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October 23, 2009 10:00 AM PDT

Amazon, Netflix earnings soar

by Lance Whitney
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You wouldn't know there's been a slowdown in consumer spending by looking at Amazon.com and Netflix.

Both companies have continued to grab customers at a record pace, leading to higher earnings and sales for their third quarters.

Net income for Amazon jumped 68 percent to $199 million, or 45 cents a share, in the quarter that ended September 30, compared with $118 million, or 27 cents a share, in the prior year's quarter.

Sales rose 28 percent to $5.45 billion versus $4.26 billion in 2008's third quarter, the company said Thursday.

Amazon's stock shot up $23.75, or 25 percent, to $117.29 in Friday trading.

Amazon's two-year stock chart.

(Credit: Yahoo Finance)

Amazon attributed its earnings to several key factors.

Chief Financial Officer Tom Szkutak said Thursday in a conference call with reporters that consumers continue to spend at Amazon because of its low prices and large selection. The company noted that it had 98 million customer accounts by the end of the third quarter, 17 percent higher than a year ago.

Worldwide sales from books, CDs, DVDs, and other media grew 17 percent to $2.93 billion, while revenue for electronics and other general merchandise soared 44 percent to $2.36 billion.

Another solid driver for growth was the Amazon e-book reader, Kindle.

"Kindle has become the No. 1 bestselling item by both unit sales and dollars--not just in our electronics store but across all product categories on Amazon.com," Amazon CEO Jeff Bezos said in a statement. The company did not release specific sales figures for the Kindle.

Amazon managed to clobber analysts' expectations. J.P. Morgan had forecast earnings per share of 31 cents on sales of $5 billion. Broadpoint.Gleacher analyst Ben Schachter had been eyeing earnings per share of 33 cents and said that sales were 7 percent higher than he expected.

In a report, J.P. Morgan said Amazon's strong sales growth shows that the company is grabbing significant market share from other e-commerce players, such as eBay.

In his report, Schachter called the results "phenomenal." He noted that Amazon was able to keep its costs in check while gaining market share in virtually every product category. The analyst also said he was "shocked" to hear Bezos' statement that the Kindle has become the company's top-selling item.

For the current quarter, Amazon is looking for sales of $8.13 billion to $9.13 billion, 21 to 36 percent higher than last year's fourth quarter, and racing past analysts' estimates of $8.11 billion.

Collins Stewart analyst Sandeep Aggarwal said in a report that improving e-commerce trends and continued growth for the Kindle, among other factors, could make Amazon the fastest growing large-cap Internet stock.

Another beneficiary of solid customer growth, Netflix also surpassed analysts' expectations for the third quarter.

The company's earnings jumped 48 percent to $30.1 million, or 52 cents a share, versus $20.4 million, or 33 cents a share in the prior year's quarter. Sales grew 24 percent to $423.1 million, compared with $341.3 million in 2008's third quarter.

Overall, analysts had been expecting earnings of 46 cents per share on sales of $420 million.

Growth in subscribers was the key driver for Netflix in the third quarter. The company ended the quarter with around 11.11 million subscribers, a 28 percent jump from the 8.67 million subscribers at the end of 2008's third quarter. Of the current total, 98 percent, or 10.84 million, were paid subscribers, while the remaining 2 percent were free subscribers.

"Our business momentum is strong and our third quarter performance keeps us solidly on course for a record 2009," Netflix co-founder and Chief Executive Officer Reed Hastings, said in a statement.

Though most Netflix customers still prefer to get their movies by conventional mail, Internet streaming has gradually taken off. In the third quarter, 42 percent of Netflix subscribers streamed at least 15 minutes of video, compared with only 22 percent in the prior year's quarter.

Customers can stream their Netflix picks not just through the PC but via gadgets like Microsoft's Xbox 360, which has helped attract new customers.

Now Netflix has reportedly struck a deal to add streaming to another device, which Hastings said is already in people's homes. Though the company has been mum about details, analysts believe it may be a video game console made by either Sony or Nintendo.

Netflix shares were up $4.58, or 9 percent, to $54.22 on Friday.

For the fourth quarter, the company believes customer growth and sales will be higher than anticipated three months ago. Netflix now expects to end the current quarter with 12 million to 12.3 million subscribers, up from the prior estimate of 11.6 million to 12 million. That would represent an additional 900,000 to 1.2 million customers.

