Archive for February, 2010

Weekly News Roundup (28 February 2010)

Sunday, February 28th, 2010

Having had more time to think about Ubisoft’s excessive DRM, I wanted to write a detailed analysis that provides a balanced look at both sides of the DRM debate, and perhaps try to find in the middle-ground, a solution that can prevent piracy (more importantly, make game companies feel more secure when it comes to preventing piracy), but also won’t affect the legitimate gamers. But I was feeling a bit lazy so I didn’t write it. However, I did promise that I would do a PS3 MKV playback guide, using mkv2vob, and that’s what I did do. It’s a useful guide and I’ve already used it twice this week to get downloaded MKV files (legal of course) to play on my PS3. I’m also planning another PS3 related guide to be up within the next two to three weeks. As for news, there’s a good sprinkling of it, so let’s get to it.

Copyright

Let’s start with copyright news. After losing a landmark case, the AFACT (aka the Australian MPAA) came out of shock and decided as a first measure to reduce the amount of cost they have to pay, claiming that for the parts of the case that they won, they shouldn’t have to pay. But that was just the appetizer. The main course was filled right on deadline day, and the AFACT will seek to appeal the Australian Federal court’s decision.

None of this is really of any surprise, but the AFACT, backed by Hollywood, has practically unlimited funds at their disposal thanks to Hollywood studios’ record breaking profits (no thanks to “massive” piracy), and they were never going to let such a decision stand without challenge. Lose here, and they will have a tough time getting their beloved “three-strikes” system to roll out – I mean, if the ISP is not responsible for authorising piracy, then why should they bare the burden of monitoring and cutting off suspected pirates, and leave the likes of the AFACT with nothing left to do other than receiving the benefits of this arrangement? And also considering the fact that “massive piracy” may be partially caused by the lack of innovation (and maybe even the deliberate attempt to kill off innovation – see Blockbuster Australia news below), the AFACT have no right to ask iiNet to do anything without at least coming up with the cash to do it.

So it’s judge lottery, and if the iiNet can roll a hard six and get another tech savvy judge, then the appeal will fail. If not, then anything could happen.

Rapidshare logo

Is Rapidshare becoming a popular destination for pirated content?

To another important court decision, a Hamburg court has ordered file sharing website Rapidshare to clean up its act and remove digital books that have been uploaded and shared illegally, and also to prevent future offences from occurring somehow. With all the focus on BitTorrent, it’s easy to forget that straight HTTP piracy still occurs, and websites like Rapidshare, who host the content rather than just link to a torrent file, do often have a large repository of pirated files. There’s also Usenet, which is another popular source for piracy. The solution that Rapidshare may have to put in would be some kind of file scanning and filtering services, to block suspected copyrighted content from being uploaded. This would be very much hit and miss, with a high false detection rate, and I wonder if it is possible to bypass it through clever file naming (ie. use random characters, as opposed to a descriptive name) and encryption – this would make files harder to search for, but if there’s another website that links to and organises these files, then they don’t need to be easily found through searching.

And going to another court case, this time in Norway, but unlike the other cases, even the verdict in this case seems to be a big secret. The case involves the upload of a movie and a lawfirm’s insistence on an ISP to give out subscriber details based on an IP address they obtained. A judge has issued a verdict, but whatever the decision, which remains a secret, it is being appealed by someone. In any case, the IP address may not even belong to the first uploaders of the movie, rather, it might just be a secondary uploader. It’s always harder to find the original uploaders, who usually go by a scene/group name and can be illusive to track. While secondary uploaders are much easier to find and prosecute. One might argue that the reason all these lawsuits have been relatively unsuccessful in stopping piracy is because they’re not really going after the major players, only the minor and easier to get targets, such as a secondary uploader, or your single mother and student downloaders. Even going after the bigger torrent websites may not be effective, since these are easy to set up and you’re still not getting to the source of the pirated content. For those who have watched The Wire, there are some parallels with the War on Drugs and the War on Downloads. Going after downloaders seems to be the equivalent of doing street-level rips, buy-busts, while bringing down torrent websites is just like bringing down a corner – another one pops up the next day (or the same one, with a different group running it). Going after secondary uploaders is then like going after the mid level operators, a little bit more effective, but still not getting anywhere near the source. Or maybe they just need to set up a digital version of Hamsterdam.

