Ars Technica’s Nate Anderson has written an excellent history of how the content industry has fought against pretty much every technological advancement over the past 100 years for fear it would end creative expression forever. As we know this isn’t true. Rather, technology helps increase the market for these creative works (and other industries) by decreasing costs and increasing efficiency. It is much cheaper and easier to create and distribute music than it was 10 years ago, let alone 100 years ago.

Anderson profiles the content industry’s fight against the gramophone and player piano. John Philip Sousa campaigned to Congress to ban these evil machines for replacing live performances, not recognizing that home recordings might increase the demand for those live performances. This gave birth to the compulsory license system, where the government set rates sheet music must pay to songwriters, we have still to this day, though it has been vastly expanded.

Photocopiers spelled doom for the print industry, with UCLA law professor Melville Nimmer saying “the day may not be far off when no one need purchase books.” While the U.S. and its courts upheld a fair use right to copying, Canada and other countries must pay royalties to collection agencies for every copy. Canada pays the same tax on rewritable CDs and iPods because they might be used for pirated content.

Movie companies famously referred to the VCR as the “Boston strangler” as it killed the movie industry. Universal sued Sony over Betamax all the way to the Supreme Court to ban the use of home recording. Once found legal, movie companies decided to sell copies of their own movies to home viewers, a revolutionary practice that led to the multi-billion dollar home video and rental market.

Pretty much every expansion into digital media has been fought tooth-and-nail by the content industry, from Napster to DVR to the iPod.

Anderson also left out some other highlights. Cable TV, when originally introduced, featured almost exclusively pirated content from network television. This allowed cable television to expand far enough that it could afford its own programming. Even the movie industry began by fleeing New York to Hollywood to escape enforcement of Thomas Edison’s patents and the high prices he charged to anyone wanting to make movies.

Presently, the DMCA makes sure technological innovations are few and far between to help the content industry.  While CDs were released without DRM and thus able to be ripped onto computers and people’s iPods, DVDs are copy-protected and thus illegal to copy in anyway. Even though it is easy to do so, no software or hardware can be released that can take advantage of people’s massive DVD collections.  Even though the content industry claims it would never sue to ban innovation, the industry has done so several times, and won these cases, holding back technology and innovation that consumers want and could do more to help expand the content market.

Not content to learn from the 10 plus years of mistakes by the recording industry, the movie industry is stampeding its way to obsolescence.

First, Fox and Warner Bros. have joined Universal in its battle with Redbox, the successful rental kiosks found outside supermarkets and fast food joints. Redbox rents movies for $1 a day, legally purchasing the movies from wholesalers. Redbox will even sell used DVDs for about $7.

Fox, Warner Bros. and Universal have sued claiming Redbox is infringing on their copyrights and are ordering wholesalers to refuse to sell their movies to Redbox before several weeks. The studios are demanding revenue sharing from the kiosks.

Redbox is countersuing for antitrust and abuse of their copyrights.

Redbox, while relying on the movie studios, is in a stronger position. Sony and Lions Gate are backing the kiosks with their movies, recognizing that movie fans love the price and convenience. DVD sales are down 13 percent while rentals are up 8 percent.

Next, the movie studios recently won two important court cases, both likely to cause more damage to the industry rather than help.  The first was the studio’s win over Real’s DVD copying software.  This copier circumvented the DVD’s DRM, which is illegal under the DMCA, but then put new DRM in its place so users couldn’t share their movies.

Now, copying for personal use or backup is considered legal and a fair use of a copyrighted work. But because of the DMCA’s anti-circumvention laws, you can’t backup the DVD you legally purchased.

What’s silly, is Real’s copier cost $20 and used DRM making it a somewhat worthless copier, especially when there are dozens of free DVD copiers without any DRM. So by suing, the movie studios 1) promoted that people could copy movies and 2) sent them to free, DRM-less alternatives.

For their other lawsuit, movie studios won their appeal against Kaleidescape, which is basically an iPod for movies (or a DVD jukebox, if you will), but costs $10,000.  Movie studios of course feared this system would be a haven for piracy, but again, it’s $10,000. It’s for high-end movie fans with lots of DVDs who don’t want to keep switching discs. They backup their discs on Kaleidescape and then watch them on their TV. But because of the DMCA’s anti-circumvention laws, users can’t do what they are otherwise legally allowed to do. And the movie industry gets to stamp out innovation and technology that is trying to help make DVDs and movies more valuable.

How are legal remedies helping here? The movie studios are trying to crush three different companies who are trying to help make DVDs more valuable at a time when consumers are showing DVDs are less worth purchasing.

