Microsoft facing $1.15bn Xbox 360 repair bill
Microsoft has admitted that every one of the 11.6 million Xbox 360 consoles sold in the past 19 months suffers from a design flaw that could cause the device to fail. The firm will extend the warranty coverage from one to three years to compensate consumers, but does not plan to instate a recall or exchange programme. Microsoft gaming chief Robbie Bach claimed in a conference call with financial analysts that the design issues surfaced recently. "In the past couple of months we started to see significant increases in repair requests and call requests and significant attention from people," he said. Microsoft did not disclose the exact nature of the problems, but said that it had made the necessary design changes and that units currently in stock will be upgraded. The extended warranty period is limited to hardware failures indicated by three flashing red lights on the console. Users of consoles suffering from such problems are entitled to free repairs and shipping. Microsoft estimated that the repairs will cost the company $1.05bn to $1.15bn, spilt evenly between the higher than expected return rates for existing consoles under the one-year warranty, and future returns under the extended warranty period.

Microsoft shifts research to Canada
Microsoft is so fed up with the fact that the US government will not let it recruit foreign scientists for its research and development that it has shifted over the border to Canada. A SpokesVole told the CBC that Microsoft is starting a software development centre in autumn in Vancover. Although Microsoft is building research bases in Boston and Bellevue, it needed one in Canackstan so it could bring foreign research and development experts into the company. Microsoft moaned that it cannot recruit and retain highly skilled people affected by "the immigration problems" in the US. The last time the US invaded Canada, in 1812, it was soundly repulsed.

The iPhone: Sold out!
According to Apple's phone locator, retail locations in only two cities -- Pittsburgh and Tigard, Ore. -- had any iPhones left before the start of business today; every other shop is clean out. The reduced availability has not done much for after-market prices, however. On eBay and Craigslist, you can pick up an 8 GB iPhone for as little as $650 -- just a bit above Apple's $599 price tag. Perhaps the (relatively) low prices reflect slightly shrinking demand; with likely a million iPhones sold so far, anyone willing to pay a premium to get it ASAP -- as opposed to waiting for more to come in at Apple Stores -- probably already has one already. And supply, too, might not be truly limited. Reports say retail stores may receive new stock as soon as this weekend. Plus, you can still get an iPhone from Apple's Web site. You've just got to wait a couple of weeks or more for shipping. So, right. The phone's sold out. But that doesn't mean you can't easily get one.

New iPhone battery to cost $85.95
Apple has revealed that it will cost iPhone users in the US at least $85.95 to replace the non-removable battery in the new handsets. The cost includes a $6.95 shipping fee to send the phone back to Apple, but users will have to pay an extra $29 if they want to borrow a replacement iPhone for three business days while the work is carried out. The arrangement is similar to that used to replace failing batteries in iPods, which are also fixed into the casing and cannot be swapped out by users. Carolina Milanesi, a research director at analyst firm Gartner, told vnunet.com that modern phone users are unwilling to pay for replacements or repairs, especially when they are more likely to replace the phone than the battery. The other problem is that consumers will not be able to seek an alternative, cheaper service to replace the battery as opening the back of the iPhone voids the warranty.

FeedBurner premium news feed now free
RSS provider FeedBurner is to make its premium news feed management services available to publishers at no extra charge, just one month after being acquired by Google. FeedBurner's Stats PRO and MyBrand services were previously available for an additional monthly fee of $5. Stats PRO includes tools to allow users to more effectively track stats on feeds, such as ad metrics and a list of sites publishing the feed. MyBrand allows users to attach their own URL to a feed which is being served by FeedBurner. The original charge for the service ranged from $3 to $14, depending on the number of feeds. The move follows a pattern for Google, which makes the vast majority of its money from advertising sales. The company had previously removed charges for premium services after acquiring such companies as Blogger, Picasa and Urchin. Like its parent company, FeedBurner will now rely on ad sales for revenue. Increasing ad sales had been a constant theme for both companies when the acquisition was announced.

JetBlue exploring letting passengers e-mail or text
JetBlue, the first U.S. carrier to offer live in-flight television, will detail plans by year's end to let passengers send free e-mail or text messages from wireless handheld devices. No U.S. airline now offers such a service. New York-based JetBlue is developing the technology through its LiveTV subsidiary, spokeswoman Jenny Dervin said Thursday in an interview. LiveTV last year was among two companies that won a Federal Communications Commission auction of airwaves to provide Internet service on commercial flights. The carrier has no current plans to provide wireless Internet access, Dervin said.

