Are Weak Wii U Sales a Bellwether of Shifting Game Demographics?

Nintendo expects to sell fewer Wii U and 3DS units than originally claimed, according to reports this morning. The company says it sold three million Wii U units through December, but slashed its forecast of 5.5 million Wii U units sold by the end of March to just four million in all. On the Wii U software side, Nintendo is now forecasting 16 million units in the same timeframe, a number that’s down by roughly a third from original expectations.

The 3DS takes a similar hit in the standings: down from 17.5 million units predicted through March to just 15 million units and a commensurate drop in 3DS software sales.

(MORE: Apple to Sell 128GB iPad Starting Next Tuesday)

You can look at this any number of ways. From a numbers standpoint, there’s no doubt that the Wii U lags behind its predecessor in raw sales when you contrast launch windows. But the Wii arrived at just the right time: It was the world’s first fully motion-control-driven game system — a system that went on to capture the imaginations of consumers who’d never really engaged with a game console before. Whatever you thought of the Wii, however much you actually played it in the years that followed, it did more to popularize gaming as a mainstream pastime than any gaming-related device in history.

The Wii U, by contrast, is an evolutionary step forward designed to appeal more to traditional gamers. Though even lacking the Wii’s novelty, the Wii U GamePad is a far more intrepid technological concoction than, say, either Microsoft or Sony’s imitative motion-control approaches. And suggestions that Nintendo’s just mining Apple territory with the Wii U’s tablet-style controller seem shortsighted: With its two-screen dynamic and hybrid haptic/deterministic controls, the Wii U GamePad couldn’t be less like an iPad. Or, put another way, the Wii U is as much a riff on the iPad as the iPad is just a riff on Nintendo’s original dual-screen DS — a handheld that predated Apple’s tablet by six years.

Another explanation for the Wii U’s slow start could be pricing. The Wii U hardly seems a bargain by Nintendo’s own standards. The GameCube sold for $ 200 at rollout in 2001 (no pack-in), while the Wii cost $ 250 at launch and included a game. The Wii U, by comparison, starts at $ 300 for the stripped down model sans game, then jumps $ 50 if you want a decent amount of storage and something to play — a pack-in (Nintendoland) that frankly lacks the distinctive “so that’s what all the hype’s about” flair of Wii Sports.

But let’s cut to the chase: Whither mobile gaming? Isn’t the Wii U’s sluggish start because, well, hello smartphones and tablets? Not so fast: The data we have on this is inconclusive and potentially misleading.

According to NPD research, of the roughly 212 million people playing games in the United States last year, mobile gamers only slightly outranked core gamers. The number of core gamers shrank slightly in 2012 (NPD attributes this in part to the extra-long life cycle of the current consoles) while the number of mobile gamers was up a tick, it’s true. But how many people bought a Wii U because they needed a phone? An Xbox 360 to sync with their computer’s day-planner? Conversely, how many people bought a smartphone or tablet because all they wanted was to play games like Angry Birds or Temple Run 2?

(MORE: Nintendo Wii U Review: A Tale of Two Screens)

How many mobile gamers are buying souped up phones or tablets just to play games, in other words? Anyone? Or is the mobile gaming angle more of a perk, like the Philips head or mini-scissors in a Swiss Army Knife?

I’m not saying mobile gaming isn’t big — because it is. But just as sales of a game like Wii Sports were deceptively high because you couldn’t not buy it when picking up a Wii, talking about the prevalence of mobile gaming in a pre-fab market gets tricky. Is playing games on phones or tablets siphoning gamers from PCs and consoles? It’s impossible to say at this point because we lack the data.

Nintendo can’t be all things to all people any more than Apple’s been to gamers with its iPhone or iPad. If I want to play a game like Ni No Kuni or Guild Wars 2 or Devil May Cry, I wouldn’t look to my smartphone or tablet. Likewise, I have no interest in playing stuff like Angry Birds or Fruit Ninja or Cut the Rope – the same old increasingly tiresome mobile top-sellers for years — on a console or PC. I don’t want to sell the mobile/tablet gaming market short, not with titles like Battle of the Bulge and Radiant Defense or others like Space Hulk, Shadowrun Returns and Warhammer Quest on the horizon, but concluding that the Wii U or 3DS’s slightly-lower-than-expected sales can be attributed to a shift in gamer tastes — from core to mobile/tablet gaming — oversimplifies things in my view.

