Microsoft gives Windows Live a Facebook facelift

By Yi-Wyn Yen

Microsoft is trying its luck at social networking - again.

After a failed attempt four years ago, Microsoft (MSFT) is ripping a page from Facebook’s playbook, introducing on Thursday new profile and photo-sharing features to its web-based Windows Live services. The software giant allows users with Windows Live Hotmail or Messenger accounts to create online profiles that highlight what a person is doing through a Facebook-like newsfeed.

Microsoft hopes that giving Windows Live a new facelift will encourage more people to spend more time on its web properties. Checking e-mail or instant messaging accounts for up a third of the time people spend on the Internet, according to research firm comScore. Microsoft has 375 million Hotmail users and 325 million Messenger users worldwide. “If we can gain a whole 60 minutes per user, we would grow a whole Facebook in [time spent],” says Brian Hall, general manager for Windows Live.

Though Hall admits that Microsoft’s new strategy could shift some attention from Facebook - in which Microsoft holds a minor stake - to Windows Live, the real concern is longtime rival, Google (GOOG). The search giant already has a commanding lead in the search advertising business, and Microsoft worries about Gmail’s growing share in the e-mail market. “According to comScore, Google has a 6% share of email [in the U.S.] But they’re growing fast,” Hall said.

Like Google, Microsoft has struggled to make inroads in social networking. Four years ago, Microsoft launched Spaces, a blogging tool to build a social networking site within Windows Live. Though Microsoft added 100 million people in it first year, less than 1% of social networking users use Spaces today. “The blogging approach [to social networking] is not the right approach. People are too busy to make that investment,” Hall said.

Windows Live lets its new newsfeed feature do the heavy lifting to give people’s friends updates on what they’re up to. Microsoft has partnered with more than 50 web companies, including Amazon.com (AMZN), Twitter, Flickr,and iLike, a music discovery site. Anytime you blog on WordPress, write a restaurant review on Yelp, or watch videos on Veoh, your status is updated through your Windows Live profile.

Analysts say the new Windows Live makeover is a preview of Microsoft’s newest operating system, Windows 7. The latest version of Windows is expected to integrate tools like photo-sharing, videos, and messaging more seamless between PCs and mobile devices. “All these built-in applications with a blend of Google, Apple, and Facebook is Microsoft’s view of an integrated world,” said Rob Enderle, president of the Enderle Group. “Windows Live comes out first. This is designed for Windows 7.”

Microsoft’s had success with operating systems, but the company still struggles to make a profit from its Internet businesses. Microsoft is banking that more time spent on Windows Live will translate into more web searches on Live and more ads viewed on its portal, MSN. For its fiscal first quarter, which ended in September, Microsoft lost $480 million from its online unit. “We have to get great at the advertising business,” Hall said.

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Apple iPod Touch, New MacBook Selling Like Crazy (AAPL)

Dan Frommer | December 12, 2008 12:10 PM

Daring Fireball blogger John Gruber is one of the best-sourced Apple (AAPL) writers on the planet. So when he declares something, we listen. And he seems to be carrying good news for Apple, whose rivals in the PC industry aren't having the best year.

The latest: Gruber says Apple's iPod touch and new MacBook lines are on fire.

• From yesterday, via his blog: "my sources indicate the Touches are selling nearly as well as the Nanos this year, despite being much more expensive."
• From Wednesday, via his blog: "It’s only going to take a few weeks for us to get Apple’s results from this quarter, at which point we’ll find out that the new MacBooks are selling like hotcakes."
• From Dec. 6, via Twitter: "From what I've heard, the new MacBooks are selling at an unprecedented pace. Insanely popular."

This isn't surprising. We're sure there's pent-up demand for the new, much-improved MacBooks, which hadn't been updated for a long time.

And Apple has been advertising the heck out of the iPod touch and the iPhone/iPod touch app platform, which has to be helping sales. The iPod touch is the no. 1, no. 2, no. 6, and no. 7 best-selling MP3 player at Amazon (AMZN), while cheaper nanos are nos. 3, 4, 8, 9, and 10. (Last week, Amazon and Walmart even sold out of some iPod touches.)

What's this mean for Apple?

• Piper Jaffray analyst Gene Munster, an Apple bull, expects Mac unit sales to increase 13% year-over-year to 2.63 million Macs, slower than last quarter's 21% year-over-year increase, and the 44% year-over-year unit sales growth that Apple experienced during 2007's December quarter.
  
• So, anything better than that could represent upside for Apple's fiscal Q1, which ends this month.
• Munster expects Apple to ship 7.2 million iPod nanos this quarter and 2.8 million iPod touches -- or 2.6 touches shipped per nano shipped.
  
