Monthly Archives: November 2020

News: Daily Crunch: Netflix tests a linear video channel

Netflix takes an old-fashioned approach for its latest feature, Amazon plans a new data center in India and we review the PlayStation 5. This is your Daily Crunch for November 6, 2020. The big story: Netflix tests a linear video channel Today in surprising product strategies: Netflix is testing a linear channel in France called

Netflix takes an old-fashioned approach for its latest feature, Amazon plans a new data center in India and we review the PlayStation 5. This is your Daily Crunch for November 6, 2020.

The big story: Netflix tests a linear video channel

Today in surprising product strategies: Netflix is testing a linear channel in France called Netflix Direct, according to Variety.

To be clear, it’s not a regular TV channel but rather something you access on Netflix’s website. But like a broadcast or cable channel, it ditches streaming’s on-demand side. Instead, you watch whatever movie or TV show is playing right now.

Netflix previously tested a Shuffle button, so apparently it’s very interested in exploring a viewer experience where you just turn the TV on and veg out. The service says it’s testing this in France because “many viewers like the idea of programming that doesn’t require them to choose what they are going to watch.”

The tech giants

Review: Sony’s PlayStation 5 is here, but next-generation gaming is still on its way — Devin Coldewey writes that the new generation of consoles is both a hard and an easy sell.

Amazon to invest $2.8 billion to build its second data center region in India — The investment will allow Amazon to launch an AWS Cloud region in Hyderabad by mid-2022.

Steve Bannon’s show pulled off Twitter and YouTube over calls for violence — Bannon had his show suspended from Twitter and an episode removed by YouTube after calling for violence against FBI director Christopher Wray and Dr. Anthony Fauci.

Startups, funding and venture capital

Challenger bank Starling is out raising a new £200M funding round — Having raised £363 million to date, including a £100 million state-aid grant, Starling now boasts 1.9 million customers.

Chinese autonomous vehicle startup Pony.ai hits $5.3 billion valuation — The company has raised more than $1 billion since its founding, including $400 million from Toyota.

Provizio closes $6.2M seed round for its car safety platform using sensors and AI — The startup has a “five-dimensional” sensory platform that supposedly perceives, predicts and prevents car accidents in real time and beyond the line-of-sight.

Advice and analysis from Extra Crunch

Startups making meat alternatives are gaining traction worldwide — New partnerships with global chains like McDonald’s in Hong Kong, the launch of test kitchens in Israel and new financing rounds for startups in Sydney and Singapore point to abounding opportunities.

Software companies are reporting a pretty good third quarter — It’s great news for startups looking for capital heading into 2021.

(Reminder: Extra Crunch is our membership program, which aims to democratize information about startups. You can sign up here.)

Everything else

Europe urges e-commerce platforms to share data in fight against coronavirus scams — The concern here is not only consumers being ripped off, but also the real risk of harm if people buy a product that does not actually protect them as claimed.

Elon Musk’s Tesla tequila will run you $250 a bottle — Sure, why not.

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 3pm Pacific, you can subscribe here.

News: Startups making meat alternatives are gaining traction worldwide

Startups that produce lab-grown meat and meat substitutes are gaining traction and raising cash in global markets, mirroring a surge of support food tech companies are seeing in the United States. New partnerships with global chains like McDonald’s in Hong Kong, the launch of test kitchens in Israel and new financing rounds for startups in

Startups that produce lab-grown meat and meat substitutes are gaining traction and raising cash in global markets, mirroring a surge of support food tech companies are seeing in the United States.

New partnerships with global chains like McDonald’s in Hong Kong, the launch of test kitchens in Israel and new financing rounds for startups in Sydney and Singapore point to abounding opportunities in international markets for meat alternatives.

In Hong Kong, fresh off a $70 million round of funding, Green Monday Holdings’ OmniFoods business unit was tapped by McDonald’s to provide its spam substitute at locations across the city.

The limited-time menu items featuring OmniFoods’ pork alternatives show that the fast food chain remains willing to offer customers vegetarian and vegan sandwich options — so long as they live outside of the U.S. In its home market, McDonald’s has yet to make any real initiatives around bringing lab-grown meat or meat replacements to consumers.

Speaking of lab-grown meat, consumers in Tel Aviv will now be able to try chicken made from a lab at the new pop-up restaurant The Chicken, built in the old test kitchen of the lab-grown meat producer SuperMeat.

The upmarket restaurant doesn’t cost a thing: it’s free for customers who want to test the company’s blended chicken patties made with chicken meat cultivated from cells in a lab that are blended with soy, pea protein or whey, according to the company.

