In today's New York Times, Tim Arango tells a story of a heated conversation between Sony Music's Rolf Schmidt-Holtz and Steve Jobs on Christmas Eve -- one that "ricocheted around the music industry."

Apparently, before the announcement at Macworld, all the labels except Sony had agreed to a new pricing deal. Sony wanted the new pricing to take effect immediately after the announcement, but Jobs wanted a longer rollout. After the phone call, according to the Times, Sony agreed to the longer waiting period.

During this time, Jobs was allegedly on medical leave, recuperating at home from his much-publicized illness. Arango notes that Jobs' point-man on music industry relations, Eddie Cue, and Apple's entire staff "do their best to follow Mr. Jobs's style in their own negotiating." That is to say: Hardball.

Music executives, according to an unnamed source, are afraid of angering Apple, as Apple can single-handedly remove a label's catalog from the iTunes store, angering the label's customers. At the same time, Apple can claim that their hands were tied, the decision wasn't theirs, and that all the ire should be directed at the music industry. Such a thing hasn't happened -- yet -- but the threat is there, and real.

The labels, on the other hand, feel like they brought Apple back from the dead, blessing the company with content.

Even so, David Card of Forrester Research offered an interesting coda to the story: "if it weren't for Apple, God knows how bad the music industry would be," he said.

[Via 9-to-5 Mac.]

Sony announced today it plans to lay off 16,000 workers, close a handful of factories and reduce electronics investment by a third, as their comeback effort falls apart. Sony is both Apple's competitor in the mobile phone market and their partner for computer components, including batteries.

"Five or six" factories will be closed, with only one named so far: Sony Dax Technology Center, in France. Several other factories in Japan will be closed, and one other abroad, according to the IDG News Service.

8,000 full-time employees will be laid off, along with another 8,000 temps and contractors. Those 16,000 people represent about nine percent of their workforce.

Forbes.com's announcement of the layoffs attributed some of Sony's loss of revenue to Apple's dominance in the music player market, a torch Sony once carried.

Sony hopes the moves will save them a billion dollars going into its next fiscal year, which starts in April.

Apple just released an update for RAW camera support for Mac OS X Leopard, Aperture 2, and iPhoto '08. With this new update, the following list of RAW-format cameras are supported:

• Canon EOS 50D
• Nikon D90
• Sony DSLR-A900
• Nikon Coolpix P6000

Apple also notes that this update "addresses issues related to specific cameras and overall stability." You can download this update by opening up Software Update (Apple menu > Software Update) or by downloading the installer package from the Apple Support downloads site.


Thanks for the tip, Tony!

Danny Gorog at APC Magazine has written a really nice analysis of something that's rather strange when you think about it -- why aren't there any high definition DVD drives on Macs yet? It has been asked for by a few folks, but by and large, Apple has pretty much ignored the whole high definition debate. And even now, when we supposedly have a winner in Blu-ray, Apple hasn't pulled the trigger, and consumers, as Gorog notes, haven't even really cared much.

In fact, across the entire PC market there's not a lot of wholehearted support for Blu-ray or any major high definition formats. It's not that DVDs are "good enough" -- HDTVs are selling by the truckloads -- it's more that consumers, apparently, just don't want to settle on another format. And that may be the key to this whole thing -- Apple has a vested interest in selling content, and implementing some other content producer's format into their machines will take away from their best HD content channel yet: iTunes.

And customers, happy to not have to buy yet another permanent format of their favorite movies, may be satisfied with having no next-generation disc format. I, like many users, have already watched tons of HD video without ever having bought a Blu-ray disc. If Apple doesn't need the drives to deliver the same quality content, why should they bother?

Today Apple released an update for Mac OS X's RAW compatibility. iPhoto '08 and Aperture will now be able to work with RAW formats from the following cameras:

• Canon EOS Digital Rebel XS/Kiss Digital F/1000D
• Kodak DCS Pro SLR/n
• Nikon D700
• Olympus EVOLT E-420
• Olympus EVOLT E-520
• Olympus SP-570
• Samsung GX-10
• Samsung GX-20
• Sony DSLR-A300
• Sony DSC-R1

I'm sure this isn't a fix for everyone, but will probably make most photographers happy to see their camera on the list. You can download this update by opening Software Update (Apple menu > Software Update) or by visiting Apple's downloads website and downloading the installer package.

Thanks to everyone who sent this in!

As if Mac gaming needed more problems getting off the ground. Transgaming has proudly announced that in the future, their games will include Sony's SecuROM digital rights management software. They don't mention which games will be getting the extremely restrictive DRM (that some folks have compared to malware), but we're guessing all of them, which means the Mac version of Spore will be on that list, as well as those upcoming Ubisoft titles, and anything else produced with the Cider technology.

Bummer. Why is it a bummer? Because all the evidence we can see actually shows that DRM hurts sales. While Transgaming is obviously proud of this decision, claiming that SecuROM will help them prevent piracy and unauthorized copying, most of the evidence shows that piracy will happen in spite of, and sometimes even because of restrictive DRM setups like Sony's. Transgaming is making a serious mistake here -- they want to protect their games, which is fine. But choosing DRM, especially SecuROM, as a way to do it is a mistake. It'll cause more problems for the company and their users before it prevents piracy in the way they think it will.

