Hot PlayStation 4 Sales: Bloomberg West (11/18)

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Nov. 18 (Bloomberg) -- Full episode of "Bloomberg West." Guests include P.J. McNealy, founder at Digital World Research, BGC Partners Senior Technology Analyst Colin Gillis and Keith Krach, chairman and CEO at DocuSign.. (Source: Bloomberg)

Live from.

Three in san francisco, welcome to "bloomberg west." we are reshaping our world.

I am cory johnson.

Our focus is the future of business.

Let's get to the rundown.

Playstation for set a record.

With a raft of technical glitches and looming competition from xbox one, can sony weather the storm?

In a board meeting today, they are narrowing down the candidate to replace steve ballmer.

Look at the leadership experience in tech experience needed.

Bitcoin is getting a grilling on capitol hill.

Representatives from the justice department and the fcc are telling congress that they are legitimate financial instruments.

Really?

We will explore.

First, sales of waystation for are off to a fast start.

They have sold more than one million units in the first day of sales.

This tops sales of playstation three.

Users are taking to forums to complain that the consuls are not playing properly.

In some cases, they suddenly shut off.

Sony admits that there are technical problems.

They say they are closely watching the situation.

Sony is counting on playstation for big-time.

Last year's -- this most recent quarter.

With those problems as a context here, and the launch of the xbox 1 -- the big question, can sony hold onto this momentum?

A research and consulting firm is focused on behavior.

A longtime analyst is joining me from outside of boston.

What do you make of the first weekend sales?

I think this pretty much went to plan for sony.

I think they are happy that the pre-orders were there.

One million units without the door.

They have captured good media.

Did you have expectations around the numbers?

Is the number just a function of marketing x number of dollars?

Or is it not that simple?

Coming in with one million units in the first weekend, i think it is generally expected.

It is a good number.

It is a strong number.

We have seen this historically on the first day or two of a console launch.

They are off to a good start.

The key is to keep the shipments flowing.

Not only through black friday, but the rest of the holiday season.

And into 2014. xbox one launches thursday night.

What are you looking for there?

Does this give you a different context?

I think this is going as planned for now.

I think you'll see sony be very vocal with the launch thursday night.

It is mainly a pr and marketing war right now.

You have seen all of the ads for sony.

Microsoft is coming out and talking about gaming.

Down the road, we will see differentiation with using skype on xbox one.

For now, this is going to script.

No surprises this week.

It is intriguing the way that microsoft is looking at their device.

There is a lot more than a gaming console.

They announced it.

When they first announced the product, they talked about all the things it could do.

At the conference, they talked about it being hard-core gamer.

Have we seen this?

When the first waystation launch, they were dvd players.

There is definitely an entertainment element here.

The playstation four is shaping up to be a gaming device.

The xbox one will be an entertainment device that does do gaming.

The reality is that gaming is in the heart of this.

When you build your marketing pyramid of how you want to build your user base, you have to go to gamers first.

You can expect that to give broader after the holiday season.

What do you make of game makers and where they have stacked their bets?

I do not have a sense if anyone is putting more chips on one side of things.

I say tips because i was in vegas this weekend.

Why not?

I think early on, we are talking about between five to $10 billion.

It could be in the higher teens by the end of next year.

Early on, it seems like the major publishers are making platforms.

There have not been big checks written for platform x list of games yet.

They would be on sony's counsel for many years.

The big checks have been written.

If you are a game publisher, you have to think about the other forms to.

Should i make an ios game or an android game?

It is not simply making it for microsoft or sony.

The cost of developing games has risen so much.

I wonder how hard it is to write across form.

Has that gotten easier?

Or has the complexity of the consul made it harder?

There are a couple of things going on here.

It is a complex question.

The answer is fairly straightforward.

The architecture has been widely hailed as being easier to make games for.

The xbox is more complex.

Going across platform means taking code and using a program that will allow you to make one set of the game and spit out different versions.

For ios, four tablets, and for android.

This technology is trying to help unify all of the platforms to make it easier for developers.

Cost would skyrocket to make games for all platforms.

What i hear you saying -- the playstation is cheaper.

It is easier to write games for.

It is on the market earlier.

I have to think that all those things will help the playstation.

Is the playstation a winner?

Or the xbox?

I hesitate to bury anybody in week one.

I think they both come out on top.