News: Provizio closes $6.2M seed round for its car safety platform using sensors and AI

Provizio, a combination hardware and software startup with technology to improve car safety, has closed a seed investment round of $6.2million. Investors include Bobby Hambrick (the founder of Autonomous Stuff); the founders of Movidius; the European Innovation Council (EIC); ACT Venture Capital. The startup has a “five-dimensional” sensory platform that — it says — perceives,

Provizio, a combination hardware and software startup with technology to improve car safety, has closed a seed investment round of $6.2million. Investors include Bobby Hambrick (the founder of Autonomous Stuff); the founders of Movidius; the European Innovation Council (EIC); ACT Venture Capital.

The startup has a “five-dimensional” sensory platform that — it says — perceives, predicts and prevents car accidents in real time and beyond the line-of-sight. Its “Accident Prevention Technology Platform” combines proprietary vision sensors, machine learning and radar with ultra-long range and foresight capabilities to prevent collisions at high speed and in all weather conditions, says the company. The Provizio team is made up of experts in robotics, AI and vision and radar sensor development.

Barry Lunn, CEO of Provizio said: “One point three five road deaths to zero drives everything we do at Provizio. We have put together an incredible team that is growing daily. AI is the future of automotive accident prevention and Provizio 5D radars with AI on-the-edge are the first step towards that goal.”

Also involved in Provizio is Dr. Scott Thayer and Prof. Jeff Mishler, formally of Carnegie Mellon robotics, famous for developing early autonomous technologies for Google / Waymo, Argo, Aurora and Uber.

News: Europe urges ecommerce platforms to share data in fight against coronavirus scams

European lawmakers are pressing major ecommerce and media platforms to share more data with each other as a tool to fight rogue traders who are targeting consumers with coronavirus scams. After the pandemic spread to the West Internet platforms were flooded with local ads for PPE of unknown and/or dubious quality and other dubious coronavirus

European lawmakers are pressing major ecommerce and media platforms to share more data with each other as a tool to fight rogue traders who are targeting consumers with coronavirus scams.

After the pandemic spread to the West Internet platforms were flooded with local ads for PPE of unknown and/or dubious quality and other dubious coronavirus offers — even after some of the firms banned such advertising.

The concern here is not only consumers being ripped off but the real risk of harm if people buy a product that does not offer the protection claimed against exposure to the virus or even get sold a bogus coronavirus ‘cure’ when none in fact exists.

In a statement today, Didier Reynders, the EU commissioner for justice, said: “We know from our earlier experience that fraudsters see this pandemic as an opportunity to trick European consumers. We also know that working with the major online platforms is vital to protect consumers from their illegal practices. Today I encouraged the platforms to join forces and engage in a peer-to-peer exchange to further strengthen their response. We need to be even more agile during the second wave currently hitting Europe.”

The Commission said Reynders met with 11 online platforms today — including Amazon, Alibaba/AliExpress, Ebay, Facebook, Google, Microsoft/Bing, Rakuten and (TechCrunch’s parent entity) Verizon Media/Yahoo — to discuss new trends and business practices linked to the pandemic and push the tech companies to do more to head off a new wave of COVID-19 scams.

In March this year EU Member States’ consumer protection authorities adopted a common position on the issue. The Commission and a pan-EU network of consumer protection enforcers has been in regulator contact with the 11 platforms since then to push for a coordinated response to the threat posed by coronavirus scams.

The Commission claims the action has resulted in the platforms reporting the removal of “hundreds of millions” of illegal offers and ads. It also says they have confirmed what it describes as “a steady decline” in new coronavirus-related listings, without offering more detailed data.

In Europe, tighter regulations over what ecommerce platforms sell are coming down the pipe.

Next month regional lawmakers are set to unveil a package of legislation that will propose updates to existing ecommerce rules and aim to increase their legal responsibilities, including around illegal content and dangerous products.

In a speech last week, Commission EVP Margrethe Vestager, who heads up the bloc’s digital policy, said the Digital Services Act (DSA) will require platforms to take more responsibility for dealing with illegal content and dangerous products, including by standardizing processes for reporting illegal content and dealing with reports and complaints related to content.

A second legislative package that’s also due next month — the Digital Markets Act — will introduce additional rules for a sub-set of platforms considered to hold a dominant market position. This could include requirements that they make data available to rivals, with the aim of fostering competition in digital markets.

