An anonymous reader writes "Last week Valve made an interesting but seemingly innocuous announcement: they're giving game developers control of their own pricing on Steam. Nicholas Lovell now claims that this has effectively kicked off a race to zero for PC game pricing. He says what's starting to happen now will mirror what's happened to mobile gaming over the past several years. Quoting: 'Free is the dominant price point on mobile platforms. Why? Because the two main players don't care much about making money from the sale of software, or even In-App Purchases. The AppStore is less than 1% of Apple's revenue. Apple has become one of the most valuable companies in the world on the strength of making high-margin, well-designed, highly-desirable hardware. ... Google didn't create Android to sell software. It built Android to create an economic moat. ... In the case of both iOS and Android, keeping prices high for software would have been in direct opposition to the core businesses of Apple (hardware) and Google (search-related advertising). The only reason that ebooks are not yet free is that Amazon's core business is retail, not hardware. ... Which brings me to Steam. The Steambox is a competitor to consoles, created by Valve. It is supposed to provide an out-of-the-box PC gaming experience, although it struggles to compete on either price or on marketing with the consoles. It doesn't seem as if Steam is keen to subsidize the costs of the box, not to the level that Microsoft and Sony are. But what if Steam's [unique selling point] was thousands or tens of thousands of games for free?'"
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schwit1 writes in with this story about Facbook's questionable ads including webcam modeling and diet drugs. "Sophie Bean, 14, of Sequim, Wash., said she was thought she was 'liking' a Facebook ad related to fashion modeling. Instead, it promoted a Facebook page that recruited adult webcam models. 'I just thought it was for modeling, and I'm interested in that, and I thought it would help me out,' Sophie said. Sophie wasn't the only teen connecting with the page, which Facebook statistics show is most popular with users 13 to 17. Clicking on it didn't pull the teens into nude webcam modeling, but did mean they would receive the page's updates and could be mentioned in future versions of the ad."
An anonymous reader writes "Microsoft is exploring whether to release a free version of Windows to increase the number of computers using the latest operating system. Currently the company seems to be testing a new version of the OS called 'Windows 8.1 with Bing', which will include Microsoft's key modern apps and services."
Nerval's Lobster writes "Flappy Bird might be kaput, but its hilariously awkward hero is serving another useful purpose in its afterlife: teaching people how to code. Flappy Bird, a free mobile game for Android and iOS that asks the player to guide the titular avian through an obstacle course of vertical pipes, became a sensation earlier this year, seizing the top spots on the Apple and Google Play app stores. Its creator, Dong Nguyen, said the game earned him an average of $50,000 a day through in-app advertising — but that didn't stop him from yanking the game offline in early February. Now Code.org has resurrected Flappy Bird, Phoenix-style, from the smoking wreckage, with a free tutorial that allows anyone with a bit of time to code his or her very own version of the game. There's no actual code to learn, thanks to a visual interface that allows budding developers to drag 'blocks' of commands into place. 'Flappy Bird recently met its untimely death. We might've been tempted to cry all day and give up on spreading computer science (not really, but R.I.P Flappy Bird),' read a note on Code.org's blog. 'Instead, we built a new drag-and-drop tutorial that lets you build your own Flappy game — whether it's Flappy Bird, or Flappy Easter Bunny, Flappy Santa, Flappy Shark with Lasers, Flappy Fairy or Flappy Underwater Unicorn.' Childish? Maybe. But it could help draw people into coding for fun or profit."
bfwebster writes "During the past few years, I served as an IT expert witness in BanxCorp v. Costco et al., in which BanxCorp sued Costco and Capital One for citing (with credit) its web-published national averages for CD and money market rates in their advertising. Judge Kenneth M. Karas issued his summary judgment opinion last fall, finding that BanxCorp's published averages are 'uncopyrightable facts' due to the simple calculation involved and the lack of ongoing human judgment in what banks were involved. Here is my summary of his findings, along with a link to the actual ruling."
