Sagging video game industry looks to price cuts, new titles

[PHOTO: Courtesy of Rebecca]

While major home electronics are still selling despite the sagging economy, smaller personal electronics are sitting on store shelves, according to the Consumer Reports Index, our new economic survey.  I expect that finding is hardly a surprise to the video game industry--sales of video games and game consoles have been dropping for months.

The decisions by Sony and Microsoft to slash $100 off the price of their Playstation 3 and X-Box 360 Elite systems, respectively, could help slumping sales. (With the cuts both consoles now cost $299.) Those price cuts could increase unit sales by as much as 60 percent, NPD Group analyst Anita Frazier told Gamasutra recently. That’s welcome news to both console and game makers: NPD has reported a year-over-year sales drop of 37 percent in console sales and 29 percent drop in game sales.

[Update to expand on new X-Box prices: Thanks to the $100 cut, the Xbox 360 Elite system is now $300, while the Xbox 360 Pro package, which is being phased out, is $250 following a $50 price cut. A basic Arcade version is still priced at $200. One change is that the Elite system, which has a larger hard drive, will no longer include an HDMI cable.—Ed.]

New game titles may also help not only manufacturers but the retailers that sell their wares, such as game-rental giant GameStop, which reported a 32 percent profit dive in the second quarter. GameStop CEO Daniel DeMatteo sees some hope with the impending release of several new games this fall (including Halo 3: ODST and Call of Duty: Modern Warfare 2), according to Reuters, but says his company is “cautious” given ongoing concern about the economy and consumer spending.

Less than a year ago, some analysts speculated that the video-game industry could be recession-proof. Obviously, that’s not the case. Nintendo, the third of the “Big 3” game-console manufacturers, is now facing pressure to drop the price of its $250 Wii.

Are you considering buying any video games or consoles this fall, or are they still too expensive? Let us know. --Nick K. Mandle

Apple’s Snow Leopard: What you need to know

[PHOTO: Courtesy of Apple]

Tomorrow, Apple is releasing “Snow Leopard,” a new version (10.6) of its OS X operating system. That the newcomer’s name is merely a variant of the previous version, “Leopard,” suggests that this is less of a major upgrade than Leopard was. Even the pricing indicates that: a single upgrade license costs only $29, compared with Apple’s usual $129 for major upgrades.

The most significant improvement Apple has been claiming for Snow Leopard is that the speed of many of the operating system’s components have been improved and that there is improved stability and security, plus better compatibility between the Safari browser and third-party plug-ins. Snow Leopard is supposed to require half as much hard drive space as Leopard, once the installation is complete.

In our brief testing of the recent version released to developers, using a late model MacBook Pro laptop in our labs, Snow Leopard’s default installation took about 6 GB less hard-drive space than Leopard (after updating), a reduction of about 38 percent. Snow Leopard booted up 15 percent faster, and ran our speed benchmarks about 5 percent faster than its predecessor. Loading complex web pages (like ConsumerReports.org ) was noticeably faster in the new version of Safari. We also encountered an oddity: To get the full benefit of the 64-bit mode of the operating system, you must hold down the “6” and “4” keys on the keyboard while booting. We think Apple should make 64-bit boot-up a settable option.

Here are some other improvements in Snow Leopard that Apple has been crowing about:

• An improved developer interface that will make it easier for developers to take better advantage of multi-core processors and large memory size, and a new development environment that allows the graphics processor to perform multiple complex tasks.

New Mac OS X, Snow Leopard, announced

The Apple Worldwide Developers Conference in San Francisco. [Photo: adamjackson1984/Flickr]

Mac OS X is getting a facelift, Apple Computer announced today during the keynote for its Worldwide Developers Conference. Called Snow Leopard, the 64-bit OS will be available as an upgrade to Mac OS X Leopard users starting in September for $29. There will also be also a five-license family version for $49.

Snow Leopard will use 6GB less hard drive space than the previous version, the company said.

Apple also debuted new 13- and 15-inch MacBook Pro laptops today during the keynote for its Worldwide Developers Conference. Both will use the same battery currently built into the 17-inch version. Apple claims the battery will last 7 hours; in our tests of the 17-inch MacBook, we got 6.5 hours of battery life.

