Daily Intent

Ladies and Gents, this week we must honor a life that continues to compound greatness, my Grandpa Lydon.  He celebrates 80 years of life this Sunday.  All of his descendants are so very thankful for all that he continues to share and impress upon our lives.  Thanks Grandpa and Happy Birthday!
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Once again my childhood has served me well in creating a frame of reference! 

A CNBC special has me back to video games!  Ladies, hang on before you skip to the Word of the Week.  These lessons could serve you well.  Besides, you comprise 39% of all gamers (Btw, 60% of Americans play video games, with a large majority being over 18 years old.).  Crazy, but true. 

The television special covered the transformation of the gaming industry beginning with the infamous Atari.  Mario and Nintendo soon scaled the flag pole to top console, causing Sega to scoot forward on the back of Sonic.  Then Sony Playstation II and its “it’s like you’re in the game” feel used the CD to spin it’s sales upward.  The war had begun.

Now Sony, Nintendo and X-Box share the market. 

The story here is not one of competition.  It’s one of an unknown company seeing the potential amidst the competition. 

Enter Electronic Arts and the incredible business of “Licensing”. 

Whoever owned the licensing of the hottest games was the gatekeeper.  They controlled which arcades, hand held devices, computers, and game consoles could play their game. 

EA Sports began negotiating licensing contracts with John Madden, ESPN, Collegiate Licensing Company, FIFA Soccer, Tiger Woods and more. 

The greatness of it all is they have created a business that essentially acts as a residual.  These games are intellectual property.  And people have to pay to copy or use them. 

And every time one of the major game consoles changes its product, “Winner winner, Chicken Dinner”, EA Sports knows they’ll be seeing profits skyrocket. 

So as you will be reminded in our news this week, we are a litigious society.  Use this to your advantage and create a product of high demand and easily licensed.

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Thank you all that attended Sean Mason’s Negotiation Seminar Monday.  For those that didn’t make it, not to worry.  It was such a success, we will be putting on another Negotiating Seminar this next month, building upon what we learned.  Date to be determined soon.  May use this as an opportunity to Inform and Connect.  
Word of the week: KIPPERSKids In Parents’ Pockets Eroding Retirement Savings

“A slang term referring to adult children who are out of school and in their working years, but are still living at home with their parents. These parents face the challenge of managing their own finances and planning for retirement while dealing with the added expense of providing for adult offspring. 
 
 According to recent studies, most parents report that having KIPPERS is a pleasant experience - they like living with their adult children. However, it usually results in the parents saving less than they otherwise would for their retirement.

Contrast this to the situation of a married, working couple with no children at home, where discretionary income is often higher and saving for retirement is easier. This demographic group is sometimes referred to as Dual Income No Kids (DINKs).”  -Investopedia

Did you notice the reference to an acronym we’ve already learned?  It’s all coming full circle!

  Six points to ponder:

1.  Nationwide existing home sales fell 2.6% year over year.  Median prices rise. 
2.   We’re two short steps away from a Housing Stability Bill to become law. 
3.   Today the nation’s minimum wage increased to…drum roll…$6.55!
4.  Amazon’s net doubles powered by toy and international sales. 
5.   Obama takes show on the international road.  Israel, Germany….
6.  The Shark, Greg Norman, couldn’t navigate the storms of days three and four at the British Open, leaving room for the Irishman Padraig to declare Guinness the international beer.  Two years in a row. 

Positives:

•      There have been many options for the government to support the housing woes.  This bill, though not perfect, seems to at least protect tax payers from paying an estimated trillion dollars in the long run were Fannie and Freddi to fall.  $25 billion is the estimated cost.  $625,000 could be the new conforming limit moving forward, rather than $417,000, post 2008.  
•       The bottom rung of our workers are getting a 70 cent raise. 
•       Amazon’s numbers prove people are beginning to save on gas and start spending from home.  Their promotion of free shipping, helped bolster these numbers.  Kind of a no brainer for shoppers. 
•      With Obama’s worldly ventures, we may get a glimpse of how he is received in the foreign policy arena.  Do they appreciate his optimism?  Does he know and understand our neighbors?  Business partners?  etc…

Negatives:

•      11 months of housing supply doesn’t give much hope to a near end to the housing slump.  However, this does mean we’re in a heavily weighted Buyer’s Market.  You might start looking for Great Deals now in preparation!
•      The housing bill means more laws, and being a free market supporter and believer in the American inventiveness, I’d rather see it all correct on its own. 
•     Increasing the minimum wage, may actually keep people out of jobs.  Employers are already experiencing inflationary prices in health care costs, they may elect to have a current employee work harder, than higher a new employee at the new minimum wage pay. 

Live and Be Well,

 Jeff Bochsler