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Just 'Cause We're Monopolists Doesn't Mean We're Not "Street"...
Electronics | Oct 27, 06
Recent reports that ultra-hip music site Pitchfork turned down a Microsoft overture to form a Zune-promoting alliance highlight a key challenge the software firm faces in challenging the iPod: its hard to be cool when you're a corporate behemoth with a death grip on the operating system market.
Apple gets a pass here because a) it long ago screwed up its own plans to subjugate the computer industry, and b) the company's current efforts to control content distribution are forgiven in light of the fact that iPods are just so darn neat. And there's always been something about that Apple logo that says "hey, we're just ex-hippies trying to stick it to the man" (just like the Beatles' label of the same name – you remember when these two nonconformist icons retained white-shoed corporate counsel so they could engage in multi-million dollar trademark litigation).
Now Microsoft seeks to seduce the world's youth into accepting the Zune's DRM-throttled vision of music-sharing (see "The Zune: Microsoft's Little Brown Lump Of DRM-Enforcing Digital Joy"). They may be forgetting more than the fact that many young people don't live to beam limited play promos to each other so they can shill for major labels. At the end of the day, Microsoft has been most successful when it can leverage its control of the operating system to gain dominance in other markets and thus crush early innovators (e.g. Netscape and the Apple of yore). If Redmond finds a way to integrate its content sales directly into Vista, for example, then iTunes could actually face its first serious rival. Now given the iPod's lock-in effect (consider all the cars out there with iPod-proprietary docks) knocking Jobs off his throne is a very tall order. But he more than anyone should know how dangerous Microsoft can be when it kicks off its Birkenstocks and gets in touch with its inner Death Star.
Posted by jeffrey.trester at 5:22 AM | Comments (0) | TrackBack
Media Center Peace Initiative In Blu-Ray Vs. HD-DVD War
Electronics | Oct 21, 06
In another attempt to allow consumers to rise above the petty strife of the high-def disk player wars, VidaBox LLC has introduced two new media centers with the capacity to play both Blu-ray and HD-DVD disks.
Now this comes hard on the heals of a patent application for dual-format HD disks (see "Could Multi-Format Disks Allow Blu-ray and HD-DVD To Peacefully Coexist?"). The good news for early adapters is that by going dual-mode they can reduce the risk of investing in a losing technology (both standards could still fail to catch on, of course). Dual capability may accelerate HD disk acceptance yet early adaptation is often costly, and dual-mode alternatives are likely to further increase expense. VidaBox's machines are no exception; the LUX starts at $3,499 and the MAX starts at $4,399. To be sure, the firm's new LUX and MAX Dual HD systems combine their ecumenical approach to HD standards with a suite of sophisticated features. These include 7950GT video cards and up to 3000 and 3750 GB of storage, respectively. There's also dual analog and dual HDTV tuners for up to four-show simultaneous recording (I have trouble finding one interesting show to watch) and the availability of AMD 4600+ dual processors.
Now unlike dual-mode disks, dual-mode players do not increase costs for content providers, so there's no extra content expense to be past on to consumers. If dual players become available at more mass-market-friendly prices, the Blu-ray and HD-DVD consortiums could each choose to pump out their content in their chosen format, knowing a broad audience can access both. And if Blu-ray and HD-DVD disk creation prove to have similar cost structures (and equally attractive content) then maybe, just maybe, the single victor "lock-in" effect can be postponed, perhaps even indefinitely.
But as even a small price edge can result, over time, in great competitive advantage, such multi-standard equilibria can be difficult to attain. Meanwhile, if you've got the cash, it seems you can buy your way out of the Blu-ray/HD-DVD dilemma.
Posted by jeffrey.trester at 10:25 PM | Comments (0) | TrackBack
Creative To Customers: Give Back That FM Recording Feature
Electronics | Oct 18, 06
So reports have Creative's latest firmware update disabling FM radio recording functionality for two products in the firm's Zen line. Apparently Creative caved into pressure from the RIAA, which has now set its sights on reigning in MP3 broadcast recording.
Content creators fought similar battles against the VCR and cassette recorders, resulting in blank tape fee payments to those firms. Perhaps a similar mechanism can be worked out for MP3s on a per recorder basis, but for the moment the fees per song demanded by the RIAA are said to have been prohibitive. Meanwhile, any owner of the Creative Zen Vision M or Zen MicroPhoto who chooses to download this update faces the loss of a feature offered when the item was sold – one wonders what the class action implications of this are. And while we contemplate this, there's also the issue of products from iRiver (such as the H320 and H340), SanDisk (e.g. the Sansa e280R) and others that record off the air. Some court decisions have upheld various fair use rights for broadcast recording. Those of us who care about those rights are left to hope that manufacturers (and consumer advocacy groups) either cut a deal allowing MP3 recording or else have the stomach for a fight that could go all the way to the Supremes.
Posted by jeffrey.trester at 7:29 PM | Comments (0) | TrackBack
Does Nintendo Have A Wii Pre-Sale Supply Problem?
Video Games | Oct 16, 06
We're hearing persistent rumors regarding limited pre-sale availability of Nintendo's new Wii console. Specifically, many vendors are said to have either very small allotments for pre-sale, or else no pre-sale availability whatsoever.
When difficulties with Blu-ray high def technology caused Sony to announce reduced initial production of the PSP3, I speculated that this issue, the high price point of the PSP3 and Wii's advanced features and could give Nintendo a leg up going into the holiday season (see "But If We Made Too Many PlayStations, They Wouldn't Be As Cool"). But if the Wii has availability issues of its own, the competitive advantage would appear to accrue to Microsoft's Xbox by default. Of course it's not like Redmond has ever capitalized on the poor execution of rivals with arguably superior technology. Not unless you count IBM. And Apple. And Netscape. And then there's 3Com. Oh, and, Real Networks...
Posted by jeffrey.trester at 7:02 PM | Comments (0) | TrackBack
Could Multi-Format Disks Allow Blu-ray and HD-DVD To Peacefully Coexist?
Electronics | Oct 6, 06
The battle between Sony's Blu-ray and Toshiba's HD-DVD high-definition digital recording formats has seen manufacturers and content providers lining up in shifting alliances. I've commented before on the potential for a "lock-in" effect favoring one standard over the other, similar to the one that allowed VHS to eclipse Betamax in the VCR wars of old (see "Can Wintel Make Blu-ray The Next Betamax?" and "Blue-Ray Vs. HD-DVD: Lock-In, Co-Existence, Or Irrelevance?"). But now some folks at Time Warner seem to be saying to their fellow HD warlords: "Can't we all just get along?"
The New Scientist's website and the Wall Street Journal recently reported an application from employees of Warmer Bros. for a patent on disks that can simultaneously accommodate recordings in Blue-ray, HD-DVD and standard DVD formats (the data is encoded in layers at different depths in the disk). Content providers could thus release their product in all formats on a single disk, and they have significant reasons for wanting to do so. By eliminating the need for a buyer to bet on a format, offering content on a multi-format disk removes a significant deterrent to making a purchase and trying one of the HD formats. Further, current DVD users could buy and use one of these disks and decide later to adopt one (or both) of the new formats.
So does this mean all will be sweetness and light in HD land? Much of this will depend on the cost of multi-format disks relative to single format ones. To the extent that studios can pass on the higher costs of multi-format to buyers, the new disks could ameliorate the lock-in effect. But if few consumers are willing to pay a premium for flexibility, multi-format will not fly and the market might be forced to choose a winner. For at least one of the format alliances, the inability to give peace a chance could mean a great deal of pain.
Posted by jeffrey.trester at 6:32 PM | Comments (0) | TrackBack
