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Native Instruments cuts 20% of workforce, moves to 'platform" strategy

 

"Revenues continued to grow for NI through 2019, so any snap analysis you may have read online that this is in response to financial trouble are likely misguided. NI says they made these cuts as part of a refocused emphasis on a 'new, unified, and fully integrated platform' coming next year, and what it terms their 'One Native' strategy... It"s also unclear what this platform will be. It"s not sounds.com, exactly â the press statement says it will 'include' elements of that. It may also include technology or elements related to recent acquisition Metapop, a collaborative online space for sharing tracks and holding competitions. The statement says this online service will connect the company"s 'existing ecosystem of ⦠software and hardware' to some kind of 'centralized online platform.' For those invested in current products, though, that doesn"t provide a lot of clarity â least of all when some of the people developing those products you use were just laid off."

 

 

https://cdm.link/2019/09/native-instruments-cuts/

Yamaha CP88, Casio PX-560

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"Customers today are expecting a seamlessly integrated experience when consuming and accessing creative goods and services."

 

Not me!

 

They're clearly going to move to some kind of cloud/subscription system, which sucks. Hopefully, my versions of Kontakt and Battery will continue to work, because that's really all I use from Komplete, but there are a bunch of NI sound libraries I use Kontakt, and having to pay to access them would be a real PITA. Hopefully, the Kontakt player will remain free and I'l continue to be able to use my 3rd party libraries when some OS update invariably breaks whatever version of Kontakt I'm running at the time.

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"Customers today are expecting a seamlessly integrated experience when consuming and accessing creative goods and services."

 

Not me!

 

They're clearly going to move to some kind of cloud/subscription system, which sucks. Hopefully, my versions of Kontakt and Battery will continue to work, because that's really all I use from Komplete, but there are a bunch of NI sound libraries I use Kontakt, and having to pay to access them would be a real PITA. Hopefully, the Kontakt player will remain free and I'l continue to be able to use my 3rd party libraries when some OS update invariably breaks whatever version of Kontakt I'm running at the time.

 

I suspect that you are correct. This is why I stopped using softsynths. I have accumulated about 8 hardware synths/ keyboards, some close to 30 years old. They all work like the day they were built. Almost all of the softsynths that I bought no longer function- no longer supported, not compatible with latest OS, etc.

Yamaha Motif XF6, Yamaha AN200, Logic Pro X,  Arturia Microbrute, Behringer Model D, Yamaha UX-3 Acoustic Piano, assorted homemade synth modules

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Almost all of the softsynths that I bought no longer function- no longer supported, not compatible with latest OS, etc.

and also often no resale value, whether for those reasons or license transfer restrictions.

 

Though if you really want to keep using old softsynths, you usually can, by booting into an older OS (which may mean keeping an older machine around). That's one of the problems with iOS... you can't easily keep an old OS around. On the positive side, the apps are cheap, so you're not out much $, but it's not always about the money, it's that you liked the operation and sound of some old app.

 

Maybe this is the best place for a shameless plug! Our now not-so-new new video at https://youtu.be/3ZRC3b4p4EI is a 40 minute adaptation of T. S. Eliot's "Prufrock" - check it out! And hopefully I'll have something new here this year. ;-)

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The synths aren't a big issue for me. I, too, have hardware that I love, and there are plenty of other softsynths out there besides the ones from NI. It's the sample libraries I worry about. I rely on a couple NI ones that don't seem to have equivalents, and I also have a decent investment in third party libraries that I don't ever want to have to pay NI to be able to access. Of course, we don't know where any of this is leading, and it might not end up being as bad as I suspect; but any time investment capital gets involved, it's rarely good for the end user.
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Ok... so help me understand this guys. Is there a possibility that NI could force me to pay a monthly subscription to keep running my Traktor Pro 2 software, even though I've already paid for it? Is that legal? Is that where they're headed with this?
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I doubt they can or would. Adobe didn't when they started offering their Creative Cloud service. People can still run whatever version of PhotoShop or InDesign or whatever , assuming their OS supports it. But at some point, you need to upgrade your OS, or get a whole new computer with a new OS, and those old programs don't work. So I bet you'll be able to use Traktor 2 until whatever OS you need to run is no longer compatible.
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This might actually force me to upgrade Komplete soon... so I can avoid getting on a subscription service for a very long time at least. I'm kind of done with mass packs anyway. I've got all the nuts & bolts, screws, nails, and other supplies one would normally need, and at this point very occasionally purchase some very specific thing. Kontakt is sort of a necessity in the area of sampling libraries, so at some point I KNOW I'll need to upgrade from 5.5 to v6, but after that, I think I'm done with any big NI upgrades. I've got Komplete 10, I have Korg KLC, I have EWQLSO Gold, I have G-Force Mellotrons, I've got dozens of smaller synths and libraries. Throwing money at software or hardware isn't going to make me a better musician at this point. I've got what I need, just need to continue getting better.