Pro copyright group tries to link open source to anti-capitalist activities

And we might just have some sympathy for pro copyright groups if they didn’t come up with ridiculous things to justify their little war. The latest is the IIPA, the umbrella group for the likes of the RIAA, MPAA and BSA, saying that open source leads to communism (which gives me yet another opportunity to bring out *that* made up poster again). The IIPA is attacking governments that promote the use of free open source software, saying that all this free stuff makes people forget to pay for things and therefore leads to the downfall of capitalism and eventually democracy. Or something. And their lobbying has seen Canada become an enemy of capitalism, to be joined by the likes of India (world’s largest democractic country) and perhaps soon, the UK as well. Having had a look at the software section here at Digital Digest, just over half of the software we list are freeware or open source, so I guess Digital Digest is an enemy of capitalism as well. Looks like our secret has been discovered, comrades.

And then we had RIAA’s CEO likening the recent hack of Google by Chinese hackers to people downloading free music, and using this to attack Google for not being friendly enough to the RIAA’s demands. The logic behind this is that Google being hacked and some of their source code being stolen is IP theft, just like music downloads, and that the Chinese government’s reluctance to crackdown on “patriotic hackers” is the same as other government’s reluctance to introduce three-strikes, and this allows the RIAA to point at Google and do the infamous The Simpson’s Nelson “Ha Ha”. I’m sure I don’t need to point out the large chasm of difference between the fairly passive act of downloading music that’s been made available illegally online (by someone else), and the fairly non passive act of hacking Google. And is the Chinese government’s actions, mainly motivated by political and military aims, really the same as other government’s concerns over three-strikes being unconstitutional? In the RIAA’s eyes, anything can be justified, it seems.

Some of the governments that don’t like three-strikes still want to maintain their self governing rights as to not be forced to adopt it as part of a global copyright treaty. And it is this concern that has the EU coming out against having a three-strikes provision as part of the ACTA agreement, that’s been negotiated mostly in secret. Did the RIAA and MPAA really think they can force something as controversial as this on every single country in the world and not face some objections? Well, they can just classify those who don’t go along as enemies of capitalism, I suppose.

One government that’s not so against the idea of three-strikes is the UK government, which is still debating what to add to their Digital Economy Bill, the bill that the big players  in the digital economy (Google, Yahoo, Facebook, eBay) hates. And the side effect of having a three strikes system is that it places burden on ISPs and Internet service operators to monitor their customers, and this will include the likes of libraries and cafes that offer public Internet services, like free Wi-Fi hotspots. But monitoring these connections will be almost impossible, due to the high turnover of customers, not to mention privacy concerns, and it could forces these services to be shut down, which I’m sure will do wonders for the digital and non digital economy. All this while UK consumers are more confused than ever over existing copyright laws that don’t really make much sense to them as well. It is illegal to rip CDs to your iPod or portable music player, despite everyone doing it and in most cases having no negative effect for copyright holders. Of course, if people were prevented from ripping their CDs and forced to buy a new digital copy of all their songs, then yes, copyright holders would get more money, but that’s like thinking about the money lost currently if each song could be made to cost $10,000 to buy. Why not just make consumers buy the song every time they want to hear it, for $100,000 each time, that could even make more money. Your product is only worth as much as people are willing to pay for it, never forget.

High Definition

In HD news, Adobe has released another beta version of Flash Player version 10.1. This long awaited release, with no official final release date, will add GPU assisted decoding for the playback of Flash H.264 content, which is very much needed at the moment due to the increasing popularity of 720p and 1080p videos, and the fact that even desktop CPUs sometimes struggle with 1080p videos without GPU assist.

ASUS Eee PC 1201HA

Flash Player 10.1 Beta 3 adds Intel GMA 500 acceleration support, enabling netbooks such as this Asus Eee PC 1201HA, to play HD H.264 Flash video without skipping

The new beta adds acceleration support for Intel GMA 500 integrated GPUs, which is important because quite a few Netbooks, CULV laptops and hybrids use this chipset, and with their less than powerful CPUs, GPU assisted decoding in the only way to get HD H.264 to play with any sort of decent framerate.

The other news item, that I referred to earlier before, is about the head of Blockbuster Australia (and the Video Ezy rental chain), Paul Uniack, basically saying that Hollywood studio greed is killing the video download business. We all suspected that may be the case, but it is interesting to see someone in the business confirm it so clearly. Uniack says that studios are not pricing downloads fairly, and that studios are asking for as much as 70% of the revenue for doing nothing other than allowing the sale or rental of the digital format. He also believes that the studio’s arrogance may be their downfall, as it is similar to the attitude of the music labels before “digital downloads and piracy destroyed them”. Blockbusters Australia had an agreement with TiVo to produce downloads, but has since had to pull out due to lack of support from studios. I don’t know if studios are doing this on purpose, that if they’re afraid of opening the digital floodgates, unsure of the eventual outcome. Maybe they’re just greedy or short sighted enough not to be able to see the potential of digital. I believe they will eventually change their minds on this matter, but it might already be too late for them by then.

