M.I.T. Lab Hatches Ideas, and Companies, by the Dozens

HOW do you take particles in a test tube, or components in a tiny chip, and turn them into a $100 million company?

Dr. Robert Langer, 64, knows how. Since the 1980s, his Langer Lab at the Massachusetts Institute of Technology has spun out companies whose products treat cancer, diabetes, heart disease and schizophrenia, among other diseases, and even thicken hair.

The Langer Lab is on the front lines of turning discoveries made in the lab into a range of drugs and drug delivery systems. Without this kind of technology transfer, the thinking goes, scientific discoveries might well sit on the shelf, stifling innovation.

A chemical engineer by training, Dr. Langer has helped start 25 companies and has 811 patents, issued or pending, to his name. That’s not too far behind Thomas Edison, who had 1,093. More than 250 companies have licensed or sublicensed Langer Lab patents.

Polaris Venture Partners, a Boston venture capital firm, has invested $220 million in 18 Langer Lab-inspired businesses. Combined, these businesses have improved the health of many millions of people, says Terry McGuire, co-founder of Polaris.

Along the way, Dr. Langer and his lab, including about 60 postdoctoral and graduate students at a time, have found a way to navigate some slippery territory: the intersection of academic research and the commercial market.

Over the last 30 years, many universities — including M.I.T. — have set up licensing offices that oversee the transfer of scientific discoveries to companies. These offices have become a major pathway for universities seeking to put their research to practical use, not to mention add to their revenue streams.

In the sciences in particular, technology transfer has become a key way to bring drugs and other treatments to market. “The model of biomedical innovation relies on research coming out of universities, often funded by public money,” says Josephine Johnston, director of research at the Hastings Center, a bioethics research organization based in Garrison, N.Y.

Just a few of the products that have emerged from the Langer Lab are a small wafer that delivers a dose of chemotherapy used to treat brain cancer; sugar-sequencing tools that can be used to create new drugs like safer and more effective blood thinners; and a miniaturized chip (a form of nanotechnology) that can test for diseases.

The chemotherapy wafer, called the Gliadel, is licensed by Eisai Inc. The company behind the sugar-sequencing tools, Momenta Pharmaceuticals, raised $28.4 million in an initial public offering in 2004. The miniaturized chip is made by T2Biosystems,  which completed a $23 million round of financing in the summer of 2011.

“It’s inconvenient to have to send things to a lab,” so the company is trying to develop more sophisticated methods, says Dr. Ralph Weissleder, a co-founder, with Dr. Langer and others, of T2Biosystems and a professor at Harvard Medical School.

FOR Dr. Langer, starting a company is not the same as it was, say, for Mark Zuckerberg with Facebook. “Bob is not consumed with any one company,” says H. Kent Bowen, an emeritus professor of business administration at Harvard Business School who wrote a case study on the Langer Lab. “His mission is to create the idea.”

Dr. Bowen observes that there are many other academic laboratories, including highly productive ones, but that the Langer Lab’s combination of people, spun-out companies and publications sets it apart. He says Dr. Langer “walks into the great unknown and then makes these discoveries.”

Dr. Langer is well known for his mentoring abilities. He is “notorious for replying to e-mail in two minutes, whether it’s a lowly graduate school student or the president of the United States,” says Paulina Hill, who worked in his lab from 2009 to 2011 and is now a senior associate at Polaris Venture Partners. (According to Dr. Langer, he has corresponded directly with President Obama about stem cell research and federal funds for the sciences.)

Dr. Langer says he looks at his students “as an extended family,” adding that “I really want them to do well.”

And they have, whether in business or in academia, or a combination of the two. One former student, Ram Sasisekharan, helped found Momenta and now runs his own lab at M.I.T. Ganesh Venkataraman Kaundinya is Momenta’s chief scientific officer and senior vice president for research.

Hongming Chen is vice president of research at Kala Pharmaceuticals. Howard Bernstein is chief scientific officer at Seventh Sense Biosystems, a blood-testing company. Still others have taken jobs in the law or in government.

