The Vergecast - How tariffs will change your gadgets

Episode Date: April 4, 2025

It's a Nintendo Switch 2. What could it cost, a thousand dollars? In this episode, Nilay, David, and The Verge's Richard Lawler talk through why we don't really know. But first, we talk about the Swit...ch 2, and some of the reasons we're excited — and maybe just a little concerned — about Nintendo's new console. This is likely to be the most interesting device of the year, and we learned an awful lot more about it this week. We also talk about Microsoft's 50th anniversary, the fate of TikTok, and other gadget news. Then we get to tariffs, with the help of Tuneshine creator Tobias Butler, who explains how tariffs affect the way hardware companies do business — and how they're navigating the current uncertainty. After that, in the lightning round, it's time for a little Brendan Carr is a Dummy, followed by the latest on Tesla's sales numbers, Alexa Plus, and Coyote vs. Acme. Further reading:  The Vergecast was nominated for a Webby, which means we can win a Webby People’s Voice Award and that’s voted online by you! So we’d love your support. You can vote at the link:https://bit.ly/3DXFgpN The 50 best things Microsoft has ever made The Nintendo Switch 2 arrives on June 5th for $449.99 Nintendo Switch 2 hands-on: it’s all in the games Nvidia confirms the Nintendo Switch 2 has DLSS and real-time ray tracing Nintendo Switch 2 specs: 1080p 120Hz display, 4K dock, mouse mode, and more The Nintendo Switch 2 has a camera accessory for video chat Nintendo’s Switch 2 ‘C’ button is a Discord-like GameChat feature  Verge staffers react to the Nintendo Switch 2 Here’s everything Nintendo has revealed about the Switch 2’s Joy-Cons Nintendo’s Switch 2 preorder process has strict requirements to thwart scalpers ‘TikTok America,’ Amazon, and other rumors about who might buy TikTok From The New York Times: Trump Set to Meet With Top Aides to Decide TikTok’s Fate From Wired: The Founder of OnlyFans Wants to Buy TikTok Tuneshine – Your space, your music Donald Trump announces tariffs that could raise the price of almost everything you buy Reciprocal Tariff Calculations | United States Trade Representative Trump’s new tariff math looks a lot like ChatGPT’s These are the tariffs about to hit Apple. Chris Murphy’s Bluesky thread Trump’s tariffs are ‘a debacle of epic proportions’ for the auto industry T-Mobile closes Lumos deal after dropping DEI | The Verge E&C Democrats Launch Investigation into FCC Chairman Carr’s Repeated Attacks on the First Amendment Sony’s new Bravia lineup includes its ‘King of TV’ successor Tesla’s sales plummet 13 percent as Musk backlash grows Best printer 2025: just buy a Brother laser printer, the winner is clear, middle finger in the air Alexa Plus just launched in early access, but it’s missing some features Coyote vs. Acme is finally coming to theaters Learn more about your ad choices. Visit podcastchoices.com/adchoices

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Starting point is 00:00:00 Support for the show comes from Retool. Too many companies run critical operations on duct taped spreadsheets, Slack workflows, and whatever else they could cobble together. Not because they want to, but because building internal tools means weeks of waiting on someone else's backlog. That's where Retool comes in. Build custom internal tools just by describing what you need. Prompts something like,
Starting point is 00:00:22 Build Me a Revenue Dashboard on our Salesforce data. And Retool actually builds it on your company's data, in your cloud with enterprise security built in. Go to retool.com slash Verchcast. We all need to retool how we build software. What's up, y'all. I'm Skyler Diggins, seven-time WMBA All-Star, Olympic gold medalist, and mom. And I'm Cassidy Hubbard, host and reporter for nearly 20 years covering the biggest names and stories in sports and mom. And this is Am Mom, a community for athletes, game changers, and moms of all kinds.
Starting point is 00:00:59 dropping May 14th. Tap in with us. Do you ever wonder what's in your lotion? If you look at the back of the bottle, it could contain more than a dozen ingredients. And they may not all be regulated. The threshold is so high that only 11 cosmetic ingredients have been restricted by the FDA since 1938.
Starting point is 00:01:23 This week on Explain It to Me, the chemicals lurking in your cosmetics. New episodes, Sundays, wherever you get your podcasts. Hey, everybody, it's Neil. I, before we start the show, I just want to say we were nominated for a Webby Award, which is very exciting. We would love to have you go vote for us. We'll put the link in the show notes. Once again, we'd love to win this Webby.
Starting point is 00:01:43 We'd love your support. Go vote for us at the Webby Awards. Hello, and welcome to the Verdechast, the flagship podcast of adding Greek letters that cancel each other out to an equation to make yourself look smart. Who among us? We're very lucky in that we have an audience where you can make that joke, and everyone got it, and they got it on multiple levels. Like there's a realistic chance the Vergecast audience is like, I should make this equation more complicated, like in your day-to-day lives. It's like the thing where it's like, did you ever have those math problems where you just sort of in your brain, you just like know the answer? But then it's like, show your work.
Starting point is 00:02:17 And you're just like, I'm going to just make up a bunch of things that happen between here and there. It's six, all right? I know it's six. I'm not going to tell you why. I know it's six. It's six. It's not important why it's six. But it's six, leave you alone.
Starting point is 00:02:29 And the answer is crash the world economy. All right. I'm your friend, Neli. David Pierce is here. Richard Lawler's here. Hey, good to be here. Welcome back on today of all days, my friend. There's a lot going on this week.
Starting point is 00:02:41 David keeps mumbling. We have too much show. We have a lot of show. We're going to talk about tariffs. We're actually, we've invited Tobias Butler, who is the sole proprietor of a gadget maker called Tuneshine, which I love. We've talked about it in the show before. I wanted to bring someone on to talk about the real impact of tariffs. So we invited somebody who makes hardware, really cool hardware that I love, to talk about what's going to happen to his business.
Starting point is 00:03:03 That's going to be fun. We've got a lightning round. We've got a podcast for the podcast that people love. It's Microsoft's 50th birthday, which there's a lot going on there. So I'm saying, we have too much show. Like, if everybody could just stop. David, the Nintendo Switch 2 is also out this week. And then on top of that, sometime this weekend, TikTok is going to get banned again or sold directly to Jeff Bezos, which he will operate then from his yacht.
Starting point is 00:03:28 Do you know how long ago the Switch 2 announcement feels to me right now? As we're sitting here, it was 28 hours ago, give or take. And you could convince me it was like in January at this point. On top of all of that, we're going to do a full hour on the fact that I once again recommended brother printers to the internet and what that says about the state of the media ecosystem we now with. So buckle up, five-hour Vergecast. We should start with Microsoft because on the day this show comes out, April 4th, Microsoft
Starting point is 00:03:58 will turn 50 years old. which makes me feel like an ancient wizard. That is just an old, old number. You were, you were just graduating from college when Microsoft started, right? I sat Bill Gates town. I was like, listen here, young pup. No, it's incredible. Microsoft is one of those companies that we once covered as sort of an upstart, a challenger,
Starting point is 00:04:22 now it is an institution. It is the infrastructure that all the other companies run on with Azure. We covered the Balmer era. The verge started, like, with Windows phone. Like, the idea that Windows phone would be a meaningful competitor provided us an awful lot of traffic in our own, including some of our most contentious reviews of all time when we would write, hey, this Windows phone is not very good. Oh, yeah. Boy, people had feelings. The Lumia comments were, like, nothing I've ever seen on tech.
Starting point is 00:04:54 Yeah, for a long time, it was the most comments we ever got was on a review of the, like, Lumia 900 or something. they're gone now. We switch commenting platforms, so you can't. And I think that's good. I think that is probably for the best that you can't go back in a room. Like everyone, you know that right to be forgotten? Everyone can just forget that one. But here's what I want to do in honor of the birthday.
Starting point is 00:05:15 We don't want to go too far into the history of Microsoft. We published a list of the 50 best consumer products Microsoft has ever made. I think most people think we got it right. There's not a lot of, there's not as much heat as you would expect. there are some people who vehemently disagree with our ordering. But the stuff on the list, I think everyone agrees is right. Stuff. I was sort of impressed that we managed to get to 50, and I look at most of these 50, and I'm like, yeah, sure, it's pretty good.
Starting point is 00:05:42 There's only a few that I'm like, I don't know that this belongs on any best of list of anything. But for the most part, it's Microsoft has a better run at this than I anticipated. I was talking to Jake who made this list with Tom, and he was like, look, you know, lists are there to be argued about it. Because I was like, I want to add more stuff. Like put this in an honorable mention category. And he was like, No. I'm going to say it. Windows Media Center.
Starting point is 00:06:07 Yeah. All right. So here's the thing. Into the boy. Richard and I were there during the Windows Media Center days when we were at Engadgett together. Microsoft would ship you a PC with a cable card decoder in it. There are people listening to this show, young people, who do not understand that Microsoft thought it could turn a Windows PC into a cable box using middle, and hardware developed by a consortium of cable companies that were forced to do it by the United States government.
Starting point is 00:06:34 And they thought that this would work. Like a lot. They super thought this would work for years. We spent a lot of time on that. We all invested a lot of time into that idea. You would call the cable company and be like, I need this code to activate a cable card in my PC. And they would just be like, no, no, we're not going to do it. There is something to be said for Microsoft just has a series of ideas that it just keeps doing over and over.
Starting point is 00:07:04 And one of its ideas is television. And that's as far as that idea ever goes at Microsoft, it seems. But they're just like television. The only reason we talk about CS every year is for years, Bill Gates would show up in Las Vegas and give a speech where he'd be like, here's what I'm going to do. I'm going to put a PC in the living room. And this idea is. called convergence, and then soon there will be a PC in your living room for like a decade. And then he was like, what if it was an Xbox?
Starting point is 00:07:34 And he was like, what if the Xbox was a cable box? What if the Xbox had IR Blasters? And that didn't work. And eventually we got to, what if we put basically a Raspberry Pi in your living room, and it ran Roku software. And I was like, oh, that was way better than a full-on PC. But this is real. It drove the tech industry for years.
Starting point is 00:07:52 and Richard and I had to cover it. Richard, formerly the editor of EngadgetHD, an entire subsection of Engadget that we created because Microsoft was like, what if we put a PC? So Richard, I told you you had to pick from this list your favorite Microsoft product. You can't pick Media Center.
Starting point is 00:08:15 That's you doing honorable mention. See, that's how the media does the censorship. That's what's going on. So I will turn it back on you, and I will include Microsoft's most successful effort at bringing a PC into the living room, the Xbox 360. Oh, that's pretty good. It almost kind of worked because Netflix happened.
Starting point is 00:08:34 HD DVD Drive did not so much work, but the Netflix app came out on the Xbox 360, very wildly successful. And that whole Red Ring of Death thing and all the Xboxes that they had to take back and fix, we're just not going to talk about that. Yeah, set that aside. HGDB and the Red Ring of Death.
Starting point is 00:08:50 You set that aside. had 360 was great. 360 also notable because it was a skunk works project inside of Microsoft under an executive Jay Allard who was given special permission to not use Windows or Intel chips. So it was a custom operating system on custom chips and that's why it was good. Wow. This is a true story. And no one at Microsoft went, oh, if you need special permission to do this,
Starting point is 00:09:15 we might have other bigger problems? Like that's, no? You know, I think many people, Microsoft did that. Well, sure. And then they got rid of their CEO, and they got a new CEO who solved a bunch of problems. Yeah. That was also where they got, remember the courier concept?
Starting point is 00:09:34 That's on this list. It was a concept video. I don't think they ever made a project. I don't think they ever made it a product. There was just a big book. Like, you could open like a notebook and write in it and it was a tablet and associate your iPad killer. Also, Jay Allard saying, what if I didn't have to use Windows?
Starting point is 00:09:50 And that was a bridge. too far, my friends. They had been burned by putting windows in the living room so many times. They let him do the Xbox 360. But when he was like, what if I made an iPad that was good out of not Windows? They're like, death to you, sir. And that was the end of that. So, David, what's your story?
Starting point is 00:10:08 So I did not expect to feel the feelings that I felt about this particular one. But the one on this list that I most went, oh, as soon as I saw it, was the surface headphones. Did you all ever have the surface headphones? No. No, but they had the wheel, right? They had the wheel. So they sounded like fine, but they had unbelievable battery life when unbelievable battery life in like a set of wireless noise cancelling headphones was not a guarantee.
