Necessarily bad. Videogame companies are trying to one up each other at the e3 Gaming Convention in california. First, to our top story. President trump says he will not finalize a trade deal with china unless beijing returns to terms negotiated earlier in the year. Trump spoke to reporters as he left the white house for iowa, a day after he threatened to raise tariffs on china if chinese president xi jinping is not meet with President Trump at the g20 summit. Pres. Trump china is a major competitor and right now, china wants to make a deal very badly. It is me right now who is holding up the deal. Vonnie apple is coming up with a backup plan. Its manufacturing partner says it is able to make all iphones bound for the u. S. Outside of china if necessary. Right now, the Company Makes all of the iphones in china. How did the company decide it was able to do this, to make all of apples products outside of china so quickly . Investor who was anding to people in taiwan our reporter was there to listen. This is more of a plan. They didnt say apple has asked foxconn to do it yet but he was saying basically that they are very capable of doing it. It raises questions. We spoke to an analyst over here who was saying, if you are talking about actual final assembly, which is what a lot of might beonn does, that relatively easy to move. If you are talking about the whole manufacturing process, that would be a lot harder. Vonnie we know that politically china and taiwan are at odds. Is there any danger that china would retaliate against the company if apple would move all of its production to the Taiwanese Company . Alistair that is a good question. Apple has to be careful in general with this kind of thing. Some of the activities going on u. S. ,uawei in the Encouraging Companies and consumers to steer clear of huawei. There have been a lot of concerns that there has been an unofficial recommendation that chinese consumers not buy iphon es. That market is really important for apple. Vonnie hon hai, of course also known as foxconn, had a plan for rate wisconsin plant plan for a a wisconsin plant. Do those plans change . Alistair the executive who was speaking yesterday seemed kind of bullish about wisconsin plant and he kind of placed it in the same strategic realm has moving the iphone assembly out of china. India is something to consider, too. Foxconn has plants in india already and was dealing with similar types of restrictions from the indian government. Barr thankstair you,. When it comes to taking an antitrust lens to pick tech, it is not just a federal game. Today, nine states and the district of columbia filed suit to block the merger. Heres new York Attorney general mes. Sta james leticia ja a multistate lawsuit in the toted States District Court block the proposed merger of Telecom Giants tmobile and sprint. When it comes to corporate power, bigger isnt always better. Bloombergsing us, senior antitrust analyst jennifer rei. Will this action have any impact on the doj . Jennifer it is possible. It may have been filed when it was filed to put pressure on the doj to join or file their own suit. It is possible. It could also be that this was filed because the state attorneys general seem to think that the doj was ready to clear it because they want to take charge. Vonnie do we know what the state attorneys general will accept . Planshey presented any that are acceptable to them . Jennifer we dont know yet. Some of these additional remedies it looks like the doj is seeking might be some satellite sales, tilting out 5g into rural area building out 5g into rural areas. The states dont see that as something that could fix the heart of this deal. It could be there are additional concessions that could get them to settle. What is more clear is they have more flexibility than the department of justice. Vonnie if the department of justice comes out with a attorneysdo the state general then back off . Would that be enough . Because it wouldnt they filed this with doj looming. In this situation, they are ready to go it alone if they have to. It is interesting that you should bring that up because if there is this bolstered remedy, one of the things the states would have to do is prove to the judge that not only is there harm from this merger but that that harm cant be fixed by these two remedies that federal regulators have been ready to accept. That is an additional hurdle. Vonnie sprint and tmobile have promised that Consumer Prices wont go up. Is that not enough, if that was written in the constitution of the combined company would that be enough to satisfy the states attorneys general . Jennifer i think it wouldnt because that promise would only last so long. Seven years or three years or 10 years. What happens after that when you only have three competitors instead of four and the two that were the cost cutters and competitive against each other have combined . Have also alleged there could be lower quality for certain consumers, particularly prepaid subscribers. When you have three Companies Instead of four, even with the prices, it doesnt create incentives to put money into r d or make sure quality is maintained. Vonnie thank you. Coming up, we had to los angeles we head to los angeles for coverage of the e3 Gaming Convention. If you like bloomberg news, check us out on the radio. You can listen on the bloomberg gap, bloomberg. Com, and in the u. S. On sirius xm. This is bloomberg. Vonnie the esports market is booming with highly skilled players, arenasized audiences, and a revenue projected to reach 1. 8 billion by 2022. Bloombergs Shelley Hagan takes a look. Shelley it is a far leap from the penny arcade. Esports takes the gaming world with arena sized audiences and big sales. They raked in 865 million in revenue over 2018. The audience is larger in asia, boasting 50 of the worlds viewers, compared to 12 in north america. With the e3 conference underway this week in california, all eyes are on the booming business. Blizzard and Electronic Arts have a combined market cap of more than 60 billion. Private investment is growing as well. Venture Capital Investment in 1. 