• Surely some touch sales are coming at the expense of nano sales. But if touch sales are significantly higher than Munster is projecting, that's good news for Apple's top line: Munster estimates that iPod touches will sell for an average $280 this quarter, 50% more than the $160 (average estimate) iPod nano. (Extra, incremental bonus: Apple gets more revenue from iPod touch App Store sales, too, which it doesn't get from the nano.)
  

Bottom line: If MacBook sales are stellar -- and if iPod touch sales are really almost as strong as iPod nano sales, and iPod nano sales aren't tanking themselves -- that's all very good news for Apple.

See Also:
BUSTED: Steve Jobs Caught Looking Like A Dork
Apple, RIM Get Easier Entry To Korean Market
Apple Mac Brand Strong, But Weak PC Market Killing Growth: Analyst
Is The iPhone Apple's Key To The Living Room?

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The Xbox 360’s holiday makeover

Xbox 360 gets an image makeover to compete with the Wii. Image: Microsoft

By Yi-Wyn Yen

The Xbox 360 is getting a major software update designed to transform it into a multimedia machine.

Starting Wednesday, all Xbox 360 owners will be required to update their gaming consoles so that they can watch movies in high-definition, stream TV shows and movies from Netflix (NFLX) and navigate categories like games, photos, and videos through a simplified dashboard populated with cutesy avatars.

Microsoft (MSFT) is counting on the Xbox makeover to not only drive console sales during a grim holiday-spending season but to broaden its appeal to casual gamers. In a statement, Microsoft hailed the move as “a new dawn in home entertainment,” going so far as to compare the Xbox Experience to the dawn of color television.

The company has been trying for years to brand the Xbox as the digital entertainment hub for the living room. Microsoft executive Shane Kim bragged that through the improved Xbox, the company is “building the world’s largest social and entertainment network” that connects to televisions. The Xbox is now referred to as the “New Xbox Experience.”

Some analysts argue that a recent price cut, not the Xbox Experience, is the console’s major appeal. Microsoft reduced its entry-level Xbox by $80 in early September to $199 and saw U.S. sales rise 33% in October, according to market researcher NPD. The Xbox Experience “is a marginal improvement,” said Todd Greenwald, a senior gaming analyst with Signal Hill. “I think if people are at Target and see an Xbox on a store shelf, they may see the Xbox Experience as a nice feature, but the price point is a much bigger driver.”

Both Xbox and Sony’s PlayStation 3 (SNE) are trying to make inroads to compete with Nintendo’s top-selling Wii. In October, Microsoft sold 391,000 Xboxes in the U.S. while Sony sold 190,000 PS3s. But Nintendo (NTDOY) outsold both gaming consoles by moving 803,000 Wiis, according to NPD.

Xbox Experience, which will offer more than 12,000 movie titles to rent from MGM, Paramount Pictures and Warner Bros., is part of Microsoft’s ongoing efforts to appeal beyond the hardcore gamer market.

Sony is also taking the multimedia approach. The PS3, which lets consumers play Blu-ray discs, is currently building a sophisticated virtual reality world called Home to make gaming a more social experience. Said Susan Panico, senior director of the PlayStation Network, “Our goal from Day 1 is to be an entertainment network. It’s about original programming and videos, and now we’ll bring Home to the PlayStation network.”

Greenwald says new software features Xbox and PS3 aren’t enough to take down the Wii. “I don’t think the Wii is successful because of the Mii avatars. With the Wii, you just pick up a motion-controlled wand and play. You don’t have to learn a controller and all its functions,” Greenwald said.

Microsoft’s Kim says it’s not trying to out-Wii the Wii, but noted the 360 can compete with Nintendo on price. The low-end version of the Xbox is $50 cheaper than the Wii, a point that Kim stresses. “We feel great about having the lowest price for a console, and that will be a big advantage for the holiday season,” he said. “When consumers are looking to buy a console for their kid this holiday, they will see that we’re at $200. Hey, $200 is $200.”

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Sony's PS3 A Sinking Ship: Sales Plummet (SNE)

Eric Krangel | December 12, 2008 9:21 AM

Sony's (SNE) PS3 is dying on the shelves.

Alone among the three major videogame consoles, sales of the PS3 are down about 19% from November 2007, according to the latest stats from the NPD Group. Sony was only able to sell 378,000 PS3s this November, compared to 466,000 last year.

