Samsung has warned of plummeting profits and plans to cut back on memory chip production in response to falling demand, The Korea Herald has reported. It expects to earn just 600 billion won ($455 million) for the first quarter of 2023, a drop of 96 percent from the same period last year. It blamed falling demand for memory chips, a situation that could be a bad sign for the tech industry as a whole. 

"We’re adjusting to lower memory production to a meaningful level... in addition to optimizing line operations that are already underway,” Samsung said in a statement. It added that it would continue to invest in clean room infrastructure and expand R&D spending, as it sees improved memory chip demand in the mid- to long-term. 

Although it trails Taiwan's TSMC in other areas, Samsung is the global leader in DRAM and NAND flash memory chip production with 40.7 and 31.4 percent shares respectively. Such chips are used in consumer devices of all kinds, ranging from smartwatches to mobile phones and laptops. The oversupply of memory chips is therefore a sign that demand for such products has fallen significantly due to an ongoing global economic slowdown. 

The slowdown comes just a short time after one of the biggest tech industry booms of all time, powered by the COVID-19 pandemic. Since late in 2021, however, memory prices have dropped through the floor, with DRAM and NAND prices down by 20 and 15 percent in just the last quarter alone. One bright spot for Samsung has been sales of its new Galaxy S23 smartphone, which helped bolster profits, the company said. It will reveal more details in its earnings report set to drop at the end of April. 

Virgin Orbit has filed for Chapter 11 bankruptcy protection a few days after officially shutting down its space launch operations. The private space company has been burning money for a while now and reported a loss of $49.2 million in its last fiscal quarter. It tried to raise money in late 2021 by going public through an SPAC merger that was expected to raise $483 million for the company. However, it ultimately got less than half of that amount in gross proceeds. 

While Virgin Orbit carried on throughout 2022, its financial issues came to a head after its "Start Me Up" mission didn't quite go as expected. It was supposed to be a historic event as the first orbital launch from UK soil, but it failed to reach orbit due to a dislodged fuel filter. The company went into operational pause and furloughed most employees after that, in mid-March, as it sought new investors. And by the end of last month, it extended its employee furlough, because it wasn't able to close any deals. 

Virgin Orbit's late-stage discussions with Texas-based investor Matthew Brown, who was going to put $200 million into the company, reportedly broke down. It was perhaps the perfect deal for the launch provider, since that amount would've been enough to give the investor a controlling stake. A previous report by CNBC's Investing in Space newsletter said Sir Richard Branson didn't want to own the company anymore, even through the bankruptcy process, and that the Virgin Group had been rushing to find new sources of funding and buyers before the news broke. 

On March 30th, the company officially shuttered its space launch operations due to lack of funding. It flew a total of six flights from 2020, though only four of which were able to put satellites in orbit. According to Financial Times, Virgin Orbit said it expected to report $33.1 million in revenue and a net loss of around $191 million for the 2022 fiscal year. The company's search for a buyer will now proceed while protected by Chapter 11, though the process could culminate in the business being wound down if it doesn't find a new owner.

When Faraday Future released its earnings report for 2022 earlier this month, it said it's on track to begin the production of its first vehicle. The company had a lot of false starts since it was founded in 2014 and had to push back the model's production and shipment dates again and again. This time, the company was finally able to stick to its timeline: Faraday Future has announced that it has started production for the FF 91 Futurist electric vehicle at its factory in Hanford, California. 

Faraday Future unveiled the FF 91 Futurist in February 2022, with the intention of kicking off the manufacturing process in the third quarter of the year. It obviously didn't happen, and the company told investors that it was because it needed more cash for its commercial launch. Indeed, the automaker grappled with a string of financial woes over the years and even almost ran out of cash in 2017 before Season Smart, later acquired by Chinese company Evergrande Health, agreed to fund it with $2 billion. 

Faraday burned through Season Smart's initial $800 million cash injection too quickly, however, and ended up feuding with the investor. The company furloughed (and ultimately let go) hundreds of employees while the dispute was ongoing. It also had to abandon its plans to build a $1 billion Las Vegas production facility and sell the site for $40 million.

The FF 91 Futurist promises 1,050 horsepower, a range of 381 miles as certified by the EPA and the ability to go from zero to 60 mph in 2.27 seconds. It will be sold both stateside and in China — in the US, customers in Los Angeles will get their units first, followed by those in San Francisco and then buyers in New York. According to Reuters, deliveries in the US are scheduled to begin in April 2023. The company itself didn't mention a specific date for when deliveries will start, but it did announce a final launch event for the FF 91 Futurist on April 26th.

