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It’s Friday night and still no word from the Microsoft or Yahoo bunkers. The headlines for today tell the story (see Techmeme).

The Wall Street Journal, which appears to be a conduit for the negotiations, has a story, “Microsoft, Yahoo Talks Intensify In Push to Reach a Friendly Deal,” and another one, “Yahoo-Google Pact May Be Close.” It doesn’t seem that a Yahoo-Google mating on advertising would lead to a friendly Microsoft-Yahoo discussion this weekend. It’s an interesting game of chicken, with many issues, such as regulatory approval, up in the air for any permutation of a deal with the triangle.

It’s clear that Yahoo and Google are trying to check Microsoft by hooking up, but it would only be strategic for Yahoo if Microsoft ends up paying a higher price, meaning it has to motivate Steve Ballmer into coming up with more cash.

Of course, Ballmer has other options. He could take the hostile takeover route, or walk away for now and perhaps come back later if Yahoo goes into freefall, even with Google filling its coffers.

Whatever the outcome, it doesn’t alter the reality that Microsoft senior management strongly believes that it has to do something dramatic to compete with Google. The fact that Google has inserted itself into the process has to be galling to Microsoft, which could lead to the hostile route.

For a reminder, here is the cast of characters and social graph.

There are many differences between the console games we all know and see commercials for, and online Flash games we all play for a bit when we’re bored.

Mochi Coins

(Credit: Mochi Media) According to Mochi Media co-founder Jameson Hsu, the big difference between Flash and console games is quality–of graphics, service, and general game-play.

But as Flash games become more sophisticated and interactive, and business models emerge that take advantage of the low development costs of the platform, the line of delineation between the two mediums is beginning to close.

ComScore released a study a few weeks back that showed the U.S. audience for online games grew 22 percent since last year to 87 million visitors this past May. By comparison, console game sales plummeted 31 percent in June from the previous year.

This shows that there is a huge market there that has big numbers in terms of users and time spent that can now inject serious cash via micro-transactions.

Mochi Media is launching Mochi Coins on Tuesday, a micro-transaction platform that allows developers and game portals to make real money off quality Flash games. Mochi Coins lets gamers sign in through their Facebook accounts and buy game upgrades (weapons, level unlocks, etc.) directly through the game by PayPal, credit card, or marketing offer.

In the past, Flash game developers relied on advertising or licensing as primary revenue streams–both, however, require an immensely popular game to make big-time money. Micro-transactions can change the landscape of the entire Flash games industry by rewarding innovation and creativity–the better product developers turn out, the more gamers will be willing to spend on in-game offerings.

While the idea of selling upgrades directly to gamers is not necessarily a new one, there have been substantial barriers to developer adoption in the past, such as the ability to retroactively make updates to games after their release.

According to Hsu, “Mochi Coins facilitates the Flash games industry’s shift to micro-transactions by enabling developers to test and optimize price-points and game upgrades through analytics and updating features.” In layman’s terms this means that game developers can experiment with monetizable functions and see what works best.

In a short beta test of Mochi Coins from mid-June to mid-July, Ninja Kiwi, the developer of the popular “Bloons” series, generated an effective RPM, or revenue per one thousand game plays net to developer, of $7 on its game “SAS: Zombie Assault 2.” Micro-transaction revenue from this one game was rivaling total advertising revenue from the rest of Ninja Kiwi’s game catalog.

Micro-transactions open up a new world of options for Flash game developers and could play a part in ushering in a new era of better, more creative, interactive, and successful Flash games. As these games mature and more people become comfortable and aware of this alternative medium, they will continue to encroach on console games and develop into a serious competitor.

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I’d like to hear from you guys about your turntables, have long have you had yours? Is yours even older than my friend’s 30 year old Linn?

Or is it that people are so busy now they simply don’t have time for quality. Strange, our affluence makes us go for the quickest, lower quality option every time. Back in the day writers would use the same typewriter for decades, but now we have to toss out our computers every three or four years. We’re living in a disposable culture, so we need to keep buying new, ever cheaper stuff, but if you have to keep rebuying it, is it really cheaper? High-end audio can be expensive to buy, but not to own.