Both will also have an SD slot instead of an ExpressCard slot, and illuminated keyboards. The company says it improved the LED backlit displays. Options for the 15-inch version include up to a 500GB hard drive or 256GB solid-state drive. Prices range from $1,700 for a model with a 250GB hard drive to $2,300 for one with a 500GB drive . The 13-inch MacBook Pro (yes, the 13-inch laptop is now also part of the Pro line) will cost $1,200 to $1,500 with a 120GB to 250GB hard drive and 2 to 4GB of RAM.

Apple's big day arrives: The rumors and the reality

Photo: r3v || cls/Flickr

This afternoon, Apple will open its Worldwide Developers Conference (WWDC) with its attention-grabbing keynote, known for headline-generating announcements. And as usual, in the weeks leading up to the keynote, rumors are flying about new Apple product choices.

While these are just rumors, computer fans enjoy the pre-launch drama. So we thought we’d bring you a quick list of the most persistent rumors. Come back later this afternoon for the real story.

First big rumor, and the one with the most street cred: a new iPhone. Engadget teams with Daring Fireball and says that the next iPhone will have twice the RAM, double the speed, and a video camera. Price: $200 to $300. Another iPhone improvement to look for? Longer battery life.

Next up: a tablet version of the Mac. Same rumor popped up last year, and it’s being revisited this year. CNET says fuhgeddaboutit until 2010. But here’s an overview of how such a tablet might look

Speaking of the Mac, Snow Leopard is the next incarnation of OS X. What might we expect to learn during the keynote? Not a lot, according to Mac Rumors.

Finally, Phil Schiller, senior vice president of worldwide marketing will be presenting the keynote for Apple. Any possibility that Steve Jobs will show up? Lots of “will he” or “won’t he” rumors flying, but we’ll have to wait a few hours to see what really happens.

Meanwhile, chime in with your own Mac gossip.

Check back here this afternoon for our take on the announcements.

And earlier, as the news comes in, follow my colleague, Jeff Fox, live on Twitter. —Donna Tapellini

Champing at the (64) bit

For years, mainstream PC processors have been capable of calculating 64 bits (binary digits) at a time, an advancement over 32 bits that can potentially speed up some applications—like gaming and photo editing—and allow the PC to use virtually unlimited memory space. Apple PCs running Mac OS 10.5 already have full support for 64-bit operation. But, so far, Windows PCs marketed to consumers have overwhelmingly been equipped with only a 32-bit version of Windows Vista. Well, no more.

New PCs from Gateway and HP that we recently tested for our Latest Ratings of desktop computers (available to subscribers) are only sold with the 64-bit version of Windows Vista Home Premium. Why? The main reason, we think, is that they are equipped with more than the 3 GB of memory (RAM) that the 32-bit version of Vista can use. Moving to 64-bit memory addressing allows PC makers to equip desktops and laptops with (ultimately) many times more RAM than before—potentially 8,192 GB. This will usher in a new generation of applications with enormous memory-usage capabilities, improving performance in such areas as home-video editing.

But there are downsides to 64-bit computing.

PC tech support: Apple shines, say our readers

Which computer company is tops in terms of free tech support? Don't expect it to be anyone on the Windows side of the computer world.

Our latest survey on computer tech support, conducted by the Consumer Reports National Research Center and drawn from our readers' personal experiences with 10,000 desktop and laptop computers, finds that Apple owners have much to smile about. Apple's tech support was able to solve Mac problems more than 80 percent of the time, according to those surveyed who used Apple's support.

Overall, however, the news isn't stellar when it comes to using tech support to fix annoying computer problems. According to those surveyed, problems were solved for only about 60 percent of those who actually had to contact a manufacturer for help. What's more, many computer makers' free technical support policies end in a year or less. (One notable exception is, again, Apple. Free phone support runs out after 90 days, but you can get unlimited support at Apple stores—if you live near one.)

As such, salesmen will try to pitch an optional, extra-cost "extended" service plan. Our general advice is to skip such pricey extended service warranties. But if you absolutely need the hand-holding or know you'll travel everywhere with your laptop, you might want to consider one—especially since our latest report on extended service plans for computers (available to subscribers) finds that a few companies' extended plans do offer significantly better tech support compared to their limited free services.

ConsumerReports.org subscribers also have online access to more information, including which laptop tech support and desktop tech support scored among the lowest in our readers' satisfaction (Hint: It's a top-selling computer maker) and how to get free computer help.

