Twenty-five years ago, few gadgets were on as many Christmas lists as Nintendo’s Game Boy Colour.
The iconic handheld, released in November 1998 and home to classics like Pokemon, Super Mario Land, and Tetris, was wrapped up under the tree in living rooms up and down the country.
With almost 120 million units sold, the Game Boy is one of the most successful games consoles ever made.
It still inspires new products to this day, with the retro Super Pocket – loaded with 90s classics like Street Fighter and Ghouls ‘n Ghosts – among the stocking-fillers vying for attention this festive season.
Not so long ago, though, portable gaming devices looked to be yesterday’s news.
The rise of the smartphone and games like Candy Crush usurped the once popular Nintendo DS and PlayStation Portable for many, while dedicated fans gravitated towards the power of consoles and PCs.
But as Christmas beckons again, the handheld market has arguably never been healthier.
Nintendo’s trend-setter
Despite being almost seven years since it launched, Nintendo’s Switch keeps selling.
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It sailed past 130 million units sold last month, helped by being the exclusive home of two of 2023’s most critically acclaimed games in Legend Of Zelda: Tears Of The Kingdom and Super Mario Wonder.
Its hybrid nature, one which allows players to use it as a portable or hook it up to their TV, was novel in 2017 but has become trendy. Its success inspired Valve, which runs the industry’s most popular store for buying PC games, to release the Steam Deck last year.
Like the Switch, games once reserved for consoles or computers can now be taken on the go. The Deck means the year’s most critically acclaimed title, Baldur’s Gate 3, can be a portable game.
With Christmas shopping under way, the company released a fresh model. Starting at £469, the Deck OLED has a better screen, battery life and lighter build.
That couldn’t be further from the truth now. The modern handheld craze goes beyond the Switch and Deck, encompassing rivals like the Asus ROG Ally (£499) and Lenovo Legion Go (£699).
Admittedly, they do all rather stretch the definition of “handheld”. With its beefy dimensions and 7.4-inch display, the Deck OLED dwarfs the Switch – let alone the Game Boys of yesteryear, when portable meant pocketable.
But Yang thinks we’re at the “start of a new gaming handheld category”, blurring the line between those that stay in your living room and ones that come with you.
Just as bigger phones got people comfortable watching films on the train, the Deck could normalise playing blockbusters on a flight.
Removing the compromises
Games industry expert John Ozimek says devices like the Deck have “removed the compromises” people came to associate with portable and phone games, like simple graphics or being stuffed with adverts.
Canadian developer Nine Dots is in the process of bringing its hit adventure game Outward to the Switch, meeting players’ growing desire to play any game they want on the go.
Creative director Guillaume Boucher-Vidal believes in as little “friction” as possible to meet their needs.
He was an early backer of Google’s dead Stadia gaming service, a Netflix-style service that streamed games over the internet, and still thinks there’s a “bright future” for cloud gaming.
Great expectations
Console makers Sony and Microsoft are certainly taking notice.
Like Valve, Sony has a new gadget on shelves for Christmas with the £200 PlayStation Portal. It lets PS5 players stream their games from the console to the handheld.
Microsoft’s Xbox Game Pass, the closest thing gaming really has to Netflix, is more accessible than ever. It lets subscribers stream a growing library of games on phones, tablets, and consoles.
Steve Cottam runs a similar service, but for classic games. Dubbed Antstream, it makes more than 1,400 retro titles available across iOS, Android, PC, Mac, and Xbox.
“People expect that accessibility with movies, music,” he says. “The idea we treat games differently is a fallacy.
“If I’m at the airport and can keep playing the games I’ve been playing at home, that’s hugely appealing.”
There are no such trips in my immediate future, but the convenience does appeal.
I’m not saying I would play Baldur’s Gate 3 on the loo, but it’s pretty cool that I can.
Consumer rights group Which? is suing Apple for £3bn over the way it deploys the iCloud.
If the lawsuit succeeds, around 40 million Apple customers in the UK could be entitled to a payout.
The lawsuit claims Apple, which controls iOS operating systems, has breached UK competition law by giving its iCloud storage preferential treatment, effectively “trapping” customers with Apple devices into using it.
It also claims the company overcharged those customers by stifling competition.
The rights group alleges Apple encouraged users to sign up to iCloud for storage of photos, videos and other data while simultaneously making it difficult to use alternative providers.
Which? says Apple doesn’t allow customers to store or back-up all of their phone’s data with a third-party provider, arguing this violates competition law.
The consumer rights group says once iOS users have signed up to iCloud, they then have to pay for the service once their photos, notes, messages and other data go over the free 5GB limit.
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“By bringing this claim, Which? is showing big corporations like Apple that they cannot rip off UK consumers without facing repercussions,” said Which?’s chief executive Anabel Hoult.
“Taking this legal action means we can help consumers to get the redress that they are owed, deter similar behaviour in the future and create a better, more competitive market.”
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Apple ‘rejects’ claims and will defend itself
Apple “rejects” the idea its customers are tied to using iCloud and told Sky News it would “vigorously” defend itself.
“Apple believes in providing our customers with choices,” a spokesperson said.
“Our users are not required to use iCloud, and many rely on a wide range of third-party alternatives for data storage. In addition, we work hard to make data transfer as easy as possible – whether it’s to iCloud or another service.
“We reject any suggestion that our iCloud practices are anti-competitive and will vigorously defend against any legal claim otherwise.”