Dr. Langer says he spends about eight hours a week working on companies that come out of his lab. Of the 25 that he helped start, he serves on the boards of 12 and is an informal adviser to 4. All of his entrepreneurial activity, which includes some equity stakes, has made him a millionaire. But he says he is mainly motivated by a desire to improve people’s health.

Operating from the sixth floor of the David H. Koch Institute for Integrative Cancer Research on the M.I.T. campus in Cambridge, Mass., Dr. Langer’s lab has a research budget of more than $10 million for 2012, coming mostly from federal sources.

The research in labs like Dr. Langer’s is eyed closely by pharmaceutical companies. While drug companies employ huge research and development teams, they may not be as freewheeling and nimble, Dr. Langer says. The basis for many long-range discoveries has “come out of academia, including gene therapy, gene sequencing and tissue engineering,” he says.

He has served as a consultant to pharmaceutical companies. Their large size, he says, can end up being an impediment.

“Very often when you are going for real innovation,” he says, “you have to go against prevailing wisdom, and it’s hard to go against prevailing wisdom when there are people who have been there for a long time and you have some vice president who says, ‘No, that doesn’t make sense.’ ”

Pharmaceutical companies are eager to tap into the talent at leading research universities. In 2008, for example, Washington University in St. Louis announced a $25 million pact with Pfizer to collaborate more closely on biomedical research.

But in some situations, the close — critics might say cozy — ties between business and academia have the potential to create conflicts of interest.

There was a controversy earlier this year when it was revealed that the president of the University of Texas M.D. Anderson Cancer Center owned stock in Aveo Oncology, which had announced earlier that the university would be leading clinical trials of one of its cancer drugs.  Last month, the University of Texas announced that he would be allowed to keep his ties with three pharmaceutical companies, including Aveo Oncology; his holdings will be placed in a blind trust.

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Legal Consensus of Warrantless Cellphone Searches Is Elusive

Judges and lawmakers across the country are wrangling over whether and when law enforcement authorities can peer into suspects’ cellphones, and the cornucopia of evidence they provide.

Peter DaSilva for The New York Times

Organizations like the Electronic Frontier Foundation, where Hanni Fakhoury is a lawyer, have lobbied for legislation that would require authorities to obtain a warrant before demanding cellphone location records.

A Rhode Island judge threw out cellphone evidence that led to a man being charged with the murder of a 6-year-old boy, saying the police needed a search warrant. A court in Washington compared text messages to voice mail messages that can be overheard by anyone in a room and are therefore not protected by state privacy laws. In Louisiana, a federal appeals court is weighing whether location records stored in smartphones deserve privacy protection, or whether they are “business records” that belong to the phone companies.

“The courts are all over the place,” said Hanni Fakhoury, a criminal lawyer with the Electronic Frontier Foundation, a San Francisco-based civil liberties group. “They can’t even agree if there’s a reasonable expectation of privacy in text messages that would trigger Fourth Amendment protection.”

The issue will attract attention on Thursday when a Senate committee considers limited changes to the Electronic Communications Privacy Act, a 1986 law that regulates how the government can monitor digital communications. Courts have used it to permit warrantless surveillance of certain kinds of cellphone data. A proposed amendment would require the police to obtain a warrant to search e-mail, no matter how old it was, updating a provision that currently allows warrantless searches of e-mails more than 180 days old.

As technology races ahead of the law, courts and lawmakers are still trying to figure out how to think about the often intimate data that cellphones contain, said Peter P. Swire, a law professor at Ohio State University. Neither the 1986 statute nor the Constitution, he said, could have anticipated how much information cellphones are privy to, including detailed records of people’s travels and diagrams of their friends.

“It didn’t take into account what the modern cellphone has — your location, the content of communications that are easily readable, including Facebook posts, chats, texts and all that stuff,” Mr. Swire said.

Courts have also issued divergent rulings on when and how cellphones can be inspected. An Ohio court ruled that the police needed a warrant to search a cellphone because, unlike a piece of paper that might be stuffed inside a suspect’s pocket and can be confiscated during an arrest, a cellphone may hold “large amounts of private data.”

