Why Wii Dominates

Better, brighter, faster games--and perhaps more profits--are in Nintendo's future
Hardcore gamers may still scoff at Nintendo's Wii for catering to casual gamers. But hidden behind its Clark Kent facade are some impressive financial muscles.

Nintendo rocked the gaming world when it brought out the Wii gaming console three years ago by turning an entirely new demographic of users on to gaming. Middle-aged and senior citizens stood in line to buy Wiis on the strength of games like Wii Fit, which audiences found more fun than workout DVDs.

To date, Nintendo has sold nearly 35 million Wiis, including 12.6 million in the U.S., Nintendo's biggest market. That's lower than Sony's PlayStation 2, which has sold 43 million units since 2000. But it's still pretty high for a console that, at launch, was technologically a generation behind its chief competitors, Sony's PlayStation 3, with 13 million units in users' living rooms, and Microsoft's Xbox 360, with 23 million units. This year, the Wii is expected to sell more than the best-selling PS2 sold in its best year, 2003.

Just as interesting as how Nintendo has changed the gaming world, however, has been its business approach. Nintendo sells games along the time-honored razor-razor blade model, namely pushing out the console and then enticing users to buy more games.

"More casual players aren't as likely to be attracted by hardware features, so it's all about delivering a fun, easy-to-use and addicting game experience," says Anita Frazier, toy and video game analyst at NPD Group.

Another factor in enticing those casual users is keeping its console cheap. "The key thing about Nintendo is they want their things to be at price points that anyone can respond to," says Hiroshi Kamide, director of research at KBC Securities Japan. Nintendo's strategy is to buy inexpensive components instead of making them in-house, allowing the Wii to sell for $260 while the PS3 costs $300.

But here's the winning point: Unlike its competitors, Nintendo has figured out how to make money from its console sales. Sony loses money on each Playstation sold. Microsoft might just break even. But every Wii brings in $6 of operating profit for Nintendo, says David Gibson, an analyst at Macquarie Securities.

Nintendo also sells 60% of Wii games itself, compared with 30% for Microsoft and 15% for Sony. Wii users are expected to buy the most games this year, 220 million, compared with 120 million PS3 games and 125 million for the Xbox 360.

The top three Wii games--"Wii Play," "Super Smash Brothers Brawl" and "Super Mario Galaxy"--are all Nintendo's own titles, but the top three for PS3--"Grand Theft Auto IV," "Call of Duty 4: Modern Warfare" and "Assassin's Creed"--are all from outside developers, not from Sony.

By making most of its games itself, Nintendo risks sacrificing the chance to earn licensing fees from as many third-party developers as its competitors. It also prices games cheaper--at $50 versus $60 for the other two consoles. But so far the gambit has paid off: Wii locks in fans because many of its most popular games appear exclusively on the Wii. And Nintendo has a higher gross margin on game software than the others at 65%, compared with between 50% and 60%.

Those only-available-here games sell better than games that have been ported to other consoles because the Wii's unique features--the motion-sensor remote, for instance--make it hard to translate into other systems. PS3 and Xbox 360 games can be ported between those two systems fairly easily, but developers that want to make a game for all three consoles need a dedicated Wii team to write the Nintendo version.

Ubisoft's new "Shaun White Snowboarding" game, which shipped in late November, uses the Wii Fit motion board to simulate full-motion snowboarding; its Xbox and PS versions push online virtual snowboarding with friends.

Technology Never Stops

Pop Up Umbrella

Ipod Speaker

Versatile Mat

Laptop

Cellphone

Umbrella Chandelier

Instant Lamp

Woodmade Laptop

USB Watch

Rubix MP3 Player

Cellphone

Music Player

The Pros and Cons of Netbooks

Yeah, what's the deal with all the netbooks?

If you're unfamiliar with the devices, here's the pitch: You get a small, cheap laptop with a basic set of features, limited performance, and often a small hard drive (or an even smaller amount of flash storage). Some netbooks run Windows (usually XP), some don't. And that's the sell. The emphasis: cheap.

Prices typically range from about $300 to $500, but there are exceptions on either side. As with standard laptops, the more you pay, the more you get... but at some point you get into the realm of those regular laptops, and the appeal of the netbook fades considerably.