Starting point is 00:10:37 And they had the dials. One side was for volume and one side was to dial up and down transparency, basically. So you could like, you could change how much of the world you could hear and how much you could just be sort of ensconced in noise cancellation. And still to this day, that is by a mile the best interface on a pair of headphones I've ever seen. Everybody else is like weird buttons on the side that you can't find or they do the Sony touch stuff that's just a nightmare. Like, Microsoft just did it right the first time. And I think they made two pairs of the surface headphones if memory serves. And then just stopped because that's what Microsoft does. Why keep doing
Starting point is 00:11:17 our good things when we can make more windows? But I loved those headphones. I, I still have a pair around here somewhere. I'm sure they don't work anymore. But, like, I used those for a really long time because they were super comfortable. And just being able to, like, walk around or be on a plane or whatever and just sort of spin it back, talk to somebody, spin it forward. Amazing. I love those headphones. You know, where they died is because Microsoft failed to make a mobile phone.
Starting point is 00:11:40 And the entire headphone industry requires you to own a phone in order to make a successful group of headphones. Whatever. I'm just saying. I mean, there is that. That's your answer. Yeah. I know there's going to be some people who tell me that Sony and Bose are doing fine,
Starting point is 00:11:53 but that's just because Apple keeps forgetting to rev the AirPods Max. This is real. And also the AirPods Max are heavy. Anyway, the surface headphones, legitimately good, love a wheel. Very Microsoft to be like, what if there was a mechanical moving part
Starting point is 00:12:09 on these headphones? If they had just put a cable card in your headphones, everything would have been fine. Okay, so I'm going to pick two. They're kind of like both. You're going to pick two. They're both on the list. They're just low on the list.
Starting point is 00:12:23 Wait, I'm sorry. So Richard can't cheat. Richard did cheat. He provoked an entire conversation on a cable card, which admittedly is very easy to do on this show. Richard, we're doing tariffs on Eli. This is what's happening. So I'm just going to pick the one that I think everybody expects you to pick, which is the Zune. The ill-fated, but beloved Zoon, a product that gave us the word squircle.
Starting point is 00:12:48 It's a real thing. product which boldly asked the question, what if this was brown? It's true. Those are their ideas. Let's make it brown. And instead of a click wheel, have a squircle. Not great, but introduced what the design language that would become Metro, which is now everything.
Starting point is 00:13:07 And I still, to this day, have a limited edition one of 5,000 Joy Division Zoom, which is, it comes in a giant box that, you know, has the unknown. pleasure's art on it. It has every Joy Division song on it. And every now and again, I open the box. When you open it, they had Peter Saville designed the box, Joy Division and you order's designer. So you open it and it like lifts up. It's not elegant. It's like a big cardboard box and like a bunch of now it's old. Like a bunch of brittle cardboard is like creaks at you. But it like lifts up and you can like look at a Joy Division's in. And then you close it and you put it away until someone puts Zune on a list of 50 Microsoft products and you remember the fact that you pay too much money for this. thing. Is that one of those things that you like kept in the box because you're like someday
Starting point is 00:13:53 when Joy Division is the biggest band in the world, this is going to be worth something. One day my daughter will come home wearing this t-shirt and I'll be like, you know, I have a Joy Division Zoom. Have you ever listened to one of these songs, Enlady? Yeah, your Heinecube was selling for like thousands of dollars on eBay. So, you know, wait it out. That's true. Although I will never, the Heinecube is like in the Vox Media office. By the way, once again, thank you my friend Gabe, who I effectively. stole this back from. It's there.
Starting point is 00:14:22 It's fine. It's there. The Joy Division student lives and Spock's in my closet. That's never, that's very precious to me. Okay, so that's the main thing. But the one I insisted to be on this list is Microsoft Word 5.1 for the Mac,
Starting point is 00:14:35 which was such a good word processor that when it was replaced by Word 6, which sucked, people kept using it for one full decade. They were like, nope, I'm not upgrading to Word 6. I'm not going to Word 2,000. 2001 for Mac, all the ones, there was this weird period where Microsoft, the years that they revved the Mac software were different than the years they revved the Windows software. So you'd have Word 2000 and then the Mac would be like, Ward 2001. This made no sense to anyone. But people just kept using Word 5.1 for a decade. I encourage you to look at the screenshot. It is archaic. It's in black and white. It was a perfect piece of software. Like a legitimately perfect piece of software. I was just going to bring up the screenshot because it's, it's a
Starting point is 00:15:19 It's actually like if you haven't looked at it. And again, I encourage you to. We'll put it in the show notes. If you were to draw a cartoon making fun of how ridiculous word looks with like billions of buttons and everything, there's like 14 scroll bars here and all of it is completely inscrutable. And then there's like three lines of text. Like if you wanted to make fun of the design of word, this is perfect. Every one of those buttons.
Starting point is 00:15:43 If you look at every one of those buttons, you know exactly what they do and they're right in front of you. And there's not a single bit. of wasted or hidden interface. There are five things here that you could convince me all make the space bigger between lines. No, but they do in different and meaningful ways. I'm telling you. Also, you click the buttons and then the thing happens.
Starting point is 00:16:05 And then you click the button right next to it that does the other thing. This is why it's perfect software. Because everything happens. I gotta disagree with you there, man. We have to embrace debate on this show. We got to go in that direction. How can you go Word 5.1 and not Microsoft Excel?
Starting point is 00:16:20 I think Excel's got to be on this list, but like as a concept, not as an individual version. No, no, not actually using it, just the idea. It's the idea of Excel. Excel is not on this list. And I think the fact that we put Clippy at 50 and Bob at 49 and did not put Excel on is a statement I'm very glad that we made. I don't think you'll notice that Excel's on the list. All right, that's the show, everybody. We got to go.
Starting point is 00:16:46 I guess Excel technically is business software, not consumer software. That's my argument for you. All right, that's Microsoft. Go read the list. Let us know what you think we got right or wrong or what you put on the list. Congratulations to Microsoft for inching ever closer to oblivion. Can you tell them thinking about aging? That's what's happening.
Starting point is 00:17:07 But congratulations to Microsoft. Presumably they'll be around for another 50 years because they make software not hardware, and I don't know if the tariffs will apply to them. All right. Let's talk about the Switch 2 for a minute. I think Ash is going to be on the show. Ash Parris is going to be on the show real soon to go in-depth. She's actually played with it.
Starting point is 00:17:23 She's got a number of hands-on impressions. You should watch her YouTube video. But we should still talk about it. David, what's going on on on Switch 2? Yeah, first of all, Ash, the YouTube commenters have been loving Ash these last 24 hours. And it's delightful and highly recommend watching. She did a social video and a YouTube video. They're both very good.
Starting point is 00:17:42 She and Andrew Webster have both used the thing. and both came away from it, I think, like, pretty excited. We finally have details on the thing that we wanted Nintendo to make, which is just a switch but better. So there was a direct this week, which is what Nintendo calls its periodic product announcements. And we got a bunch of new specs. We got a release date.
Starting point is 00:18:05 The thing's coming out on June 5th. It's going to cost $450, which made a lot of people feel a lot of feelings, and we should talk about that. For now. Well, it's going to cost $500. Yeah. $630. Yeah.
Starting point is 00:18:20 Give it time. By the time it ships, it'll be $11,000. Well, you're going to buy the Mario Kart bundle version, right? You're not going to buy this and not get Mario Kart. That's true. Especially because Mario Kart on its own is $80. But anyway, Richard, I'm going to list all the specs I can remember off the top of my head
Starting point is 00:18:36 and you're going to fill in the rest. Ready? Okay. So big changes. It has a 7.9 inch screen, which is substantially bigger. before. The thing is the same thickness as the previous switch, which is nice, but it is
Starting point is 00:18:48 like noticeably physically larger. 1080p screen, not OLED, which again made people feel feelings, but there will inevitably be a switch to OLED at some point in the future. That's what Nintendo did with the switch. I'm sure it'll happen again. New joycons
Starting point is 00:19:04 that attach magnetically instead of the kind of wacky, sliding mechanism that they've had before. There's a new whole like video chat system. There's a camera and they're also going to do third party cameras that are separate. Microphone in the thing.
Starting point is 00:19:19 You can talk and chat all at the same time. Lots of focus on online. There's new controllers, all kinds of new stuff, but it's just a big rev on the switch. And Richard, you were saying right before we got on that there was chip news, right?
Starting point is 00:19:31 I missed the chip news. Yes. InVIDIA put out a blog post a day after Nintendo announced a switch. A, confirming that it again has an Nvidia chip inside of it. Because it says Nintendo, they didn't really go into details on specs, but they went into far more detail
Starting point is 00:19:44 than you would generally expect for Nintendo, confirming that it has DLSS, NVIDIA's technology for kind of rendering things and downscaling them to make them look better. Using scaling and AI to make things look better and smoother than the hardware kind of should be capable of.
Starting point is 00:20:01 Some people call it fake frames. I think it works really great in some situations. And others, we'll see. But it's also going to be capable of real-time ray tracing. The chip has Nvidia's RT cores and tensor cores they use to do all this kind of AI magic probably has some relevance to the things
Starting point is 00:20:16 they're doing with video and with audio, like there's a mic on the device itself so that you can have it set up in the dock and use it to chat. So I'm sure they're doing noise canceling and all the other features that we've seen from Nvidia over the years within this thing. So I am very interested to see how it performs really. It does seem like this may
Starting point is 00:20:32 this may not be like a huge high-end processor system that they're getting from Nvidia, but like this device actually has kind of a lot to do. And one of the things Ash and Andrew were saying is, like, a lot of the games that they were playing felt bigger and more detailed. And, like, they are games designed to be run on much more powerful hardware than we have in the last version.
Starting point is 00:20:55 And so, like, it was a tegra chip inside of the first one. Yeah, I'm kind of wondering about that chip overall, because it was a tegra. And that's all related to fact that Nvidia thought it would be a smartphone competitor to Qualcomm. And that just didn't pan out. Right. And so that was the chip back then.
Starting point is 00:21:13 And now, you know, they're saying it's a custom chip. We should talk about DLSS a little bit in this context. Because it's kind of fascinating to see it brought to a mobile device in this specific way, where you get all, like, the better visual fidelity that Ash and Andrew have talked about. And maybe that's just because of DLSS. Like, the games haven't been Switch 2ified. They're just getting upscaled by A. by this chip.
Starting point is 00:21:40 Usually that's like, I wouldn't say it's power hungry, but it's, that's power intensive, right, to run all of that after you've rendered the game, which is not something we've seen, I think, really in the mobile context. Which could also contribute to the fact that it has, I think, a shorter battery life than the switch one from what we've seen from the specs. So it seems like, it seems to me like this is a little bit more of a dock friendly machine than the original one. And I do wonder what Nintendo has learned from the first switch that made it think that. Because that was my exact reaction too. And even the way that they talked about it, this is much more like a thing they expect you to play on a table or in front of a television or something else. Like even the mouse gesture thing is not a thing you do when you're like sitting on the couch playing video games. Like I assume what Nintendo has discovered is that it is like a sometimes portable device.
Starting point is 00:22:36 but a mostly docked device. And I think if you're, if you know that or you can assume that, you get to lean on power a little more and battery life a little less, which I think is the opposite of what Nintendo did the first time. Like, especially for 2017, what it managed to get out of the battery was, was reasonably impressive. And it does feel like they've flipped that balance a little this time, which I think is probably the right call. I'm dying to know, it's funny, we talked about Windows Media Center.
Starting point is 00:23:03 Uh, all this stuff they're adding to it. the mouse mode, the camera, the video chat. It's all getting away from what made the Switch in particular such a huge success. Here's this dedicated device for playing games, the best games that, you know, the console makers have, or at least the most well-crafted games that are pretty singular experiences with franchises people love. Not it's a mouse. Right? And like Nintendo is very good at like weird interaction paradigms. Like they did the entire we for God's sake.
Starting point is 00:23:36 Like, there's a part of you're going to play Mario on the go. And then there's another part that's like, we're going to talk about the C button a lot because that's the video chat button. And that just seems like now we're competing with phones. And there's no reason to do that. Just to be clear, by the way, the video calls are optional. You have to buy the optional camera. If you just push the C button, it's voice calls. But this thing is very social in a way I think is really interesting.