Puck Funk! :)

 

Equipment: Laptop running lots of nerdy software, some keyboards, noise makersâ¦yada yada yadaâ¦maybe a cat?

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Look at where business in general is heading subscription everything and people not owning anything. Music, videos, books, were the start, I read even grocery stores are testing monthly subscription for your basic foods, then you add whatever extras you want that month. You quality of life will be defined and dependent on how many subscriptions a month you can afford. Out of work or have a few months of tight money say bye-bye to your life.

 

Business likes a guaranteed income flow and selling physical products are subject to tends and economy, switch to subscription and they can now calculate their income threshold for so they can do more with their money. I saw this start back in the 1980's when I was in the computer biz and terms of agreement when you bought something quietly change from you own this software to you only purchased a license to use. I don't like the subscription life future at all.

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The concept of a endless monthly income stream for use of existing apps is a finance director's wet dream. Removes the need to innovate or improve the product/service to generate income. Reduce the need for risky innovation which may or not generate an income. Sign of a mature company in a creative industry that has reached its use by date. Can't remember the last company to enter the MI industry founded by a finance director with a new idea.

 

The good news is there a so many vendors of quality inexpensive soft synths, looking at you U-He, or better host ecosystems, for example UVI, or all the Logic synths for free with MainStage, that losing access to owned versions of Kontakt as it gets crippled out of existence by not being upgraded to be compatible with future OS's would not bother me at all.

 

 

 

 

A misguided plumber attempting to entertain | MainStage 3 | Axiom 61 2nd Gen | Pianoteq | B5 | XK3c | EV ZLX 12P

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Behringer"s response to NI"s purge.

 

'It has come to our attention that a well-known DJ manufacturer in Germany has been laying off 200+ engineers.

We can help as we"re looking for 50 digital hardware, DSP and embedded software engineers for our Innovation centers in Willich, Germany, Manchester, UK and Aarhus, Denmark.

We welcome everyone to apply and send their resume to Julia.atli@musictribe.com. If you know anyone from this company please share this post with them.

Of course we welcome anyone else who is not affiliated with this particular company.

Thank you.'

Yamaha CP88, Casio PX-560

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This kind of dubious event is exactly why I have limited my softsynths to a precious, PRACTICAL few. I don't trust "giant" synth conglomerates any more than I trust various large-name companies. Autosampler (pre-Apple) enabled me to save a lot of solid material from my hardware as EXS24 sampler instruments. Its mainly a basic subtractive GUI with a handy mod matrix, but it delivers a lot in practice. I've added SoundFont libraries from here and there, as the format has never seemingly gone through any convulsive changes. Those two components remain rock solid. I get a lot of grab-&-go value from living there. I prefer to buy 3rd-party pieces from semi-small houses like AAS or beef up my patch collection. I'm lucky to be more keys-minded than modular-minded, as it means less chasing of updates and OS upgrade "fun." It seems harder for people who take up monolithic company packages or several synth such as, say, Serum. Who hates going down a hearty list of instruments and one at a time, trying to get an update for a new OS (often uncertain) or learning that the company is 4 programmers who can't make the next OS leap and still turn a profit, thereby orphaning your baby? :taz::wave:

 

Many a new hardware sale lately comes about because someone wanted playing consistency over fragile dazzle. I'm going to end up buying SOMEone's hardware module semi-soon...