A good friend of mine plays his 30-year-old Linn LP-12 turntable almost every day. It was an expensive turntable in 1978 when it sold for around $1,200. But he’s gotten 30 years of use out of the thing, and even now listens to a lot more vinyl than CD. So his $1,200 investment works out to around $40 a year to own the thing. Can you imagine anybody buying an iPod today still using it in 2038? 2028? OK, how about 2018? Hmm, I don’t think so.

Does anybody buying an
iPod in 2008 expect to get more than a few years of use out of the thing? My five year old iPod still plays, but I can’t get it to work in newer iPod docks or iPod speakers. My iPod is too old.

Linn still makes the LP-12 turntable, the model has been in continuous production since 1972, and most parts are readily available. How’s that for customer service? My Linn LP-12 is almost brand new, it’s just 13 years old.

OK, iPods aren’t high-end devices, they’re disposable technology. Fair enough, how much do you imagine you’ll spend on iPods or their equivalents over the next 30 years? There was one guy who responded to my “How many iPods have you owned?” poll who has already bought 26. So he’s already made Steve Jobs richer by many thousands of dollars. Over the next three decades he’ll spend a lot more, and still wind up with a closet full of useless junk.

I get it. Convenience trumps quality in most things. Fast food vs. slow food; fresh ingredients vs processed, which is pretty much the same deal with music. CDs, once the height of convenience and advanced tech are now viewed as archaic. CDs are too big, too easily damaged, and cost too much–so lower-fi MP3s and iTunes have put the CD on the road to oblivion. But to vinyl loving audiophiles LPs still sound better than any digital format. Everyone else couldn’t care less about the sound quality their music, it’s just not all that important to them.

(Credit:
Linn Products)

Linn's turntable has been around since 1972.

No doubt, Adobe System’s Flash is popular: it’s installed on 99 percent of all PCs, according to the company.

A new program, announced by Adobe on Thursday, is intended to remedy that problem. The program, called the Open Screen Project, is an industry alliance, of sorts, initiated by Adobe that includes prominent device manufacturers, content developers, and telecommunications carriers.

Wadhwani said the Open Screen project has five basic elements. Adobe will remove license restriction on the .swf file format. “It is published already, but in order to view it you have to say you will not create a competing player,” said Wadhwani. “We’re lifting that restriction. People have been worried about vendor lock-in. This will remove that obstacle, and concern.”

Open Screen is being spearheaded by Adobe. But the company is working with Nokia, Sony Ericsson, Qualcomm, Chunghwa Telecom, Samsung, Motorola, NTT Docomo, Toshiba, Verizon Wireless, ARM, Intel, Marvell, NBC, MTV, and the BBC. It’s “a who’s who in the industry,” said David Wadhwani, general manager and vice president of the Platform Business Unit at Adobe.

Adobe’s answer to the problem–no surprise–is Flash, and later Adobe’s AIR software. The company’s goal is to establish Flash as the common runtime software on a variety of devices and to rapidly gain market share. What about Java, Sun Microsystems’ “write once, run anywhere” software, you ask? Wadhwani dismisses Java’s viability. “Java does happen to be running on these devices. But not necessarily write once, run anywhere.”

Clearly, some big names will likely not be participating in Adobe’s plans. Sun and Microsoft, for starters. Sun has Java; Microsoft has a variety of Windows technology for mobile devices and has developed its own Flash-like software called Silverlight.

“It’s time for the industry to provide a consistent platform for development across PCs, mobile devices, set-top boxes, and other platforms,” said Wadhwani. “There are five times the number of connected devices than PCs in the world. The consumer market is demanding video and rich content across all of these screens,” he said.

But when it comes to mobile devices and other non-PC platforms, Flash is an also-ran. One reason for that situation, according to Adobe, is the lack of good development tools and the company’s own restrictive licensing.

Adobe will also remove licensing fees for embedding Flash Player on devices. The software has always been a free download for PC users. But Adobe has charged for embedding on devices. Those charges will disappear with the next release of the software.

Adobe will also publish a variety of APIs and protocols related to Flash.

Apple and Google are also not involved in the project. Wadhwani said that Adobe will be actively recruiting additional partners, however.