It also said nearly half of its customers don’t use iCloud and its pricing is inline with other cloud storage providers.
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How much could UK Apple customers receive if lawsuit succeeds?
The lawsuit will represent all UK Apple customers that have used iCloud services since 1 October 2015 – any that don’t want to be included will need to opt out.
However, if consumers live abroad but are otherwise eligible – for example because they lived in UK and used the iCloud but then moved away – they can also opt in.
The consumer rights group estimates that individual consumers could be owed an average of £70, depending on how long they have been paying for the services during that period.
Apple is facing a similar lawsuit in the US, where the US Department of Justice is accusing the company of locking down its iPhone ecosystem to build a monopoly.
Apple said the lawsuit is “wrong on the facts and the law” and that it will vigorously defend against it.
And in December last year, a judge declared Google’s Android app store a monopoly in a case brought by a private gaming company.
“Now that five companies control the whole of the internet economy, there’s a real need for people to fight back and to really put pressure on the government,” William Fitzgerald, from tech campaigning organisation The Worker Agency, told Sky News.
“That’s why we have governments; to hold corporations accountable, to actually enforce laws.”
The jobs of more than half of the workforce at the DIY chain Homebase are at risk after the retailer’s owners called in administrators following a failed attempt at a sale.
Sky News reported earlier on Wednesday that around 1,500 people were set to keep their roles as 75 of the 130 stores were set to be snapped up by the saviour of Wilko in a so-called pre-pack deal.
The Range, also a general merchandise specialist, was confirmed as the buyer later in the day.
Teneo, which is handling the process, is understood to have been working to find a buyer for as many of the chain’s sites as possible.
Teneo said in a statement on Wednesday afternoon that up to 70 stores were confirmed to be included in the deal – saving up to 1,600 jobs out of 3,600.
It leaves 2,000 jobs at risk.
Forty-nine other stores will continue to trade while alternative offers are explored.
Sources told Sky’s City editor Mark Kleinman that there had been many expressions of interest in the remaining stores, despite the gloom being felt across the retail sector over the higher tax take demanded in the budget.
The sector has warned of higher inflation and job losses arising from the measures, which include increased employer national insurance contributions and minimum wage levels.
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The pre-pack deal – which typically allows a buyer to cherry-pick the assets it wants – brings to an end a six-year ownership of Homebase by Hilco, the retail restructuring specialist.
Teneo had initially been attempting to find a buyer for the whole Homebase business.
The partial sale comprises all those stores in the Republic of Ireland and the Homebase brand and its e-commerce business.
The Range is part of CDS Superstores, which is controlled by the businessman Chris Dawson – nicknamed “the Del Boy billionaire” because of the distinctive number plate on his Rolls-Royce Wraith.
Last year, it paid £7m to buy the brand and intellectual property assets of Wilko, which had collapsed into administration.
Since then, Mr Dawson has opened a string of new Wilko outlets.
P&O Ferries spent more than £47m summarily sacking hundreds of seafarers in 2022, helping it cut losses by more than £125m and putting it on a path to profitability, according to accounts due to be published in the coming days.
The dismissal of 786 mainly British seafarers, and their replacement with largely non-European agency staff earning as little as £4.87 an hour, was hugely controversial, drawing criticism from across the political spectrum and threats of a consumer boycott.
The controversy was rekindled last month when Sky News revealed that DP World, P&O‘s Dubai-based parent, considered withdrawing a £1bn investment at its London Gateway port following criticism of P&O by the Transport Secretary Louise Haigh.
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Chancellor quizzed over P&O ferries
P&O has always maintained the restructuring was necessary to allow it to compete with its rivals on cross-Channel routes, and prevent a total collapse of the company with the loss of more than 2,000 jobs.
In financial statements for P&O Holdings, filed 11 months late and seen by Sky News, the company says the restructuring cost £47.4m including legal fees and consultants, allowing it to cut the overall wage and salary bill by £21.3m.
In a note accompanying the accounts submitted to Companies House, P&O’s directors describe the restructuring as part of a “transformational journey” that will help it return to recording a profit before tax this year.
“The business has been on a transformational journey as it has recovered from the challenges of the global pandemic, Brexit and the impact of disruption caused by the change in the crewing model,” the directors say.
“The group believes that the transformational actions that commenced in 2022 and continue through into 2024 will equip the business to grow profitably when demand rises in the coming years.”
The accounts reveal the financial distress in which P&O found itself in 2022.
Having recorded losses of £375m the previous year as it struggled to recover from the pandemic-era decline in passenger numbers and post-Brexit complications, it was in breach of its covenants to external lenders underwriting the construction of new hybrid cross-Channel ferries.
Despite the restructuring costs, revenue increased by £83.3m to £918m in the financial year, but the company still recorded a loss of £249m and was reliant on loans totalling £365m from parent company DP World to remain a going concern.
An additional £70m was made available this year, with 4.5% interest rolled up and not requiring any repayment until 2028 at the earliest.
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The financial statements also reveal that P&O was forced to sell one of the new cross-Channel ferries to a French subsidiary to pay off an external financing loan of £76.9m, and then lease the vessel back from its ultimate owner.
In a statement, P&O Ferries said: “Our 2022 financial accounts show the challenges faced by the business at that time, and why the business needed to transform into a competitive operator with a sustainable long-term future.
“P&O Ferries has taken steps to adjust to new market conditions, matching our capacity to demand, and adopting a more flexible operating model that enables us to better serve our customers.”