8 billionched dollars in 2018. Esports, north american teen, recently raised a north american team, raised 58 million last year. Fortnite and league of legends. The winners take home more than the high score. The largest prize pool was more million. With the Global Market expected to reach 1. 8 elgin dollars by dollars bybillion 2022, it is far from game over. Vonnie lets head over to the largest gathering, e3. Microsoft, activision blizzard, Electronic Arts just a few industry players participating in the events to highlight upcoming releases. This years conference is different than years past. Instead of focusing on hardware and titles, a lot of it has to do with streaming and how these games are played. What can we look forward to in terms of new releases from take . Wo interactive we are showing borderland three, the third in the iteration. We are super excited about it. People really excited to be playing the game. Vonnie in terms of the pipeline, what do we expect from taketwo beyond that. A lot of people are talking about Red Dead Online. Should we be expecting more . Be expectingshould. Ore from Red Dead Online another big title five and a half years after the initial release. In terms of upcoming releases,. E have nba 2k coming, wwe vonnie are you interested in bidding for any other sports licenses . You mentioned nba, w w e. What else are you interested in . Isauss the sports business pretty well spoken for. The nfl property is under exclusive license. One of our biggest competitors controls the fifa title. We have golf, boxing, hockey. Right now, our focus is on golf and of course basketball. Vonnie we are seeing more and more subscription models. What is your plan for subscription and streaming . We want always to distinguish between a technology streaming and a Business Model subscription. We are interested in both but they are different animals. You can have a subscription business without streaming and streaming without subscription. We are excited about many potential developments in the market. Google,upporting microsoft, and i expect we will support others as well. Subscription vehicles, many are being developed, some already. We are openminded. Direct tor own small consumer presence and we are obviously looking at that market as well. When people look to acquire entertainment properties, they want to go where they can get a multiplicity of properties, not just an offering from one company. How concerned are you about the current standoff between the u. S. And china for growth of taketwo interactive there . Strauss we are very optimistic about china. Is relationship with tencent great. Up about 74 yearoveryear. We also distribute in china in a myriad of other ways. Our nba 2k title was just approved ps4 in china. We hope that trade talks will be resolved in a way that is an official. Vonnie i have to ask you, your interim chairman of the board, and reportedly there is a meeting friday to discuss a viacom merger. What can you tell us about this . Strauss outta here, im talking about out here, im talking about the videogame business, so not much. My primary focus right now is the excitement around taketwo and the upcoming release. Vonnie if there were a board meeting, presumably you would meetingsof your e3 done by friday. Strauss [laughter] as i said, im refocused right now in the im pretty focused right now in the videogame business. Vonnie coming up, more e3 coverage out of los angeles. How microsoft is gearing up. Bloomberg technology is livestreaming on twitter. Check us out technology. This is bloomberg. Ofnie back to our coverage e3 in l. A. This year, a big shift of focus from game consoles to streaming platforms. Google has upped the ante, announcing a Monthly Price tag last week. Microsoft is not far behind. We caught up with the head of xbox game studios. For us, everything starts with great games. The way i approach it, if you start out to design a game with a certain strategy, you can paint yourself into a corner. If you set out to make a great game, you can support whatever you do later. We have designed some games that turned out to be fantastic. With streaming, we want to make great games. I think it unlocks some Amazing Things in terms of how we will approach multiplayer and how we approach the types of gameplay. You will be playing on the go or may be doing things that you will be related to a game. Users playingmost on the xbox . How is that allens going to work that balance going to work . We see them playing across all those devices. Pc, console, mobile. We have a great selection. 60 games, 14 from our first party studios. It is about putting the player at the center of what we do and providing choice. We announced game pass. It is all about choice, whether you want to be a console gamer or pc gamer. At 10 per month, a lot of people found that surprising. Expect the cloud to be competitive pricingwise . We havent shared pricing yet. Google today coming out with 15. One of the areas people have been talking about is the involvement of celebrities and games. On sunday, kiana reeves comes reevesthe stage keanu comes out on sunday, revealed as a big character. I think he was pleasantly surprised when he saw the enthusiasm from our fans and how someonepeople get when like him shows up. I think people saw that it was authentic and genuine. It is about choice, putting players at the center. We know people will still want to play games in their living room. It is the social hub of our families, our homes. The best place to play games is still at the center of your living room on the tv. That is why we made it such a focus. China is a big videogames market. How do you view china . We have had success in china, particularly around minecraft. We have other games with tencent. I think finding games that understand the chinese player, find out how to navigate the regulations. One of the concerns is about game approvals. In april, the regulators