MEPs have also pushed for a ‘know your business customer’ principle to be included in the DSA.

Simultaneously, the Commission has been pressing for social media platforms to open up about what it described in June as a coronavirus “infodemic” — in a bid to crack down on COVID-19-related disinformation.

Today the Commission gave an update on actions taken in the month of September by Facebook, Google, Microsoft, Twitter and TikTok to combat coronavirus disinformation — publishing its third set of monitoring reports. Thierry Breton, commissioner for the internal market, said more needs to be done there too.

“Viral spreading of disinformation related to the pandemic puts our citizens’ health and safety at risk. We need even stronger collaboration with online platforms in the coming weeks to fight disinformation effectively,” he said in a statement. 

The platforms are signatories of the EU’s (non-legally binding) Code of Practice on disinformation.

Legally binding transparency rules for platforms on tackling content such as illegal hate speech look set to be part of the DSA package. Though it remains to be seen how the fuzzier issue of ‘harmful content’ (such as disinformation attached to a public health crisis) will be tackled.

A European Democracy Action Plan to address the disinformation issue is also slated before the end of the year.

In a pointed remark accompanying the Commission’s latest monitoring reports today, Vera Jourová, VP for values and transparency, said: “Platforms must step up their efforts to become more transparent and accountable. We need a better framework to help them do the right thing.”

News: Funded by Connect Ventures, Purple Dot plans to take on Klarna-style purchase debt

In recent times startups have appeared offering credit at an e-commerce basket checkout so that a customer can buy a product without needing to pay right away. Klarna or Clearpay are the two most notable in this field. But what if you flipped the model around so that consumers could buy the item at a

In recent times startups have appeared offering credit at an e-commerce basket checkout so that a customer can buy a product without needing to pay right away. Klarna or Clearpay are the two most notable in this field. But what if you flipped the model around so that consumers could buy the item at a lower price later on, and the retailer could reduce waste? This is the model of Purple Dot, which bills itself as a ‘worth-the-wait’ payment option for fashion brands.

It’s now raised a seed round of £1.35 million, led by Connect Ventures, with support from AI Seed, Moxxie Ventures, Andy Chung and Philipp Moehring from AngelList, Alex Roetter former SVP of Engineering at Twitter and the family office of Paul Forster, co-founder of Indeed.com.

Founded in August 2019 by senior Skyscanner employees Madeline Parra (CEO) and John Talbott (CTO), Purple Dot allows consumers to request a ‘worth-the-wait’ lower price. The advantage for retailers is that they can then decide whether or not to release a fashion product mid-season at a slightly reduced rate in order to secure the sale.

“Unlike Klarna, we don’t encourage consumers to buy stuff they can’t afford.”

The customers still pays upfront and then waits to have the item confirmed, receiving a full refund if not. The Purple Dot payment method sits alongside ‘buy now, pay later’ finance options.

This ‘worth-the-wait’ price does not usually fall below a 10-20% reduction from the recommended retail price, thus reducing losses from end-of-season discounting, where discounts are much deeper. The advantage for the consumer is that they don’t then rack up debt on their purchases.

The startup says it’s already in talks with a number of major UK and US high street brands but has already secured menswear retailer Spoke, which will also use the tech for ‘pre-ordering’. This means they can test out new styles, designs and fabrics in a limited manner, thus reducing waste (and therefore carbon emissions) when they commit to a new line of clothing.

Madeline Parra, CEO of Purple Dot, commented: “When shopping online today, customers can either pay the retail price or walk away. When they do walk away, the item goes through the discounting process, becomes unprofitable for the merchant and is resigned to landfill. This binary system isn’t working for anyone – the customer loses out on the item, because it may go out of stock in their size before they attempt to purchase it again, and the merchant loses the sale. Purple Dot tackles this problem head-on by providing a new way to shop, taking on unsustainable, unrelenting consumerism, poor pricing tactics and profit-crunching sales at the same time.”

Speaking to TechCrunch she also added that “Unlike Klarna, we don’t encourage consumers to buy stuff they can’t afford.”

Pietro Bezza, General Partner at Connect Ventures, commented:  “Purple Dot’s innovative proposition benefits retailers by creating a solution to their inventory problems. End of season ‘panic sales’ have long caused financial uncertainty for retailers and a negative impact on the environment in equal measure.”