Nerval's Lobster writes "Facebook CEO Mark Zuckerberg decided to drop a cool $16 billion on WhatsApp, a messaging service with 450 million users. It was a mind-boggling sum, even if you buy into Facebook's argument that WhatsApp (which will continue to operate as an independent subsidiary, at least for the moment) will soon connect a billion people around the world. But it wasn't the biggest tech acquisition of all time: that honor belongs to Hewlett-Packard, which bought Compaq for (an inflation-adjusted) $33.4 billion in 2001. Facebook's purchase of WhatsApp comes in second on the list, followed by Hewlett-Packard's purchase of Electronic Data Systems for $15.4 billion; Google's acquisition of Motorola Mobility for $13 billion, and Oracle snatching up Peoplesoft for $12.7 billion. In sixth comes Hewlett-Packard again, with its Autonomy buy in 2011 (for $11.7 billion), followed by Oracle's BEA Systems acquisition ($9.4 billion) and Microsoft seizing Skype ($9.0 billion). What do many of these highest-cost purchases have in common? Many of them didn't pan out. Hewlett-Packard's Compaq, Autonomy, and EDS acquisitions, for example, made all the sense in the world on paper, the tech giant eventually took significant write-downs on all three (Autonomy in particular was an outright disaster, resulting in a $8.8 billion write-off and widespread allegations of financial and management impropriety)." Update: 02/20 19:32 GMT by T : Of interest: Mother Jones has an interesting take on the seeming mismatch between Facebook's business model and the way the WhatsApp founders think about advertising. Hint: they hate it.
Mozilla has announced a new initiative to show sponsored content within the Firefox browser. Currently, opening a new tab in Firefox will display a set of nine tiles showing your most commonly visited websites. When a user installs Firefox and opens it for the first time, they see these tiles, but eight of them are blank (one links to a Firefox tutorial). As the user browses the web, those tiles gradually fill in with visited sites. But Mozilla is going to fill out those blank eight tiles for new users. They say, "Some of these tile placements will be from the Mozilla ecosystem, some will be popular websites in a given geographic location, and some will be sponsored content from hand-picked partners to help support Mozilla’s pursuit of our mission. The sponsored tiles will be clearly labeled as such, while still leading to content we think users will enjoy." Existing users shouldn't see any difference, and the tiles will be replaced with commonly-visited sites like they do now.
AmiMoJo writes "Google has agreed to display competing site's results along side those from its own products in search results. The agreement comes as part of an EU investigation into Google's domination of the search market and its promotion of Google products at the top of each page. The EU has published screenshots (scroll down) showing how the changes will look once rolled out." Part of the deal includes Google avoiding any fines. The appearance changes to search results are minor; Google services in the results are more strongly highlighted as such, and links to alternative services are provided (e.g. Yelp for Google Local results). Less visible are the major changes: third parties will be able to opt-out of having their data used for specialized Google searches, and "Google proposes no longer to include in its agreements with publishers any written or unwritten obligations that would require them to source online search advertisements exclusively from Google ... [or] to impose obligations that would prevent advertisers from porting or managing search advertising campaigns across competing advertising platforms."
samzenpus writes "Every year companies are willing to dish out big bucks to reach tens of millions of consumers with their Super Bowl ads. With an average price tag of $4 million for a 30-second commercial, this year is no exception. We've seen: beer obsessed frogs, field goal kicking horses, celebrities drinking various beverages, explosions of all sizes, homages to 1984, and day trading babies in the past. Since talking about the commercials has become almost as popular as the game itself, here's a place to do just that. What have you liked and what do you think would have been better left on the cutting room floor."
