Something seems to have resonated with Jon Stewart and his “Daily Show” writers, who weighed in yesterday. Note that almost all of the footage they use in this one seems to come from a June 1, 2010, CNN report:

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Separating physical and digital sales is quickly becoming an outdated concept, since the two are so intertwined.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:

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

The U.S. software giant said in a statement that a protest erupted earlier this month over “staffing assignments and transfer policies, not working conditions” at the Wuhan facility, where Foxconn reportedly manufactures the Xbox game console. Redmond, Wash.-based Microsoft said workers at the plant manufacture hardware products but didn’t specify which ones.

Read the rest of this post on the original site »

The e-commerce giant (a term typically reserved for Amazon in these woods) is one of the larger examples companies from the Bay Area that are setting up shop here and looking to soak up some of the Northwest’s rich engineering talent.

Other companies with satellite offices in the Seattle area include Google, Facebook, Zynga and Salesforce.

“I’m surprised I ended up at eBay, but the story is compelling,” said Ken Moss, who was hired in November to be eBay’s VP of managed marketplaces technology; Moss is GM of the Redmond office.

A long-time Microsoft employee whose claim to fame includes inventing the Pivot table in Excel, Moss more recently co-founded CrowdEye, a start-up focused on search technology and later on stock market prediction.

He said eBay’s dedication to the region is one of the biggest selling points for recruitment.

Most of the 75 employees that currently work there were hired over the past few months, and a small team has been here for seven years. Among the newbies I met were a number of Microsoft veterans who had been there for 12 to 15 years.

Moss says he will report directly to eBay’s CTO Mark Carges, which is “a signal to the whole company that diversified development is for real.”

“We are first-class citizens,” Moss said, referring to sometimes strained relationship between remote workers and a company’s headquarters.

Eric Brill, VP of eBay’s research labs, is also based in the Redmond office, and has been working part-time there since joining the company in 2009.

Moss said eBay will be looking to hire a range of technologists, from college graduates to senior leaders, including developers, testers, researchers, data miners and other positions.

While I was at the office on Tuesday, the mountains were peeking out from the clouds and were easy to spot from the floor-to-ceiling windows on the fourth floor. It was easy enough for everyone to have a window seat in the open-floor plan.

Although the employees just moved in on Monday, a sign outside the building already announced eBay’s presence. Inside, workers were busy putting the final touches on the space to make it feel like eBay. Primary colors of red, blue, yellow and green highlighted the office walls; with a bit of Seattle flair, conference rooms were named after Northwest tribes such as Puyallup and Quinault (and other names that might be difficult for San Jose-based employees to pronounce).

But missing were some of the perks that some recruits expect these day — no shuttles to and from work or fancy cafeterias, for instance. 

In fact, eBay has a long way to go to compare with what Google has done here. Since entering the market seven years ago, Google has hired more than 900 employees, spread across two locations, a spokesperson confirmed.

One office is in Seattle’s Fremont neighborhood; the other is on the Eastside.

The two offices are geographically divided by Lake Washington, which can be crossed by one of two floating bridges — or by boat, if you are crafty enough. The traffic bottlenecks make for a horrendously notorious commute, so having two locations that straddle both sides is a huge perk — like having offices in both San Francisco and San Jose.

Because of Google’s size here, many of its perks are similar to its Mountain View headquarters, including free meals prepared by chefs, frozen-yogurt bars and other, mostly food-based, luxuries.

In eBay’s case, the new digs are located deep on the Eastside, a couple of miles past Microsoft in Redmond, and roughly 15 miles from Jeff Bezos’s empire in downtown Seattle. Recently, Amazon relocated its headquarters to a brand-new campus in South Lake Union, a neighborhood being revitalized by former Microsoft executive Paul Allen.

Other outside companies that have also established sizable tech centers here include Facebook and Zynga. A couple others have gained offices through acquisitions. Electronic Arts, for instance, now has a large office here, after acquiring PopCap; EMC now has big expansion plans here, after purchasing Isilon.

And Geekwire, a Seattle-based technology blog, is good at keeping an ongoing tally, including recent moves into the area by Jawbone and SweetLabs, a San Diego-based start-up, based by Intel Capital and Google Ventures.

Two years ago, Facebook opened an office in the heart of downtown Seattle. It plans to move soon to a 27,000-square-foot space that will have room for about 135 employees. The 70 or so engineers in the office today have worked on projects such as video calling, the Facebook iPad app and other big issues, such as security.

Last April, social game maker Zynga opened an office in Seattle’s historic Pioneer Square neighborhood, hoping to absorb some of the game talent here, spawned from Xbox and Nintendo, and cloud-computing knowledge from Amazon. It has 50 employees today, but declined to say how many it planned to hire in the near future.

As with most of these companies, eBay believes it can find a diversity of talent here that can’t always be easy to hire in the Bay Area.

As a Seattle native, and having covered tech here for the past 12 years, including an eight-year stint at the Seattle Times, I might not be the most unbiased on the subject. But I’ve seen first-hand the breadth of talent here, from Microsoft, Amazon, Expedia, T-Mobile and many others, including a strong start-up pool.

Despite that, the local tech community often suffers from an inferiority complex when it compares itself with the Bay Area, which is much larger. Still, it seems that Silicon Valley companies are finding a number of excuses to travel north to drink from the area’s plentiful tech waters.

Microsoft was proud to announce that over its lifespan, more than 66 million consoles have been sold and that 40 million users have signed up for an Xbox Live membership.

To be sure, the Xbox continues to be one of the top-selling videogame consoles, beating both Sony’s PlayStation 3 and Nintendo’s Wii for the past year.

But breathing new life into the device is the motion-controlled accessory called the Kinect, which was introduced right before the holidays in 2010.

Microsoft provided a sales update last night for the Kinect, saying it has now sold 18 million of the units, which represents about one in four Xbox owners. The last update — that 10 million had been sold — was provided 10 months ago when Microsoft said the Kinect shattered the Guinness Book of World Records for fastest-selling consumer device ever.