And the problem for Sony isn't the recession, it's the PS3. Microsoft (MSFT) put up respectable numbers with its Xbox 360, selling 836,000 units vs 777,000 in November 2007. And Nintendo's (NTDOY) Wii continues to dominate the market, more than doubling sales from 981,000 to 2.04 million.

So why is the PS3 flopping so badly?

1. It's the most expensive console on the market, $150 - $200 more than its rivals. Even if you believe the video game industry is "recession-proof" (it isn't), a tanking economy makes consumers more price-conscious.
   
2. The PS3's big bonus is its ability to double as a Blu-Ray player. Too bad no one seems to care about hi-def DVDs. The differences between Blu-Ray and DVD are hard to see on a TV less than 50".
   
3. The PS3 just doesn't have any must-have titles exclusive to the console. "LittleBigPlanet" has generated decent buzz but isn't a game-changer, and neither is Sony's new virtual world "Home."

There's really only one option left for Sony to remain in the game: deep price cuts, and not just for people with good credit. Tell yourself the PS3 has superior graphics if it makes you feel better, but a $400 console with a mediocre game library simply cannot compete against an Xbox 360 priced at $200 in this economy.

See Also:
Sony Cuts PS3 Prices By $150 -- If You Have Good Credit
October Game Sales: Nintendo Wii Kicking PS3 Butt
Sony Tries Virtual World Advertising On PS3: Unlike Second Life, It Might Even Work

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101 Dumbest Moments in Business

101 Dumbest Moments in Business Top tech flops Exploding toilets and a startup that actually called itself VaporTech. When 400 surfers are dumb enough to click on an ad offering to infect their PCs, what's left for us to do? By the Editors of Fortune

1 of 18

High-tech toilets

Too bad nobody gave one of these to Chuck Prince

Japanese manufacturer Toto apologizes to customers and offers free repairs for 180,000 high-tech toilets - thrones that feature heated seats, air purifiers, blow dryers, and water sprayers - after at least three catch fire. "Fortunately nobody was using the toilets when the fire broke out," says a company spokesman. "The fire would have been just under your buttocks."

Poll: Rank your favorites

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Last updated December 20 2007: 10:06 AM ET

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Blue-Ribbon Companies

Apple

No. of list appearances: 6

Ranked:

103 on Fortune 500

337 on Global 500

1 in Computers on America's Most Admired Companies

2 in Computers on Global Most Admired Companies

31 on 100 Fastest-Growing Companies

4 on 100 Top MBA Employers

NEXT: Cisco Systems

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College Exhibition: Monash University Degree Show 2005

