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U.S. Videogame Sales Sank Deeper in February

Lauren Goode — Fri, 09 Mar 2012 18:00:14 +0000

In February, U.S. retail sales of videogames fell 20 percent from a year ago, according to market research group NPD.

Despite some industry gains from January to February, overall sales totaled $1.06 million last month, down from $1.33 billion year over year; software sales fell 23 percent to $464 million, and hardware sales dropped 18 percent to $381.4 million.

February’s best-selling software title was Call of Duty: Modern Warfare 3, from Activision Blizzard.

While most hardware platforms posted declines year over year, “all current-generation platforms improved sales over January 2012 by more than 50 percent,” NPD said in a note.

A consistent bright spot has been the Microsoft Xbox, which was the best-selling hardware platform for the seventh month in a row. Some 426,000 Xbox units were sold in February, marking the 12th consecutive month Xbox has held more than 40 percent of the current-generation console market share.

And all eyes were on the Sony PlayStation Vita handheld gaming device, which came to market in late February. Only four days of retail sales for the PS Vita were included in this reporting period, but the device gave overall hardware unit sales a month-over-month boost. Not including the PS Vita, hardware unit sales increased by 62 percent over January, NPD said; with PS Vita sales included, the increase was 87 percent.

“More than 1.2 million PS Vita units have been sold globally since launch,” Patrick Seybold, senior director of communications at Sony Computer Entertainment America, said in a statement. “Customer satisfaction rates are very high and momentum will continue as gamers get their hands on a deep lineup of blockbuster titles that take advantage of PS Vita’s unique features, including cross-platform play with the PlayStation 3.”

In January, the videogame industry saw a double-digit decline in physical software sales, as my colleague Tricia Duryee reports, following a number of noteworthy game launches ahead of the holiday season.

Xbox Accounted for 40 Percent of All Videogame Sales in 2011

Tricia Duryee — Fri, 13 Jan 2012 01:57:29 +0000

Microsoft dominated the videogame industry last year, with the Xbox capturing nearly half of all consumer spending from physical sales in 2011.

According to NPD data released today, about $6.7 billion, or 40 percent of consumer retail spending, was spent on the Xbox, breaking down into two categories: $2.1 billion on consoles and $4.6 billion on games.

The figures take into account U.S. retail sales of new physical videogame content, including portable and console hardware, games and accessories.

In all, those sectors generated revenue of $17.02 billion in 2011, an 8 percent decline over the $18.6 billion generated last year. (Yes, I repeat, Microsoft got 40 percent of that in 2011.)

The initial report does not take into account sales from digital formats such as downloadable content on the console, social and mobile games, or other categories, including used and rentals.

Those so-called “newer” categories generated $7.24 billion in revenues last year, an increase of 7 percent over the prior year.

The increase in spending on alternative formats, however, wasn’t enough to offset declines in physical retail. All told, consumer spending across both categories totaled between $16.3 billion and $16.6 billion, falling 2 percent over last year.

Separating physical and digital sales is quickly becoming an outdated concept, since the two are so intertwined. Consumers have the choice of purchasing many of the games over the Internet via a digital download versus buying them at Wal-Mart or Target.

NPD acknowledged today that it needs “deeper visibility” into digital distribution to get a complete picture of the industry, which will be its focus in 2012.

Still, the report can still be used as a litmus test to see what is performing well.

Overall, a surprisingly disappointing December is what dragged down results for the whole year, NPD discovered.

“Because of the great slate of content that came to market during the fourth quarter, I had expected December sales to represent a larger portion of total year sales than what occurred,” said NPD Group analyst Anita Frazier, in a release.

Frazier added that December sales accounted for just 23 percent of the annual total, compared to the past 10 years, when December, on average, represented 28 percent of the total.

In addition to Microsoft’s Xbox, Sony’s PlayStation also performed well, with both witnessing a 5 percent increase across all game categories for 2011. Meanwhile, the Nintendo Wii, which cannot display HD content, saw a decline year over year.

In a separate statement, Microsoft said that it outsold the PlayStation, the second-place console, by 2.7 million units, and that in all, it has now sold 66 million Xboxes and 18 million Kinect accessories. On a global basis, Sony said in a statement that it sold more than 6.5 million units worldwide this holiday season.

Here are the Top 10 best-selling games in December, according to NPD:

Call of Duty: Modern Warfare 3 by Activision Blizzard
Just Dance 3 by Ubisoft
Elder Scrolls V: Skyrim by Bethesda Softworks
Mario Kart 7 for 3DS by Nintendo
Battlefield 3 by Electronic Arts
Madden NFL by Electronic Arts
Assassin’s Creed: Revelations by Ubisoft
NBA 2k12 by Take Two Interactive
Super Mario 3D Land for 3DS by Nintendo
Batman: Arkham City by Warner Bros. Interactive

Complaints About Sony PlayStation Vita Arise After Japan Launch

Lauren Goode — Wed, 21 Dec 2011 04:28:54 +0000

Sony issued an apologetic statement and posted a system update on Monday, after complaints emerged about its new handheld device, the Sony PlayStation Vita. The portable gaming system launched in Japan this past weekend; 321,400 units were sold in two days. Some users are reporting that the Vita has been freezing and crashing in early use of the device.

Will New Games and Pink Hues Give Nintendo 3DS a Needed Boost?

Lauren Goode — Thu, 01 Dec 2011 21:00:34 +0000

Nintendo’s 3DS got off to a rocky start when it launched in March of this year, so much so that it ultimately resulted in a price slash.

But the 3-D handheld gaming device has gotten a boost from recent game releases, and the gaming giant hopes two more items will keep the hardware’s momentum going for the holiday season.

This Sunday, Nintendo will release Mario Kart 7 for 3DS. It’s the second game in the Mario franchise aimed at the portable device in the past two weeks. Retailing for $39.99, Mario Kart 7 includes new courses and kart abilities and supports the 3DS StreetPass feature, which allows users to wirelessly connect to other “Mii” characters as they pass each other on the street or are in the vicinity of each other.

The company also plans to release a pink version of the 3DS, bundled with one of its Nintendogs + Cats games. The pink 3DS will cost $169.99 in the U.S., the same price as the standard Nintendo 3DS system. Nintendo had previously said a pink version was aimed at girls (sigh, but they do like lots of other colors, too).

The Nintendo 3DS, the company’s first 3-D portable gaming handset, hit the U.S. in March, at a price of $249.99. The device has an autostereoscopic screen — which means glasses aren’t required to see the 3-D imagery — and a depth slider that adjusts the intensity of the 3-D.

Consumers were less than thrilled by the 3DS, with many citing vision problems and high game prices, forcing Nintendo to later reduce the price. The move resulted in a 260 percent sales jump, with Nintendo selling 235,000 units in August, ranking it the second-best-selling piece of gaming hardware in the U.S. that month.

The 3DS got another boost when Nintendo’s Super Mario 3D Land game became available Thanksgiving week, as part of a bundle with a red 3DS. Nintendo of America President and COO Reggie Fils-Aime said the game was the fastest-selling portable Mario game in Nintendo’s history, and that interest in the game drove hardware sales up 49 percent.

“We believe more and more that software drives hardware,” Fils-Aime said.

Fils-Aime said Nintendo continues to invest in 3-D technology in terms of content, but for now, consumers shouldn’t hold their breath for a next-generation 3DS.

“I wouldn’t expect a complete redesign of the hardware in the near-term,” he said.

In addition to the new pink model, Nintendo 3DS is available in the U.S. in blue, black and red. A white version of the device is sold in Japan, although Fils-Aime noted that Nintendo’s white handheld DS and DSi devices haven’t sold as well in the U.S. as other colors have.