The real battle begins in august or september of 2014. such a lame offense setter.

Thank you for writing the fence.

Moving on to bitcoin.

It could be heads or tails.

It is reaching an all-time high, 600 and two dollars.

Peter cook is with us now.

Why are they taking aim at that point?

It is not entirely taking aim at that point.

I know it has been a shock.

They are their job in finding out about something they do not understand.

That is something that they are right now.

This is virtual currency.

There are two different committees and they are trying to find out what it is all about.

We will hear directly from proponents of the virtual currency.

It will open up unique opportunities in the digital economy here in the united dates.

If it is not regulated to aggressively.

They will also hear the negatives out there.

Not only volatility in its price, but also the more negative signs of indications from bitcoin.

How it has been used for criminals, for example.

The dark side of the coin -- it has certainly drawn attention from law-enforcement.

What is congress saying?

They will be hearing from law-enforcement officials today.

They will hear from officials as well as law-enforcement.

There are concerns.

Especially with the anonymity factor.

How they can shield themselves from transactions.

The silk road example will be talked about a lot at this hearing today.

Specifically this notion that $1.2 billion in transactions were dealt with at that amazon of illicit goods.

Bitcoin was a factor there.

They insist those issues can be addressed.

Bitcoin does not present unique and unsolvable problems.

When bitcoin businesses enter into service, they are entering into one of the most highly regulated services in the world.

They're not just going into some unregulated wild west.

That is not true.

That is a fiction.

One other thing.

Patrick murphy's point at law- enforcement officials using anonymity themselves in busting the folks at silk road.

It works both ways.

Interesting stuff.

This is fascinating.

I appreciate that.

Peter cook, our chief washington correspondent.

Still ahead, microsoft trimming down its list of potential ceos.

We will tell you who makes the cut next.

You can also watch a streaming live on your tablet and it bloomberg.com.

? this is "bloomberg west." microsoft only wrote down its potential ceos.

The goal, trimmed the list to three to five candidates and hope they have the right person picked by next month.

For more on the search, i want to bring in:. he is an analyst at bg partners.

Will a new ceo make you take that off the shares?

We have to see who we get.

That is step one.

Let's look at this from the boards angle.

Microsoft's fiscal year ends in june.

They want to get someone in who will get their first 100 days under their belt and begin to execute before the fiscal year.

That means that you probably have to have someone mind up around the beginning of the new year.

There have been reports that there have been a list of five candidates that they're looking at.

They're going through the vetting process right now.

Arai.

It depends on the name.

Who could they name that would make you change it to a strong cell?

There is a combination of factors here.

You have to say, who could they name?

How they execute on their plan, right?

It does not mean that the change will come instantaneously.

I like stephen elop.

The candidates who are out there it -- people talk about alan mulally and internal candidates.

Elop is the combination of insider.

He ran the get.

-- he ran nokia.

Microsoft has got to get in the smart phone and tablet marketplace.

If you bring elop in, he knows nokia.

He will be the champion for nokia.

To rub up and make that work.

Not turning around nokia when he was brought in to do exactly that.

You could make that argument, but i do not think that is fair.

It was very troubled.

He reduced costs.

He made the decision to go with microsoft.

He got a decent exit from the company.

You are left with the networking piece.

He did not just dismantle the company.

There is a viable nokia.

Now microsoft has the handset business.

From that angle, he did achieve some reasonable goals.

He lowered the price for microsoft.

What would have happened to nokia anyway?

They clearly were going to have issues.

They were losing market share, right?

It clearly was not.

I wonder.

I do not know what the right answer was.

That is it.

Let's look at the other side of it.

If microsoft forced to name me as ceo, there is your strong cell.

Who else?

If you pick an internal candidate, guys like kevin turner or even tony bates -- tony does not have enough heft to run such a large organization.

They are trying to make real change.

You do not want to necessarily go the insight around.

If you are trying to change the culture around and to improve the pace at which microsoft moves, you most likely need an external candidate.

Alan mulally's name has been out there.

Does the name interest you?

He has no tech experience.

That is right.

That would be one of those things where they have worse choices.

He has had a long and distinguished career.

The whole reorganization is based around his ideas.

If you look at what he did with ford, he divested.

He got rid of jaguar and aston martin.

He dissolved their stake.

He increased the core focus.

He has also been an executive for quite some time.

He is in his late 60s. he is 11 years older than steve ballmer.

