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| Hey Insiders! Welcome to today's newsletter for Tuesday, July 11. Here are our top stories: - A judge has allowed Microsoft to close on its acquisition of Activision Blizzard.
- A majority of Americans view TikTok as a national security threat, according to a Pew survey.
- Sega of America Workers form the largest video game union in the U.S.
- A new study finds that only 13% of classic video games are still available.
- Tumblr, the microblogging site, is set to be overhauled.
Beth
p/beth-duckett | |
| 1 | | A U.S. federal judge has rejected the FTC's request to block Microsoft's $68.7B purchase of Activision Blizzard, allowing the mega-deal to proceed as planned. The acquisition, which is the largest-ever deal in gaming, could potentially close by the July 18 expiration date. More: - In her decision, Judge Jacqueline Scott Corley stated that the FTC failed to demonstrate that the merger would substantially harm competition in gaming markets, or lead to the withdrawal of games from Sony PlayStation, a competitor to Microsoft's Xbox.
- The FTC has until Friday to appeal the decision.
- The ruling also suggests that negotiations in the U.K., where the merger was previously blocked, may be moving in Microsoft's favor.
- According to Financial Times, the U.K.'s competition watchdog has signaled a willingness to discuss the merger and is open to considering revised proposals from Microsoft.
- However, if Microsoft wants to close the deal before the July 18 deadline, it could mean defying the block imposed by the U.K. competition regulator, the only remaining antitrust regulator to officially challenge the takeover.
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| 2 | | What happened: Approximately 59% of Americans perceive TikTok as a national security concern, according to a recent survey conducted by Pew Research Center. By the numbers: According to the poll, only 17% of Americans believe TikTok is not a threat, and 23% are unsure. The perception varies based on political affiliation, age, and whether respondents are TikTok users. A majority of Republicans (70%) see TikTok as a national security threat, for example, compared to 53% of Democrats. Concerns about TikTok's data use practices are also prevalent, with 64% of Americans expressing at least some level of concern about how the company stores and shares data. Why it matters: The study comes after Montana banned TikTok. Additionally, South Carolina's Clemson University has joined other schools in prohibiting access to TikTok on its campus network. Concerns revolve around the potential for TikTok's parent company, Beijing-based ByteDance, to share user data with the Chinese government and manipulate algorithms for pro-China propaganda. 
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| 3 | | A group of Sega of America workers have voted to form the largest multi-department video game union in the U.S. The workers' 91-26 vote in favor of union representation was tallied by the National Labor Relations Board on Monday. The employees, from Sega's Burbank and Irvine locations, will now negotiate contracts with the Japanese gaming giant. More: - Employees have unionized under the Allied Employees Guild Improving Sega (AEGIS-CWA), represented by the Communications Workers of America.
- AEGIS-CWA will represent over 200 Sega employees across multiple departments, including quality assurance, marketing, and product development.
- The workers said they're aiming for higher base pay, improved benefits, clear outlines for advancing their careers, and adequate staffing.
- AEGIS-CWA is the fifth video game union in the U.S., joining Raven Software, Blizzard Albany, ZeniMax, and Tender Claws.
Zoom out: - In January, about 300 game quality-assurance testers from Microsoft's ZeniMax studios voted to form the tech giant's first labor union in the U.S.
- 53% of game developers surveyed said they support unionization, according to a State of the Game Industry survey.
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| 4 | | According to a study by the Video Game History Foundation and the Software Preservation Network, a mere 13% of classic video games are currently available for commercial purchase. This percentage is even lower than that of U.S. silent films. More: - The study examined 4,000 historical games and found that even popular titles like "Metal Gear Solid 4: Guns of the Patriots" are not available without owning outdated hardware or resorting to emulation.
- It found that a staggering 87% of video games developed before 2010 are inaccessible on modern platforms.
- While availability was low across all platforms and time periods, games for the 1982-era Commodore 64 system were less accessible compared to titles for the PlayStation 2 or Game Boy.
- 4.5% of Commodore 64 titles were found to be available.
- Despite its popularity, only 12% of PS2 games were accessible.
Zoom out: - Unlike books, movies, and music, outdated copyright laws prevent libraries and other official archives from preserving and providing access to classic video games, according to the study.
- The research advocates for legal exemptions so that libraries can provide access to classic games.
Source: Video Game History Foundation, in partnership with the Software Preservation Network | | | |
| 5 | | Tumblr is set to undergo a platform overhaul, drawing inspiration from TikTok. The microblogging site, which debuted in 2007, intends to enhance user-friendliness and appeal to individuals who use platforms such as Reddit and Twitter More: - In a memo on its staff blog, Tumblr said it aims to bring algorithmic recommendations to users' feeds, along with streamlined conversation tools and creator-friendly features and support.
- The changes include a redesign of reply and reblog features, which could simplify conversations and reduce duplicate reblogs.
- The update outlines various strategic changes, such as expanding user discovery and encouraging frequent engagement.
Zoom out: - Automattic, the owner of Tumblr, has been exploring various strategies to revitalize the 15-year-old platform, including subscriptions and paid features, as it works to reestablish itself as a major player in the social media landscape.
- In the memo, the company acknowledged that Tumblr isn't easy to use and "the brand carries the baggage of a person's preconceived impressions of Tumblr."
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| 6 | | Google has been testing its AI chat technology in hospitals, including Mayo Clinic, to provide medical assistance. Although it is in the early stages, Google's Med-PaLM 2 AI model can answer medical questions and offer healthcare support. More: - Med-PaLM 2 was trained using medical expert demonstrations and licensing exam materials.
- It is an updated version of Google's PaLM 2 language model, which also powers the company's Bard chatbot.
- The tool can reportedly aid doctors in diagnoses and healthcare tasks such as document summarization and data organization.
- Google envisions Med-PaLM 2 being particularly useful in areas with limited access to medical professionals.
- A Google study revealed that while the AI model showed more inaccuracies than doctors, it performed similarly in areas like reasoning and comprehension accuracy.
Zoom out: - According to a survey by Pew Research Center, 60% of U.S. adults would feel uncomfortable if their healthcare provider relied on AI for tasks like diagnosing diseases and recommending treatments, while only 39% would feel comfortable.
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- The Nothing Phone 2, the company's first high-end smartphone, will arrive in the U.S. on July 17.
- The AI boom is driving demand for office leasing in San Francisco, with several AI companies signing leases or actively seeking office space in the city. Mayor London Breed recently declared San Francisco to be "the AI capital of the world."
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 | AI and technology writer | | Beth is a writer and editor at Inside.com covering artificial intelligence and daily technology news. She has written the Inside AI newsletter since 2019. You can reach her at Beth.Duckett@inside.com. | | This newsletter was edited by Eduardo Garcia | |
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