News: French startups can apply to the Next40 and French Tech 120

Last year, the French government and the government-backed initiative La French Tech unveiled an index of French startups so that it would be easier to identify them. The 40 top-performing startups get the label Next40, and the top 120 startups are grouped into the French Tech 120 — it’s a play on words with the

Last year, the French government and the government-backed initiative La French Tech unveiled an index of French startups so that it would be easier to identify them. The 40 top-performing startups get the label Next40, and the top 120 startups are grouped into the French Tech 120 — it’s a play on words with the CAC40 and SBF 120 stock indexes.

Here’s a list of the 40 private companies in this year’s Next40:

Image Credits: La French Tech

But creating a club without perks would be a bit useless. That’s why you get some perks as a member of the Next40 and French Tech 120. Those companies automatically access a fast-track administrative system — every startup gets a representative for their particular needs.

If you’re facing administrative issues, such as getting visas for foreign employees, getting a certification or a patent or selling your product to a public administration, you can more easily find the right person that can solve your issue.

“The coolest thing is that they can ask us for anything: ‘I’m about to do bizdev in China,’ ‘I’m launching a rocket and I need to test it on a space facility’ or ‘I’m hiring 50 people and I need them and all their families here,’ ” La French Tech director Kat Borlongan told me last year.

Now, the government is working on refreshing the index. And in order to do that, you’ll have to apply and match the exact same criteria as last year.

Once you have proven that you’re an independent French startup, there are two different ways to get accepted in the Next40:

  • If you have raised more than €100 million over the past three years or if your company has a valuation of $1 billion or more, you’re automatically part of the Next40.
  • If you’ve closed “one of the most important funding rounds of the past three years” and you generate more than €5 million in revenue with a year-over-year growth rate of 30% or more for the past three years.

As for the remaining 80 startups in the French Tech 120:

  • 40 of them will be selected if they have raised more than €20 million in a funding round over the past three years.
  • 40 of them will be selected based on the annual turnover and the growth rate.

Some companies in the Next40 will remain in the index, others will leave the index. And the government is fine with that.

“In the coming years, some companies will shut down, others will get acquired by French and foreign companies. It’s normal and healthy,” France’s digital minister Cédric O said in a press briefing.

There are two new things that are worth highlighting. First, the government has signed a partnership with Euronext to educate entrepreneurs about going public. There are few public French tech companies, and the government hopes it can reverse this trend.

Second, in January 2021, the government will also select 20 greentech startups so they can access the same fast-track programs. It is going to be a separate list.

News: Chinese autonomous vehicle startup Pony.ai hits $5.3 billion valuation

Pony.ai, the Chinese autonomous vehicle startup and relative newcomer to the industry, is now valued at $5.3 billion following a fresh injection of $267 million in funding. The round was led by TIP, an innovation fund within the Ontario Teachers’ Pension Plan Board that focuses on late-stage venture and growth equity investments in companies that

Pony.ai, the Chinese autonomous vehicle startup and relative newcomer to the industry, is now valued at $5.3 billion following a fresh injection of $267 million in funding.

The round was led by TIP, an innovation fund within the Ontario Teachers’ Pension Plan Board that focuses on late-stage venture and growth equity investments in companies that deliver disruptive technology. Existing partners Fidelity China Special Situations PLC, 5Y Capital (formerly Morningside Venture Capital), ClearVue Partners and Eight Roads also participated in the round.

The new funds will primarily be used for research and development, according to the company.

Pony.ai has won over investors, OEMs and Tier 1 suppliers during its four-year existence. The company, which operates in China and California, has raised more than $1 billion since its founding, including $400 million from Toyota. Pony has several partnerships or collaborations with automakers and suppliers, including Bosch, Hyundai and Toyota.

Pony is building what it describes as an agnostic virtual driver for all sizes of vehicles, from small cars to large trucks, and to operate on both ridesharing and logistics (delivery) service networks. The company said back in 2019 that it was working with OEMs and suppliers to apply its automated technology to the long-haul trucking market. But it’s perhaps best known for its effort around robotaxis.

The company has launched ridesharing and commuter pilots in Fremont and Irvine, California and Guangzhou, China. Last year, a fleet of electric, autonomous Hyundai Kona crossovers equipped with a self-driving system from Pony.ai and Via’s ride-hailing platform began shuttling customers on public roads. The robotaxi service, called BotRide, wasn’t a driverless service, as there was a human safety driver behind the wheel at all times. The BotRide pilot concluded in January 2020.