There are numerous pros and cons to the netbook phenomenon that should impact your decision whether to buy one. First, some pros: They're cheap. Oh, I mentioned that. But they're also very portable and generally more rugged than you'd expect, which makes them great for people looking for a second laptop to use as a "getaway" computer. Just toss it in your bag and head out for that adventure weekend. If it gets lost, stolen, or broken, you're out a much smaller investment than if it had been your $2,000 Mac that you dropped into a ravine.

Now for the flipside. Netbooks are, again, cheap. To get prices down, sacrifices must be made. That means dog-slow processors, no graphics ability, (usually) no optical drive, and minimal RAM. Netbooks won't work as an emergency DVD player for the kids. Battery life is often poor (with a few exceptions). Many netbooks look more like toys than real laptops, so they aren't appropriate for business users. And the smaller the keyboard gets, the harder it is to type. On machines with an 8.9-inch screen (the smallest and typical standard among netbooks), touch-typing is pretty much impossible. Then there's the OS issue. While some netbooks run Windows, many run Linux. Whether that's a pro or con depends on your opinion of Microsoft, but many users dislike having to learn a new operating system and instead prefer the familiarity of Windows.

Should you buy one? Tough question, but I highly recommend that if you do, you consider a model with a 10-inch screen, which will give you a less cramped experience on both the eyes and the fingers (thanks to the bigger keyboard). My two favorite models: The Asus Eee PC 1000H and the new Lenovo IdeaPad S10, both with 10.2-inch screens and Windows XP. Both are available for under $500. The Eee has much longer battery life (but weighs half a pound more), while the IdeaPad has better performance and a larger hard drive. Take your pick.

REVIEW: Apple's New Nano is its Best Yet

(CNET) -- Apple's fourth-generation iPod Nano returns to the original long, light, and slender formula that put the series on the map.
Offered in an attractive range of nine colors for both the 8GB iPod Nano ($149) and 16GB iPod Nano ($199) models, Apple has yet again raised the MP3 player bar.

Design: The Nano 4G feels impossibly light and thin, with a seamless metal construction that prevents it from snapping like a twig. A slightly curved design gives the Nano 4G the essence of an airplane wing, repeating the rounded design themes of Apple's iPhone 3G and second-generation iPod Touch.

Compared with the short, squarish design of last year's Nano, the long, tapered body of the fourth-generation Nano is more comfortable to grasp.
Curved glass now covers the iPod Nano's screen, giving it better resilience against scratches--in theory. The curve of the glass screen lies flush with the slight curve of the Nano's body, and although the glass is inherently glossy and reflective, we didn't notice a diminished viewing quality compared with last year's Nano.

The shape may have softened, but the dimensions of the fourth-generation Nano are nearly identical to the second-generation version, measuring 3.5 inches tall by 1.6 inches wide by 0.25 inch thick at its center--the thinnest iPod yet. The Nano's 2-inch screen size remains unchanged from the previous model, as well as its 1-inch wide scroll wheel control.

Headphone and dock connections are located on the bottom of the 4G Nano, and a sliding hold switch makes a reappearance on top of the player (another throwback to the second-generation design).

Because Apple has flipped the Nano's screen on its side, menus and user interface get a dramatic overhaul from last year's model. Menu text size has increased slightly and album cover art takes up less real estate on the main menu.

In a bid to increase the accessibility of the Nano for people with impaired vision, Apple has included a font size setting on the fourth-generation Nano that makes its menus more legible--a nice feature even if you have 20/20 vision.

The Nano's music playback screen now presents full-screen album art by default, and Cover Flow view is zippier than before, offering alphabetization letters below the covers when you quickly flip through your collection.

Features: All of the features from last year's Nano have migrated to the fourth-generation model, including music, video, and podcast playback, as well as extras such as photos, calendar, games, alarms, stopwatch, contacts, notes, and clocks. Apple also added a few features that make the 4G Nano more compelling than its predecessors.

A new Genius feature lets you create an instant 25-song playlists based around the musical characteristics of a single song. The Genius feature is easy to use, and the results are fun, provided your music collection holds enough songs to make interesting connections.

