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Why Facebook may soon cost you money PDF Print E-mail
Written by Ricardo Sousa   
Monday, 14 May 2012 09:51

Why Facebook may soon cost you money

Now that Facebook has conducted a small test of charging users to promote their status updates, isn't it inevitable that, as a public company, Facebook will have to start dinging users in earnest?

The other day, one of Facebook's bigger clients was privately complaining to me.

This gentleman is in charge of digital advertising for a worldwide company. He told me: "First they charge me for ads. Then they try and charge me again in order to make sure those ads get seen by more people."

He was referring to Facebook's presentation in February when it suggested brands have "Premium ads." You know, ones that might be enjoyed by more than the estimated 16 percent of fans who actually see a brand's messaging currently.

It's hard not to imagine that -- despite Mark Zuckerberg's insistence that Facebook will always be free -- the soon-to-public company will have to seek more revenues from its biggest franchise: every single one of its users.

The principle behind the test aimed at users this week was the same as that aimed at advertisers: "Not too many people see your very important Facebook updates. So pay us and we'll make sure they do. Or at least we'll try."

The method suggested was that your important post would be highlighted -- for a fee of 1.80 New Zealand dollars (around $1.42). Actually there seem to have been several price points, one going up to the $2 mark.

 

The situation for users is even worse than that for advertisers. On average, a mere 12 percent of your friends see your status updates.

One can understand Facebook's problem. Too many people use it. Too many posts are being created. Too many people miss most of what's there. Yes, it's just like Twitter.

 

To make this more disturbing for the company, there's a joyous train hurtling in the other direction: the Church of Wall Street.

Those who demand that Mark Zuckerberg pay them the same respect as he would pay God -- yes, by wearing a jacket -- are only interested in money rolling in.

When they lose money -- such as the $2 billion misplaced by JP Morgan Chase this week -- they might bow their heads for a short moment and carry right on doing the same thing.

But if Facebook's numbers fall short, they will be all over the company like a scratchy hoodie.

It is that sure knowledge that is driving Facebook to find every possible avenue of revenue.

Facebook is trying to make as much money out of brands as it can. It is trying to sell them every possible interpretation of its numbers in order to squeeze out cash.

In turn, brands can see that Facebook has huge numbers, but they aren't seeing the sorts of results that make them want to anoint the site as their primary medium. Facebook is still cheap, and therefore money spent there is cheap money.

But with hundreds of millions of people on its pages, Facebook hopes to begin to squeeze pennies that will multiply into dollars. It is the ancient idea of nickle-and-diming.

This week's New Zealand experiment comes from the same helpful impulse that spawned fees for your first checked bag at the airport.

In other words, now that we've got you, give us something. Of course, one of the difficulties if Facebook succeeds in charging customers for, say, actually having people seeing their updates, is the possibility that its relationship with its users will change.

Currently, Facebook can switch its privacy rules and drag you along because you are aren't a paying customer.

But once you are, mightn't people begin to take on a different attitude? A paying customer might expect a higher level of service, of feedback -- and, yes, of privacy.

Facebook's privacy-rule change this week allows it to use your face to advertise products away from Facebook.

If you were now being charged in order for your friends to see your posts, mightn't you be tempted to charge Facebook for the privilege of using your lovely face to sell, say, 55-gallon tubs of lubricant?

 
MirageTable: Microsoft presents augmented reality device PDF Print E-mail
Written by Ricardo Sousa   
Monday, 14 May 2012 09:47

MirageTable: Microsoft presents augmented reality device

Microsoft has shown off an augmented reality system that allows users at different locations to work together on tabletop activities, sharing objects which they can both handle.

The MirageTable was demonstrated at a conference in Austin, Texas and is outlined on the firm's research site.

Researchers said it could "fool" the eye to suggest both parties were using a "seamless 3D shared task space".

The team admitted more work was needed before the system could be marketed.

Avoiding bulky equipment

The MirageTable uses a 3D-video projector to beam images onto a sheet of curved white plastic placed in front of the user.