More than a decade into its life, Lyft is bringing on a new chief executive officer. On Monday afternoon, the company announced current CEO and co-founder Logan Green would hand day-to-day operations of Lyft to David Risher, a former Amazon executive, on April 17th. That same day, Green will take over as chair of Lyft’s board of directors. The announcement is part of a larger executive shuffle that will also see Lyft president and co-founder John Zimmer move to the company’s board where he will serve as its vice chair. Zimmer’s last day as president will be June 30th.

Green and Zimmer founded Lyft in 2012 and successfully took the company public in 2019. Since its IPO, however, the value of Lyft’s stock has dropped dramatically. Following an initial high of $78.29 per share in 2019, the stock hit a record low of $9.60 per share earlier today. On February 9th, the day Lyft announced its Q4 2022 results, the stock shed 36 percent of its value after Green delivered what was widely considered one of the worst earnings calls in recent memory, telling investors the company would need to increase spending to stay competitive with Uber. To say Lyft’s new CEO has his work cut out for him would be an understatement. The company has never reported a profit, and, barring a surprise breakthrough in autonomous driving, it has a difficult path ahead due to the economics of ride-sharing. Still, Risher is definitely qualified to turn Lyft around having previously served as Amazon’s first head of product and head of US retail.

Atari is betting that an acquisition will bolster its classic game library. The company is buying Nightdive Studios, best known for its upcoming System Shock remake, for $10 million in cash and stock. The move will help Atari both expand its catalog and use Nightdive's combination of technology and publishing to boost a "retro-focused" strategy. The deal is expected to close in April.

Apart from the System Shock re-do, Nightdive mainly thrives on the KEX engine it uses to make vintage games run on today's PCs, in some cases with technical improvements. Its modernizations range from well-known hits like Quake and Blade Runner through to cult favorites like Darklands and Terra Nova: Strike Force Centauri. Nightdive isn't a large company, having racked up $3 million in revenue last year.

For Atari, this is part of a broader bid to refocus on gaming. The company has tried (and struggled with) multiple unusual ventures in recent years, including crypto, online casinos and even themed hotels. Nightdive lets Atari concentrate on making "premium" PC and console titles without relying solely on retreads of first-party games, and without spending as much time developing technology to port old software. Atari is nowhere near returning to its heyday, but it may become more relevant to gamers than it has been in a while.

Volkswagen pinned its future on electric vehicles and announced its plans to put 30 new EVs on the road shortly after its $18.2 billion emissions scandal. Now, the automaker has revealed that it plans to spend $193 billion on different areas of its electrification efforts over the next five years. According to The New York Times, Volkswagen chief executive Oliver Blume said at a press event that two-thirds of that budget will go towards manufacturing batteries, developing software and sourcing critical and raw materials for its vehicles. 

Blume's revelation comes after the automaker's announcements that its subsidiary PowerCo will build its first North American battery cell factory in Canada and that it will build electric pickups and SUVs in South Carolina. The company is already producing its ID.4 electric vehicles in the US after repurposing its Chattanooga, Tennessee factory in 2022. But Volkswagen's electrification efforts are still behind its biggest competitors', and it's aiming to establish a stronger foothold in North America, as well to become more competitive in China. The company considers those regions as its two most important markets — ones it will have to conquer if it wants to reach its goals. Volkswagen previously said that it wants electric vehicles to account for about 55 percent of its sales in the US by 2030. 

For now, the automaker will continue making gas vehicles while it's working to expand its EV offerings with more models, including affordable ones that cost around $26,000. Arno Antlitz, Volkswagen’s chief financial and operating officer, talked about the path the company has to take going forward, though: "We must transform ourselves into a technology and mobility services group. We need to focus on our platforms, such as our hardware for battery-powered electric vehicles, a unified software stack, batteries, mobility, autonomous driving."

The abrupt collapse of Silicon Valley Bank has affected the value of the world’s fifth-largest cryptocurrency, increasing fears of a possible ripple effect among Web3 companies. On Saturday morning, USD Coin fell to a record low of $0.87 after Circle, the company that manages the stablecoin, disclosed that $3.3 billion of the approximately $10 billion cash reserves backing USDC was held by SVB.

As The Guardian notes, the drop is unprecedented. As a stablecoin, the value of USDC is supposed to remain stable thanks to its peg to the US dollar. According to data from CoinGecko, USDC’s previous all-time low was about $0.97 in 2018. More recently, the currency fell to $0.99 following the collapse of Three Arrows Capital. As of the writing of this article, USDC is valued at approximately $0.95 cents.

Web3 is Going Just Great creator Molly White suggests the effect from a sustained USDC drop would be “enormous.” A handful of other stablecoins, including FRAX and DAI, use USDC as collateral. On Friday, Circle said it would “continue to operate normally” while it waits for more information on what will happen to SVB’s clients. "As of Thursday, we had initiated transfers of these funds to other banking partners. Though these transfers had not yet been settled as of close of business Friday, we remain confident in the FDIC’s management of the SVB situation and stand ready to receive these funds," Circle said on Saturday, adding $5.4 billion of its cash assets are held by BNY Mellon, "one of the largest and most stable financial institutions in the world."