Exclusive: Kno Student Tablet Start-Up in Talks to Sell Off Tablet Part of Its Business

Kara Swisher — Mon, 21 Feb 2011 08:16:00 +0000

Kno–the much-funded and high-profile Silicon Valley start-up aimed at making tablet computers focused at students–is considering selling off the entire hardware part of the business and is in talks with two major consumer electronics manufacturers to do so, according to sources close to the situation.

Sources said Kno execs have recently decided that the quicker-than-expected uptake in tablet production by a multitude of powerful device makers had made its efforts to package a seamless offering less critical.

Instead, the company will focus on its robust software and services to offer students on the Apple iPad, as well as upcoming tablets based on Google’s Android mobile operating system and others.

BoomTown could not determine which two companies Kno was in serious discussions with about unloading its hardware business, but the company has signed an NDA with one of them.

But, if a deal is struck, the move would be a dramatic shift for the company, which has yet to ship significant numbers of the student-focused touchscreen device as it has long touted.

In fact, Kno said in November that it would ship a $599 and $899 version of the tablet by the end of the year.

The lower price was for its single-screen device, while the clamshell double-screen version was more expensive.

And, although it has been reported no pre-orders were fulfilled, Kno did indeed ship several hundred of them, built by China’s Foxconn, before stopping doing so recently.

Many have been dubious about Kno’s ambitious hardware efforts.

That’s because marketing a new and complex product like the Kno takes a lot of effort and cash, especially since it is an increasingly competitive market for mobile and portable computing products that includes Apple, Microsoft, Hewlett-Packard, Google, Amazon, Dell and many others.

Kno recently raised another $46 million in funding to add to a $10 million round, and sources said that the Santa Clara, Calif., company was considering going back out to raise even more.

Its current backers include prominent venture players like Andreessen Horowitz and First Round Capital, along with investors Mike Maples and Ron Conway.

A Kno spokeswoman declined comment.

But sources said the shift to deliver textbook and other student-related delivery system would be a better path for all that investment money, since Kno has established a wide range of partnerships with colleges and universities.

In addition, Kno Co-founder Osman Rashid has a lot of experience in digital education market. He was also the co-founder of Chegg, the textbook rental business that is reportedly aiming for an IPO soon.

You can see Rashid here, along with the Kno tablet prototype in the full demo video that the company did last year at the eighth D: All Things Digital conference:

[ See post to watch video ]

(Want to see it bigger? Click here.)

It's Hard to Cut the Charging Cords

Katherine Boehret — Wed, 16 Feb 2011 00:24:07 +0000

What if there was a product that made it easy to charge all your household mobile devices and it used just a single cord to do it?

Charging pads are designed to do just that. The WildCharge Pad from PureEnergy Solutions Inc., one of the first charging pads, seemed revolutionary when it came out three years ago. It’s a small, thin pad covered in panels that conduct electricity. It plugs into the wall, and devices can be casually dropped onto it so they can start juicing up.

[ See post to watch video ]

Yet, here we are still fumbling around to find the right charging cord to plug into our phones, iPads, digital cameras and portable music players. This week, I decided to investigate why charging pads haven’t caught on with consumers.

One reason is that people may not want to buy a charging accessory when gadgets come with their own cords. Also, for devices to work with these charging surfaces, they must have special backs or cases that correspond with the pad. These can change the look of a device, making them bulky.

However, manufacturers of smart phones and other gadgets are starting to incorporate the technology behind charging pads at the design level so they aren’t so obtuse. Palm Inc., now a subsidiary of Hewlett-Packard, designed a $20 (after instant rebate) accessory called the Touchstone that works as a magnetic charging dock for its Pre smart phones. A special backing still must be swapped out for the Pre’s regular back, but this looks just like the phone’s regular backing. And last week, when H-P unveiled its TouchPad tablet, due out this summer, the company confirmed this device would also work with a Touchstone charger.

Energizer’s Inductive Charger

But why isn’t there one charging pad that works with several different gadgets and doesn’t require an unattractive sleeve? Of the different charging technologies, there isn’t one that has gained a toehold.

A group called the Wireless Power Consortium—which includes a host of different companies like smart-phone makers, wireless carriers and TV makers—created what it intends to be an international standard for interoperable wireless charging, called Qi (pronounced “chee”). The WPC hopes manufacturers will eventually make devices that are Qi compliant so they all work with the same charging pad and don’t require a sleeve, since the technology would be built in. Products using this charging standard would have a Qi logo on their packaging. Compared with the current situation of using different chargers for each device, Qi sounds heavenly.

Though the WPC includes members like Samsung, LG Electronics, Verizon Wireless and Motorola, none of the companies has introduced a Qi-compliant product. When I asked a Motorola spokeswoman if it had plans to use the Qi standard in its products, she would only say that the company is evaluating the technology for future devices. Likewise for BlackBerry-maker Research In Motion Ltd., a WPC member. A spokeswoman said she couldn’t comment on future product plans.

In September, another trade group, the Consumer Electronics Association, created a panel to sort through various opinions on wireless power technical standards. The sole aim of the group is to collect and share information with manufacturers. This group is examining five issues that include: nomenclature; safety; radio-frequency emissions and efficiency; and standby measurement. A CEA spokeswoman said the panel and the WPC share many of the same members and that the panel plans to share information on a charging standard.

Duracell’s myGrid charging pad, which uses the conductive charging technology.

There are two types of charging technology and it isn’t clear yet which one will become the standard. The Qi standard involves a technology called inductive charging, while other companies, like PureEnergy Solutions, use a conductive charging technology.

One big difference is that inductive chargers don’t require metal-on-metal connections to charge a device like conductive chargers do. This means inductive charging will work through lots of different materials, including wood, plastic or leather. This could allow pads to be built into different surfaces, such as airplane trays and office furniture. Late last year, the first Qi-enabled wireless charging station was installed at Windsor International Airport in Ontario.

One product that is Qi compliant is Energizer’s $89 Inductive Charger (http://energizer.com/inductive), but this still requires sleeves for devices. The sleeves cost $35 each and are available for BlackBerrys, the iPhone 3G or 3GS and iPhone 4. Late this summer, Energizer will introduce a universal adapter with micro- and mini-USB compatibility.

Powermat USA’s $60 Wireless Charging System for the iPhone 4 (powermat.com) uses a slightly different technology that requires devices to rest on charging pads in specific positions.

On the conductive front, PureEnergy Solutions has licensed its WildCharge Technology to other companies. All licensees feature a WildCharge Mark of Interoperability on their products so consumers know which products are compatible with the WildCharge charging pad.

Duracell uses this technology in its MyGrid line of products (http://3.ly/A7Yh), including the $85 iPhone Starter Kit and a $90 cellphone starter kit. RadioShack will use WildCharge Technology in its $50 Enercell Charging Pad (http://3.ly/6gcY), which will be available in June, and skins for devices that charge on these pads will cost about $30 each.

In the future, hopefully, one of these committees will figure out which technology is best to establish one standard that saves people from using a rat’s nest of power cords.

Write to Katherine Boehret at mossbergsolution@wsj.com

Game Changer? Sony Uncrates Next Generation Portable

John Paczkowski — Thu, 27 Jan 2011 15:03:32 +0000

Sony stepped up its game in the mobile gaming market this morning by uncrating the Next Generation Portable, the successor to the dusty PSP. With a quad-core ARM Cortex-A9 processor and a multi-core PowerVR SGX543MP4 graphics chip, the device promises a PlayStation 3-level gaming experience further enhanced with front- and rear-facing cameras, a gyroscope, accelerometer, Wi-Fi and 3G support, and built-in GPS. It also boasts a five-inch, 960×544 OLED touchscreen and a corresponding touch panel on the rear of the unit.

