January 2005

  • Youth Gym Usage Up 15% After PS2 Games Installed

    Liverpool Gym PS2Back at the tail end of last year, Liverpool City Council installed gym equipment with Sony Playstation games consoles fitted to them, in an effort to induce the local youth to come to the gym.

    At the time, Councillor Warren Bradley, Executive Member for Leisure was quoted as saying “By fitting television screens and games consoles to the equipment, we will be able to show children that they can combine their favourite activity with exercise. And by teaching children about the positive benefits of exercise.”

    Why are we mentioning today? The Sun, a well known tabloid “newspaper”, is running a brief story and editorial comment about it today, deriding Liverpool council spending money on Playstations in an attempt to encourage children into gyms.

    Over the two years since we first discovered the Reebok CyberRider, we’ve written about devices that connect games consoles to exercise machines and have been keen on them. The connection of physical input to video games seems like a great area of growth and it’s certainly true that in those two years there have been lots of interesting developments. Sony and Nike MotionWorks have got together recently to bring EyeToy Kinetic to market in autumn 05, combining the camera add-on for the PS2 with fitness software.

    We spoke to Donald Hurst, Operations manager of sport and recreation service at Liverpool City Council to get the accurate details on the story.

    The equipment that they’re using, supplied by TechnoGym, includes running a treadmill, rowing machine, and cycle. The four machines that they have working at each of their Lifestyles fitness centres at Peter Lloyd, Everton Park and Garston have been particularly well received, both by the children and adults.

    It appears particularly popular at the Garston centre, which has 2,000 members and is their busiest site, with the staff receiving quite a number of positive comments from children’s parents.

    Keen children are given an introduction session which runs between 4 – 5:30 daily and are then free to choose from a selection of 30 games supplied by the venue. Hurst said they’ve made the decision to currently not let the children bring in their own games, so they have some control over the type of game being played. Once the game has been selected it has to be setup by the fitness instructor.

    Hurst put some comparative usage figures together for us that show usage by young people has gone up by 15% over the same period last year since the Playstation had been introduced. He also told us that there is a growing interest from adults to use the equipment as well.

    While Liverpool hasn’t yet gone the whole hog of direct connection between physical input and the games, we think it’s a good start. The increase in attendance figures also point in that direction.

    Liverpool City Council

  • Intel Reshuffle Around Platforms

    Sensing the changes in the micro-electronics industry, with the growth of tech/media convergence, Intel are to reorganise themselves around Platforms.

    The new groups of interest are Mobility; Digital Enterprise; Digital Home; and Digital Health.

    Mobility will deal with, surprise surprise, portable devices such as notebook PCs, handhelds and communications devices. A major focus will be getting the expanding numbers of mobile devices working better together using, we assume, wireless networking.

    Focused on living room entertainment applications and consumer electronics devices, the Digital Home group will focus on developing computing and communications platforms for consumers.

    Digital Enterprise Group will cover end-to-end solutions in businesses. With digital delivery of content, this is becoming more and more important to content owners/current broadcasters and an area that IBM is putting a lot of effort into try to capture.

    One of the big areas of excitement for the connected home is its use of health sensing. Intel are jumping on this with the Digital Health group.

    This is a clear illustration of the growth of the electronics business away from its business focused roots, maturing in to a new phase, one where technology will be everywhere.

    Intel

  • Chernin Hints News Corp. to Buy into Video Gaming

    News Corp., the media giant built by Rupert Murdoch is reportedly looking to get into the games business.

    The FT is running a story today that Peter Chernin, News Corp. chief operating officer, told a conference in Phoenix, Arizona that they were “kicking the tires of pretty much all video games companies,” as “We see as a big business and would like to get into it.”

    Normally used to buying huge companies like Fox, News Corp is clearly looking for the best value company, but finding a big disparity between the largest, Electronics Arts (EA), and the rest of the video games companies. “We are struggling with the gap between companies like Electronic Arts, which come with a high price tag, and the next tier of companies. These may be too focused on one or two product lines.” Chernin said.

    There are many reasons why a move into gaming would make sense for News Corp. Numerous studies have shown that people, particularly the young, are moving away from watching television to play video games and the next generation of Set Top Boxes (STB’s) have considerable power. Using News Corps. satellite distribution platform, such as Sky and DirecTV, to distribute games to these STBs makes total sense.

    We imagine there is a state of confusion at EA, if not the whole of the games industry, switching between a state of high excitement and nervousness. As the many corporate corpses that litter in the trail of News Corp. attest to, when they do it, they do it big.

    News Corporation

  • Motorola and Oakley Form JV for Wireless Products

    Motorola and Oakley to form a new venture to fuse Motorola’s latest Bluetooth technology with Oakley’s glasses. First designs are expect mid-2005.

    The details are thin on the ground at the moment but lots of phrases that could mean anything are being bounded around by both sides. Here’s a couple; “enabling seamlessly mobile wireless communications anywhere and everywhere consumers want to be” – Motorola; “expanding the possibilities for our new electronics category” – Oakley.