But California’s highest court said the police could look through a cellphone without a warrant so long as the phone was with the suspect at the time of arrest.

Judges across the country have written tomes about whether a cellphone is akin to a “container” — like a suitcase stuffed with marijuana that the police might find in the trunk of a car — or whether, as the judge in the Rhode Island murder case suggested, it is more comparable to a face-to-face conversation. That judge, Judith C. Savage, described text messages as “raw, unvarnished and immediate, revealing the most intimate of thoughts and emotions.” That is why, she said, citizens can reasonably expect them to be private.

There is little disagreement about the value of cellphone data to the police. In response to a Congressional inquiry, cellphone carriers said they responded in 2011 to 1.3 million demands from law enforcement agencies for text messages and other information about subscribers.

Among the most precious information in criminal inquiries is the location of suspects, and when it comes to location records captured by smartphones, court rulings have also been inconsistent. Privacy advocates say a trail of where people go is inherently private, while law enforcement authorities say that consumers have no privacy claim over signals transmitted from an individual mobile device to a phone company’s communications tower, which they refer to as third-party data.

Delaware, Maryland and Oklahoma have proposed legislation that would require the police to obtain a warrant before demanding location records from cellphone carriers. California passed such a law in August after intense lobbying by privacy advocates, including Mr. Fakhoury’s group. But Gov. Jerry Brown, a Democrat, vetoed the bill, questioning whether it struck “the right balance between the operational needs of law enforcement and individual expectations of privacy.”

Similar legislation has been proposed in Congress.

Lacking a clear federal statute, the courts have been unable to reach a consensus. In Texas, a federal appeals court said this year that law enforcement officials did not need a warrant to track suspects through cellphones. In Louisiana, another federal appeals court is considering a similar case. Prosecutors are arguing that location information is part of cellphone carriers’ business records and thus not constitutionally protected.

The Supreme Court has not directly tackled the issue, except to declare, in a landmark ruling this year, that the police must obtain a search warrant to install a GPS tracking device on someone’s private property.

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Russia blames technical error for brief YouTube blacklisting

MOSCOW (Reuters) – Russian officials offered assurances they were not seeking to block access to YouTube on Wednesday, saying a technical error caused the popular video-sharing website to appear briefly on a register of sites containing banned content.

For about an hour, YouTube was listed on the newly-created register, which the government says is needed to fight child pornography but critics of President Vladimir Putin fear may be used to censor the Internet and stifle dissent.

YouTube was subsequently removed from the register, maintained by Russia‘s communications watchdog agency, Roskomnadzor, which said there was no plan to block access to the site.

“An unfortunate technical mistake occurred,” Roskomnadzor spokesman Vladimir Pikov said. “We work closely with them (YouTube). Basically, we see no reason now to apply towards its owners any preventive measures.”

Russia’s consumer protection rights watchdog, Rospotrebnadzor, said YouTube took down several videos earlier this week as requested by officials under the new law tightening Internet controls that took effect on November 1.

The blacklist includes websites containing pornographic images of children, instructions on how to make, use and where to get drugs, as well as others describing suicide methods.

Under the legislation, websites have three days to remove content considered harmful or illegal by Russian authorities before they can be blocked.

YouTube is owned by U.S.-based Google Inc..

A spokeswoman for Google in Russia, Alla Zabrovskaya, said all requests from the authorities are handled by the company’s global headquarters in the United States.

Anti-Putin activists, who have used the Internet to organize demonstrations, say the law is part of a crackdown on dissent orchestrated by the Kremlin since Putin, a former KGB spy, returned to presidency in May.

After a stint as prime minister, Putin was elected to a third presidential term in March after a series of opposition protests that were the biggest of his 13-year rule.

(Additional reporting by Maria Tsvetkova and Anastasia Teterevleva; Editing by Steve Gutterman and Sophie Hares)

Internet News Headlines – Yahoo! News

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Morsi Urged to Retract Edict to Bypass Judges in Egypt

Tara Todras-Whitehill for The New York Times

A demonstrator takes a breather during protests in downtown Cairo on Saturday. More Photos »

CAIRO — The association of judges here called Saturday for courts across Egypt to suspend all but their most vital activities to protest an edict by President Mohamed Morsi granting himself unchecked power by setting his decrees above judicial review until the ratification of a new constitution.