It’s a radical redesign of the PlayStation Portable and an important one, as it must compete for gamers’ attention not just with Nintendo’s forthcoming 3DS but with gaming-capable smartphones like the iPhone.

“Times have changed, from an era where you had to carry around a dedicated gaming device like the PlayStation Portable to play games on-the-go,” Kaz Hirai, head of Sony’s gaming division said at a launch event today. “Now you can enjoy casual games on cellphones, smartphones, tablet PCs and many other multifunctional portable devices, and these casual gamers are growing rapidly in number….We can’t ignore this market.”

With that in mind, Sony is for the first time ever making PlayStation software titles playable on non-Sony devices. The first step toward that goal is PlayStation Suite, a new cross-platform software framework that will bring Sony titles to Android tablets and smartphones. “Easy-to-play games are becoming big business and this is recognition of that change in the market,” Hirai said. “Our mission is to make PlayStation quality games available on non-PSP devices.”

The NGP is expected at market before the end of the year. No word yet on price. Below, the NGP’s specs in full, as well as its first trailer.

Nintendo's 3DS on Sale March 27 for $250, Boasting iPhone-Like Features

Tricia Duryee — Wed, 19 Jan 2011 16:56:32 +0000

Nintendo announced the pricing and release date today for the 3DS, which it hopes will rejuvenate sales as its other hardware platforms start aging.

The 3DS will be available in the U.S. on March 27 for a competitively priced $249.99. The handheld game player’s big selling point is that it offers 3-D without the need for special glasses. The device will come in Cosmo Black or Aqua Blue. Prices will vary outside the U.S.

At an event today in New York, Nintendo revealed more of the device’s capabilities, and many of them sound like features found on the iPhone and many other smartphones.

Apple’s ability to turn its MP3 players and phones into portable gaming devices has been a competitive threat to Nintendo, which with the 3DS release looks like it is willing to recognize.

For example, the new 3DS has an online store, called the eShop, where users will be able to download games. It also has three cameras and a built-in gyro, so the device can be tilted and turned to affect game play. It will also have location-based features, where users can elect to receive new content from Nintendo or other 3DS users as they travel around. The feature can connect to Wi-Fi hotspots when in sleep mode to collect this content or to function as a pedometer, which counts a user’s steps.

Additionally, users can take pictures with the camera, or listen to music and surf the Web on an Internet browser, which will come soon in a system upgrade. Users will also be able to play with one another by exchanging a simple code. About 30 games are expected to be available by June for the device.

It’s some of these more nuanced features that could make the device more competitive, but it’s the 3-D interactivity that Nintendo is really pushing, and so far consumers have not gravitated to 3-D as a reason to upgrade a TV, so it’s unclear whether it will be a draw for the 3DS.

Nintendo’s enthusiasm for 3-D also suffered a blow when it issued a warning that it is not healthy for kids under the age of 6 to view 3-D images. Nintendo says the impact from that should be minimal because the 3-D effect can be ratcheted up or down, and even turned off completely.

How Might the Verizon iPhone Differ From the iPhone 4 (Besides Being Able to Make Calls)?

Ina Fried — Mon, 10 Jan 2011 14:00:22 +0000

Most people expect the Verizon iPhone to be pretty similar to the current iPhone 4 sold by AT&T–but even if that is the case, it may differ in some important ways.

First and foremost, it will be on Verizon’s network, which Verizon loyalists and iPhone holdouts certainly hope will mean better calls. I think this will be an interesting test in general to see which of the iPhone’s shortcomings are its own and which can really be blamed on AT&T.

Of course, the Verizon iPhone may also benefit from lessons learned from the iPhone 4, and that makes an improved antenna more likely.

The Verizon iPhone might also be available in white–something promised, but not yet delivered, for the iPhone 4.

Less likely, but still possible is that the Verizon iPhone might have the ability to act as a portable hotspot, a popular feature on competing super-duper smartphones.

Also of note will be to see which networks the Verizon iPhone supports. While designed for Verizon’s networks, it may also have the necessary radios to act as a world phone when traveling outside the reaches of CDMA.

It also matters a great deal which Verizon network it works on. Support for Verizon’s 4G LTE-based network would increase cost and lower battery life, but have benefits beyond faster data speed. It would also allow Verizon a workaround for one of the CDMA network’s biggest limitations–the inability to mix voice and data at the same time.

PREVIOUSLY:

Tired: Speculating About Verizon iPhone. Wired: Speculating About Verizon iPhone Sales.

Verizon iPhone to Debut With Unlimited Data Plan

Apple CEO Likely to Appear at Verizon iPhone Event

Verizon Event Set for Tuesday–iPhone Time

What's In Store for Technology in 2011

Walter S. Mossberg — Thu, 30 Dec 2010 02:03:49 +0000

It has been a big year in personal technology, from the debut and early success of Apple’s iPad, to the rise and continuous improvement of Google’s Android smart phone platform, to the continued surge in social services led by Facebook and Twitter.

[ See post to watch video ]

So I thought I’d take a look at the challenges and opportunities facing some major players in consumer tech in 2011. As with all my columns, this one is focused only on products and services provided directly to consumers, rather than to businesses. Also, as usual, this column isn’t meant to offer investment advice or to evaluate the management skills or financial condition of companies. It is a look at the products and competitive positions of the key contenders as they enter the new year.

Apple: Coming off a highly successful 2010, in which it introduced a new category of portable computer—the multitouch tablet—and sold millions of the product, Apple will have to withstand an onslaught of competitors by wowing consumers again with the second version of the iPad. At the same time, it will have to make a widely expected transition for the iPhone from a single carrier in the U.S., AT&T, to a second, likely Verizon. This could present a new opportunity to reach lots of new customers, but the sleek phone will have to work well on different network technology. At the same time, Apple will be hoping its planned new Macintosh operating system, Lion, can preserve the surprising momentum of the high-priced Mac, which the company is trying to enhance with certain iPad-like features, such as an app store and longer battery life.

Apple’s iPad will face an onslaught of competition in the coming year.

In 2011, Apple also is likely to try to address two areas where it has been weak: cloud computing and social networking. Both its MobileMe cloud service and its Ping social network had rough starts, and MobileMe charges $100 a year for services others give away. Apple is so popular, it has a huge opportunity to link users of its family of devices and of iTunes via the cloud and social networks, but it will have to aim higher and execute better. The second area where it likely hopes to improve is in the living room. The new, cheaper Apple TV is selling better than its predecessor but still lacks much Internet content. To break through, Apple will have to strike landmark deals with media companies.

Google: The search giant, also riding high, is now in so many product areas it competes with nearly everyone. In its core search business, it must focus on fending off a surprisingly strong challenge from Microsoft’s Bing by giving consumers more attractive, actionable results. Its Android operating system is a big hit, but still isn’t as polished or easy to use as the iPhone’s software, and even a Google official admitted it is still “an enthusiast product for early adopters.” One big test will be the forthcoming Honeycomb version of Android, meant for tablets that challenge the iPad.

A separate group at Google will try in 2011 to revolutionize the PC operating-system business and muscle in on incumbents Microsoft and Apple. Its new Chrome OS will power notebooks that essentially act as Web browsers, and run programs stored in the cloud, not on a hard disk. They also store all your files in the cloud. We’ll learn in 2011 how many consumers are comfortable with that approach.

Google also may take another whack at social networking, where it hasn’t made much of a dent after its Buzz service failed to take off. And it will have to rework its overly complex Google TV effort to bring Internet video to the living room.

Microsoft: The software giant still generates strong consumer loyalty with its older products, like Windows and Office and Xbox, all of which have had updates in the past year or two. But it faces big challenges in two hot areas: smart phones and tablets. Its new Windows Phone 7 platform has some nice design features, but also some missing capabilities that need to be addressed. Initial sales seem respectable, but will have to accelerate to get Microsoft back in a game it once led. The company also is a long way from the 300,000 apps available for the iPhone or the 100,000 for Android.