What we may be looking at in these reduced Nintendo sales numbers — and what I’d expect to continue to see with the launch of new systems from Microsoft and Sony — is segmentation of a market that experienced a kind of cross-demographic boom in the mid-to-late 2000s. Before iPhones and iPads, casual gamers had the PC. The Wii was essentially a way to bring that sort of gamer into the living room. But we’d be torturing indulgence to claim the shift that occurred after 2006 was tantamount to a conversion. Casual gamers, if you’ll pardon that label, are by definition uncommitted gamers. And with buyers already spending considerably more for something like the iPad (and considerably less on that platform for games), would it be such a surprise to find a much pickier audience for a system like the Wii U in 2013 than existed in 2006?

I have no idea what sorts of devices the kind of more core-oriented games I like to play are going to live on a decade from now. All it’d take, for instance, is for Apple to flip a few switches and double down on gaming to shake up the market in ways that could make what happened with the Wii seem tame. But that won’t mean the demise of traditional gamers any more than the rise of touchscreens entails the downfall of deterministic interfaces like keyboards, mice and gamepads. Core gamers aren’t this tiny minority on the verge of extinction, after all.

Far from it, in fact: Revenue contributions from core gamers still outpace all others, reports NPD, which calls the core gaming demographic “vital to the future of the industry.” From a financial standpoint, in other words, whatever the reasons for the Wii U’s lower-than-expected sales, the ball remains clearly in core gaming’s court.

MORE: Murfie Converts Your CDs into a Lossless Online Library, Lets You Sell and Trade Your Music

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Despite previous beating, Rihanna back with Chris Brown

NEW YORK (Reuters) – It’s official: R&B diva Rihanna says she is back together with Chris Brown, who is still on probation for assaulting her in 2009, saying “It’s different now.”

“I decided it was more important for me to be happy,” Rihanna told Rolling Stone magazine in an interview published on Wednesday on its website.

“I wasn’t going to let anybody’s opinion get in the way of that. Even if it’s a mistake, it’s my mistake,” she said of her renewed romance with singer Brown, 23, that has prompted consternation from fans and celebrity media because of their history.

“After being tormented for so many years, being angry and dark, I’d rather just live my truth and take the backlash,” said Rihanna, 24, adding, “I can handle it.”

The couple’s reconciliation had been rumored for months, even before the pair unveiled a duet, “Nobody’s Business,” in November. That track was included on Rihanna’s latest album “Unapologetic.”

Brown pleaded guilty in 2009 to beating and punching Rihanna. He was sentenced to community service, anger management classes, given a restraining order and is still on probation.

The Barbadian singer told Oprah Winfrey in an emotional interview in August that she and Brown now had a “very close friendship,” and that she still loved him.

“When you add up the pieces from the outside, it’s not the cutest puzzle in the world,” Rihanna admitted to Rolling Stone, which hits newsstands this week with her gracing the cover above the headline, “Rihanna Crazy In Love.”

“You see us walking somewhere … and you think you know. But it’s different now. We don’t have those types of arguments anymore. We talk,” she said. “We value each other.”

But she noted that Brown is on probation with her as well, saying, “He doesn’t have the luxury of (messing) up again.”

“That’s just not an option … And I wouldn’t have gone this far if I ever thought that was a possibility.”

The interview was published three days after Brown’s latest dustup, which involved fellow musician Frank Ocean, over a parking space at a West Hollywood recording studio. Ocean has said he wants Brown prosecuted following the Sunday brawl.

In 2012 Rihanna was rated by Time and Forbes magazines as among the world’s and celebrity arena’s most powerful people.

(Reporting by Chris Michaud; Editing by Jill Serjeant and Philip Barbara)

Celebrity News Headlines – Yahoo! News

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Illness Walks the Runway

A top fashion designer quarantines a sneezing underling, forcing her to work in a closet. An industry P.R. executive makes colleagues douse their hands with Purell. Germ-phobic magazine editors are powerblasting offices with antiseptic wipes and Lysol.