Not much in gaming news, so skipping the section yet again this week.

See you next week.

Weekly News Roundup (21 February 2010)

Sunday, February 21st, 2010

Another relatively quiet week. Which is why the release of the NPD January US video games sales figures was timely, since it allows me to pad this WNR with a few more words than otherwise about the analysis. With stats now available spanning a two year period, it was interesting to compared January of 2008 with that of 2010, and to find that the PS3 only managed a 3% sale increase in that time. The reason Sony are still happy is because 2009 was best forgotten in terms of PS3 sales, and so 2010 seems like the best year ever, and it is, but only by 3%. The economy might have something to do with the small size of the increase, but consider the fact that the Xbox 360 managed a 45% increase with the same comparison, suggesting there’s still some time to go before Sony should start the celebrations, especially with the alarming decline of both the PS2 and the PSP. But with a good lineup of PS3 exclusives, Sony might not have to wait too long to declare themselves the winners (which is different to “being declared the winners”). The Wii continues its steady decline, having received a (what seems temporary) reprieve in December. Anyway, on to the news.

Copyright

In copyright news, The Pirate Bay may still be open, despite lawsuits, seizures and various other tactics, but it’s not stopping anti-piracy agencies from still going after its members. This time, it was the Danish Antipiratgruppen that went after a Danish TPB user, who had done the terrible thing of uploading 4 movie torrents.

The user’s home was searched, equipment seized, and the Antipiratgruppen declared the operation as stopping a “big fish” from committing “massive piracy”. Antipiratgruppen apparently found more material than they had expected, so it seems their fishing expedition had paid off with a catch, although just exactly what they found nobody knows at the moment. Is it beyond agencies like Antipiratgruppen to talk up their seizures when in reality they’ve found very little? No it isn’t. On a similar theme, Nintendo recently went after a man in Australia for leaking the game New Super Mario Bros. Wii a week earlier than the official release date. The man pleaded guilty and was fined $USD 1.3m. The only thing uploaded was a copy of the game DVD, which was still uncracked and so was not usable, but that was enough.

Moving on to the war against ISPs (new strategy in content owners fight again online piracy), NBC Universal Vice President Richard Cotton says that ISPs should filter out illegally uploaded copyrighted content just like how they filter out viruses. The thing is, I’m not even aware that ISPs filter out viruses, or at least not successfully, since many people, if not most, still get sent them via emails or get infected through web pages. Sure, they block attacks and probes, but these are attacks aimed at their own networks – home users still have to install firewalls to protect their own networks, for example. And when email filtering is activated, there is almost always a way to deactivate it or still allow “suspected” emails to go through with a tag added for easier identification, because false positives are still quite common and nobody wants real emails to get blocked. Just like nobody wants real, legal content to get blocked, which is a distinct possibility if ISP level filtering were introduced. The content owners seem to want everyone else to take responsibility for online piracy except themselves, even though they may be the ones most responsible for the increase in popularity of online piracy, thanks to outdated pricing models, lack of online services and excessive DRM.

Assassin's Creed II PC

Ubisoft's new DRM, which comes with Assassin's Creed II on the PC, may drive gamers to piracy

Speaking of excessive DRM, Ubisoft’s new approach to DRM, which was mentioned here a few weeks ago, is even worse than first thought. Some reviewers that managed to review Assassin’s Creed II on the PC, one of the first games to feature the new DRM along with Silent Hunter 5 and Settlers VII, were shocked to discover that not only is online authentication required, it is required for virtually every second of gameplay. In other words, it’s not just the type of online authentication you find at Steam where you need to do it whenever you start the game, this new DRM requires that you connect to the Ubisoft servers every single second the game is running (and there’s no offline mode either, so no Internet = no game). And if for one second, you connection to the Ubisoft server dies (or if the Ubisoft server dies), then you are kicked back to the main menu and you lose all unsaved progress, at least for Assassin’s Creed II. Upon hearing the news, I thought that this may be just a temporary issue, one that Ubisoft would address. Address they did, by saying that this is all intentional and if you don’t like it, blame the pirates. Blame them, or join them? Now, I would never advocate pirating a game, because a lot of people have put a lot of work into it and they expect to be paid just like you would, but it seems that the only way to get any sort of decent experience out of these games is to go with the pirated version. Ubisoft has turned a moral and legal decision into one of necessity. Having had a look at Ubisoft’s incredibly long FAQ page about this DRM platform, all the usual questions are covered such as what happens if Ubisoft’s authentication servers are down. The answer they give is that, well, it won’t go down because they’ve got people monitoring it and stuff. Big websites like Google and Microsoft can go down and do go down, so do we really expect Ubisoft, a company that has had a dubious record when it comes to hosting gaming servers, to not fail? And fail they have, judging by the backlash they’ve received, and the series of funny YouTube videos mocking their new DRM system (see Das DRM Part 1, 2 and 3, as well as the obligatory Downfall Hitler parody). And on the question of why there isn’t an offline mode, the answer is simply that if they did, then the constant authentication system wouldn’t work anymore.