But the device’s future is a little hazy.

On the Xbox, one of the most popular use cases has been to play dance simulation games. The controller has yet to break substantially into the more hardcore titles. More recently, Microsoft has made it clear that the Kinect will be an integral part of the user interface by providing a wider selection of entertainment options in the living room.

On Dec. 6, the company rolled out a free update to Xbox Live that allowed people to use the Kinect to conduct a Bing search to find games, music and video across several providers. The user interface also allowed people to control the box with voice commands instead of the game controller.

During the keynote, Microsoft’s CEO Steve Ballmer announced the Kinect will be coming to Windows on Feb. 1.

In a follow-up blog post, Microsoft said the hardware will have to be optimized for the Windows platform, and the price will reflect that. The Windows-based device will cost $250, more than double the price of the Kinect for Xbox, currently $120 on Amazon.

Microsoft also points out that it can mark down the cost of the hardware for the Xbox because it is subsidized by the purchase of games.

The biggest change to the hardware perhaps is that the camera will be able to see objects as close as 40 to 50 centimeters away from the device, whereas the Xbox version requires you to stand a few feet away from the TV and use most of your living room.

Microsoft also said Kinect for Windows will support gestures and voice on Windows Embedded-based devices, such as systems in manufacturing, retail and other industries.

There will be a slightly cheaper version, priced at $150, for qualifying educational users, to fuel additional innovation on the platform.

Coming up with compelling reasons to buy the technology will be important, especially since Microsoft is charging such a premium price.

MORE CES NEWS:

• Complete coverage
• HP’s Former CTO: Ultrabooks Are Nothing New, webOS Still Has Life Yet
• Walt Shows Off CES Gadgets for Fox Business News (Video)
• What Kind of Web Video Plans Does Sony Have? (Video)
• Fujitsu Seeking Way Into Crowded U.S. Smartphone Market
• Why Rhapsody Is (Probably) Bigger Than Spotify — In the U.S.
• Microsoft Beefing Up CeBit Presence Even as It Pulls Back on CES
• Inside the CES Lost & Found
• FCC Chairman Has New Tablet, but Same Script: More Spectrum!
• Verizon Wireless: We Want to Connect Five Devices for Every Subscriber
• Ultrabooks From HP and Lenovo That Are (Kinda, Sorta) Different
• Walt and Katie Take a Tour of CES (Video)
• Schmidt-Storm Alert: The Google Chairman Didn’t Like Your Question
• T-Mobile Expands Bobsled Messaging Service
• Intel Shows Just How It Plans to Get Into Phones (Video)
• Motorola CEO: We’re Going to Release Fewer Phones This Year
• Kinect Helps Keep Aging Xbox at the Top of Its Game
• More From T-Mobile CEO: On Pricing, LTE and That Ever-Elusive iPhone
• Exclusive: New Boss Acknowledges Windows Phone Still Has “Awareness Problem”
• And You Thought Jawbone UP Was Going to Miss the CES Party!
• Interview: T-Mobile CEO Says No Second AT&T Deal Out There
• Grover Is at CES and I Am Missing It
• BlueStacks Bringing Android Apps to Windows 8
• Why the Future of TV Won’t Be Here Soon
• Nvidia’s Tegra 3 Tries to Save Battery in All Sorts of Different Ways
• Dynamic Dual Coverage: Ballmer’s Last Act in Vegas and the BCS Championship in 3-D
• Microsoft Phoning In Its Last CES Keynote
• Myspace — Yes, Myspace — Says It’s Going to Sell You Web TV
• Samsung Unveils “Super” 55-Inch OLED TV
• Nokia Unveils That LTE Windows Phone It’s Been Dying to Share
• Steve Ballmer Gives Ralph De La Vega a Very … Vigorous Greeting (Video)
• Interview: AT&T’s De La Vega on LTE, Tablets and Life After T-Mobile
• AT&T’s De La Vega: Shared Data Plans Still in the Works
• LG: 55-Inch Glasses-Free 3-D Screen Is on the Way
• LG Pushes 4G Smartphone Through Verizon: The LG Spectrum
• Live: AT&T’s Vegas Act Stars LTE and, Making Her Return to the Stage, Nokia
• CES Notebook: The Constant Search for Power and Vegas’ Worst-kept Secret
• Belkin Bringing Mobile TV to Lots of Cellphones, Will Anyone Tune In?
• Acer Introduces “World’s Thinnest” Ultrabook and a “Me-Too” Cloud Service
• There Better Be Some Cool Stuff at CES, Because CE Holiday Sales Data Bytes!
• CES 2012: Snooki and Bieber Are In, Gaga Is Out!
• Coming to a Smartphone Near You: Gorilla Glass 2
• RIM Hopes Next PlayBook OS Will Impress at CES
• Ultrabooks, the Ultra-Fancy New Name for Laptops
• At CES, Expect More Gadgets Telling You to Get Off the Couch
• Intel to Detail Its Phone Plans at CES Next Month
• Microsoft Pulling Out of CES After Upcoming Show
• Intel to Detail Its Phone Plans at CES Next Month
• Dell Will Drop the Flashy Vegas Act for CES This Year
• Ultrabook Conga Line Preps for CES 2012

The company isn’t making much news during Steve Ballmer’s speech, which is due to start any minute now.

Arguably the biggest news is already out — the company’s phone announcements with Nokia and AT&T.

Ballmer is also expected to toss out some numbers showing how well it is doing with Xbox console and the Kinect add-on that allows one to play games without a controller.

Beyond that, Microsoft will show a demo of Windows 8, but there probably won’t be much new from what the company showed developers last fall at its Build conference. A beta version of the operating system is due next month; though, again, Microsoft had already said that.

But I can’t help but think that this need not have been Microsoft’s Vegas fate.

I’m not saying that Steve Ballmer could have been the next Rita Rudner or Wayne Newton. But, surely there is enough interesting stuff things on in Redmond to put on one good show a year.