Such is the dread gripping the fashion world as it prepares for New York Fashion Week, beginning Feb. 7, with a killer flu and a stomach-bug norovirus on the loose.

The eight-day event, when fashionistas from around the world pack into small spaces to attend runway shows and parties — only to cram onto the same flights and repeat the process in London, Milan and Paris — is always an occasion for sickness paranoia. In past years, sniffles in the front row could prompt icy stares and social ostracism.

But with this season’s flu panic, the fear is approaching hysteria. Stressed-out designers recoil in horror if someone coughs within earshot. Frail models shiver their way between fittings, terrified someone will spy their runny noses. And frenemies everywhere are reconsidering the wisdom of the double-cheek kiss, the standard greeting of the global fashion tribe. Air kissing seems safe for now.

“This will be the season where everyone in fashion becomes mysteriously nonaffectionate,” said Laura Brown, executive editor of Harper’s Bazaar. Staff members in her West 57th Street offices, she added, have been scouring doorknobs with sanitizing wipes. “We can give a nudge and a wink instead.”

To be fair, much of the paranoia is founded. According to the Centers for Disease Control and Prevention, deaths from the current flu season reached “epidemic” levels, in part because of an unusually severe flu strain. Adding to the flulike epidemic is a surging new strain of norovirus, which can cause sudden diarrhea and projectile vomiting, and the worst whooping cough outbreak in 60 years.

And while there is some evidence that the flu season has peaked almost everywhere in the country, except for the West Coast, flu activity continued to be high in New York through the week ending Jan. 19, as tracked by the C.D.C., and on the rise in parts of Europe including Italy. (Milan hosts a fashion week starting Feb. 20.)

Norovirus also seems to be surging abroad; it has reached epidemic levels in France, according to the latest report from the country’s doctor network Réseau Sentinelles, with more than one million French people visiting doctors for it in the past five weeks.

Yet even as flu season appears to be ebbing in New York, it remains a worry inside the fashion bubble. With sleep-deprived colleagues huddled in close quarters day and night, things can go viral quickly, especially in the petri dish that is Fashion Week.

“Fashion people are at risk for a variety of viral syndromes because they work long hours and they move in a pack,” said Dr. Robert Glatter, known in fashion circles for making house (or studio) calls.

Dr. Barry Cohen, whose primary-care office on Spring Street faces Marc Jacobs’s studios, says he has been bombarded with rheumy-eyed industry divas begging for quick fixes. “Fashion people touch each other all day, so they get exposed over and over,” he said.

And when the pack is moving fast and furious, it can’t slow down for the weak. “Fashion Week season is a nonstop assault on the immune system,” said Derek Blasberg, an editor at large for Harper’s Bazaar. “Early shows, late dinners, crammed into tents and airplanes: you don’t want to sit next to anyone coughing, because if you get sick, you’re screwed.”

The viral assault does not end with New York. “By the time we finish the New York shows, we’re already a wreck, because New York simply has too many shows,” said Mickey Boardman, editorial director of Paper magazine. “Then you get on a plane and hit the ground running in London, where there’s always fun parties. You’re eating French fries for dinner and drinking Cokes from your minibar, and your sleep patterns are messed up.”

“You’re putting your life at risk,” he added.

WHILE KEEPING THE WORLD trendy has its hazards, fashionistas have developed stylish tactics to avoid getting the bug. Many have dutifully gotten their flu shots. (It’s not too late, though it takes about two weeks to build up immunity — just in time for London Fashion Week.)

Others follow variations of what could be called the standard fashion-world starvation diet, whether it’s drinking large quantities of SmartWater fortified with packets of the vitamin supplement Emergen-C, or force-feeding themselves nothing but raw greens, like koalas munching eucalyptus leaves. Dr. Glatter says he has even treated some fashion people for diarrhea from eating too much kale.

Then there are the juicers. The designer Cynthia Rowley swears by Juice Press, the three-year-old Manhattan chain popular with fashion insiders for its 17-ounce $10 bottles of cold-pressed fruits and vegetables. “I’m addicted,” said Ms. Rowley, who added that she chugged the stuff with staff members when they were not taking spin classes en masse at SoulCycle.

“Nobody’s sick at my office,” she bragged dangerously. “We work in one room, so if one person drops, they take down the whole team.”