In tablets, Microsoft is hinting that a new version of Windows is being designed with a tablet focus to complement its PC focus. That product can’t be too late, given the rapid rise of the iPad and the many planned Android and other tablets for 2011. One golden opportunity Microsoft has is to expand the reach of its brilliant Kinect technology for games to other forms of computing. This system can recognize individual users and interpret gestures without the use of a controller device.

Meanwhile, Microsoft hopes to seize on a surge in concern about privacy to help keep its diminishing lead in browsers by building new privacy features, unavailable so far in other browsers, into the 2011 version of Internet Explorer.

RIM: The BlackBerry maker had a good 2010 in some ways, though sales were propped up by two-for-one giveaways, and consumer surveys show enthusiasm fading for the iconic smart phone. It needs a radically new user interface to keep up with iPhone and Android, and a lot more third-party apps. But it can’t afford to alienate its fan base. The company has an answer: a new software platform called QNX, but is vague on when that will show up on the BlackBerry. For 2011, RIM’s big move will be a new QNX-based tablet, the PlayBook, which looks speedy and highly attractive in the limited demos RIM has provided. What isn’t clear is how much the PlayBook will be aimed at consumers, as company officials have consistently stressed its appeal to businesses.

HP: The technology behemoth’s laptops and printers have proved popular with consumers. But it hasn’t had any real presence in smart-phones, tablets or consumer cloud services. To solve the problems, in 2010 HP bought innovative but struggling Palm, whose smart-phone operating system, webOS, and phones, the Pre and Pixi, got good reviews but sold poorly and didn’t attract many third-party apps. In 2011, HP hopes to use its ample money and talent to revive webOS with new phones and tablets to challenge Apple and Android. A successful Palm re-launch, with the new initiatives from RIM and Microsoft, would be good for consumers by providing more choice and competition. HP also hopes to boost home printing with a new line of printers that can print anything emailed across the Internet and wirelessly print from Apple’s hand-held devices.

Facebook and Twitter: The twin leaders in social networking were red-hot in 2010, attracting vast numbers of users. They have huge opportunities for further success, but face challenges. Smaller services, like social-coupon company Groupon, continue to emerge with new social and community ideas consumers like. Apple and Google could be big headaches if they get social right in 2011. Facebook must continue its recent initiative to let members share personal details with more limited groups of friends, and to find ways to make money while offering more privacy, which has been a thorn in its side. Twitter is on a mission to get more than an active minority to post, while convincing people it is a valuable way to keep up with news and opinion even if you never post.

Despite the poor economy, the consumer-tech companies continue to show vibrancy, innovation and success. But every year brings challenges and surprises, and 2011 promises to be another fascinating ride.

For all of Walt’s columns and videos, go to the All Things Digital site, walt.allthingsd.com.

Write to Walter S. Mossberg at walt.mossberg@wsj.com

Amazon Opens Up on Kindle Sales, Says "Millions" Sold This Holiday Season

Tricia Duryee — Mon, 13 Dec 2010 18:30:43 +0000

Amazon.com has sold “millions” of new Kindles in the first 73 days of the holiday quarter, according to the Kindle team, which was caught thanking customers in an online forum today.

That’s as close as the Seattle-based e-commerce company has come to revealing its sales numbers–ever.

In the past, it’s spoken in broad strokes, claiming that the device was “the fastest selling ever” or that the “Kindle is far and away our bestselling gift item.”

CEO Jeff Bezos also predicted that sales of electronic books will surpass paperback sales by next summer or fall, and sometime after that they will surpass the combination of paperback and hardcover sales.

Truth be told, that’s likely the more important figure for Amazon, rather than hardware sales. With an app virtually on every portable device, including the iPad and several smartphones, its electronic book distribution reaches way beyond the number of Kindles in the wild.

However, with increasing competition from Apple’s iPad and other devices, like the Barnes & Noble’s Nook, there’s still plenty of competition.

For context, the Kindle team says the number of Kindles sold this holiday season is more than the number sold in all of 2009. The sales figures were first mentioned and reported by Daring Fireball.

In September, Barclays’ Douglas Anmuth guessed that Amazon will sell about five million Kindles this year with the help of the latest redesign and more appealing $139 to $189 price points.

Apple TV: Streaming and Renting From Devices

Walter S. Mossberg — Thu, 02 Dec 2010 02:02:15 +0000

Of all the set-top boxes designed to bring online and computer content to your TV, perhaps the best known is Apple TV. But, unlike its maker’s other products, Apple TV hasn’t caught on in a big way. In fact, Apple CEO Steve Jobs calls it a “hobby.”

[ See post to watch video ]

Still, the company isn’t giving up. This fall it brought out a radically revamped Apple TV at a much lower price—$99, down from $229—and with a different philosophy. While earlier versions contained a hard disk and allowed you to purchase and store movies, music and TV shows, the new Apple TV is all about streaming and renting. It can’t store content, although, like its predecessors, it can transmit to your TV screen content stored on your networked home computers.

Perhaps the coolest feature of the new Apple TV is that it allows you to wirelessly beam video and audio from an iPhone, iPad or iPod Touch to the TV screen. A new feature called AirPlay in the latest software on these portable devices makes this possible. So, if you have a video or photos on, say, an iPad, you can just tap an icon on its screen to view them on a TV via Apple TV instead of on the device’s smaller screen. (AirPlay also works wirelessly from the free iTunes software on PCs and Macs.)

Apple’s Steve Jobs announcing the new release of Apple TV earlier this fall.

I’ve been testing the new Apple TV, including trying out AirPlay using various devices, and found that it performs as advertised. It has a clean, easy interface, does a great job of streaming content from your own computers, and it allows you to rent TV shows at just 99 cents an episode. It’s even almost invisible next to your TV—a 4-inch-square black box less than an inch tall. And setup is easy.

But it has some significant downsides. The most important of these is a very limited selection of Internet video sources. If you want a set-top box that allows you to watch a wide range of video from the Web, Apple TV isn’t it.

Apple TV is now essentially a modestly priced adapter that streams video, audio and photos to your HDTV from three main sources: your own computers, Apple’s iTunes service plus a few other online sources, and content on your portable Apple devices using AirPlay.

It’s the polar opposite of the new Google TV, which tries to encompass the entire Internet but is too complicated for mainstream users and costs hundreds of dollars. Apple is offering much less variety in content sources, but with a much simpler interface and a tiny remote with just seven buttons, versus the keyboard or minikeyboard used with Google TV.

Apple TV is still tied heavily to the company’s own iTunes service. The new model now also offers Netflix, which is nicely integrated into Apple’s user interface, but is very common on other set-top boxes, including the less expensive Roku models. YouTube is accessible from the new device, though it was present on the older model as well. The device can’t deliver other video services, nor is it designed to bring up Web pages on your TV.

And, even within Apple’s own iTunes service, which is Apple TV’s source for a la carte rental of TV shows and movies, the content is limited. For its 99-cent TV show rentals, the device mainly offers programs from ABC, Disney, Fox, PBS and the BBC. If your favorite show is on NBC, CBS or many other networks, you can’t rent it on Apple TV, nor can you get to the Web to view it. Alas, even within those networks, some of the programs are old and I couldn’t find some popular shows, like “Modern Family” on ABC or “American Idol” on Fox. (Fox, like The Wall Street Journal, is owned by News Corp.)

You can still buy TV shows from the excluded networks, or shows unavailable for rental, on your computers and stream them to the TV via Apple TV, but that is a more complicated process.

The Apple TV set-top box with TV showing 99-cent TV show rentals from iTunes.