theodp writes: "Apple has recently disclosed a pending patent for Inferring User Mood Based on User and Group Characteristic Data, which has received surprisingly scant attention from the press even though it ups the ante for privacy intrusion. The brainchild of iAd team members, Apple boasts its invention will make it possible to 'charge a higher rate for mood based content delivery' by scrutinizing 'channel characteristics, demographic characteristics, behavioral characteristics, spatial-temporal characteristics, and mood-associated characteristics.' Apple further explains: 'Mood-associated physical characteristics can include heart rate; blood pressure; adrenaline level; perspiration rate; body temperature; vocal expression, e.g. voice level, voice pattern, voice stress, etc.; movement characteristics; facial expression; etc. Mood-associated behavioral characteristics can include sequence of content consumed, e.g. sequence of applications launched, rate at which the user changed applications, etc.; social networking activities, e.g. likes and/or comments on social media; user interface (UI) actions, e.g. rate of clicking, pressure applied to a touch screen, etc.; and/or emotional response to previously served targeted content. Mood-associated spatial-temporal characteristics can include location, date, day, time, and/or day part. The mood-associated characteristics can also include data regarding consumed content, such as music genre, application category, ESRB and/or MPAA rating, consumption time of day, consumption location, subject matter of the content, etc. In some cases, a user terminal can be equipped with hardware and/or software that facilitates the collection of mood-associated characteristic data. For example, a user terminal can include a sensor for detecting a user's heart rate or blood pressure. In another example, a user terminal can include a camera and software that performs facial recognition to detect a user's facial expressions.' Your move, Google!"
Nerval's Lobster writes "Rovio Entertainment, the software company behind Angry Birds, denies that it knowingly shares data with the NSA, Britain's GCHQ, or any other national intelligence agency. But that didn't stop hackers from briefly defacing the Angry Birds website with an NSA logo and the title 'Spying Birds.' Rovio's troubles began with a New York Times article that suggested the NSA and GCHQ had installed backdoors in popular apps such as Angry Birds, allowing the agencies to siphon up enormous amounts of user data. The Times drew its information from government whistleblower Edward Snowden, who has leaked hundreds of pages of top-secret documents related to NSA activities over the past few months. 'The alleged surveillance may be conducted through third party advertising networks used by millions of commercial web sites and mobile applications across all industries,' Rovio wrote in a statement on its website. 'If advertising networks are indeed targeted, it would appear that no Internet-enabled device that visits ad-enabled web sites or uses ad-enabled applications is immune to such surveillance.' The company pledged to evaluate its relationships with those ad networks. The controversy is unlikely to dampen enthusiasm for the Angry Birds franchise, which has enjoyed hundreds of millions of downloads across a multitude of platforms. It could, however, add momentum to continuing discussions about the NSA's reach into peoples' lives."
theodp writes "Probably not the most fortuitous timing, but the USPTO has granted Google its wish for a patent on Transportation-Aware Physical Advertising Conversions, a system that arranges for free or discounted transportation to an advertiser's business location that will be more or less convenient based upon how profitable a customer is deemed. It's reminiscent of the free personal chauffeured limousine rides long enjoyed by Las Vegas casino 'whales', but at scale and using cars that may not have drivers. A server, Google explains, 'arranges the selected transportation option, for example, by dispatching a vehicle or providing instructions for using public transportation.' So, it seems a Larry or Sergey type might expect to be taken gratis to the Tesla dealership via a private autonomous car or even helicopter, while others may get a discount on a SF Muni bus ride to Safeway. Google also describes how advertisers will be able to use a customer's profile 'to exclude a customer from being considered for an offer based on exclusion criteria identified by a business,' such as age, job title, purchasing history, clothing size, or other 'desirable' characteristics."
schneidafunk writes " Dear subscriber, you are registered as a participant in a mass disturbance.' was the message sent to thousands of protesters as a new law prohibiting public demonstrations went into effect." From NYTimes: "... Protesters were concerned that the government seemed to be using cutting-edge technology from the advertising industry to pinpoint people for political profiling. Three cellphone companies in Ukraine ... denied that they had provided the location data to the government or had sent the text messages, the newspaper Ukrainskaya Pravda reported. Kyivstar suggested that it was instead the work of a 'pirate' cellphone tower set up in the area."
waderoush writes "An Xconomy column [Friday] suggests that Google is getting too big. When the company was younger, most of its acquisitions related to its core businesses of search, advertising, network infrastructure, and communications. More recently, it's been colonizing areas with a less obvious connection to search, such as travel, social networking, productivity, logistics, energy, robotics, and — with the acquisition this week of Nest Labs — home sensor networks and automation. A Google acquisition can obviously mean a big payoff for startup founders and their investors, but as the company grows by accretion it may actually be slowing innovation in Silicon Valley (since teams inside the Googleplex, with its endless fountain of AdWords revenue, can stop worrying about making money or meeting market needs). And by infiltrating so many corners of consumers' lives — and collecting personal and behavioral data as it goes — it's becoming an all-encompassing presence, and making itself ever more attractive as a target for marketers, data thieves, and government snoops. 'Any sufficiently advanced search, communications, and sensing infrastructure is indistinguishable from Big Brother,' the column argues."
