‘Dr. Phil”s stolen classic Chevy recovered

BURBANK, Calif. (AP) — Los Angeles police say they’ve recovered a stolen 1957 Chevrolet Bel Air Convertible that belongs to talk-show host Phil McGraw.

Detective Jess Corral said Tuesday that investigators recovered McGraw’s classic car, along with 13 others, after law enforcement began targeting auto theft rings.

McGraw is known as television’s “Dr. Phil. His car was stolen from the RODZ shop in Burbank in August, and was found with minor damage.

The car is worth at least $ 80,000.

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Generic Drug Makers Facing Squeeze on Revenue

They call it the patent cliff.

Brand-name drug makers have feared it for years. And now the makers of generic drugs fear it, too.

This year, more than 40 brand-name drugs — valued at $35 billion in annual sales — lost their patent protection, meaning that generic companies were permitted to make their own lower-priced versions of well-known drugs like Plavix, Lexapro and Seroquel — and share in the profits that had exclusively belonged to the brands.

Next year, the value of drugs scheduled to lose their patents and be sold as generics is expected to decline by more than half, to about $17 billion, according to an analysis by Crédit Agricole Securities.“The patent cliff is over,” said Kim Vukhac, an analyst for Crédit Agricole. “That’s great for large pharma, but that also means the opportunities theoretically have dried up for generics.”

In response, many generic drug makers are scrambling to redefine themselves, whether by specializing in hard-to-make drugs, selling branded products or making large acquisitions. The large generics company Watson acquired a European competitor, Actavis, in October, vaulting it from the fifth- to the third-largest generic drug maker worldwide.

“They are certainly saying either I need to get bigger, or I need to get ‘specialer,’ ” said Michael Kleinrock, director of research development at the IMS Institute for Healthcare Informatics, a health industry research group. “They all want to be special.”

As one consequence of the approaching cliff, executives for generic drug companies say, they will no longer be able to rely as much on the lucrative six-month exclusivity periods that follow the patent expirations of many drugs. During those periods, companies that are the first to file an application with the Food and Drug Administration, successfully challenge a patent and show they can make the drug win the right to sell their version exclusively or with limited competition.

The exclusivity windows can give a quick jolt to companies. During the first nine months of 2012, sales of generic drugs increased by 19 percent over the same period in 2011, to $39.1 billion from $32.8 billion, according to Michael Faerm, an analyst for Credit Suisse. Sales of branded drugs, by contrast, fell 4 percent during the same period, to $174.2 billion from $181.3 billion.

But those exclusive periods also make generic drug makers vulnerable to the fickle cycle of patent expiration. “The only issue is it’s a bubble, too,” said Mr. Kleinrock. He said next year, the generic industry would enter a drought that was expected to last about two years.  Of the drugs that are becoming generic, fewer have exclusivity periods dedicated to a single drug maker.

In 2013, for example, the antidepressant Cymbalta, sold by Eli Lilly, is scheduled to be available in generic form. But more than five companies are expected to share in sales during the first six months, according to a report by Ms. Vukhac.

Heather Bresch, the chief executive of Mylan, the second-largest generics company in the United States, said Wall Street analysts were obsessed with the issue. “I can’t go anywhere without being asked about the patent cliff, the patent cliff, the patent cliff,” she said. “The patent cliff is one aspect of a complex, multilayered landscape, and I think each company is going to face it differently.”

Jeremy M. Levin, the chief executive of Teva Pharmaceuticals, the largest global maker of generic drugs, agreed. “The concept of exclusivity — where only one generic player could actually make money out of the unique moment — has diminished,” he said. “In the absence of that, many companies have had to really ask the question, ‘How do I really play in the generics world?’ ”

For Teva, Mr. Levin said, he believes the answer will be both its reach  — it sells 1,400 products, and one in six generic prescriptions in the United States is filled with a Teva product  — and what he says is a reputation for making quality products. That focus will be increasingly important, he said, given recent statements by the F.D.A. that it intends to take a closer look at the quality of generic drugs. Mr. Levin also said he planned to cut costs, announcing last week that he intended to trim from $1.5 to $2 billion in expenses over the next five years.

This article has been revised to reflect the following correction:

Correction: December 5, 2012

An article on Tuesday about business strategies of generic drug makers in the face of fewer drug patent expirations misidentified the country in which the pharmaceutical company Endo is based. It is in the United States, not Japan.

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Economic Scene: Unionizing at the Low End of the Pay Scale

Andrew Kelly/Reuters

A protester held up a sign at a demonstration outside McDonald’s in Times Square last week.

