The following blog post is intended to be the first of many, in a reoccurring segment where we summarize the top tech stories of the week. This week, we discuss the insecurities of the Xbox 360, the true leader in digital movie content, the awakening of Yahoo and what it means for its employees, the ever opinionated Mark Cuban, the first thoughts on the MacBook Air, and the $1 cup of coffee.
Early in the week, 8bitjoystick.com released an interview with a Microsoft insider, whom contributed to the creation of the Xbox 360. In the interview, the insider reveals that Microsoft's 360 team was under-resourced, under-experienced, and under-staffed. M$ was in such a hurry to beat Sony and the PS3 out the gate, that they ignored recognized design flaws and skimped on quality testing. There are many factors that can contribute to the all elusive Red Rings of Death, and although it will most likely occur early in the products life cycle, it can happen at any time. The failure rate of the console has dropped from around 30% for the earliest iterations, to around 10% for the current design, thanks to smaller and more heat efficient processors. The insider was also kind enough to inform us that the external cooling fans only make matters worse, and that Microsoft is already working on the next generation Xbox. Please Microsoft, don't rush!
PC World ran an article comparing the sales of Blu-Ray and HD DVD, now that Blu-Ray has gained (re: bought) a huge majority of studio exclusivity. Author, Melissa Perenson points out the fact that Blu-Ray has always out-sold HD DVD, almost at a 2-1 ratio, and that only further motivated studios to jump on the Blu-Ray bandwagon. What Melissa failed to mention (though MacDailyNews did for her), was that digital downloads of movies, more specifically those of the iTunes variety, outsold both high definition formats. Despite the near DVD quality of the iTunes movies, Apple sold three times as many movies as HD DVD titles, and one million more than Blu-Ray in two months less. One could only imagine that integer will increase as Apple moves towards movie rentals and takes 2 with the appleTV.
While on the topic of Apple and digital content, it appears that Apple and NBC/Universal are starting to cozy up to one another again. Last Summer, the two corporations had a falling out over Apple's television show distribution model, and their unwillingness to budge in terms of variable pricing. Earlier this week, Financial Times published an interview with Jeff Zucker, chief executive of NBC/Universal. In the interview, Jeff discusses how NBC is getting along quite well during the writers strike, due to viewer fascination with cost-effective reality shows. When asked about their relation with Apple, Jeff responded by stating that they admire Apple, and want to be in business with them; they are "great fan's of Steve Jobs". On the other side of the fence, Business Week posted an interview with Steve Jobs, where the founder of Apple predicts that their stalemate with NBC/Universal "won't last forever", and they'll "put it back together on the TV thing." Apparently both companies realized how much they need each other, as NBC's television shows made up for 40% of all shows sold on the iTunes store. Since departing, NBC has done very poorly on the digital content distribution, as witnessed by the sub par Hulu.com.
Meanwhile, it appears that Yahoo is beginning to see the light and realize that throwing money around aimlessly will not get them ahead of their rival, Google. The New York Times reports that Yahoo is expected to lay-off hundreds of employees in an attempt to bounce back financially and reassess their focus. The total number of employees has not been determined, but Yahoo stated that they plan to invest in some areas while reducing emphasis in others. The timing couldn't be better for the company, as their stocks are reaching new lows, and Google is slipping further ahead. The last time Yahoo had sizable lay-offs was during the dot-com crash of 2001.
Never one to hold his tongue, Dallas Mavericks owner, Mark Cuban has posted a blog on Cnet.com, expressing his opinion on the current state and trends of music sales. Mark controversally states that the album is dead and musicians should rethink their distribution model. In today's digital age, consumers are more willing to spend 99 cents a week for 10 weeks, as opposed to $10 at one time. We have become accustomed to the ability of choosing which tracks from an album we would like to purchase. With this philosophy, artists should focus on releasing individual tracks on a weekly or bi-weekly basis, while benefiting from a subscription-like model. Cnet's own Steve Guttenberg pleads with musicians not to follow this path, as it threatens to break the tradition that has helped make music what it is today. Nobody would have dared to buy Sgt. Pepper's Lonely Hearts Club Band one track at a time.
It has only been one week after the always eyebrow-raising Macworld, and the first round of reviews of the MacBook Air are starting to creep in. Journalists at the nations top publications were amongst the few who were blessed with early release units. Reviewers consisted of The Wall Street Journal's, Walt Mossberg, USA Today's, Ed Baig, and Newsweek's, Steven Levy. Apple Insider does a good job of summarizing the opinions, which are generally agreed on amongst the reviewers. The MacBook Air is elegant and a pleasure to use. The display is wonderful, and the keyboard is no slouch. However, overall the reviewers were turned off by the MacBook Air's limitations. The lack of external ports requires you to carry around extra hubs and adapters, thus contradicting the goal of portability. The Remote Disc works well, but is still limited enough to where you will need to purchase the additional usb optical drive. The battery life is acceptable, but not near what Apple touted. As fashionable as the MacBook Air may be, Apple seems to have missed the mark this time around. In today's depressing economy, who is willing to invest in this elegance?