What Ubisoft is advocating is the end of PC game ownership. Instead of buying a game and playing it the way you want to, you are now only leasing it from Ubisoft and they tell you when and when you can play the game. Once Ubisoft finds 24/7 monitoring of their servers too expensive, especially for older games, they can simply remove support for such games and you’re left with a useless box of junk. On their FAQ, Ubisoft promises to release a patch to solve this problem if they ever remove support for the game, but all that tells us is that they do in fact plan to stop supporting games in the future, and that gamers will have to be relying on a company to release a patch for an old game in order to keep on playing it. Anyone who has failed at finding a patch of a five year old game that no longer works in Windows 7, and with no response from the publishers other than “sorry, the game’s too old to be supported”, will know what’s in store for potential Ubisoft customers. I’m hoping Ubisoft’s extreme actions will prompt a extreme response from consumers, and hopefully lead to the eventual downfall of PC DRM, much like how EA’s Spore has made EA a bit more friendlier in terms of DRM. In the end, all this does is to punish those that actually purchased the game. The people who pirate may get a version that doesn’t do this at all, and will play happily never worrying about their Net connection dying in between saves. The situation is very similar the one with those un-skippable trailer on DVDs and Blu-ray’s (see this illustration that has been circulating around the net about piracy versus pay), which you had to admit is a lot less annoying that this Ubisoft thing. There was a story last week about whether game publishers are encouraging piracy, and I said I wasn’t sure about that, but in this case, then you have to say that Ubisoft is encouraging piracy like no other company has done before, by making the pirated version the most user friendly and enjoyable version available.

By comparison, console games have a lot less DRM, although their hardware makes it harder to play downloaded games. But that may be about to change, as Sony are testing their own DRM system which will require a complicated system of vouchers and registration. Basically, the game comes with a voucher that needs to be redeemed online if you want to play online. If you purchased a second hand copy of the game, then you’ll have to buy a new voucher for $20. Just like the Ubisoft DRM, this plan seems to have unintended or intended consequence of killing off the second hand games market (Ubisoft’s new DRM games can’t be re-sold).

High Definition

Moving onto HD, Blu-ray has been slow in terms of PC and Laptop adoption, but that may soon change with MSI pricing a Blu-ray, Intel Core i3 laptop for less than $700.

Sony's OLED TV

Sony's OLED TV: Thin, beautiful, but really really (really) expensive

Now, that may still seem expensive compared to a Blu-ray player, but you do get a laptop too, even if the screen is not 1080p (but it does have an HDMI output, to connect to your HDTV). I’ve seen recently some super expensive gaming laptops that still come with DVD drives, and so perhaps this marks the start of a new trend, because there’s no reason why all PCs and laptop aren’t coming with Blu-ray drives (the cost has come down, Blu-ray movies are widely available, and pretty much all modern PC hardware can play Blu-ray movies without breaking a sweat).

Sony has cancelled it’s OLED screen for sale in Japan. I guess the relatively poor Japanese economy meant that hardly anyone was willing to pay $227 per inch of screen, and what would one do with a netbook like screen size anyway. Of course, Sony’s OLED TV is more of a technology test than an actual product, and I expect bigger and cheaper screens to come eventually, as I see OLED as the successor to LCD and Plasma screens.

As for gaming news, there wasn’t much, but I’ve already covered the NPD and Ubisoft DRM thing so I’ll skip this section for this WNR.

See you next week.

Game Consoles – January 2010 NPD Sales Figure Analysis

Monday, February 15th, 2010

The first figures from 2010 are out. December 2009 was a monster month for hardware sales, for the Nintendo consoles in particular. January usually means a considerable drop as the holiday sales period ends. But unlike most January’s, this one is harder to predict as we have the economy, the PS3 surge, the potential decline of the Xbox 360 and the usual stock shortage problems to contend with. The figures are from NPD, a marketing research firm that releases games console sale data every month.