“There are five times the number of connected devices than PCs in the world. The consumer market is demanding video and rich content across all of these screens.” –David Wadhwani, VP of Adobe’s Platform Business Unit

Eric Klein, vice president of Java marketing at Sun, responded by noting that “Java is the most widely adopted runtime in the world, powering compelling content and rich consumer experiences today across billions of devices–more than 2 billion phones, 800 million desktops, 3.5 billion JavaCard devices and 20 million TV devices.”

(Credit:
CNET Networks/Corinne Schulze)

A: One of the great things about headphones nowadays–and also what sets them apart from most other technology–is that they are fairly timeless in terms of design and sound quality. That is, the changes have been incremental over the past several years (except when it comes to wireless headphones, which is another story entirely), which means a set that came out five years ago can offer sound quality that is as good as or even better than a pair that came out yesterday. So getting an older model can be a great way to save money while still getting an excellent product.

The Shure E3c earphones were $180 when they came out; find them for as low as $113 now.

(Credit:
Apple)

A: My favorite player for working out specifically is actually the SanDisk Sansa Clip: it’s super compact, has a built-in clip, and offers great sound quality. However, it doesn’t have the bells and whistles of the Zen V Plus or the Nano (such as a color screen or photo and video support), which would come in handy for use outside the gym. I don’t recommend the
iPod Shuffle generally because the audio quality is not great.

Q: I’m currently in the market for a good MP3 player that I can take to the gym with me and after reading up on pretty much every single MP3 player buyer’s guide, I’ve narrowed my selections down to the second-generation iPod Shuffle, the third-generation iPod Nano, and the Creative Zen V Plus. I was just wondering what your personal preference for an exercise MP3 player would be. I was originally drawn to the Sony NW-S203F that you reviewed, but the unfriendly interface of SonicStage scared me away. The Nano seems to be the most highly regarded and most respected of the three, but I’m tempted to get the Zen V Plus. I’m not sure if the armbands that you can get for the Zen V Plus is waterproof either, so do you think it would be a good idea to go with that choice? Any help would be greatly appreciated! Thank You!–Alex, via e-mail

Q: I currently own Sony NWZ-A816 MP3 player, and my bundled ear plugs are kaput. I am looking for a new pair of in-ear headphones in the $100 category. I saw your best earbuds for less than $100 list, but it seems that quite a lot of those reviews are more than two years old. I’ve narrowed it down some, but could still use some advice. My list includes the Shure SE110, the V-Moda Vibe, the Ultimate Ears Super.fi 3 Studio, the Sony MDR-EX90LP, and the Bose TriPort earphones.

As you can see, I have quite a big list, and hence it’s proving troublesome to select. I am not a bass addict and am looking for a more balanced sound. I know sound quality is a very subjective issue, but I would like to know your choice among these, or any other in the same price category. Any help would be welcome.
–Amrit, via e-mail

Summer may be drawing to a close, but just because you get to start wearing clothes with more coverage soon is no reason to sit on your duff. I’ve said it before, and I’ll say it again: an MP3 player is just the ticket to get you motivated to move your body, and at least one person agrees with me. Check out the players he’s considering for gym companionship and you may just get some ideas of your own. Also this week: why a two-plus year old set of headphones is still an excellent option.

As for the Nano, it has a few advantages over other players just because it’s an iPod, which means it has the largest variety of accessories available for it. A great one for working out is the Nike + iPod kit. Also, I’d wager to say that the interface is a bit sleeker than that of the Zen V Plus, but I have heard that its intensiveness (with the dual screen view) can make the processor slow at times.

The iPod Shuffle's clip is handy for working out, but its sound quality is not up to snuff. Go for the Sansa Clip instead.

Now between the Nano and the Zen V Plus, my personal choice–and what I actually own and use at the gym–is the Zen V Plus. I’m of the opinion that the joystick is easier to operate than the Click Wheel, especially when the player is strapped to your arm. There are several armbands available for the Zen, most of which integrate a sweat-resistant case. Try the Creative Zen V Arm Pack or the yooZoo Silicone Skin with Armband. One thing to note is that the Zen V Plus is an “end of life” product–that is, the newly released Zen Mozaic will be replacing it. The upshot is that means you should be able to find the Zen V Plus super cheap.

