Lab Weekly - 06/06/2025
The brewing AI hardware race; Plus, the latest news about Switch 2 launch, Disney+ perks, and more must-know news and stats
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The Dream of The Next Big Thing, Powered by Gen AI
The AI hardware race is brewing. How OpenAI, Meta, Google are trying to make it happen, and where does that leave Apple?
In case you missed it…
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Nintendo Set to Sell Out Switch 2 Console at Global Launch [Financial Times]
It looks like Nintendo has another hit on its hands. The Japanese gaming company launched the Switch 2 globally, with midnight store openings and long queues. Analysts expect it to sell 15 million to 20 million units, in line with its FY guidance, and it’s already being hailed as “a catalyst for the next wave of video game industry growth.” It’s especially impressive and indicative of a strong global fanbase, considering that Nintendo required 50+ hours of Switch gameplay to qualify for presale eligibility.
Notably, the social elements of gaming is highlighted in Nintendo's marketing for Switch 2, with ads pushing online co-playing features. This strategy signals Nintendo's recognition of the growing importance of virtual community and shared experiences in gaming. As The New York Times noted, Nintendo has been emphasizing Switch 2’s online streaming functionality, which includes voice chat and the option to connect with a separate webcam, allowing gamers to play together from the comfort of their own homes.
Related: A night at New York’s biggest Switch 2 launch event at the Union Square GameStop [The Verge]; Nintendo is updating even more games for the Switch 2 [The Verge]
Disney+ Expands Subscriber Perks, Including Movie Premieres [Bloomberg]
Disney is expanding its perks program for Disney+ and launching a similar initiative for Hulu to deepen subscriber loyalty. These programs include discounts on Disney experiences, partner offers with brands like DoorDash and Duolingo, and a chance to win tickets to events like Comic-Con and the Lollapalooza music festival. The goal is to reduce churn and shift focus from raw subscriber growth to long-term profitability.
Disney’s evolving perks strategy is indicative of a continuous evolution of the “super bundles,” namely, subscriptions that go beyond media content to include lifestyle, travel, and other real-world experiences. By tying streaming services to tangible, offline benefits, brands can create stickier customer relationships and build brand equity. As competition intensifies and growth plateaus, expect more platforms to bundle exclusive perks into loyalty ecosystems that resemble Amazon Prime’s cross-category appeal.
Related: YouTube creators are making longer shows for TV viewers [Bloomberg]; Grocery chain Kroger is offering complimentary subscriptions to Disney streaming services via its Boost membership program [Grocery Dive]
Nike to Return yo Amazon, Raise Prices [Marketing Dive]
Much has been written about Nike’s failed pivot to a D2C model and the consequences of pulling back from wholesale retail channels, both online and offline. Now, Nike is set to make amends by returning to Amazon after six years away. (In 2019, Nike stopped selling directly on Amazon following a two-year pilot aimed at combating counterfeits.) In return, Amazon is set to address the counterfeit issue by kicking all 3rd-party Nike sellers off its site.
As analyst Ben Thompson points out, Nike’s D2C pivot was strategically coherent, even benefiting briefly from the Covid-era boost to ecommerce, but fundamentally misaligned with the market. In order to shift to a primarily DTC model, Nike replaced brand marketing with sales-driven digital ads. But it underestimated how much consumers still rely on in-store discovery and offline brand touchpoints, and ended up weakening its physical retail presence and emotional brand equity, thus opening the door for competitors.
Nike's return to Amazon signals a broader industry trend where brands reassess the balance between DTC channels and third-party marketplaces. Rejoining Amazon allows Nike to reestablish a high-traffic, lower-friction distribution channel while regaining control over pricing and presentation, which is more important than ever for an iconic legacy brand like Nike.
Related: Amazon to spend $4 billion on small town delivery expansion [CNBC]; Amazon’s R&D lab forms new agentic AI group [CNBC]
Situational Awareness:
ChatGPT introduces meeting recording and connectors for Google Drive, Box, and more [TechCrunch]
ChatGPT might not know your job, but now it’s sitting in on your meetings and organizing your files anyway. OpenAI says it has 3 million paying business users, up from 2 million in February, CNBC reports. ChatGPT’s latest enterprise features reflect a broader ambition to become a central layer in workplace productivity. For enterprises, this could reduce manual note-taking and make cross-platform knowledge more accessible—but it also introduces familiar concerns around data privacy and over-reliance on automation.
AMC Networks inks deal with AI company Runway [The Hollywood Reporter]
AMC Networks has signed a deal with Runway to use its AI tech to generate marketing images and help pre-visualize unproduced shows, the first cable player to work with Runway. Generative AI can be a powerful tool for pre-production storyboarding and visualization. However, relying on AI-generated imagery for marketing might risk undermining creative originality and brand identity at a time when audiences are increasingly attuned to, and often skeptical of, AI-generated content.
Meta prioritizing ultralight headset with puck for 2026 over traditional Quest 4 [UploadVR]
The Quest line is clearly being deprioritized in favor of something closer to smart glasses in terms of the form factors. Meta also reportedly had talks with Disney, A24, and other companies about developing exclusive content for a premium VR device it plans to launch next year for less than $1,000. It remains to be seen if the exclusive content is intended for the ultralight headset or a future Quest headset.
Nielsen strikes WNBA measurement deal, largest ever for women's league [Axios]
As Axio points out, this agreement marks the first time that Nielsen has agreed to measure the WNBA's ratings officially as a client alongside the NBA. Women's sports have recently seen a significant increase in popularity and financial success. Portland-based Sports Bra bar, dedicated to showing women’s sports, recently announced plans to open new locations across multiple cities in the U.S.
Temu and Shein have slowed significantly in the U.S. amid tariffs and the closure of the de minimis loophole. Per data from Sensor Tower, daily US users of Temu fell 58% in May; the US closed the “de minimis” loophole on May 2, and Temu then slashed its US ad spending, Reuters reports.
Google’s latest AI video model has seemingly stirred up a lot of public interests. Google DeepMind CEO Demis Hassabis revealed that “millions of videos” were generated with Veo 3 in the last week, following an expansion to over 71 new countries.
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