Redbox announced that it will begin offering video games for the Nintendo Wii, Xbox 360 and PlayStation 3 in 21,000 of its 31,800 self-service kiosk locations around the country starting June 17.

According to the company’s press release, Redbox has been testing video game rentals alongside movie offerings at 5,000 locations since August 2009. “Redbox has rented more than one million video games in less than two years at these locations, underscoring the popularity of video game play in America,” said Mitch Lowe, president of Redbox.

Redbox parent company Coinstar Inc. believes the select market testing suggests that the company can potentially “increase revenue by replacing 10% to 15% of the DVD slots in its kiosks with games.” (Each machine holds between 70 and 200 titles.)

Games – ranging from Call of Duty: Black Ops and Mortal Kombat to Super Mario Galaxy and Star Wars III – will cost $2 per night (compared to the $1 rental fee for DVDs and $1.50 for Blu-ray discs). For a complete list of initial game offerings, visit the Redbox Games page.

Related Home Media Magazine article (with interesting financial stats): “Redbox to Increase Video Game Presence” (4/28/11)

At this week’s Wired Business Conference in New York, Netflix co-founder and CEO Reed Hastings discussed his company’s growing success and its reliance on the evolution of bandwidth-related technologies. Netflix recently announced its first quarter earnings (up 88 percent with revenues at $719 million). The subscription-based rental service added 3.6 million new customers during the quarter, double the growth from one year ago.

Hastings indicated that streaming was always the goal of Netflix, but the technology was not ready when they launched the subscription service in 1999. Based on number of hours viewed, the Netflix streaming option surpassed its DVDs for the first time in Q4 2010. This is due to a larger selection of streaming content and improved bandwidth to subscribers.

Hastings has been waiting for this moment. “We took out our spreadsheets and we figured we’d get 14 megabits/second to the home by 2012, which turns out is about what we will get,” he explained. When asked about the next ten years he added, “If you drag it out to 2021, we will all have a gigabit to the home.”

Hastings was also careful to point out that he does not see Netflix streaming as a competitor to cable, which is why his service focuses on older movies as opposed to new releases, sports, or news (although Netflix is experimenting with original programming). “It would start an Armageddon battle, and we would not emerge alive from that battle. So we are concentrating on our niche,” he said.

Related Wall Street Journal article: “Netflix CEO Reed Hastings Swears He’s Not Going to Kill HBO: ‘We Compete Like Football and Baseball'” (5/6/11)

Related Engadget article: “DirecTV asks its customers what they like so much about Netflix, could launch competitor” (4/26/11)

Related ReadWriteWeb article: “Netflix Letter to Shareholders Shows It Couldn’t Care Less About DVDs” (4/25/11)

Related TechCrunch article: “Netflix Earnings Up 88 Percent, Adds 3.6 Million Subscribers” (4/25/11)

Related Home Media Magazine article: “Marvel Superheroes Stream on Netflix” (4/29/11)

Apple is planning a cloud-based music locker service that will enable its customers to stream music to multiple devices. The Wall Street Journal reports that what makes the Apple proposal different from Amazon’s recent Cloud Drive rollout is that Apple is seeking paid licenses from the labels for its service (Amazon started its service without gaining such approval).

Although the Apple version has yet to go public, insiders report that it will work differently than the Amazon Cloud Drive and Player, which acts much like an external hard drive. Through deals with the labels, the Apple service will allow for a single master copy of a song to be stored on its servers, that can then be shared with multiple users (the Amazon service requires users to upload each song they want to access remotely).

“The idea is that Apple will let users store songs they’ve purchased from its iTunes store, as well as others songs stored on their hard drives, and listen to them on multiple devices,” reports WSJ.

Recent rumors suggest Apple will charge users an annual subscription fee, possibly in the area of $20.