MP3 Mailbox Monday is a recurring feature where I answer a selection of questions about MP3 players and accessories, such as headphones, speakers, and music services and software. Check back often to see if the advice presented here might be of some use to you, or send your questions directly to me. (Note: We never include last names, but if you prefer to remain completely anonymous, please state as much in your e-mail.)

(Credit:
Shure)

Out of the models you listed, my top choices for balanced audio quality are the Shures and the Ultimate Ears. Both the Bose and the V-Moda earbuds tend to offer heavier low-end response. The Sony MDR headphones don’t offer the same sound isolation as the others. If you’re going for an older set of Shures, I might recommend the E3cs for a step up. Also, I’m loving the Philips SHE-9850 headphones right now.

One of the benefits that come with an iPod is the plethora of available accessories, such as the great Nike + iPod Kit.

(Credit:
Apple)

IBM is looking to clean up companies’ supply chains, part of a larger effort to make money from environmental concerns.

(Credit:
IBM)

A corporation can look at different packaging or transportation options and measure energy usage of its suppliers. Using IBM’s model, a company can then decide on what steps to take to lower the overall carbon emissions from the supply chain, IBM said.

The analytical software, developed by IBM researchers, is meant to be used as part of a consulting engagement. IBM has been using the software internally for some of its operations as well as an unnamed client.

Large corporations hold significant sway over their supply chain partners in pushing them to reduce waste or energy usage. Wal-Mart, for example, has pushed companies to revamp their packaging to reduce waste.

The need for carbon-modeling supply chain software is driven by regulations to lower greenhouse gas emissions, IBM said. Even in the absence of mandatory measurements and cuts, many companies are already undergoing voluntary efforts.

IBM last year launched a Big Green Innovations initiative to find ways to make money in environment-related areas, such as water conservation or solar technology.

The company on Thursday detailed a software and service offering called Carbon Tradeoff Modeler that is designed to give businesses an idea how to lower the carbon footprint of their network of suppliers.

Somebody, pass me the No-Doz before I fall off my chair.

“Increasing Cyber Security: DHS established the Computer Emergency Readiness Team (US-CERT) to provide a 24-hour watch, warning, and response operations center, which in 2007 issued over 200 actionable alerts on cyber security vulnerabilities or incidents. US-CERT developed the EINSTEIN intrusion detection program, which collects, analyzes, and shares computer security information across the federal civilian government. EINSTEIN is currently deployed at 15 federal agencies, including DHS, and plans are in place to expand the program to all federal departments and agencies. In addition, the Secret Service currently maintains 24 Electronic Crimes Task Forces to prevent, detect, mitigate, and aggressively investigate cyber attacks on our nation’s financial and critical infrastructures.”

And that’s where it will stay, I’m afraid, until we get nailed by a real cyber-disaster.

Michael Chertoff: Where's the beef?

Here’s the part relating to IT:

Wish I could report otherwise, but when it comes to network security, DHS appears to be more of a wet noodle than even its sharpest critics assumed. The truth is they still don’t have much to celebrate when it comes to cybersecurity.Talk with security consultants and former government officials involved with DHS and you come away wondering what these folks do all day. I’ve listened to countless government leaders since 2003 promise big advances just around the bend. I’m still waiting for something important to write about.

Obviously, it’s easy to take shots at DHS from the peanut gallery, but come on, already. The government-led effort to shore up the nation’s cybersecurity still remains a work-in-progress.

President Bush celebrated the five-year anniversary of the Department of Homeland Security on Thursday. In conjunction with the event, DHS dutifully released a fact sheet marking the department’s priorities and progress since the inception.

(Credit:
DHS)

Then again, DHS grapples with deeply rooted bureaucratic challenges. Few experts want to talk on the record but check out this recent Washington Post piece. It paints a damning picture of an organization struggling with high-profile projects going nowhere. And the piece doesn’t even begin to get into the cybersecurity question. The reason: despite all the reams of paper and la-di-da speeches, it remains on the political back burner in Washington.

So where was Adobe in all this? Good question. After leaving several phone messages, I got the hint: the PR team at Adobe has decided to go into bunker mode for the duration of the games. But not to get too down in the dumps, fellas. A second-place finish to Microsoft hardly rings the death knell for Flash. Far from it. In fact, Adobe Flash is being used to power CCTV’s streaming of the games in China.