Forbes provided some hyped linkbaiting today with an article on why Apple’s iPhone could kill, not compete with, but kill the Nintendo DS. I’m taking the bait to quash Apple’s gaming might once and for now.

Tech pundits love finding that new “killer” app to quash the incumbent which, in recent memory, always seems to be something Apple related: iPod “killer”, iPhone “killer”, and even Apple TV “killer” (do you need to kill something that isn’t even selling?).

Nintendo’s DS is the powerhouse of handheld gaming, the benefit of almost 20 years and more than half-a-dozen hardware generations. Sony launched its first handheld competitor, the PSP, barely clutching to 30 percent of the market, a credit to the system’s power and Sony’s well-established Playstation brand. Apple comes to the gaming world with no experience (except the tragic Pippin), no game studio, no retail presence or expandable memory, and most importantly, no interest in killing Nintendo.

Forbes writes its article ahead of Apple’s release of 3rd-party software include, presumably, an assortment of games. When Apple announced its developer’s kit for 3rd-parties, major game publishers Sega and EA were there to show off the first games for the platform. These high-profile releases led blogs to speculate on the iPhone’s potential as an actual handheld gaming platform.

This assumes Apple wants to be a handheld platform. The recently announced $25 for games sales Apple has other priorities. Gaming platforms have relied on low priced hardware subsidized by royalties from game sales. Sony’s PSP struggled initially at its $200 price point - how can Apple’s $400 iPhone think to fare better.

The other point against Apple’s gaming interests are its lack of actual gaming. EA’s cute flOw clone, if holding to Apple’s aforementioned price, costs $8 on the PS3. A rare $20 game on the PSP, Patapon, featured dozens of hours of gameplay. The DS offers assorted casual games like those likely to dominate on the iPhone, but also offers a varied library of epic stories and varied genres. Casual gaming is big business, yes, but hard core gaming is still bigger. The Wii sells amazingly, but software beyond Nintendo (first-party) fails to sell like games on the Xbox 360 and PS3.

Games will never sell the iPhone. The iPhone sells itself because of its variety of features and solid casual gaming will appeal to that user base in ways even the Nintendo DS can’t. The result will be different markets, not competitors.

Next-Gen editor Collin Campbell wrote a lecture on the evils of selling and buying used video games. He claimed resellers of video games like GameStop are costing the industry $1 billion (source?) because when GameStop sells used games, the publishers receive no additional revenue. Instead of backing up his position with facts, Campbell follows the common practice of claiming that publishers have some entitlement to more money, rather than letting the market decide and recognizing that there is more money to made thanks to the second hand market.

Video game companies have been critical of used game sales for years, with Sony even attempting to build-in copy protection on PS3 games to prevent them from being resold (Sony did not include this feature). Even book publishers criticized Amazon.com, claiming selling used books would hurt the sale of new books. But no study has shown used game sales hurt the video game industry, though one study has shown sales of used books can actually help the industry. Campbell’s unsupported $1 billion cost to the industry is only attributed to how much GameStop makes selling used games, meaning Campbell is assuming every used game sale would transfer to a new game purchase. Of course, Campbell’s claim that GameStop forces used games on its customers is contradicted by reports that 17.6 percent of GameStop’s holiday sales came from used games - 43.2 percent came from new games.

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Video game fans know it sucks to invest hundreds of dollars in consoles, accessories, and games only to do the whole thing over again in five years. We do it, but we hate it. Sony’s PS2 is showing the console lifecycle might be lengthening, with awesome games still being releases for the seven year old system. The PS2 even outsells the state-of-the-art PS3 meaning people seem willing to invest a couple years in the aged platform.

But Sony’s PSP handheld is a different beast. John Koller, senior marketing manager for Sony’s PSP told IGN he believes the handheld has a 10-year lifecycle similar to the PS2 and PS3. Using firmware updated and some hardware revisions, they can milk the life out of the PSP. But this is a bad idea and an example when starting fresh is better in a few years.

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Forget about Republican versus Democrat, Pepsi versus Coke, and dogs versus cats. Geeks love our rivalries. We are ferociously loyal to one group over another and thing anyone who disagrees must be an idiot (which, in my opinion, they usually are). So here is, in my opinion, the best, geekiest, and most fun rivalries in all of geekdom. These rivalries must be going on currently (no Nintendo vs. Sega) and it must affect a significant group of geek, meaning Ewoks versus Care Bears will have to wait for another list.