Related Wall Street Journal article: “Amazon’s Cloud Music Move Isn’t Earth-Shaking” (3/29/11)

Related Wall Street Journal article: “Amazon’s Cloud Service Is A) Legal B) Illegal? C) Probably Here To Stay” (3/29/11)

Related Los Angeles Times article: “Price war! Amazon launches 69-cent MP3 store for top-selling tunes” (4/28/11)

Related TechCrunch article: “Behind the Scenes: Record Label Demands from Amazon” (4/29/11)

Related CNET article: “Expect Apple to charge for music cloud” (4/26/11)

Facebook Inc. is expected to have its initial public offering as early as next spring, while projected earnings and evolving online advertising models continue to raise speculation about the company’s overall value. The social network’s business is growing faster than its forecast of several months ago when Goldman Sachs Group and Digital Sky Technologies invested $1.5 billion. The Wall Street Journal reports the Internet company may earn as much as $2 billion in 2011.

Facebook was launched in February 2004 and claims more than 600 million active users today. According to WSJ: “Goldman’s and Digital Sky Technologies’ investment reported early this year was at a share price that implied a $50 billion valuation for Facebook. The people familiar with the company’s recent finances said they thought its profit was growing at a fast-enough clip to justify a valuation of $100 billion or more when it goes public.”

Additionally, eMarketer estimates that Facebook will earn ad revenue this year of $4.05 billion, more than doubling last year’s $1.86 billion. According to comScore, 31 percent of all online display ads in the U.S. for the first quarter of 2011 appeared on Facebook.

Wedbush Securities analyst Lou Kerner estimates the company’s value in the public market at $112.9 billion. “Part of our bullishness for Facebook is our belief that it is still in the embryonic stages of advertising,” he said.

Related San Francisco Chronicle article: “Why Google Should Buy LinkedIn, Now Before It’s Too Late” (5/3/11)

Related Mashable article: “One Year Later: What Marketers Have Learned About Facebook’s Open Graph” (4/26/11)

Related CNBC article: “Facebook Launches Deals Program, Rivals Groupon” (4/26/11)

Last week Microsoft announced its Xbox 360 will include subscription movie and TV service Hulu Plus, starting April 29. The subscription cost will be $7.99 per month (with limited advertising). Additionally, Xbox LIVE users will receive a one-week free trial sponsored by Jack Link’s Beef Jerky.

Hulu Plus will also add Kinect support, enabling users to control programs with their voice or via physical gestures. According to the Hulu blog: “With Kinect for Xbox 360, you can simply say ‘Xbox, pause’ or use gestures to rewind, pause and fast forward your way through your favorite shows.”

In related news, Gamasutra reports that a record number of Xbox 360 console sales contributed to Microsoft’s 13 percent year-on-year revenue increase for the first three months of 2011. A new quarterly record for the gaming console was set, as 2.7 million Xbox 360 units were sold (up from 1.5 million for the same period last year).

For complete details, visit the Hulu Plus on Xbox LIVE page.

Watch the video demo on Engadget: “Hulu Plus on Xbox 360 launches tomorrow, all members get a free week thanks to beef jerky” (4/28/11)

Related PC World article: “Making Sense of Streaming Media Options” (4/30/11)

Related Home Media Magazine article: “Six Questions with Microsoft’s Senior Spokesman, Jose Pinero” (4/29/11) Featuring everything from Netflix to ESPN, Microsoft wants Xbox to be the media hub in the living room. Jose Pinero, senior spokesman for Microsoft’s interactive entertainment business, chatted with Home Media Magazine about where live TV fits into the Xbox 360’s future, how the addition of Kinect might be a game-changer in the console wars and whether a Blu-ray Disc drive will ever be included in the Xbox.

Wes McDermott (“the 3D Ninja”) has released version 1.0.2 of his app for creating handheld camera animations in Autodesk Maya 3D software. CameraMan for Maya is an interesting new utility app for the iPhone 4, iPod touch and iPad 2 (currently available for $1.99 on iTunes).