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BlackBerry Maker Unveils Its New Line

Marcus Yam for The New York Times

Thorsten Heins, the chief executive of BlackBerry, which was known as Research in Motion, introduces the company's new phones.

BlackBerry’s maker unveiled a new operating system and a new line of phones on Wednesday, along with a new corporate name, with the hope of restoring its products’ status as a symbol of executive cool.

Analysts, technology reviewers and app developers with advance access to the BlackBerry Z10 and the BlackBerry 10 operating system have said it is the company’s first competitive touch-screen phone. But BlackBerry 10 arrives long after Apple’s iPhone and phones using Google’s Android operating system have come to dominate the smartphone market that the BlackBerry effectively created. According to IDC, BlackBerry now holds just 4.6 percent of that market, about one-tenth of its historic peak.

To emphasize the changes brought by the new operating system, Thorsten Heins, who took over as chief executive a year ago, said the company, known until now as Research In Motion, had adopted BlackBerry as its corporate name. Its Nasdaq trading symbol will become BBRY, and it will trade as BB in Toronto.

In addition to the BlackBerry Z10 phone, there will be a second model, the Q10, that includes one of the line’s signature physical keyboards. Verizon Wireless announced that it would price the Z10 at $200 with a two-year contract. BlackBerry 10 phones will also be carried by AT&T, Sprint and T-Mobile.

“Today represents a new day in the history of BlackBerry,” Mr. Heins said. “These BlackBerry 10 devices are absolutely the best typing experiences in the industry.”

BlackBerry said the Z10 would be available in the United States in March and in Canada on Feb. 5.

There were few surprises in the initial portion of Mr. Heins’s presentation at an event in New York. The company began demonstrating the touch-screen phone and operating system in May and also made prototypes available to app developers at the time. In recent weeks, photographs of the final version of the phones have made their way to various American and European technology Web sites.

Physically, the Z10 resembles an iPhone 5 with its corners snipped off.

But unlike its competitors, the Z10 lacks a button to take users back to a home page and relies entirely on users swiping their fingers across the 4.2-inch screen from different directions to summon features or menus.

While the Z10 lacks a physical keyboard, the main attraction of BlackBerrys for many current users, the company said that it had developed software which should alleviate some of the inadequacies of on-screen typing. According to BlackBerry, its software studies users’ common typing mistakes over time and then starts automatically correcting them. It will also build up a list of commonly used words and offer them as suggestions that can be selected with a flick of a finger.

While developing the new operating system, the company took great pains to improve its strained relationship with app developers. The operating system was also designed in a way that allows them to adapt Android apps for BlackBerry 10 by making some relatively minor modifications.

BlackBerry said Wednesday that more than 70,000 BlackBerry 10 apps were now available.

For corporate and government users, BlackBerry 10 server software will allow them to divide employees’ BlackBerry 10 phones into separate work and personal spheres and give I.T. managers complete control over the former.

This article has been revised to reflect the following correction:

Correction: January 30, 2013

Because of an editing error, an earlier version of this article referred imprecisely to the plans of major American carriers to offer the two new BlackBerry models. While Verizon Wireless, AT&T, Sprint and T-Mobile will all carry new BlackBerrys, not all will offer the Z10; Sprint has so far announced plans only to offer the other model, the Q10.

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Senate overwhelmingly approves John Kerry for secretary of State

WASHINGTON — The Senate voted overwhelmingly Tuesday to confirm Sen. John F. Kerry (D-Mass.) as the next secretary of State, filling a crucial national security spot in President Obama’s second-term Cabinet.

The 94-3 vote clears the way for Kerry to replace Hillary Rodham Clinton after she steps down Friday.

Kerry, who will become America’s 68th top diplomat, failed to win only three Republican votes — those of Sens. John Cornyn and Rafael “Ted” Cruz, both of Texas, and Sen. James M. Inhofe of Oklahoma. 

A spokesman for Cornyn said Kerry supported liberal positions that most Texans oppose. Cruz has criticized Kerry, who fought in the Vietnam War, as anti-military.

Earlier Tuesday, Kerry received the unanimous endorsement of the Senate Foreign Relations Committee in a voice vote. He served on the committee for 28 years and chaired it for the last four.