The company then started operating a public robotaxi service called PonyPilot in the Irvine area. Pony shifted that robotaxi service from shuttling people to packages as the COVID-19 pandemic swept through the world. In April, Pony.ai announced it had partnered with e-commerce platform Yamibuy to provide autonomous last-mile delivery service to customers in Irvine. The new delivery service was launched to provide additional capacity to address the surge of online orders triggered by the COVID-19 pandemic, Pony.ai said at the time.

News: Software companies are reporting a pretty good third quarter

What a difference a week makes. This time last week, in the wake of earnings from tech’s five largest American companies and early results from other software companies, it appeared that tech shares were in danger of losing their mojo. The Exchange explores startups, markets and money. Read it every morning on Extra Crunch, or

What a difference a week makes.

This time last week, in the wake of earnings from tech’s five largest American companies and early results from other software companies, it appeared that tech shares were in danger of losing their mojo.


The Exchange explores startups, markets and money. Read it every morning on Extra Crunch, or get The Exchange newsletter every Saturday.


But then, this week’s rally launched, and more earnings results came in. Generally speaking, the Q3 numbers from SaaS and cloud companies have been medium-good, or at least good enough to protect historically stretched valuations when comparing present-day revenue multiples to historical norms.

This is great news for yet-private startups that have had to deal with a recession, an uneven and at-times uncertain funding market, an election cycle and other unknowns this year. Wrapping 2020 with a market rally and strong earnings from public comps should give private software companies a halo heading into the new year, assisting them with both fundraising and valuation defense.

Of course, there’s still a lot more data to come in, markets are fickle and many SaaS companies will report next month, having a fiscal calendar offset by a month from how you and I track the year. But after spending time on the phone this week with JFrog’s CEO, BigCommerce’s CEO and Ping Identity’s CFO, I think things are turning out just fine.

Let’s get into what we’ve learned.

Growth and expectations

Kicking off, Redpoint’s Jamin Ball, a venture capitalist who unconsciously moonlights as the research desk for the The Exchange during earnings season, has a roundup of earnings results from this week’s set of SaaS and cloud stocks that reported. As you will recall, last week we were slightly unimpressed by its cohort of results.

Here’s this week’s tally:

As we can see, there was a single miss amongst the group in Q3. Unsurprisingly, that company, SurveyMonkey, was also one of three SaaS companies to project Q4 revenue under street expectations. My read of that chart is seeing a little less than 80% of the group that did project Q4 guidance that bests expectations is bullish, as were the Q3 results, which included a good number of companies that topped targets by at least 10%.

Inside of the data are two narratives that I want to explore. The first is about COVID-related friction, and the second is about COVID-related acceleration. Every company in the world is experiencing at least some of the former. For example, even companies that are seeing a boom in demand for their products during the pandemic must still deal with a sales market in which they cannot operate as they would like to.

For software companies, reportedly in the midst of a hastening digital transformation, the question becomes whether or not the COVID’s minuses are outweighing its pluses. We’ll explore the matter through the lens of three companies that The Exchange spoke with this week after they reported their Q3 results.

Ping Identity

Of our three companies this week, Ping Identity had the hardest go of it; its stock fell sharply after it dropped its Q3 numbers, despite beating earnings expectations for the period.

The company’s revenue fell 3%, while its annual recurring revenue (ARR) rose by 17%. Why did its stock fall if it came in ahead of expectations? You could read its Q4 guidance as slightly soft. In the above chart it’s marked as a slight beat, but its low-end came in under analyst expectations, creating the possibility of a projected miss.

Investors, betting on Ping’s move to SaaS being accretive both now and in the long-term, were not stoked by its Q4 forecast.

News: Slintel grabs $4.2M seed to grow sales intelligence platform

As the pandemic rages on, companies are looking for an edge when it comes to sales. Having the right data about the customers most likely to convert can be a huge boost right now. Slintel, an early-stage startup building a sales intelligence tool, announced a $4.2 million seed round today. The investment was led by

As the pandemic rages on, companies are looking for an edge when it comes to sales. Having the right data about the customers most likely to convert can be a huge boost right now. Slintel, an early-stage startup building a sales intelligence tool, announced a $4.2 million seed round today.

The investment was led by Accel with help from Sequoia Capital India and existing investor Stellaris Venture Partners. The company reports it has now raised $5.7 million, including a pre-seed round last year.

Deepak Anchala, company founder and CEO, says that while sales and marketing teams are trying to target a broad market, most of the time their emails and other forms of communication with customers fall flat. As a sales person in previous startups, Eightfold and Tracxn, this was a problem Anchala experienced first hand. He believed with data, he could improve this, and he started Slintel to build a tool to provide the sales data that he was missing in these previous positions.