Starting point is 00:24:02 And like I was going back on watching all the old first-gen switch ads. they're very much like people out in the world playing on this console together, like hand your buddy a JoyCon and you can like hang out on the beach and play games. And this one is like, you're in your living room, but you're still hanging out with your friends who are not in your living room. And it's like there's just something that happened in the eight years that is both like, Nintendo's probably right. I think there is something that happened in the eight years between the Switch 1 and the Switch 2.
Starting point is 00:24:28 It was called COVID. It was a whole thing. We all stopped going outside. And that was when they designed their system. That's a really good point. that if you rewind to the beginning of the like, what is the switch to meetings, it was probably a bunch of people sitting on Zoom calls.
Starting point is 00:24:44 That's, yeah, this is the first of the great COVID hardware wave is like super interesting. The mouse in particular gets me is like, here's this big interaction paradigm that requires you to have a desk. Like, how are you going to use this mouse? You're going to put it on a desk. Ash was not a huge fan of this mouse. We'll see how it plays out.
Starting point is 00:25:03 It just seems like the switch is getting a little, little bit bigger, right? Like, conceptually, it's going to do a little bit more stuff than it did the last time, which is maybe good. Like, that's the story of products and that's how products have developed. But it, I feel like the switch was as successful as it was because it was relatively inexpensive. It had Zelda and Mario and all the rest of the Animal Crossing. And ultimately, it wasn't trying to do more than the things you needed it to do. And I think that's what we're going to find out is whether this is the Wii where it brought people together with kind of a new control dynamic that the other video game systems weren't doing. so much then, or if it's the Wii
Starting point is 00:25:37 where it costs too much and the add-ons they put on it isn't something that anyone wants. Do you think there's a real risk that this is the Wii U? Because I really don't. Like I look at this and I'm like, this is, they're doing some weird stuff, but fundamentally, what everybody wanted from them is a better switch and it really looks like this is a better
Starting point is 00:25:53 switch. Do you think there is actual, like, this was a mistake possibility here? It just depends on how much it costs. If this thing breaks $500 because of tariffs in big ways, Right? If it's, if it's, if it's, we're announced at what, 449. If it gets to 500 because of tariffs, I'm like, oh, it sucks, you know, whatever.
Starting point is 00:26:12 If it gets to $600 because of tariffs, it starts to get, that's pretty expensive. Right? And then you still got to buy games and all this, all these, you got to have a camera. You got to buy a new dollar. All this other stuff is going to start happening that'll make it too expensive for where it should live. And then I think you have to decide how much you love Mario. It might not be the we. It probably isn't the Wii. it might be the 3DS. No, that's all. Same way.
Starting point is 00:26:37 I think it's going to be, I think it's going to be, I think it's going to be a switch again. That's your, your prediction is three yes. Or maybe, maybe the 2DS. I don't know. I can't remember which one.
Starting point is 00:26:46 Game Boy Pocket. Book it. Game Boy Pocket. Okay, Game Boy Pocket. Every time it comes on the show, I will remind our high school listeners, it fits perfectly into the slider case with Ti-82 calculator. Something that I learned in 1998.
Starting point is 00:27:03 Every part of that. reference will make no sense to people in high school now. I love it. No, they still sell. There's a store in our town in our little Westchester town, the stationary store, stationary store is just a racket that sells TI calculators to high school students. That's its only business. Are they still like 150 bucks? Yeah, they still cost exactly the same. Unreal. And it's every high schooler is required to buy one of these calculators and they'll buy them at the stationary store and I'm just there, you know, once a week being like, you know, gambler pockets slits right into that thing. Can you imagine when tariffs make the T.I.83 calculator like $245?
Starting point is 00:27:39 That's how you know that I'm old, is that I'm saying TI. 82 and everyone else has got the TI.83, which is slightly nicer. T.82 had a square case, which covered the Game Boy Pocket better. The problem, and I'm sorry to my high school math teachers, the problem is that when Ryan Navratel turned on the Game Boy, it still dinged. and then your calculator and Game Boy were taken away. Playing Dope Wars wasn't good enough for you. You needed a Game Boy. Did you ever code,
Starting point is 00:28:10 did you code your games right into the calculator, Richard? Of course. Hell yeah. Come on. I did, I dealt so much fake drugs on my graphing calculator. Are you kidding? All right.
Starting point is 00:28:19 Speaking of dealing drugs. Let's talk about TikTok. The foremost scourge of our nation's youth. Lots going on on the TikTok story. This weekend is the deadline. Saturday is the deadline. The deadline that was self-imposed by Donald Trump after the actual deadline that was imposed by our nation's Congress
Starting point is 00:28:42 and upheld by the Supreme Court. So Trump takes office. TikTok was banned, which means they just shut the app down as a stunt. Trump said, I'm giving you 75 days. Here's a waiver from Pam Bondi, the attorney general that says she won't prosecute you for breaking this law. Everyone said that was good enough, which is weird all into itself.
Starting point is 00:29:05 Totally weird. But here we are at the end of 75 days. There's a rumor that Trump is going to do something called TikTok America, where he creates a sovereign wealth fund out of stolen Bitcoin, as near as I can tell. And then that will buy a huge chunk of TikTok. Bite Dance will remain on the cap table, which might be illegal because the law says they can't control the app or the algorithm.
Starting point is 00:29:31 So I don't know what's going to happen there. The thing that I have been predicting would happen has apparently happened. Amazon has sent a letter saying they would buy TikTok. The founder of only fans wants to buy TikTok. Perplexity keeps insisting that it is a serious buyer for TikTok in sending extremely petty notes to Kylie whenever she notes that that doesn't seem realistic. Really? Yeah.
Starting point is 00:29:57 They are like, no, we're for real. And there's just nothing you can say. to an upstart AI company that really wants you to believe it can buy TikTok. And then there's Project Liberty, which is Frank McCourt and Alexis O'Hanian and Mr. Beast, and they've got whatever idea about putting TikTok
Starting point is 00:30:13 on the blockchain. Don't forget App Lovin. And Steve Wynn somehow is involved in that. I'm sure VirtCast listeners are aware of App Lovin. I'm excited for more people in America to wake up and be told
Starting point is 00:30:32 that a company called App Loven now owns TikTok. It's a lot. That's a lot. What do you think is going to happen? Okay, here's where I land on this, which is nowhere. I think the thing that I have come around to
Starting point is 00:30:47 is I think it is true that there is the money out there in the United States to buy TikTok in a way that would satisfy everybody. Right? Like, I'm increasingly convinced that there are actually lots of people who could gin up the money to make this happen relatively quickly. Like, it's every investor wants to be part of this. That's increasingly clear. Jeff Bezos just has to sell a support vote, not even the big vote.
Starting point is 00:31:14 Right. What I've learned by watching OpenAI is that, like, $100 billion is not that hard to come by. Like, you can just get it. You can have $100 billion if you want $100 billion. So I think that part I actually am, I thought for a while it was going to be impossible, that there was just no. Nobody who was going to be able to do it for a mix of like financial and antitrust agreement. I no longer think that's the case. And I think it's pretty clear that the Trump administration would happily just bend its antitrust rules for whoever it blessed as the new owner of TikTok.
Starting point is 00:31:44 There is still, still to this moment, absolutely no evidence that bite dancer China is interested in their part of this deal. Just not. Especially now that the tariffs have happened. Right. if what you need is the blessing of the Chinese government to do this, why on earth does that seem more likely to happen now than it did yesterday? Or three months ago or a year ago or the first time Trump tried to do this? Like, if anything, it seems to me the likelihood of this being possible has gone down over time for that reason.
Starting point is 00:32:20 And so I think, I think bite dance might be willing to call the administration's bluff again. And just shut that. And I, like, if I had to bet, I think it goes dark again. Richard. I think that the most important thing here is that we're having the wrong discussion about TikTok.
Starting point is 00:32:39 We're having the wrong discussion about bite dance, China, the Trump administration. The discussion we need to have is that we should buy TikTok. This is number one car chasing opportunity. It says $100 million is not hard to come by. Any of us will ever have in our lifetime. You see everyone's putting in bids for TikTok, why haven't we?
Starting point is 00:32:55 We need to put in a bid for TikTok. We could own TikTok. This is like, let's buy a bar. It's that conversation because we're getting to that late hour and we're saying, you know what? We could just buy a bar. I've had that conversation so many times in my life. Oh, yeah.
Starting point is 00:33:11 When I lived in a show. We're gonna start a band, buy a bar and buy TikTok. Okay, having been in a band, don't start a band. Don't do that. You will come to a point in your life when you have played the Metro in Chicago. You've reached all of your dreams and the only available next step is to spend in a van with the people in your band going to mid-size Midwestern cities. And you'd be like, that was a wrong choice.
Starting point is 00:33:33 Just saying. But at that same period of time, my life in Chicago, we would walk by an empty bar, like on the corner by my house, on our way home, hammered. And we would be like, we should, we should buy that bar, man. That could be the spot. Buy the bar. Buy TikTok. Historically bad idea.
Starting point is 00:33:52 Most of them go out of business. I feel the same is true about our bid for TikTok, Richard. I'm actually curious why there are not more bidders, right? This is a historically important asset in the American media ecosystem. I'm honestly curious why we haven't seen the New York Times or news corporation or whoever, Viacom on nowhere. Paramount Plus is now TikTok, right? Where is that energy from the media conglomerates that all are desperate for distribution?
Starting point is 00:34:25 Where's Netflix? Like, this is all stuff that would make sense for a bunch of these companies. I understand why Amazon wants TikTok. Because TikTok shop represents an entire marketing channel that connects to purchases that Amazon does not have. That is a meaningful. I don't know if it's a competitor, but it's just a place where people go to find stuff to buy. Oh, it's definitely a competitor. Amazon has been desperately trying to do TikTok for years now and with essentially no success.
Starting point is 00:34:55 And so, like, instead, if you just took TikTok and just plugged in the Amazon logistics system behind it, it's actually the cleanest fit of almost any of these things that I think of. Like, Amazon has the cloud services to make the infrastructure work. It has the business angle, which is all the shopping stuff that you just talked about. Like, it, it works. Amazon could buy TikTok and the whole thing would make sense immediately in a way that it's much more, there's much more of sort of an underpants known thing happening for a lot of these other companies. But I also think, I mean, the answer to a lot of these questions is because Trump won't allow it to happen, right? Like, he is so at the center of all of this. I don't know if that's true.
Starting point is 00:35:34 Trump wouldn't allow Netflix to buy TikTok? You think Trump would allow the New York Times to buy TikTok? Who, App Lovin, which is just a mobile advertising company that everyone has to say Applovin is like out here being like, we'll do it. Why not? Like, perplexity is like, we'll do it. Like, why, honestly, why wouldn't Netflix, which desperately needs a discovery mechanism, right? But they all do. Why aren't they in this mix?
Starting point is 00:35:58 Why isn't Apple in this mix? Like, it's just interesting to see how many people must have kicked the tires, right? They all have big M&A departments. They all have big, big business development departments. It's funny to see how many people are like, no, that's too messy. Social media is too messy. But you can see how any number of media organizations desperately need distribution, and they're just not in the game.
Starting point is 00:36:20 Somebody called Jeffrey Kasson. It's too hard to find. we just need to do Quibi again. Where's cats? By TikTok. By the way, we should point out, in all fairness to cats and Perkin Quibi. Not a sentence I thought I would ever say. Vertical micro dramas are apparently very popular in other countries around the world.
Starting point is 00:36:42 We should do a story on that. If Quibi had been free, it would have worked. Season two of Golden Arm is coming. I can feel it. Quibby was always 090, and that's my prediction. And that's life. Quibi was just early. I will point out, is it a take I will go to my grave with.
Starting point is 00:36:57 We are having exactly the same conversation on who will buy TikTok, except now there are some bids, but we're having the exact same conversation today as we did 75 days ago. And the deadline is tomorrow. As you're listening to this on Friday, the deadline is Saturday. It's the fifth. And there's still absolutely no indication that it's for sale. Like, this is a bunch of people standing outside of a house being like, I, like to buy that house and the person inside not selling the house.