College Exhibition: Monash University Degree Show 2005
	'Avant' by Adrian Marcon. Click for larger images 'Grase' by Max Tran 'eDeN' by Seung-won Choi 'Coalesce' by Joel Kong 'Couture' by Jeffrey Liu 'Ironox' by Tom Marminc 'Solace' by Adam Ty Dean Smith 'Escapade' by Drew Aaron King 'Kiara' by Lisa Cheung	Mar 10, 2006 – Graduating students from the Industrial Design department at Monash University in Melbourne, Australia held their annual degree show in December 2005, marking the culmination of the student's four years of studies. Projects from the Transportation Design stream included: Avant Adrian Marcon Avant aims to give a thrill-seeking ride sensation, creating a new kind of emotional experience, one of exhilaration and excitement with safety. It provides a safe alternative for people deciding between car and motorbike, the design taking cues from motorcycle styling and functionality, mixing them with aesthetic influences from nature. Grase Max Tran Grase is a fuel-cell car for the future business professional. It morphs between two physical states: compact for urban driving, and stretched cruiser for improved aerodynamic performance and efficiency over greater distances. Grase is a lifestyle vehicle for commuting, escaping, and making an impression on clients. Design references from animal and plant life were used to develop forms to convey the emotional essence of the vehicle. eDeN Seung-won Choi eDeN is inspired by desert life in isolated and rural areas of central Australia, intended as an educational and recreational environment for primary school students in these areas. Before and after school, the vehicle collects students from areas of more than 170km radius per day, providing a safe, fun and comfortable trip. As a substitute for a classroom, the interior is a learning auditorium, where urban digital 3D-projection wall technology is made available to the students. This feature would not only replace wasteful school stationery, but also the use of expensive personal laptop computers. Coalesce Joel Kong Coalesce focuses on the increasing number of couples who have children later in their lives to pursue careers. The solution proposes a vehicle that separates into two modules, allowing each of the couple to travel at the same time to different locations. The modules dock together when travelling to the same destination, giving Coalesce a 'romantic' element too. A key feature is the ability of the interior space to open up, allowing the physical interaction of the couple whilst traveling docked together. The form and the asymmetrical graphical break-up of the surfaces are symbolic of how two unique individuals are able to coalesce – to come together. Couture Jeffrey Liu Couture is a vehicle with sensitivity towards the wants and needs of the youth market. It is designed specifically for an active lifestyle and to blend into both urban and off-road environments. Based on a customizable platform, its basic state is a low-cost 'buggy' that with the addition of interchangeable parts and accessories can be matured into a more luxurious vehicle. Couture embodies versatility, personality and attitude to challenge present perspectives on car styling, its main objective to convey a sense of fun, excitement and individuality. Ironox Tom Marminc The Ironox Basic Utility Vehicle is a vehicle that emphasises sustainability, independence from infrastructure and aptitude for niche markets. Designed to cater for the specific requirements of rural citizens in developing countries, the Ironox is an affordable utility vehicle that aims to increase the value and cohesion of community life. Features include a variable-pitch windshield, optional cabin enclosures, transforming cargo tray / passenger area and an inbuilt generator. Solace Adam Ty Dean Smith Solace Search & Rescue Reconnaissance Vehicle is a mobile surgical unit designed to respond to first-aid needs during military conflicts and natural disasters. The innovative interior and exterior provides Solace with the ready capability to save lives and 'increase the peace'. The vehicle's intuitive interior is aided by bi-directional seating for the medical staff, the medical environment expandable by folding out a tent. Overhead lighting can also be fitted to the rails for additional illumination when using the tent for triage. The modular interior allows the complete medical area within the vehicle to be removed, refurbished and replaced into the vehicle, thus reducing the time out of service. Escapade Drew Aaron King Escapade SUT has a uniquely Australian focus. It is intended for both recreation and work, combining both refined sophistication and practicality. The interior challenges traditional dashboard/console protocol, having potential for export drive side adaptability, while the utility tray has an inbuilt workbench, storage compartments, air compressor and power station. The dynamic cab-forward profile is accentuated by strong body side feature lines directing attention towards the front of the vehicle. To give a greater sense of space, the glass roof flows from the front windscreen into the rear wall, the latter sliding to enable either a two-seat cabin with an extended tray or a 2+2 layout with smaller tray. Kiara Lisa Cheung Kiara is an MPV designed for active families. Each component of the vehicle is designed to assist the family in executing daily activities such as shopping, picking up children from school and going to work. It contains many storage areas that have interchangeable accessories. The seats orientations range from fully collapsed, creating a large open space, to having them face each other to promote family interaction and communication. Monash University is situated in Melbourne, the hub of Australia's growing automotive design industry. The presence of Ford, GM Holden and Toyota design and manufacturing operations are rapidly establishing the city as a centre for design in the Asia-Pacific region. Monash University fosters close links with each of these brands and provides industry experience to talented young designers. The newly established GM-sponsored clay modelling studio has been made available to final year undergraduate students, and industry-based tuition is provided throughout the development of projects. Monash University Art&Design website: www.artdes.monash.edu.au

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Pforzheim University Spring Degree Show 2006

Pforzheim University Spring Degree Show 2006 Page 1 of 2
'Surviving in Urban Chaos' by Borris Ilse Click for larger images 'rs2+' by Vitalis Enns 'BMW for China' by Karsten Schmidt 'Hybris' by Denis Gombert Interior by Elise Kummel (Industrial Design)	Mar 6, 2006 – Transportation Design students at Germany's Pforzheim University displayed their work in the school's spring Transportation Design degree show in February, one of the two graduation shows per year. Photo Gallery 370 photos The Pforzheim Transportation Design courses lead to BA and MA degrees. The exhibition included work from graduating Diploma and Masters students, exterior and interior projects by the 5th and 7th semester students, as well as work from students in the earlier stages of the Diploma and Masters courses. Projects by the graduating Diploma students (four year course) included: Surviving in Urban Chaos Borris Ilse In European metropolises, as traffic becomes more rough and chaotic, nearly every car has slight damage. The aim of this project was an emotional and exaggerated approach to this scenario, transferring characteristics of offroad rally cars to a car for everyday life, in order to create a tough but fashionable lifestyle-car. The result is a crossover concept, which combines small dimensions, the high seating position of an SUV, the durability and simplicity of a Baja-Beetle with the agressive attitude of a sportscar. rs2+ Vitalis Enns The project 'rs2+' is a vehicle based on the social and cultural evolution of modern people, depending on their values, emotions, and family structure. It should transfer new solutions from other product environments. Due to the recent success of Renault's Formula 1 team and the absence of a Renault production sports car, this concept is based on sports car philosophies. The idea is a sports car for a small family, with a two-person seating configuration and an extra seat for a child. The structural solution is based on lightweight construction methods used in snowboard and bicycle industries, with a parallelogram frame made from wood and fiberglass. The styling is very simply defined sculpturally, with a few key constructed lines that suggest fabric stretched over a hard frame. BMW for China Karsten Schmidt The decision to design a car for the Chinese market is based on the projection that the behaviour of potential chinese customers will change in the next few years. The Chinese consumer is increasingly looking for foreign car companies to build cars designed specifically for Chinese conditions. The BMW Bá (Eight) is inspired by the sculpture and architecture of modern China and fills a new gap between classical sedans and large luxury minivans. Hybris Denis Gombert There is no aircraft yet which can take off and land without runway on water and land, which can hover and fly long distances almost supersonic, carrying many passengers and large loads. Hybris is a concept for an airplane which can do previously impossible or impractical tasks. By tilting the outer wings and folding each propeller/rotorblade forward around the elongated hubs, Hybris can alternate its flight mode between jet plane, turboprop plane or helicopter. Hybris is developed as a multi-role aircraft for disaster relief, which can also be used economically for commercial flights. The interior is also variable and can be changed completely via the rear loading door. Page 1 of 2