Fourth-quarter sales are likely to reach $440 million to $446 million, up from the previous estimate of $431 million to $445 million.

However, the company forecasts a downturn in earnings from the third quarter, eyeing fourth-quarter net income of $21 million to $26 million, or 38 cents to 47 cents a share.

Expenses may be one factor affecting current earnings. Hastings said the company expects to spend more on marketing and licensing fees for Internet streaming. Netflix also believes its postal costs will continue to grow, surpassing $600 million next year and $700 million in 2011.

Originally posted at Digital Media
Lance Whitney wears a few different technology hats--journalist, Web developer, and software trainer. He's a contributing editor for Microsoft TechNet Magazine and writes for other computer publications and Web sites. You can follow Lance on Twitter at @lancewhit. Lance is a member of the CNET Blog Network, and he is not an employee of CNET.
September 9, 2009 7:56 AM PDT

Microsoft to launch virtual DVD service in U.K.

by Lance Whitney
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Microsoft is bringing the DVD experience to downloadable movies--at least in the U.K.

Teaming up with U.K. retail giant Tesco, Microsoft announced Wednesday a new service to offer consumers downloadable videos with the same interactivity, special features, and high quality found on physical DVDs.

Based on Microsoft's Silverlight technology, the "virtual DVD" service will start sometime this fall. It will allow Tesco customers who buy certain movies to also download digital copies of the flicks for their Windows or Mac computers. Besides providing high-quality video, the digital versions will include bonus content, related MP3 files and ringtones, and networked games. Tesco said it is working with "broad range of major movie studios" as part of the deal.

"For the first time, consumers will be able to enjoy a DVD equivalent experience with digital movies, which paves the way for more advanced viewing experiences enabled through Silverlight, Rob Salter, category director for Entertainment at Tesco, said in a statement. "In the future we expect to offer our customers innovative digital solutions that far exceed the DVD experience and deliver exclusive content, Web events, and services wherever and whenever they want them."

Tesco, a grocery chain, has taken advantage of technology to create new business ventures. The company has expanded its reach in recent years to create software and offer a Skype-like VoIP service.

Though the virtual DVD service initially will be available only in the U.K., Microsoft said it expects to branch out to additional markets.

Originally posted at Microsoft
Lance Whitney wears a few different technology hats--journalist, Web developer, and software trainer. He's a contributing editor for Microsoft TechNet Magazine and writes for other computer publications and Web sites. You can follow Lance on Twitter at @lancewhit. Lance is a member of the CNET Blog Network, and he is not an employee of CNET.
June 1, 2009 3:50 PM PDT

Microsoft's Project Natal: What does it mean for game industry?

by Daniel Terdiman
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Microsoft stunned the video game world on Monday with the announcement of its forthcoming 'Project Natal' technology, full-body motion-sensitive technology that should allow gamers to do what they want without holding on to any hardware.

(Credit: Daniel Terdiman/CNET)

LOS ANGELES--For those of you who have been waiting for some really big news to come out of the video game industry, Microsoft answered your call Monday with its innovative "Project Natal," a hands-free motion-sensitive controller system.

Announced during Microsoft's annual E3 press conference, Project Natal seems almost certainly to be the culmination of several years of work by an Israeli start-up called 3DV Systems, which Microsoft recently acquired.

The technology, as demonstrated (see video below), appears geared toward allowing users to control games, movies, and anything else on their Xbox system with their hands alone, and without touching any hardware.

A prototype of 3DV Systems' motion-sensitive video camera, the technology that is most likely behind Microsoft's Project Natal, which it announced at E3 on Monday.

(Credit: Jared Kohler/CNET)

Now, in what is clearly an attempt by the Xbox maker to significantly broaden the potential reach of the console and its Internet component, Xbox Live, Microsoft is betting that it can finally impress many of the millions of people who would never, ever consider themselves gamers but who somehow ended up with a Nintendo Wii in their homes.

How did Nintendo manage to break that barrier? By building a new-style motion-sensitive controller system that allowed users to direct game action by waving the controller around. To swing an in-game tennis racket, you swing the so-called Wii-mote like a tennis racket. To play a bowling game, you swing the Wii-mote in a bowling motion.

Natal, by comparison, provides much of that same functionality, but without having to hold on to the controller. Want to kick a ball in a game? Then make a kicking motion. Want to buzz in in a game show setting? Smack your fist into your hand. Want to share a drawing with an in-game avatar? Draw it and then hold it up to the Natal camera. As seen on-stage at E3, at least, it's all very simple, and very seamless.