Other than poverty, José Carrillo and Joshua Williams have little in common. The austere life of Mr. Carrillo, a 79-year-old Peruvian immigrant from Washington Heights, is a universe apart from the hardscrabble reality of Mr. Williams, a 28-year-old single father from Atlanta staying at his aunt’s place in Brooklyn to save on rent.

Bret Hartman/Reuters

Striking Walmart workers and supporters on Black Friday outside a store in Paramount, Calif.

But their lives are connected. They both work in the fast-food industry — Mr. Carrillo at a McDonald’s in Midtown Manhattan and Mr. Williams at a Wendy’s in Brooklyn. They both earn a little more than $7 an hour. And they both need food stamps to survive. Last Thursday, both did something they had never done before: they went on strike.

Their activism, part of a flash strike of some 200 workers from fast-food restaurants around New York City, caps a string of unorthodox actions sponsored by organized labor, including worker protests outside Walmart stores, which, like most fast-food chains, are opposed to being unionized, and union drives at carwashes in New York and Los Angeles.

Labor unions are hoping that the unusual tactics, often in collaboration with social justice activists and other community groups, will offer them a new opportunity to get back on the offensive, helping to raise the floor for wages and working conditions in the harsh, ultracompetitive economy of the 21st century.

Mr. Carrillo’s and Mr. Williams’s meager salaries also underscore the straightforward choice we face as a nation: either we build an economy in which most workers can earn enough to adequately support their families or we build a government with the wherewithal to subsidize the existence of a lower class that can’t survive on its own. We are doing neither.

More than two million workers toil in food preparation jobs at limited-service restaurants like McDonald’s, according to government statistics. They are the lowest-paid workers in the country, government figures show, typically earning $8.69 an hour. A study by the Economic Policy Institute, a liberal-leaning research organization, concluded that almost three-quarters of them live in poverty. And they are unlikely to have ever contemplated joining a union.

On a full-time schedule, they could make a little over $18,000 a year, just about enough to keep a family of two parents and one child at the threshold of poverty. But full-time work is hard to come by. With fast-food restaurants increasingly using scheduling software to adjust staffing levels, workers can no longer count on a steady stream of work. Their hours can be cut sharply from one week to the next based on the business outlook or even the weather.

Orley Ashenfelter, a labor economist at Princeton, published a study earlier this year that captured the plight of workers under the Golden Arches in a novel way: measuring pay by the burgers a worker could buy for an hour of work, he calculated that the real wages of McDonald’s workers in the United States hit about 2.2 Big Macs an hour last year. That’s 15 percent less than in 2000.

Many economists will argue that concern about the lowly McJob is misplaced. These jobs offer a wage to people with no training or education. Mr. Carrillo, for instance, doesn’t speak English. “To get a better job at my age, you need a profession,” he says. To improve the lives of American workers, most economists argue, we might do better by focusing on education to equip them with the skills to perform more productive, better-paid jobs.

But this argument overlooks the fact that the McJob is hardly a niche of the labor market reserved for the uneducated few. Rather, it might be the biggest job of our future.

The American labor market has been hollowing out for decades — losing many of the middle-skilled, relatively well-paid jobs in manufacturing that can be performed more cheaply by machines or workers overseas. It has split between a high end of well-educated workers, and a low end of less-educated workers performing jobs, mostly in the service sector, that cannot be outsourced or mechanized.

This process is not expected to reverse any time soon. According to government statistics, personal care aides will make up the fastest-growing occupation this decade. The Economic Policy Institute study found that some 57 percent of them live in poverty.

This poses an existential question for labor unions, which are struggling because of the loss of union jobs to automation and stiff competition, both from cheaper labor in the mostly union-free South and developing nations around the world: can they do something to improve workers’ lot?

They have in the past. A recent study by the International Labor Organization concluded that low-wage work was rare where unionization rates were high. In countries where more than half of workers belong to a union, only 12 percent of jobs pay less than two-thirds of the middle wage, on average.

Still, there is little reason to believe that American labor unions can do much to lift the floor on wages in the future. Fewer than 7 percent of workers in the private sector are in a union. We have the largest share of low-paid jobs in the industrial world, amounting to almost one in four full-time workers, according to the International Labor Organization. And our rates of unionization continue to fall.