kind of changed the requirements . Again, that is why i thicket is important to have partners that understand the nuance. It is hard to keep track of from seattle. We are happy with the partnerships we have with people like tencent. Given that china is the biggest market with the revenue and players, are you concerned that the trade war, that may limit the u. S. Developers access to that market . We have strong partnerships with people in china and we will look to them to help navigate that. Fromat was matt booty microsoft at e3 in los angeles. Fromsales, a 23 increase the previous period. They decided to stop selling flavored packs in stores to mitigate use by underaged users. Coming up, dropbox is coming after microsoft and google. How the company is evolving from a file storage system to collaborative workspace. That is next. This is bloomberg. At comcast, we didnt build the nations largest gigspeed network just to make businesses run faster. We built it to help them go beyond. Because beyond risk. Welcome to the neighborhood, guys. There is reward. Beyond work and life. Who else could he be . There is the moment. Beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. Take your business beyond. This is bloomberg technology. Im vonnie quinn. Dropbox unveiled new integrated workspace tuesday. The biggest overhaul of its software to date. The company has a new desktop workspace with updates that allows customers to combine different files and collaborate across. Caroline hyde spoke with the dropbox ceo Andrew Houston about the new changes. Andrew we are really excited about it. We launched the biggest change we ever made to our product and all new desktop app. It evolves the dropbox experience to a living Team Workspace where you can have files, any kind of cloud content. Google docs. Anything you are using. Integrations with tools like slack and zoom. From within dropbox, you can send people messages. It is a much more integrated workspace because we saw so many of our customers and ourselves struggling with these new apps, but how do you stitch them together . We see a big opportunity to make that a seamless opportunity. Cannot wait to get it out there. Do you see this type of integration do you think this is something we will see more of not just in your particular space, but with other types of software and Software Services . Drew absolutely. Certainly, most if not all integration, but the opportunity we saw is to organize it. Put it into a coherent experience different from some of the messaging tools. What dropbox allows you to do, you can all your content in one place that works across different ecosystems. Instead of the interface being a list of messages, you can see here is what we are working on, the most important piece of the content. We think it is a different approach. Caroline from the perspective to keep everyone coming back to dropbox, as much as you are working with the other apps, you are also competitive. Do you think this plethora of new apps we are having can really survive . The fact you have deals with zoom, slack, google, microsoft do you think the ecosystem can support all these different players . Drew we certainly do. What we are seeing is that users want choice. They are using all kinds of different apps for communication, content. What is missing is a way to stitch it together. That is the role we think we can play. It is very similar to the role we played in the beginning, help you get to your stuff from different platforms. Now we think about how to organize your working life and stick together these different things. A lot of what we are doing is complemen complement your it. You will not stop using these other tools. We are making it easier for you to get them. We find that a lot of our customers love using these different tools, but they need a more integrated experience and not having that means you are switching back and forth and a lot of friction. Caroline it is interesting within the Enterprise Software space, we are talking about numerous players. When actually the argument from capitol hill is that too few players when it comes to the technology space, they need to be broken up. How do you take this sudden viewpoint coming from capitol hill, and do you think it has grounds in any way . Drew i think it is an important conversation to be having. From our perspective, we think competition is a good thing. And we need a level playing field. It is an important conversation. What are the other conversations, the idea of responsibility a lot of Tech Companies, particularly those who traffic in content have. I wonder how you view not only what has happened, what type of response ability you think the companies themselves should be shouldering to make sure their services are being used in a proper way . Drew sure. I mean, trust and safety is the first thing on all of our minds. And, all aspects of that. Whether it is the security of service, the content people are putting on Services Like dropbox. I think we are seeing a broader conversation of a lot of Technology Companies putting themselves in situations, how do we protect free speech but then what do you do when people put up content that is objectionable or unsafe or not true . Our role is simpler. People dont usually use dropbox as a publishing platform, but we care about the safety and wellbeing of our users. But, objectionable or unsafe content on dropbox, we take it down. Vonnie drew houston there. Meanwhile, line which counts 18 million monthly active users in japan has been investing heavily in thin tech operations. Speaking to bloomberg, the coceos says they may see new businesses breakout even sooner than now. It depends on how fast we secure the users. , i think we can be profitable in one year or two years. Vonnie coming up, we had to capitol hill to hear one lawmakers thoughts on big techs big power versus the media. Our conversation with congressman doug collins is next. This is bloomberg. Vonnie the House Judiciary Committee began his hearings on whether or not b