“We focus on helping our customers solve that [lack of data] by identifying people with high buying intent. So we are able to tell sales and marketing teams, for example, who is most likely to buy your product or your service, and who is most likely to buy your product today, as opposed to two months or six months from now,” Anchala explained.

They do this by looking at signals that might not be obvious, but which let sales teams know key information about these companies and their likelihood of buying soon. He says that every company leaves a technology footprint. This could be data from SEC filings, annual reports, job openings and so forth.

“In today’s world there is an enormous amount of footprint left online when a company uses a certain product. So what our algorithms do is we map that at scale for about 15 million companies to all the products that they’re using from the different sources we are able to identify — and we track it all from week to week,” he said.

The company has 45 employees today and expects to double that number by the end of 2021. As he builds the company, especially as an immigrant founder, Anchala wants to build a diverse and inclusive organization.

“I think one of the key successes for companies today is having diversity. We have a global workforce, so we have a workforce in the U.S. and India and we want to capitalize on that. In the next phase of hires we are looking at hiring more diverse candidates, more female employees and people of different nationalities,” he said.

The company, which was founded in 2018, and emerged from stealth last year, has amassed 100 enterprise customers and has seen most of the customers actually come on board this year as COVID has forced companies to find ways to be more efficient with their sales processes.

News: Review: Sony’s PlayStation 5 is here, but next-generation gaming is still on its way

The new generation of consoles is both a hard and an easy sell. With a big bump to specs and broad backwards compatibility, both the PlayStation 5 and Xbox Series X are certainly the consoles anyone should buy going forward. But with nearly no launch content or must-have features they also fail to make a

The new generation of consoles is both a hard and an easy sell. With a big bump to specs and broad backwards compatibility, both the PlayStation 5 and Xbox Series X are certainly the consoles anyone should buy going forward. But with nearly no launch content or must-have features they also fail to make a compelling case for themselves beyond “the same, but better.” What we’re left with is something more like a new iPhone: You’ll have to upgrade eventually, and it’ll be fine. Just don’t believe the hype for the new consoles… yet.

Disclosure: TechCrunch was provided consoles from both Microsoft and Sony ahead of release, as well as a handful of titles from first- and third-party publishers.

In accordance with an elaborate (and ongoing!) series of embargoes for different features and games, impressions have been trickling out about the new platforms for a month now. For a launch that’s already lacking impact, this may have further blunted excitement: Few gamers will get excited when all anyone can write about is the exterior of the console itself, or the first level of the pack-in game. Some features wouldn’t even be available before launch, or are prohibited from coverage until long afterwards, leaving reviewers wondering whether day-one changes would make any impressions they had obsolete. (I’ll update this review when new information comes to light, or link to future coverage.)

But whatever the case, the shackles are finally removed and now we can talk about most (but not all) the new consoles have to offer. Unfortunately it’s… not that much. Despite the companies’ attempts to hype the next generation as a huge leap, there’s simply no evidence of that at launch and probably won’t be for many months.

That doesn’t mean the new platforms are a flop — or even that they aren’t great. But the new generation is a lot like the old one, and compatibility with it is actually the biggest thing the PS5 and Series X have going for them for the opening stretch. Here’s what I can tell you honestly about my time with the PS5.

The hardware: Conversation piece

A PS5 console with a PS4 on top

As you can see, the PS5 is CONSIDERABLY larger than the PS4 Slim.

The PS5 is a strange-looking beast, but I’ll give it this: no one is going to mistake it for any other gaming console. Though they may think it’s an air purifier.

The large, curvy device likely won’t fit with anyone’s decor, so it may be best to just bite the bullet and display it prominently (fortunately it sits comfortably vertically or on a stand horizontally). I look forward to getting custom shields for the side to make this thing a little less prominent.

The console is fairly quiet while playing games, but you’ll probably want it at least a few feet away from you, especially if you’re going to play with a disc, which is much louder than normal operation.

As for performance, it’s really impossible to say. The only “next-gen” (really cross-gen) game I got to play much of was Spider-Man: Miles Morales, and while it looked great (more impressions below), it’s incredibly hard to make any substantive comment on the machine’s computing and rendering chops.

Close up of the Sony logo on the PS5 and tiny characters making a pattern.

