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Microsoft Issues First Details of Next-Generation Xbox

Authored by Mark Hefflinger on March 9, 2005 - 5:26am.
San Francisco -- Microsoft on Wednesday provided the first public details of its next-generation Xbox video game console at the Game Developers Conference in San Francisco, focusing on the device's support for high-definition (HD) content. The next Xbox will deliver more than a teraflop of computing power through a processor co-developed with IBM and graphics processor co-developed with ATI Technologies, which will enable high-definition graphics, multichannel audio, richer online communications and more on-demand game content. Microsoft's second crack at a video game console will include the Xbox Guide, an entertainment gateway that will feature personalized "gamer card" profiles for Xbox Live users; a marketplace for gamers to purchase small content items as micro-transactions; and custom playlists so gamers can listen to their own tracks while gaming instead of an in-game soundtrack.

Justice Dept. Announces 3 Convictions for Internet Game, Software Piracy

Authored by Mark Hefflinger on March 9, 2005 - 5:24am.
Washington -- The U.S. Justice Dept. has announced that three men have pleaded guilty to criminal copyright infringement charges as a result of an 18-month games and software piracy investigation, "Operation Higher Education," that spanned 12 countries. The three admitted to having leadership roles in online piracy or "warez" groups Fairlight and Kalisto, which cracked security on video game titles and other software and then posted downloadable versions of titles on IRC and peer-to-peer file-sharing networks. Seth Kleinberg, 26, of Pasadena, California faces up to 10 years in prison, while Jeffrey Lerman, 20, of College Park, Maryland and Albert Bryndzda, 32, of Flushing, New York both may be sentenced to up to five years in prison. The Justice Dept. said Operation Higher Education is part of its larger "Operation Fastlink," which has so far yielded 70 "high-level targets" and a total of six convictions since it was launched in April 2004. Separately, Attorney General Albertro Gonzales on Wednesday named Kyle Sampson, deputy chief of staff and counselor to the Attorney General, as the new chairman of the the Justice Department's Task Force on Intellectual Property, created to protect "the creativity, resourcefulness, and innovation of Americans and to curb the threat that intellectual property crimes pose to the nation’s economic security."

Voom HD Satellite TV Service Gets Shutdown Reprieve Until March 31

Authored by Mark Hefflinger on March 9, 2005 - 5:21am.
Bethpage, N.Y. -- The Voom high-definition satellite TV service got a new lease on life Wednesday, as owner cable TV operator parent company Cablevision announced an interim agreement to allow Voom to continue operations until March 31, while Cablevision chairman Charles Dolan and his son, Cablevision CEO Thomas Dolan, seek a means to avoid a shutdown. Cablevision sold its Rainbow DBS service, including the satellite that transmits Voom, to DISH Network parent EchoStar last month. The elder Dolan has since been attempting to save Voom and its 46,000 subscribers through a purchase of the company's assets; under the new deal, Charles Dolan will assume any costs incurred by Rainbow DBS above what it would pay to shut Voom down.

WSJ: AOL to Launch Internet Phone Service Within Month

Authored by Mark Hefflinger on March 9, 2005 - 5:18am.
Dulles, Va. -- Looking to get in on a rapidly expanding market, America Online plans to launch a new Internet phone service within a month, The Wall Street Journal reported on Wednesday. The company, which had been expected by most analysts to enter the market, initially will offer service in 44 markets. The Journal reported that the company's pricing will likely be similar to that of Vonage, which offers unlimited domestic calling for $24.99 a month. Vonage recently became the first broadband telephony provider to activate more than 500,000 lines. With 22 million Internet subscribers already in tow, however, AOL will have the potential to dwarf that number. The Yankee Group has said that it expects 2.8 million Internet telephone users by the end of this year. AOL's service will be powered by Level 3 Communications and Sonus Networks.