They could pull some of the amazing stuff cooking in their labs, preview some games and show a bit of where Windows is headed.

But, alas, they haven’t done that for many years. Bill Gates used to do that. Sure, not everything he predicted was a hit (think stylus-based tablets, smart watches and Internet appliances). But at least there was something new.

That said, Microsoft is promising that this year’s show should at least be entertaining. If you want to follow along, check out AllThingsD’s innovative live blog, which combines the Ballmer-note with the ongoing BCS championship football game. Hopefully, at least one will keep you entertained. (Or at least that we do, even if the on-field heroics are less than memorable.)

MORE CES NEWS:

• Complete coverage
• HP’s Former CTO: Ultrabooks Are Nothing New, webOS Still Has Life Yet
• Walt Shows Off CES Gadgets for Fox Business News (Video)
• What Kind of Web Video Plans Does Sony Have? (Video)
• Fujitsu Seeking Way Into Crowded U.S. Smartphone Market
• Why Rhapsody Is (Probably) Bigger Than Spotify — In the U.S.
• Microsoft Beefing Up CeBit Presence Even as It Pulls Back on CES
• Inside the CES Lost & Found
• FCC Chairman Has New Tablet, but Same Script: More Spectrum!
• Verizon Wireless: We Want to Connect Five Devices for Every Subscriber
• Ultrabooks From HP and Lenovo That Are (Kinda, Sorta) Different
• Walt and Katie Take a Tour of CES (Video)
• Schmidt-Storm Alert: The Google Chairman Didn’t Like Your Question
• T-Mobile Expands Bobsled Messaging Service
• Intel Shows Just How It Plans to Get Into Phones (Video)
• Motorola CEO: We’re Going to Release Fewer Phones This Year
• Kinect Helps Keep Aging Xbox at the Top of Its Game
• More From T-Mobile CEO: On Pricing, LTE and That Ever-Elusive iPhone
• Exclusive: New Boss Acknowledges Windows Phone Still Has “Awareness Problem”
• And You Thought Jawbone UP Was Going to Miss the CES Party!
• Interview: T-Mobile CEO Says No Second AT&T Deal Out There
• Grover Is at CES and I Am Missing It
• BlueStacks Bringing Android Apps to Windows 8
• Why the Future of TV Won’t Be Here Soon
• Nvidia’s Tegra 3 Tries to Save Battery in All Sorts of Different Ways
• Dynamic Dual Coverage: Ballmer’s Last Act in Vegas and the BCS Championship in 3-D
• Microsoft Phoning In Its Last CES Keynote
• Myspace — Yes, Myspace — Says It’s Going to Sell You Web TV
• Samsung Unveils “Super” 55-Inch OLED TV
• Nokia Unveils That LTE Windows Phone It’s Been Dying to Share
• Steve Ballmer Gives Ralph De La Vega a Very … Vigorous Greeting (Video)
• Interview: AT&T’s De La Vega on LTE, Tablets and Life After T-Mobile
• AT&T’s De La Vega: Shared Data Plans Still in the Works
• LG: 55-Inch Glasses-Free 3-D Screen Is on the Way
• LG Pushes 4G Smartphone Through Verizon: The LG Spectrum
• Live: AT&T’s Vegas Act Stars LTE and, Making Her Return to the Stage, Nokia
• CES Notebook: The Constant Search for Power and Vegas’ Worst-kept Secret
• Belkin Bringing Mobile TV to Lots of Cellphones, Will Anyone Tune In?
• Acer Introduces “World’s Thinnest” Ultrabook and a “Me-Too” Cloud Service
• There Better Be Some Cool Stuff at CES, Because CE Holiday Sales Data Bytes!
• CES 2012: Snooki and Bieber Are In, Gaga Is Out!
• Coming to a Smartphone Near You: Gorilla Glass 2
• RIM Hopes Next PlayBook OS Will Impress at CES
• Ultrabooks, the Ultra-Fancy New Name for Laptops
• At CES, Expect More Gadgets Telling You to Get Off the Couch
• Intel to Detail Its Phone Plans at CES Next Month
• Microsoft Pulling Out of CES After Upcoming Show
• Intel to Detail Its Phone Plans at CES Next Month
• Dell Will Drop the Flashy Vegas Act for CES This Year
• Ultrabook Conga Line Preps for CES 2012

Let’s face it, there are plenty of places to read about Steve Ballmer’s CES keynote. And, if you wanted to, you could watch the whole darn thing.

But it’s probably not going to be worth your undivided attention. Fret not — we here at AllThingsD agree. So, here in Las Vegas, we’ve decided to combine Ina Fried’s live blog of the final Ballmer keynote with reports from Lauren Goode, who will be at an ESPN event checking out the BCS National Championship game — in 3-D.

That way, when Ballmer starts yammering on, we can check in on ‘Bama and LSU. And when the football game pauses for yet another five-minute instant replay, you can learn a little something about Windows 8 or Xbox.

And even if not much is happening at either one, count on Lauren and Ina to keep you entertained.

The festivities should kick off around the same time the football game does, at 5:30 pm PT, and keep going until the end of the fourth quarter — or longer, if Ballmer or the game goes into overtime.

5:21 pm: All right, folks. After some issues getting Wi-Fi in the Hilton Theater, I’m getting ready to liveblog the BCS game for you (with a hat tip to Engadget, who helped out with a Wi-Fi code).

(And this is Lauren, by the way, at the theater at the Las Vegas Hotel & Casino — formerly known as the Las Vegas Hilton, home to Elvis and Barry Manilow. Ina’s coming to you from the Microsoft keynote at the Venetian. We’ll be sure to ID ourselves along the way!)

Right now, some ESPN execs are talking about the “true 3-D experience” while we gear up for the game. So in the meantime, I’ll provide some context.