7. Cheats vs. no cheats

Passwords. Hacks. Mods. Game genie. All tools of the trade for people who want to beat the game or just skip a really hard level. But is this ethical? Does reading a walkthrough count as cheating? Who are you cheating? Yourself or the game? Message boards across the internet when asked for passwords will sometimes have users who refuse to tell on the grounds that cheating in video games is wrong. It lessens the experience. Why waste your money on a game you aren’t going to play. Well, what should you do is (for the answer, please hold R while pressing UP DOWN RIGHT UP UP A B LEFT LEFT UP).

6. Piracy vs. no piracy

Yes, another ethical debate. For some, piracy is a way to sticking it to the Man, getting lots of stuff free and easy, or maybe just trying something out before spending the money. To others, it’s stealing, wrong, and immoral. If you want to watch a movie, listen to a song, or play a game, spend the money. It’s the only way to keep more of these movies, songs, and games coming. But neither answer is as simple as the downloading on IRC (it’s not simple, if you weren’t sure). And while lawyers try to figure out the legality of piracy and file-sharing, the practice still causes ire among geeks who are easy to ire.

5. Console vs. PC

In the on-going battle for the hearts of video gamers worldwide, the television and personal computer have been fighting the longest battle. Which works better: Controlling your character with a mouse and keyboard or a home console gamepad? Which has better graphics? Which is simply more fun? In truth, the answer to the first two questions is PC. The mouse and keyboard more often than not provide more precise and customizable control (though it’s far more complex to learn) and PC graphics will long out pace video game consoles. But consoles have many advantages from always knowing your game will play on your system (no processing power requirements), simplicity in set-up and often playability, and cost. And thus far, the market is choosing home consoles over PC by billions more dollars. 2006 showed gamers spent $6.5 billion on consoles and handhelds versus $970 million on PC games. But the battle is far from over, especially as more games are released on both consoles and PCs. Then we might see who really wins.

4. Open source vs. commercial

It’s the David and Goliath battle. Should I use Microsoft Word or Open Office…or maybe even Google Docs? What about hacking my iPhone to use user made software or should I wait for the official releases? And then there’s even those piracy questions, like should I use these open source Bittorrent programs or video game emulators or use iTunes and video game consoles. This all comes down to freedom of software choice. But don’t expect others to like it. It all seems innocent until you can’t share your files. That’s when bitterness becomes anger. Yeah, you know.

3. PC vs. Mac

Ah, this one separates the coders from the designers. Macs pride themselves on simplicity and a long understanding of being better with visual and video design software. PCs, while more complex (a lot more), offer more programs and a mountain of exclusive video games. Hardcore PC gamers will tell you there is no option other than a PC and they’re right. But Apple looks prettier. And does more faster. And you can escape from Microsoft’s Window’s loving clutches. Leaving you more time for Photoshopping. Doesn’t that make you feel better?

2. Nintendo vs. Sony vs. Microsoft

You know a geek fight’s big when it gets mainstream media attention. The video game console wars between the Nintendo Wii, Sony Playstation 3, and Microsoft Xbox 360 haven’t been this fierce since a little company called Atari ran the industry. And that might have not been this bad. The video game industry means a lot more to more people these days. The multibillion dollar industry can be quite the cash cow when mixing in game licensing fees, in-game advertising, and online downloads all of which didn’t exist in the 1980s. And that’s just what the companies fight over. The fans often barely have enough to buy one video game console. So when they buy that console, they want to validate that choice and will fight anyone who challenges them. Preferable in a battle of Street Fight II. That ends up on every system ever made, doesn’t it?

1. Marvel vs. DC

Yes, this little rival of comic book universes is one of the most rabid, cruel, and longest running rivalries in geek history. You either love Marvel or DC. You might like characters in each universe. A Marvel fan might even pick up a Superman comic on occasion. But each comic fan has his or her loyalties with only one. DC Comics is original universe…but Marvel perfected the comic universe. DC is too corporate…Marvel’s too corporate. Batman is the best character…Spider-Man is the best character. The back and forth is endless and likely will never end. The debates over the best comic book company and comic book universe only makes reading comics more fun.

Every Monday, I force my opinion on you, my fearless readers, ranking the seven of something geeky.

Everyone needs one portable gadget to carry all their music and movies. And I must go against popular opinion and say I love my PSP more than my iPod.

7. Multimedia

The PSP provides MP3, video, and image viewing with built-in speakers and a radiant 480p screen, far bigger than any iPod screen. I can then plug in my PSP to watch videos, either UMDs or MPEG-4s (just like your iPod), on my television. The larger screen even works better for reading comic books and websites. And if you’re ever bored, you can keep many flash games you find online to play on your PSP.