So is Project Natal Microsoft's answer to the Wii-mote?

"And beyond, yeah," said Forrester principal analyst Paul Jackson. "Obviously, we've all got, in the game industry...a huge debt to pay to Nintendo for shaking things up a bit with the Wii, and for moving beyond the 37 button controller. This is taking things to the next extreme. Because even with the Wii, you still have (several) buttons, start and select. It's still a physical controller."

Added Jackson, Project Natal looks likely to "remove that final barrier between you sitting in your room and...what's on your screen."

Even given all that, however, a successful Natal launch is unlikely to knock Nintendo from the top of the next-generation console perch. The Wii's install base is huge, loyal and, in many cases, wary of Microsoft. And at the same time, one would have to expect that Sony, too, will be trying to get on the board with a full-scale motion-sensitive system.

Too early to tell
While there's no doubt that Microsoft caught everyone's attention with the Project Natal announcement, it's by no means certain that it will be a business success. For one, the company gave no indication of when the technology would be in users' hands. Nor did Microsoft say whether it would be sold as an Xbox accessory or be bundled with the console.

Microsoft Xbox Senior Vice President Don Mattrick did state that Project Natal would be compatible with every Xbox 360. But he didn't address how much it would cost, or whether it would be backward compatible with older Xbox 360 games. And afterward, Microsoft could not provide any additional details about the technology.

What this all means, then, is that while it's very clear Microsoft has some seriously cool technology on its hands, there's no way to judge--based on what we know right now, at least--whether Microsoft can successfully integrate Natal into its larger Xbox ecosystem. Still, given the company's deep pockets, and its traditional dedication to making new technology dominant, no matter how long it takes, I'd bet on Bill Gates & Co., having a winner with this one.

For one thing, Microsoft will finally have a response to the question of whether it can truly reach the mainstream. At the same time, however, it must find a way to attract that new audience while not alienating its core audience.

That's why Jackson said that no matter what happens with Natal, Microsoft is unlikely to abandon its traditional controller. It has to keep those core gamers, the ones who simply have to have their regular "Halo 3" gaming sessions, happy.

Jackson predicted that initially, Microsoft will sell Natal--or whatever it's called upon its release--in the $99 range. He pointed out that traditional controller systems come in the $50 range, but that Microsoft is going to have to pack some serious high-tech into Natal--a motion sensor, sophisticated directional microphones and video cameras.

SDKs begin arriving
On-stage at E3, Mattrick said that the Project Natal software development kits had just gone out. This means that while most of the video game world is in Los Angeles this week for the show, few people have had a chance to see it.

One who did get a sneak peek at Natal is Epic Games Design Director Cliff Bleszinski, the visionary behind "Gears of War."

"I had a chance to be hands-on with (Natal) a couple weeks ago," Bleszinski told CNET News, "and it was damned fun." But even Bleszinski said he hadn't gotten his hands on a SDK yet, and wasn't able to say anything about the development process.

Director Steven Spielberg came on-stage during the press briefing to praise Microsoft's approach to the mainstream audience with Project Natal.

(Credit: Daniel Terdiman/CNET)

And while one should always take what is said during a press conference with a grain of salt, one would think that someone like legendary film director Steven Spielberg wouldn't heap praise on anyone or anything unless he really meant it. And when he came on-stage during the briefing Monday, heap praise on Natal is exactly what he did.

"I've been asking the crucial question: how can interactive entertainment become as approachable as other forms of entertainment?" Spielberg said. "The vast majority of people are just too intimidated to pick up a video game controller...Despite the size of (the video game) industry, still 60 percent of households do not own a video game console...The only way to bring interactive entertainment to everybody is to make it invisible."

So now we wait. Jackson said given the time frame of the SDKs and how long it takes developers to bring games to market, it would be unlikely that we would see Natal in gamers' hands before the middle of next year. In fact, given that time frame, E3 2010 may be a perfect place for Microsoft to formally launch the technology.

And whether it chooses to do so, it seems guaranteed that when Microsoft takes the stage for its E3 2010 press briefing, it will have some very big news in its pocket.

October 21, 2008 2:44 PM PDT

LucasArts, BioWare unveil new 'Star Wars' game

by Daniel Terdiman
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A screen shot from the forthcoming online game, 'Star Wars: The Old Republic.' The game, which is from LucasArts and BioWare, picks up where the 'Star Wars: Knights of the Old Republic' franchise left off.

