Crave

A test 'Square' in action, and a screenshot of the geo-tagged receipt.

(Credit: Engadget)

Well, we finally have a glimpse at "Square," the new mobile payments venture coming from Twitter co-founder and chairman Jack Dorsey. As expected, it's a little hardware add-on that can turn an iPhone into a credit card reader.

The funny part: Details about the small-business-oriented project have been on the Web for months. It was just that nobody had put two and two together until some eagle-eyed folks at Engadget realized that a URL on a screenshot of the "Square iPhone Payments Venture" first reported by Coolhunting matched a domain registered to Dorsey.

Dorsey, who stepped down as Twitter CEO almost exactly a year ago, is headquartering the company in New York, though we hear he already has employees in both Gotham and San Francisco. Its Web site will likely be located at SquareUp.com. Currently, that site is a collection of links to a smattering of businesses, including Sightglass Coffee, a new San Francisco coffee shop in which Dorsey has invested. (Wanna bet they're testing Square out there?)

From Coolhunting:

The innovation is in a small, plastic card reader that fits in to the headphone jack of an iPhone (or iPod Touch) and transfers the credit card's swipe data to the app. After the employee enters the amount to charge, the customer confirms by scrawling their signature with their finger and then either one enters the customer's email address to send the receipt to. The payment is processed by Square for a small percentage plus a fixed fee; the funds are transferred directly to the store's bank account, cutting both time and complexity on the processing side. The customer's receipt includes a map showing the location of the transaction which is handy for those who record, sort and file such things.

We heard that the venture is being called Square rather than "Squirrel," its originally reported name (according to TechCrunch's MG Siegler, this is because it looks kind of like an acorn) due to some unclear legal-copyright-licensing-whatnot issue. CNET News first reported the name change along with the news that Dorsey had been an angel investor in location-based mobile navigation start-up Foursquare.

Funding a hardware venture is typically more expensive than a Web-based one for obvious reasons: the up-front cost of production and manufacturing.

But two sources with knowledge of Square's logistics said that Dorsey believes he can keep production costs extremely low, possibly manufacturing a "square" at a cost of about 40 cents apiece. The company may then even give the devices away for free, making money instead on transaction fees. That's the old Gillette razor business model--make the razors cheap or even free, but replacement blades more expensive.

Regardless, we hear Dorsey has been working on a funding round.

Amazon CEO Jeff Bezos shows off the Kindle DX

(Credit: Sarah Tew/CNET News)

NEW YORK--Amazon CEO Jeff Bezos unveiled the much-anticipated large-screen Kindle e-reader in a lecture hall Wednesday at the downtown Pace University. Called the Kindle DX, the new device is geared toward readers of personal and professional documents, newspapers, and magazines--and textbooks, a potentially huge target market.

The debut of the bigger Kindle wasn't exactly a secret: rumors of a larger-screen Kindle had been around for quite some time, and concrete reports began to surface earlier this week.

Amazon's Kindle DX

(Credit: Amazon)

According to Amazon's Kindle DX page, the device has the following:

• A 9.7-inch display with 16 shades of gray. (The standard Kindle has a 6-inch display.)

• Capacity to hold up to 3,500 books, periodicals, and documents.

• An auto-rotating screen to show either portrait or landscape views.

• A built-in PDF reader.

• 3G wireless network support with no monthly fees or annual contracts.

• Battery capacity to "read for days without charging."

• Text-to-speech abilities to read publications aloud.

Several of those features are shared with the current Kindle 2, but several are unique to the Kindle DX: the native PDF reader that doesn't require the files to be converted, the rotating display, the 3,500-publication capacity compared to 1,500 for the Kindle 2, and of course the larger screen.

The Wii - catch it if you can.

(Credit: Walmart.com)

Discount retailer Wal-Mart on Monday announced that it has started to sell "tens of thousands" of Nintendo's Wii gaming console online. The 2-year-old gadget, consistently sold out and difficult to obtain, emerged as one of Black Friday's big hits amid a bleak economy.