E-mail: eporter@nytimes.com; Twitter: @portereduardo

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Santa Monica Nativity scenes to move to private property

Santa Monica's much-debated Nativity scenes will be staged after all — on private property. The decision was hailed by advocates for the separation of church and state, but there was little indication the acrimony would subside on the other side, where an attorney pledged to continue to fight for religious displays on public land.

Less than a week after a federal judge finalized a ruling that Santa Monica has the right to ban seasonal displays in public spaces, Nativity scene organizers announced that they would move to a new location.

The display — 14 scenes of life-size figures depicting the birth of Jesus Christ — will open Sunday in the 2700 block of Ocean Park Boulevard, between Clover Park and 28th Street, said Nativity Scenes Committee Chairman Hunter Jameson. The scenes are scheduled to remain on display until early January.

"We are deeply grateful for the use of this new site to allow all of Santa Monica's distinctive Christmas story to continue spreading the message of joy, hope and peace found in the Christ child's birth," Jameson said in a statement.

When told of the development, Annie Laurie Gaylor, co-president of the Wisconsin-based Freedom From Religion Foundation, responded: "Well, hallelujah — praise secularism."

"This move is great," she said. "But it does undercut any argument they have that they don't have free expression. Obviously, they do."

For nearly six decades, scenes celebrating Jesus' birth were a seasonal fixture in Palisades Park, which runs along the coastal bluffs on Ocean Avenue. In recent years, debate over the displays had become rancorous, with activists submitting applications to establish their own displays, including a satirical homage to "Pastafarianism."

Earlier this year, the Santa Monica City Council — seeking to head off clashes between atheists and Christian organizations, as well as legal disputes that could become costly to taxpayers — barred private, unattended displays in the park.

At the time, city officials pointed out that those wishing to celebrate the Nativity, or anything else for that matter, could erect displays on private property. But Nativity scene proponents filed suit in U.S. District Court seeking to restore the Palisades Park tradition. The case drew national attention.

Last month, Judge Audrey B. Collins of the U.S. District Court in Los Angeles denied the church coalition's request to require the city to allow the Nativity scenes in the park.

William J. Becker Jr., an attorney for the Santa Monica Nativity Scenes Committee — who has compared the campaign against the nativity displays to Pontius Pilates' judgment against Jesus, — lashed out at the decision anew Monday and pledged to appeal.

"Judges are fallible," Becker said. "They are often motivated by their own ideological dispositions, whether they want to admit it or not."

The move to private land is "not a resolution," Becker said.

"Everybody has the right to use private property to express themselves," he said. "It's still no substitute for 1st Amendment protections that we are guaranteed to express our viewpoints in a public forum."

Gaylor, of the Freedom From Religion Foundation, said she is untroubled by the prospect of prolonged appeal.

"Santa Monica is going to win — should win, ultimately," she said. "This judge obviously did the right thing."

scott.gold@latimes.com

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‘The Daily’ doomed by dull content and isolation

LOS ANGELES (AP) — It was too expensive. It lacked editorial focus. And for a digital publication, it was strangely cut off from the Internet. That’s the obituary being written in real time through posts, tweets and online chats about The Daily, the first-of-its-kind iPad newspaper that is being shut down this month.

Rupert Murdoch‘s News Corp. said Monday that The Daily will publish its final issue on Dec. 15, less than two years after its January 2011 launch. The app has already been removed from Apple’s iTunes, where it once received lukewarm ratings.

The Daily had roughly 100,000 subscribers who paid either 99 cents a week or $ 40 a year for its daily download of journalism tailored for touch screens. But that wasn’t enough to sustain some 100 employees and millions of dollars in losses since its launch. At the time of its debut, News Corp. said The Daily’s operating costs would amount to about half a million dollars a week, or around $ 26 million a year.

When News Corp. launched The Daily, it was touted as a bold experiment in new media. The company hired top-name journalists from other publications, such as the New York Post’s former Page Six editor, Richard Johnson, and said it poured $ 30 million into the newspaper’s launch. Now, the company is acknowledging that The Daily no longer has a place at News Corp., which is being split in two to separate its publishing enterprises from its TV and movie businesses.

Murdoch said in a statement that News Corp. “could not find a large enough audience quickly enough to convince us the business model was sustainable in the long-term.” Some employees are being hired in other parts of the company.

Critics say The Daily’s day-to-day mix of news, opinion and info-graphics wasn’t that different from content available for free on the Internet. And despite a high-profile launch that drew lots of media attention, the publication failed to build a distinctive brand. There was no ad campaign touting its coverage and stories weren’t accessible to non-subscribers, so it didn’t benefit from buzz that comes from social networks like Twitter and Facebook.