He does not have tech experience.

Really quick, shareholder meeting with microsoft tomorrow.

Very important, completely meaningless?

Why?

I do not think we will get a lot out of it.

Who is going to be the next ceo.

What path of going to go down?

Are they going to spin off xbox?

Are they going to break the company up?

Are they going to do nothing and stay the course?

Try to improve the product cycle.

Whoever the next ceo is, that is the critical question.

Then we will see the direction of the company.

Colin, thank you so much.

We will have more "bloomberg west" after the break.

? this is the early edition of "bloomberg west." google and microsoft have agreed to modify search algorithms to stop the spread of online child pornography.

Here's an op-ed piece in today's daily mail.

He says the changes will be rolled out in 150 languages.

Google will show warnings to people.

Google is working to remove the pictures from the internet.

Last week, people were arrested in a canadian led investigation.

This week, we are featuring a special called tech in the game.

We will look at how technology is changing the world of sports.

Tom brady and the patriots will take on the carolina panthers.

Espn paid to showcase each monday night game.

What kind of madness goes into this?

Jon erlichman went behind the scenes at espn to take a look.

It is nearly game time at new jersey's metlife stadium.

Week seven of the nfl season.

Espn's crew has rolled into town.

Is the only game on that night.

Everyone is watching.

He is the monday night football coach.

Controlling strategy and keeping the stars -- it is awesome.

Monday night football maybe the crown jewel of espn's empire.

The network pays 1.8 billion dollars per year for the rights to weekly broadcast.

That works out to $105 million per game.

To get bang for its but, they line up an emmy worthy production.

Roughly 35 cameras capture the game.

Pan to the left.

By seasons end, the production trucks will have travel 20,000 miles, crisscrossing the country.

Even with lackluster on the old performance, the games still attract an audience of 13.2 million viewers.

A reminder of how valuable primetime games can be.

We recognize that we are the current caretakers every 40 for your property.

One day it will be gone.

We never lose sight of that.

Jon erlichman, bloomberg.

All right.

Coming up tomorrow, emily chang has an inside look at the new high-tech stadium for the san francisco 49ers.

It is being built right in the heart of silicon valley.

Just down the road from ebay, cisco -- it is a big high-tech stadium.

Catch tech in the game every day this week on "bloomberg west." time now for on the markets, a look at what is moving on the markets every hour.

Julie hyman joins me from new york.

Let's talk about what is going on in stocks.

Not a lot of movement.

The dow jones hit 16,000. hanging onto a game of 3/10 of one percent.

It is a very tight range today.

We have heard from one of said official.

The new york fed president spoke earlier and expressed optimism.

He did not see any bubbles right now.

In a few minutes, the philadelphia fed president will speak on the economy in philadelphia.

The market will be watching those comments as well.

In terms of individual movers, we want to highlight tyson, the nation's largest meat processor.

They beat analyst estimates.

They helped to boost overall sales.

And chairs are following in june for console energy.

We will be back on the markets in 30 minutes time.

You will get more "bloomberg west" next.

? this is the early edition of "bloomberg west." you can also catch us at 6:00 on the coast.

Now to the top headlines.

Residents are in the midwest are picking up after tornadoes.

Illinois is the hardest hit.

At least six people have been killed there.

There is a 300 mile wide area of damage.

Federal courts have ordered mf global to pay one point $2 billion in restitution to customers.

They are also find $100 million.

They admitted to using customer money illegally.

A firm headed by the new jersey governor filed for bankruptcy.

If you want to watch the super bowl from heated seat, get ready to head -- shell out the big bucks.

Tickets start at $400,000 apiece.

They are usually taken up by sponsors and the teams.

Not this year.

Let's turn now to salesforce.com.

The conference kicks off in san francisco.

It is the biggest cloud computing event of the year.

Big speakers like facebook sheryl sandberg -- it is their chance to show their management base and software.

Joining us now is keith, the ceo of an electronic signature company.

You just announced a big deal with salesforce.

We have had a great partnership with salesforce.

For us, that is one of the big things that has turbocharged our business.

In terms of being able to transact business with anything digitally, anytime, anywhere, on any device.

People know them for car loans.

A mortgage application, and so on.

People who do not know -- they do not use the product.

If you have never used salesforce, you have no idea what it is.

Help me explain this.

A good example would be salesforce uses as internally on over 50 use cases.