 "Why can't they just make up something of their own?"
           ~ The great Richard Matheson, on the movie remakes of his book, "I Am Legend"

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Both Microsoft and Apple have decided the future is in services (Microsoft more than Apple, at the moment). Basically it would be a return to the days when our "computers" were terminals to something somewhere else...in those days, a mainframe. These days, the "cloud" (which I don't trust, but use anyway).

 

It wouldn't surprise me if NI goes in the "services" direction. This has both good and bad points. The NI "ecosystem" is currently pretty sprawling, spread among synths, content, hardware, interfaces, and sounds. To put the whole thing together in a platform where "everything just works" would lead to a lot less head-scratching.

 

But also to be fair, software is undervalued. Emagic Logic used to be $999, now Apple Logic is $199. That crashed prices...DP3 was $795, now DP10 is $499. Cubase followed the same path. IIRC Studio One, which was introduced much later than DP/Cubase, went from $499 to $399 to stay competitive. That kind of pricing doesn't give a lot of wiggle room for product development, tutorials, documentation, customer service, or perhaps more importantly these days, new customer acquisition because not everyone updates.

 

I think it's inevitable that the price of pro audio software is going to have to go up. It won't go back to the pre-Logic for $199 prices, but it will need to go back up, partly because it's dependent mostly on desktop and laptop computers. Unit shipment for both has fallen since the peak in 2014. Desktops will become more rarified atmosphere (case in point - Apple Mac Pro), and people spending that much for a computer won't tolerate software that's not fully baked...and it costs money to bake it really well.

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Buddy of mine from Israel just moved to Berlin a month ago to work for NI.

He"s a happy camper, maybe because he"s a great programmer.

 

 

 

I know who he is.

He´s truly a great coder,- but possibly also cheaper than the others they fired.

 

Anyway ...

I just upgraded to Komplete 12 when it was on discount and it will be the last time I did when it will become a subscription product.

 

I appreciate "Behringer"s response to NI"s purge" mentioned above.

 

A.C.

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"or perhaps a guarantee that your software is always up to date and will work with hardware and operating system advancements."

 

Sure, if you're willing to pay every month and let them hold on to your money until they release something new. But operating system updates that break software generally don't come that frequently. I'd rather just pay when I need to because of an OS upgrade, or want to because they're offering something I like.

 

My guess (assuming that NI is moving to some kind of subscription service) is that they painted themselves into a corner with Komplete. I had several standalone NI products and used an upgrade offer to get Komplete probably at version 8. I then used other upgrade offers and coupons to get 9, and then 10. But I haven't upgraded since then since the cost of the upgrade is for a lot of stuff I'm not interested in. I assume a lot of other people have the same story.

 

So now the only way to get people to upgrade is to force them to upgrade via a subscription. But unlike Adobe, whose Creative Cloud service caters mainly to professionals who can easily justify the $400 per year to get access to pretty much their entire suite of software, which a designer will use regardless fo what type of project they're working on, NI's customer are many amateurs or semi-professionals who may not be too interested in spending money on a subscription when they're not making enough money from their music to justify it. And NI's software and software libraries are often very genre-specific. I don't make Rap or HipHop, or dance music, or movie scores that need lots of booms, so a good chunk of what they will most likely offer in their subscription will be useless to me (and for other people, but for other reasons).

 

Craig is right. The price of software is too cheap, and the fact that everyone is driving towards the bottom isn't going to be sustainable, and companies (especially ones driven by investors) are most likely going to think that moving to a subscription will be more palatable to a customer than a price increase. Waves plugins used to only be on sale once or twice a year â now basically everything is $30, or spend $50 get $300 free, etc. I have no idea how long that can last. I'm always tempted by the sales but then I see that it's stuff I already own or already have something similar from another company. I'm sure they'll move to a subscription service (beyond the Waves Upgrade Plan) in the near future.

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I also understand Behringer pilfered Nishijima San from Korg recently. After the hire Uli posted the following.

 

'Changing the world - one synthesizer at a time.

 

Come join Nishijima San and let"s build the most amazing synthesizer innovation center in Japan.

 

Japan, a country I admire so much, has some of the best engineers in the world.

We welcome all passionate engineers from Roland, Korg and Yamaha, etc. and together let"s turn the synth world upside down.

 

Uli'

Yamaha CP88, Casio PX-560

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