Sen. Bob Corker (R-Tenn.), the ranking Republican on the committee, praised Kerry as a “realist” on foreign affairs issues, and said he was always “open to discussion” with colleagues of the opposite party.

Corker, noting that Kerry’s father was a foreign service officer, said he knew of no one “who’s lived a life that’s been ultimately more oriented toward being secretary of State.”

Leading Republican senators had promoted Kerry as an alternative to Susan Rice, the U.S. ambassador to the United Nations, for the job. Rice withdrew her name from consideration after Republicans criticized her for statements she made on TV talk shows after the deadly Sept. 11 attack on the U.S. mission in Benghazi, Libya.

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RIM faces its day of reckoning with BlackBerry 10 launch

NEW YORK (Reuters) – The innovative line of BlackBerry smartphones that Research In Motion Ltd will formally unveil on Wednesday has already succeeded on one crucial count – getting RIM back in the conversation.

The new BlackBerry 10 has created a buzz among technology watchers and financial analysts, thanks to nifty features that may set it apart in an overcrowded smartphone market. RIM stock has almost tripled over the past four months on hopes the devices can restore RIM to sustained prosperity.

Reviewers like the browser speed and the intuitive keyboard on RIM’s new touchscreen. A feature called BlackBerry Balance, which keeps corporate and personal data separate, could help RIM rebuild its traditional base of big business customers.

It’s a welcome start for RIM, the smartphone pioneer that has teetered on the brink of irrelevance. But success will come only if consumer and business customers embrace the new technology in the weeks and months after CEO Thorsten Heins takes the wraps off the phone at a glitzy New York launch.

RIM is gambling its survival on the much-delayed BlackBerry 10, hoping to claw its way back into an industry now dominated by Apple Inc’s iPhone and Samsung Electronics Co Ltd’s Galaxy.

The timing may be just right. The new phone hits the market just as the iPhone’s remarkable run is showing some signs of slowing.

“I really do believe that the consumer market as a whole is ready for something new,” said Kevin Burden, head of mobility at Strategy Analytics, an industry consulting firm.

“I have to believe that there is some level of user fatigue that plays into the longevity of some of these platforms,” he added, referring to Google Inc’s Android and Apple’s iOS, which are both more than five years old. “RIM is probably timing it right.”

U.S. BATTLEGROUND

To be sure, RIM shares are about 90 percent below a 2008 peak near $ 150 a share and the company still has a tough fight ahead. It may take investors some time to determine whether RIM’s big gamble on an untested technology has paid off.

RIM’s market share collapsed in the three years ahead of the launch. Strategy Analytics data shows RIM’s global share of the smartphone market was about 3.4 percent in the fourth quarter, down from around 20 percent just three years ago.

While RIM has done well in developing markets, it has hemorrhaged customers in the United States, a market that sets technology trends. RIM’s fourth-quarter North American market share fell to 2 percent from more than 40 percent three years ago.

Acknowledging that it is crucial to win back U.S. customers, RIM will hold its main BlackBerry 10 launch in New York, although there are simultaneous events in six cities across the globe.

Underscoring the point, RIM is splurging on a costly Super Bowl ad to tout its new devices and attempt to brighten its faded image in the U.S. market.

BIG QUESTIONS

Over 150 carriers already have tested the new devices and RIM has said the launch will be the largest ever global rollout of a new platform.

The two big questions the market expects RIM to answer on Wednesday are when the phones – a full touch-screen device and one with a traditional physical keyboard – will hit store shelves, and how much they will cost.

The company is expected to unveil specifics on pricing and availability in different regions at the launch.

“The Street is expecting mid-February for a launch. Anything earlier than that is a positive, anything later will be viewed as negative,” said RBC Dominion Securities analyst Paul Treiber.

That said, there are few mysteries to be cleared up on Wednesday. Leaked photos and specifications of the devices have been splashed across the tech world.

“We’ve had the beta devices for a few weeks and in terms of the devices, they are right up there with the competition,” said Andy Ambrozic, head of IT Infrastructure at Ricoh Canada. “The Balance feature is crucial for corporations that are becoming increasingly concerned about data security.”