The judges’ strike, which drew the support of the leader of the national lawyers’ association, would be the steepest escalation yet in a political struggle between the country’s new Islamist leaders and the institutions of the authoritarian government that was overthrown last year. As it spills into the courts and the streets, the dispute also increasingly threatens to undermine the credibility of Egypt’s political transition as well.

A council that oversees the judiciary denounced Mr. Morsi’s decree, which was issued Thursday, as “an unprecedented attack on judicial independence,” and urged the president to retract parts of the decree eliminating judicial oversight.

State news media reported that judges and prosecutors had already walked out in Alexandria, and there were other news reports of walkouts in Qulubiya and Beheira, but those could not be confirmed.

Outside Egypt’s high court in Cairo, the police fired tear gas at protesters who were denouncing Mr. Morsi and trying to force their way into the building, the second day in a row that protesters took to the streets over the presidential decree, which critics have assailed as a return to autocracy.

Abdel Meguid Mahmoud, a prosecutor appointed by Mr. Morsi’s predecessor, Hosni Mubarak, declared to a crowd of cheering judges that the presidential decree was “null and void.” He denounced what he described as “the systematic campaign against the country’s institutions in general and the judiciary in particular.”

A coalition of disparate opposition leaders including the liberal former United Nations diplomat Mohamed ElBaradei, the leftist-nationalist Hamdeen Sabahy, and the former Mubarak-government foreign minister Amr Moussa formed a self-proclaimed National Salvation Front to oppose the decree. In addition to demanding the dissolution of the constitutional assembly, the group declared that it would not speak with Mr. Morsi until he withdrew his decree.

“We will not enter into a dialogue about anything while this constitutional declaration remains intact and in force,” Mr. Moussa said. “We demand that it be withdrawn and then we can talk.”

As the judges group called for a suspension of the courts, a growing number of lawyers filed claims demanding that the courts seek to overturn Mr. Morsi’s decree, joining the battle between the executive and judicial powers.

Advisers to Mr. Morsi, a former leader of the Muslim Brotherhood and Egypt’s first democratically elected president, defended his action, saying he was trying to prevent the courts from disbanding the Islamist-dominated constitutional assembly, which is writing a new constitution. The nation’s top courts had already dissolved the Islamist-led parliament and an earlier Islamist-led constituent assembly.

The advisers said a court decision on the new constitutional assembly had been expected as soon as next Sunday.

The judges’ group, as well as the newly unified secular opposition, have demanded that Mr. Morsi withdraw his decree, and that he disband and replace the current constitutional assembly. Many of the assembly’s non-Islamist members, including secularists and representatives of the Coptic Church, had already quit the body to protest the Islamists’ domination.

The increasingly vocal criticism of the assembly threatens to undermine the legitimacy of the ultimate charter, and has only increased the likelihood that the Islamist leaders may seek to pass and ratify it on their own, over the opposition of other groups, further damaging its credibility.

The opposition to the decree has also reinforced the fears of Islamists that judges appointed by Mr. Mubarak and the secular opposition were deliberately seeking to derail the process rather than accept their defeats at the polls.

Nevine Ramzy and Mai Ayyad contributed reporting.

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Undefeated: No. 4 Ohio State over No. 20 UM, 26-21

COLUMBUS, Ohio (AP) — The only thing Urban Meyer lost during his first season at Ohio State was his cool — at the end of the last game.

Carlos Hyde ran for 146 yards and the fourth-ranked Buckeyes' defense shut out No. 20 Michigan in the second half to grab a bruising 26-21 win on Saturday, completing an improbable 12-0 season for the Buckeyes.

Meyer got emotional as the final seconds ticked off, embracing his players on the floor of a raucous Ohio Stadium. Too emotional, he said later.

"I've got to keep a little more composure, I guess," he said sheepishly. "In the coaching manual, I think it's chapter 13, it says, 'Keep cool.' I lost it there for a couple of minutes."