Starting point is 00:37:25 This is not, you can't buy a thing that's not for sale. And there's no evidence at all that it is for sale. Yeah. Again, and it's just funny because the number of people who should be beating down the door to buy this thing should be, by all rights, much higher than it is. Yes. I do think, I mean, we've seen this before, like when Disney kicked the tires on Twitter. And I think, I think there are a lot of companies who understand the, the, the, mess that is social and just are not set up to do it.
Starting point is 00:37:54 Like, Netflix buys TikTok, and immediately becomes a completely different kind of company, right? And I think it's not crazy to sign up for that, but it's not just a thing you can do. Right, but every single time we have some streaming executive on Decoder or some product person from one of these companies on Decoder. I get notes from product people around the industry. They're like, you don't understand what they're all saying in every meeting at Disney, at Paramount Plus at Maxes. Why can't we have a YouTube? Yeah. Like they're all staring at the thing that is going to kill them. Down the line. Like at Disney, there are meetings like, why don't we have a YouTube?
Starting point is 00:38:30 At Max, there are meetings for like, why don't we have a YouTube? Because they see the thing. And there are obvious reasons they don't. But in this one case, they could buy a thing that's almost like it. Yeah. No, it's certainly the closest to just going from nothing to something that has been available maybe ever. Yeah. And yet, yet. It's going to be App Lovin, everybody. No, no shade to App Lovin. It's just a very funny name. And I'm dying for the TikTok conspiracy theories that will occur if a company named App Lovin buys this platform.
Starting point is 00:39:02 TikTok by App Lovin has a really great ring to it. We'll find out. Either TikTok will exist next week when we do the show or I won't. Or Trump. We're going to buy it. And it's just going to be Detroit Pistons Highlights and trucks jumping over stuff. And I'm here for it. We're buying TikTok.
Starting point is 00:39:15 And it's just us forcing Richard to purchase and rehabilitate a bar. Yeah. That's it. Like, you've got to find one. You've got to, you've got to do the TikTok thing, you know, like the time-lapse video of, like, tearing down the drywall and putting it back up. We're going to make Richard install gray floors in one of those, like, bronze chandelier things. It's going to be great. I'm excited for it.
Starting point is 00:39:39 All right. We've got to take a break. We're going to come back. We're going to start talking about tariffs. It's going to happen. We'll be right back. Support for this show comes from Shopify. Every thriving, successful business has to start somewhere.
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Starting point is 00:43:27 It is the only story, like in the biggest way. Usually with politics, we have to draw some line to like phones, you know, like, here's why the verge is covering politics. And I want us to cover politics. We do it. We cover policy very deeply. Like, usually you have to make an argument for politics and policy in our stories, right? We cover consumer tech. There's a line to politics and policy.
Starting point is 00:43:52 And I want us to explain why we cover things like the FCC or why we cover things like the National Institutes of Science. Like there's, or the National Institutes of Health. Like, there's research that gets done at the federal level. There's policies at the Federal Trade Commission. All this stuff affects the gadgets we make. Tariffs is much different because the prices are just going to go. And the supply chains that create all the hardware is going to go sideways.
Starting point is 00:44:15 And there's not a great argument for any of these tariffs right now. So Trump announced them. The stock market literally crashed while he was speaking at the White House. You just saw the numbers go down. I watched CNBC today. People I know, the anchors at CNBC, just openly confused. Carl Quintania, who is a great anchor at CNBC, a friend, he said, you're burning down the house to cook a cheeseburger, which is an incredible quote. That is good.
Starting point is 00:44:42 Steve Mnuchin, who is the Treasury Secretary and Trump won, said to Sarah Eisen, I believe, don't think too hard about how these tariffs were calculated. I mean, that's the thing. I think when you say there's not a great reason for it, I think that is actually like far too kind. Like this is this is pure nonsense. And I think what we have seen from the reaction, like you cannot find someone who can give you a measured reason why this is a good idea. Right. You can find something. You can find chat GPT, which will deliver you the calculation that is used to calculate tariff rates.
Starting point is 00:45:21 Well, so, but that's the thing, right? And it's insanity all the way down because it's like, you rewind back through the campaign and everybody was like, well, Trump clearly doesn't understand how tariffs actually work. It's just like a thing he likes to say. It's like a hobby horse of his. He won't do them. And then immediately took office and started doing them. And everybody was like, well, they won't be as bad as he thought. And so over and over and over, the people who like believed in him as an economic driver for the United States were like, he won't do this. And then he did this. And then he did this. saying it was so much worse than anyone, anyone thought it was going to be. And then the more we've learned about why it is the way that it is and how it was calculated and how it was created and how it came to be, the more, the only possible logic has become, none of this makes any sense. It is true. The United States trade representative put out a fact sheet about the tariffs with a formula in it that was supposed to explain how they'd calculated these tariff rates. And the formula contains a bunch of Greek letters, two of which when you back at them out to the numbers, just cancel each other out. What you have is a trade deficit divided in half
Starting point is 00:46:24 to calculate the rate, and then the floor is 10%. And the rates, the tariff rates are against islands that have nothing but penguins on there. But it's so important to keep saying, that's nothing. What you just described is nothing. Right. And they're described as reciprocal tariffs against countries that have no tariffs on us. No. None of those makes any sense. These are not trade deficits. It's countries we buy things from. Like, those are not the same thing. It's like there was, I saw a thing this morning that was like, you don't have a trade deficit from your dentist because your dentist doesn't buy anything from you. You buy things from your dentist. Like, it's just nonsense. And we're at a point now where it's like we've gone
Starting point is 00:47:02 way beyond even like, even now the Trump administration being like, this is about fentanyl crossing the borders and this is how we punish the countries who allow this to happen. That seems reasonable compared to where we are now, which is just they went in and they were like, oh, well, we have a trade deficit with them. Let's tariff the opposite of that, and that'll sort it out. That's nothing. So I want to say there's been a lot of reporting, including from us, that it's the AIs that come up with this kind of math.
Starting point is 00:47:33 And it is true. Chatsy PD comes up with this math. Claude comes up with this math. Grock, important one in the Trump administration, because that's Elon's, comes up with this math. Gemini will come with this math. But if you switch to Gemini 2.5 Pro, which Everyone got mad at us for ignoring last week, but now I'm using it, because you all yelled at us.
Starting point is 00:47:52 And you ask it to show thinking on this prompt. It's basically like, the user's an idiot. Like it's like literally the second one, analyze the user's premise is the user assumes tariffs for a simple direct tool to achieve balance trade. And that a single calculation method can achieve this across countries. And then it just scrolls down and it gets to a place that says address the. easy way request. And it says, given the complexity, there is no easy way to calculate tariffs that will precisely balance trade. The premise itself is flawed. So look, I'm not saying that they used AI or not. I'm just saying maybe they should have used Gemini 2.5 Pro, which would have gently
Starting point is 00:48:33 let them down. It's tough. I am generally suspicious of the like they wrote this official document with AI argument. I think like people are dumb is usually a more compelling outcome than the like the Occam's razor is people are. stupid, not people used AI. This one is really, really, really hard to disagree. Like, it, you put it in and over and over, people have run this experiment over and over again, you can get it to give you that answer as long as you ask a stupid question. Which no human economist will give you that answer. No, this is what I mean. Like, the reaction has been so universal that it is, it is unreal. Anyhow, look, this is going to affect the price of iPhones. It will affect the price of the
Starting point is 00:49:15 Nintendo Switch 2. We have a piece trying to get. how much the price will go up with the switch to. It's a debacle of epic proportions for the auto industry. That's a quote we ran in a story that Andy Hawkins wrote. We're going to track all this fallout across the board. There's a chance that Trump just walks them all back. That's a thing that he does all the time. There's a chance that this is all just a weird racket.
Starting point is 00:49:36 We've been calling it gangster tech regulation. He just wants people to deal. So he does this gangster-y stuff. We'll see how this shakes out. But I actually wanted to make this real for our audience. I think you can go get a bunch of pie in the sky tariff coverage everywhere. But we cover people who make things, right? Not just big companies, but small companies.
Starting point is 00:49:57 We love an indie hardware maker here in the show. So you might have heard me talk about a company called Tuneshine before. And the founder of Tuneshine is a guy named Tobias Butler. I've read notes about tariffs from him on the show before he's emailed me. I was like, I should write a story about the Tuneshine and Tariffs. And then all this news happened. and I thought to myself, oh, we should just have Tobias on the show. So let's bring them on now.
Starting point is 00:50:21 Tobias Butler, you are the founder, the sole proprietor of Tuneshine. Welcome to the Rochcast. Thank you, Eli. Glad to be here. So as Tobias knows, I have a Tuneshine. I love it. Explain quickly what it is. So Tuneshine is a lo-fi album art display that uses this kind of pixelated, very
Starting point is 00:50:39 tasteful, almost artistic screen to automatically show the album art work for the music you listen to. Works as Spotify, Apple Music, and Sonos. I definitely recommend, like, if you're listening to this on a podcast app, checking out a picture of it, it's a very visual experience, and often it'll kind of click with people. But yeah, it's basically supposed to add this nice ambient artwork to decorate your room and connect with the kind of music you like and help represent that visually in your space. So I started talking to Tobias because I demanded features and he delivered them. So I will point out that Tobias, you just added Shazam support to the two trend. So if you're listening, if I'm listening to vinyl at my house, I can just push the button
Starting point is 00:51:18 and the album mark shows up there. It's choice. I love this thing. Cool. Really appreciate it. It's just you, right? There's no one else with the company? Yeah, it's just me. Increasingly, I'm kind of doing some things with with contractors. I just recently got set up with a contract manufacturer based in the U.S. in Chicago, doing contracting with fulfillment companies to actually mail things out, which is great because that means that I don't have to be, home every weekday of every week and tune signs will still go out to people. But as far as the product development, coding, marketing, admin stuff, that is all me. And there's a part of the story which I am very taken by, which is you worked at a tech company and you quit to start this company,
Starting point is 00:52:01 right? Yes, that's basically correct. I quit kind of thinking, okay, I have like a little bit of a nest egg enough to sort of explore different options because I sort of thought, okay, is a good time in my life. I don't have kids yet. My budget is still pretty flexible. Maybe I should just see if there's other things that I like that aren't web development, which is basically what I was doing before. And I basically discovered that I did want to continue to do coding, but I really wanted to give Tunesh to try. It was just giving me good indications that it could be a business, not only that I would be able to start and had the skills enough to get pretty close, but also that it was something that people were wanting. My friends were asking about it. And I love music. I'm a musician. I studied
Starting point is 00:52:48 music in school. So working on a music product just sort of made sense. So that's why I decided to give it a go. This might be a really stupid question. But is like before the now times, is when you go to start a business like this and you're like, okay, I'm starting to source hardware. I kind of know. The thing I want to build, I have to meet. Do you have to become a tariffs expert anyway? Like, is that a thing that's on your mind as you're starting a company like this? I mean, prior to to the first Trump tariffs, which applied a 25% tariff to a lot of things. So I've always had tariffs on the circuit boards that I was getting from China and the LED screens, which I think are also in that classification, or at least among the classifications that get those things.
Starting point is 00:53:34 I mean, I think that, yes, you are thinking about this. However, if you're trying something out for the first time, especially if it's your first time doing this as a hardware founder, there's going to be so many unknowns anyway that that is probably just going to be one of many unknowns that you encounter along the way. I think people who are maybe on their second or third go are probably thinking a couple steps ahead on this, which of course is much harder to do now that things are changing like twice a week. So that's, it's a mixed answer. I'm asking you just a really reductive question because I have the product and I like it. I see that it's like thoughtfully created.
Starting point is 00:54:11 But at a very abstract level, it's a circuit board, a microcontroller, some Wi-Fi chips, and a display. And then I think you make the case. I actually discovered this product because there's videos of you on TikTok making the cases. And I was like, well, that's cool. I'm assuming the wood for the cases is not tariffed yet, but it might be soon. So I, for a long time, I was doing the assembly myself, but I don't have a CNC machine to actually carve the case out of the material. I am going to continue to, there's going to be some special editions, limited runs, and I will continue to assemble those at home, just because I think it's very, I like having
Starting point is 00:54:48 that physical connection to the product. And while I can't scale up enough to do all of these things, I think people really like knowing that they bought something that was, you know, not artisanal. I'm really just screwing it together, but they like having that connection. Right. But those parts, right, Wi-Fi, chip, controller, circuit board, display, all of that was coming from China before, right? You weren't getting that domestically. And so you're paying some rate, and the rate might have gone up because of Trump won tariffs. But you could basically go to suppliers and say, I want to buy this stuff and get prices back.
