Main Stories
o Microsoft Accused of Antitrust Violation In Online Music Purchase Process
o Report: Kids Account for 21% of U.S. Online Population
o Japanese Electronics Firms Unveil Home Stereos Than Can Download Music
o SBC Adds 365,000 New DSL Subscribers in Third Quarter

o Briefly Noted: Rockstar Games - "Grand Theft Auto Double Pack," Nellymoser, Sony Online Entertainment - "Lords of EverQuest," ICTV Europe, ArcSoft, Electronic Arts - "SSX 3," Namco - "Dead to Rights II: Hell to Pay," Atari, Airborne Entertainment - Activision Value, Ztango, iTunes Music Store vs. Kazaa, Sen. Norm Coleman - Washington Post online chat

Washington -- A recent filing updating Microsoft's adherence to its antitrust settlement with federal and state regulators reports that some are unhappy with the way Microsoft has given priority to its Internet Explorer browser when Windows XP users are purchasing online music. The gripe concerns the "Shop for Music Online" feature in Windows XP. Microsoft has geared the software so that only an Internet Explorer browser will open when users access the feature, even if they have a different browser established as their chosen or, "default" browser. "If Plaintiffs and Microsoft are unable to resolve this issue, the parties may seek assistance from the Court," reads the filing, submitted to U.S. District Judge Colleen Kollar-Kotelly. Microsoft spokeswoman Stacy Drake said that the company believes the feature "is consistent with the design rules established by the consent decree." If Microsoft and the regulators aren't able to resolve the matter, the issue will become the first to test Microsoft's compliance with its 2002 antitrust settlement.
http://www.usdoj.gov/atr/cases/f201300/201386.pdf
http://makeashorterlink.com/?H23F22946 
http://news.com.com/2100-1027_3-5094144.html
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o Report: Kids Account for 21% of U.S. Online Population

New York -- Over 27 million U.S. kids aged 2-17 went online during September, representing more than one-fifth of the total U.S. online population, according to data from New York-based Nielsen/NetRatings. Twelve million children aged 2-11 in the U.S. accessed the Internet from home, while 14.9 million teens aged 12-17 connected online. The most popular website for younger children was one for toymaker Mattel's Diva Starz doll line, followed by Disney's ToonTown Online; among teenagers, the most popular sites included one that offers instant messaging icons, another offering information on marijuana, and Teen People. Cities with the highest concentrations of kids going online included Salt Lake City -- with 25% of its total online audience comprised of children -- followed by Cincinnati (24%), Boston (22%) and Sacramento (22%). "Many markets now have a high percentage of Internet savvy kids, which marks the Internet as a significant delivery channel in reaching this demographic," said Nielsen/NetRatings senior analyst Dawn Brozek.
http://biz.yahoo.com/prnews/031021/sftu085_1.html 
http://www.nielsen-netratings.com
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o Japanese Electronics Firms Unveil Home Stereos Than Can Download Music

Tokyo -- Four Japanese electronics firms -- Sony, Pioneer, Sharp and Kenwood -- on Tuesday introduced separate products developed as part of a joint venture to create home stereos that can download music without the need of a PC, the Associated Press reported. The joint venture, called Any Music Planning, developed the Linux-based software the devices share in common. The stereos, which will initially go on sale in Japan in 2004, will be able to download music over a broadband connection through LabelGate, an online service that has licenses from Japanese major labels and rights to limited Western music. "Ultimately, our dream is to make the service a worldwide standard," Any Music CEO Fujio Noguchi told AP.
http://makeashorterlink.com/?O21B15946
http://www.labelgate.com
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o SBC Adds 365,000 New DSL Subscribers in Third Quarter

San Antonio, Texas -- SBC Communications, one of the nation's largest telecommunications firms and a provider of broadband DSL Internet access, announced on Tuesday that it now counts 3.1 million DSL customers, having added 365,000 new subscribers in the third quarter of its fiscal year. The company added 304,000 subscribers in the previous quarter. Texas-based SBC partnered with Yahoo for a co-branded dial-up and DSL Internet access service, which currently is featuring a promotion offering a year of DSL service for $26.95 per month.
http://biz.yahoo.com/bw/031021/215461_1.html 
http://www.sbc.com

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(New York) Rockstar Games, the video game publishing unit of Take-Two Interactive responsible for the popular "Grand Theft Auto" franchise, announced on Tuesday that it has shipped its "Grand Theft Auto Double Pack" in North America. New York-based Rockstar said it will release the 2-disc set, containing its "Grand Theft Auto 3" and "Grand Theft Auto: Vice City" titles for PlayStation 2, in Europe on Friday.
http://biz.yahoo.com/bw/031021/215464_1.html
http://www.rockstargames.com/grandtheftauto

