and India.

Notable Quotes:

• Bloomberg [Timestamp Not Specified]: "Nothing is seeking to raise at least $100 million in funding to expand its operations."

Market Position:

• Competitive Edge: Backed by Google's venture arm and iPod creator Tony Fadell, Nothing differentiates itself with distinctive designs in a market dominated by established players like Apple.

6. Walgreens' Smart Refrigerator Doors: A Costly Fiasco

Overview: Walgreens' initiative to replace traditional refrigerator doors with smart screens developed by Cooler Screens has resulted in significant operational disruptions and legal battles.

Incident Details:

• Implementation Issues: The smart doors frequently malfunctioned, causing screens to flicker, crash, or inaccurately display products. In some cases, the screens even caught fire.
• Legal Conflict: Cooler Screens sued Walgreens for breach of contract to prevent the removal of the malfunctioning doors, seeking $200 million. Walgreens countersued for monetary damages.
• Major Disruption: In December 2023, Cooler Screens executed a coordinated shutdown of over 100 Walgreens stores' smart doors, leading to widespread outages during the holiday season.

Notable Quotes:

• Bloomberg [Timestamp Not Specified]: "This was a brazen pressure tactic intended to harm Walgreens business and customer reputation during the busy holiday shopping season..."

Consequences:

• Customer Experience: Shoppers faced opaque screens, forcing staff to use paper placeholders or rely on service requests, leading to frustration and potential declines in sales.
• Retail Impact: Walgreens reported possible negative effects on quarterly grocery sales due to the smart doors' failure.

Industry Implications:

• Digital Transformation Challenges: This incident highlights the risks associated with integrating advanced digital technologies into traditional retail environments.
• Market Trends: Retailers are increasingly adopting digital advertising ecosystems, inspired by giants like Amazon and Walmart, to capitalize on the expanding $166 billion digital advertising market projected for 2024.

Future Outlook:

• Cooler Screens' Strategy: Aims to expand beyond fridge displays to a comprehensive in-store digital ecosystem, supported by tech giants Microsoft and Verizon.
• Consumer Reception: Mixed reactions, with some praising the innovation and others critiquing the practical inefficiencies experienced during technical failures.

Conclusion

Today's episode of Techmeme Ride Home provided an in-depth look into several pivotal tech developments:

• Nintendo's latest console promises enhanced features and continued support for beloved franchises like Mario Kart.
• The uncertain future of TikTok in the US continues to unfold amidst political maneuvering and potential executive interventions.
• Emerging platforms like Zhao Hongshu are positioning themselves as viable alternatives in a rapidly evolving social media landscape.
• Innovative AI research initiatives like NDIA are pushing the boundaries towards achieving AGI.
• Nothing's ambitious expansion reflects the competitive dynamics of the global smartphone market.
• Walgreens' smart fridge debacle underscores the complexities and risks of digital transformation in retail.

Stay tuned for more updates and detailed analyses in future episodes of Techmeme Ride Home.