The figures for US sales in January 2010 are below, ranked in order of number of sales (January 2009 figures also shown, including percentage change):

  • Wii: 465,800 (Total: 27.6 million; January 2009: 679,200 – down 31%)
  • DS: 422,200 (Total: 39.9 million; January 2009: 510,800 – down 17%)
  • Xbox 360: 332,800 (Total: 19 million; January 2009: 309,000 – up 8%)
  • PS3: 276,900 (Total: 11.4 million; January 2009: 203,000 – up 36%)
  • PSP: 100,100 (Total: 17 million; January 2009: 172,300 – down 42%)
  • PS2: 41,600 (Total: 45.3 million; January 2009: 101,200 – down 59%)
NPD January 2010 Game Console US Sales Figures

NPD January 2010 Game Console US Sales Figures

NPD Game Console Total US Sales Figures (as of January 2010)

NPD Game Console Total US Sales Figures (as of January 2010)

My prediction from last month was:

January should see huge sales drop across the board, but that’s just a seasonal thing. And as such, it’s very hard to predict the order of things, although I believe the hardware sales ordering will remain the same. On the software front, January will be largely quiet, Mass Effect 2 on the Xbox 360 should do well, and the rest of the top 10 should have a familiar look to December’s. There are some big releases coming in February and March, so consumers can take a breather in January (and save up).

January’s figures are a mixed bag really. While the ordering was largely the same, the only difference being the Xbox 360 and the PS3 swapping places, there were larger than expected drops for all the consoles. On the software front, Mass Effect 2 on the Xbox 360 did indeed do well, being a console exclusive, and the top 10 had a familiar look, although still room to add in a few new entries.

Compared to January a year ago, only the Xbox 360 and the PS3 managed sales growth. This the second January in a row that the Xbox 360 managed growth, and that’s probably largely thanks to Mass Effects 2. Last January, the PS3 actually recorded a sales drop compared to January 2008, but this January, the PS3 showed the most positive growth. But this has to be taken into context, as the PS3 was doing extremely poorly back in January a year go – take this into account, the PS3 only grew by a paltry 3% between the two January’s of 2008 and 2010 (and for the same comparison, Xbox 360 sales grew by 45%). Sony has said that stock issues were partly responsible, or will be in February at least. Whether that’s true, or it just signals the Slim/price cut led surge in sales is dissipating, we’ll have to wait until March and April’s stats come out to confirm. The Xbox 360 showed growth largely thanks to Mass Effect 2 one would guess, and sales are being kept above the PS3 thanks to strong software sales (including Modern Warfare 2) in two of the last three months.

Looking at the negatives, and there were a lot of them, the Wii continues on with its 30+% month to month drop in sales after taking a break in December. The DS also saw a drop of 17% compared to January 2009. While the PS3 managed growth, the other PlayStation consoles saw massive drops, with the PS2 dropping below 100,000 units sold for the first time since I’ve started recording figures (since September 2007). The PSP was only 100 units away from having this unwanted distinction as well. Both of these platforms are dying a slow death, the PS2 understandably (although Sony would have wanted more PS2 owners to upgrade straight to the PS3 than what is evident), but it’s the PSP that must be worrying for Sony, especially compared to the DS. And as mentioned in the 2009 year in review, the revenue increase from the PS3 doesn’t come anywhere near the revenue drop from these two consoles.

Lets move onto software. As expected, Mass Effect 2 did well, but not enough to unseat New Super Mario Bros. for the Wii, which held on to the top spot. All the usual Wii titles are in there, with only Wii Play missing out on a top 10 spot. Modern Warfare 2 is still selling relatively strong, both console versions are represented in the top 10, with the lower placed one the only PS3 title in the top 10 once again. The Xbox 360 had two more titles, making it a total of four – Army of Two: The 40th Day and Darksiders made the list at 8th and 10th. There was also a non Nintendo Wii title in the top 10 as well, with Ubisoft’s Just Dance sneaking in at 9th. The Wii needs more titles like this to be hitting the top 10 to remain viable in the long term.