Scotiabank analyst Gus Papageorgiou feels RIM has a good chance of a comeback. He says the new BB10 operating system outpaces Apple’s iOS platform and Google’s market-leading Android system in every category except app selection and content.

“There is, we believe, huge potential for the platform and devices to bring people back to BlackBerry or draw entirely new users into the platform,” said Papageorgiou, who has a “sector outperform” rating on the stock.

BlackBerry 10 will not be able to compete on the number of apps, but RIM says its operating system will have the largest application library for any new platform at launch, with more than 70,000 apps available.

It has already gathered big-name music and video partners for its BlackBerry 10 storefront, including Walt Disney Studios and Sony Pictures, Universal Music and Warner Music Group.

Wireless carriers already report strong demand for the new devices. Rogers Communications Inc, Canada’s top wireless carrier and the first globally to take pre-orders for the new devices, said orders are already in the thousands.

“Our customers are excited,” said John Boynton, Rogers’ head of marketing, adding that some users are holding off on upgrades in anticipation of the BB10 launch.

(Additional reporting by Alastair Sharp and Allison Martell in Toronto; Editing by Frank McGurty, Janet Guttsman and Andre Grenon)

Gadgets News Headlines – Yahoo! News

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Singer Frank Ocean wants Chris Brown charged over brawl

LOS ANGELES (Reuters) – Rising R&B artist Frank Ocean wants fellow singer Chris Brown prosecuted following a brawl over a parking space at a Los Angeles-area recording studio, authorities said on Monday.

Brown is serving five years probation for assaulting his on-and-off girlfriend Rihanna in 2009 and risks having his probation revoked should charges be filed.

In the incident on Sunday, sheriff’s deputies responded to a call about a fight involving six men in West Hollywood. The deputies cited witnesses as saying that the Grammy-winning Brown, 23, punched Ocean during the brief altercation.

No charges have yet been filed, but Ocean “is desirous of prosecution in this incident,” said Los Angeles County Sheriff‘s spokesman Steve Whitmore.

Ocean, 25, who is nominated for best new artist and best record for “Thinkin Bout You” at the Grammys in February, said on Twitter on Sunday night that he “got jumped by Chris and a couple guys.” He said this resulted in a cut finger.

A representative for Brown has yet to comment.

The “Look at me Now” singer has attempted to rebuild his career and public image since 2009, but his entourage and that of Canadian rapper Drake were involved in a June 2012 brawl in a New York nightclub. No arrests or charges were brought in that case.

Brown and Ocean are both nominated in the best urban contemporary album category at the Grammys, which take place on February 10 in Los Angeles.

(Reporting by Eric Kelsey and Colleen Jenkins; Editing by David Brunnstrom)

Music News Headlines – Yahoo! News

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Well: Ask Well: Squats for Aging Knees

You are already doing many things right, in terms of taking care of your aging knees. In particular, it sounds as if you are keeping your weight under control. Carrying extra pounds undoubtedly strains knees and contributes to pain and eventually arthritis.

You mention weight training, too, which is also valuable. Sturdy leg muscles, particularly those at the front and back of the thighs, stabilize the knee, says Joseph Hart, an assistant professor of kinesiology and certified athletic trainer at the University of Virginia, who often works with patients with knee pain.

An easy exercise to target those muscles is the squat. Although many of us have heard that squats harm knees, the exercise is actually “quite good for the knees, if you do the squats correctly,” Dr. Hart says. Simply stand with your legs shoulder-width apart and bend your legs until your thighs are almost, but not completely, parallel to the ground. Keep your upper body straight. Don’t bend forward, he says, since that movement can strain the knees. Try to complete 20 squats, using no weight at first. When that becomes easy, Dr. Hart suggests, hold a barbell with weights attached. Or simply clutch a full milk carton, which is my cheapskate’s squats routine.

Straight leg lifts are also useful for knee health. Sit on the floor with your back straight and one leg extended and the other bent toward your chest. In this position, lift the straight leg slightly off the ground and hold for 10 seconds. Repeat 10 to 20 times and then switch legs.

You can also find other exercises that target the knees in this video, “Increasing Knee Stability.”

Of course, before starting any exercise program, consult a physician, especially, Dr. Hart says, if your knees often ache, feel stiff or emit a strange, clicking noise, which could be symptoms of arthritis.

