SpicyBrownMustard writes "There's no secret to a rising level of 'Silicon Valley fatigue' lately, and the new reality show certainly isn't helping. And with hacker hostels packing in twenty somethings fueling the 'it's okay to fail' incubator culture that now is actually hurting startups, it's no wonder weariness with the culture is setting in. Forbes.com asks the question: Is Phoenix The Next Silicon Valley? The article covers a startup with a couple names you might know, who picked Phoenix due to its much lower cost of living and different quality of life. The startup's CTO, 'explains that having so much more financial freedom lowers the stress associated with working for a startup, as he can enjoy work/live balance.' Their location certainly didn't hurt fundraising, as they managed $2 million in seed capital. Are we indeed moving on from Silicon Valley for tech startups?"

New submitter Hanike writes "According to The Verge, Japanese hi-tech company Suidobashi Heavy Industry is developing a 13-foot, diesel-powered, real Mecha robot called Kuratas! 'The two-man team — artist Kogoro Kurata and robotics researcher Wataru Yoshizaki — isn't stopping there, either. Suidobashi wants to mass produce, starting at the low price of $1.35 million. So, what do you get for the money? Kuratas has over 30 hydraulic joints that allow it to freely move its arms, legs, and torso. It can fire water bottle rockets and fireworks, and its 6,000 round-per-minute BB Gatling guns are controlled with the pilot's smile; part of Yoshizaki's V-Shido (read like bushido, as in "way of the samurai") control system. In order to get around, the four-legged mech uses ordinary wheels, but the Suidobashi team wants to get it walking in order to navigate uneven terrain.'"

angry tapir writes "The Internet Corporation for Assigned Names and Numbers (ICANN) has backflipped again on the process for evaluating applications for new generic top-level domains such as .bank and .lol. The proposal to evaluate applications in batches of 500 had been subject to criticism from registrars, particularly the 'digital archery' component, which would be used to determine which batch an application would be part of. Last month, ICANN scrapped digital archery altogether, and now ICANN has announced that it will seek simultaneous processing of all applications. The reason people were annoyed at the batching process was it meant that even if an application for a new domain was complete and correct, and even if a domain application was not contested by anyone else, it could end up going live years after other new TLDs did. Given it will cost over a couple of hundred grand to run a new TLD, people were upset. The whole gTLD process has been fraught with delays and security breaches."

cweditor writes "Grupo Posadas has five data centers supporting more than 100 hotels and other lines of business, but it's moving almost all of those operations to a service provider in Texas. Could cloud service providers help the U.S. become a destination for tech outsourcing instead of an exporter of tech jobs? One stumbling block: The U.S. finds itself on the receiving end of protectionist legislation in other countries that discourages use of non-domestic IT service providers, says the Information Technology & Innovation Foundation."

An anonymous reader writes "Project Glass made a big splash not too long ago at Google's annual developer conference when they showed several users falling on to the Moscone West in San Francisco. Google's pretty bent on showing us the sharing possibilities with Project Glass, but it feels like in time that technology could become a ubiquitous part of our lives. Fortunately for those of us who lack a hyperactive imagination, a short film popped up recently that can help fill in the blanks. The world created in the film was made possible by wearable tech. Games, cooking challenges, information in real-time about the person you are talking to, all made possible by the contact lenses being worn. And of course there's a darkside to the equation, the potential to hack and therefore influence the actions of others. Ultimately, it's a realistic idea of the future we all face."

