Core Viewpoint - The Supreme Court has denied Google's request to pause a lower court's ruling requiring changes to its Play app store, which is a significant development in the ongoing antitrust case filed by Epic Games against Google [2][3]. Group 1: Legal Developments - The Supreme Court's denial of Google's request occurred on October 6, 2023, without any comments [2]. - A jury ruled in favor of Epic Games in 2023, leading to a judge's order in October 2024 that mandates Google to allow users to download rival app stores and make its app catalog available to competitors [3]. Group 2: Company Responses - A Google spokesperson expressed concerns that the changes ordered by the U.S. District Court could jeopardize user safety in downloading apps, while also stating that the company would continue its appeal [4]. - Epic Games CEO Tim Sweeney highlighted that the Supreme Court's decision allows developers to direct U.S. Google Play users to out-of-app payments without additional fees or complications, aligning with similar rights for Apple App Store users [4]. Group 3: Market Implications - Sweeney noted that various vendors are preparing to establish deals with developers in the U.S. and potentially the EU, despite challenges from big tech companies [5]. - Epic Games has launched Web Shops, enabling developers to sell in-game content directly to players, which is expected to gain traction in the U.S. following the court's injunction allowing steering [5][6].

Microsoft Corporation (NASDAQ:MSFT) is one of the Best Technology Stocks to Invest in for the Long Term. On September 19, Reuters reported that Microsoft Corporation (NASDAQ:MSFT) announced a second price increase for its Xbox gaming consoles in the United States this year. The change in prices reflects the rising costs caused by tariffs and supply chain issues, and the increased prices are expected to take effect on October 3. After the increase in prices, the one-terabyte Xbox Series S price will rise t ...

Core Insights - Huawei's HarmonyOS 5 has surpassed 14 million terminal devices, indicating the ecosystem has crossed a critical threshold [2] - The launch of the game "Genshin Impact" on HarmonyOS marks a significant advancement in the gaming ecosystem, with over 1,000 game developers and more than 10,000 games now available [2][6] - The performance of HarmonyOS has been validated by the successful launch of "Genshin Impact," which achieved over 100,000 downloads on its first day and received a high rating of 4.9 from users [3][4] Device and User Growth - The number of devices running HarmonyOS 5 has increased from 10 million to 14 million within a month, showcasing rapid user adoption [2] - The introduction of "Genshin Impact" on HarmonyOS is expected to attract more developers and enhance user engagement, creating a positive feedback loop for the ecosystem [2][6] Game Ecosystem Development - The launch of "Genshin Impact" is seen as a pivotal moment for the HarmonyOS gaming ecosystem, with the game utilizing cross-platform server capabilities for seamless user experience [4][7] - Huawei's gaming center has implemented various technical innovations and incentive programs to support game developers, fostering a thriving gaming environment [5][6] Technical Innovations - HarmonyOS 5 features a new memory mirroring mechanism that allows for game startup times to be reduced to around 3 seconds, significantly improving user experience [5] - The system's distributed soft bus technology enables faster game downloads, reducing the time to update large game files from minutes to seconds [5] Future Outlook - The success of "Genshin Impact" on HarmonyOS is viewed as a validation of the ecosystem's potential, with Huawei aiming for HarmonyOS to become a major player in the operating system market [7] - The ongoing collaboration with developers and the introduction of innovative features are expected to further enhance the gaming landscape on HarmonyOS [6][7]

Financial Data and Key Metrics Changes - The company has successfully managed its cost structure, reduced debt, and increased gross margin, indicating effective business management [1][2][12] - A dividend of HKD 600 million is being returned to shareholders, with a slight increase in the dividend per share to $0.50 compared to RMB 0.40 in 2024 [11][12] Business Line Data and Key Metrics Changes - The flagship product, AP10, is expected to drive growth in both the education and enterprise sectors, showcasing a shift in business architecture [1][2] - The company is making progress in transitioning to a SaaS business model, which is expected to enhance revenue streams [2][4] Market Data and Key Metrics Changes - The company is actively engaging in AI-driven initiatives, particularly in education, which is gaining traction in various markets, including Thailand [7][21] - The gaming business is anticipated to face challenges in 2024 and 2025, but there are expectations for a return to growth in 2025, contingent on market stabilization [14][25] Company Strategy and Development Direction - The company is fully embracing AI, with plans to integrate AI voice assistant technology into its products, enhancing educational tools for teachers and students [3][4] - A strategic collaboration with a prominent AI company in China aims to leverage technology for market expansion beyond Hong Kong [6] - The company is exploring blockchain and Web3 technologies as part of its future business model, particularly in education [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming current market challenges through cost optimization and new technology integration, positioning the company for growth in 2025 and beyond [12][16] - The outlook for the second half of the year remains positive, with expectations for market recovery in Europe and the U.S. [14][16] Other Important Information - The company is participating in international conferences to share its experiences and strategies with emerging markets, indicating a commitment to global engagement [8][10] Q&A Session Summary Question: Can NetDragon provide insights on revenue traction from AI education and SaaS? - Management highlighted the integration of verified technology into their panel as the start of AI SaaS revenue, with ongoing efforts in Thailand driving traction in AI education [19][20][21] Question: What are the short-term factors affecting the gaming business, and will it return to growth? - Management acknowledged the slowdown in gaming but indicated plans to leverage blockchain and AI for future growth, while not committing to specific growth projections [24][25]