The app uses the Apple devices’ gyroscope hardware as a motion capture device to control X, Y and Z rotations of the camera. It enables users to adjust the focal length with a slider, record animation, and provides Maya timeline playback controls. The 3D Ninja Blog features a helpful 29-minute video tutorial.

Requirements (according to the CameraMan for Maya iTunes page): Compatible with iPhone 4, iPod touch (4th generation), iPad 2 Wi-Fi, and iPad 2 Wi-Fi + 3G. Requires iOS 4.1 or later.

The new G-Slate tablet from LG (sold by T-Mobile) was launched last week as the first tablet in the U.S. using Google’s Honeycomb software (Android 3.0 for tablets) to offer 4G speed and 3D video. With an 8.9-inch screen, the G-Slate offers less viewing area than Apple’s iPad 2 and the Motorola Xoom, but more than the Samsung Galaxy Tab and RIM’s BlackBerry PlayBook.

The greatest challenges for the new device may be how to compete with the highly successful iPad — and how to differentiate itself from the other Android-based devices currently on the market. In his WSJ “All Things Digital” column, Walt Mossberg suggests that the G-Slate aims to be different in three major ways: by offering 4G cellular data speeds, enabling 3D video creation and viewing, and featuring an “in-between” screen size as compared to current offerings.

In his review, Mossberg found the performance to be on par with the Honeycomb Xoom, but overall not as good a choice as the iPad 2 (especially in terms of price, size and weight). And regarding the 3D functionality, he writes, “The 3D feature, which requires the use of 1950s-style colored glasses, seems like a parlor trick to me.”

Mossberg reports that the biggest selling point of the G-Slate is the 4G speed, but adds that the current problem with all Honeycomb devices involves a lack of “tablet-optimized third-party apps.” It’s tough to compete with Apple in this regard, considering it already claims 65,000 tablet apps.

Mossberg’s bottom line: “The G-Slate isn’t as good a tablet as the iPad 2. I’d only recommend it for people who want the higher cellular speeds, or who prefer Android.”

Former Apple engineers Kimon Tsinteris and Mike Matas have created a digital creation tool that might have a dramatic impact on the “frictionless” self-publishing of electronic books. Book apps created with the platform will leverage the sensors, touchscreen gestures, microphone and graphics chip of the iPad and iPhone to create a more interactive experience for electronic reading. The duo’s Push Pop Press is getting an interesting start, with some help from former vice president Al Gore.

According to the Wired Gadget Lab: “Push Pop Press will be a publishing platform for authors, publishers and artists to turn their books into interactive iPad or iPhone apps — no programming skills required.” The app enables users to augment their stories with photos, videos and a compelling variety of interactive features, which could go beyond books to the publishing of magazines and newspapers.

Push Pop Press could become an affordable alternative to the tools featured in Adobe’s Creative Suite, commonly used for creating today’s tablet periodicals. For example, Tsinteris and Matas claim that interactive diagrams, geotagged photos and video content can easily be embedded in a book produced with the tool.

For those who may be interested in seeing the possibilities of Push Pop Press, the app version of Al Gore’s book, Our Choice: A Plan to Solve the Climate Crisis, is available for $4.99 via the iTunes store.

You can also check out Gore’s guided tour of the app on the Wired post or the Push Pop Press site. It’s worth the two minutes to see this in action.

At the 2011 NAB show in Las Vegas, filmmaker James Cameron and 3D production expert and cinematographer Vince Pace discussed their newly-formed company, the Cameron-Pace Group (CPG), aimed at promoting 3D production and streamlining its processes with the FUSION 3D camera and workflow packages.

According to the company’s website: “CPG’s expansion will include proven solutions for 3D productions worldwide including industry-wide 3D advocacy, driving innovations in technology, and delivering products, services and creative tools for filmmakers and broadcasters in ways never addressed or witnessed before.”