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DealBook: Chesapeake Energy Chief Steps Down

Chesapeake Energy’s co-founder and chief executive, Aubrey McClendon, will retire on April 1, the producer of oil and natural gas announced on Tuesday, almost eight months after investors complained about a contentious compensation plan.

Mr. McClendon, who gave up his chairman role last May, will also leave Chesapeake’s board on that date. Until then, he will transfer daily management responsibilities to other executives. A successor wasn’t named, though the company said that it had hired an executive search firm to find his replacement.

In an internal e-mail, Archie Dunham assured employees that “the company is not for sale.”

The surprise announcement of Mr. McClendon’s departure followed months of investor dissatisfaction with Chesapeake, which has struggled with prolonged low natural gas prices and efforts to move into more lucrative oil production. But shareholder ire spiked last spring, after Reuters reported on an unusual executive perquisite in which he was allowed to buy stakes in each well the company drilled.

To help finance those investments, Mr. McClendon often borrowed from companies that had conducted business with Chesapeake, raising concerns that he faced a conflict of interest.

In an attempt to quell the turmoil, Mr. McClendon agreed last May to give up his chairman role and to end the compensation plan ahead of schedule.

Chesapeake said on Tuesday that it expected to announce the results of a monthslong review into the compensation plan when it discloses its earnings next month. In the interim, the company said that the inquiry has not unveiled any improper conduct.

“Over the past 24 years, I have had the privilege of developing Chesapeake into one of the world’s premier energy companies,” Mr. McClendon said in a statement. “While I have certain philosophical differences with the new board, I look forward to working collaboratively with the company and the Board to provide a smooth transition to new leadership for the company.”

Below is a copy of Mr. Dunham’s e-mail to employees:

As you may have just read in an e-mail from Aubrey and will see in the press release this evening, the board of directors of Chesapeake has mutually agreed and accepted Aubrey McClendon’s resignation as C.E.O. effective upon appointment of his successor, and retirement from the company, effective April 1, 2013. The decision was made in full recognition and appreciation for the enormous achievements Aubrey has made in founding and building Chesapeake into the extraordinary enterprise it is today.

Over the past 24 years, Aubrey has created one of the most valuable companies in the energy industry. Under his strong leadership, Chesapeake has built an unmatched portfolio of natural gas and oil assets in creating one of the world’s leading energy companies. Aubrey has been a pioneer in the development of unconventional resources, and he has also been a leader in the effort to make the United States energy independent. Aubrey has done all of this with the support and expertise of the world-class senior management team he recruited to Chesapeake and the dedication of our employees.

For the transition, Aubrey remains our C.E.O. During this interim period, he will work closely with Steve Dixon, chief operating officer, and Nick Dell’Osso, chief financial officer, to transition certain day-to-day management responsibilities and assure that the company maintains the highest degree of operational excellence and strategic execution of our business plan. The board of directors and the senior management team are counting on your continued dedication and focus as we execute our strategy of developing our world-class assets and maintain our performance as a low-cost producer of oil and gas while further strengthening the balance sheet.

I would also like to address certain likely points of concern among you. First, the company is not for sale. Second, the board has confirmed the current drilling and completion budget of six billion dollars and is eager to see the exciting recent results of the company’s core of the core development strategy continue. Lastly, the board and management believe strongly in the culture of excellence at Chesapeake and are committed to seeing this culture thrive in the future. The board has no intention of eliminating childcare, shutting down the fitness center, or selling the company cafeterias. I’m sure that other false rumors will appear, so when they surface, ask Steve or Nick if they are true. Our truly top notch 12,000 employees remain the company’s best asset, and we will continue to retain and attract the best talent in the industry.

We are at an important transition point for our company, but it is also a point of great opportunity. Thank you for all you do to make Chesapeake a great company.

Warm regards,

Archie Dunham

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Bipartisan group sees change in politics on immigration reform

A bipartisan coalition of senators said Monday they have created a set of principles based upon which they hope lawmakers will pass immigration reform by summer.

WASHINGTON — Declaring that the politics of immigration  “have been turned upside down,” a bipartisan group of senators Monday outlined common principles for comprehensive immigration reform and expressed optimism that legislation granting legal status to most of the country's 11 million illegal immigrants could be realized by this summer.