Well, give the guy a break.

Almost no one — up to and including Meyer — expected such a rapid turnaround for the Buckeyes, who were just 6-7 last season with a loss to their archrivals in a transitional year when they were facing heavy NCAA penalties. A month after Meyer took the job last November, they were socked with a bowl ban after this season — and still ran the table.

Ohio State (12-0, 8-0 Big Ten) is ineligible for a BCS national title but still has an outside shot at finishing No. 1 in the final Associated Press Top 25 if other contenders lose. Michigan (8-4, 6-2) will now await a minor bowl bid.

"At this point in time, Ohio State can go and play with anybody in America," Meyer said. "I wouldn't say that five weeks ago, but you've seen the growth, what we did today and the growth of our defense."

Drew Basil matched his season output with four field goals and the defense did the rest, forcing three turnovers in the second half.

It was played before 105,899, the largest crowd ever to witness "The Game" in Columbus.

Meyer and his players were mobbed by thousands of fans who flooded the field after the Buckeyes' ninth victory in the last 11 years in the rivalry (the 2010 win was later vacated by the sanctions).

"It'll go down as one of the great teams in Ohio State history," Meyer exulted.

Hyde also ran for a touchdown. Braxton Miller completed 14 of 18 passes for 189 yards and a score to Corey Brown, who had eight catches for 95 yards.

The Buckeyes had already clinched the Big Ten's Leaders Division, but aren't allowed to play in next Saturday's conference title game. Michigan needed a win to capture a share of the Legends Division with Nebraska, which will meet Wisconsin for the championship.

"I like the W better," said Hoke, who won his debut in The Game a year ago.

Now, about Ohio State can hope for is every other top team in the nation — including the only other unbeaten, top-ranked Notre Dame — to lose and lose badly in the coming weeks. A team banned from the postseason has never finished No. 1 in the AP Top 25 poll, and the Buckeyes are not eligible for the Bowl Championship Series rankings or coaches' poll.

Michigan's Denard Robinson had a brilliant first half, scoring on a 67-yard run, but was largely invisible in the second. He totaled 122 yards on 10 carries, but had lost 2 yards on his four carries after halftime.

"We know the reason we lost the game," Robinson said. "We had three turnovers in the second half. That's not acceptable."

Devin Gardner, the other half of Michigan's quarterback tandem, was 11 of 20 for 171 yards with an interception and a 75-yard touchdown pass to Roy Roundtree.

For the Buckeyes, the game will be remembered for the staunch defense played when most needed. Michigan had 26 plays for 219 yards in the first half, then ran 21 plays for a net of 60 yards in the second.

For the Wolverines, there will be lingering questions for Hoke, who wore short sleeves in the freezing temperatures — just like Woody Hayes used to during the 1960s and 1970s in the rivalry.

With his team ahead 21-20, Hoke called timeout on fourth and 2 near midfield on Michigan's first possession of the second half. Robinson then tried the middle, but ran into linebacker Ryan Shazier for a two-yard loss.

That cost the Wolverines the lead as Ohio State drove to the Michigan 11 before settling for Basil's 28-yard field goal, putting the Buckeyes up 23-21.

"We've got to have each other's back," Hoke said. "We didn't get it and (our own) defense went out there and did a nice job."

Gardner fumbled when hit by Johnathan Hankins with 8:19 left, with Travis Howard pouncing on the loose ball after several players had a shot at it. Taking over at the Wolverines' 10, the Buckeyes could not move the ball and were forced to settle for Basil's fourth field goal of the game, a 25-yarder with 6:26 remaining, for a 26-21 lead.

Basil came into the game just 4 for 6 on the year.

The last turnover ended the Wolverines' hopes.

Gardner tossed a floater that was intercepted by C.J. Barnett, ending the Wolverines final threat as Hyde carried the ball repeatedly and the Buckeyes played keep-away to the finish.

Between the first and second quarters, Ohio State honored its 2002 national championship team. After a highlight clip was shown to a roaring crowd, several players hoisted coach Jim Tressel to their shoulders and carried him out of the end zone.