Headquartered in Burbank, the company already has 53 employees. “Our goal,” Cameron said at NAB, “is to banish all the perceived and actual barriers to entry that are currently holding back producers, studios and networks from embracing the 3D future.”

Broadcast Engineering reports that upcoming CPG projects include the ESPN X Games 17, the NBA Finals, and feature films such as Pirates of the Caribbean: On Stranger Tides, Transformers: Dark Side of the Moon, The Three Musketeers and Martin Scorsese’s The Invention of Hugo Cabret.

For more information, the Cameron-Pace Group company overview is available in PDF format.

Amazon announced that its new ad-supported Kindle will launch April 27, nearly a week earlier than originally expected. The e-reader — dubbed Kindle with Special Offers — will ship for $114 through Amazon, Target and Best Buy (that’s $25 less than the Wi-Fi only version).

According to Amazon, the cost reduction is a result of the device being subsidized by advertising. Early sponsors include General Motors, Proctor & Gamble and Visa. “Special offers” will be made available directly to the new Kindle related to Amazon.com gift cards, audible books and products from the various Amazon stores.

The latest Kindle is 21 percent smaller and 17 percent lighter than its predecessor, but features the same 6-inch reading area. The company claims the device features the “most advanced E Ink Pearl display technology” and touts 50 percent improved screen contrast with crisper, darker fonts.

It’s worth noting that the ad-supported model is getting more press than the Kindle’s new specs. We’ve seen similar approaches with other devices and services in the past, with mixed results. It will be interesting to see how consumers respond.

Most of our readers have probably been following the recent news regarding consumer fears that iPhones and other smartphones are tracking users’ location information. It was recently discovered that phones operating on iOS and Google’s Android platform transmit the devices’ locations back to the respective companies.

Apple has defended the need for location data to provide optimum service and provided clarification by explaining an individual cannot be located using the data. The Wall Street Journal reports that Apple defends its process, but nonetheless announced a planned software update that will reduce the size of the database cached on the phone and hopefully alleviate user concern.

According to WSJ: “Apple said it maintains a database of Wi-Fi hot spots and cell towers around users’ locations, a process that helps the phone calculate its location. The information is used to quickly find global-positioning-system satellites, a process that otherwise could take several minutes, the company said.”

Related CNNMoney article: “LocationGate was a ‘bug,’ says Apple” (4/27/11)

Related Wall Street Journal article: “Q&A: Jobs and Apple Execs on Tracking Down the Facts About iPhones and Location” (4/27/11)

Related Macworld article: “How the iPhone knows where you are” (4/28/11)

At a Tokyo press event, Sony announced a pair of Android 3.0 tablets — the S1, featuring a 9.4-inch touchscreen display, and the smaller S2, with dual-screen 5.5-inch displays that can can fold like a book. The tablets will connect to Sony’s cloud-computing library of movies and music in addition to Sony PlayStation Android-based games and digital books from Sony’s Reader store.

The S1 media tablet features front- and rear-facing cameras and what Engadget describes as “a curved wrap design that resembles a folded magazine.” The S1 also features a Tegra 2 SoC, touch panel UI, and integrated infrared for use as a remote control for Sony devices. The second tablet, the dual-screen S2 clamshell, features two 1024 x 480 pixel displays, Tegra 2 SoC, and camera. Engadget reports: “Sony takes advantage of the two screens with a custom book-style UI layout for its e-reader app, split keyboard and messaging displays for email, and split display and game controllers for PS One gaming.”

In a video report, IDG reports the S1 and S2 are PlayStation certified, WiFi and 3G/4G compatible, and will support DLNA (enabling users to buy a movie from the online Qriocity store, for example, and stream the content to a TV from the tablet via WiFi).

Sony said the devices will go on sale worldwide by September. The company has yet to announce prices, but according to Engadget: “…sources told us back in February that Sony was considering a $599 MSRP on the S1 while the S2 would likely come in at $699. Still no word on the Windows 7 slider but with the other two leaks official, it’s now only a matter of time.”