Virgin Electronics Shuts Down, Less Than Year After Launch

Authored by Mark Hefflinger on March 9, 2005 - 5:14am.
launched less than a year ago to sell portable digital music players and other consumer electronics, has shut down after failing to receive additional funding from the parent company, Engadget.com reported. The closure is effective immediately, with the company discontinuing all products while promising to honor active warranties. Virgin Electronics had so far launched three MP3 players, including a 5GB hard drive-based model, several models of portable speakers and various accessories.

Cox Communications Looks to Sell Four Cable Operations

Authored by Mark Hefflinger on March 9, 2005 - 5:12am.
Atlanta -- Cox Communications, the nation's third-largest cable TV operator, announced that it is exploring a sale of four cable operations with a total of about 900,000 subscribers. The company said this is one of a number of strategic options being considered to reduce debt and accelerate growth. Operations under consideration for sale are located in parts of West Texas; North Carolina; California, Texas, Louisiana, Arkansas, Mississippi and Missouri. Cox has a total of about 6.6 million total customers, including about 6.3 million basic cable subscribers.

Comcast, Motorola Sign $1 Billion Set-top Box Deal

Authored by Mark Hefflinger on March 9, 2005 - 5:09am.
Philadelphia -- Comcast, the nation's largest cable TV operator, announced on Wednesday that it has formed a tighter partnership with Motorola, including a new multi-year set-top box deployment commitment valued at over $1 billion. Under the deal, Motorola will provide Comcast subscribers with high-definition digital video recorders and other set-tops. The two companies also announced the formation of two joint ventures that will focus on the development and licensing of current and future conditional access and other cable technologies. "This is part of Comcast's continued focus on the development of industry-wide specifications for key components of set-top boxes -- including conditional access systems, interactive program guides and middleware -- that will help add consumer value and reinforce cable's position as the provider of choice for home entertainment and information," said Comcast COO Steve Burke.

Sega Acquires "Total War" Game Developer Creative Assembly

Authored by Mark Hefflinger on March 9, 2005 - 5:05am.
San Francisco -- Japanese video games firm Sega announced on Wednesday that its Sega Europe unit has acquired The Creative Assembly, a developer based partly in the U.K. and partly in Australia that created the "Total War" game franchise. Financial terms of the deal were not disclosed, although some reports said Sega paid about $30 million for its first acquisition as a third-party game publisher. Founded in 1987, Creative Assembly counts 75 staff in the U.K. and Australia, who in addition to "Total War," have also developed rugby sports titles for Electronic Arts. Sega Europe said it will publish the studio's "Spartan: Total Warrior" for PlayStation 2, Xbox and GameCube in September.

Academici Launches Network for Researchers Worldwide

Authored by Mark Hefflinger on March 9, 2005 - 5:02am.
Birmingham, England -- Academici Ltd., a U.K.-based start-up, has launched what it describes as the world's first global online networking platform for academics and scientists. The company said the service -- an "exclusive network for eggheads" -- aimed to improve communication across disciplines and borders between academics, academia-related associations, societies, academic services, students and academic-related business. "Academici is about networking with academics and researchers across continents and about content, facilitating the exchange of ideas, discussing research findings," said the University of Birmingham's Markus Vinzent, one of the founders of the platform. The Technical University of Chemnitz, Germany, has already agreed to take up corporate membership of the site, Academici said.

DVD Trading Service Peerflix Lands First Round of Funding

Authored by Mark Hefflinger on March 9, 2005 - 4:59am.
Menlo Park, Calif. -- Peerflix, an online service that allows members to legally trade DVDs, said on Tuesday that it has raised an unspecified amount in its first round of funding, co-led by 3i and BV Capital. The funding will be used to accelerate member acquisition, scale the company's infrastructure and develop new product offerings and enhancements. Launched in 2004, Peerflix operates a peer-to-peer service that allows DVD owners to trade DVDs that they no longer want for others they would like to watch. The company said that more than 25,000 are currently being requested for trade on its site, with plans to expand into other products, including video games and CDs. The service, still in its beta phase, is currently offered in the U.S. and Canada, with international expansion planned for the future.