5:25 pm: Here’s what you need to know about this bowl game: 1. It’s Alabama versus LSU. They’re both very good. That’s why they’re in the championship. 2. Disclaimer: I know very little about college football. (I did play collegiate sports, but not football.) I will do my best to keep you posted on the developments of this game. 3. I’m told Tim Tebow will not be playing in this game, which confuses me, because I follow Twitter trending topics and he seems to be a shoo-in when it comes to football game days. 4. This game will be broadcast in 3-D!

Marchon has provided 3-D eyewear for the event. I’ve just put mine on. Big football players now look bigger. Midfield SkyCam hovering above coin toss right now.

And yes, I was joking about Tim Tebow. Sort of.

5:29 pm: So I’m also told — by guy friends who watch college football, as well as by sources close to Google search — that LSU has an incredibly fast team. LSU and Alabama were matched up earlier in the season; it was a low-scoring game, and LSU squeaked by with a W. In the meantime, though, ‘Bama’s offense has improved. Tonight’s should be an excellent game.

Side note: I wonder what Steve Ballmer looks like on a 3-D screen …

The Hilton Theater — which technically may not be the Hilton Theater anymore, since the hotel just changed its name — anyway, the theater is actually pretty full. Everyone is wearing their 3-D glasses. But remember, it’s early. The last time I watched a sporting event in a 3-D theater — hockey at Madison Square Garden — I noticed a lot of people removing their glasses and tiring of the screen by the second period.

5:34 pm: Update: I’ve just been told by ESPN PR that Wi-Fi is down in the whole building here. Just in time for CES!

5:37 pm: So far, of the 10 3-D cameras used in this telecast, the best viewing angles seem to be the ground-level views, especially the one from the sideline. That may be ESPN’s 3-D “Ultra Slo Motion” camera.

5:39 pm: Going to break, with LSU in possession of the ball. I was wondering whether the commercials would be in 3-D as well — and, in fact, they are.

5:41 pm: While we’re in a commercial break, a little info about the kind of 3-D glasses we’re all wearing: They’re known as “passive” lenses, as opposed to active-shutter 3-D glasses, which create the 3-D image by rapidly shuttering the left eye and then the right eye. Passive — a.k.a. polarized — 3-D glasses are cheaper, look a lot like sunglasses, and work by allowing different levels of light into each eye. Note that these are different from the anaglyph cardboard glasses you might have worn at the movies as a kid.

5:39 pm: Ina here. I’m having a quick chat with Nokia CEO Stephen Elop before the Ballmer-note begins.

Indeed, Nokia’s announcement of the Lumia 900 Windows Phone is one of the biggest CES goings-on for Microsoft.

Ballmer appeared twice today already to talk about it, first at AT&T’s event in the morning, and then, just a couple hours ago, at Nokia’s event.

5:43 pm: And we’re back. LSU has made a couple little mistakes here to start, according to the game announcers, but right now, all I’m seeing is a pig-pile of red and yellow uniforms around the 20-yard line.

5:47 pm: Just asked a fellow theatergoer what he thought of the 3-D. So far, so good, he said, but we both noticed that the line-of-scrimmage line at the first down — that yellow line you see move across the screen during football broadcasts — seems to be missing from this one.

Other graphic elements, though, like name chyrons and stat charts, really jump out in 3-D.

Ah, there’s the yellow augmented reality line on the field. But it’s less noticeable.

5:51 pm: Lauren again. Other tidbits about this 3-D game: It’s ESPN 3D’s 188th telecast overall, and 39th 3-D football game over two seasons. The commentary, however, is the same commentary the 2-D “normals” at home are hearing.

ESPN now touting X-Games in a 3-D commercial. Must admit: Snowboarding looks pretty great in 3-D.

5:56 pm: Alabama’s defense looking to squelch Jordan Jefferson. That’s what I can tell from this. (See how much I know about college football?) Alabama seemingly has learned a bit from last matchup.

Jordan Jefferson currently unavailable for comment on what he thinks of 3-D broadcast.

Yet another commercial. These guys get a lot of breaks. I mean, basketball players don’t stop every time they run up the court. Well, some of them do.

6:01 pm: Ooh, a flag thrown!

Doesn’t look any different in 3-D, though.

6:03 pm: Actual game update: LSU’s making a lot of mistakes. Someone on Alabama is currently sidelined with a hamstring injury. Alabama’s up 3-0, with about a minute left in the first quarter.

6:05 pm: First quarter concludes with quite a completion from Alabama, who have a 3-0 lead.

Now the announcers on TV are giving us a shout-out here at CES. Audience cheers — loudest cheers I’ve heard so far here today.

6:08 pm: A little more info about just some of the 3-D gadgetry used to broadcast this game:

There’s a SkyCam that carries both 3-D and 2-D cameras developed for ESPN 3D, a 3-D Ultra Slo Motion camera on a cart that moves along the sideline developed for ESPN 3D, three miniaturized handheld 3-D cameras, and a 3-D game camera on a 28-foot-high mast on a cart that moves along the sideline to stay close to the action.

6:09 pm: People are cheering! Something just happened! Some sort of fake-out, I think, in which Alabama ran the ball. That was crafty.

LSU is challenging the call, it seems. 3-D does not enhance challenged calls, FYI.

Aaaaand another commercial. I wonder how it’s going on Ina’s side, at the Microsoft keynote event.

6:16 pm: Alabama free throw blocked! I mean, field goal. Alabama was kicking.

6:17 pm: What I want to know is: Where are the vuvuzelas at these events?

6:21 pm: Just asked another attendee what he thinks of the 3-D. “Outstanding,” he said. (He also said he doesn’t work for ESPN, when I asked.)

6:26 pm: Lauren again. About nine minutes left in the second quarter, and no changes to the scoreboard.

Regarding my 3-D experience so far: The glasses I’m wearing are comfortable, and I don’t feel the urge to take them off yet. And I’m enjoying the 3-D, although despite the crisp RealD screen and cool depth of field from certain angles, there’s still something dizzying about some shots.