Kurt Eichenwald has written a lengthy article about Microsoft's slow decline over the past 10 years, cataloging their missteps and showing how consistent, poor decision-making from management crippled the tech titan in several important industries. "By the dawn of the millennium, the hallways at Microsoft were no longer home to barefoot programmers in Hawaiian shirts working through nights and weekends toward a common goal of excellence; instead, life behind the thick corporate walls had become staid and brutish. Fiefdoms had taken root, and a mastery of internal politics emerged as key to career success. In those years Microsoft had stepped up its efforts to cripple competitors, but—because of a series of astonishingly foolish management decisions—the competitors being crippled were often co-workers at Microsoft, instead of other companies. Staffers were rewarded not just for doing well but for making sure that their colleagues failed. As a result, the company was consumed by an endless series of internal knife fights. Potential market-busting businesses—such as e-book and smartphone technology—were killed, derailed, or delayed amid bickering and power plays. That is the portrait of Microsoft depicted in interviews with dozens of current and former executives, as well as in thousands of pages of internal documents and legal records." We discussed a teaser for this piece earlier in the month — the full article has all the unpleasant details.

The Megaupload case continues, and on Friday attorneys for the U.S. government made some interesting claims. They were in court to argue against a request to dismiss the indictment against Megaupload that was raised on the grounds that Megaupload has no U.S. address. After a debate about jurisdiction and precedent, this happened: "The government also argued that it could keep Megaupload in legal limbo indefinitely. 'None of the cases impose a time limit on service,' the government's attorney told the judge. Therefore, the government believes it can leave the indictment hanging over the company's head, and keep its assets frozen, indefinitely. Not only that, but the government believes it can continue to freeze Megaupload's assets and paralyze its operations even if the judge grants the motion to dismiss. That's because in the government's view, the assets are the proceeds of criminal activity and the prosecution against founder Kim Dotcom will still be pending. The fact that the assets are in the name of Megaupload rather than its founder is of no consequence, the government claimed."

In a follow-up to a story earlier this week, derekmead writes "Skype has gone under a number of updates and upgrades since it was bought by Microsoft last year, mostly in a bid to improve reliability. But according to a report by the Washington Post, Skype has also changed its system to make chat transcripts, as well as users' addresses and credit card numbers, more easily shared with authorities. As we've already seen with Facebook and Twitter, big Internet firms aren't digging their heels in against government requests, which shouldn't come as a shock; angering the authorities is bad business. The lesson then is that, while the Internet will always retain a vestige of its Wild West days, as companies get bigger and bigger, they're either going to play ball with governments or go the way of Kim Dotcom."

the_newsbeagle writes "The annual computer poker competition has just wrapped up, in which artificial intelligences battled each other over the (virtual) Texas Hold 'Em table. A researcher who worked on one of the top programs, the University of Alberta's "Hyperborean" program, has blogged about this year's competition and entrants for IEEE Spectrum. His first post explains the rules of the game and why it's tougher for a computer to win at poker than at chess; his second post describes Hyperborean's strategies, and the third gives the results and takes stock of Hyperborean's performance."

jfruh writes "Comcast customers who dream of superfast download speeds drooled when they heard the company would be offering 305 Mbps service. There's only one catch: the high speeds are only available in markets where the cable giant is going head-to-head with Verizon's FiOS service. It seems that competition really does improve service quality when it comes to ISPs."

Hugh Pickens writes writes "Have you noticed your Facebook stream or looked at reddit lately? A huge chunk of what goes by lately are photos with text over them, usually quotes about this or that. 'It's the Junkweb,' writes Chris Brogan. 'Why "junk?" Because the original intent of the Internet was that links were gold, that searchability was key, that this ability to find anything and use resources from wherever was magic. And this new web? The web of pictures with text over them? They're junk. They're a dead end. The picture is the payload.' Facebook and Pinterest are doing what so much of our 'awesome' tech hasn't been able to do well: let the everyperson into this universe. For whatever reason, the 'photos with text' experience gives us that feeling we get when we read magazines. 'It makes the texty text of blogging a lot less stark. It draws our eyes in. It's fast to consume, and it brings an emotional response faster.' Now with the release of Google's Panda search technology, it has been acknowledged that links and pages aren't everything and with Google+ goes the realization that it's no longer a links-only world. who shares is as important as how it's shared. 'I'm spending far more time on the Junkweb than I am on the Smartweb,' concludes Brogan. 'Deny it, if you want. The numbers show otherwise. We are in love with this new method of interacting.'"