On Friday night, the Wii was sold out on Wal-Mart's Web site as well as the Web sites of electronics retailers Best Buy and Circuit City, Reuters reported. On Monday morning, they were in stock.

Wal-Mart plans to sell the Wii consoles online for a price of $249.24 (Best Buy's listing price is about 50 cents more expensive, so it's not a deep discount) along with a $329 "value bundle" that contains extra controllers and some other add-ons.

The retailer is also offering discounts on Wii accessories and games.

This post was updated at 6:49 a.m. Pacific time to add comment from Facebook.

Facebook may be getting closer to launching a music service that competes with Apple's iTunes, the Financial Times reported Wednesday.

Sources told the publication that Facebook has been approaching major record labels about licensing deals so that it can sell music through its Web site.

It's a long-standing rumor that has once again floated to the surface of social-media chatter.

Music sales would provide Facebook with an alternative revenue stream--the site currently relies on advertising, which many have said is precarious for a social network--and would additionally help it compete with bigger rival MySpace.com, which has a service called MySpace Music in the works and has the big-media backing of parent company News Corp. to give it an extra push in the entertainment industry. For the labels, selling music on already-popular social-networking sites is a way to tap into a youth market that has been abandoning CDs.

But it wouldn't necessarily be a good thing for companies that have built music-related applications on Facebook's developer platform. Some of them, like iLike, Imeem, and CBS Interactive's Last.fm, have ad-supported streaming or paid downloads already tied into those developer applications and it's unclear what would happen if Facebook creates an in-house competitor.

The Financial Times article suggests that like MySpace Music, the shadowy Facebook music initiative would likely offer both streaming music and downloads. "While details remain vague, record executives said that they expected a service would offer consumers free streams of music, supported by advertising, as well as the ability to pay for downloads in MP3 format, which can be played on any device," the Financial Times article stated.

The logo for the 'Music on Facebook' page. But right now, it offers artist resources for 'fan page' creation, not streaming music or downloads.

But this all might take awhile. "Facebook Music" is something that has been talked about for months and so far has borne no fruit. Back in October, AllFacebook blogger Nick O'Neill said that he was familiar with someone interviewing for the position as head of Facebook's "music division" and that the social network was already in negotiations with record labels.

But rumors of a full-out Facebook music service grew muddled with early reports about the site's "fan pages," which Facebook encourages bands and artists to create as promotional tools. A Wired blog report about Warner Bros. looking for a Facebook application developer likely dealt with the creation of fan pages and surrounding applications, not an iTunes-like music service as blogger Eliot van Buskirk speculated.

Facebook's "fan pages" launched in November as part of the company's new social advertising strategy. Since then, the company has created "Facebook Music" and "Facebook Film" hubs to promote the creation of those fan pages and offer tools to musicians and filmmakers who want to build a presence on Facebook. And at this month's South by Southwest Festival in Austin, Texas, Facebook will be throwing parties and developer events not only at the geek-saturated South by Southwest Interactive division but also for the indie confab's music and film festivals.

Facebook representatives have stressed that the music and film pages are strictly tied to the fan pages, not any kind of upcoming commerce.

"Facebook did not launch any new music or film products in recent weeks," the company said in a statement responding to a request for comment. Facebook "created informational pages called 'Music on Facebook' and 'Film on Facebook' as guides and resources for musicians, bands and filmmakers wanting to create their own Facebook Pages. The ability for musicians, bands and filmmakers to create Facebook Pages has been available since the launch of the Facebook Pages product on Nov. 6."

The company also highlighted the fact that it does not have a partnership or formal agreement with iTunes and that any links between Facebook and iTunes are on behalf of developers who have integrated them into their third-party applications.

Clearly, Facebook wants to make a play for pop culture, but these latest rumors about big agreements with the record labels aren't much more substantial than the ones we read five months ago.

For those who came in late, Blu-ray has won the format war.