“We talked about features like adaptive streaming, the ability to automatically keep checking how much bandwidth you have and deliver the appropriate quality stream and how to be smart about knowing what’s coming up in the stream,” Bennett said. He added that Microsoft made a point of playing up the scalability of the Windows Media format as well as the ways in which Silverlight could help NBC with copy protection of its video streams.

NBC was more forthcoming. The network says that almost 25 million unique users have visited NBCOlympics.com on MSN during the games and so far viewed 456 million pages and watched nearly 22 million video streams.

In the end, Microsoft was able to convince NBC it could do more by using Silverlight than by sticking with Flash. Rob Bennett, the general manager of sports for MSN, told me that it came down to a two-day meeting in November, where he brought in the Siliverlight team. I’m simplifying, but his pitch was that Flash’s scalability had never been put to an Olympic-size test. Accurate or not, that argument left the desired impression. What’s more, even though Silverlight was new on the surface, Microsoft argued that under covers, it was really based on very familiar Windows Media technologies.

Here’s the way things work at Microsoft: After correcting shortcomings in the first and second editions of its software, version 3.0 of a Microsoft product usually silences the company’s worst critics, allowing management to get on with business of crushing rivals. But I’ll be first to acknowledge that Silverlight breaks with that pattern.

Since the start of the Beijing Olympics, I’ve been using the Silverlight 2 beta to access video over the Internet and it works just fine. As a loyal Flash user, I was surprised when Microsoft won the deal to supply NBC with video-viewing technology for the Olympics. There was the obvious old-school tie between Microsoft and NBC dating back to their collaboration building MSNBC. Still, this was Adobe Systems’ game to lose. And lose it did–big time.

Adobe’s next move? John Dvorak had a delightfully curmudgeonly idea, suggesting that Adobe might well try to get back at Microsoft by releasing its
Creative Suite for Linux. As they used to say in Mad magazine, file that one under “Scenes We’d Like to See.”

Click here for more stories on tech and the Beijing Olympics.

However, NBC’s Olympics deal is a terrific boon for Silverlight. Microsoft is not disclosing specifics on the number of Silverlight downloads–except to say that it registers up to 1.5 million downloads a day. For the record, that’s the same thing Microsoft has been saying since April.) However, a spokeswoman said that “in the last several days, more than 50 percent of the visitors to NBCOlympics.com on MSN already have Silverlight 2 installed.”

Yell’s properties do not include the U.S.-based Yellow Pages, which is operated by AT&T. Yell came to fruition with the debut of the British Yellow Pages in 1966, and expanded to the U.S. when it acquired Yellow Book USA for $665 million.

Microsoft may be interested in acquiring Yell Group, the British-based parent company of directories like the U.K.’s Yellow Pages and the United States’ Yellow Book, Reuters reported Tuesday. Yell isn’t commenting, but shares of the company stock rose up to 5.4 percent amid the speculation.

But there’s fine print! “Think carefully about the user name you choose. Once it’s been selected, you won’t be able to change or transfer it,” the post by Facebook’s Blaise DiPersia read. “If you signed up for a Facebook Page after May 31 or a user profile after today at 3 p.m. EDT, you may not be able to sign up for a user name immediately because of steps we’ve taken to prevent abuse or ’squatting’ on names.”

There’s something significant here: not being able to change or transfer your Facebook name means that it’s less likely there will be a big market for them on eBay, Craigslist, or elsewhere, something that could easily get out of hand otherwise.

Also: “We expect to offer even more ways to use your Facebook user name in the future,” DiPersia wrote. Presumably, this means that you’ll be able to use it for Facebook Connect log-ins on external sites, rather than your e-mail address.

(Credit:
Facebook)

Facebook’s 200-plus million members will be able to customize the URLs to their profiles starting at midnight Eastern on Saturday, according to a post on the Facebook blog. Currently, users’ profile URLs have been structured as a string of numbers. At least for now, it doesn’t look like the switch is mandatory.

This is a move that will help Facebook profiles get better traction in search engines, potentially upping traffic–and give people-search sites a run for their money in the process. For brands whose “fan pages” are a crucial part of Facebook’s marketing and advertising strategy, it’ll make their pages easier for people to access without needing to click around much.