    Perversely the Oakley Safe Harbor Disclaimer is about twice as long as the information provided.

    Back in September Oakley released their MP3-player sunglasses, the Oakley Thump, which have been well reviewed, despite their high cost for not much storage.

    Motorola have of late (and to some effect) worked hard to try and recapture their position in the mobile phone market, having lost out to other phone companies considerably. They’ve designed products that they hoped would be more appealing to the youth market and have spent extensively on marketing.

    This deal with Oakley looks like another step in that direction, as it brings with it ‘cred’.

    Cos Lykos, Vice President of Business Development said “Oakley’s engineering team now has an expanded technology arsenal to develop new and innovative electronic products.” So it’s highly possible that some interesting products could come out of it.

    Motorola
    Oakley

  • Ofcom Release Ultra Wideband (UWB) Document

    Ofcom released a consultation document today on ultra wideband (UWB) in the UK.

    Given Ofcom’s statutory duties under the Communications Act 2003 to ensure the optimal use of the radio spectrum under its management, they should be keen on UWB.

    The strength of UWB also causes its problems. By simultaneously transmitting over a wide range of frequencies (around 3.1 – 10.6GHz, if you’re interested), UWB is able to achieve higher data transfer rate than other wireless technologies.

    By spreading over these frequencies it has the possibility of interfering with services that currently operate in or around these services, such as 3G, broadband fixed wireless access and radio astronomy.

    Back in May 2004, Ofcom commissioned Mason Communications and DotEcon to produce an independent report in to UWB. Delivered in December 2004 (Read the final report, all 218 pages of PDF fun), it looked at the advantages to the UK economy of allowing UWB applications and the disadvantages of increased interference to existing radio spectrum users.

    The report focuses on the use of UWB to create a Personal Area Network (PAN) with examples of usage being; providing wireless connections between DVD players, displays and speakers; and using them for high speed wireless links between digital cameras and computers.

    While acknowledging interference is likely, it’s clear that Ofcom feels this should be weighed carefully against UWB’s potential benefits. To check this interference, the suggestion is to use a technical ‘mask’, controlling the amount of power that could be used at different frequencies, in an attempt to reduce the impact of interference.

    The US regulator has already authorised UWB on a licence-exempt basis, but Ofcom consider the US specification to be inappropriate for the UK. Their proposal is that if UWB is allowed, it should be on a licence-exempt basis, but be limited to the same in-band power levels as permitted in the US, but have tighter out-of-band limits.

    Ofcom point out that there is a need to come to a decision soon, fearing US-built UWB devices could be imported in to the UK.

    All of these add up to a big pressure on the frequency users that would be affected. It will be interesting to see what their reaction will be during the consultation period which closes 24 March 2005.

    Ofcom Ultra Wideband consultation document
    Mason Communications and DotEcon final report

  • The Sun launch Page 3 Soft Porn to Mobile Phones

    Sun MobileNews International, the publisher of well known UK tabloid ‘newspaper’, The Sun, has opened the doors on its own mobile content service that it calls Sun Mobile.

    It will feature ringtones, java games and … you guessed it … Page 3 wallpapers and screen savers. For our non-UK readers, Page 3 of the Sun is dominated by a photo of a topless (at least) woman.

    The service won’t be short of promotion. The Sun website, Sun Online, has around 3m users, with half of its traffic coming from the US and Canada. The printed paper has a circulation of 9 million.

    Despite The Sun having a presence on the Vodafone live! and Orange World portals, News International (NI) has set up their own mobile site, developed by Blue Start Mobile. It will be accessible in over 130 countries around the world, thanks to NI’s deal with Bango.

    Many mobile content providers are discontented with what they see as unbalanced, operator-biased revenue splits that the mobile phone company are currently offering in the UK. It sounds to us like NI has recognised this, as Simon Ashley the commercial manager dealing with the launch points out, “Sun Mobile gives us direct, interactive relationship with our customers on mobile.”

    Sun Mobile (contains nudity)

  • RocketFM – Unleash Your Computers Audio to FM Radio

    Griffin RocketFMWow, Griffin Technologies are busy. Following a flood of announcements from them in the build up to MacWorld including the SmartDeck iPod cassette adaptor, they’ve just announced RocketFM.

    Building on their idea of transmitting iPod music to FM radios, RocketFM is a USB FM Transmitter for PC or Macintosh that takes the sound from your computer to an FM radio that you might have knocking around.

    The software that comes with it, lets the broadcasting frequency be chosen by the user, to avoid clashed with your favourite stations.

    Costing $39.95 it will starting shipping in the US in the first quarter of 2005.

    Different countries around the world have different rules on the use of this type of device. Quite a few countries in Northern Europe, including Sweden, Austria, Iceland and the UK, don’t like you broadcasting on FM, no matter how weak the signal.

    Ofcom, the UK super regulator, has been very clear about their dislike of such devices, like iTrip. It contravenes the Wireless Telegraphy Act of 1949 and use of one in the UK could in theory be met with the maximum penalty of two years in prison.