(Arlington, Mass.) Nellymoser, a provider of mobile music distribution technology, on Tuesday released its MedleyTunes and MedleyTones music distribution services for owners of Java-enabled cell phones. The MedleyTunes service lets subscribers listen to high-quality music clips on their cell phone, while MedleyTones provides a way to preview and purchase actual recorded music ringtones. In addition to using a self-encrypted file format for all content, Massachusetts-based Nellymoser said its services integrate with existing carrier digital rights management, and that providers may determine an expiration based on elapsed number of days or number of allowable plays.
http://www.nellymoser.com

(San Diego) Sony Online Entertainment on Tuesday launched a closed beta test for its online real-time strategy PC game, "Lords of Everquest." The initial group of 500 testers will be expanded to 15,000, to test the game's multiplayer functionality, before it is eventually released in North America in the fall.
http://biz.yahoo.com/prnews/031020/lam120_1.html
http://lordsofeverquest.station.sony.com/beta/register.jsp

(Los Gatos, Calif.) ICTV, a provider of interactive television services to cable TV operators, on Tuesday announced the formation of an U.K.-based European operation, and named Rick Cluthe as managing director of ICTV Europe. The European unit will work with cable TV operators there to develop interactive services like video-on-demand menuing, advanced gaming, online customer care and local content.
http://www.ictv.com

(Fremont, Calif.) Digital imaging software developer ArcSoft on Tuesday released four new codecs designed to add multimedia functionality to mobile devices. The company released its MIDI (Musical Instrument Digital Interface) engine 1.5 for music audio; AMR (Adaptive Multi-Rate) Codec 1.1 for voice data; ArcSoft JPEG Codec 1.1 for images, and the ArcSoft MPEG-4 Codec for video.
http://www.arcsoft.com

(Redwood City, Calif.) Game developer Electronic Arts on Tuesday shipped its "SSX 3" action sports title for PlayStation 2, Xbox and GameCube. Developed by the company's EA Canada studio, the game features online play for the PlayStation 2, and a soundtrack offering new tracks and remixes from artists including Fatboy Slim, Jane's Addiction, N.E.R.D. and Queens of the Stone Age.
http://biz.yahoo.com/bw/031021/215501_1.html 
http://www.ssx3.com

(San Jose, Calif.) Namco Hometek, the U.S. arm of the Japanese game developer, on Tuesday announced development of "Dead to Rights II: Hell to Pay" for PlayStation 2 and the Xbox. Developed internally by Namco, the sequel will be released in the fall.
http://www.namco.com

(Beverly, Mass.) Video game publisher Atari said on Tuesday that it will release an expansion pack and a combo pack for its "RollerCoaster Tycoon 2" PC game later this month. Developed by Chris Sawyer and U.K.-based Frontier Developments, the "RollerCoaster Tycoon 2 Time Twister" expansion pack will be released at the same time as the "RollerCoaster Tycoon 2-Combo Park Pack," which includes the basic game and Wacky Worlds expansion pack.
http://biz.yahoo.com/bw/031021/215052_1.html 
http://www.frontier.co.uk 
http://www.rollercoastertycoon2.com

(Las Vegas) Wireless entertainment publisher Airborne Entertainment said on Tuesday that it will release wireless versions of a number of game publisher Activision Value's titles, beginning with "Tough Trucks," "Skateboard Park Tycoon" and "Cruise Ship Tycoon." Montreal-based Airborne's versions of the games will be released for Qualcomm's BREW platform for cell phones and wireless devices.
http://biz.yahoo.com/prnews/031021/latu085_1.html
http://www.activisionvalue.com 
http://www.airborne-e.com

(Las Vegas) Ztango, a provider of wireless messaging and multimedia content, on Thursday launched a new Latin music ringtone service. Virginia-based Ztango's tonoLATINO service will offer polyphonic ringtones for users of BREW-enabled cell phones.
http://www.ztango.com

(San Francisco) Wired News on Tuesday reported on the potential of Apple's iTunes Music Store, which yesterday launched a version for Windows users, to deter users from file-sharing on peer-to-peer networks like Kazaa, and included commentary from a number of experts. "I think it's exciting, and it will attract several hundred thousand customers," Electronic Frontier Foundation attorney Fred von Lohmann told Wired News. "It's just not a compelling offering to 60 million file sharers. It's not going to entice Kazaa users to give up file sharing."
http://www.wired.com/news/business/0,1367,60901,00.html

(Washington) The Washington Post on Tuesday posted the transcript of an online chat session it moderated yesterday with Sen. Norm Coleman (R-Minn.), who has criticized the methods employed by the recording industry to sue file-sharers, and supports the notion of changing the existing subpoena process used to reveal file-sharers' identities laid out in the Digital Millennium Copyright Act. Sen. Coleman related the testimony of one woman given during a hearing he organized on the issue, who said that, "her discussions with the RIAA were like talking to an abusive debt collection agency. I have concerns about using the law to threaten people," Coleman added. "I don't think you are going to change the behavior of 60 million consumers by the threatening a few individuals with lawsuits."
http://www.washingtonpost.com/wp-dyn/articles/A5486-2003Oct9.html

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