Trevor Butterworth, who wrote a weekly column for The Daily called “The Information Society,” says the disconnect between the app and the broader Internet curtailed its reach. He was laid off in July when the publication shrank from 170 workers to about 120. As part of the purge, The Daily cut its dedicated opinion section and dropped sports coverage in favor of using a feed from its News Corp. sister outfit, Fox Sports.

“Stories weren’t widely shared or widely known,” says Butterworth. “It felt like I was writing into the void.”

When it launched, The Daily was meant to take advantage of the explosion of tablet computer sales, and the notion that people generally read on them in the morning or evening, like a magazine.

But each issue came in a giant file — sometimes 1 gigabyte large — and took 10 or 15 minutes to download over a broadband connection, which is unheard of for news apps, says Matt Haughey, the founder of MetaFilter.com, one of the first community blogs on the Internet.

Because the stories weren’t linkable, The Daily didn’t benefit from new Internet traffic that would have come from content aggregators like Flipboard and Tumblr.

“They ignored the obvious, which was the Web,” Haughey says. Although many people are foregoing buying a laptop for the lightweight convenience of a tablet, the day hasn’t arrived yet when all online access will come through apps rather than the Web. “Maybe in five or 10 years, the Web will be less important,” he says. “For now it seems like they were missing out.”

It may also have been a problem that News Corp. launched The Daily from scratch into an environment where readers tend to gravitate toward trusted sources and established brands. According to a 2011 Pew Research Center survey, 84 percent of mobile device users said a news app’s brand was a major factor in deciding whether to download it.

One of the intangible challenges The Daily had was standing out in a sea of online journalism, both paid and free. Some national newspapers, such as The New York Times and The Wall Street Journal, have carved out a niche with informed coverage of sometimes complex topics and have gained paying digital subscribers by limiting the number of free articles they offer online.

Gannett Co., which publishes USA Today and about 80 other newspapers, has succeeded in raising circulation revenue at local papers by putting up so-called online “pay walls,” taking advantage of the fact that there are few alternative sources of coverage for certain communities.

Without a unique coverage niche or a local monopoly, The Daily was caught between two worlds.

By being digital-only, the publication didn’t have a defined coverage area. It was “in competition with everybody and everything,” says Joshua Benton, director of the Nieman Journalism Lab at Harvard University. Yet it failed to carve out its own niche in that larger universe, he says.

“Its lack of editorial focus played a role,” Benton notes. “It was sort of a pleasant, middle-brow, slightly tabloidy mix of news and features. And there’s lots of that available for free online. I would imagine if ‘The Daily’ were starting again now, they would invest more in establishing their brand identity early on.”

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LeBron James wins Sports Illustrated annual award

(Reuters) – LeBron James of the Miami Heat was named as Sports Illustrated’s Sportsman of the Year for 2012, the U.S. magazine announced on Monday.

In an outstanding year, the 27-year-old James won his first NBA championship, his third league Most Valuable Player (MVP) award, was named MVP of the NBA finals and a won gold medal with the United States at the London Olympics.

He became just the sixth basketballer to win the award, which began in 1954. The most recent was his team-mate Dwyane Wade in 2006.

Two years ago, James became a hate figure for many American sports fans after he announced his decision to sign for Miami live on television after his contract with the Cleveland Cavaliers had expired.

He was booed at courts across the NBA and received intense criticism for his performance as Miami lost the 2011 NBA finals to the Dallas Mavericks.

“Did I think an award like this was possible two years ago? ‘No, I did not,” James said in an interview with the magazine.

“I thought I would be helping a lot of kids and raise $ 3 million by going on TV and saying, ‘Hey, I want to play for the Miami Heat.’ But it affected far more people than I imagined.

“I know it wasn’t on the level of an injury or an addiction, but it was something I had to recover from. I had to become a better person, a better player, a better father, a better friend, a better mentor and a better leader. I’ve changed, and I think people have started to understand who I really am.”

Previous winners of the award include swimmer Michael Phelps (2008), cyclist Lance Armstrong (2002) and golfer Tiger Woods (2000) while the first award was given to British athlete Roger Bannister in 1954 after he became the first person to run a mile in under four minutes.

(Reporting By Simon Evans; Editing by Julian Linden)

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Global Update: GlaxoSmithKline Tops Access to Medicines Index

Sang Tan/Associated Press

GlaxoSmithKline hung on to its perennial top spot in the new Access to Medicines Index released last week, but its competitors are closing in.