At each end one of Microsoft's Kinect depth camera sensors is used to track the direction of each person's gaze as well as to capture the shape and appearance of objects placed on the surface and the participant sitting behind them.

Users are also required to wear shutter glasses in order to see the projected image in three dimensions. Two computers linked by a network connection are required to power the experience.

The researchers said they were "motivated by a simple idea: can we enable the user to interact with 3D digital objects alongside real objects in the same physically realistic way and without wearing any additional trackers, gloves or gear."

 

Block building

They claimed success stating that the experience was a significant improvement on current video conferencing technologies.

"In our system, the user can hold a virtual object, move it, or knock it down, since all virtual and real objects participate in a real-world physics simulation... The unique benefit of this setup is that two users share not only the 3D image of each other, but also the tabletop task space in front of them."

A video posted online shows two people working at different locations to build an object out of blocks, with one researcher measuring the distance between the pieces placed by the other participant.

A research paper also noted that the technology could be used to create a single-person gaming experience.

It said that a scan of a single bowling pin could be used to create multiple objects projected in front of the user. These can then be knocked down with a virtual bowling ball using a physics simulation built into the system.

Unresolved problems

The researchers showed that the set-up could also be used to allow virtual reality bowling

However, the researchers admitted that the project was far from perfect.

At present the Kinect device only captures the front face of objects, leaving gaps and imperfect texturing. The technicians suggested that this could be fixed by using additional cameras.

The set-up also only allows users to scoop or catch objects from below in order to hold them in their hands.

"Simulating realistic grasping behaviours given depth camera input remains an open research problem," the researchers admitted.

"While we are still very far from an implementation of a working version of Star Trek's Holodeck, MirageTable shows the potential of the projector/depth camera system to simulate such scenarios."

 
Carmageddon seeks Kickstarter cash comeback PDF Print E-mail
Written by Ricardo Sousa   
Monday, 14 May 2012 09:44

Carmageddon seeks Kickstarter cash comeback

Carmageddon, a notorious video game from the late nineties, is attempting to raise crowd-sourced funding to make a return.

The original, which sold over 2 million copies, was heavily criticised for featuring excessive violence

Stainless Games aims to raise over $400,000 (£250,000) via Kickstarter.

The UK-based firm has had to set up a separate company in the US in order to receive money through the crowdfunding site.

Censorship

Bonus points are awarded in the game for driving over pedestrians.

This action was amended in the game's initial 1997 UK release following the threat of a sales ban, causing the developer to replace the victims with green-blooded zombies.

However, it was later re-released in full, as was a sequel the following year.

In subsequent years, other 3D "violent" games such as the genre-defining Grand Theft Auto sequels followed.

Despite the Carmageddon's controversy, it was well-received by the gaming community for its innovative gameplay and "action replay" feature.

'Pedestrians running'

The original game, which allowed action replays of collisions with pedestrians, provoked criticism

Five of the original eight developers are still with Stainless Games and work has already begun on the new title, which is set to be called Carmageddon: Reincarnation.

"We've been able to very quickly get a prototype up and running," Neil Barnden, co-founder of Stainless Games, told the BBC.

"With pedestrians running around, we're all just spending a lot of our day laughing like drains at things that happen in the game."

Several games have been funded via Kickstarter projects, most notably Double Fine Adventure - which raised $3.3m (£2.1m).

Restrictions on the sites, mostly relating to taxation issues, mean that only US-based companies are able to raise funds through the system.

This led Stainless Games - which is based on the Isle of Wight - to come up with a workaround.

"We have a lawyer in the States as we do a lot of our business there," Mr Barnden explained.

"We had them set up a US company which then acts as the holding company for the funds that come into Kickstarter."

Intellectual property

Like many, Mr Barnden has called for Kickstarter to expand its operations to the UK and other markets.

"You'd imagine it would be in their interests to widen the base of who can actually set up a campaign."

Kickstarter was unavailable for comment.

People who pledge more than $1000 for the project get the chance to be featured in the game

Other sites, such as indiegogo.com and London-based PleaseFund.us, offer similar features but have thus far been unable gain the popularity of Kickstarter.