On Wednesday, online retailer Amazon.com became the latest to declare its support for the victorious high-definition technology, announcing that it "will more prominently promote Blu-ray hardware and software products on its Web site." The company will not, however, discontinue its sales of HD DVD products.

"The high-definition landscape is rapidly changing, and consumers are looking for guidance on how to make the best high-definition buying decisions," Peter Faricy, Amazon's vice president of movies and music, said in a statement from the company. "Our customers have clearly voiced their support for the Blu-ray format."

But in a sense, Amazon is also an indicator that Blu-ray's struggles aren't quite over. With its Unbox movie download service, Amazon is among a number of major Web retailers that offer digital downloads of movies and TV shows. Some have said that with all the bickering over HD DVD and Blu-ray for so many months, digital downloads from companies like Amazon, Netflix, and Apple's iTunes were able to find a steadier footing.

Luckily for Blu-ray overlord Sony, your average digital movie download isn't nearly up to par in the quality department.

(Credit: buyyourfriendadrink.com)

This post was updated at 1:04 PM PT to clarify the launch date of the Drink Card program.

Forget your run-of-the-mill Best Buy and Barnes & Noble gift cards. I know more than a few people who think a gift card that you could redeem for whiskey sours or Stella Artois would make a way better stocking stuffer.

Meet the "Drink Card" from BuyYourFriendADrink.com (BYFAD). The ambitious little start-up allows you to pay a dollar amount by credit card that a friend can then redeem for a drink at a participating bar by showing a text message code, has continually been one of our favorites to cover. Perhaps it's because a benevolent editor used the service to remotely buy me an apple martini that I then ordered at a local bar by showing the bartender a code in a text message--at 3:00 in the afternoon.

The service has expanded quite a bit since our initial test run, including launching a partnership with party-hearty social network Going.com and expanding beyond its original home base of New York to more than 120 bars and restaurants in New York, Chicago, Boston, Los Angeles, D.C., New Orleans, and Biloxi. (Sorry, San Francisco. You got one-upped by Biloxi.)

On Thursday, BYFAD will officially launch the Drink Card, which is exactly what you think it is: a credit card-sized piece of plastic that the bartender can swipe like a credit card to deduct the proper amount. You'll be able to fill one up for yourself or a friend with anywhere from $5 to $250, which means that won't cover anything really expensive. But here's the cool part: not only will each card come with a free $10 right off the bat, you get a 20 percent bonus, so that if you add $25 to a Drink Card, you get an extra $5. As a release from the company read, "It's a cool way to get a free round before you even leave for a bar or restaurant." Well, not really, since it can't magically make a Hoegaarden appear in front of me (complete with lemon slice), but I guess it does still constitute free drinks.

Sure, the whole process is a little complicated, especially if either party is under the influence, but it's a cute gimmick, and the fact that BYFAD takes a small commission from each purchase means that with a critical mass of eager drinkers, the company could actually be profitable. It's hoping to continue its expansion, too, with upcoming features including mobile ordering and a revamped bar search. And let's hope they add some San Francisco bars to their roster (a company representative has hinted that this is on the way). I want to buy my lovely West Coast colleagues some beers soon.

On a closing note, it goes without saying: please drink responsibly.

I'd initially been skeptical about BuyYourFriendADrink.com (BYFAD), the Web site that just opened today (see previous coverage) in which you can remotely order drinks for your friends that they can redeem at participating bars by showing the bartender a code in a text message. It's available at about 40 bars in New York City and the surrounding area, and the company plans to gradually expand to other urban areas over the course of the year.

I'd been pretty confident that the site itself would work, but I hadn't been entirely positive that the bars involved would really have their act together. Rafe Needleman was very kind to use BYFAD to text me a few bucks so that I'd be able to try the service out, but going into it, I was fully expecting that I'd be greeted with a strange look when I tried to pay for libations with a code in a text message.