nmpost writes with one interpretation of Netflix's Q2 results (PDF). From the article: "The beginning of the end may be at hand for Netflix. On Tuesday, the movie rental company posted its second quarter results, and they were not promising. While the company returned to profitability following a first quarter loss, Netflix had a 91% drop in net income. The company's troubles began when it attempted to split its DVD-by-mail and streaming services, effectively doubling the price it was charging customers. External forces are now beginning to weigh on the company, and its doom appears to be within sight. The biggest challenges facing Netflix over the coming months are going to be competition and licensing fees. Three huge companies are competing against Netflix in the streaming arena, which has already surpassed its DVD-by-mail business. Amazon, Apple, and Google all offer streaming content as well. As movie and television studios began to demand higher licensing fees, Netflix will not be able to pay, while these tech giants will. Netflix will eventually be priced out of the market." Engadget, on the other hand, shines some positive light on the report: "The results are in from its Q2 2012 earnings report, and it's claiming 27.56 million streaming subscribers worldwide, up from 26 million last quarter. In the US alone that includes 23.94 million customers, after it reported 23.4 million in Q1, while DVD customers dropped by 850k to 9.24 million." So it appears that Netflix is either gaining new streaming customers, or converting those expensive DVD customers into more lucrative streaming-only customers.

MrSeb writes with an excerpt from Extreme Tech about a presentation at Black Hat: "Bad news: With an Arduino microcontroller and a little bit of programming, it's possible for a hacker to gain instant, untraceable access to millions of key card-protected hotel rooms. This hack was demonstrated by Cody Brocious, a Mozilla software developer, at the Black Hat security conference in Las Vegas. At risk are four million hotel rooms secured by Onity programmable key card locks. According to Brocious, who didn't disclose the hack to Onity before going public, there is no easy fix: There isn't a firmware upgrade — if hotels want to secure their guests, every single lock will have to be changed. I wish I could say that Brocious spent months on this hack, painstakingly reverse-engineering the Onity lock protocol, but the truth — as always, it seems — is far more depressing. 'With how stupidly simple this is, it wouldn't surprise me if a thousand other people have found this same vulnerability and sold it to other governments,' says Brocious. 'An intern at the NSA could find this in five minutes.'"

Hugh Pickens writes "Reuters reports that Apple shed more than five percent of its stock price value in after-hours trading after the company reported its second quarterly miss on results in less than a year, highlighting how the Apple brand is becoming less resistant to the economic and product cycles that have plagued rivals. 'Clearly it was a disappointment,' says Channing Smith, Co-Manager of Capital Advisors Growth Fund. 'We expected a lot of consumers will probably delay their upgrade and their purchases until the iPhone 5 comes out. We saw a similar trend occur last year with the iPhone 4S.' Executives acknowledged buyers were refraining from purchases because of 'rumors and speculation' around the iPhone 5, which sources have said will ship in September with a thinner and larger screen. 'The iPhone 5 is already the most hyped device and for it to exceed expectations is going to be really hard,' says BGC Partners analyst Colin Gillis. This is one of many reasons Apple is so notoriously secretive. With the levels of hype that Apple product launches garner, it would undoubtedly crush its own sales if it announced products even months in advance. Instead, Apple slowly and silently draws down inventory in distribution channels, and then the upgraded product is available immediately (or nearly immediately) after it's announced. According to Apple CEO Tim Cook, 'there is an incredible anticipation out there or for future products and as you would expect given what we've been able to deliver in the past.'"

dcsmith writes "Washington D.C. Metropolitan Police Department Chief Cathy Lanier says, 'A bystander has the same right to take photographs or make recordings as a member of the media,' and backs it up with a General Order to her Department. Quoting: The Metropolitan Police Department (MPD) recognizes that members of the general public have a First Amendment right to video record, photograph, and/or audio record MPD members while MPD members are conducting official business or while acting in an official capacity in any public space, unless such recordings interfere with police activity.'"