Starting point is 00:55:23 Yes, yes. And the easiest way to do that is to get on Alibaba. People are super responsive. I, you know, you hear this. Simone Yetch, the robot creator was talking about this recently, where you reach out to a bunch of manufacturers in the U.S. and Europe. And your response rate is really low. I think some of that is just because they are not as optimized for small clients. I think some of that is just a company culture thing that's pervasive here.
Starting point is 00:55:53 But if you go to Alibaba, you're able to find these manufacturers, buy from them, get samples, and everything is consolidated into a single app. It's sort of a weird janky app, and they're a little bit iffy with their push notification policies. but you can talk to everybody in the same app, and it makes the whole thing very streamlined. So I emailed you when the first round of tariffs in this Trump administration was happening. You said, my prices will go up and down.
Starting point is 00:56:20 I'm not sure what's going to happen. Now we're here in the second round. Who knows what's going to happen? What's going to happen to tune China? Your price is going to go up? Is the company still sustainable? Yeah, so I was kind of, before I fell asleep last night, you know, I'm doom scrolling a little bit,
Starting point is 00:56:35 and I'm just like, oh, no, like, maybe I am. I'm going to have to raise prices. And when I double-checked my numbers this morning, because I just put out a video talking through the effects I think it might have, it looked like what actually came out to was basically a 10% increase in the price of each manufactured tune shine. And the reason it's not the full like 54% increase that is going to be applied as the tariffs from China is for a few reasons. One is that some of this stuff was already tariffed. In fact, much of this stuff was already tariffed. So the increase is more like 25-ish percent, not the full 54.
Starting point is 00:57:15 The other thing is that the labor cost, like that, you know, the most expensive parts of the tune shine are screen circuit board and labor at the moment, the way I'm manufacturing it. Labor cost is not tariffed because that's done in the U.S. So that is not included in how the tariff multiplier would work. And the third thing is that I actually did recently meet someone who might be able to move some of the parts into their spot in Wisconsin with very competitive prices. So I'm getting samples there. I think that's pretty unusual. I was kind of amazed. There's not a lot of PCB manufacturers in the U.S. People talk about how I think like
Starting point is 00:57:54 Starlink's SpaceX stuff is like one of the biggest PCB facilities. But in terms of just quick, low volume, and by low volume, I mean like 1,000 to 3,000-ish manufacturing for PCB. is not very common, but this guy is given it a go. And I thought that was exciting that I might be able to beat that. So all of that together amounts to a smaller increase than you might think based on the 54%. But it's still an increase. And I'm making orders of 1,000. And so if it costs 10% more, that's like thousands of less dollars in profit for me for each batch of tune shines that's coming in. And all the indications are that it could still be profitable. But since I've been scaling up in each order of products that I make is bigger than the last and
Starting point is 00:58:43 it eats into the profits I've already made. And because I had legal costs associated with filing a patent, then I don't know for sure yet, but it looks like it should still be okay. And especially if I can get a little bit more efficient at marketing, which is my second biggest cost after manufacturing, then I could potentially make up for that. So if I'm getting more organic social reach or if I'm doing better PR, then that helps. because I'm less reliant on paid marketing channels. So that's kind of how I've been thinking about it.
Starting point is 00:59:11 It seems like part of the challenge here is the not knowing of it all. Even just in the last two months, we've gone back and forth so many times. And like you talk about ordering these parts. And like it's not like this is a thing you can do on a sort of day by day basis, depending on the state of the economics of it all. Right. You're having to make sort of months-long decisions at a time, right? Like how do you even do that in a moment like this where everything is up and
Starting point is 00:59:37 down from like 15 minutes to 15 minutes. Yeah, I mean, the uncertainty is definitely a huge factor. And I think my reading is that a lot of the stuff that's happening with the stock market is really into uncertainty as much as anything else because we just don't know what's going to happen. For me, there are some funny day-to-day things. Like, if I'm getting parts shipped like over the ocean, for example, the delivery times can be very unpredictable, but often this is a much cheaper. alternative. So I literally had a package that I think, like, got delivered yesterday. And I don't know
Starting point is 01:00:14 if the timing perfectly works out, but the tariffs did seem a little high. So I was like, darn, like, if it just arrived one day earlier, I could have saved like 400 bucks. But what I think about really, like, I can sort of plan this stuff out. But as I was saying, when you start this stuff, there's so much uncertainty. And I think about the people who are starting kickstaters. And they're trying to make their best guess at whether they have a viable business model, because there's kind of an epidemic, I'm sure you've noticed, of people who, like, raise a bunch of money on Kickstarter and then ultimately realize, like, oh, this business doesn't actually work, though, and so products lose support.
Starting point is 01:00:51 I think there's a much greater risk of that now, because you have less certainty about how much money you want to raise on top of all the uncertainty you already had. Your prices might go up. I think it just adds another factor on top of all the, the, other risks starting a business that might make people think twice about whether they want to turn their little home-built DIY Arduino or Raspberry Pi gadget into a real product, which is a bummer, because I would love to see more diversity in hardware, more power to like smaller hardware players to experiment with all these ideas that are out there that aren't really seen as much in a very
Starting point is 01:01:28 homogeneous hardware market. That seems like the important part, right, that you are living a version of the American Dream where you had a job, he said, I have an opportunity to start a company. I can open the Alibaba app and connect with a bunch of suppliers halfway around the world and start a business. And now there's a regulatory environment that might make that surprisingly harder. Do you think you would have started Tuneshine right now with the tariff uncertainty? It's hard to say. I might have tried to price it differently. The way my initial strategy was working with the pricing is that, I would read things online that we're basically saying,
Starting point is 01:02:08 take the price of your materials and multiply that by four. And that's what you should sell it for. I am not doing that, which has interesting side effects where I basically am very resistant to selling in retail environments because they immediately want to buy your product wholesale for half of the sticker price. And for me, that basically puts me underwater, and I can sell direct to consumer better than that anyway.
Starting point is 01:02:31 But when I was first making these, I kind of had that attitude of like, well, more likely than not, if these sell, I can get the price down some way. I can take the time. Once I know that people will buy them for the price that I've set it at, then I can, maybe I can scale up. Maybe I can find a different supplier. I can get better at this and that. So I, through that process, I already brought the price down a lot. It's going back up now.
Starting point is 01:02:58 But I honestly, like, since I came from the software world, I'm not so certain that I would have had the foresight anyway to be able to incorporate this into the overall calculations. I was just sort of thinking, all right, I'm going to start small, I'm going to sell 50, then I'm going to sell 100, and then 200, 500,000. Price comes down a little bit each time and we're getting more and more into healthy business territory where I can look ahead of the next year and be like, yeah, this is probably going to work. But as I said before, there's so much uncertainty with these things, having another thing thrown into the mix. does not, I think, make it more likely that people will try experiments like this. Why not just throw it in and raise the price? I mean, I think we're going to see a lot of people who are just like,
Starting point is 01:03:42 ah, tariffs, everything's more expensive. Why not do that? It's a good question. I think part of it is just the fact that I'm somewhat new to this. And I think I'm maybe a little bit more nervous than many people would be about my customer's loyalty. I thought about that when I was switching to manufacturing outside the house. And I did get people who emailed me who were saying, oh, this is a bummer. Do you actually have any that you still made with your own hands that I can get?
Starting point is 01:04:11 Literally somebody asked me to sign one, which was funny and send it out to him. So I do stress a little bit about customer loyalty. I think I've done a pretty good job of building that by just trying to be really transparent, talking about how this process works, trying to be the opposite of whatever. corporate sheen you usually get from marketing communications. So maybe I've built up an up goodwill where people would say, hey, like, yeah, this is still fine. On the other hand, I get some repeat customers, but not a ton.
Starting point is 01:04:44 And so those people, I wouldn't necessarily have built up that loyalty to. So, I mean, coming from a big, I used to work at change.org where we would just A, B, test everything. It's a little harder to A, B, test a price. I kind of wish I could do that, even though it's maybe a little ethically questionable. But I, at least for now, I want to try it out. I think that 200 as a starting price, it's already a somewhat expensive gadget. It's a very niche thing.
Starting point is 01:05:11 I'm not pretending this is like a toaster or a microwave oven or anything. It's an art piece, basically, that you can get from your home or not. 200 is, I think, of pretty fair price, but it is a bit high. And so I want to keep it there and hope that it works out, basically. I think I bought a walnut one that you actually did make by yourself. You said two things that are really interesting to me. One, you said American and European manufacturers kind of don't respond. They're just like not in the game the way that the Chinese supply chain is just in the game all the time. And then you said, there's a guy in Wisconsin who might be in the game now. The point of the tariffs is to get you to move your production to Wisconsin, right? The point of the tariffs is to get more of the supply chain in the United States. Do you see that happening? Right. I mean, you obviously have at least one person in Wisconsin who wants to help you out. Do you see more of that? Is that ecosystem actually developing? My experience with this is somewhat limited, but the, as you said, the Chinese supply chain is just so well set up for this stuff. There is absolutely no American
Starting point is 01:06:18 answer for Alibaba and just how easy it makes the overall process. Maybe there are individual suppliers out there that can compete on price, especially with the tariffs. And maybe they do respond. But having everything so streamlined, it feels like you're kind of going back to the previous century when you are trying to do things with the manufacturing manufacturers. It's not out of the question that maybe someone's out there trying to build the American Alibaba. That would be awesome.
Starting point is 01:06:48 Like if someone's out there and feels that spark, you have my full encouragement. But there's a lot of stuff that's also just not made here. I mean, the ESP 32 microcontroller that I use, it's just a Chinese company. Like, you know, maybe something using the TSMC factory in Arizona or wherever that is is going to come up and make a competitor to that. But how long does that take? How long does it take to build the ecosystem of libraries that support this operating system and all of this stuff? I think some people make these LED screens in the U.S. they don't have pricing on their website.
Starting point is 01:07:27 It's one of a contact us for sales sort of deals. But it's lots of obstacles because they just really have a system for this that's modern in a way that we do not. How long do you think it would take to build that system here? I don't know. I would say that's out of my wheelhouse, but certainly, almost certainly longer than a single presidential term for one. I ask a question because I think that's the answer. I was just the Alibaba that all I think is really fascinating and is a piece of this that I think is not getting talked about a lot. That it is that this it is just so much easier and faster and more straightforward to do the kind of stuff you're talking about on Alibaba and in China than just about anywhere else.
Starting point is 01:08:12 So I am curious like where that puts you sort of long term. Like let's assume the tariffs are real. It feels to me like you have a couple of options. One is like hope everybody moves. part production to the U.S. One is like find new parts that they make in the U.S. Or two is just figure out how to incorporate the costs. Is the answer one of those?
Starting point is 01:08:35 Is it some mixture of those? I think it will be a mixture. I mean, I ultimately the PCB people in Wisconsin, I didn't switch to them because I was like, I'm going to buy American made, but more because I think the contract manufacturer I was using, I think they were getting PCBs made in India and I actually didn't check how much the terrorists
Starting point is 01:08:53 were going up on India, but I think they were 10%, but still, I switched because they were able to beat the cost when they incorporated shipping and when they incorporated that tariff. They were able to be the cost. They were also able to make a 3D printed part and they were down to bundle it together. They were even down to do some electronics engineering for free to throw that in, which is huge because, you know, for these 500,000 here, that really adds up at the point that I'm doing this business. So I think it'll be a mix and maybe I just kind of put a call out on my Instagram and TikTok. where I was saying, hey, if you know people in the U.S. who might be able to do this, like, sure, I'm open to it, but I haven't seen that. I mean, I used to be getting
Starting point is 01:09:32 cardboard boxes with foam that just protected during shipping. Price in the U.S., $18. China, four. Wow. So that's that's 350% more. I would be a bit surprised, but it doesn't mean it's not out there. The other thing is that I, just by the nature of my business, I think I do have a little bit more flexibility. I don't have people on payroll yet. I'm not even on payroll yet. Hopefully, hopefully this year. But I don't have people on payroll. If you're Apple, and they'll probably maybe be able to get some exemptions, but like this, you know, if it is a 10% or 20% increase in the price for your items, that is like billions of dollars. It represents tons of people's
Starting point is 01:10:17 jobs and an entire big corporate strategy ocean liner that needs to be. turned. Whereas for me, I do, I do have a bit more flexibility because it is just me. And so I don't have to fire people because of a 10% price increase, which is great. Maybe it means that I'm skipping on the fancy four pack of beer and instead drinking Pacifico a little more. But it's more flexibility. Yeah. Tim Cook's switching to Pacifico is actually the most obvious set of things. Yeah, that's his first thought. Put this in a range for me, right?