Every two years, the index ranks the world’s top 20 pharmaceutical companies based on how readily they get medicines they hold patents on to the world’s poor, how much research they do on tropical diseases, how ethically they conduct clinical trials in poor countries, and similar issues.

Johnson & Johnson shot up to second place, while AstraZeneca fell to 16th from 7th. AstraZeneca has had major management shake-ups. It did not do less, but the industry is improving so rapidly that others outscored it, the report said.

The index was greeted with skepticism by some drugmakers when it was introduced in 2008. But now 19 of the 20 companies have a board member or subcommittee tracking how well they do at what the index measures, said David Sampson, the chief author.

The one exception was a Japanese company. As before, Japanese drugmakers ranked at or near the index’s bottom, and European companies clustered near the top. Generic companies — most of them Indian — that export to poor countries are ranked separately.

Johnson & Johnson moved up because it created an access team, disclosed more and bought Crucell, a vaccine company.

The foundation that creates the index now has enough money to continue for five more years, said its founder, Wim Leereveld, a former pharmaceutical executive.

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Deficit Talks Stumble Over Down Payment

WASHINGTON — For all the growing angst over the state of negotiations to head off a fiscal crisis in January, the parties are farthest apart on a relatively small part of the overall deficit reduction program — the down payment.

President Obama and the House speaker, John A. Boehner, are in general agreement that the relevant Congressional committees must sit down next year and work out changes to the tax code and entitlement programs to save well more than $1 trillion over the next decade.

But before that work begins, both men want Congress to approve a first installment on deficit reduction in the coming weeks. The installment would replace the automatic spending cuts and tax increases that make up the “fiscal cliff,” while signaling Washington’s seriousness about getting its fiscal house in order. That is where the chasm lies in size and scope.

Mr. Obama says the down payment should be large and made up almost completely of tax increases on top incomes, partly because he and Congressional leaders last year agreed on some spending cuts over the next decade but have yet to agree on any tax increases.

Republicans have countered by arguing for a smaller down payment that must include immediate savings from Medicare and other social programs. Republicans, using almost mirror-image language, have said that they do not want to agree to specific tax increases and vague promises of future spending cuts.

Senator Kent Conrad of North Dakota, chairman of the Budget Committee and part of a bipartisan “Gang of Six” senators who devised the two-stage process, said: “I think there’s a lot of confusion between the initial down payment and the framework. That’s for sure.”

The two biggest areas of dispute are tax increases and the big government health insurance programs, Medicare and Medicaid. On the health programs, neither side believes Congress could meaningfully overhaul them in the four weeks that remain before the fiscal deadline.

“Entitlement reform is a big step, and it affects tens of millions of people,” said Senator Richard J. Durbin, Democrat of Illinois, another architect of the two-stage framework. “It’s not just a matter of cutting spending in an appropriation. It’s changing policy. And that’s why I was reluctant to include it in the down-payment conversation. I want this to be a thoughtful effort on both sides that doesn’t jeopardize this program.”

But Republicans say that it is possible to make some initial changes to the programs in coming weeks. “There are simpler things that can be done,” said Senator Michael D. Crapo, Republican of Idaho and another Gang of Six member. “The real structural changes would come later.”

Mr. Crapo said Congress could agree on some additional cuts to health care providers and change the way inflation is calculated to slow not only automatic increases in Medicare and Social Security benefits, but also the annual rise in tax brackets.

Democrats instead argue that the down payment should consist of a combination of tax increases and cuts to programs outside Medicare, Medicaid and Social Security, like farm programs. Mr. Obama has pushed for a return to the top tax rates under President Bill Clinton.

Republican leaders have said that they are willing to raise new tax revenues — albeit not as much as Democrats want — but Republicans want taxes to rise by closing loopholes and curbing tax deductions and credits.

If the two sides are able to come to an agreement on the down payment, it would also likely fix targets for larger savings in the tax code and entitlement programs. The White House and Congress would then spend much of the next year trying to hash out the specific policy changes needed to hit those targets.

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Slaying of 4 rocks Northridge neighborhood

Shane Grady was jolted awake early Sunday when he heard gunfire on Devonshire Street.

He said he dropped to the floor and looked out his window, but the slowing traffic blocked his view.

Then came the police sirens and helicopter flying so low, another neighbor said, that it was "shaking the rooftop."

Residents in the usually quiet Northridge neighborhood woke up to a shocking scene. Police said two men and two women were found shot dead outside a home in the 17400 block of Devonshire in the San Fernando Valley.