One day before President Obama launches a campaign-style push for his vision of immigration reform, representatives of the so-called Group of Eight senators acknowledged previous false starts on the issue, and obstacles that probably lie ahead — particularly in determining how to increase the flow of legal immigration.

But, after an election in which the share of the nonwhite vote continued to grow and swung overwhelmingly toward Obama, the lawmakers said that the path forward was as clear as ever.

Arizona Sen. John McCain, the GOP’s 2008 presidential nominee and a past proponent of comprehensive reform, said the change in favor of taking action came down to one word: “Elections.”

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“The Republican Party is losing the support of our Hispanic citizens. And we realize that there are many issues in which we think we are in agreement with our Hispanic citizens, but this is a preeminent issue with those citizens,” he said at a Capitol Hill news conference. 

“For the first time ever, there's more political risk in opposing immigration reform than in supporting it,” added Sen. Charles E. Schumer (D-N.Y.).

The Senate blueprint, drafted during weeks of closed-door meetings by leading senators from each party, is more conservative than Obama's proposal, which the president plans to unveil Tuesday in a speech in Las Vegas. But its provisions for legalizing millions of undocumented immigrants go further than measures that failed to advance in Congress in previous years — a reminder of how swiftly the politics of immigration have shifted since the November election.

The Senate proposal would allow most of those in the country illegally to obtain probationary legal status immediately by paying a fine and back taxes and passing a background check. That would make them eligible to work and live in the U.S. They could earn a green card — permanent residency — after the government certifies that the U.S.-Mexican border has become secure, but might face a lengthy process before becoming citizens.

Obama is expected to push for a faster citizenship process that would not be conditional on border security standards being met first. The structure of the citizenship process will probably be among the most hotly debated parts of any immigration plan.

PHOTOS: A look ahead at 2013’s political battles

Less controversial provisions would tighten requirements on employers to check the immigration status of new workers; increase the number of visas for high-skill jobs; provide green cards automatically to people who earn master's degrees or PhDs in science, technology or math at U.S. universities; and create an agricultural guest-worker program.

Schumer said lawmakers are aiming for full legislative language to be put forward by March, which will then work its way through the committee process. A vote in the Senate could come by late spring or summer, he said.

“We still have a long way to go, but this bipartisan blueprint is a major breakthrough,” he said.

Though their effort was running parallel to the president’s, Democratic Sen. Richard J. Durbin of Illinois said he and Schumer spoke with Obama on Sunday and that the president “cheered us on.” McCain said Obama’s public campaign for it would be helpful to their cause.

Still, many conservatives on Capitol Hill remain skeptical about sweeping immigration legislation and could prove a major obstacle to any compromise.

“The last time we talked about this in 2007, it sounded very seductive. When we saw the details, it was clear it wouldn’t work,” Sen. Jeff Sessions (R-Ala.) said in an interview Monday. Sessions said he was particularly concerned that the Obama administration is not committed to securing the borders against future illegal immigration.

Similar criticism from Republican lawmakers doomed a 2007 immigration bill pushed by President George W. Bush and seniors Senate Democrats.

PHOTOS: President Obama’s past

Today, 22 GOP senators who opposed the 2007 plan remain in the Senate, including Minority Leader Mitch McConnell (R-Ky.). By contrast, just two of the 12 Republicans who backed the compromise six years ago are still in Congress — McCain and South Carolina's Lindsey Graham.

Republican resistance to an immigration overhaul promises to be even more intense in the House, where many conservative lawmakers are leery of any proposal that would provide a mechanism for immigrants here illegally to gain citizenship, a key demand on the left.

“When you legalize those who are in the country illegally, it costs taxpayers millions of dollars, costs American workers thousands of jobs and encourages more illegal immigration,” said Rep. Lamar Smith (R-Texas), the former chairman of the House Judiciary Committee. “By granting amnesty, the Senate proposal actually compounds the problem by encouraging more illegal immigration.”

Staff writers Brian Bennett and Lisa Mascaro contributed to this report.

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noam.levey@latimes.com

Twitter: @noamlevey

michael.memoli@latimes.com

Twitter: @mikememoli

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