To create a Genius playlist, find a song you like and hold the Nano's center button until you see a Start Genius menu option. You can save Genius playlists directly onto your Nano, and with automatic syncing enabled in iTunes you can also transfer them back to your computer. Oddly, the Nano's Genius feature won't work if haven't enabled Genius on your computer's iTunes software.

If you find iTunes' Genius feature too demanding on your computer's resources or too invasive of your privacy (the feature reports your listening habits to Apple), then you'll need to live without the feature on your iPod as well.

The fourth-generation iPod Nano also adds the same tilt-sensor found in the iPhone and iPod Touch, which allows for some interesting control tricks. Giving the iPod Nano a vigorous shake, for instance, puts the music player into shuffle mode. Causal shaking caused by running or exercising isn't enough to trigger the Nano's shuffle mode, and you can always deactivate the shake-to-shuffle feature under the iPod's setting menu or by engaging the hold switch.

The Nano's new tilt-sensor is also useful for activating the iPod's Cover Flow music view when turning the device on its side (a feature cribbed from the iPhone). The iPod Nano also flips the orientation of video playback depending on which direction you prefer to turn the screen. Lefties rejoice!

Unfortunately, we found it a little confusing to use the iPod's scroll wheel controls while holding the player sideways for video playback. You get accustomed to it, but it seems like an inelegant design solution coming from a interface-savvy company like Apple.

Apple makes it easier to make voice recordings on the fourth-generation iPod Nano by allowing microphone input through its headphone jack. You'll have to shell out for an Apple-approved headset, however, because our tests so far show that even iPhone-compatible headsets (Monster Beats, Etymotic HF2) won't work in this manner, while Apple's bundled iPhone headset worked like a charm.

The earbuds bundled with the fourth-generation iPod Nano are unchanged from previous models and do not include an inline microphone, either. Apple plans to begin sell compatible $29 and $79 headphones with in-line controls and voice recording microphones in October of this year.

An unprecedented feature found only on the fourth-generation Nano is the capability for vision-impaired users to hear menu, selection, and playback information read to them in a synthesized voice. You can enable this feature through iTunes, which generates the synthesized voice information and transfers it to your iPod Nano.

Performance: The fourth-generation iPod Nano's speed and usability is better than ever, but its sound quality and rated battery life haven't budged. Apple rates the battery of the fourth-generation iPod Nano at 24 hours of audio playback and 4 hours of video. Our CNET Labs team achieved an average of 23 hours of audio playback and 5.7 hours of video from the fourth-generation iPod Nano.

The test results aren't bad, but the numbers are down slightly from the 29 hours of audio and 6.7 hours of video our same tests pulled from the third-generation iPod Nano.

Apple doesn't seem motivated to meddle with the sound quality of the iPod or introduce any new sound-enhancement settings beyond its traditional slew of EQ presets. While the iPod Nano doesn't offer the sonic richness and advanced EQ settings of a Sony or Cowon MP3 player, it does sound balanced and should please most listeners.

Like all iPods, the fourth-generation Nano supports playback for MP3, AAC (including protected files), Audible, WAV, AIFF, and Apple Lossless. The Nano still doesn't support WMA music files, but you can always convert your WMA tracks to MP3 within Apple's iTunes software.

Video playback on the fourth-generation iPod Nano looks about as good as it gets on a relatively small 2-inch screen, although holding your iPod sideways takes some mental adjustment. A maximum resolution of 320x240 packed into a crisp 204ppi display makes taking in a full-length movie on your iPod Nano a legitimate (but silly) possibility.

Compared with the flat screen of the third-generation iPod Nano, the fourth-generation's rounded glass screen makes it difficult to eliminate glare, but images still look remarkably bright and clear.

Like most portable video players, the iPod has specific file requirements for video playback, so you may have to spend some time converting video on your computer before transferring it. Fortunately, the iPod Nano's video formats are widely known by purveyors of Internet video, which often arrives preformatted for the iPod.

Movies, TV shows, and video podcasts downloaded directly from Apple's iTunes store will always cooperate with your fourth-generation iPod Nano as well as videos formatted as H.264 or MPEG4 video in either MOV, MP4, or M4V file formats with a maximum resolution of 640x480.