One of the classic ones is their sales contracts.

If you become a customer of salesforce, they will send you a proposal, typically before.

It would take three or four days to get the process done.

Now, by the time they ship you the proposal, 60% of those sales contracts are not only signed, but are fully present -- provisioned in 15 minutes.

Always be closing, right?

Talk to me about -- what happens now on top of the salesforce platform?

If you look at virtually any industry, that is why doc you sign has become the standard.

Financial services -- the top wall street banks use documsign.

Morgan stanley is rolling out docusign.

Merrill lynch, 17,000. that is a great example.

In the insurance business as well, when you think about the amount of paper.

You have to sign with your insurance carrier.

We do business with 11 of the top 15 insurance carriers.

It has taken this old world of signing things into a digital world.

For things that are purely digital, is there a need for -- if you look at key areas of security, compliance, an example would be the health care business.

That is a great business for us.

Companies like allergen, the mayo clinic, cleveland clinic.

Allergen uses us in drug trials.

It reduces their turnaround time by 95%. we think we can help quite a bit.

If you think about going into the doctor's office and all of the paperwork that you have to fill out.

The audit trail that is left behind that.

All of the different forms.

What we do is -- signatures are just a small part of that.

We use forms an audit trails.

We think that that is a great opportunity to help.

How important to the world of software is salesforce?

I feel like the idea is more important than the company.

The notion that renting software service is easy enough to figure out.

You could be up and running in a day or so.

That is a big deal.

Salesforce itself, i cannot tell.

It is about fixed r.o.i.. you are able to get your results up and running very quickly.

An example is hewlett-packard.

They are used in over 20 use cases.

In 150 different countries.

We have been able to save them over $25 per document and reduce their average turnaround time by 21 days.

You could not do that with the old client service model.

Good to see you.

Thank you very much.

"bloomberg west" will be back here . ? this is the early edition of "bloomberg west." you can also catch us at 6:00 on the east coast.

Many industries are facing a change in technology.

More customers use mobile devices for banking needs.

Firms like australia's westpac are turning to issues like mobility and the cloud.

Richard holmes joins us from new york.

You guys are using the service?

That is correct.

Our customers life is what we are talking about.

They transact when they are on the road.

We are excited to roll out the microsoft service devices.

They will enable mobility.

We can interact where customers want to interact.

Why the surface?

You get to leverage the large investment you of already made in microsoft.

All of our staff knows how to use -- it is something they have become accustomed to.

When you look at these things and make decisions, i have to imagine internally it is a more difficult thing.

On some level, your consent ours -- consumers will use it.

Take me into the nuts and bolts of what used to make the decision.

Two separate strategies.

One is consumer driven and one is internally driven.

For consumers, we will point to whatever device they choose to use.

We will drop our android apps or drop our apple apps and microsoft apps.

Internally, even the large investment we had in microsoft, it was a no-brainer.

We are also using the new helix devices.

Like i said earlier, it is about leveraging that investment.

It is really easy for them to use.

Is part of the investment leveraging your existing microsoft infrastructure?

Whether exchange or office or windows?

Is that one of the reasons you stick with a surface rather than going out with an ipad?

That is absolutely it.

We have exchange and all of the collaborations.

All the way back through to the device management that the guys internally used to manage all of the devices.

The whole stack is the microsoft stack.

What about phones?

Phones?

Internally, we have more -- we have a own device policy.

We use a microsoft phone.

We will start to see that our applications will start to deploy to the surface.

The collaboration and facts -- across the devices as well.

I used a surface for a while and it was foreign to me.

I love having the microsoft office documents, in particular.

Is that one of the things that is a big draw for you?

I wonder if that is for a bank in important deal.

It is important.

We go out to see clients and capture a lot of information.

Ultimately, to get that information and get it into our tool is to get it into word documents.

We get it sent off.

What would you like to see from a surface that you do not see now?

Down in australia, we are still waiting for three g. i think that that will be fantastic when that comes.

The recent surface 2 release has given us doubled battery life.

We look forward to using those as well.

Those are the key things for us.

Lightness, mobility, and three g and four g. richard holmes, all the way from the land down under.

Tank you very much.

How did the online survey companies get the new york giants and the hearst corporation to use their new enterprise product?

We will ask the goldberg next on "bloomberg west." ? this is "bloomberg west." i am cory johnson.