    Griffin RocketFM

  • Apple iTunes Selling 1.25m Tracks per Day

    During his MacWorld keynote, Steve Jobs took time to tell the Apple faithful about the success of iTunes.

    Back in mid-December, we were rather dismissive when we heard that iTunes had sold 200m tracks, so when we heard Jobs saying that the figure had now reached 230m songs, it didn’t set our world alight.

    What we did find interesting was the current rate at which tracks are being sold per day. From their combined online stores in the 15 countries they have running (covering 70% of global music market), they are currently selling at the rate of 1.25m per day.

    Jobs was quick to point out that ‘at this rate’ the annualised sale of tracks would be 0.5 billion tracks.

    While this tracks/day rate initially sounds enormous, it has to be put against the explosion in the sales of iPod over the last quarter of 2004.

    In the run up to xmas a very impressive 4.5m iPods were sold (a 500% growth over the same quarter last year) and dropped in to people’s xmas stockings, bringing the total sold to 10m. Clearly these arrive empty and have to be filled with music, some of which may be already owned, but experience tells that the common action is for people to take this as an opportunity to buy more music.

    The number of tracks downloaded will have been helped by the 1m prepaid card that Apple has sold since US Thanksgiving (25 Nov).

    These combined factors may account for the big hike in tracks/day and could point towards this being a seasonal blip. Sustaining it will require a continued enthusiastic appetite for new music from the current owners or legions of new iPod owners continuing to arrive.

    Apple iTunes

  • iPod shuffle. Apple’s Flash Music Player

    apple iPod shuffleThe success of Apple’s iPod range is well known. They have to date sold over 10 million units and have total domination of the hard disk-based portable music players. The only market they weren’t in was the solid state memory, or Flash memory players. To address with the hope of being the winner there too, Jobs announced the Apple iPod shuffle.

    Shown in iPod white it’s 3.3 inches x 0.98 x 0.33 (8.4 cm x 2.5 x 0.84) and weighs only 0.78 ounces (22.11g). In summary it’s very small, about the size of a pack of chewing gum.

    The controls are very simple, numbering just five – play/pause; volume up and down; next and previous track. Unexpectedly it has no display, so there is no visual way to know which track is playing. Apple being Apple, worked this idea to their advantage, suggesting that receiving your music in a random, unexpected order was fun. We’ll see if the market agrees.

    Connecting to either a Mac or PC via its USB 2.0 port, it also takes its charge onto its 12 hours battery this way. This is a great feature that players like the Jens MP-130 had used, which we found a real boon.

    While we’re on the Jens MP-130, it had a really excellent microphone build into it which enabled quality recording of interviews and the like. It’s noticeable that the iPod shuffle doesn’t have a mic onboard or even a jack for an input. This is for playback only.

    It comes in two models; 0.5 GB and 1GB – pretty beefy for a Flash player. Prices are $99 (~€75, ~£53) and $149 (~€113, ~£79) in the US, £69 (~€98, ~$130) and £99 (~€141, ~$187) in the UK and is “shipping from the factory” yesterday.

    The integration with iTunes is strong and features AutoFill. This gives various methods of selecting music tracks to go onto the iPod shuffle, filling it to capacity.

    The experience that we’ve had in the Digital Lifestyles office with USB music players is that the ones that have a clip-on lid end up having problems with the lid dropping off. The iPod Shuffle is using a removable lid as the attachment to the lanyard which then hangs around the neck.

    The reaction throughout most of Jobs’s presentation was pretty ecstatic as is the norm, with them cheering and whooping on cue. Strangely during the presentation of the iPod shuffle, it was pretty restrained, even quiet. The only audible excitement was during the announcement of the price of the base model.

    We’re sure Apple will be hoping the public has a more enthusiastic reaction to it. We’ll be getting our hands on it this Friday, so we will update you after that.

    Apple iPod shuffle

  • Netflix Subscription Slowdown Projected: SG Cowen

    Yesterday SG Cowen & Co released a Morning Call that cast a shadow over Netflix.

    They expect Netflix to report solid Q4 results in 2004, but believe it’s unlikely to achieve its goal of 4m subscriptions in 2005, for two reasons.

    Blockbuster has lowered the price of their online postal 3-DVD service in the US from $17.49/month to $14.99/month. Netflix have stated that they will maintain their pricing at $17.99.

    SG Cowen has been carrying out a survey of DVD postal rental services in four US markets. Their results indicate that Blockbuster service has improved, while heavy users of the Netflix service are getting a reduced service.

    SG Cowen actually tied some numbers to Blockbuster’s improvement. The levels of movie availability were at 20-25% in October 2004, improving to 62-84% in November and reaching 84-94% in December.

    Over this time they found that Netflix is cutting back.

    Their belief is that Netflix is reducing the number of new releases that they are purchasing, which is impacting the availability of the titles to their customers. This in turn brings further cost savings for Netflix as they are sending out less DVD’s, thus reducing their shipping costs for heavy users of the service.

    If SG Cowen are correct, it looks like the road ahead for Netflix and its high usage subscribers could be bumpy.

    SG Cowen