The iTunes factor: Before you run off to buy a Nano for everyone on your holiday wish list, consider this caveat: whoever uses the Nano (or any iPod) will be required to install and use iTunes. No other piece of software has equaled iTunes in both praise and scorn from CNET's users. Some argue that iTunes is a top-notch media library tool and online music store, while others become infuriated by the software's insatiable demand for system resources and frequent updates.

Whatever side of the iTunes debate you take, know that iTunes 8 is a mandatory install for the fourth-generation iPod Nano. If you haven't used iTunes before or haven't upgraded the software in a while, we strongly recommend giving the new software a spin before committing to a new iPod.

Is it worth upgrading? If you passed on last year's iPod Nano and are still holding on to a first- or second-generation Nano (or possibly an iPod Mini), there's no better time to bite the bullet and get an upgrade. Given its competitive price, attractive range of colors, and improved user interface, Apple's fourth-generation of the iPod Nano is its best yet.

If you own one of last year's iPod Nanos, however, there's little reason to make the jump to the fourth generation. The iPod Nano 4G's Genius playlists, shake-to-shuffle, and improved voice recording compatibility are fun features to have, but they're not worth $150-$200.

That said, if you've filled up your 4GB third-generation Nano and want some extra room or if you need the additional accessibility features such as enlarged screen font and text-to-speech, the fourth-generation iPod Nano is an ideal choice.

Warcraft: The Movie?

With Mark Wahlberg's noir video game flick Max Payne debuting atop the box-office chart, Hollywood is once again clamoring to find other game properties to slap on celluloid. It's a risky gamble -- for every Tomb Raider blockbuster lies a thousand House of the Dead flops.

So if you're going to turn a video game into a film, it helps if you're already good at this sort of thing. And it doesn't hurt if you pick as popular a game as possible.

It's no wonder, then, that gamers and cinephiles alike are excited at the news of Spider-Man director Sam Raimi praising the big-screen possibilities of beloved multiplayer game, World of Warcraft. In a spirited MTV article exploring the problems behind video game movies, Raimi weighed in by explaining why games tend to be tougher to turn into compelling flicks than comics.

"In the world of video games, it's usually more of an environment or a scenario, not character-based ... but they certainly could [be better]. There's 'World of Warcraft' -- what an awesome video game! It has such great, adventurous characters in it and such fantastic landscapes and rules. ... You could make a brilliant 'World of Warcraft' movie -- as fine as any of the best superhero movies -- if you had the right writers and directors."

Such as...Sam Raimi? While he has yet to announce any formal plans to make a WoW film, we couldn't think of a better man for the job who ISN'T Peter Jackson. But with news of two more Spider-Man films on the way, the chances are looking slim.
For now.

Motorola's Krave ZN4 "clear-flip" Touchscreen Phone

Yep, Moto's latest is yet another touchscreen handset, but with a twist: a clear-plastic flip that's fully touch-enabled. Interesting.

Available now on Verizon Wireless, the long-rumored Krave ZN4 ($149 with a two-year contract) might look familiar to anyone who's seen Motorola's old, Linux-powered Ming phones—and indeed, both handsets have the same, transparent plastic cover.

But Motorola apparently decided to throw a curve ball with the Krave, imbuing its flip with touch-sensitive capabilities that let you access several multimedia features (such features as streaming videos, the music player, GPS, and the photo album) even when the phone is closed. (A network of wire mesh baked into the flip carries any touch signals, as well as audio for the embedded earpiece.) That's a pretty neat trick—but in its early review of the Krave, CNET complains that the flip tends to get in the way when it's time to tap out messages on the Krave's internal, 2.8-inch (and haptic-enabled) touchscreen. Huh.

Anyway, the Krave works on Verizon's 3G EV-DO network, good for streaming video, full-track music downloads, and speedy Web browsing; the handset also supports Verzion's MediaFlo-powered Mobile TV service. Also on board: A two-megapixel camera, GPS, SMS and picture messaging, voice recognition, Bluetooth, and up to 8GB of microSD memory expansion. The ZN4 also comes equipped with an accelerometer that'll automatically turn the screen when you hold the phone sideways. Missing from the package: Wi-Fi.