Apple claims the largest selection of high-definition movies online, and says many are available the same day they appear on DVD. Movie rentals start at $2.99 for standard-definition versions and $3.99 for high definition, though many are $4.99. Both movies and TV shows can be kept for 30 days, but, once you start playing them, the clock starts on a short window before they expire. In the case of movies, the window is 24 hours; for TV shows, it’s 48 hours. You can pause and resume, or watch them repeatedly, within those windows.

In my tests, video and audio quality were excellent. Programs started rapidly, and I never saw any stuttering or buffering delays. Like the older Apple TV models, the new one did a very good job of streaming to the TV content from both PCs and Macs running iTunes on my home network. In fact, the process of setting this up has been made simpler. Watching slideshows of family photos was simple and rewarding.

Searching for a TV show or movie was tedious, because it requires you to peck out letters from an onscreen keyboard with the little remote. (This is why Google uses a keyboard, but that isn’t a welcome device in many living rooms.) However, there’s an alternative. Apple offers a free iPhone and iPad app that can control the Apple TV, and it has a built in virtual keyboard for much faster searching.

AirPlay worked well in my tests. I tried it on both an iPad and an iPhone, and was easily able to switch a video or song from the device itself to the Apple TV, and thus, to the TV screen and speakers. This requires merely clicking on an icon that looks like a wide-screen TV with an arrow beneath it, and then selecting “Apple TV” as a destination.

I also tried AirPlay on both a Mac and Windows laptop using the latest version of iTunes, and it worked fine. On all the AirPlay-equipped devices, you can also multitask. Once you’ve started beaming a video to the Apple TV, you can do other things on the originating device without interrupting the video. For instance, as I write this paragraph in Microsoft Word, I am watching a video beamed to my TV via AirPlay from iTunes on my laptop.

But AirPlay has some limitations. On the iPhone, iPad and iPod Touch it will only beam video to the Apple TV from Apple’s own Video, iPod and Photos apps, plus the YouTube app. On computers, it only works with iTunes. Some third-party apps on the hand-held devices can use it with audio, though not video.

Also, switching the video stream to the Apple TV can take a few seconds, during which the video keeps playing, so you often have to rewind.

Overall, Apple TV is a reasonably priced, well-designed device. It is especially attractive for viewing videos and photos from your computers, and Apple devices, on your TV. But it doesn’t deliver most Internet video sources, or even all online network programs.

Find all of Walt Mossberg’s columns and videos at the All Things Digital Web site, walt.allthingsd.com. Email him at mossberg@wsj.com.

Kno Prices Its Student Tablets at $599 and $899 to Ship by End of the Year

Kara Swisher — Tue, 09 Nov 2010 05:00:01 +0000

Kno, the high-profile Silicon Valley start-up trying to jump-start a market for tablets focused on students, announced tonight that it will have a limited number available by the end of the year for sale at prices of $599 and $899.

The lower price is for its single-screen device, while the clamshell double-screen version is more expensive.

Kno would not say exactly how many it has ordered for its first tablet production run–the device is being built by China’s Foxconn–but co-founder and CEO Osman Rashid said in an interview earlier today with BoomTown that units would number “in the thousands.”

Rashid said the Kno tablet will initially be aimed at 10 college campuses across the U.S., although he also declined to name them.

“We are going to do online and offline marketing, in a very focused approach,” he said, noting that Kno would be working with some college bookstores too.

Marketing a new and complex product like the Kno will take a lot of effort and cash, especially since it is an increasingly competitive market for mobile and portable computing products that includes Apple, Microsoft, Hewlett-Packard, Google, Amazon, Dell and many others.

Kno recently raised another $46 million in funding to add to a $10 million round, and sources said that the Santa Clara, Calif., company could be back out raising even more early next year.

Its current backers include prominent venture players like Andreessen Horowitz and First Round Capital, along with investors Mike Maples and Ron Conway.

Kno’s Rashid said his company pushed the go button after getting good feedback from students in a beta test, half of whom used the single-screen device and the other half the two screens, along with its related education platform software.

“We found that 85 percent of those using the single screen wanted the dual-screen version and that those using two screens took three times more notes,” said Rashid. “Students said they love the fact that they can write in the textbook itself and it appears the way it needs to be, even in digital form.”

The first Kno will have an aluminum body, and the company will also offer a set of accessories, such as a cover and a stand.

And Kno will watch initial sales carefully. “As a start-up, we want to make sure we are meeting demand, but also that we roll it out in a careful approach,” said Rashid.

Indeed–and it will be interesting to see how that goes for the ambitious and innovative Kno.

Until the results are in, here is the official press release from Kno:

Kno Announces Pricing and Pre-Order Availability for Tablet Textbook; Pays for Itself in 3 Semesters

Delivers Significant Student Impact for Less than 1% the Cost of a 4-Year College Education

Santa Clara, CA–November 9, 2010–Kno, Inc., a powerful, groundbreaking tablet textbook designed specifically for students and the education market, today revealed the price of its 14.1 inch single and dual-screen tablets at $599 and $899, respectively. The company also announced that it is now accepting a limited number of pre-orders for an initial shipment that is expected to be on customers’ doorsteps by the end of the year.

“Kno’s extraordinary benefits represent only a tiny fraction of the overall cost of college, but its impact on the student’s career–and the energy it adds to the experience, the thrill of learning, and the ultimate grade–is dramatic,” said Osman Rashid, Co-Founder and CEO of Kno, Inc. “Even better, when you do the math, it actually pays for itself and still saves $1,300 in digital textbook costs.”

Kno has been beta-testing the product with students and the response has been overwhelmingly positive for both the single and dual screen devices. Far more than just a digital textbook, Kno is creating a powerfully effective new learning environment that will make students at all levels more successful at processing, grasping and retaining both facts and concepts.

“My experience with Kno has been really incredible. My books have become more interactive and the ability to hand-write electronic notes on the book pages themselves has changed how I retain information,” said Melissa Lin, a sophomore majoring in Biology at UC Berkeley that has been beta-testing the Kno tablet. “I see a ton of difference with the Kno. I can carry everything with me including my books, my notebooks and a browser for research. And, with the lower cost of digital textbooks, it will pay for itself in three semesters which is really great.”

Digital textbooks, which typically cost between 30 and 50 percent less than physical textbooks, will be priced separately and will be sold through the Kno bookstore, which will be accessible on every Kno device. Starting today, students will be able to browse Kno’s bookstore at www.kno.com/store/books, which will include tens of thousands of the most popular textbooks and supplement materials. Kno has previously announced that it is working with major textbook publishers including Cengage, McGraw Hill and Pearson. The company recently added publishers including Macmillan, Bedford, Freeman & Worth and Holtzbrinck as well as BarCharts Publishing, Kaplan, Random House and a large number of the University Presses.

“According to the not-for-profit College Board’s 2010 report, the average college student spends approximately $1,100 a year on book and supplies,” said Babur Habib, CTO and Co-Founder of Kno, Inc. “Kno can reduce that cost while bringing education into the 21st Century, providing students with a far superior learning experience than they have today.”

To learn more about Kno, please visit the Kno blog at http://blog.kno.com or visit us on Facebook www.facebook.com/GoodtoKNO, Twitter www.twitter.com/GoodtoKNO and YouTube www.youtube.com/GoodtoKNO.

A Fall Guide: How to Pick Your Next Computer

Walter S. Mossberg — Thu, 04 Nov 2010 02:05:08 +0000

If you’re shopping for a new computer this fall, you won’t find big surprises. But you’ll still have to juggle a lot of technobabble terminology and watch your budget. Perhaps the biggest question for some buyers will be whether to get a tablet or a laptop, now that Apple’s iPad is a proven hit and a flood of competitors is on the way.