(Credit: LucasArts/BioWare)

Updated at 4:13 p.m. PDT: This story now includes more information from the press event announcing 'Star Wars: The Old Republic' at LucasArts Tuesday.

SAN FRANCISCO--At a press event at LucasArts' headquarters in the Presidio here Tuesday afternoon, LucasArts and BioWare unveiled Star Wars: The Old Republic, a new massively multiplayer online game.

Click tio view image gallery.

(Credit: LucasArts/BioWare)

The game is set about 350 years after the popular Star Wars: Knights of the Old Republic games and about 3,500 years before the Star Wars movies.

The companies did not divulge a release date and it appears that they will not show any live game play. But with the announcement, LucasArts and BioWare--which is now owned by Electronic Arts--have pulled the curtain back on what appears a large-scale online game in which players will be able to take on roles and create their own, personal Star Wars story lines.

"We're excited to be working again in the Star Warsuniverse," said BioWare co-founder Ray Muzyka. It's a "rich period, (a) dynamic period full of Jedi and Sith and other dynamic characters you get to play."

Muzyka explained that the designers of the game wanted to ensure that The Old Republic was a story-based MMO that followed in the tradition of the Knights of the Old Republic.

He added that while people have often asked BioWare if the company would ever produce the third installment in the Knights of the Old Republic franchise, this new game amounts to installment Nos. three, four, five, six, seven, eight, nine and beyond.

"The game is that big," Muzyka joked.

As designers, Muzyka added, he and his team ensured that The Old Republic featured four main "pillars." These include exploration, discovery, combat, and story.

An exterior screen shot from Korriban in the new game 'Star Wars: The Old Republic,' from LucasArts and BioWare.

(Credit: LucasArts/BioWare)

BioWare co-founder Greg Zeschuk also explained that the game is designed around making it possible for players unfamiliar with MMOs or with the Knights of the Old Republic franchise to pick it up and start playing immediately.

James Ohlen, the creative director of BioWare's Austin, Texas, studio, where the game was designed, explained that players would get to choose many different things in the game like class, whether they're good or evil, how the story unfolds, whether they represent the Galactic Empire or the Sith Republic and more. And within separate classes, he said, each class has their own story line to pursue.

For now, the companies are not saying when the game will be released--or even what year--or discussing the business model behind it.

But as Muzyka said, "Fans certainly expect a certain way to get into (an MMO), and we're going to accommodate them."

That suggested that the game would be based on a traditional MMO subscription model in which players would pay a monthly fee to play.

And while Star Wars fans will have to wait some time before getting their hands on the game, there is a full synopsis of the story line, as made available by LucasArts and BioWare in press materials:

The Galactic Republic stood for generations as a bastion of peace in a galaxy of warring star systems. Protected by its stalwart Jedi guardians, the Republic held the greatest hope for the progress of civilization and galactic unity.

Deep in unknown space, however, a mighty Sith Empire was forged, led by dark Sith Lords who dreamt of galactic domination and vengeance against their ancient Jedi enemies. After centuries of preparation, the time came for the Sith to make their return.

With a massive fleet and an awe-inspiring army of fearless troops, the Sith Emperor launched a surprise assault, quickly capturing dozens of worlds in the Outer Rim, and sparking a war unlike any other in the galaxy's history.

From the frozen wastes of Ilum to the desert plains of Dathomir, violent battles killed untold millions. Despite its avowed neutrality, surface structures on the water-covered world of Manaan were completely destroyed, forcing the Selkath to retreat to their ocean underworld. Other star systems fared worse--some destroyed, others left uninhabitable. The carnage concluded with the Sith Empire sacking the Republic's capital planet of Coruscant and forcing the Republic Senate into the controversial Treaty of Coruscant.

In the years since the treaty, fear and uncertainty have gripped the galaxy, enabling the Sith Emperor to pursue his own mysterious purposes while the Republic has made efforts to rebuild its infrastructure and adjust military priorities to the new galactic landscape.

Now, tensions between the Republic and the Empire are running high, and a series of border skirmishes and proxy wars have broken out, even on planets as historically peaceful as Alderaan. The uneasy truce established by the Treaty of Coruscant is quickly tearing apart at the seams, and a return to all-out war has begun in all but official terms.