Study: Internet is GOOD For Your Brain

Can Google make you smarter? Is the more you Yahoo, the better? A new study suggests that searching online could be beneficial for the brain.

Searching online triggers areas of the brain that control decision-making and complex reasoning.

A study at the University of California, Los Angeles, measured brain activity of older adults as they searched the Web. Dr. Gary Small, a professor at the Semel Institute for Neuroscience and Human Behavior at UCLA said, "One result of this study is that these technologies are not all bad. They may be good in keeping our brains active."

To study what brains look like when people are searching the Internet, Small recruited two groups of people: one that had minimal computer experience and another that was Web savvy.

Members of the technologically advanced group had more than twice the neural activation than their less experienced counterparts while searching online. Activity occurred in the region of the brain that controls decision-making and complex reasoning, according to Small's study, which appears in the American Journal of Geriatric Psychiatry.

Small said he can't pinpoint why there was more brain activity in the experienced users. In the study, 24 people were divided into the two groups, who were similar in age ranging from 55 to 78 years old, sex and educational achievement. Their only difference was their technological experience.

The subjects went into the magnetic resonance imaging, or MRI, scanner, which is like a large tunnel. The MRI monitored their brain activity while the subjects strapped on goggles, through which they saw a book page or an Internet search page.

They were given search tasks such as finding out how to choose a car or looking up the benefits of eating chocolate or drinking coffee. They had buttons and keyboards to conduct a simulated online search.

Their other task was to read pages laid out like a book.

"When they search on the Internet, there was activation particularly in the front part, which controls decision-making and complex reasoning. But it was only for the people who had previous experience with the Internet."

Liz Zelinski, a professor of gerontology and psychology at the University of Southern California, said the findings about the brain activity differences aren't surprising: "If you wanted to study how hard people can exercise, and you take people that already exercise and people that don't exercise, aren't they going to be different to start out?"

Research has shown that as the brain ages, its structure and function also changes. Such changes have been linked to declines in brain speed, control and working memory and other cognitive abilities.

Taking on mentally challenging tasks could improve brain health. Brain teasers, such as Nintendo's Brain Age game and computer programs are geared towards boomers and aging adults. And everyone has different recommendations from crossword puzzles to Sodoku to video games as ways to keep the brain sharp, Zelinski said.

Her recommendation: "Do something hard and challenging that's fairly unusual for them to do, something they haven't done before. The idea is it should be difficult. If you do a crossword puzzle all your life, it's not going to be challenging for you."

For many aging people, learning how to use a computer is a challenge.

The barrier for most seniors is the disinterest and intimidation, said Tobey Gordon Dichter, the founder of a nonprofit group, Generations on Line, an organization that provides instructions and encourages seniors to get on the Web.

"It does so much for the mind," Dichter said about searching online. "It allows for the mind to take where you where you want to go. It's on-demand information."

But it's difficult at first, she added. "When you're undertaking new frustrating tasks, like learning a language or how to use a computer, you're pushing those neurons."

The Pew Internet and American Life Project reported in a 2006 sample survey that about 32 percent of people who are 65 and older used the Internet.

Small has written a book, "iBrain," which examines the impact of technology on the human brain and said he wants to conduct further studies on the effects of technology on the organ.
Small encourages older adults to learn how to use search engines and said, "This could be exercising their brain and their neural circuitry in a way that's helpful."

Apple Unveils Sleeker MacBook Laptops

(Fortune) -- Apple announced Tuesday a new line of MacBook laptops. Apple CEO Steve Jobs, unveiled two new MacBooks - a 15-inch model for $1,599 and a 13.3-inch model for $1,299.

As expected, Jobs also cut the price of its entry-level MacBook to $999 from $1,099, a partial concession to industry analysts who have been pointing to the success of lower-priced laptops in a more challenging economy.

Apple also announced a new MacBook Pro with a faster chip and a thin aluminum "unibody" shell, which is intended to make the notebook sturdier.

The MacBook Pro will cost $1,999 for a 15.4 inch model and $2,499 for one with more memory and a bigger hard drive. The price range remains the same as the previous MacBook Pros but investors expressed disappointment that Jobs did not cut the price of the MacBook by more than $100.

Mac computers are Apple's main - and increasingly important - source of revenue. line.