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Car Design News Reader Survey: Best current production car design is…

Car Design News Reader Survey: Best current production car design is…
Designer Henrik Fisker with the Aston Martin AMV8 concept. Click for larger images Aston Martin V8 Vantage Mercedes CLS Aston Martin DB9 Bugatti Veyron Ford GT	Mar 24, 2006 – As part of our recent survey, we asked Car Design News readers to vote for their favourite current production car design. The response produced some fascinating results, with the Aston Martin V8 Vantage being voted the clear favourite from over a thousand responses. While other 'Best Design' contests are largely made up of votes from journalists, the voters for this survey were mostly automotive designers and students of car design. The top ten rankings are: 1st: Aston Martin V8 Vantage 2nd: Mercedes CLS 3rd: Aston Martin DB9 4th: Bugatti Veyron 5th: Lamborghini Gallardo 6th: BMW 5 Series 7th: Audi TT 8th: Alfa Romeo Brera 9th: BMW 6-Series 10th: Lotus Elise This result represents an impressive result for Ford-owned Aston Martin, with first and third places for the V8 Vantage and DB9 respectively. It's also surprising because the two models are fairly similar in appearance which suggests that if one of these models did not exist, the remaining model would have won by an even greater margin. Indeed, the scores for all three models of Aston Martin (V8 Vantage, DB9 and Vanquish) were higher than for any other brand; Porsche, Mercedes, Lamborghini and BMW included. Lamborghini Gallardo BMW 5 Series Audi TT Honda Civic The second-placed Mercedes CLS is in some respects an even more impressive result, given that it is a large four door sedan – albeit one with some coupe DNA in its design. For it to score higher than its sports car siblings, the SLK, SL and SLR McLaren, is an impressive achievement. Similarly the high ranking of the BMW 5 Series, ahead of the sister 6-Series coupe and Z4 sports car, is a significant achievement. European models dominated the results, with relatively few nominations for American or Japanese designs, despite 52% of votes being from the North America or Asia-Pacific regions. While this might reflect the higher presence of premium brands and more exotic models, it also suggests there's an ongoing respect for European automotive design that appeals to designers' sense of 'beauty' regardless of their nationality. The top American score was for the Ford GT, followed by the Ford Mustang, whilst the best Japanese design was voted as the new Honda Civic 5-door ahead of the Infiniti G35 coupe and Nissan 350Z - and ahead of the Lamborghini Murcielago, Ferrari 430 and Bentley Continental GT – another exceptionally impressive result for such a mainstream practical car. Examining the results more closely by profession also throws up some revealing results. Looking solely at professional OEM automotive designers, the Mercedes CLS would have ranked first, followed by the Aston Martin V8 Vantage, with the BMW 5 Series and Aston Martin DB9 close behind. If we look only at design students however their clear preference for exotic sports cars is more marked with the Alfa Romeo Brera ranked in second place behind the Aston V8 and just ahead of the Mercedes CLS, and the wild Lamborghini Murcielago and Gallardo in fourth and fifth places respectively. Other surprises of the survey included the low rating of Renault, Chrysler and Mazda models, perhaps reflecting the relatively unglamorous nature of their brands and production car line-up as opposed to their strong reputation for concept car design.

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