A new generation of heroes, both light and dark, emerges to face the difficulties of these chaotic times, and fight for the fate of the galaxy in this most desperate age.

The Republic

For more than twenty thousand years, the Galactic Republic has been the most civilized and advanced power in the known galaxy. Governed by the Galactic Senate with representatives from hundreds of star systems and planets, the Republic has been the center of peace and progress, a bright beacon in the darkness of outer space.

The revered Jedi Order has sworn itself to defend the Republic, to battle the darkness, and to bring peace and balance to the greater galaxy. The Jedi have served for millennia in this capacity, and in that time they have earned themselves the admiration of their allies, and the hatred of their enemies.

Less than a century ago, the greatest of those enemies returned...

The onslaught of the Sith Empire caught the Republic and the Jedi completely by surprise, and during a long and arduous war, the Republic was broken. After the capital planet of Coruscant was ravaged by the Sith's Imperial forces, the Supreme Chancellor and the Senate were forced to sign the painful Treaty of Coruscant, which required the Republic to withdraw its support of several long-standing allies, including the ever-loyal Bothans.

Struggling with a wave of withdrawing star systems, an insurmountable supply crisis, and chaos on the streets of Coruscant, the Senate has become paralyzed in the years since the treaty. The bitter and divided nobility of the Core Worlds disputes every decision, damaging the morale of the Republic's already discouraged citizens.

Blaming the Jedi for the failures that led to Imperial domination, the Senate has distanced itself from the Republic's legendary guardians. The Jedi remain committed to protecting the Republic, but the Jedi Council has moved from Coruscant to the ancient Jedi homeworld of Tython.

The Republic has trained up new squads of Special Forces, disciplined teams capable of working together with near-perfect efficiency. These elite troopers still work often in conjunction with the Jedi, but in many places, the troopers have taken the prominent role in providing the Republic's defense.

Despite a post-war economic depression and the continued expansion of its enemies, the spirit of the Republic remains independent, brave, and strong. New leaders are stepping forward even now to stand against the dark Sith Empire, liberate the galaxy, and restore the Republic to its former glory.

The Empire

The true origins of the Sith remain shrouded in mystery. The Sith race was, in fact, largely unimportant until three thousand years ago, when Dark Jedi exiles arrived on Korriban and subjugated the Sith beneath their rule and their philosophy.

As the years passed, the Dark Jedi intermarried with those they ruled, and within generations, the word "Sith" took on new meaning. This powerful new civilization began expanding rapidly, led by a growing population of ambitious dark Force-users. Fifteen hundred years ago, the Sith civilization's boundaries reached the Republic, and the Great Hyperspace War began.

Dark Lord of the Sith Naga Sadow led his armies in an aggressive campaign to destroy the Galactic Republic. Though the Sith were successful at first, the Jedi Order rallied back to defeat their dark counterparts, systematically destroying the Sith civilization on Korriban.

Unbeknownst to the Jedi however, the last Emperor of the Sith managed to escape the carnage and fled into Deep Space with his most trusted Dark Lords. These surviving Sith began rebuilding their society on a distant planet, hoping to one-day return for revenge.

Over the course of the next thousand years, the Sith Empire recovered its strength. The Emperor developed a massive Imperial military, a fleet of advanced warships, and undertook dark rituals which prolonged his life and his undisputed rule.

When the time for vengeance arrived, the Sith began infiltrating star systems in the Outer Rim, sowing seeds of discord and making secret deals with local criminals and warlords. With all the pieces perfectly in place, the Sith launched an enormous offensive which caught the Jedi completely off-guard. In the first wave alone, the Sith succeeded in seizing control of several star systems in the Outer Rim, destroying the Republic's shipyards in the Sluis sector, and strangling the popular Rimma Trade Route.

After the initial crush, the Emperor's brilliant strategies continued and the brutal force of the Imperial military slammed the Republic time and time again, from the deep sinkholes of Utapau to the tall forests of Agamar. Though it seemed the Empire was capable of waging war indefinitely, the Emperor surprised the Republic yet again.

While the Emperor's Dark Council engaged Republic leaders in peace talks, several Sith Lords and an elite Imperial army sacked the Republic's capital planet. Destroying the Jedi Temple and holding the planet hostage, the Sith left Republic leaders no choice but to surrender several outlying star systems by signing the Treaty of Coruscant.