The holiday shopping season gets underway -- google is stepping up its retail efforts.

The company is opening up six show rooms in the country called winter wonderlabs.

Those stores will be in new york, washington, chicago, los angeles, sacramento, and new jersey.

Consumers can order gadgets on life after seeing them live and in person in the stores.

They will also feature a live snow globe.

Complete with fake snow.

Survey monkey is helping businesses find new ways to get data about their audiences.

The company is launching an enterprise version of its online questionnaire software.

It will offer a way for companies to manage and analyze surveys.

Survey monkey ceo joins me now.

First, the new york giants and yamaha -- we have a bunch of customers that came to us.

They signed up salesforce as well.

We're are launching the product today.

We have always had a lot of customers inside of large enterprises.

They have all been individual consumers.

Today, we're allowing people to sign up as organizations.

Not just companies, but universities and schools.

What does a corporate customer want?

They still want their end- users to be able to use survey monkey.

I want the control features.

Control of the data, consolidate billing, a lot of those things.

A web collaboration.

You might have 100 accounts already, but they were not able to talk to each other.

Controlled collaboration is important that the corporate level.

Is there data that might work?

Yeah.

What kind of data?

What you want -- you might want a group of people to run the same survey questions.

They want to pen their own questions.

Each individual in marketing or hr can run their own survey.

You want to aggravate some of that data back.

You want to look at certain questions across the whole group.

Maybe it is an employee survey.

Some questions might be specific to an employee in a particular department or a particular region of the company.

You want to have control of the end user.

That is really part of what this is.

Giving control at the end-user level.

Have some of the data be able to flow back to a centralized place.

This has been on your radar from the start.

Why do this now?

We had planned to do this for a long time.

Our architecture has worked well.

To be able to support -- we have about 280 people now.

I am not good at math.

Is there something about -- you got to a certain point?

It is not so much competition, it is more like our customers.

They were asking for this.

They say they love survey monkey and want to keep using it.

It would make it a lot easier for us to use it more broadly if we had these features.

If we were able to have corporate control of the data.

Right now, individual sign-up and they own the data.

Even if you use it for work purposes.

I.t. and legal -- it is more comfortable having an enterprise account.

Finance one bill.

A lot of those painful -- this should make it easier for them to do their job.

Do you feel like businesses smarter?

I feel like the existing things are changing the way that people in business understand a lot.

They have an opportunity to get a lot smarter because of survey monkey.

We hope so.

It is a lot about the data.

People want to talk about the data.

Things are collected as you are doing things.

We run our business that way too.

Surveys give you the why.

And plus the data is the what greeted it does not explain why?

You need to combine the question and answers and gail with the implicit data.

The pictures were becoming more data-driven.

That is interesting stuff.

What is the weirdest to use that you have seen in the last week or so?

The last week or so?

We have so many crazy ones.

Someone created an off broadway play.

Crazy.

Thank you very much.

We will have more "bloomberg west" after the break.

? welcome back to "bloomberg west." we will have more coming at 3:00 on the west coast.

6:00 estes.

Now it is time for on the markets.

Thule hymen is back in new york.

Julie, what is going on?

Let's look at a couple of big movers.

Moving along to what those movers are.

Boeing.

Shares are hitting an all-time high.

They announced $140 billion in new orders.

Those shares have been moving higher.

We are also looking at supervalu.

Those shares are lower.

Citing competition and the reduction of the food stamp program.

Let's look at the broader market.

Not a lot moving.

Yes indeed, the dow did reach 16,000. it remains above that level.

There is a tight range in today's session.

We have heard a couple of officials speak.

90% of stocks -- a broad rally.

There's also a cut in the range of valuation.

It is more difficult for investors to find a bargain.

Whitney has been looking into this.

Why have we seen the valuations converge in the way they happened?

It has been part of that story of seeing one of the broadest rallies on record.

It is a level where valuations are now matching the cyclical stocks.

What does this indicate?

We look at these phenomenon to see what happens next.

Will the bull market keep on going?

There is always two sides to that story.

You would say that we came from such a low base that this is a return to fair value.

We're not quite to the level that we saw before.

Technology stocks were something like 30 times earning.

That is the bull side.

The bear side is what we have had for four years.

Valuations are now not super cheap.

Where do you go to find the next

This text has been automatically generated. It may not be 100% accurate.

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