Image Credits: Devin Coldewey / TechCrunch

The prospect of gaming in 4K and HDR, and of advanced techniques like ray tracing changing how games look, is an exciting one. But in the first place you need a TV setup that’s capable of taking advantage of these features, and in the second — to be perfectly honest, they’re not all they’re cracked up to be. A high-quality 1080p TV from the last couple years will look very nearly as good despite not supporting Dolby Vision or what have you. (I know because I got a new TV during the review period. They both looked great.)

Load times — a factor of the much-lauded custom SSD in this thing — are similarly hard to evaluate, though certainly going from menu to game in Miles Morales was fast, fast-traveling faster, and the previous game was faster to load than on my regular PS4. This benefit will of course vary from game to game, however — some developers are announcing their performance gains publicly, while others with less impressive ones may just let sleeping dogs lie. Without more titles to get a feel for the console’s performance improvements, right now you’ll have to take Sony’s word on things.

The controller: DualSense makes sense

Close up image of a Sony DualSense controller

Image Credits: Devin Coldewey/TechCrunch

One place where Sony is attempting to advance the ball is in the new DualSense controller.

Not in the shape and color and slick, transparent buttons — those are not so hot. It feels like a DualShock that’s let itself go a bit, and I’m definitely not a fan of the “PS” shaped PlayStation button. This thing feels like a grime magnet.

And not in the built-in speaker and microphone, either; I struggle to think of any application for these that wouldn’t be better served by a headset or avoided altogether.

What’s actually a clear and impressive upgrade is the triggers, which feature incredibly precise mechanical resistance that serves all kinds of gameplay functions and sets the imagination running.

A Playstation 5 and 4 controller next to each other.

Image Credits: Devin Coldewey / TechCrunch

The new triggers are connected to a set of gears that impart actual pressure against your fingers, from a very light tap to, presumably (though I haven’t experienced it), actually pushing your fingers back.

The range is wide and it can impart the pressure anywhere along the trigger’s range, giving interesting effects like (the obvious one in violent games) resistance while you pull a gun’s trigger, which then clicks and releases when it fires. In Miles Morales, the triggers act as a very sensitive rumble, but also give you tactile feedback when you’re swinging, telling you when you’ve made contact and so on.

Honestly, I love it. I want to play games that use it well. I don’t want to play games that don’t have it! Hopefully developers will embrace the variable-resistance triggers, because it genuinely adds something to the experience and if I’m not mistaken even has the potential to make games more accessible.

The UI: More is more

The PS4’s interface had the illusion of simplicity, and the PS5 continues that with two steps forward and one step back.

For one thing, separating out the “games” and “media” portions of the machine is a smart move. As OTT apps and streaming services proliferate they take up more and more space and it makes perfect sense to isolate them.

Screenshot of the PS5 menu.

As for the games side, it’s similar to the PS4 in that it’s a horizontal line that you click through, and when a game is highlighted it “takes over” the screen with a background, the latest news, achievements, and so on. As before it works perfectly well.

Previously, when you pressed the PlayStation button, you’d return to the main menu and pause whatever you were playing. If you held down the button, it opened an in-game side menu where you could invite friends, turn off the console, and other common tasks.

The PS5 reverses that: the long press now returns you to the home screen, while a short press brings up the in-game menu (now a row of tiny icons on the bottom of the screen — not a fan of this change).

The in-game menu now sports an in-depth “card” system that, while cool in theory, seems like one of those things that will not actually be used to great effect. The giant cards show recent screenshots and achievements, friend activity, and if the developer has enabled it, info about your current mission or game progress.

For instance, in Miles Morales, hitting pause told me I was 22% of the way through a side mission to rescue a bodega cat named Spider-Man, with an image of the bodega where I accepted it. Nice, but it’s redundant with the info presented in-game if I pause in the ordinary way. There’s more to it, though — the cards can also be used as “deep links” to game features like multiplayer, quests in progress, quick travel locations, even hints.

Sony showed these advanced possibilities off in a video of Sackboy: The Big Adventure, but since that game isn’t yet available I can’t yet speak to how well it works. More importantly, I can’t make any promises on behalf of developers, who may or may not integrate the system well. At the very least it could be nice, but I’m afraid it will be relegated to first-party games (of which Sony promises many) and be optional at that.

It’s hard to call the new UI an improvement over the old one — it’s different, in some ways more busy and in some ways streamlined. Where it may improve things is in reducing friction in things like organizing voice chat and joining friends’ games. But that capability wasn’t ready for launch.

A couple nice things I want to note: Setting up the PS5 to your own preferences is super easy. I downloaded my cloud saves in a minute or two, and there’s a great new settings page for things people often change in games: difficulty, language, inverting the camera, and some other things. There are also accessibility options built-in: a screen reader, chat transcription, and other goodies I wasn’t able to test but am glad to see.