6:32 pm: Jeremy Shelley up to kick a 34-yard field goal … and it’s good!

Nice three-pointer from outside the perimeter! Or something.

Alabama’s now up 6-0.

6:35 pm: According to the announcers, Alabama gave up kickoff returns for touchdowns their past two games. This game is far from over. And it’s still very three-dimensional.

6:37 pm: Still Lauren here. Ina’s having some Wi-Fi issues from the Microsoft keynote event, so we’re going to try to keep you updated as best we can from there.

6:42 pm: ESPN now showing a quick Alabama highlight reel from 2010. Have to wonder whether that was 2-D content (likely) that’s been up-converted to 3-D. There must be a fair amount of old footage converted to 3-D on 3-D channels like ESPN and Discovery.

6:42 pm: Ina just sent an update from the Microsoft keynote: Ryan Seacrest is the event’s celebrity guest host. He’s worked with Bing in the past.

First Kim, Kourtney & Khloe, and now Kinect?

On the college football side, less than a minute left in the second quarter.

6:46 pm: :03 left before we head to the half. This time it’s a 42-yarder for ‘Bama’s Jeremy Shelley … and again, it’s good.

Fans waving multicolored pom-poms at 3-D camera, dizzying close-up, please, no, make it go away.

6:48 pm: At the Microsoft event, Ryan Seacrest has noted that he has to raise his voice — and chair — to be on level playing field with Ballmer.

6:48 pm: They are now talking Windows phone, Ina tells me. Ballmer holds up a phone and notes he has a missed call from Bill Gates.

“Call him back on speaker,” Seacrest quips.

6:50 pm: Ina here — been having lots of trouble connecting. Had to resort to sending iMessages to Lauren, but let me see if this works.

It’s packed here, by the way. They were turning folks away. I arrived a few minutes before the keynote with Nokia CEO Stephen Elop, and we were both initially rebuffed. (I’ll tell you later abut the phone conversation I had, asking if I could bring Stephen in to see the keynote.)

6:52 pm: Back to Ballmer, who is talking about Windows Phone’s partners.

He notes first Nokia phones coming to North America, with T-Mobile starting to sell the Lumia 710 and Rogers and Telus offering the Lumia 710 and 800 in Canada. (One is carrying one, and the other, the other, I think.)

Microsoft will also start selling the Nokia Lumia 800 unlocked in its stores.

6:54 pm: Halftime here at the (formerly) Hilton Theater. I’m now watching golf promos in 3-D. That little white ball isn’t any easier to see.

Of course Ballmer is really excited about the new LTE Windows Phones coming to AT&T — the HTC Titan II, with its 16 megapixel camera; and the Lumia 900, which is coming to AT&T, though no dates have been given for either.

“We’re clearly on the right track,” Ballmer said.

6:56 pm: Talk turning to Windows 8. Seacrest notes that Microsoft faces increasing competition there, clearly from Apple, though he didn’t use the A-word.

“Nothing better than good competition,” Ballmer said. “It’s a great thing, and I’m glad we’ve got Windows.”

6:56 pm: Lauren here. In terms of 3-D sports broadcasts, football may be a relatively easy sport to shoot and produce in 3-D, given all of the space on the field.

With hockey broadcasts, the NHL in the past has had to remove rows of seats in order to squeeze 3-D cameras in at the right angles. Same with basketball: I’ve been told that to shoot basketball games in 3-D, camera ops have to squeeze in at the corner angles next to the “regular” broadcast cameras, and in some instances the sideline “Jack Nicholson” seat gets blocked.

Back to Ina at Microsoft: But things have changed, Seacrest notes.

Of course, Ballmer says. Change is a constant. Ballmer promises Windows 8 will offer a no-compromises operating system with good battery life, performance, etc., etc.

By the way, one reason it is hard to get into the keynote is all the seats clearly taken up by Microsoft’s product teams. You can tell, because whenever a product or feature is mentioned, you hear loud cheers coming from one specific section of the room.

7:00 pm: We realize our posts are running together. We’ll work to be more clear about who’s who.

7:01 pm: Hey Lauren, what’s the score, by the way?

7:02 pm: Hey Ina! It’s 9-0, Alabama. Bunch of field goals. If these guys wanted to kick all day, why aren’t they playing soccer, is my question.

7:04 pm: How’s it going at Microsoft? I’d offer to switch, just so you could get a glimpse of the 3-D, but the cab lines at CES are so long you probably wouldn’t make it in time.

7:03 pm: Good question. Sorry I am missing it. We’re getting a demo of Windows 8 here, but it’s the same stuff we saw at the Build conference, and even at D9 before that.

It’s like watching last year’s BCS game.

7:07 pm: Ina, at last year’s Microsoft keynote ,you might remember they called upon the double-rainbow Internet meme. Here at the BCS game, the ESPN announcers are all about the Honey Badger meme. Oy.

7:12 pm: Lauren here. And we’re back from the half of the BCS championship game.

Third down at five! Not 100 percent sure what that means, but it seems like Alabama has come back from halftime with a vengeance.

7:16 pm: Jeremy Shelley with another field goal for Alabama. And I am increasingly convinced that this football game is soccer, and I don’t mean in that way that it is outside of the U.S.

7:17 pm: Meanwhile, from Microsoft, someone should throw a flag for delay of game. Ina’s having Wi-Fi issues again, but here are her updates …

Fortunately, or unfortunately, this is basically the same Windows 8 demo we’ve seen before.

Now, moving to stuff you can currently buy: Microsoft is showing an HP ultrabook and Samsung’s Series 9 laptop (Correction: We originally said it was a tablet).

7:20 pm: Lauren here. LSU has been all over the map, offensively. They’ve got the ball again now. Crowd thinned out about during halftime, but it looks like most people returned to their seats.

We’re all still wearing our 3-D glasses.

7:21 pm: Alabama’s defense wins first down again, just a few minutes into the third quarter.

