I hope everyone is having a wonderful Friday, and is excited to take a look at this week’s tech-industry review.  This week, the blog focuses on tech expansion in California, and what this will do to housing affordability; tech companies reducing their investment in research and development in order to appease shareholders and take advantage of low interest rates; mobile gaming will soon take over traditional console gaming in the market; and some details behind the cyber-attack on Google, and North Korea’s motive. 

Google’s Expansion Hinders LA’s Housing Affordability

Los Angeles will experience an infusion of investment and economic opportunity as Google plans a major expansion to take place in Playa Vista.  This move is also expected to attract more companies and tech talent.  However, Silicon Valley has an underlying issue of housing and affordability.  On the Westside, where Google is expanding, housing prices are in range for Google employees, yet there are others to consider like retail clerks, teachers, cooks etc.  The expansion sheds light on Google employees and the tech industry, but Los Angeles needs to take into consideration it’s blue collar workers in it’s city planning. 

Read the full article from The Los Angeles Times  here

Tech Companies Reduce their Investment in Research and Devleopment

The brisk pace of technology innovation today challenges tech. bellwethers, such as Intel Corp, Cisco, EMC, Microsoft, Hewlett-Packard and Oracle, to make major financial decisions regarding shareholders over the future growth of the company.  These companies have a combined record debt level of $161.5 billion this year, from $78.3 billion in 2009, according to Bloomberg.  With low interest rates and investor demand, most of this debt has gone to paying out dividends and stock buy-backs.  What these companies are sacrificing is investing in research and development, a vital portion of business operations that helps companies keep up with the pace of innovation.  Has the growth of the tech industry approaching its apex?

Bloomberg looks into more details regarding ‘historical fear,’ overseas cash, and IBM’s strategy in the article found here

Mobile Gaming Overtakes the Traditional Console

According to Newzoo, an Amsterdam-based games research firm, mobile gaming is expected to overtake console gaming in revenue.  Mobile games are expected to bring in $25 billion in revenue globally this year, and more than $30 billion in 2015, and console gaming will move the other way, with expected revenue to fall to $26.4 billion in 2015 from $26.9 billion in 2014.  The decrease in revenue can be tied to the decrease in demand for handheld devices such as Nintendo 3DS and Playstation Vita.  Mobile games will replace the traditional console market as the largest game segment in 2015.  

Check out more of Newzoo’s report here

Cyberspace Faces War-Front Opportunities

After Sony released it’s plans to release a comedy about the assassination of North Korea’s president, Kim Jong Un.  A Foreign Ministry said all North Koreans were determined “to mercilessly destroy anyone who dares hurt or attack the supreme leadership of the country.”  With a threat like that, North Korea becomes a prime suspect for the major cyber attack Sony experienced last week.  The attackers made off with several new Sony movies.  The FBI is taking part in an investigation into the cyber attack.  North Korea certainly has the capabilities for cyber-warfare, as well as a strong motive, but there’s no clear proof that they were behind the attacks on Sony. 

Check out more of the details here

Happy Friday!