MacBook Air: First impressions

We've begun taking a first look at the MacBook Air, Apple's super-slim laptop. (The Air starts at $1,799 for the hard-drive version. There's also a version with a solid-state drive that starts at $3,098.)

One thing we already know: The Air is as sleek in person as it looked coming out of that interoffice envelope in Apple's ads. You can watch our video on the MacBook Air for a closer look and to learn more about what our testers have discovered so far about Apple's hot new portable computer.

[Feb. 11, 2008 UPDATE: You can also watch the video using the player embedded within this post. —Ed.]

But what we don't entirely yet know, because we're still running tests on the hard-drive version, is how much you sacrifice for such a dramatic slim-down. Still, here are some preliminary thoughts based on what we've seen so far:

• The design is stylish, resulting in a very thin, light laptop. But some features are sacrificed, including an optical drive (although you can add an external one).


• The large touchpad features multi-touch capabilities like those found on the iPhone and iPod Touch.


• The display backlight is LED, making it brighter but less power-hungry than other MacBooks. It also has a wider viewing angle.


• The Air stays cooler than other Mac laptops we've tested.

For more information on the Air, look for our First Look on ConsumerReports.org next week, followed by more-detailed test results when we included Apple's new portable in our complete Ratings of laptop computers (available to subscribers).

[Feb. 26, 2008 UPDATE: We've completed our first round of tests. You'll find more details in our free report, "Apple MacBook Air: First Look" on ConsumerReports.org. —Ed.]

—Donna Tapellini

Macworld 2008: Some software and audio odds and ends

Some MacWorld miscellany, beginning with four operating-system/software entries:

Improvements to MS Office. I said earlier in the week I'd say something about the new MS Office 2008. The features are more or less in parity with the Office 2007 product that's been out for a year, now. Entourage plays better with Exchange Server, to address concerns about corporate distribution, and I was assured by the lead developer for Word08 that the "Normal" file, a file that holds all of your custom stylesheets translates fully from older versions. The only other thing to note here is that with Office08, virtually every major Mac application suite has made the transition to Universal Binary code base and is Intel-native. That means there's no longer any need for Rosetta, the built-in code translator between G5 Mac processors and Intel Windows processors.

A new Windows on Mac option. Another interesting entry in the "virtualization" competition comes from Codeweavers, who were demoing their "Crossover" product. Crossover allows someone who wants to switch to Mac and still protect their Windows software investment to actually install and run their legacy Windows programs natively in OS X; no virtual disk image or Windows OS is required. The downside is that this capability has to be customized by Codeweavers for each legacy Windows application. Consequently, the company has concentrated on a limited list of only the most used Windows apps to date, like MS Office, Access, Visio, etc. (You'll find the list of supported apps at http://www.codeweavers.com/compatibility/.) The result is very fast and responsive. If you use those apps, this could be of real value.

MacWorld 2008: Will Macs Become Less Secure?

With Mac sales up, and many new users coming to the platform, will malware writers begin to seek fresh targets? I asked the chief technologists at security companies Intego and McAfee what they saw as the primary threats to the Mac platform, both today and looking ahead.

While both agreed that Mac OS X is solid when it comes to security, they also fear that malware attacks on the Mac are inevitable—it's just a matter of when.

According to George Heron, the chief scientist at McAfee, 35% of the malware currently threatening computer users has been discovered in the past two years. In 2002, there were about 100 new detections a week. By 2007, that number had skyrocketed to 2000-plus. That's probably because the profile of cyber-criminals has changed. It's not about impressing your fellow geeks with your virus-writing prowess anymore. Today, money rules in the cyber-underworld, with malware going after financial information, credit cards, and bank accounts. Large, well-organized, highly sophisticated hackers design spam and phishing scams on a massive scale, largely operating out of China, Brazil, Russia, and the Middle East, according to Heron. More Macs in the marketplace means a growing profit opportunity in a highly profitable industry that steals billions worldwide.

Intego's Jack Nahan told me that the biggest threats to Mac users going forward are phishing, trojans, and ID theft. The two most interesting and insidious to date have been a scam where the user is invited to download a supposedly friendly new piece of anti-virus shareware called "Macsweeper" (it installs a trojan), and a "screen scraper" app that comes off the Web and never resides locally. It just copies whatever is on the user's screen (including banking information) and returns it to the scammer.