Heathrow to trial RFID tags
In September, Heathrow Airport will become the largest in Europe to trial RFID-based tags for tracking passenger luggage, comparing accuracy and read rates against their existing barcode-based systems. Radio Frequency Identification tags are a throw-away technology which can be embedded in the labels attached to luggage on check-in, and then read from a distance of a metre or so (depending on the technology) as the luggage makes its way around the world - sometimes even to the same destination as the passenger. Using RFID is more expensive than printed labels, but savings should come from being able to automatically read the labels as the bags pass by, and update the information stored on the tag without recourse to a central database. The International Air Transport Association reckons RFID will save airlines £400m a year, though some of that will be offset by the higher costs. Heathrow won't be drawn on those costs as yet. The details of technologies and suppliers won't be public until the official launch of the trial in September.

Belgium Reins in Filesharing
A Belgian court has ruled that an internet service provider must block illegal, peer-to-peer filesharing on its network. The ruling is the first in Europe to hold an ISP accountable for copyright-infringing traffic and it will likely ripple across the EU. Scarlet, one of Belgium’s leading ISPs, six months to start filtering or blocking copyright-infringing material on its network. The court, in consultation with a technology expert, suggested a variety of technologies the ISP could use to crack down on illegal filesharing. “The court has confirmed that the ISPs have both a legal responsibility and the technical means to tackle piracy,” said IFPA chairman and CEO John Kennedy in a statement. “This is a decision that we hope will set the mould for government policy and for courts in other countries in Europe and around the world.” The judge’s decision, announced by the IFPI on Wednesday, was based on the policies Belgium had adopted in response to a European Union directive that all member countries pass laws governing e-commerce and data privacy.

Online auction for security bugs
Security researchers who find holes in software can now sell their findings to the highest bidder. An online auction house has been created to bring together those who find the loopholes with the companies that can do something about them. It aims to close the gap between the small number of bugs investigated and the huge number thought to exist. By rewarding researchers, the auction house aims to prevent flaws getting in to the hands of hi-tech criminals. Many malicious and criminal hackers rely on loopholes in widely used software, usually Windows, to get access to the valuable information on users PCs. There is known to be a ready market for these vulnerabilities on the digital underground and significant sums of money can be made by selling them. In early 2006 anti-virus firm Kaspersky Labs revealed that Russian hackers had been selling the Windows WMF vulnerability for $4000. The loophole was offered for sale weeks before it was widely known about and long before Microsoft moved to close it. Many criminal groups prefer to use vulnerabilities for their own ends to steal information or hijack computers rather than have any and every malicious hacker using them. The independent auction house, called WabiSabiLabi, aims to staunch the flow of vulnerabilities to the underground by giving security researchers a legitimate marketplace for what they find.

South Korea May Allow More Wireless Providers
South Korea is considering allowing new wireless-service providers to enter the market to help cut mobile tariffs and promote competition, the Ministry of Information and Communication said. The government wants to introduce a system that would allow mobile-virtual-network operators to lease capacity on the networks of existing wireless companies, a spokesman said. Politicians and civic groups have claimed the country's three mobile carriers -- SK Telecom, KT Freetel and LG Telecom -- are overcharging users.

$99 Gadgets
When you think of high-end optics, you rarely think of Webcams. These ubiquitous little cameras usually have the cheapest and lowest-quality lenses and sensors to ensure that online video conversations have that homegrown Super 8 quality. Logitech has decided to remedy this by adding Carl Zeiss lenses and higher resolution optical sensors to their new Quickcam Pro 9000, resulting in a 920-by-720-pixel video picture that might pass for professional quality. The $99 Webcam, which goes on sale this month, has autofocus and a true two-megapixel video sensor, making it as powerful as some digital cameras. It also has a light sensor for improving the picture in less-than-ideal lighting conditions. The QuickCam Pro 9000 works with PCs, and not Macs, and has a built-in microphone. The package includes the Logitech Video Effects software and face-tracking electronics that allow you to overlay amusing accessories like a Groucho Marx mustache while doing live video chats and recordings. The camera can sit on top of a monitor or clip to a laptop screen. It supports video with Skype, AIM and Yahoo Messenger chat sessions. But with such high-resolution optics, potential broadcasters may want to shave or put on a bit of stage makeup before hitting the Internet.

The new Canon Selphy CP740 is a $99 miniature printer designed to be carried along for quick photo prints in far-off places and cramped spaces. It can print from camera-equipped cellphones as well as regular digital cameras without being connected to a computer. The two-pound, device measures only 5 by 7 by 2.5 inches, but features a 2.5-inch, LCD screen and slots for a variety of camera media cards. You can view, crop and color-correct photos using the screen. The CP740 uses a process called dye sublimation, where continuous stretches of ink are laid down, as opposed to regular inkjet printers which spray dots from tiny jets. The result is clear, sharp and colorful, but requires the purchase of special paper and ink packages. Prints can be as large as 4 by 8 inches, while smaller sizes can be used to create identification tags or wallet-sized prints. A retractable USB cable connects to a PC or directly to many digital cameras, not just Canons. An optional $49 Bluetooth adapter lets you print through the air from similarly enabled laptops and cellphones.

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