Here’s the complete list of the top 10 software sales:

  1. New Super Mario Bros. Wii (Wii, Nintendo) – 656,700
  2. Mass Effect 2 (Xbox 360, EA) – 572,100
  3. Wii Fit Plus (Wii, Nintendo) – 555,700
  4. Call of Duty: Modern Warfare 2 (Xbox 360, Activision) – 326,700
  5. Mario Kart w/ Wheel (Wii, Nintendo) – 310,900
  6. Wii Sports Resort (Wii, Nintendo) – 297,600
  7. Call of Duty: Modern Warfare 2 (PS3, Activision) – 259,000
  8. Army of Two: The 40th Day (Xbox 360, EA) – 246,500
  9. Just Dance (Wii, Ubisoft) – 191,900
  10. Darksiders (Xbox 360, THQ) – 171,200

Prediction time. There are some big titles being released in February, several that will help the PS3 more than the Xbox 360, including the platform exclusive Heavy Rain, and while it’s no longer exclusive, Final Fantasy XIII should have a bigger following on the PlayStation platform than on the 360. As a result, I expect the PS3 to outsell the Xbox 360 at the very least and maybe make a run on the Wii. BioShock 2 should do well on the Xbox 360, but the usual Nintendo Wii titles should also be in the top 10.

See you next month.

Weekly News Roundup (14 February 2010)

Sunday, February 14th, 2010

It’s two occasions in one today, a happy Valentines Day and Happy Chinese New Year to everyone. There’s slight more news this week, so no need to drag a single story out to a full blog, like last week. I also wrote a new guide this week on how to get MKV files to play on your Xbox 360, using the software GOTSent. The PS3 version of the guide, which will be using mkv2vob should be up sometime next week.

Copyright

Let’s get things started with copyright news. We start with the, perhaps slightly optimistic, but potentially good news that the secret copyright treaty, the ACTA, might be in trouble.

Apparently, the various parties negotiating the treaty are failing to agree on various matters, and not all parties are keen on the secrecy part. The RIAA, MPAA and other trade organisations are no doubt busy trying to save the treaty, which could be the best thing since the DMCA in their eyes. They’ve tried to keep in a secret because the public backlash from controversial provisions (that could see people’s iPods being searched at airports for illegal downloads) would be too great. But it’s hard to keep a secret when the Internet exists. And countries typically don’t like a treaty that locks them into something too rigidly, and without rigid obedience to it, there’s really not much point in having this type of treaty.

Alice in Wonderland

Alice in Wonderland may not get shown across screens in the UK ...

Tim Burton’s new film Alice in Wonderland (HD trailer) may not be shown across the majority of cinemas in the UK due to a dispute with Disney. Disney’s plans to reduce the theatrical showing window, from 17 weeks to 12 weeks, have angered the cinema owners and they have threatened to boycott the film. Disney tried the same with animated hit Up, and cinema owners responded in the same way, but the studio backed down eventually. Studios like Disney are trying to bring films earlier to DVD and Blu-ray, as they have much more control over these formats in terms of revenue, and studios are also claiming it somehow prevents piracy as well. They do have a point in that most of the business at the cinema goes away after the first 8 weeks, so 12 weeks should be enough. But the problem is that if people know that they don’t have to wait long for the home video version, then they may skip the film at the cinema entirely. Of course, that’s only true of some people, as most feel that going to the cinema and watching the same movie at home are two completely different experiences, much like eating at home or at a restaurant – when money is not an issue, you can’t really substitute one for the other. But it just shows that for all the talk about protecting the industry, film studios only really care about protecting their own profits, and who cares if others in the business suffer as a result.

Staying in the UK, a couple of months ago, the BBC applied for DRM to be added to their high definition TV broadcasts. At that time, the British Office of Communication, Ofcom, denied the request, but it seems that persistence is paying off and the BBC might get its wish (or rather, the US TV networks and movie studios might see their pressuring of the BBC bear fruit). So why is DRM bad for HDTV? It’s bad because it can be used to prevent the recording or time shifting of TV programmes. It can also limit development of open source and free viewing software, since a licensing fee has to be paid to the DRM creators. And this fee also adds to the cost of otherwise free to air television. And it will still fail to prevent some clever person from recording the TV show and uploading it online. So why is the BBC so keen on DRM? Well, the pressure from the US might be intense and I’m sure threats of stopping the supply of programmes to the BBC and moving them onto other more secure broadcast systems such as subscription television will have the BBC, and Ofcom, worried as well.