7:24 pm: For boxing fans, if you’re curious about 3-D, and you’ve got 3-D capabilities at home: ESPN says it plans to televise Friday Night Fights in 3-D, live from the Hard Rock Hotel and Casino this Friday night. I won’t be here for that one. Um, darn.

7:26 pm: Back to Microsoft: There is an honest-to-goodness gospel choir, called the Tweet Choir, singing out what people have been tweeting about during the keynote.

Now the talk is moving to Xbox. And a new number: 18 million Kinect sensors shipped. Seacrest has asked Ballmer if he expected it to be where it is today when the company started.

Ballmer: “I was optimistic. I was bullish. I was patient.”

7:30 pm: ESPN announcer references “Honey Badger” again. This time, I figure out he’s talking about LSU’s Tyrann Mathieu.

7:33 pm: Ina here. Hey, Lauren, our worlds briefly collided: They demoed the ESPN app and showed the game. 12-0, huh?

7:34 pm: Microsoft is back to running laterally with a demo of voice search on Kinect — a feature that debuted last fall.

7:34 pm: Lauren here. Meanwhile, LSU and Jordan Jefferson literally give the ball away to ‘Bama. Mosely hurt by Jefferson’s tackle following the interception.

7:35 pm: At the Microsoft keynote, a few new partnerships are announced, including one with AllThingsD‘s parent, News Corp., which is bringing Fox, WSJ Live, IGN and Fox News Channel to Xbox.

More exciting to me (Ina), though, is a partnership with Sesame Workshop to make “Sesame Street” interactive.

In the demo, kids can throw coconuts to their favorite monsters, who then count them.

7:38 pm: Ina here. “Elmo’s World” is also made interactive, allowing kids to enter a crayon-drawn world. It’s coming later this year, Microsoft said, as are the News Corp. apps.

7:40 pm: This is just the beginning, Ballmer said, adding that Kinect will revolutionize far more entertainment.

Kinect is coming to Windows on Feb. 1, Ballmer announced.

7:42 pm: So, is that all Microsoft is up to? Seacrest has asked, handing off the ball to the Ballmer.

Not by a long shot, Ballmer says. He touts Ford’s Sync, Office, Skype. Bing, he notes, has reached 30 percent market share in the U.S., if you count Yahoo.

7:43 pm: Lauren here, back to the game. LSU is 0 for 6 on third downs, and that’s where they are right now. People are whooping. LSU down at the 17-yard line.

7:44 pm: At the Microsoft event, Ballmer is stressing that Windows 8 is what’s next. There is nothing more important at Microsoft, he says.

We’re at the two-minute warning, and Ballmer is running out the clock …

7:44 pm: And with that, we’re out. Microsoft keynote has wrapped.

7:45 pm: Here at the Hilton Theater, the score is 12-0 Alabama with about two-and-a-half minutes left in the third.

And Alabama’s got a first down at the 36.

7:46 pm: Lauren again. I’m going to keep the liveblog going until this game has wrapped.

7:49 pm: Another field goal for Alabama, with their go-to guy Shelley getting ready to kick. These really are happening as frequently as free throws, it seems. This time, it’s a 44-yarder. And it’s good.

I bet Jeremy Shelley was always picked first for kickball as a kid.

I wonder why there isn’t a 3-D camera from behind the goal posts, instead of in front of it. The pigskin might look cooler as it’s flying toward the crowd.

7:51 pm: Score update: 15-0, with Alabama in the lead and 20 seconds left in the third quarter. LSU’s got to turn up the fire. They need Steve Ballmer screaming in their faces, maybe.

7:53 pm: What did you guys think of the news, and non-news, from the Microsoft keynote? Leave your thoughts in the comments below!

7:56 pm: Fourth quarter has kicked off. Amazingly, no one has fouled out or gotten a technical yet.

7:58 pm: When is Ryan Seacrest going to show up at the Hilton Theater to help promote 3-D? I’d welcome a Justin Timberlake appearance, too — he was part of an earlier announcement today from Myspace and Panasonic (my colleague Peter Kafka has the story on that.)

8:03 pm: Man sitting next to me just told me me he has a 3-D TV at home. Pretty sure I looked at him like he has wings and a magical horn sprouting from his forehead.

Back to the game: Alabama is getting pumped up. I know this because there’s lots of chest-bumping. Time is ebbing away — with 9:44 left in the fourth quarter — and ‘Bama’s defense is stopping LSU in its tracks.

8:08 pm: LSU’s Jefferson shows some spark — crossing the 50 for the first time today.

LSU needs touchdowns. Badly. About 6:30 left in the fourth quarter.

A Hail Mary pass to Landry, but it’s a miss.

8:13 pm: Pigskin loose on the field! (Jump ball?)

8:15 pm: Another shout-out from ESPN announcers to us folks in Las Vegas who are watching this in 3-D. Now ESPN is showing us still images in 3-D. Some are rendering the effects better than others.

8:17 pm: If Alabama wins this one — and it’s looking this way — it’s the first shutout in any BCS bowl championship game.

Second down, with Alabama working on the clock now. About six minutes left in the game.

8:20 pm: Alabama runs it into the end zone for a 34-yard touchdown!

Alabama up 21-0 now, four-and-a-half minutes to go.

8:21 pm: Jeremy Shelley misses the field goal this time. I’d still pick him first for kickball.

Readers, any questions about the 3-D broadcast? Any comments? Leave your remarks in comments below.

8:23 pm: All right, we’re winding down our FootBallmer dual-blog. LSU rushing down the field, but it’s almost futile.

8:26 pm: Announcer just said Jordan Jefferson has been made invisible this game. Now that’s the technology we should talk about. Where’s their booth at CES?

There are still a good amount of 3-D viewers here in the Hilton Theater, but it’s hard to know whether that’s for the game, or for the free beer and food.

There are about two minutes left. And ‘Bama’s got it in the bag.