Starting point is 01:10:54 There's tariffs went up and maybe your cost go up 10%, and you're drinking, sadly, some cheaper beer, and that's fine. And then what's the number that says this is no longer sustainable? I mean, if my manufactured cost went over $100, that's sort of, that's kind of game over. I mean, it's certainly without raising the price. I don't know. maybe there is a market like maybe you know maybe in a couple months people will be like well like my tv was like nine hundred dollars and it used to be four hundred so a tune shine for two 50 doesn't
Starting point is 01:11:29 actually seem so crazy but for if it were over a hundred dollars i i would be very surprised if people would be able to pay what would make sense uh to to make that sustainable certainly with retail because i if i kept it at 200 and i'm paying 100 i literally would make a zero on each retail sale unless I get like a good deal. I'm only in one store right now and she's sort of a friend of a friend and she gives me a little bit more than 50% of the cost. But like if I'm aiming to be in urban outfitters someday, I don't think they're going to cut me a good deal. And that suddenly goes like off the table. I think if if my manufacturing costs go over $100. Tomaz, what do you think is next for tune? What are you looking at for? I'm really going for consistency this
Starting point is 01:12:13 year. I just placed an order for $1,000, which is my biggest order yet. And now that the manufacturing and the fulfillment is out of my house, I'm just trying to get that running on a kind of clockwork basis. Well, I can add new features. So I really want to support more home music servers this year, Plex, Rune, like Logitech media server. People are always emailing me more and more bespoke media servers. I want to support as many of those as I can.
Starting point is 01:12:42 Trying a special edition, maybe some colors, just got some samples in. And maybe a big one, maybe a vinyl record-sized one. So those are the things that are on my mind right now. As soon as you said Rune, a bunch of Virchcast listeners started like fist pumping at their phones. The Rune in plus audience here on the Rund Chass is strong. I see you Rune fans. When you make the big one, let me know. Built in microphone for the Shazam.
Starting point is 01:13:08 That's the game. Yeah, that's sort of maybe a... $5,000 tune shine with an AI microphone in it is what I'm looking at. It's got like eight mics so that it's... knows of the distraction the music comes from from some reason. Why not? I love it. Tobias, thank you so much for joining the broadcast.
Starting point is 01:13:23 Thank you. Really appreciate it. Bye. All right, we got to take a break. We're going to come back, Lightning Round, and America's favorite podcast for the podcast. We'll get back. Support for the show comes from Anthropic.
Starting point is 01:13:36 Not every question has an easy answer. And the ones that are really worth asking usually come with a healthy mix of inspiration and backpedaling, aha moments, and quiet meditation. When you're working through one of those problems, you want a partner to bounce ideas off of and figure out where the deeper issue lies. That's where Claude can help. Claude is the AI for minds that don't stop at good enough. It's the collaborator that actually understands your entire workflow and thinks with you,
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Starting point is 01:14:29 Get started with Claude today at cloud.aI slash vergecast. That's Claude.aI slash Vergecast and check out Claude Pro, which includes access to all the features mentioned in today's episode. Claude.aI. slash vergecast.
Starting point is 01:14:46 Support for the show. comes from LinkedIn. If you're a small business owner, you know that every hire counts, but time and resources are limited. Finding, connecting with, and screening the right candidates takes up valuable time you could be giving to your customers. That's where LinkedIn Hiring Pro comes in. It's built to be your hiring partner, helping you find the right candidates faster. That way you can hire with confidence without turning it into another full-time job. Hiring Pro streamlines the entire process from drafting your job to shortlisting candidates and conducting AI-powered interviews for initial screenings. Its updated conversational interface lets you describe
Starting point is 01:15:31 what you need in plain language. Nearly 60% of hires find a candidate to interview within a week. With hiring pro, you spend less time searching and more time connecting with the right talent. And instead of getting buried in resumes, you get a focused shortlist that actually moves your hiring forward. Join the 2.7 million small businesses using LinkedIn to hire. Get started by posting your job for free at LinkedIn.com slash track. Terms and conditions apply. Buzzwords like progressive and affordability are thrown around all the time in politics. But what do they actually mean? For me, being a progressive means at least two things. One, being willing to unite lots and lots of people,
Starting point is 01:16:21 all of the folks that are getting screwed over against the powers that be that are making your life worse. And then second, being progressive is essentially a hopeful enterprise that you think, I think, that the world can be much better that we don't have to settle for crumbs
Starting point is 01:16:38 or settle for the status quo. And is there a difference between what it means to the elected officials and what it means to the people? So money is essentially the root of everything. I don't care if you're gay, I don't care if you have, All that, that's like secondary, third.
Starting point is 01:16:51 Like, that doesn't, that's not a priority. That's this week on America Actually. Let's dig it. All right, we're back. It's the lightning round. Unsponsored for flavor. Does it need an ellipsis? There's been some debate about whether it's unsponsored dot, dot, dot for flavor,
Starting point is 01:17:14 or if it's just unsponsored for flavor. So, I don't know. You tell me. I will tell you that we, the decoder tagline, which is big ideas and other problems, is impossible to say tagline. Like, it looks really good with that built-in ellipsis, right? Big ideas. And then every week I say it, I'm like, oh, this sucks.
Starting point is 01:17:35 So I might just be having, like, it's hard to say. You try saying it. So I might just be having a response to that ellipsis. I think the pregnant pause is like good, right? It's unsponsored for what flavor? Like, that makes sense to me, but I don't know that you want to formally. You tell me, maybe it's like, big unsponsored little for flavor.
Starting point is 01:17:58 That maybe that's kind of, that's the vibe. The reason I keep saying it is to cement in the listener's mind, the idea that if something is sponsored, it lacks flavor, which is the entire media now is just branded content deals. Right? It's just everything is sponsored or paid for.
Starting point is 01:18:15 And I just want you to think every time you see that. You just think they, there's less flavor here. It's good. It's also a way to make sure that this, show never makes any money ever again. So we're doing great. But we don't lack for flavor, David. Richard just sighing. He's like, what have I signed up for? All right, it's time. Oh, my goodness. Richard, have you been here for this yet? America's, it's a top two podcast or
Starting point is 01:18:44 than a podcast. Again, I keep getting emails about Munch Squad on my brother, my brother, me. And trust me, I hear you. I love it too. But it's time for America's other favorite. podcast or their podcast. Brendan Carr is a dummy. We're so bad. It's my first one. It's honestly, I'm thrilled for you. And this is the part where we just sort of sit quietly and
Starting point is 01:19:04 and Eli talks for like an hour and a half. It's great. It's my favorite part of the show. People have asked me if I write these. And the answer is no. I just start yelling. And that's how much it builds up with me, within me week after week.
Starting point is 01:19:16 All right, this week on Brendan Carr is a dummy. Two things. One, last week we pointed out that he's threatening all kinds of companies, that he will investigate them, not let them do deals unless they cancel their DEI programs because he just likes making threats. And so this week, T-Mobile closed a deal with a fiber company called Lumo, so they're in a joint venture to a fiber, but only after it dropped all of its DEI pages. This is the dumbest story in the world. T-Mobile had a bunch of pages up that outlined, quote, a culture of fairness, respect and inclusion.
Starting point is 01:19:48 They were online until March 26th. They took them down. Deal got approved. Bing Bang, Boom, we're closed. And because this is the current world and this is Brendan Carr, the pages, they changed the pages. They don't say DEI anymore. The URL that said diversity, gone. Many of the groups that were listed that championed diversity, gone.
Starting point is 01:20:13 But they're just kind of different pages. Yeah, good enough for Britain's car. They say stronger together now instead of diversity and inclusion, which literally all that does is it doesn't get caught in whatever scraper the AI tool is doing on their website. Like, what we've learned about Doge is that Doge is just like running a bunch of AI checks to see, like, when they use words like probation and diversity and like trans, anything. And this is the same kind of thing. They're like, oh, we're just going to 404 a couple of web pages. Don't look over here at these web pages, which are different because they say together.
Starting point is 01:20:52 and not inclusion, so it's fine. This is the level of stupidity we have reached to, and apparently it worked for Brendan Carr. There are words you just can't say. I want to be very clear about this, David. And it works. That's the worst part. That's all he,
Starting point is 01:21:05 that's all Brendan Carr wanted. It's true. The transcontinental railroad is woke now. That's what you need to take away from this. You know I'm right. You know that's how it's going. So that's one. That happened, right?
Starting point is 01:21:16 And that's just naked corruption of the, the dumbest kind. Like there's, it's just stupid. but it worked, and that's just the nature of corruption. And am I saying that telecom companies aren't inherently kind of stupid and corrupt? I'm not saying that. I believe telecom companies are inherently kind of stupid and corrupt. And whether it's promising the chairman of the FCC that upon leaving, he will get a plum job as president of the lobbying organization for our nation's wireless carriers,
Starting point is 01:21:41 which is a real thing that it just recently happened to a GPI, or saying we're going to remove the word diversity and replace it with the words stronger together. It's all just corruption. And that's fine. stupid, a little bit racist, but the sort of corruption we're used to. Then there's Brendan just saying things that are demonstrably untrue in ways that are quite honestly easy to check. So this week, the Democrats on the Energy and Commerce Committee in the House of Representatives said they were very concerned about Brendan's general
Starting point is 01:22:11 censorious attitude, and they wanted an investigation. So ranking member Frank Pallone from New Jersey, ranking member Doris Mitsui from California, and Yvette Clark from New York, wrote a letter to Brendan, saying, we write to express deep concern over your actions to target and intimidate news organizations and broadcasters in violation of the First Amendment. These troubling actions assault the constitutionally protected freedom in the press and violate the FCC statutory prohibition against engaging in censorship. Directing FCC staff to devote time and resources to bogus investigations constitutes a violation of the law, gross mismanagement, extreme waste of funds, and an abuse of authority.
Starting point is 01:22:51 I just want to point out that that's what it sounds like when you write it. Neli is what it sounds like when you just yell it into a microphone. It's the same thing. They're just saying the same stuff you've been saying. It's the same thing. It's all the same stuff. So they shared a letter with the Office of Inspector General, and they are asking for an investigation into Brendan. Okay.
Starting point is 01:23:10 The argument's fighting. Brendan is furious about this. Oliver Darcy at status, who is doing a. an amazing job reporting on Brendan Carr, I should say, and often gets comments back from Brendan, which is fascinating, asked Brendan about this, and Carr, in response, accused the Democrats of weaponizing the country's communications laws against Republicans, which is wild because he is the one being accused of weaponizing the communications laws. And in response, he's saying, even asking you about this and saying, I'm injuring the First Amendment is recognizing those laws. And then he points out,
Starting point is 01:23:45 in classic Brendan Carr fashion, and then he claims in classic Brendan Carr fashion that everything he's doing is fine because he thinks the Democrats who preceded him were doing it worse. So he says, if your last name was Soros, you got special streamlined treatment on an expedited basis by the previous FCC. If your last name was Musk, then you got millions of dollars worth of awards revoked for partisan political reasons. If you were a conservative outlet, then your FCC licenses and distribution deals were held up or subject to government back cancel campaigns. This is what this is demonstrably untrue like fully and completely untrue because one If the if your complaint is that the previous administration was corrupt and politically motivated and biased unfair
Starting point is 01:24:27 That does not mean that you should do it to It just doesn't it means it's actually an admission of guilt It's right I too am corrupt You're saying these people were evil so I'm gonna do the same stuff. Yeah, that's bad Right that that just makes you a flunky of a different stripe, but you're still a flunky Second, if your last name was Musk and your licenses got revoked, that's because Starlink was trying to defraud the government into getting grants by saying it would provide service to like shopping malls.