[ See post to watch video ]

So, here is my annual fall computer buyers’ guide, a simplified road map to the key decisions shoppers must make. I’ve focused on laptops—the most common purchase—but much of this advice also applies to desktops. As always, these tips are for average users doing the most common tasks. This advice doesn’t apply to businesses, to hard-core gamers, or to serious media producers.

Tablets vs. Laptops: If you’re looking for a light-duty, highly portable computer, it’s worth considering the iPad, which starts at $499, instead of a small laptop. This is especially true if you’re in the market for a secondary computer, or one mainly for use on the go. Many owners of iPads, including me, are finding it handily replaces a laptop for numerous tasks, such as Web browsing, email, social-networking, photos, video and music. It has superior battery life, lighter weight, and it starts instantly. I don’t recommend it for people who are creating long documents, especially spreadsheets and presentations, even though it is capable of those tasks. And I don’t recommend it for users who require, or prefer, a physical keyboard.

If you don’t like the iPad, there will soon be alternatives. For instance, Samsung’s Galaxy Tab, which has a 7-inch screen versus the iPad’s 10-inch display, and runs Google’s Android operating system, will be available this month from major wireless carriers. Sprint, for example, will offer it at $400 with a two-year contract. But some tablet buyers may want to wait till the first half of next year, when many more models will be available, and Apple will likely roll out the second-generation iPad.

Netbooks: These low-cost, low-powered little Windows computers are losing popularity, but are still available, typically for about $350 to $500. They are being hurt by the rise of tablets and by light but larger laptops. Some buyers also find the screens and keyboards are too cramped. But these are evolving. Some now have bigger screens and roomier keyboards. And Dell will soon introduce a sort of hybrid netbook-tablet. Called the Inspiron Duo, this model, starting at $499, has both a regular keyboard and a touch screen that flips around when the lid is closed to act like a tablet.

Windows vs. Mac: Windows laptops can be much less costly—and come in many more styles and varieties—than Mac laptops. The Macs start at $999, versus as little as $500 for a decently equipped Windows portable. Windows laptops are still dominant. But Apple laptops are stylish and reliable, and usually boot much faster than Windows machines, in my tests. Also, Apple scores high on surveys of customer support. Its latest models, like the new, light MacBook Airs, have extraordinarily good battery life. Macs also aren’t affected by the vast majority of malicious software, have much better built-in multimedia software and, at extra cost, can run Windows programs in cases where Mac equivalents aren’t available.

The light but speedy 13-inch Toshiba R705 offers good battery life.

Cost: Most of the popular consumer Windows laptops cost $500 to $800. You can get full-size laptops for as little as $280, but their processors and graphics are weak and some lack webcams. If you can afford it, a light but speedy 13-inch machine like the Toshiba R705 offers very good battery life for just under $800. All-in-one desktops typically cost around $1,000 and some, like the HP TouchSmart, offer touch screens with special touch software. Apple’s popular all-in-one iMac starts at $1,199.

Processors: The most promoted chips are Intel’s i3, i5, and i7 Core models, the latter two of which can turn on and off some of their functions to boost power or save energy. But there is nothing wrong with buying a PC that uses chips from rival AMD, which usually cost less. For average users, Intel’s older Core 2 Duo still works just fine, even with the latest software. Intel’s weaker Atom processor line powers most netbooks.

Graphics: Integrated graphics, which share the computer’s main memory, are fine for most common tasks, but costlier discrete graphics, which have dedicated memory, can speed things up by taking some of the load off the main processor. They also are better for games. Some computers have both and can switch among them.

Wireless: More and more laptops are coming with optional cellular modem chips in addition to Wi-Fi. These can be handy while traveling, but be warned that they require a cellular data contract, which can be costly.

Connections: If you plan to connect your laptop to a TV, look for a connector called an HDMI port, which is used on most high-definition TVs. Some laptops also come with a feature called Wireless Display, or Wi-Di, which, with an extra-cost adapter, can beam your laptop screen to a TV without a cable. There is a new, much faster USB port, called USB 3.0, but, so far, it’s on very few machines.

Memory: Aim for 4 gigabytes of memory, or RAM, on a new computer, and never settle for less than 2 gigabytes.

Hard disks: A 320 gigabyte hard disk should be the minimum on most PCs, though 250 gigabytes is OK if price is key, or if it’s your secondary machine. Solid-state disks, which lack moving parts and use flash memory like smartphones do, are faster and use less battery power. They cost much more, but are coming down in price fast. However, they typically offer much less capacity.

64-bit: Many models now use a 64-bit architecture, which allows properly written software to use more memory and run faster. If possible, buy 64-bit, which will become more and more important.

Touch: Some Windows 7 computers have touch capability built into the screen, though Windows wasn’t designed with touch as a core element and the combination isn’t ideal. Computer makers try to resolve this with special touch software, which you should try in a store. Apple laptops use huge touch pads as the multitouch surface, instead of the screen.

As always, don’t buy more machine than you need.

Find Walt Mossberg’s columns and videos online at the All Things Digital website, walt.allthingsd.com. Email him at mossberg@wsj.com.

Nintendo More Scared of Apple Than of Microsoft

John Paczkowski — Tue, 26 Oct 2010 14:32:51 +0000

Which company is the greater threat to Nintendo’s gaming business–Apple or Microsoft? According to Nintendo of America President Reggie Fils-Aime, it’s Apple–at least in the short term. “Do I think that in the near term [Apple] can hurt us more than Microsoft?” Fils-Aime said to Forbes. “Absolutely.”

And it appears Apple already is. According to some statistics trotted out at its annual September music event, Apple’s developed quite a hold on the portable gaming market. The company claims a 50 percent share of the portable gaming market and says the iPod touch is the No. 1 mobile gaming device worldwide, outselling the Nintendo DS and Sony PSP combined. And that hold will only strengthen with the recent launch of Apple’s Game Center–a new interactive gaming service included in iPhone OS 4–and the proliferation of cheap and increasingly more sophisticated games for the platform (seen Epic Citadel, yet?).

It’s said that Nintendo views Apple as the “enemy of the future.” And it clearly is that. But it’s also very much an enemy of the present and the recent past as well. As Phil Schiller, Apple’s SVP of worldwide product marketing, said over a year ago: “People are starting to see what a great gaming device [the iPod touch is]. When you think about the companies that came before us…when you played those other systems, they seemed so cool, but now when you look at them, they don’t stack up against the iPod touch….No Multi-Touch user experience, Games are expensive, No App Store, No iPod, Expensive Games and uncomfortable retail buying experiences.”

Gartner: Here Comes the Tablet Tsunami

Voices — Fri, 15 Oct 2010 17:05:46 +0000

With the iPad, Apple once again redefined a product category, and the result is one of Steve Jobs’s favorite words: Boom! According to a forecast released by Gartner today, worldwide sales of media tablets, led by the iPad, will reach 19.5 million units this year, and then jump 181 percent next year as more entries based on Google’s Android and other systems flood the market. By 2014, Gartner sees sales topping 208 million units. Some of those sales, however, will come at the expense of other portable computing and media devices, the report said.

Panasonic, Welcome to the Jungle

Daisuke Wakabayashi — Thu, 07 Oct 2010 14:53:58 +0000

Making videogame consoles is not for the faint of heart. It’s a high-risk, high-reward business that can often leave the losers awash in red ink. So it was surprising to hear that Panasonic Corp., the company making a lot of noise about how it plans to focus on green energy businesses, is developing a new handheld videogame system for online game players.

The videogame industry is littered with the corpses of failed portable game systems. Anyone still using a Nokia (NOK) N-Gage? How about a Sega Game Gear or a TurboExpress?