The games: Well… the PS5 is the best PS4 you can buy

The chief reason for buying a new console is to play the new games on it. When the Switch came out, half the reason anyone bought it was to play the fabulous new Zelda. Sadly, the selection at this launch is laughably thin for both Sony and Microsoft fanboys.

As I noted above, the only game I was provided in time to get any real impressions (that I’m permitted to write about) was Spider-Man: Miles Morales. Having recently completed its predecessor on PS4, I can say that the new game looks and plays better, with shorter load times, improved lighting, more detailed buildings, and so on. But the 2018 Spider-Man still looks and plays very well — this is the difference you’d expect in a sequel, not from one generation to the next.

A screenshot of Spider-Man: Miles Morales on PS5As far as a review goes, I’ll just say that if you liked the first, you’ll like the second, and if you didn’t play the original, play it first because it’s great. I also want to hand it to the new game for its commitment to diversity.

But that will also be coming out on the PS4… and Xbox One and Series X… In fact, almost all the big games of the next year will be.

They will, of course, play and look better on the PS5 than the PS4. But it’s a hard sell to tell someone to pay $500 so they can play the next Assassin’s Creed or Horizon: Zero Dawn in 4K HDR rather than 1080p.

Meanwhile, the few games you can only play on PS5 are niche players. Sackboy looks to be a fun platformer but hardly a blockbuster; Demon’s Souls is my most anticipated title of the season, but a remake of a legendary but little-played and controller-bitingly difficult PS3 game isn’t going to break sales records; Destruction All-Stars, an online-only racing battle royale game, got delayed until February, which suggests it’s not playing well.

Adding them all up there really isn’t much reason in terms of exclusives to pick the PS5 over the Xbox Series X or, at least for 2021, a PS4 Pro.

The good news is that the PS5 is now without a question the best way to play the huge catalog of amazing PS4 games out there. Nearly all of them will look better, play better, and load faster. Sony as much as admitted this when they bundled a dozen of the best games from the last generation with the PS5. Honestly, I’m looking forward to finally playing God of War (I know… don’t hassle me!) on this thing than I am to Assassin’s Creed: Valhalla.

Unfortunately I can’t speak to whether these PS4 games have much to speak of in terms of real improvements yet. As mentioned above, a lot of that depends on support from the developers. But as a simple test, loading the Central Yharnam area in Bloodborne took about 33 seconds on the PS4, and 16 on the PS5 (as you can see in the shots above, the game looks identical). I didn’t time them, but anecdotally other games showed improvements as well.

The verdict: The must-have console for the 2021 holidays

A PS5 console

Image Credits: Devin Coldewey / TechCrunch

No, that isn’t a typo. The PS5 (and I am joined in this opinion by our review of its rival, the Xbox Series X) simply isn’t a console anyone should rush out and purchase for any reason. Not least of which because it will be near-impossible to get one in the next month or so, making the possibility of unwrapping a PS5 a remote one for eager youths.

The power of the next generation is not much on display in any of the titles I have been able to play, and while a handful of upcoming games may show off its advantages, those games will likely play just as well on the other platforms they’re being released on.

Nor are there any compelling new features that make the PS5 feel truly next gen, with the possible exception of the variable resistance triggers (the Series X has multi-game suspension at least, and I’d jealous if there were any games to switch between). For the next 6-8 months, the PS5 will merely be the best way to play the same games everyone else is playing, or has been playing for years, but in 4K. That’s it!

The rush by Sony and Microsoft to get these consoles out by the holidays this year simply didn’t have the support of the publishers and developers that make the games that make consoles worth having. That will change late next year as the actual next-gen titles and meaningful exclusives start to appear. And a year from now the PS5 and Series X will truly be must-haves, because there will be things that are only available for them.

I’m not saying buy your kid a PS4 Pro for Christmas. And I’m not saying the PS5 isn’t a great way to play games. I’m just saying that outside some slight differences that many gamers don’t even have the setup to notice, there’s no reason to run out and buy a PS5 right now. Relax and enjoy the latest, greatest games on your old PS4 in confidence, knowing that you’ll save $50 when a Cyberpunk 2077 bundle goes on sale in the summer.

So don’t feel bad if you can’t lay your hands on a PS5 to keep you entertained this winter — a PS4 will do you just fine for the present while the next generation makes its lazy way towards the consoles it will eventually grace.

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