No boos were heard, or else they were drowned out — even though it was Tressel's NCAA violations, he failed to report players exchanging team memorabilia for cash and tattoos, which will keep this year's unbeaten Buckeyes home in the postseason.

Asked if — should his team end up as the only unbeaten in the nation — it should be crowned No. 1 in the AP poll, Meyer said:

"I'm not going to get into the 'what ifs.' You can't control what you can't control. ... We're 12-0 and I'm going to see to it when you walk into that Woody Hayes (practice) facility that this team will never be forgotten. Because they deserve that."

___

Follow Rusty Miller on Twitter: http://www.twitter.com/rustymillerap

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Indian Prostitutes’ New Autonomy Imperils AIDS Fight

MUMBAI, India — Millions once bought sex in the narrow alleys of Kamathipura, a vast red-light district here. But prostitutes with inexpensive mobile phones are luring customers elsewhere, and that is endangering the astonishing progress India has made against AIDS.

Indeed, the recent closings of hundreds of ancient brothels, while something of an economic victory for prostitutes, may one day cost them, and many others, their lives.

“The place where sex happens turns out to be an important H.I.V. prevention point,” said Saggurti Niranjan, program associate of the Population Council. “And when we don’t know where that is, we can’t help stop the transmission.”

Cellphones, those tiny gateways to modernity, have recently allowed prostitutes to shed the shackles of brothel madams and strike out on their own. But that independence has made prostitutes far harder for government and safe-sex counselors to trace. And without the advice and free condoms those counselors provide, prostitutes and their customers are returning to dangerous ways.

Studies show that prostitutes who rely on cellphones are more susceptible to H.I.V. because they are far less likely than their brothel-based peers to require their clients to wear condoms.

In interviews, prostitutes said they had surrendered some control in the bedroom in exchange for far more control over their incomes.

“Now, I get the full cash in my hand before we start,” said Neelan, a prostitute with four children whose side business in sex work is unknown to her husband and neighbors. (Neelan is a professional name, not her real one.)

“Earlier, if the customer got scared and didn’t go all the way, the madam might not charge the full amount,” she explained. “But if they back out now, I say that I have removed all my clothes and am going to keep the money.”

India has been the world’s most surprising AIDS success story. Though infections did not appear in India until 1986, many predicted the nation would soon become the epidemic’s focal point. In 2002, the C.I.A.’s National Intelligence Council predicted that India would have as many as 25 million AIDS cases by 2010. Instead, India now has about 1.5 million.

An important reason the disease never took extensive hold in India is that most women here have fewer sexual partners than in many other developing countries. Just as important was an intensive effort underwritten by the World Bank and the Bill and Melinda Gates Foundation to target high-risk groups like prostitutes, gay men and intravenous drug users.

But the Gates Foundation is now largely ending its oversight and support for AIDS prevention in India, just as efforts directed at prostitutes are becoming much more difficult. Experts say it is too early to identify how much H.I.V. infections might rise.

“Nowadays, the mobility of sex workers is huge, and contacting them is very difficult,” said Ashok Alexander, the former director in India of the Gates Foundation. “It’s a totally different challenge, and the strategies will also have to change.”

An example of the strategies that had been working can be found in Delhi’s red-light district on Garstin Bastion Road near the old Delhi railway station, where brothels have thrived since the 16th century. A walk through dark alleys, past blind beggars and up narrow, steep and deeply worn stone staircases brings customers into brightly lighted rooms teeming with scores of women brushing each other’s hair, trying on new dresses, eating snacks, performing the latest Bollywood dances, tending small children and disappearing into tiny bedrooms with nervous men who come out moments later buttoning their trousers.

A 2009 government survey found 2,000 prostitutes at Garstin Bastion (also known as G. B.) Road who served about 8,000 men a day. The government estimated that if it could deliver as many as 320,000 free condoms each month and train dozens of prostitutes to counsel safe-sex practices to their peers, AIDS infections could be significantly reduced. Instead of broadcasting safe-sex messages across the country — an expensive and inefficient strategy commonly employed in much of the world — it encircled Garstin Bastion with a firebreak of posters with messages like “Don’t take a risk, use a condom” and “When a condom is in, risk is out.”