Starting point is 01:24:57 Like they were making fake maps. You can read, it's on our site. We covered all of this. Ours Technica covered all of this in detail. The reason Starlink wasn't getting awards for these rural broadband programs is because they were saying they were going to cover densely populated suburbs with shopping malls in them, not rural America. Which Starlink.
Starting point is 01:25:14 cannot do. I don't, it doesn't matter if they can or can't do it. They were looking at the maps and saying, no, that's not correct. This is not what you should be doing. So then Carr goes on to say, for those that have benefited from the two-tiered system of justice that prevailed during the Biden years, even handed mist may feel like discrimination, but that does not make it so. This is also just fully warped thinking, right? If you think that there was a two-tiered system of justice in the Biden administration, you don't pull the pendulum back. by investigating broadcast outlets in violation of First Amendment. That is absolutely wrong.
Starting point is 01:25:50 It is just, it is censorious. It goes against the American system of justice. And it is so outside the realm of authority for the FCC that it, it like boggles the mind that I talk about it every week. This is not what you want the Federal Communications Commission doing. You do not want Brendan Carr, who is unelected, saying that he alone can control what is distributed over the airwaves because he understands what the public interest is
Starting point is 01:26:14 and he can reopen investigations that many, many, many former FCC chairman and commissioners from years past have said or inappropriate. This is not what you wanted to do. And then, on top of that, I have done a lot of reporting on this over the years, and I know that what he's saying about the Biden administration
Starting point is 01:26:31 is fully bullshit. I know this because the problems in the Biden administration were that big telecom companies made the Biden FCC corrupt and ineffective so it could not forcibly open up our nation's networks. They could not open up cable companies. They could not do net neutrality. They could not get the votes to regulate our systems
Starting point is 01:26:54 to make sure that they respected free speech by being open to all. And in fact, it's not Republicans or Democrats to prevent this from happening. It is the big telecom companies that got together and made it impossible for Biden to nominate Gigi Sone to the FCC completing his commissioners.
Starting point is 01:27:12 of Democrats so they could pass votes. We did a whole decoder on this. And in that decoder, the star witness on that episode of Dakota, we talked to a ton of people. You can go listen to it. The star guest was the CEO of Newsmax, who is not a Democrat.
Starting point is 01:27:30 Chris Roddy, the CEO of Newsmax, I'm telling you, this man is not a Democrat. We are not aligned politically on a number of things. But he came onto our show and said, And the problem is the big cable companies are trying to keep GG Sown out of the SEC so that there are not votes to open these systems up and actually protect access. Here, we'll just run the audio. Here's Chris Ruddy, the CEO of Newsmax, talking to me on Decoder last year about the actual
Starting point is 01:27:59 problem in the cable industry under the Biden administration. The cable industry is a bit of a racket and the big broadcast companies are part of the the racket and they benefit it. The people that get screwed are the consumers, the cable customers. And so the way the record works is if you own a lot of television stations that a local cable company needs, your ABC, CBS, NBC, Fox affiliates, they basically have you over a barrel because if they don't give you your channel, people are going to go to another cable system, right? What Chris is saying there, and what has been true for years, is that if you are Fox, and you want Fox News on a cable system,
Starting point is 01:28:41 you have all of this leverage because you also have Fox, and you have the NFL on Fox. And so you can go to cable operators, like Comcast, Disclosure. Comcast is a investor in Vox Media, although they hate the fact that I'm talking about this, and I've been talking about it for a decade. You can go to Comcast or Spectrum or whoever else
Starting point is 01:29:00 and say, do you want the NFL? You have to pay us a very, very high rate for Fox News, too. because if you don't, we're going to take the NFL away. ABC does this. You want ESPN, you got to pay a whole bunch of money for ABC family. They all do it. Comcast does it because they have NBC. There's a reason they all vertically integrated all of this content
Starting point is 01:29:21 because they wanted leverage over all the distributors. That's the problem. So you look at where the alignments are, and it is not Republicans and Democrats. It is big companies and small companies. That's why Chris Ruddy's CEO of Newsmen, Max supported a very progressive commissioner that was nominated by Biden because she wanted to break the control of the big companies.
Starting point is 01:29:44 That's why Rupert Murdoch and all of his empire went to war against that same commissioner of the SEC and made sure her nomination to go through. Again, you can just go listen to this episode of Dakota. It's totally fascinating because the lines are so scrambled in ways you would never expect, but it's big versus small. And so Brendan is babbling, is running his mouth about the two. two-tiered system of justice in the Biden administration and how conservatives were punished. And in reality, you had the owner of MSNBC Comcast and the owner of Fox News,
Starting point is 01:30:16 Rupert Murdoch, totally aligned. There wasn't any daylight between them and how they wanted Biden to regulate these systems. You had small companies like newsmax saying, no, we actually need access. We actually need the regulator to step up and open the door. And just on its face, you can see. that Brendan is lying. He is concocting a justification for his own bad behavior out of nothing. And we're sitting here with their seats. We've done the reporting for over a decade on the FCC and how it works. And I can tell you that it is almost always big versus small. It is very, very rarely Republican versus Democrat.
Starting point is 01:30:55 And I just think that Brendan is making this a political project when it should be an access project, when it should be about everybody having access to internet on a fair and level playing field. when it should be about ISPs not being able to throttle you. It should be about cable systems being cheaper. It should be about prices going down over time. It should be about Americans paying lower prices for faster speeds. We pay the highest prices in the world for some of the slowest speeds available. And instead, he's making a dumb political bullshit because it lets him use power. Over and over and over again, he wants to find justifications for him to assert authority
Starting point is 01:31:30 over things he should never have any authority over whatsoever. So every week, I say this, Brendan, I know you listen. a dead shore of it now. I know you get Google results for your own name, my man. Come on the show. Come talk to us about this. The people want you to. Come on Decoder.
Starting point is 01:31:47 Come on the Vergecast. See if you can make sense of this. See if you can justify your own power-seeking behavior because it's just every week. It's getting stupider and stupider. We can all see it. That's been Brendan Carr's a dummy, America's favorite podcast with our podcast. That's good. I'm glad you wrote that out.
Starting point is 01:32:04 That really... Can you tell? It helps for the right. Getting helped, I think. All right, we need a pallet cleanser. Wait, I have a TV I want to talk to you about. Okay. You may remember from, was it last year that you came on the show and told us the story about being at the TV shootout?
Starting point is 01:32:20 Yes. The best thing I've ever done in this entire job is going to the TV shootout. So, and this is like, Richard is the perfect person to have here to do this with us. There is a new, it has been upgraded. The one that won, there's now a new one. Sony, they've announced a new one. Okay. And they only announced it in an event in Japan.
Starting point is 01:32:42 So we sent former Verge editor San Biford to this event in Japan. Sony has announced a number of new TVs there. They don't do their TVs at CS anymore. They just do them later in the year because they know everyone will pay attention to them anyway. So they did the mini LADs a few weeks ago. And then they just announced that Sonia Bravia 8-2. This is the name. You got a little song.
Starting point is 01:33:05 Not the Bravia 9. We have to love Sony's naming schemes. It's so bad. Right, they have the Bravia 9, but now they have the Bravia 8-2. I can't tell you how little census makes. Correct me if I'm wrong, but doesn't the Bravia 8-2 replace not the Bravia 8, but the A-95-L? Yep, that's correct. So the bravia 9 is a mini-LED.
Starting point is 01:33:29 You got it. And the Bravia 8-2 is a QD-O-led that replaces the A-95-L. When we buy TikTok, I think we should just rename it to a string of letters and numbers that have nothing to do with anything. This makes no sense. By the way, the regular Bravia 8 is still on sale. That's just a regular OLED. So you have the Bravia 8, which is an OLED. The Bravia 82, which is the new flagship QD OLED.
Starting point is 01:33:53 And then the Bravue 9, which is many L. I don't know, man. It's 125% of pre-brightness of the A95L, 150% of the Bravia 8. So it's just basically the same idea, but brighter. And then if you remember from that whole TV shootout conversation, that is very much not about features, right? Like HTML ports or whatever. It's just about image reproduction
Starting point is 01:34:14 and how closely it can be calibrated to match a reference display. The reference display is made by Sony. So everyone thinks this is unfair. Sony makes all, like they have dominant market share and reference displays in Hollywood, so it makes sense that they're the winners. Anyway, now they're just openly saying, this TV will look most like this reference display.
Starting point is 01:34:31 So they've just taken it fully on. that they have this advantage. They say it looks great. Sam said it looks great. We'll see. They say it's going to be cheaper than the 895L. The 895L is very expensive. It's $5,000 so the 77 inch one.
Starting point is 01:34:48 And that's as big as it gets. TVs are getting real big now, and 895L is still 77 inches. So my guess is they're going to make one bigger one that's more expensive and the 77 will come down at price. Richard, be honest. You have tickets booked to go to Japan and buy one of these. Just tell me the truth.
Starting point is 01:35:05 No, I'm just going to buy three tickets and have the TV come to me. Oh, I love that. Okay. Just a full row of... You heard about the towers, man. I can't be out here wasting money. That's just being smart. Can I say the best part of the story, which is not the Bravia 8-2?
Starting point is 01:35:24 The best part of the story is that Sony is also introducing a new entry-level TV in the United States, which is called the Bravia 2-2. What? It's Bravia 2 numeral and then Roman numeral. It's the Bravia 2 2. It's spectacular. The sequel to a TV that was not sold in the U.S. So no one would even know what the original braviya 2 was.
Starting point is 01:35:50 They didn't sell the original braviya 2 here. So you're going to go to the store there. You see the Bravia 2 2. It's very good. There are so many better options. Call it the bravia 3. Call it just the bravia 2. parentheses the year that it is.
Starting point is 01:36:07 Have you ever tried to, like, talk to a person about buying the Sony noise canceling headphones? Because you sound insane once you start trying to tell them what the name is. Okay, so they're really good. Yeah, the W-FH-0-0-0-0-H4. It's very good. Ravia-22 is a Hall of Fame name for any product in history. It's very good. The thing about it is no one will ever be.
Starting point is 01:36:34 ever hear that name correctly the first time. You'll say the Bravia 2, too, and they'll think you had to think about it. And it's actually called the bravia 2, but you were trying to remember if it's the two or the 3. And so they'll think you just said the bravia 2. And then they'll buy last generation televisions, and that is just a shame. By the way, we've had a number of requests for updates on Saturday Samsung. We have an all-timer this week.
Starting point is 01:36:56 Which you will recall is Samsung's executives were required to start coming into the office on Saturdays, six days a week to increase sales, which means they can only have wacky ideas, right? That's not a product development cycle. That's just come in on Saturday and think of ways to juice sales. Actually, David, I don't know what you think the Alzheimer is. You go first. I've got mine.
Starting point is 01:37:20 Oh, do we have different? Mine's a vacuum cleaner. Okay, you've got the, I've got, no, I've got a TV one. Mine is, this is several weeks ago now, they launched a $10,000 bundle of eight TVs. So that's a Richard buy. You can just put eight TVs that range from 55 to 98 inches on the wall, but they just sell it to you as one bundle.
Starting point is 01:37:43 And their pitch is that you will save $6,000 by buying the TVs in bulk. So like when I played Ultimate Frisbee in college and we would buy, you could buy like a bulk bag of just like random misprint frisbee's for way cheaper than you would buy them. That's what this makes me think of. Just like, give us 10 grand. We're going to ship you a bunch of televisions. There'll be some sizes, some models. We're just going to get like a grab bag of televisions for $10,000.
Starting point is 01:38:10 Yeah. I love it. You get one 98 inch, one 65 inch. Oh, no, you get 465 inch, but one is 8K for some reason. So you get one 98 inch 4K, 165 inch, 8K, 365 inch 4K, and 355 inch 4K, and 355 inch. kids. None of them are OLEDs. They're all-eds. They're all just like medium-good Samsung Q-Leds. The funniest thing about this is when people buy lots of TVs like this, usually what they do is they plug them into a Matrix Switcher so they can put them in a grid and they get one big picture. But Samsung is not selling you an even number of any size. So you can't do that.