Though America's favorite drink may not necessarily be tech related, it does go hand in hand. Starbucks, the company made synonymous with the $4 cup of Joe, is now offering a $1 cup of coffee, as well as free refills of some of its current offering's. The Wall Street Journal reports that the coffee giant is experimenting with this new idea in select locations in the Seattle area. The new low-cost offerings are believed to be a strategic move against McDonalds, whom wants in on Starbuck's market grip. There is always only one clear winner in the battle of corporate giants, the consumer.
PC World ran an article comparing the sales of Blu-Ray and HD DVD, now that Blu-Ray has gained (re: bought) a huge majority of studio exclusivity. Author, Melissa Perenson points out the fact that Blu-Ray has always out-sold HD DVD, almost at a 2-1 ratio, and that only further motivated studios to jump on the Blu-Ray bandwagon. What Melissa failed to mention (though MacDailyNews did for her), was that digital downloads of movies, more specifically those of the iTunes variety, outsold both high definition formats. Despite the near DVD quality of the iTunes movies, Apple sold three times as many movies as HD DVD titles, and one million more than Blu-Ray in two months less. One could only imagine that integer will increase as Apple moves towards movie rentals and takes 2 with the appleTV.
While on the topic of Apple and digital content, it appears that Apple and NBC/Universal are starting to cozy up to one another again. Last Summer, the two corporations had a falling out over Apple's television show distribution model, and their unwillingness to budge in terms of variable pricing. Earlier this week, Financial Times published an interview with Jeff Zucker, chief executive of NBC/Universal. In the interview, Jeff discusses how NBC is getting along quite well during the writers strike, due to viewer fascination with cost-effective reality shows. When asked about their relation with Apple, Jeff responded by stating that they admire Apple, and want to be in business with them; they are "great fan's of Steve Jobs". On the other side of the fence, Business Week posted an interview with Steve Jobs, where the founder of Apple predicts that their stalemate with NBC/Universal "won't last forever", and they'll "put it back together on the TV thing." Apparently both companies realized how much they need each other, as NBC's television shows made up for 40% of all shows sold on the iTunes store. Since departing, NBC has done very poorly on the digital content distribution, as witnessed by the sub par Hulu.com.
Meanwhile, it appears that Yahoo is beginning to see the light and realize that throwing money around aimlessly will not get them ahead of their rival, Google. The New York Times reports that Yahoo is expected to lay-off hundreds of employees in an attempt to bounce back financially and reassess their focus. The total number of employees has not been determined, but Yahoo stated that they plan to invest in some areas while reducing emphasis in others. The timing couldn't be better for the company, as their stocks are reaching new lows, and Google is slipping further ahead. The last time Yahoo had sizable lay-offs was during the dot-com crash of 2001.
Never one to hold his tongue, Dallas Mavericks owner, Mark Cuban has posted a blog on Cnet.com, expressing his opinion on the current state and trends of music sales. Mark controversally states that the album is dead and musicians should rethink their distribution model. In today's digital age, consumers are more willing to spend 99 cents a week for 10 weeks, as opposed to $10 at one time. We have become accustomed to the ability of choosing which tracks from an album we would like to purchase. With this philosophy, artists should focus on releasing individual tracks on a weekly or bi-weekly basis, while benefiting from a subscription-like model. Cnet's own Steve Guttenberg pleads with musicians not to follow this path, as it threatens to break the tradition that has helped make music what it is today. Nobody would have dared to buy Sgt. Pepper's Lonely Hearts Club Band one track at a time.
It has only been one week after the always eyebrow-raising Macworld, and the first round of reviews of the MacBook Air are starting to creep in. Journalists at the nations top publications were amongst the few who were blessed with early release units. Reviewers consisted of The Wall Street Journal's, Walt Mossberg, USA Today's, Ed Baig, and Newsweek's, Steven Levy. Apple Insider does a good job of summarizing the opinions, which are generally agreed on amongst the reviewers. The MacBook Air is elegant and a pleasure to use. The display is wonderful, and the keyboard is no slouch. However, overall the reviewers were turned off by the MacBook Air's limitations. The lack of external ports requires you to carry around extra hubs and adapters, thus contradicting the goal of portability. The Remote Disc works well, but is still limited enough to where you will need to purchase the additional usb optical drive. The battery life is acceptable, but not near what Apple touted. As fashionable as the MacBook Air may be, Apple seems to have missed the mark this time around. In today's depressing economy, who is willing to invest in this elegance?
Though America's favorite drink may not necessarily be tech related, it does go hand in hand. Starbucks, the company made synonymous with the $4 cup of Joe, is now offering a $1 cup of coffee, as well as free refills of some of its current offering's. The Wall Street Journal reports that the coffee giant is experimenting with this new idea in select locations in the Seattle area. The new low-cost offerings are believed to be a strategic move against McDonalds, whom wants in on Starbuck's market grip. There is always only one clear winner in the battle of corporate giants, the consumer.