We got a first peek at the new device, which is called the Jungle, via a Web site that appears to be part of a very un-Panasonic like guerrilla marketing campaign. In a jokey tone, the Jungle’s Web site calls the device’s display “kick ass” and then tells visitors to “stay very closely tuned unless you’re tone deaf.” (For those curious, the Jungle looks like a shrunk-down portable DVD player with a built-in keyboard.)

If Panasonic (PC) needs to know how tough the handheld game market is, all they have to do is look at the struggles facing the current market leader. Nintendo Co.’s DS handheld has been one of the best-selling game systems of all time since its debut in 2004, but demand for the device has recently slowed. It’s been plagued by piracy and a challenge from simple games played on mobile phones.

Read the rest of this post on the original site

You're Right, Steve. The PC Is a Truck. But the Tablet Isn’t a Car. It's a Bicycle.

John Paczkowski — Thu, 17 Jun 2010 17:45:07 +0000

Apple (AAPL) CEO Steve Jobs likes to compare the transition from desktop/laptop PCs to tablets with the transition from trucks to cars. Like trucks, which waned in popularity with the urbanization of America, so too will older PC form factors with the advent of more mobile and responsive forms of computing.

“When we were an agrarian nation, all cars were trucks, because that’s what you needed on the farm,” Jobs said at D8 last month. “But as vehicles started to be used in the urban centers, cars got more popular. Innovations like automatic transmission and power steering and things that you didn’t care about in a truck as much started to become paramount in cars….PCs are going to be like trucks. They’re still going to be around, they’re still going to have a lot of value, but they’re going to be used by one out of x people.”

Jobs stopped short of predicting just how quickly this transition will occur, but in a research report published today, Forrester (FORR) hazards a guess: By 2015, nearly one out of four computers sold in the U.S. will be a tablet. According to analyst Sarah Rotman Epps, tablets will outsell netbooks by 2012 and desktops by 2015.

“Catalyzed by the introduction of the Apple iPad, the tablet market will kick off with a modest 3.5 million units sold in the US in 2010 but will grow at a whopping 42 percent compound annual growth rate (CAGR) between now and 2015,” she writes. “Tablet growth will come at the expense of netbooks, which have a similar grab-and-go media consumption and Web browsing use case as tablets but don’t synchronize data across devices like the iPad does.”

Five years from now, Epps says, only laptops will have a greater share of the PC market (42 percent). At that point, tablets will claim a 23 percent share, and the only thing keeping desktop sales alive will be processing-heavy consumer needs like gaming and video editing.

“Although notebook/laptop users will still be outnumbered by desktop users in 2015, laptops will represent the lion’s share of new PC purchases from now through 2015,” Epps writes.

“Even though consumers may use tablets for many of the same functions for which they currently use laptops–media consumption, email, Web browsing, and light productivity–they won’t replace laptops,” the analyst concludes. “Instead, tablets will become a consumer’s other computer that’s more portable within the home and outside of it.”

In other words, Epps thinks Steve Jobs is right when he says the PC is destined to become a “truck.” But she disagrees that the tablet is the car that will replace it. In her view, it’s the laptop that’s the car. Which I suppose makes the tablet a bicycle–not necessarily a bad thing from a sales point. Almost everyone owns a bicycle, right?

Videogames Head Into a World of 3-D

Daisuke Wakabayashi and Yukari Iwatani Kane — Tue, 15 Jun 2010 23:49:05 +0000

Nintendo Co. unveiled a new hand-held game system that displays 3-D images without the need for glasses, while rival Sony Corp. (SNE) presented a lineup of new 3-D titles, underlining how the videogame industry is betting on new technologies to rev up its growth.

Both Nintendo and Sony made 3-D a central element of their presentations at the annual Electronic Entertainment Expo on Tuesday, with Nintendo taking the wraps off its 3DS handheld, an upgrade to its popular DS portable game machine.

Sony showed off new 3-D games including the latest versions of blockbuster franchises such as car racing game “Gran Turismo” and shooting game “Killzone.”

The 3-D products come as the videogame industry has struggled with continued slow growth despite an improving economy.

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New Intel Chips Could Make Ultrathin Laptops Worth Buying

John Paczkowski — Mon, 24 May 2010 19:01:54 +0000

Intel fleshed out its mobile processor line this morning, adding to it a series of low-voltage chips intended for ultrathin laptops. Covering the broad spectrum of Intel’s silicon–everything from the Celeron and Pentium to the higher-end Core line–these new chips theoretically provide double the graphics performance and 35 percent to 40 percent of the computing performance of their predecessors (click graphic below to enlarge).

“The ultrathin microprocessor which fits into the ultrathin solution is addressing all of these areas–better battery life, better performance,” Mooly Eden, vice president and general manager of the PC Client Group at Intel (INTC), said while announcing the chips this morning. “It’s going to be lighter, it’s going to be smaller, and it will fit the consumer system price point. You’ll see some very affordable systems.”

This bodes well for the ultrathin laptop, which hasn’t had much success staking out a middle ground between the netbook and the laptop because its performance often doesn’t justify its price. If Intel’s new chips change that, the ultrathin segment may stand to gain a bit of traction in the portable market.

Videogame Industry Suffers Massively Multiplayer Sales Decline

John Paczkowski — Fri, 14 May 2010 13:50:08 +0000

April was another lousy month for the videogame industry. With overall revenue down 26 percent and hardware down 37 percent, it was the worst monthly year-over-year sales decline since last July, according to research house The NPD Group. It was also the 10th time in the last 13 months that sales have fallen year-over-year.

Nintendo sold 277,2000 Wiis, down from 557,500 in March and 340,000 a year ago. The company sold 440,800 Nintendo DS’s, down from 700,800 in March and 1.04 million a year ago.

Microsoft sold 185,400 Xbox 360s, down from 338,400 in March, but up from 175,000 a year ago.

Sony sold 180,800 PlayStation 3s, down from 313,900 in March, but up from 127,000 a year ago. And it sold 65,500 PSPs, down from 119,900 in March and 116,000 a year ago.

What’s driving the drops? Blame the portable gaming industry, which contributed more than its fair share to the industry decline, said NPD analyst Anita Frazier.

“The portable business across hardware, software and accessories accounted for 25 percent of total industry dollar sales in April,” Frazier explained. “But declines in portable sales compared to April ’09 accounted for 61 percent of the total industry decrease.”

That’s just abysmal, even if April is traditionally the slowest month of the year for videogame sales. Consider this: At 440,800, sales of the Nintendo DS tanked by more than 50 percent from more than one million last April.

So what’s going on? Perhaps consumers are postponing new portable game system purchases in anticipation of Nintendo’s new 3DS. Or perhaps they’re finding that their smartphones make fine gaming devices.

It’s not yet clear. But what is clear, and painfully so, is that the hardware refresh promised by Sony (SNE) and Microsoft (MSFT), which are adding new motion technology to their players, and Nintendo, which is debuting the 3-D version of its DS handheld, can’t come soon enough.

In the Kno: Kakai to Demo Student-Focused Tablet at D8

Kara Swisher — Fri, 14 May 2010 07:01:50 +0000

Recently, BoomTown uncloaked one of Silicon Valley’s hotter “stealth” start-ups, called Kakai.

My take: An advanced tablet device and related service aimed at students.

Today, Kakai is taking another step out of the shadows by changing its name to Kno, which is short for knowledge.

You can see its new logo above–and on the new Kno Web site is this message: “Our stealth days are almost over! You’ll need to wait a few more days to really Kno.”

Actually, you will be able to see exactly what the company has come up with at the eighth D: All Things Digital conference, where it will be demoing the Kno for the first time in public.

The Linux-based foldable double-screened device is designed to feel like a mix of notebook and textbook.

Gesture-based and portable, Kno will be aimed directly at the education niche. The endeavor goes well beyond the tablet itself by including robust software and a seamless Web site to deliver course material, allowing for note-taking and offering other audio and video capabilities.