Since the treaty, the Emperor has withdrawn to pursue his own mysterious goals, deferring control to the Dark Council, and setting the stage for a brutal power struggle. In the political vacuum, the strongest and most cunning Sith and Imperial leaders are rising up to assume authority, consolidate the Empire's dominion and crush its enemies.

Originally posted at Geek Gestalt
October 8, 2008 9:00 PM PDT

Microsoft unveils new Xbox Live 'experience'

by Daniel Terdiman
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In the new Xbox Live experience, much of the interface is designed to cascade horizontally across the screen, allowing users to see a wide selection of choices. On HD TVs, users will be able to see even more information, given the wider screen.

(Credit: Microsoft)

Whether you're one of the legions of hard-core Xbox players or someone who's only played with the game console casually, get ready for an all-new Xbox Live.

Since the first announcement of the new approach to the massively popular service at E3 in July, some longtime fans have fretted that Microsoft is morphing it into a place for purely casual players at the expense of those for whom Xbox Live is nearly as much a home as where they actually live.

Well, based on a demo I got recently of the (not quite finished) new version of Xbox Live, I'd have to say, fret no more.

Dubbed the new "Xbox Live Experience," this re-launched service--which is rumored to be launching in November, but which Microsoft will only say is due "before Christmas"--really does seem to have something for everyone: an easy-to-use graphical interface complete with deeply customizable avatars that casual players will enjoy, and all kinds of new functionality that will actually reward the dedication of the hard-core Xbox player.

With the new Xbox Live interface, users will be able to see all information relevant to their account in a simpler, easier-to-understand format.

(Credit: Microsoft)

Microsoft readily admits that there may be a bit of a transition period for those core players--a time during which a lot of griping might be heard--but the company fully expects a gradual realization on the part of those players that the new service takes the existing Xbox Live and adds all kinds of new community and interactive functions to it.

And, again, I would have to agree.

To date, the Xbox Live interface has been based on what are called blades, essentially pages of information stacked on top of each other in such as way as to maximize the number of choices Xbox Live players have and the directions in which they can go. They can see lists of games to play, choose to watch a movie, go into a section to buy add-ons for games, and so on. The new interface largely does away with the blades era and moves into a more advanced motif of full windows that spread out on the screen and stretch off into the distance, allowing users to shuttle through them, left to right or right to left.

But that's getting a little too far ahead.

... Read more
Originally posted at Geek Gestalt
September 30, 2008 7:11 AM PDT

Playing Iron Man for a day

by Daniel Terdiman
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While wearing a motion-capture suit, CNET reporter Kara Tsuboi shows how her movements are translated instantly to an 'Iron Man' character on the screen behind her. The technique is used in an increasing number of films to mix live-action footage with digital, 3D sets.

(Credit: Daniel Terdiman/CNET News)

SAN FRANCISCO--On Tuesday, the DVD version of the mega-hit film Iron Man will be released, and to celebrate, the visual effects superstars at Industrial Light & Magic decided to show off just a little bit more magic behind the movie.

Back in April, ILM invited me and a couple of my colleagues to their fantastic facilities here for a look at the technology behind the famous suit used in Iron Man. Recently, they invited us back to see how the seamless animation in some of the film's scenes--such as one famous shot involving the throwing of an Audi--was produced.

In particular, they wanted to give us the inside scoop on the motion-capture technology used to create a number of the film's scenes, a technology that is increasingly being used today that allows directors to see, in real time, while the actors are acting, what animated sequences will look like.

Click for gallery

That's why we--myself, CNET reporter Kara Tsuboi, and a cameraman--spent several hours on an ILM image capture stage last week: So that Tsuboi could don a motion-capture suit and we could all see how footage of her would translate instantly into an animated Iron Man scene.

The idea is that George Lucas--who owns the effects studio--wants to give filmmakers advanced technological tools that provide them with flexibility and efficiency. And so he staffs ILM with the kinds of people who can make that happen.

"We understand the entire process," said , "from writing code to animating creatures to even shooting live elements. So we know each layer in the process. We understand the vision of the key creatives and understand" what the actors are going to do.

The technology used at ILM--and elsewhere, as well--allows directors to mix real filmmaking and virtual spaces, but with full camera control, depth of field, tracking, and panning. The upshot? A filmmaker can have an entire digital set created, then have an actor perform on the image capture stage wearing the motion-capture suit, and see, as the filming is happening, how the actor's character looks superimposed on the digital background.

... Read more
Originally posted at Geek Gestalt
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