BioShock 2

BioShock 2 on the PC: DRM Galore

Also in the “we love DRM camp” is the publishers of the game Bioshock  2, 2K Games. So much so, they’ve added 3 different layers of DRM to the game to provide redundant copy protection that still failed to protect the game from being copied. Microsoft’s “Games For Windows” system is used for the disc version, and it already provides a few layers of DRM, and that would be more than enough for most publishers as it features online authentication. But add in limited installs, and then Sony’s SecuROM (the system that’s so hard to remove, that it’s starting to look like malware), and you just have to shake your head at how paranoid game publishers have become. A word of advice: stop losing sleep about the “lost” income from piracy, income that you probably wouldn’t have earned anyway had the pirated version not been made available, as there’s a finite amount of money people can spend on games. Instead, worry about losing your customers to piracy due to idiotic DRM schemes, because that’s a real threat. This is all part of the theory that game publishers’ actions may actually be contributing to piracy. I’m not sure about that, but they certainly have failed to prevent it.

One theory is that lower prices do help to combat piracy, not only for games but for movies and music as well. Apple is keen to test out this theory, and they want TV networks to agree to lowering prices of TV shows on iTunes to under $1, which will no doubt also help the iPad at launch. As expected, they are running into resistance from the TV networks, who sees any price cut as an invitation for more in the future. While it may be simplistic to say that something is only worth as much as people are willing to pay for it, but this is truer for digital content then physical goods, which have physical costs attached to producing each individual item. For me, it’s all about finding the right price, that will discourage people to get the content from illegal sources, and at the same time also provide a healthy profit for content owners.

And bad news for video sharing website Veoh. After winning a legal battle against Universal Music, they may be going out of business anyway. The legal battle prevented the sale of the website, and when it was over, it was too late to obtain further funding. Whether this is more due to the increasing competition in the sector, or whether the legal battle too more of a toll than it appears, it’s hard to say.

High Definition

Let move on 3D/HD news. I’ve mentioned Toshiba’s impressive Cell TV before, the one that uses the same processor as the PS3 to enable 8 HDTV channels to be simultaneously displayed on the TV, in Back to the Future II style.

Toshiba's Cell TV

Toshiba's Cell TV can convert 2D into 3D

But with every other manufacturing trumpeting their 3D lineups, Toshiba was oddly quiet, and refused to even provide information as to which 3D format they will be going with. Perhaps they don’t want to get burned again with another format war by choosing a side right now. Or perhaps there’s really no format to go with even if they wanted to. The Blu-ray 3D specs are a start though. In any case, the Toshiba Cell TV has enough power to convert 2D broadcasts into 3D (well, pseudo 3D, anyway), so whichever format Toshiba decides to go with, it should be quite brilliant.

Speaking of format wars, the HTML5 format war is brewing nicely, with the latest version of Opera supporting HTML5, but only the Ogg Theora codec. So on top of the Flash vs HTML5 video delivery war, we also have the Ogg Theora vs H.264 war. Makers of free browsers like Ogg Theora because it’s free, whereas H.264 has licensing costs that have to be paid by somebody. But the industry prefers H.264, since hardware acceleration support is widely available, and it produces better quality streams than Theora at the moment. The likes of Apple and Google can of course absorb the costs, but it’s probably too much for the likes of Mozilla or Opera to do the same. The H.264 licensing people, the MPEG-LA, really needs to do something about this, perhaps eliminate royalty payments for certain browser manufacturers or something.

And on a related note, Hulu is gearing up for HTML5 compatibility (it uses H.264, just like YouTube and Vimeo’s HTML5 efforts), and so this could mean Hulu for the iPad, which would be a big selling point for Apple.

Gaming

And finally in gaming, the January NPD US video game sales figures are out, and I will have the write up of it nearly next week. A sneak preview: The Wii won, the Xbox 360 beat the PS3 thanks to Mass Effect 2. Only the PS3 showed significant growth year on year, but that’s only because it wasn’t exactly selling like the proverbial hotcakes this time last year.

And the 2009 Game of the Year poll has been closed, or rather, moved off the front pages. CoD: Modern Warfare 2 won, beating second place Assassin’s Creed 2, with Uncharted 2 being the best of the platform exclusive titles.

And so that’s another week. It’s now the year of the Tiger, so 恭喜发财, 万事如意 (which roughly translates to “may you get rich, may your wishes come true and death to DRM”).

Weekly News Roundup (7 February 2010) – The iiVictory Edition

Sunday, February 7th, 2010

A very quiet week, in fact, not really enough news to even write up an WNR. Maybe it was just me being lazy, or in a bad mood because Arsenal lost, or the iPad stories going on and on and on. But there was a big story and that also took a large chunk of the news cycle.

Australian ISP iiNet won its court case against the AFACT, which you can think of as the MPAA of Australia. The verdict was a total surprise to anyone who has been following the trial, but it appears that iiNet got a judge that at least tried to understand just how the Internet worked.