6. Wireless and web browsing: no extra charge

It only took six years and six generations of iPods before Wi-Fi and web browsing finally came built into the MP3 player. The PSP has had an impressive web browser for years with wireless networking to play games. The PSP had an RSS reader built-in.

5. Expandable memory

Want an more TV episodes for that long plane ride? Just have too much music for one iPod Nano. Well for the PSP, you can buy one, two, four, or eight gig memory cards giving you unlimited space for all your media. You can buy three four gig memory cards (about $40 each) and a PSP ($169) and spend less than the $299 iPod touch with eight gigs.

4. Easily replaceable batteries

So did that battery in your iPod crap out? Now you have to replace your whole iPod. Or worse, were you watching a video in the car ride to grandma’s when your battery dies? If you had a PSP, you could just switch out a new battery. Keep two around. Or three. And never worry about being without your precious music, movies and games. And you never have to wait for those annoying appointments to have college student do what you can do yourself.

3. Homebrew and accessories

While both Apple and Sony aren’t happy about random people making random stuff for their hardware, PSP has a much larger and successful homebrew community, creating eReaders, ISO loaders, original games, and GPS services with maps. One downside are the current best accessories, like the video camera and official GPS have yet to be imported to the U.S. Europe also will be getting live TV, instant messaging, and a video download service, many of which are soon to be coming to the U.S. And until that happens, I can always use Remote Play with my PS3. I might be across the country, but give me a wireless connection and I can be enjoying all the games and movies on the attached 500 gig hard drive.

2. Games

Pretty obvious, the PSP plays games. This handheld is a power house almost rivaling the home console PS2. While the console has had more misses than hits, there’s far more quality games for the system then the iPod which has, well, none. From an original Grand Theft Auto game to classic remakes of Final Fantasy and Mega Man, the PSP offers a nice assortment of value-adding games. And if those games aren’t enough, try out flash games from the web (which you can save onto your memory card) or play some free homebrew games. All the features of an iPod and a game machine. All for a …

1. Lower price

You get more features than the $300 iPod Touch for the price of an iPod Nano. And a lot more features than the iPod Nano…for the same price.

And no I did not forget the UMD movie format. UMD is a waste. But the PSP can play all your digital movie files just as well, on a wider, bigger screen than any iPod. Just wanted to remind you of that.

Every Monday, I force my opinion on you, my fearless readers, ranking the seven of something geeky.

Within days hackers cracked the iPhone like the glass touch screen rolled over by car tires. Apple released a new firmware that freezes hacked or modded iPhones preventing users from accessing programs or services, possibly permanently.

The mainstream press has followed the thus far short give-and-take between Apple and iPhone hackers, and this sudden firmware update looks like a powerful win for Apple. But this is only because the mainstream hasn’t seen hackers battle and beat corporate America over and over again.

Video game consoles have been fighting a back-and-forth war between hackers freeing up console firmware. The console maker than updates the firmware, often for the sole purpose of blocking the hackers. But within a few weeks, a new hacked firmware gets released. Nothing is perfect.

Apple will discover the same painful challenge. In a few weeks or less, this new iPhone firmware will be cracked and people will once again be able to customize their iPhone until the next firmware gets released.

But as Between the Lines points out, Apple’s battle with hackers might cause more bad than good:

We do know none of these hacks to unlock the iPhone would be necessary if we had carrier choice. What’s the cost differential between adding a few carriers to the iPhone and wasting time developing software to outflank hackers?

Even with an extremely successful launch for the iPhone, Apple has started seeing their power getting the better of them. The mass of attention on their products, from the media to the early adopters to the general public, means little information can hide. Most people will never know or care that Sony blocks PSP hackers every chance it gets. But Apple battling hackers will get attention and at some point, the once sweet Apple might get too many sour stories affecting the taste. Apple thrives on rapid evangelical early adopters. After forcing users into one phone service, announcing a major price cut early, and now freezing people’s phone, there might not be enough of a good thing left to adopt.

Like Leonardo DiCaprio running to the doomed Titanic, Paramount has gone HD DVD exclusive. They cite HD DVD’s lower cost and market ready technology, both reasonable criticisms of the Blu-Ray format, if it weren’t for the fact that Blu-Ray players out sell HD DVD players 2 to 1 and Blu-Rays sells as many discs. Blockbuster and BJ’s Wholesale are Blu-Ray exclusive while Target only stocks Blu-Ray standalone players (Target continues to sell HD DVD discs).

The worst part of this, as many commentators have recognized, is now the format war will continue longer (Paramount is committed to HD DVD for 18 months).