The sudden collapse of Silicon Valley Bank has put more than a quarter of Roku’s cash at risk. The streaming company had nearly $500 million, representing 26 percent of its cash, in Silicon Valley Bank, the company disclosed in an SEC filing Friday.

The future of those funds is now uncertain as federal regulators have taken over the financial institution amid the second-largest bank collapse in United States history. “The Company’s deposits with SVB are largely uninsured,” Roku wrote in its filing. “At this time, the Company does not know to what extent the Company will be able to recover its cash on deposit at SVB.”

In a statement on Friday, the Federal Deposit Insurance Corporation (FDIC) said that it will pay “uninsured depositors an advance dividend within the next week” and that “uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds.” But there’s still a lot of uncertainty about how long that process will take to play out, and how much of their uninsured funds companies will ultimately be able to recover.

However, Roku’s situation is, at least for now, a lot less dire than many of the smaller startups that relied on Silicon Valley Bank, some of which are now unable to pay their bills or their employees. 

In its SEC filing, the company noted that it has more than a billion dollars in cash at multiple other banks. “As stated in our 8-K, we expect that Roku’s ability to operate and meet its contractual obligations will not be impacted and we continue to have access to $1.4 billion in cash and cash equivalents which are distributed across multiple, large financial institutions,” a Roku spokesperson said in a statement to Engadget.

While Silicon Valley Bank was previously a little-known institution, it was known for its close relationships with startup founders, who made up much of its clientele. But, as Bloomberg’s Matt Levine explains, the bank’s reliance on fixed-rate assets, also made it uniquely exposed to the conditions that ultimately led to a run on the bank Thursday after prominent venture capitalists urged founders to move their money out of the institution.

Roku is not the only major public tech company now facing losses as a result of the bank’s collapse. Roblox had $3 billion, about 5 percent of its cash, at Silicon Valley Bank, the company told the SEC. “Regardless of the ultimate outcome and the timing, this situation will have no impact on the day to day operations of the Company,” it wrote in a filing. Video service Vimeo also disclosed that it had “less than $250,000” with the bank.

Yuji Naka has pleaded guilty to insider trading charges filed last fall. The Sonic the Hedgehog co-creator has admitted to violating Japanese financial law by buying shares in the game studio Aiming before its team-up with Square Enix on Dragon Quest Tact became public. Naka admitted to making a profit over 20 million yen (about $150,000) after selling his investment. He hasn't yet received a penalty for the illegal trade.

The veteran developer signed on with Square Enix in 2018, but abruptly left soon after his one project at the company (the mobile platformer Balan Wonderland) shipped to customers. He sued the company for removing him as director of Balan six months before launch. He was still with Square Enix when he heard about the Dragon Quest Tact work.

Two other former employees, Taisuke Sasaki and Fumiaki Suzuki, were also arrested for buying Aiming shares using insider knowledge. Square Enix says it's cooperating with investigators and has established a system that prevents insider trading. It's not clear how well that protection will work in practice, but the guilty plea theoretically discourages developers from using industry secrets to manipulate the stock market.

Microsoft has reportedly cleared a major regulatory hurdle as it tries to move toward finalizing its Activision Blizzard purchase. The company’s licensing offers to competitors are expected to appease European Union (EU) antitrust concerns about the $69 billion acquisition, according to Reuters. The EU previously said it believed the deal could “significantly reduce competition” in PC, console and cloud gaming.

The EU isn’t expected to demand asset sales to approve the deal. However, the potential sale of Call of Duty has been a point of contention; Microsoft wants to hang onto the property while using the licensing agreements to quell regulators. The company has pledged to keep the franchise on competing platforms for at least 10 years if the purchase closes; it’s even bringing Call of Duty to Nintendo’s consoles.

Microsoft says it’s “committed to offering effective  and  easily  enforceable solutions  that address the European Commission’s concerns.” “Our commitment to grant long-term 100% equal access to  Call of Duty to Sony, Steam,  NVIDIA and others preserves the deal’s benefits to gamers and developers and increases competition in the market,” a Microsoft spokesperson told Reuters.

The company announced the deal in January 2022 to help it compete against industry leaders Tencent and Sony while developing its take on the metaverse. “Gaming is the most dynamic and exciting category in entertainment across all platforms today and will play a key role in the development of metaverse platforms,” Microsoft CEO Satya Nadella said at the time.

Microsoft will still need to appease the US Federal Trade Commission and UK regulators before the deal can be finalized. The company only has until July to sort out the antitrust concerns, or it will need to renegotiate or abandon the purchase (which would mean paying a breakup fee of up to $3 billion).