8:29 pm: Final thoughts on the BCS championship series game: I’m still wearing the glasses. They’re not irritating, but I’m also in a dark theater, and not in my living room. The 3-D broadcast provided some interesting depth of field from some angles, while others were a bit of a strain on the eyes.

Alabama wins the BCS championship, behind coach Nick Saban and the young AJ McCarron.

Final score: 21-0.

8:34 pm: There’s the essential Gatorade dumping over the coach, this time in 3-D. Alabama celebrates, and the theater here is thinning out. I’m still wondering where the vuvuzelas are. And that Tim Tebow guy.

Until next time …

The drop-off in players affected almost all developers, but did not hit all titles equally.

For example, Electronic Arts saw 1.2 million fewer monthly users over the past week for its top title The Sims Social; Zynga’s Empire & Allies game lost one million monthly users, and its newest game, CastleVille, lost 900,000, according to AppData, which publishes such information.

On the flip side, many of the games that performed well were old favorites; these logically would have longer-term, more-committed players, who would make a point of returning during the holidays to take advantage of seasonal promotions.

The games that benefited from the holidays include Zynga’s Words With Friends and FarmVille, which gained 1.3 million and 800,000 monthly active users, respectively, according to Inside Social Games. Other gainers rounding out the Top 5 were Tetris Online’s Tetris Battle; Wooga’s kingdom-building game, Magic Land; and Men vs. Women, a role-playing game by Social Point.

Still, the general direction for the week was heading down.

That contrasts with other game platforms, such as consoles, PCs and mobile, which largely benefit from the holidays and from more free time in general.

Console games often skyrocket in popularity as kids and adults unwrap new titles for Nintendo, Xbox or PlayStation on Christmas morning.

PC gaming also typically surges during the season. EA timed the launch of Star Wars: The Old Republic ahead of the holidays, in hopes of drawing new players who would be sold on sticking around for months, after spending time on the game during their time off.

But perhaps the biggest competitor came from mobile, which benefited from breaking records for the number of new Android and iOS devices that were gifted during the holidays. Flurry reported that more than one billion apps were downloaded worldwide during the last seven days of 2011, breaking the all-time weekly record. Games are often one of the most-downloaded categories of apps.

So the more important question to ask is, why would Facebook be an exception, if other platforms performed well?

Clearly, all of the platforms are competing for a limited number of minutes in the day, and so are other forms of media, like the Internet, TV and the movies. But when it comes to Facebook, a larger driver may be the environment — after all, it’s no big secret that a lot of social networking and social gaming is done in the workplace.

In a study conducted last summer, advertising agency Saatchi & Saatchi found that 47 percent of respondents said they play social games at work during a typical day, and that 28 percent play for at least 30 minutes. Without that dedicated time in front of the computer every day, people may have had the opportunity to be more obsessed with other screens, such as phones or TVs.

Another potential reason that Facebook and social games did not see a lift from the holidays is because they have not yet figured out how to capitalize on the Christmas economy.

For years, console games have been timed with the end of the year, so they could be wrapped up and placed under the tree. More recently, smartphones and gift cards for music and apps have helped mobile prosper. Perhaps there wasn’t enough hype and promotion for social games to compete for people’s dollars.

Regardless of the reasons, the drop may ultimately be a small a blip on the radar screen for most game developers, who also see several spikes in activity during the year.

The bigger impact may be felt at Facebook, which takes a 30 percent cut of all virtual goods sold inside social games, and would feel the cumulative impact across all of the games.

An expected software update on a slow day at the end of December is hardly big breaking news. But for start-up company Boxee, it signals a shift away from its software for PC browsers and a focus on Internet-connected TVs: The company says version 1.5 of the software will be its last Boxee update for PCs, Ubuntu and Mac computers.

It will be launched along with a Live TV dongle for the Boxee Box later in January.

Version 1.5 of the downloadable software on the Web will include better file support, a new onscreen display, search functionality, HTML5 WebKit-based browser, and will support multiple languages. It will run on Windows XP, Windows Vista, Windows 7 (32 bit and 64 bit), Mac OS X 10.6 and higher, Linux Ubuntu 11.10, and will be available on Boxee.tv through the end of January.

And for those who would rather develop their own software for Boxee: The company is also releasing an open source version of its software.

The update won’t, however, offer PC users access to the same apps that are available on the Box, such as Netflix, Pandora and VUDU.

Boxee first launched in January 2010 as a Web application for watching Internet video online. In November 2010, it launched its awaited Boxee Box device, which came with a nifty Qwerty-style remote and offered a variety of apps — but it launched amid a growing market of Internet-connected TV boxes, including Apple TV, Google TV, Microsoft’s Xbox and the competitively-priced Roku box. At the time of the Boxee’s hardware launch, about 1.5 million people were using the Boxee software.

Boxee explained its shift away from Web software by saying it believes the future of TV will be driven by Internet-connected boxes, connected TVs and second screen devices like tablets. “While there are still many users who have computers connected to their TVs, we believe this use case is likely to decline as users find better alternatives,” Boxee wrote.

The company also said that the lack of premium apps on the downloadable version of Boxee was due to extensive DRM and certification requirements.

That’s in spite of Zynga, the rising star of social gaming, garnering much of the media’s attention last week, when it raised $1 billion in its initial public offering.

In November, Nintendo’s portable handheld, the 3DS, had its biggest single month of sales, representing an increase of more than 215 percent over the previous month; it has now sold nearly 2.5 million units since launch.

The Wii had its biggest Black Friday ever, with more than 520,000 units sold — six years into the console’s life.

The Japanese company also set a software record. Super Mario 3D Land, which was released Nov. 11, is now the fastest-selling portable Super Mario title in U.S. history, and Mario Kart 7 was the fastest-selling Mario Kart game.

In an interview with AllThingsD at the company’s U.S. headquarters in Redmond, Wash., Nintendo’s North America President Reggie Fils-Aime explained what’s driving strong holiday U.S. sales this year, and what’s on the horizon for the maker of games and hardware.