Investigators do not have a motive or suspects. City Councilman Mitchell Englander, who represents the area and is a reserve LAPD officer, said police believe the slayings weren't a random act.

Officers were dispatched to the home about 4:25 a.m., LAPD Capt. William Hayes said. A 911 caller reported hearing yelling and "a number of shots," Hayes said.

Three of the bodies were found face-down, and the victims appeared to have been shot at close range, Englander said.

Officers searched the property and neighborhood immediately after the shooting, LAPD Cmdr. Andy Smith said, but no weapon was recovered.

The victims had not been identified Sunday evening. The female victims were in their 20s; one man was in his mid-30s and the other in his late 40s, Hayes said. Police believe at least some of the victims lived at the residence and may have been related.

Englander said the property was an unlicensed boarding home, but had not been a problem location for police.

That was confirmed by neighbors, who said the rooms appeared to have been rented out to single men who primarily kept to themselves. Nothing stood out, they said, except for some occasional loud music.

Englander said that about a dozen people were believed to have been living in the four- or five-bedroom home in conditions he described as "deplorable." Mattresses and makeshift kitchens were scattered about the house, he said, and one room was accessible only by a window.

A woman who lived around the block said she heard loud music hours before the shootings. About 1:30 a.m., the woman said she heard the music and people yelling. She managed to go to sleep an hour later but said the noise hadn't stopped.

"I just figured it was a party that was out of control," the woman said.

Residents described the area as quiet, the kind of neighborhood where people know one another and walk to the nearby grocery store or the synagogue down the street from where the slayings occurred.

The LAPD's Devonshire Division station is a mile away.

"It's usually sleepy-time America," said Richard Rutherford, 58, who also was awakened by the gunfire.

Englander, who chairs the City Council's Public Safety Committee, said he was "shocked" by the incident.

"Typically you don't have these kinds of incidents in this type of community," he said.

The violent crime rate for Northridge falls in the middle of all Los Angeles neighborhoods, but homicide is rare in the community, according to LAPD data analyzed in The Times' Crime L.A. database. In the previous six months, Northridge had one homicide out of the 89 violent crimes reported.

Since 2007, and before Sunday's quadruple homicide, Northridge had 11 homicides, 10 of them south of Nordhoff Street. The location of Sunday's slayings is on the border with Granada Hills, which typically has a much lower violent-crime rate than Northridge.

Jeff Kaye, 62, remembered a few incidents in the 33 years he's lived in the neighborhood. There was a shooting a few years back, he said, and he once walked in on a robbery. But nothing like Sunday's shooting had occurred.

"It concerns you," he said. "You want to know what's going on."

A few onlookers stopped by as investigators prepared to bring the bodies out of the home, and some drivers shouted questions at news crews gathered at the scene. "What's going on?" one man yelled.

"How often in this neighborhood do you hear about four dead bodies?" Grady said.

kate.mather@latimes.com

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Nintendo president apologizes for bulky day-one Wii U firmware update

As we noted in our first impressions, Nintendo’s (NTDOY) Wii U is charting new ground with its wireless GamePad and touchscreen controls that engage gamers in the living room like never before. But before you can even set up the Wii U, a mandatory firmware update is required upon power up. Gamers everywhere were frustrated to learn that the firmware update, which is pegged anywhere between 1GB and 5GB, takes hours to download and could even ”brick” new consoles if the power was cut off. In an email conversation with IGN, Nintendo’s global president and CEO Satoru Iwata said was “very sorry” that Wii U owners were experiencing network issues and that other services such as Nintendo TVii weren’t available at launch. Iwata said he believes “users should be able to use all the functions of a console video game machine as soon as they open the box.” 

Gone are the days when electronics are sold as finished products with set features out of the box. It has become normal for today’s connected electronics to require frequent firmware updates and patches to fix compatibility with other gadgets and to add new features. At what point should consumers stop tolerating devices that don’t work immediately after unboxing? The way we see it, the answer might be “never,” as it’s hard to argue against the fact that new software updates breathe new life into aging consoles.

Iwata also explained that the Wii U’s “Miiverse” online service isn’t meant to replicate existing services such as Xbox LIVE.

“We have not thought that offering the same features that already exist within other online communities would be the best proposal for very experienced game players,” Iwata told IGN.

Nintendo fans can read more Nintendo nuggets over at IGN’s feature that includes mention of a new 3D Super Mario and Zelda game.

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