Related Huffington Post article: “Sony Shows Off S1, S2 Honeycomb Tablets With PlayStation Integration” (4/26/11)

Artefact asks “What’s next in digital camera design?” with an interesting new prototype called the WVIL (Wireless Viewfinder Interchangeable Lens). According to the Artefact site: “The patent-pending WVIL system takes the connectivity and application platform capabilities of today’s smart phones and wirelessly connects them with interchangeable full SLR-quality optics. It is the inevitable solution for photographers who expect the power of modern mobile devices but who also demand uncompromised quality.”

In an article that features two compelling videos, Fast Company’s Co. Design suggests the WVIL provides a possible glimpse at the future of photography if digital cameras and cellphone cameras continue to merge, “leaving just a lens with a chip and a screen on the back of it.”

Artefact explains that many possibilities stem from this idea. According to Markus Wierzoch, WVIL’s lead industrial designer: “With the first digital cameras, the industry was quick to replace the medium, film, with a sensor, but the rest stayed the same. But modern connectivity opens up a lot of different options, like being able to detach the lens from the viewfinder. What if you could go to a party, mount three or four lenses all over the room, and control them all wirelessly with one ‘camera’?”

The Artefact team has cleverly redesigned the digital camera as “a camera operating system,” one that can be controlled from a touchscreen-based viewfinder and could quite possibly appeal to prosumer photographers who have outgrown their traditional DSLRs and no longer want a bag full of expensive gear. Artefact believes the WVIL could become a reality within three years.

As part of the next step toward streamlining the film and television production workflow, Sample Digital and Technicolor have introduced apps that enable executives to view “dailies” on their iPads. According to the Los Angeles Times, the apps provide production execs around-the-clock mobile access to daily footage, scripts, visual-effects shots and trailers.

“Until a few years ago, dailies from shoots were typically stored on DVDs and then shipped to various locations, a process that became more costly as production increasingly moved out of Hollywood and projects took on multiple financing partners. More recently, dailies are delivered online and accessible on PCs and laptops, which aren’t as easy to lug around as a tablet.”

The dax|Mobile app from Sample Digital costs $249.99 on the iTunes store, while the subscription-based digital workflow system runs $1,250 to $2,000 per TV episode and up to $15,000 per movie. Encryption for the streaming video to prevent illegal copying is available for an additional fee.

Additionally, Technicolor has teamed with PureBlend Software Design Group to offer the Technicolor MovieSlate on-location production app that works for both Android and iOS systems to provide access to dailies and other content.

HBO announced that its streaming service HBO GO will soon offer more than 1,400 titles for streaming via iPads, laptops and smartphones. According to the press release: “HBO subscribers can instantly watch every episode of classics like The Sopranos, Sex and the City and Deadwood and current award-winning series like Boardwalk Empire, Entourage and True Blood as well as blockbuster theatricals – where they want, when they want.”

HBO made its announcement with a YouTube video posted last week. The service will be available for iOS and Android devices.

The HBO promotional video suggests May 2nd as a launch date. The press release specifies that HBO GO will be available to HBO subscribers through Comcast XFINITY TV, Verizon FiOS, Cox Advanced TV and AT&T U-Verse customers. Surprisingly, Time Warner Cable is not currently included in the list of providers (HBO is owned by Time Warner).

HBO was in the news earlier in the year after senior vice president of corporate affairs, Jeff Cusson told The Hollywood Reporter that HBO “has no intention of making its content available for streaming on Netflix,” adding that the company “believes in content exclusivity, especially for high-value content.” It looks like the new capabilities of HBO GO support that strategy.

Related CNET story: “HBO Go teased for iPad, iPhone, Android” (4/19/11)

Related Gizmodo post: “HBO Go Will Bring Every Episode of All Their Shows to iOS and Android” (4/19/11)