Stainless Games had to purchase the intellectual property rights from publisher Square Enix before it could go ahead with the game, despite being the game's original designer.

"Back when we made Carmageddon it was just the case that when you signed with a publisher, they automatically gained all the rights for the title.

"The original publisher of the game [SCi] owned the rights. They went away to make a third game when we asked for a break in Carmageddon for a while."

That last game proved unpopular with the series' fans.

"The new game is going to be like Carmageddon 1 and 2," said Mr Barnden.

"But not 3, we're happy to confirm that!"

 
Facebook tests 'pay to promote post' tool PDF Print E-mail
Written by Ricardo Sousa   
Monday, 14 May 2012 09:41

Facebook tests 'pay to promote post' tool

Facebook has started testing a system that lets users pay to highlight or promote posts.

By paying a small fee users can ensure that information they post on the social network is more visible to friends, family and colleagues.

The tests are being carried out among the social network's users in New Zealand.

Facebook said the goal was to see if users were interested in paying to flag up their information.

Money maker

The tests of the "pay to promote" system were discovered by a Facebook user in Whangarei, reported New Zealand's news magazine Stuff.

At first, said Stuff, the user thought the offer to pay to promote a post was a con trick.

A Facebook spokesperson confirmed to the BBC the offer was genuine.

"We're constantly testing new features across the site," said the spokesperson. "This particular test is simply to gauge people's interest in this method of sharing with their friends."

Different methods of highlighting posts were being tested, said the spokesperson. These would see a range of charges being levied to make posts more visible. Comments on the tests suggest the highest price being charged was £1.25 ($2) while others cost 25p or 50p.

Payments could be made via credit card or PayPal.

The spokesperson said some of the methods it was trying out would incur a charge but others would highlight a post for free. The spokesperson would not be drawn on when the test would end or if it would be tried in other territories.

"We're going to see a lot more ideas like this where they are testing out different ways to try to make money," said Ian Maude, internet analyst at Enders Analysis.

Both Facebook's imminent stock market flotation and a recent slowdown in revenue growth were helping to concentrate its attention on ways to make money, he said.

"In the last few years their overall revenue has grown much more quickly than their audience," he said. However, he said, that rapid growth had slowed in the last six months and had perhaps prompted it to experiment.

The flotation will add more pressure, said Mr Maude but he added that the way the stock would be split could lighten that burden a little as Mark Zuckerberg would be left 57% of the shares.

"He's always said he wants to make money to run the company not run the company to make money," said Mr Maude.

 
Yahoo chief executive Scott Thompson steps down PDF Print E-mail
Written by Ricardo Sousa   
Monday, 14 May 2012 09:37

Yahoo chief executive Scott Thompson steps down

The chief executive of computer firm Yahoo has stepped down, amid accusations that a fake computer science degree was included on his CV.

The California-based company confirmed media reports that Scott Thompson had quit his post.

He has been replaced by Yahoo's global media head Ross Levinsohn.

The firm is also reportedly close to agreeing a truce with activist shareholder Daniel Loeb, who discovered Mr Thompson's mistake.

Mr Loeb, a hedge fund manager who lobbied for Mr Thompson's dismissal, is set to be appointed a company director.

Other new directors will also be appointed and Yahoo has named Fred Amoroso as the new chairman of its board.

Cost cutting

Yahoo has already acknowledged that Mr Thompson, who took up his post in January, does not have a computer science degree.

Just last month, the company, which is based in Sunnyvale, announced plans to make 2,000 employees redundant.

Mr Thompson had previously been the president of online payments firm Paypal since 2008.

He took over as chief executive from Tim Morse, who had held the role on an interim basis since Carol Bartz was sacked in September 2011 after two-and-a-half years in the post.

Since Mr Thompson joined Yahoo, he had been attempting to cut the firm's costs and improve its fortunes.

Part of this involved cutting 2,000 jobs, or 14% of the company's workforce, in a bid to save $375m (£233m) a year.

Besides its search engine, Yahoo's key products include the photo sharing site Flickr and its webmail platform.

 
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