For more information on how to protect your computer (Mac or PC) and your information while online, check out these free resources on ConsumerReports.org:

• Cyber-security Central
• Best ways to stay safe online
• Best security software

And if you subscribe to ConsumerReports.org, you'll have access to:

• CR's latest Ratings of security software suites
• CR's latest Ratings of antivirus software
• CR's latest Ratings of antispyware software
• CR's latest Ratings of antispam software

—Thomas A. Olson

MacBook Air: Some closer looks

A Consumer Reports colleague (Joyce Ward) and I met privately with Apple reps Tuesday afternoon for a personalized demonstration of the MacBook Air and other products. It was fun to take a closer look at these new offerings, even if just for a short time.

They say the MacBook weighs three pounds, but it honestly didn't feel even that heavy when I held it in my hand—it seemed lighter somehow. The screen was bright, the keyboard a joy to touch, and the trackpad "touch" software had specific settings for one-, two-, and three-finger operation. One finger can click, drag, or double-click. Two fingers flip, rotate, magnify, or minimize images or web pages by using a "pinching" motion. Three fingers let you "slide" from page to page, image to image. This software utility is currently fully compatible only with the Leopard Finder, Safari Web browser (seen on a Windows XP machine at left), and most of Apple's "iApps." Expect third-party support in the future.

Of course, one of the first things that came to mind when seeing the MacBook Air was, "How's this battery deal gonna work?" In case you hadn't heard, the battery in the MacBook Air is not user-replaceable. As a long-time traveling laptop user, that worries me. I always found having the occasional spare battery to be a good thing, especially on those extra-long excursions.

Apple insists its batteries are absolute state of the art, hold a charge very well, and have a very long life. (The 17-inch MacBook Pro's battery lasted 5.25 hours in our latest tests.) Nevertheless, Apple will try to ease your worries with a Battery Replacement Program: Bring your MacBook Air to the nearest Apple store, and the techs will replace the battery (while disposing of the old one in an environmentally responsible manner). Total cost: $129, the same as a new battery you would replace yourself in other models. In addition, more and more airlines today offer laptop power ports on their planes, and both Apple and third parties sell adapters. So as time goes on, the need for having all that extra battery power handy is becoming less necessary. (It was unclear whether this Apple store program was a "while you wait" service, or a "drop it off and pick it back up tomorrow" sort of thing. Time will tell.)

Apple's goal with the MacBook Air was to design a sleek laptop without most of the tradeoffs associated with ultra-portables. The full 13.3-inch backlit LED screen with 1280 x 800 widescreen resolution bears this out, as does the standard MacBook keyboard and an oversize trackpad that supports the one-, two-, and three-finger multi-touch technology used on the iPod Touch and iPhone. Nevertheless, for power users, there are some tradeoffs: There's only one USB port, no Firewire, no DVD, and the custom battery.

Which led to my next question for the Apple folks:  What if you're on the road, your Time Capsule (seen at right) is at home, and your system has a meltdown? Low odds, mind you, but there it is, coming from a geek who can't be too paranoid. They recommended two solutions. The first, of course, is to carry that $99 external DVD drive and your install disk with you. Another possibility is to install, from that disk, a copy of the Remote Disk application on someone else's Mac (or PC!) with a wireless card. Then you can piggy-back on their CD drive and run the installer to restore your hard disk. Clever, but all you're doing is imposing on a friend's good will—sooner or later you'll have to connect to some physical media to restore your system.

Next up in our interview session was the "Time Capsule" wireless backup solution. Security was my main worry with this product, so I asked our Apple reps: Should I be concerned with potential man-in-the-middle attacks when wirelessly backing up your hard drive? Not necessarily. Time Capsule is essentially a full Airport Extreme base station (a fancy term for "wireless router") combined with a server-class hard drive. It supports all the wireless security protocols found in any other wireless router, including WPA and WPA2. That was the answer I was looking for, but it was still unclear how simple that would be to set up for the uninitiated. It's not normally much fun for those who do it for a living. All that wireless security is well and good, but sometimes to an old school guy like myself, there's nothing more secure than a good honest wire, and fortunately for me, Time Capsule has three gigabit-Ethernet ports included. (See image at left.) But of course, that does me no good with the MacBook Air, which has not a single Ethernet port built-in.

—Thomas A. Olson