Personally I only own a Blu-Ray player (in my PS3) though I have yet to buy any Blu-Ray discs and refuse to spend extra money on the 360 HD DVD attachment. Even with a Blu-Ray player I am hesitant to buy discs at the premium prices. It’s more cost effective to pay for premium movie channels and on demand.

Movie companies are forgetting they aren’t just competing with two HD formats for consumer money and attention. I can continue buying regular DVDs or rent from Netflix. On Demand offers a growing list with a developing HD niche. And, of course, there’s always piracy.

Now that’s the question in front of movie companies. This HD format war can continue because DVDs still sell enough to make everyone tons of money. But eventually HDTVs will spread and consumers will demand a format winner. If the movie companies haven’t settled down with one format or the other, consumers will find alternatives. And not all of those choices will make movie companies happy.

With the next-gen races begun, this year’s E3 looks to be a major turning point for the Big Three, Nintendo, Sony, and Microsoft. From exclusive games to price cuts to redesigns to new colors, each console (and handheld) has a lot of hype (Nintendo) and bad press (Sony and kinda Microsoft) to trounce. While everyone’s doing their predications (PSP redesign, I hope), I figure I’ll instead go over what each of the big three has on the line at this E3.

Nintendo

Everyone’s favorite underdog rules the roost (enough cliches?) this E3 with the best selling Wii and DS and massive profits perfect for game development and R&D.

Nintendo needs playable AAA games that finally show the Wii isn’t just a fad. Super Smash Brothers Brawl is out, but look for Metroid Prime 3 and maybe even Mario Galaxy. Announcing no more supply issues would, of course, make everyone happy, though who knows how realistic that is.

But the two biggies: online strategy and a hard drive. WiiWare, the upcoming Wii channel with original games, is the Wii’s answer to Xbox Live Marketplace, shows Nintendo isn’t just using digital distribution for milking their own library. And while their at it, Nintendo will reveal its Mii and online codes for 3rd party developers so we can finally start getting some multiplayer party games. And instead of keeping a library of twenty SD cards with WiiWare and inevitable Sega Saturn and NeoGeo games, let’s just have a hard drive peripheral.

Verdict: For all it’s hype, Nintendo will meet expectations with games, but the buzz with start moving to other places…

Microsoft

This slow and steady giant has a staggering fall line-up of exclusive must-have titles, Halo 3, Mass Effect, and Blue Dragon, plus its own editions of once-PS3 exclusive blockbusters like Grand Theft Auto IV and Devil May Cry 4. But Microsoft won’t let the past limit its future. They’ve still got tricks up their sleeve.

Aside from getting the glowing praise it’s AAA games deserve, Microsoft should and will already prep the future, either with a new game announcement or some new exclusive stolen from Playstation. Either way, Microsoft needs to hype its stellar holiday line up, and accent this with a small but headline generating price cut for the 360. Maybe even announce a Halo 3/360 bundle. And free Xbox Live would stick it to Sony’s anemic online presence.

Microsoft’s wild card will be the long-rumored gaming handheld. While the disappointing Zune may leave a sour taste in Microsoft’s…hands, the Xbox’s growing brand name is proven and soon to be profitable. A handheld puts Microsoft in the larger and cheaper end of the gaming market. Even the “failed” PSP, with 25 million units sold, has outsold all three next-gen consoles combined. Microsoft could again aim for third place in this handheld generation, offering more of a portable PC than a handheld Playstation.

Verdict: The games will impress. The announcements will generate buzz. And a new handheld could be the announcement of the year.

Sony

The PS3 has failed to meet the staggering expectations set by the PS2. Sony has the most to lose should their games and announcements not start showing why the PS3 is worth $600.

First things first, price cut. The free press alone could save Sony enough marketing cash to make this worth it. And with some playable Metal Gear Solid 4 and several top secret announcements, the value of the system will begin to make sense. Also, more information about HOME and a download service for the PSP and PS3 will reveal Sony’s elaborate and free online strategy. Rumbling gamepads and a PSP redesign are near certain announcements.

Unfortunately, the only hype Sony needs to generate is in games, and ones that come out this year. Microsoft and Nintendo have mega exclusives this holiday season but the PS3’s killer apps are months if not a year away. Heavenly Sword and Lair must meet and beat expectations, and hands-on at E3 need to support this. Some other AAA games, even if they’re original IPs, will make the PS3 worth buying before the new year.

Verdict: The PSP will generate huge buzz with its redesign and new download store, both out by the fall, but the PS3 will still suffer from being an inexpensive Blu-Ray player that also happens to play games.