[via IMG]

InsanelyGreatMac has an excellent article outlining another point in the ongoing battle of which is better: PC or Mac? The article gives the examples of computer companies such as Sony, which install "crapware" (or demo versions of software that you have to manual uninstall) on new machines. At the time of the IGM article, Sony was charging $150 to get your machine free of unwanted software -- a $50 fee for not installing the extras, and $100 for an upgrade to Microsoft Vista Business Edition (whoa, say that 5 times fast). Wired has since reported that said Sony has removed the $50 "Fresh Start" fee, making one only pay $100 to upgrade to Vista Business.

IGM also made the point that Mac users may pay a premium, i.e.the "Apple tax", to get a better, crapware free product.

Roughly Drafted has a nice, long analysis of the iPhone as a gaming device, and they hit on a lot of great reasons why the iPhone seems destined to be a great gaming platform. Not only will it have the hardware chops to play games (including a few input devices that no other handheld gaming consoles have ever had), but Apple's SDK implementation, when it finally gets off the ground in June anyway, seems poised to let almost anyone develop any game ideas they have for the device.

Throw in a great distribution platform and a relative lack of competition on the handheld platform (Nintendo is undoubtedly working on a successor to the DS, but other than that, there are no real next-generation contenders so far), and Apple apparently has the potential to do very well in the gaming market.

In fact, the only problem that Apple might bump up against in building up in the iPhone as a gaming device is the cost -- at $400, it'll be the most expensive gaming handheld out there. But given that it's actually a smartphone, and thus actually benefits from an already installed user base (people who have the iPhone may very well be people who will have never purchased or used a handheld gaming platform before), the price may not be that big an obstacle to ownership.

And if they can build up a respectable library of game titles, they could even brand an iPod touch/phoneless iPhone as a gaming unit, and sell that at a price that would compete with Sony's PSP and Nintendo's DS. Apple has never historically pushed for the forefont of anything in gaming, but if their showing at the SDK event is any indication, they may be lining up to make the iPhone the place to play handheld videogames in the future.

[Via IMG]

The iPod is the 21st century Walkman and it seems that Sony isn't content to let Apple potentially dominant the internet communication market with the iPhone. They have teamed up with BT (that's British Telecom to you) to offer a number of new features on the PSP. The new features include video and voice calls, though all the features depend on being connected to the internet in order to function. Might this make the PSP into an iPhone competitor? Considering that 28 million of these little things are out there, it just might.

Macworld reports that some Sony shows have just been added to the iTunes store. Amongst the new offerings are:

• Charlie's Angels
• NewsRadio
• Starsky and Hutch
• Till Death
• Spiderman

All the more content for that brand new Apple TV you just bought (you knew I had to work that in somehow).

It's Friday! Let's celebrate with a little levity.

What happens when out-of-touch Sony offers to collaborate with Apple? Why, the WalkPod, of course! This portable device combines new and old concepts of "music in your pocket."
Knowing Sony, it'll cost $599.*

Thanks, Owen!

*Just to be clear: This is a joke.

Eagle-eyed reader Mark spotted this product as it was being added to the display racks at his local Sony Style store: the Sony iPod Audio Docking Station CPF-IP001 is a $250 desktop speaker set featuring the ubiquitous (at least, on gear from other manufacturers) iPod dock connector, onboard DSP, separate line-in, and 15W subwoofer.

If this is the first Sony product that bears "Made for iPod" certification -- and it's the first I can find before my coffee is ready -- it emphasizes the passing of the audio torch from the 20th century's top consumer electronics brand (the Sony Walkman) to the 21st century's equivalent (guess what).

Hello, Sony. So glad you could join us! Welcome to the social; enjoy your ice cream.

Update: Commenters have noted that some Sony car stereo products (recent XPLOD models in particular) may include iPod dock connectors. I am still looking for any prior home-audio products from the Big S that have the dock.

Thanks Mark!

Online video sales may take in about a third of a billion dollars this year. Sony wants in on the action. According to today's Financial Times, Sony is making plans to enter the video download market, specifically to provide content for its existing 20 million plus PSP installed base.

Amazon's movie download service, as well as video content providers like MovieLink and CinemaNow have pretty much been resounding failures. So what will Sony do differently? For one, they intend to distribute their movies in a memory-stick friendly form, storing up to 10 feature films on a 4GB stick. For another, they won't require any hardware upgrades to the existing equipment in order to purchase and play movies.

I'm pretty unclear about how they intend to manage their digital rights with this setup. And 10 movies on 4GB sounds over-compressed. A two-hour iTunes movie is about a gigabyte in length. 400MB sounds more like what you'd expect coming out of iSquint or Handbrake. It would, of course, be lovely if their content would play back on the iPod as well as the PSP, but I'm not holding my breath.