Starting point is 01:38:51 This is just the WOOP thing. When they just sell a bag and they're like, yeah, it's five bucks you'll get something. We'll send you some TV. Don't worry about it. Like those people who buy like pallets of return stuff from Amazon and it's like you just kind of get what you get. It's like really good. This is the most, this is I think the most Saturday Samsung we've had yet out of all of the things. Like remember the previous ideas were like buy a phone, get a TV, buy a TV, get a TV. This is just like here's eight TVs for $10,000. That's so good. It's very good. All right. What's yours? Here's some vacuum cleaner?
Starting point is 01:39:24 Mine is just just very briefly. I just want to mention the bespoke AI Jet Ultra. an $1,100 vacuum cleaner that has a screen on it that shows you a bunch of stuff, but also shows you notifications for phone calls and text messages on your vacuum cleaner. Samsung is now big into the idea that you should be able to do things like make phone calls from your appliances. And I just want everyone to know that I think that's fantastic, and I'm extremely in favor of it. Yeah, I'm down. Look, once you put the screen everywhere, you got to have a screen everywhere.
Starting point is 01:39:54 I want, like, Apple-style live updates, so I'm getting, like, sports scores as I'm I'm vacuuming. Like this is, let's just go all into this. My favorite, again, when I say unsponsored for flavor, what I want you to think of is when they're sponsored, they lack flavor. My favorite right now is a bunch of tech influencers are taken money to pretend the LG microwave. They announce at CS that doesn't have a window, but instead has a screen and then there's a camera inside the microwave to show you what's happening inside the microwave, but you can also watch TV on the screen. A lot of people are pretending this is a good idea. My absolute favorite thing about that,
Starting point is 01:40:29 that is everybody has the same picture, right, which is them standing sort of across their kitchen from it, and it's behind them. And it looks like the fakesest, most like photoshopped bullshit screen back there. It's so terrible. It's really good. Look at my beautifully modern kitchen and this horrible Android tap. It's like, you can watch TV on this micro. It's like, no, lack of flavor is what I'm calling out there, my friends. Just a few more here in the lightning round. Unsurprising, I think, for this audience. Tesla. plummeted 13% this quarter, particularly European countries. There's some juicing of numbers in other regions.
Starting point is 01:41:05 We'll see, but it just seems like, man, if you, there's not a better financial decision than buying a U-S Model 3 right now. There's a lot of reasons not to do that. But boy, can you get one for no money because they are being traded in at such insane rates, which I think is going to depress the new sales as well. Richard, do you see, do you see a lot of Teslas around? I've been trying to like chart the number of Teslas I see in my day to day, and I'm convinced in my neighborhood has gone down.
Starting point is 01:41:30 I can't prove it, but I'm convinced. It's hard to say. I still see quite a bit, but like, I live where GM engineers go to retire. So I see a lot of like hummers, like electric hummers. Yeah. All the time. Sick. My sense is that GM is rushing out a bunch of its TVs.
Starting point is 01:41:46 So Tesla sales in Europe were down 43%. I'm saying about the numbers were a little weird. In China, they were down until the final week of the quarter when insurance registrations, like, just went up. So, like, nobody knows why that happened. So sales are kind of dropping. And then here in the United States, GM reported 32,000 EVs are sold in the first quarter, which is double it's here over here. So the demand is still there, just going into other places.
Starting point is 01:42:10 Lucid is claiming that it's selling a bunch of EVs. So I think the demand is moving. And I think General Motors in particular is trying to get some of its newest ones just like out the door. Like the Cadillac Vistic, that's the new three row SUV. Like it's not announced. like they announced in November but they haven't like had a launch for it and they're already dealers.
Starting point is 01:42:31 We have them now. And you just get the sense that like between tariffs and being aggressive about Tesla, they're just trying to get products into showroom so people can buy them. We'll see. Everybody who has been waiting for there to be a moment to take down Tesla seems to be sensing that it is right now,
Starting point is 01:42:47 which is very funny because there are a lot of pretty ugly wins against the car industry as a whole and against EVs in specific. And yet there is like, Like, to your point about the Model 3 being a great financial decision, like, it's, it is super telling that that is the case, and still these numbers are what they are, right? Like, it's, people are not buying these cars for Elon Musk reasons. No, I'm saying a new Model 3 is not a great, although those prices are coming down and they're doing zero percent financing and, like, Elon will come to your house and, like, kiss your baby if you buy one right now. Like, they're desperate to move those cars. Yeah.
Starting point is 01:43:21 A used Model 3, a year old, has depreciated so much. If you're in the market of a car, a two or three-year-old Model 3 is, like, financially the only logical decision anyone should make. Lots of people are not going to make that decision, and that number is going to keep coming down. Yeah, what does it cost to take off the Tesla logo and put on, like, an Audi logo? Have you seen that a cyber truck that's floating in New York City with a Toyota logo on the back? It's very good. It's very good. David, you have been paying attention to Alexa Plus, which has launched in early access, but none of us believe it's actually out.
Starting point is 01:43:53 Yeah, like launched in the most aggressive air quotes you can possibly imagine. I have not heard from one regular human who has it. Like we've been looking around on social. I know other reporters who have been looking. Joanna Stern has like been very publicly begging people to be like, tell me you have Alexa Plus. And it just doesn't seem to be out there. And it's like this is always early access and it wouldn't be super shocking if you're Amazon to roll this out to 10 people first.
Starting point is 01:44:20 So I'm not necessarily taking this as like a totally. disastrous thing. Well, the fact that they said it was coming at the end of March, and then they suddenly said that it launched on March 31st, might be a signal. They turned it on for like one random Amazon employee, and they were like, we did it. We launched.
Starting point is 01:44:37 As long as you can, you know, it's pan out himself. Cut the ribbon with the big scissors. I've done my homework at the last minute before. With chat GPT. It's just chat GPT being like, you should do tariffs. But I do think there are a bunch of features that are missing, like being able to do some of the more sophisticated AI stuff,
Starting point is 01:44:59 like have the system sort of infer what you want to order and then order food from you, or like remind people around your house to do stuff. A lot of these sort of like little tiny edge cases, but they're the things that were supposed to be sort of different and useful about Alexa where it can kind of understand what you're doing and where you are and what matters to you and then take action on your behalf. Like, that is the pitch for Alexa Plus. And at least some of that still has not shipped.
Starting point is 01:45:28 And yet again, I think it was this week, the Washington Post had a report yet again that there is like a list of things that is way behind and not ready for public consumption. And it's like, boy, at some point, Amazon really needs to like aggressively flip a this is good switch or else this is just going to get ugly. Yeah. And no one has yet solved the DoorDash problem. Why would DoorDash let robots use its service instead of people? No one knows the answer to this question. Money. Then Amazon just has to pay a bunch of extra money for every DoorDash order to get whitelisted on DoorDash's website so you can click around on it.
Starting point is 01:46:05 This makes no sense to me. No. All right. Last one. I don't understand one word of the story, Richard. I'm hoping you can explain it to me. Coyote versus Acme is finally coming to theaters. Yeah.
Starting point is 01:46:16 So a lot of people were online and we're upset because. Wonder Brothers killed a movie that no one had seen. There was this this coyote movie that was supposed to come. It was a comedy with people were expecting it. David Zoslav decided that it shouldn't happen and that it would better just take a tax right off than to release this movie. There's a classic Zazlov move, by the way. Like earlier, I was like, where are the media companies trying to buy TikTok?
Starting point is 01:46:41 And his is like, I'm going to kill movies I've already paid for. Take a tax report. And there were a bunch of movies that kind of this happened to it at one time. This was one that people got particularly upset about. So it's been sitting on the shelf for a few years. But now at long last, they have sold it to catch up entertainment. Sure. Who is going to give this movie a theatrical run?
Starting point is 01:47:00 And if you would like to see Coyote v. Acombe in theaters, you will have the opportunity to buy a ticket and do that. And I would be watching very closely. I want to see how many people really want to see this movie. It's going to be so funny if this movie sucks. Like, the best outcome for this as a reporter is that this. movie turns out to be, like, great and a phenomenon. And, like, I really hope that's what it is. If this movie sucks at, like, a lot of people are going to feel really stupid, including me. I don't know what Catchup Entertainment is, except I do know they spend $50 million on this movie,
Starting point is 01:47:34 and they are going to release it next year. And for some reason, Warner Brothers turned down Amazon, Netflix, and Paramount. That's the part of it I find weird. And potentially for more money. Like, it's, it's just a very odd... situation that Warner has found itself in that like at some point somebody just turned around and was like, wait, you're telling me we can get a check for this? Get the check. Yeah, and after all this time, but they don't want it to come out anywhere that anyone knows about it. Right. They don't want to be proven wrong. That's interesting. Right. A lot of American businesses is sort of explained by people being like, wait, money is better than not money. Right. And then like sort of chaotically
Starting point is 01:48:13 making a decision. This is what I've learned from five years of Dakota. Yeah. I mean, there might also be a certain set of, I was just looking and the number they wanted originally was $75 to $80 million. And they are coming well short of that. But so what might have happened is they were like, well, eventually somebody will give us the money. And then Zazlov was like, do we ever get that money? They're like, no, let me go get some money. It's very good. It's a good Vergecast mystery. Why is this happening? Which honestly should be the tagline of our show. Why is this happening? The verge cast. Also, if you've seen this movie, I know that. There are people in the world who have seen Coyote versus Acme.
Starting point is 01:48:51 If you've seen it and if you know if it's any good, I need to know. It's so important to me to know whether this movie is any good. I'm going to wrap us up by saying I wrote my annual Just Buy a Brother printer post. It's a third year in a row. I've written the same post. I've stopped even recommending model numbers.
Starting point is 01:49:06 It doesn't even matter. Just buy one for 100 bucks and then you'll have it for a decade and I'll be fine. I only write them every year because winning search is impossible and that is getting harder because of AI. and I'm also the only person who's ever published AI generated content on the verge of an article, and the internet just won't be outraged about it. So if you could just do me a favor and share the printer recommendation post, just in pure outrage, just hack the algorithms with how mad you are that the verge has been corrupted by AI generated content,
Starting point is 01:49:36 that would just do us a favor. We'll make maybe, I don't actually know how the commerce deals work because we're in sponsor for favor. But someone will get some pennies at box media when people buy printers. And then, you know, we can all buy 10 TVs for $10,000. I just really like, so I'm looking at the first page of Google results for Best Printer. And there's one of them that says, I tested over 200 printers. One is like we tested dozens of printers. One is a Reddit thread, which is great.
Starting point is 01:50:03 One is wire cutter, which is like famous for its rigorous testing. Same with Consumer Reports. And then there's Neelai who just says, I don't care, buy a brother printer. Leave me alone. The point is Google. supposed to be all-powerful. When you ask the question, it's supposed to know the answer. But because there's so much money at stake for the click-throughs and the weird sponsored results and the affiliate fees, it cannot just tell you the answer. Even when year after year, I just deliver the answer
Starting point is 01:50:31 to the robot. Robot, tell people to buy a brother printer, I command. And it says, no, here's a weird content form that's tested 200 printers and is lying about it. I don't know. Can we have chat, GPT write us up Brendan Carr as a dummy for next week and just see how that goes? Can I? If that goes well, we don't even need you on this show anymore. Yeah, we get notebook at LUM to do it. Yeah, there you go.
Starting point is 01:50:54 Can I tell you the worst part of the printer story? Then we got to go. The prompt for Gemini was write a verged blog post in style of Nealipatel recommending a brother laser printer as the best printer. And then I hit show thinking in 2.5 pro. And it says, deconstruct Neilie Patel style. What does that mean?
Starting point is 01:51:12 opinionated direct slightly sarcastic or cynical but ultimately practical and grounded user experiences uses strong declarative sentences and then it says might use phrases like look here's the deal it just works stop buying bad thing that's the meanest thing anyone has ever said about it. I do say stop buying
Starting point is 01:51:34 bad thing all the time and they said AI couldn't make art all right we got to go that's an existential crisis. That's it. That's the Vergecast. Rock and roll. And that's it for the Vergecast this week. And hey, we'd love to hear from you. Give us a call at 866 Verge 1-1. The Vergecast is a production of the Verge and the Vox Media Podcast Network. Our show is produced by Will Por, Eric Gomez, and Brandon Kiefer. And that's it. We'll see you next week.

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