A little background to the story. The AFACT conducted an operation against the iiNet, Australia’s third largest ISP, in which they monitored and recorded illegal BitTorrent and other file sharing usage. After detecting IP addresses that belonged to iiNet customers, the AFACT proceeded to send infringement notices to iiNet to get them to take action against their own customers. iiNet chose to forward these notices to the police as they did not believe they had the legal right to cut off subscribers. The AFACT continued to send notices to successfully set up grounds for a lawsuit.

So the lawsuit would be about whether an ISP was responsible for the actions of its subscribers, and whether when given evidence of suspected piracy, whether the ISP should have acted to cut off the subscribers in question. The AFACT obviously thought that iiNet had to take action, while iiNet maintained that the issue was for the police and eventually, the courts to decide.

iiNet's CEO Michael Malone

The winner, iiNet's CEO Michael Malone ...

And this week, we had a verdict in which the judge found iiNet not guilty of infringement. The judge, Justice Cowdroy, found that the AFACT’s claims of infringement were somewhat exaggerated. But the main issue that Justice Cowdroy found is that while piracy occurred frequently on the file sharing networks, these networks are not under the control of iiNet. And nor is providing access to these file sharing networks the primary service offered by iiNet. Justice Cowdroy correct identified that providing Internet access is not the same as providing access to file sharing (which is again different to access to illegal file sharing).

The safe harbour provisions were also mentioned. These provisions under most copyright acts around the world protects companies like ISPs and websites like YouTube from being sued for the actions of their users, as long as they have a policy in place to deal with illegal behaviour. Justice Cowdroy believed that iiNet did have such a policy, but the fact that the AFACT did not think much of iiNet’s policy does not mean iiNet shouldn’t be protected under safe habour. You can read Justice Cowdroy’s judgement in full here.

And in a further blow to the AFACT, they were ordered to pay for iiNet’s legal costs, which has amounted to more than $4 million Australian dollars ($USD 3.5m). The AFACT has yet to decide whether they will appeal the decision, and has already reached out to the government to enact new legislation that would force ISPs to comply with their demands.

AFACT's Executive Director Neil Gane

... and the loser, AFACT's Executive Director Neil Gane

So what does this mean in terms of the copyright debate? Well, it’s an important victory for the Internet industry in general, and a blow for the copyright crusaders. It’s very likely that the Australian government will do what the courts failed to do for the AFACT, and it might even use the planned mandatory Internet censorship filter to block access to Torrent websites and file sharing services, if it does not enact laws to force ISPs to kick off subscribers with or without due process. And that’s assuming AFACT’s appeal fails, and all it takes is a judge that is less enlightened than Justice Cowdroy to side with the big money. But whatever the eventual conclusion, the fact of the matter now is that there is sufficient argument, that stood up in court, to suggest ISP based copyright policing should not occur for all the reasons Justice Cowdroy outlined in his judgement. The fact that so many governments around the world are so willing to drop due process and bypass the court system does not mean that their actions are correct or should be unchallenged. Hopefully, this verdict will be referenced  in cases all around the world to put a stop to the “three-strikes, ISP copyright cop” nonsense and get all parties to sit down and find an equitable solution to the real problem of online piracy.

Speaking of equitable solutions, EA might be publishing a game with a very reasonable DRM, ironically. Although it probably occurred as a direct request by the game’s producers, DICE, Battlefield: Bad Company 2 will have a DRM system that offers gamers a choice of authentication options. They could go with the the standard DVD check, a simple one without the need for persistent or background software to be installed and without any install limits. Or if they wish, they can authenticate once online and never have to authenticate, either online or do a disc check, for 10,000 days (or 27 years), but be subject to a very reasonable install limit of 10 computers at any one time (if you reach the limit, you can uninstall on one of the computers to be able to install it to another one). Last week, I talked about Ubisoft’s new DRM system, which like Steam, will require online authentication each and every time you want to play the game. Bad Company 2’s system by comparison is much simpler and much more fair. Of course, you could argue that this system will allow games to be ripped more easily, and that may be true, but harder to rip games still end up being ripped and when that happens, nothing will stop it being distributed illegally.

As for HD news, there wasn’t much other than the typical marketing hype. There are a couple of sales on though at Amazon for Blu-ray movies, and including some very cheap ones and possibly the cheapest ever “major” Blu-ray movie (Heathers for $5.99). Check out these deals and more in our Amazon Blu-ray Price Index section.

And ditto for gaming as well, with the typical stories about how well our game consoles are doing blah blah blah.

Hopefully there will be more news next week, there has to be. But I doubt it will be as monumental as the iiNet iiVictory. See you next week.