Slashdot contributor Bennett Haselton writes: "Facebook settled out of court over displaying ads that told you which of your friends had 'liked' a product or service, and another lawsuit is currently pending over the use of minors' pictures specifically in similar ads. (Not to be confused with another recently filed lawsuit alleging that Facebook converts private messages into public 'likes'.) Google+ tried to limit its liability by only showing the faces of users over 18 when showing which friends 'like' a page. I'm all for more privacy for social networking users, and if it's true that Facebook has been silently marking users as publicly 'liking' a page because they mentioned the page in a private message, the plaintiff's lawyers ought to clean them out for that one. But in cases where you willingly and knowingly 'liked' a page, Facebook and Google+ ought to be able to tell that to your friends in advertisements, without being sued for it." Read on for the rest of Bennett's thoughts.
wjcofkc writes "Thousands of users have been affected by malicious advertisements served by ads.yahoo.com. The attack, which lasted several days, exploited vulnerabilities in Java and installed malware. The Netherlands based Fox-IT estimates that the infection rate was at about 27,000 infections per hour. In response to the breach in security, Yahoo issued the following statement, 'At Yahoo, we take the safety and privacy of our users seriously. We recently identified an ad designed to spread malware to some of our users. We immediately removed it and will continue to monitor and block any ads being used for this activity.' While the source of the attack remains unknown, Fox-IT says it appears to be 'financially motivated.' The Washington Post cites this incident as a reminder that Java has become an Internet security menace."
cold fjord writes "Computing reports on a U.K. survey: 'Governments remain the organizations most trusted by the public to handle personal data, despite revelations about surveillance and data collection schemes by the U.S. National Security Agency (NSA), the U.K.'s GCHQ and other governmental organizations around the world. That's according to research by accounting and consultancy firm Ernst & Young, which suggests that more than half of people — 55 per cent — say they're comfortable sharing personal information with central government organizations ... However, consumers are more wary about sharing their data with private companies. Just one-third told Ernst & Young that they're willing to share personal information with financial institutions, while one-quarter are happy to do so when it comes to their energy provider. Only one-fifth of those surveyed said they're comfortable sharing personal data with supermarkets. ... it was web firms that people were most claimed to be wary of sharing information with — fewer than one-in-10 said they were comfortable about sharing data with social networks, such as Facebook or web search engines like Google.'" Meanwhile, a pair of researchers have assessed the NSA's data gathering scheme and found, unsurprisingly, that it's probably not very cost effective (PDF). "Conceivably, as some maintain, there still exist some exceptionally dim-witted terrorists or would-be terrorists who are oblivious to the fact that their communications are rather less than fully secure. But such supreme knuckle-heads are surely likely to make so many mistakes — like advertising on Facebook or searching there or in chatrooms for co-conspirators — that sophisticated and costly communications data banks are scarcely needed to track them down."
Kimomaru writes "Two Facebook users are trying to start a class action lawsuit against Facebook for allegedly mining information from private messages with the intention of selling is to advertisers (full complaint PDF). It's not the first time a social medial player has been in the press over privacy or security issues. But when the services are provided free of charge, does the user have a realistic expectation of privacy or security, especially when it's understood that the user's data is being mined for advertising? If not, should social media networks be allowed to use words like 'private' (as in private messaging) or 'security' to describe their services?"
zacharye writes "As Google's share price soars beyond $1,100, it seems like nothing can stop the Internet juggernaut as its land grab strategies continue to win over the eyes of its users and the wallets of its advertising clients. But an analysis published over this past weekend raises an interesting question surrounding a new business model that could someday lead to Google's downfall. Do we want an erasable Internet?"