Core Points - An Australian court ruled that Apple and Google misused their market power in a dispute with Epic Games, the developer of Fortnite, which was removed from their app platforms in 2020 due to its in-app payment system that bypassed the companies [3][4]. - The court's decision indicates that the dominance of Apple and Google in the app store market reduces competition, potentially leading to higher commission fees for game developers [4]. - Epic Games celebrated the ruling as a victory for developers and consumers in Australia, although the court dismissed claims of unconscionable conduct by Apple and Google [4][5]. Company Responses - A Google spokesperson expressed disagreement with some findings of the court and stated that the company would review the full decision to determine its next steps [5]. - Australian lawyers have initiated a class action lawsuit seeking compensation from Apple and Google on behalf of game users and developers [5]. Industry Impact - The ruling is seen as a significant turning point, emphasizing that powerful corporations must adhere to regulations and respect the rights of consumers and developers [6]. - Fortnite, with hundreds of millions of registered players, remains one of the most popular video games globally, highlighting the importance of this legal battle for the gaming industry [6].

Core Insights - Huawei's gaming center showcased over 50 HarmonyOS native games at the 2025 ChinaJoy, highlighting technological breakthroughs in gaming interaction and experience [1] - The gaming exhibition area covered 1,000 square meters, with key displays for "Honor of Kings" and "Light and Night Love," where the HarmonyOS version of "Honor of Kings" improved responsiveness by 21% compared to the previous generation [1] - The "touch and go" feature became a popular term, enabling quick team formation and resource transfer in games like "NBA Peak Showdown" [1][2] Performance Optimization - The startup speed of HarmonyOS games has been optimized, with "NBA Peak Showdown" launching in approximately 3 seconds [2] - Background resource pre-download technology has been implemented to minimize update waiting times [2] - The Xiaoyi game assistant introduced AI smart Q&A and call blocking features, enhancing user experience through system-level game dynamic notifications [2]

Core Points - Tim Sweeney, CEO of Epic Games, achieved a significant legal victory against Apple, leading to changes in the App Store's payment policies [1][2] - Apple is required to allow more competition and alternative payment methods, ending its 27% fee on US developers directing users to external purchases [1][2] - Epic's game Fortnite is set to return to iOS as a result of this ruling [1] Group 1 - The 9th Circuit Court denied Apple's stay, marking the end of what Sweeney referred to as the "Apple tax" [2] - Sweeney expressed optimism for a new era of competition, where developers can inform users about better deals and alternative payment methods [6] - Apple plans to comply with the ruling but intends to appeal the court order [3] Group 2 - Apple reported that its global App Store ecosystem facilitated $1.3 trillion in developer billings and sales in 2024, with 90% of transactions not incurring a commission [4] - The App Store attracts over 813 million average weekly visitors, with spending in various categories more than doubling since 2019 [5] - In-app advertising has played a crucial role in keeping many apps free or low-cost for users [5]

Group 1 - Microsoft has supported Epic Games in its legal dispute with Apple, claiming that Apple's restrictions have hindered Microsoft's efforts to establish an Xbox mobile store [1][3] - The district court's injunction allows Apple to maintain in-app exclusivity but should enable Microsoft to offer a solution by launching its own online store for in-app purchases [2] - Microsoft argues that Apple's policies have limited its ability to provide functionalities such as buying and streaming games on the Xbox app for iOS users [5] Group 2 - Apple is facing scrutiny from US District Judge Yvonne Gonzalez Rogers, who has referred the company for potential criminal charges for violating a 2021 injunction [3] - Judge Rogers has demanded an explanation from Apple regarding its non-compliance with the court-ordered injunction and has warned that an Apple official must appear in court if the issue is not resolved [4] - Recent rulings have imposed new restrictions on Apple, including a directive to stop charging a 27% fee on rival developers and to remove restrictions on linking to external purchase options [10]

Core Points - Apple has approved the return of Fortnite to the U.S. App Store after five years since its removal in 2020 due to a legal dispute with Epic Games over payment mechanisms [1][2] - A recent court ruling stated that Apple cannot charge a commission for apps linking out for payments, which has led to changes in how major app developers like Amazon and Spotify operate their apps [2][4] - Epic Games has been able to offer Fortnite in Europe through a third-party app store under the Digital Markets Act, despite ongoing challenges with Apple [6] Group 1: Legal and Approval Process - Epic Games submitted Fortnite to the U.S. App Store, which had to pass Apple's App Review process to ensure compliance with guidelines [2] - Apple delayed the approval process since May 9, leading to a legal challenge from Epic Games, prompting a judge to require Apple to explain the delay [3] - Apple is appealing the recent court order that affects its App Store policies and is seeking a pause to roll back changes made in response to the ruling [4] Group 2: Financial Implications - The fees from the App Store are a significant revenue source for Apple, contributing to its Services business, which reported nearly $27 billion in revenue during the March quarter [7]

Core Viewpoint - Apple is required to resolve its ongoing issues with Epic Games regarding the Fortnite game or face legal consequences in court [2]. Group 1: Legal Proceedings - Epic Games recently re-submitted Fortnite to the iOS App Store, but Apple blocked the submission, leading Epic to file a motion to enforce a previous court injunction against Apple [2]. - U.S. District Judge Yvonne Gonzalez Rogers stated that Apple is capable of resolving the issue without further legal proceedings [2]. - If the conflict is not resolved, an Apple official responsible for compliance must appear at a hearing scheduled for May 27 in Northern California [2]. Group 2: Company Responses - Apple has stated that it did not remove Fortnite from alternative distribution marketplaces, indicating its position in the ongoing dispute [2]. - CNBC has reached out to both Apple and Epic Games for comments, highlighting the media's interest in the situation [3].