He also left the door wide open for Nintendo to experiment with new business models, including free-to-play or subscription, although he questioned the long-term prospects of social gaming companies, like Zynga.

Here’s an abbreviated version of our chat:

AllThingsD: It seems videogame sales this holiday kicked off with a bang.

Reggie Fils-Aime: We had a strong Black Friday for both our Wii and 3DS business.

The time frame from mid-November until the end of the year is critically important to us, and is driven by a number of software and hardware initiatives.

For the 3DS, we launched Super Mario 3D Land in November. It had the fastest sell-through for a handheld Super Mario game. That gave us a lot of momentum going into Black Friday, and right after Black Friday, we launched Mario Kart 7, which ended up being the fastest-selling Mario Kart, as well.

Together, that propelled our 3DS business. We’ve sold through more 3DS’s in eight months time than the original DS sold in the first 12 months. Our handheld business has a lot of momentum right now.

But it took awhile to get there?

What’s interesting is that we had a very good launch. The first week sales [of the 3DS] were fantastic. The initial rush of sales was really strong. But what happened after that in the spring and early summer time frame is — that’s when sales slowed down a little bit.

It was driven by not having great first-party software, and we were late in bringing some of the online functionality to the 3DS, and that’s when sales began to fall.

That’s when we took drastic action to reduce the price, right after the launch of The Legend of Zelda: Ocarina of Time 3D. Our bet was to regain momentum and make the holidays strong. We are having a strong holiday.

A lot of retailers were concerned that we would see a Black Friday rush and then things would trail off after that. Is that what you are seeing?

We haven’t seen that. We have seen things accelerate as we’ve gotten closer to Christmas Day itself. We are anticipating this week, across all of our businesses, will be the strongest sell-through week of the year.

What about the Wii?

The Wii had a strong Black Friday, too, driven by strong retailer promotions. This was our sixth Black Friday, and it was the best Black Friday week we’ve seen to date, so we’ve had very positive results.

It’s driven by software, and in this case, a new Legend of Zelda: Skyward Sword. It’s a game that’s been recognized by the gaming press to be one of the best games of the year.

The momentum continues for our Wii business, and sales are right on objective.

How does it continue to break records six years in? That’s baffling.

It’s because, even today, the Wii provides a family experience that you can’t get anywhere else. I love the stories I hear of grandparents playing with parents and with the grandkids.

Those are experiences that you can’t get elsewhere. That’s why we continue to break records. Plus, this holiday is the first holiday that it’s available for $149 or below. It’s reaching a whole new demographic that’s wanted to buy in, but couldn’t do it before.

And for consumers, there’s over 1,000 games that have been published, so the breadth of the gaming experience is extremely wide. The Wii continues to be the fastest-selling home console ever in the history of the gaming industry in the U.S.

Does that change as we get closer to the next-generation console, the Wii U?

The market is going to continue to differentiate based on the types of experiences that consumers want. As an example, if I’m the head of a household of a family of four, and my disposable income is $50,000 to $60,000, I’m going to continue to look at the Wii because of the software, and it’s a great entertainment device. For consumers who want to have the latest gadgets and have a higher disposable income, that’s for the Wii U.

We haven’t announced pricing or availability or any other details, but given the current pricing of the Wii, it’s not going to be there.

We’ve been very clear, the market is going to decide how long these products will coexist side by side. Our goal is to launch the Wii U and drive it into the marketplace, but it will speak to a different consumer than the one that is buying the Wii today during the holidays.

What about the other consoles? Both Sony’s PlayStation and Microsoft’s Xbox are about the same age.

All of the competitors haven’t talked about what’s next for them, and given the investments they’ve made in their technologies, for them to move to new systems — at least on the same timing we want to move at — would probably be pretty challenging. But in terms of what they are going to do, when they are going to do it, you’ll have to talk to them.

What do you think of Microsoft’s move to make the Xbox the entertainment hub of the living room?

In the end, the consumer decides what equipment to have in the living room. The interesting thing we’ve found — because of the family entertainment we provide, and the inclusion of Netflix — the vast majority of Wiis are set up on the main TV in the living room.

Are you considering adding more content like live TV or movies?

If the consumer wants live TV, they can get it through the options they have today. We always ask the question, ‘What can we do that’s new and provocative?’ And we will continue to think of new and provocative experiences for the user.

I’ve spent the past week covering Zynga’s IPO. What’s your perspective on social gaming?

What’s the share price? It will be interesting when it breaks below $9 … I have a couple of thoughts on social gaming.

Consumers want to be entertained in a variety of ways, like watching TV or reading a book. The thing about entertainment — as consumers have a range of experiences — their desires for what’s new continues to be pushed out. So delivering the same experience all the time … consumers will move on.

So when I look at gaming experiences on social networks, there’s a variety of entertainment value. Some are strong, some are not. But in the end, how will they evolve? Doing the same thing over and over again is no longer fine.

Is that really fair when you have Mario Kart 7 coming out?

We continue to evolve the experience by providing a level of customization that’s new, or different ways to race with a sail and a propeller that allows you to drift under water. What we’ve done with Mario Kart 7, for some of the tracks, you can actually win when you go off the track, which never existed before. We’ve continued to make it more fun and add more enjoyment for the consumer.

You don’t see that innovation happening in social gaming?

The companies that will win in the social gaming space need to show an ability to provide the new and different experiences, and a way to monetize it. In the end, these are businesses that need to make money.

Is that your comment on the free-to-play model? Will you experiment with free-to-play?

I have two comments on that.

First, we make games for Nintendo devices, and that is a competitive advantage for us. You can only play Mario on a Nintendo device, so from that standpoint, I wouldn’t expect to see our franchises on other platforms, and I would argue Facebook is a platform.

My second point, on whether we will experiment with other forms of monetization?

Certainly.

How that comes about, or which ones we do first, that’s all experimentation that’s going on right now in our various studios.