Founded almost exactly a year ago, Kakai had been one of the start-ups in Silicon Valley in the deepest of stealth modes, despite a panoply of high-profile players involved.

As I wrote:

“In simplest terms, it’s essentially a Kindle for students.

But that’s just the tip of what is perhaps one of the more ambitious and innovative efforts on the part of a Silicon Valley entrepreneur who already has one hit under his belt.”

I was referring to Osman Rashid, whose other start-up is fast-growing online textbook rental leader Chegg.

And you can pretty much draw a straight line from Chegg to Kakai.

But rather than focusing on making an old business better via the Web, as Chegg does, Kno will be headed right into the competitive tablet market that now includes Amazon (AMZN), Apple (AAPL), Samsung, Dell (DELL), Hewlett-Packard (HPQ) and, reportedly, Google (GOOG).

Santa Clara, Calif.-based Kakai/Kno has raised almost $10 million in funding from prominent venture players like Andreessen Horowitz and First Round Capital, along with investors Mike Maples and Ron Conway.

In addition, Marc Andreessen is now on Kakai’s board.

Rashid, who founded Kakai with Babur Habib, has worked in companies related to the consumer electronics industry.

You can check out their efforts on June 2 on this site, when we will be providing ongoing coverage of D8, where we will also be featuring four other demos of cool new innovations, along with interviews of top tech and media execs.

In the Kno: Kakai to Demo Student-Focused Tablet at D8

Kara Swisher — Fri, 14 May 2010 07:01:00 +0000

Recently, BoomTown uncloaked one of Silicon Valley’s hotter “stealth” start-ups, called Kakai.

My take: An advanced tablet device and related service aimed at students.

Today, Kakai is taking another step out of the shadows by changing its name to Kno, which is short for knowledge.

You can see its new logo above–and on the new Kno Web site is this message: “Our stealth days are almost over! You’ll need to wait a few more days to really Kno.”

Actually, you will be able to see exactly what the company has come up with at the eighth D: All Things Digital conference, where it will be demoing the Kno for the first time in public.

The Linux-based foldable double-screened device is designed to feel like a mix of notebook and textbook.

Founded almost exactly a year ago, Kakai had been one of the start-ups in Silicon Valley in the deepest of stealth modes, despite a panoply of high-profile players involved.

As I wrote:

“In simplest terms, it’s essentially a Kindle for students.

But that’s just the tip of what is perhaps one of the more ambitious and innovative efforts on the part of a Silicon Valley entrepreneur who already has one hit under his belt.”

I was referring to Osman Rashid, whose other start-up is fast-growing online textbook rental leader Chegg.

And you can pretty much draw a straight line from Chegg to Kakai.

In addition, Marc Andreessen is now on Kakai’s board.

Rashid, who founded Kakai with Babur Habib, has worked in companies related to the consumer electronics industry.

HTC Sues Apple: The Complaint and Patents [DOC]

John Paczkowski — Wed, 12 May 2010 20:45:54 +0000

Earlier this morning, HTC said it has filed suit against Apple (AAPL), accusing the company of infringing on five HTC patents. Below, a copy of the suit and a list of the intellectual property at issue in it, which, frankly, pales a bit in compared with the patents in Apple’s complaint against HTC.

U.S. PATENT NO. 6,999,800 Method for power management of a smart phone
A method for power management of a smart phone having a power system, a mobile phone system operated in a standby, sleep, connection or off mode, and a PDA system operated in a normal, sleep or off mode

U.S. PATENT NO. 7,716,505 (granted yesterday!)
Power control methods for a portable electronic device
A power control method for a portable electronic device. The portable electronic device comprises a power supply unit and a volatile memory for storing data when the power supply unit supplies power thereto. First, the portable electronic device is set to enter a deep sleep mode. Then, data accessed from the volatile memory is transferred to a non-volatile memory. Finally, except for maintaining sufficient power to restore the device, the power supply unit is turned off.

U.S. PATENT NO. 5,541,988
Telephone dialler with a personalized page organization of telephone directory memory
An advanced telephone dialler has been described, incorporating a fast retrieval and dial telephone directory. The system simplifies the use of the telephone directory by using a single sliding or rotary key for scanning and selection of the name and number to be dialled and one button for speed dialling of the selected number.

U.S. PATENT NO. 6,058,183
Telephone dialler with a personalized page organization of telephone
An advanced telephone dialler has been described, incorporating a fast retrieval and dial telephone directory. The system simplifies the use of the telephone directory by using a single sliding or rotary key for scanning and selection of the name and number to be dialled and one button for speed.

U.S. PATENT NO. 6,320,957
Telephone dialler with easy access memory
An advanced telephone dialler has been described, incorporating a fast retrieval and dial telephone directory. The system simplifies the use of the telephone directory by using a single sliding or rotary key for scanning and selection of the name and number to be dialled and one button for speed dialling of the selected number.

HTC ITC Complaint Date-Stamped Copy –

Exclusive: Kakai, Stealthy No More–It's a Kindle for Students and Much More

Kara Swisher — Thu, 22 Apr 2010 11:00:35 +0000

Founded last May, Kakai is one of the start-ups in Silicon Valley in the deepest of stealth modes, despite a panoply of high-profile players involved.

But while there have been sketchy reports suggesting that the start-up may be working on some kind of e-reader, BoomTown has found out exactly what it’s up to via reports of a concept video the company has shown potential investors and interviews with several sources close to the situation.

In simplest terms, it’s essentially a Kindle for students.

But that’s just the tip of what is perhaps one of the more ambitious and innovative efforts on the part of a Silicon Valley entrepreneur who already has one hit under his belt.

That would be Osman Rashid, whose other start-up is fast-growing online textbook rental leader Chegg.

Chegg recently hired former Yahoo (YHOO) exec Dan Rosensweig as its CEO, taking over from Rashid, who wanted to focus on Kakai.

Interestingly, you can pretty much draw a straight line from Chegg to Kakai.

But rather than focusing on making an old business better via the Web, as Chegg does, Kakai is plunging right into the competitive tablet market that now includes Amazon (AMZN), Apple (AAPL), Samsung, Dell (DELL), Hewlett-Packard (HPQ) and, reportedly, Google (GOOG).

While these efforts, including Apple’s iPad, for example, are mostly aimed at broader media markets, sources said Kakai’s effort focuses solely on the educational niche, offering a Linux-based foldable double-screened device.

Gesture-based and portable, it is designed to feel like a mix of a notepad and a book.

While Kakai declined to comment, sources said a key part of the endeavor goes well beyond the tablet itself by including robust software and seamless Web site to deliver course material, allowing for note-taking and offering other audio and video capabilities.

Santa Clara, Calif.-based Kakai, which is nearing 50 employees, is now prepping the device to be ready for a demo in several months.

It’s paying for all this with almost $10 million in funding from prominent venture players like Andreessen Horowitz and First Round Capital, along with investors Mike Maples and Ron Conway.

In addition, Marc Andreessen is now on Kakai’s board.

Rashid, who founded Kakai with Babur Habib, has worked in companies related to the consumer electronics industry.

Until he reveals more specifics, though, don’t expect much from Kakai’s homepage (see below), which has a very funny trio of jokes that play with the company name, asking “Which Kakai are you looking for?”

The possibilities include Kakai Bautista, a singer-comedienne in the Philippines; Neferirkare Kakai, third Pharaoh of Egypt during the Fifth dynasty; and Kakai, an Austrian pumpkin that yields valuable oil that promotes prostate health.”

Not looking for the singer, the pharaoh or the pumpkin?,” reads the bottom of the Kakai homepage. “Well, we wish we could tell you more, but you’ll just have to cool your jets.”

Perhaps now it’s time to start heating them up.