Daily Archives: October 11, 2006

Not just rich people buy Playstations and Xbox’s

There’s a meme out there that only rich people will be able to afford Playstation 3′s. That’s bulls**t.

Let me tell you how it works in the US of A. You walk into Best Buy. Ask for a credit application. Fill it out. They approve you for $10,000 on the spot (as long as you’ve paid all your credit card bills on time). You head over to the big screen department, pick out your $4,000 big screen and your $600 Playstation 3, and a $500 HD-DVD drive. Then you pay something like $140 per month in payments.

Can’t afford that much? Then get a screen that costs about $1,500 instead.

Now, how much is that? Well, a movie, hotdog, and Coke, for four people will cost you about $60. So, for two movies with your family you can afford a kick ass bigscreen and gaming system.

There is WAY too much being made about the price of these things.

Is Facebook worth as much as YouTube?

I was reading Steve Ballmer scratching his head in BusinessWeek where he was wondering about the valuations that are getting paid out for companies like Skype and YouTube.

Good to hear that Ballmer’s leadership on the social software industry has remained consistent since he turned down Flickr when that sold to Yahoo for $30 million. I, and others, told Microsoft’s execs to start buying everything that moved in the social software space cause we knew that valuations were gonna be much more expensive later on. The executive leadership at Microsoft didn’t believe us. Still doesn’t.

Don’t miss Ballmer’s question here: “[You've got to ask] could Google do whatever it is they’re hoping to buy without paying $1.6 billion?” That’s Microsoft’s engineering culture coming through. Clearly Ballmer believes he can build YouTube for less.

The thing is, YouTube is two SEPARATE things: 1) the technology. 2) the community/brand.

Doing the technology is fairly straightforward. I’m sure that could be built for $100 million or less. Probably far less if they really are smart about how they go about it.

But duplicate the community and brand (er, those eyeballs, as Ballmer calls them) is far far far more difficult. The fact that he insists on calling me a set of eyeballs tells me Ballmer doesn’t understand the trend here. Why we love YouTube isn’t cause we can watch other people’s videos. It’s cause we can upload our own lame videos!!!

Now, will Microsoft be able to spend less than $1.6 billion and build their own YouTube? Maybe. Why? Cause Microsoft will have to spend hundreds of millions (probably more than a billion) in advertising just to attempt to appear “cool” and get people to try its video service.

Even then, as AT&T has demonstrated, spending a billion on marketing is no assurance you’ll come out the other end with a good audience and with people thinking you’re cool.

Google realized it couldn’t make its own video service look as cool as YouTube. Too bad Ballmer still hasn’t figured out he can’t buy his way into cool without buying some things that are cool.

Back to Facebook. Is it worth as much as YouTube? I don’t think so because only college students associate with that brand. With YouTube everyone from 80-year-old friends to my son were using it and talking about it. Facebook is struggling to make its brand interesting to non college students. So far it has failed, which is why I don’t think it’s worth as much as YouTube.

She got me into blogging

I’ll never forget Dori Smith’s prodding to learn about blogging back in 2000. I’m glad my wife interviewed her for the ScobleShow. Oh, yeah, she knows some other stuff too. She wrote the book on JavaScript (actually, quite a few books, check out the list on her sidebar). Plus she has the coolest office I’ve been in so far (less than a block from the nearest winery too). Her office is actually in a permanently-parked RV in Healdsburg, CA.

I’m glad to play cameraguy for my wife — especially when the conversation is so interesting. Ajax. Development tools. Mashups. Macs. PCs. Women in programming careers. Learning programming. Her son, who is studying bioinformatics. And much more. We cover Java vs. Javascript and keep the programming discussion pretty high level. If you’re just getting into programming this is a good overview.

This was Maryam’s first interview — ever. I thought she did a good job and even told me to shut up at one point.

One smart mofo at eBay…

I learned that Eric Billingsley designed nuclear power plants before coming to eBay. Since joining eBay he designed its new search engine, among other things. I talk about all that and more (and get some cool eBay demos) with Eric Billingsley.

The search engine he built is really interesting and hearing Eric talk about trying to make Google and other engines work is fascinating. Remember, everything in eBay needs to be found in the search engine and found NOW. Google doesn’t get new items into its index for days. That’d be totally unacceptable for eBay.