However, when CNET associate producer Wilson Tang and I rolled into the Mad Hatter Saloon, just a few blocks from our Manhattan bureau, we were pleasantly surprised. The bartender initially wasn't aware that BYFAD codes could be contained in text messages (she'd thought it would be in the form of an e-mail printout) but she was aware of the site and knew what to do. There was a bit of a delay while she entered the code into the bar's credit card system, but I think that's something that most people will be willing to accept.

The apple martini that I bought with a text message

(Credit: Caroline McCarthy)

It basically did work just like a gift certificate or promotional code. Our balance went slightly over the amount Rafe had sent, because there were two of us, but that went through quite smoothly--we just handed over the amount of cash required to settle the check. And I had a darned good apple martini (though not an iMartini). Thanks, Rafe!

So, I give BuyYourFriendADrink a thumbs-up. Sure, it's gimmicky, and it's still very limited. But now when I win bets with my West Coast-based colleagues, I don't have to wait until I'm traveling out there for my "you owe me a beer" agreements to be fulfilled.

How many times have you been IMing with a friend or co-worker across the country, placed a bet ("If that Sanjaya guy gets the boot tonight, you owe me a beer!"), completed said bet, but had no immediate way to fulfill it because the other person involved was miles away? Well, now there's a brand-new solution--but just for New Yorkers, for the time being.

BuyYourFriendADrink.com was launched today and announced on the New York edition of e-mail events service Thrillist. BuyYourFriendADrink, or BYFAD, is a way to purchase libations for your friends online, which they can then redeem at participating establishments with the help of a text message. If you owe a friend a drink, or just want to be nice, head on over to the BYFAD Web site and fill out the form--you'll need to have that friend's cell phone number on hand. You can opt to give them a dollar amount between $5 and $250, and there's a 99-cent processing fee. Then, your friend receives an e-mail and a text message alerting them of the yummy drinkable gift, along with a promotional code.

The recipient then, presumably, can look up BYFAD-participating bars, choose one of them, and head over there. Then, he or she can just show the text message at the bartender, and it's processed through the bar's credit card system. So, basically, it's like a gift certificate by text message--nothing really revolutionary in the technology, but as far as we know, this is the first company to give SMS gift certificates a quick, tech-savvy happy-hour slant. It sounds almost too easy, but then again, mobile commerce is gaining some real speed these days.

I called up BYFAD's CEO, Steven Cohn, to see about the site's future plans. Currently, there are deals with 46 bars in New York City and the surrounding metro area (Hoboken, NJ and Long Island), 38 of which are active. The remaining eight should be added over the next few weeks. As for expansion outside of New York City, Cohn told me that several other northeastern and mid-Atlantic cities--Boston, Philadelphia, and DC--will be rolled out over the next few months. Other cities, including San Francisco, should be added in the second half of 2007.

The big question is--does it work? We'll see! CNET's small but fun-loving NYC outpost will be giving BYFAD a test run this afternoon once it's a more, uh, appropriate hour for beer. If it runs smoothly, I think this shows real promise.

See also: Happy Hour 2.0.

Are you stuck trying to find the perfect gift this year? If you have $6.8 million U.S. there's a 217-acre island in Poland waiting.

Szercki Ostrow, in the middle of Sniardy Lake (right near Czarci!), is up for sale on Private Islands Online, which specializes in, you guessed it, selling islands.

Naturally, a lot of the islands up for sale are in sunnier climes. Garip Island in Turkey sells for $20 mil, and it is only 88 acres. There's one in Greece for 1.5 million Euros, but it's only 2.5 acres. That won't even fit a decent miniature golf course.

The real bargains are up North. Little Cumbrae Island, going for 2.5 million pounds, is 684 acres and comes with some houses and the remains of a castle. It's also in Scotland, where beach resorts aren't too common.

"Over the years there have been a number of shipwrecks on Wee Cumbrae," the site reads.

Davis Island near Nova Scotia, all 0.8 acres of it, sells for $27,900 Canadian. That's less than a Winnebago.

Personally, I'm going to save up for Nsonga, a $999,500 island in Lake Victoria, just 20 minutes from Uganda by canoe.