Surprising many international AIDS experts, these and related tactics worked. Studies showed that condom use among clients of prostitutes soared.

“To the credit of the Indian strategists, their focus on these high-risk groups paid off,” said Dr. Peter Piot, the former executive director of U.N.AIDS and now director of the London School of Hygiene and Tropical Medicine. A number of other countries, following India’s example, have achieved impressive results over the past decade as well, according to the latest United Nations report, which was released last week.

Sruthi Gottipati contributed reporting in Mumbai and New Delhi.

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Nintendo’s Wii U Takes Aim at a Changed Video Game World

REDMOND, Wash.

TUCKED in the woods here, west of State Route 520, is a little piece of the Mario Kingdom.

Behind the unassuming doors is the business built by Mario, the pudgy plumber, and Luigi, his lanky brother, as well as characters like Link, wielder of the mystical Master Sword, and Princess Zelda, of the royal family of Hyrule. All of them, and more, are the pixelated children of Shigeru Miyamoto, the Walt Disney of video games and creative genius of the Nintendo Company of Japan.

But while Mr. Miyamoto is dreaming his dreams across the Pacific, an army of marketing types is at work here in Redmond, inside the shiny new headquarters of Nintendo of America. This palace of play is quiet, but there’s trouble brewing in the world around it: three decades after the mustachioed Mario burst into arcades via Donkey Kong, plucking countless quarters from people’s pockets, the kingdom is under siege.

Nintendo’s enemies have arrived by battalions. Angry Birds, Fruit Ninja and other inexpensive, downloadable games, particularly for cellphones and tablets, have invaded its turf. Changing tastes and technology have called into question the economics of traditional game consoles, whether from Nintendo or Microsoft, maker of the Xbox. Nintendo recently posted the first loss in its era as a video games company, a prospect that would have been unimaginable only a few years ago. And while game consoles aren’t going away, analysts are skeptical that the business will regain its former stature soon.

All of which makes Nintendo’s next move, and what is happening here, so crucial. Nintendo counterattacked on Nov. 18, when a new version of its Wii game console arrived in stores nationwide.

The original Wii, the first wireless, motion-capturing console, was nothing less than revolutionary. The simplicity of its controller, which Mr. Miyamoto helped design, attracted new audiences like women and older people. Customers lined up in stores for it — and then it simply faded. Now, the new console, the Wii U, may be Nintendo’s last, best hope for regaining its former glory. Executives are hoping for a holiday hit, and perhaps even another runaway success.

Initial demand appears high. GameStop, the video game retailer, opened 3,000 stores at midnight on Thursday for Black Friday sales, and before long almost all its Wii Us were sold out, according to Tony Bartel, GameStop’s president. “I think people are starving for innovation, and Wii U is giving them that innovation," Mr. Bartel says. 

THE Wii U is a recognition that the living room is no longer the province of a single screen. More people, particularly the young, now watch TV with a smartphone or tablet in hand, the better to tweet a touchdown or update their Facebook status during a commercial. The Wii U looks like a mash-up of an iPad and a traditional console, with a touch screen embedded in the middle. It’s no mere festival of joysticks, buttons and triggers.

But will it be the blowout that Nintendo needs? Many industry veterans and game reviewers are skeptical. They question whether the Wii U can be as successful as the original, now that many gamers have moved on to more abundant, cheaper and more convenient mobile games.

“I actually am baffled by it,” Nolan K. Bushnell, the founder of Atari and the godfather of the games business, says of the Wii U. “I don’t think it’s going to be a big success.”

The bigger question is what the future holds for any of the major game systems, including new ones that Sony and Microsoft are expected to release next year. Echoing other industry veterans, Mr. Bushnell says that consoles are already delivering remarkable graphics and that few but the most hard-core players will be willing to pay hundreds of dollars for a new game box.

“These things will continue to sputter along, but I really don’t think they’ll be of major import ever again,” he says. “It feels like the end of an era to me.”

Nintendo is unbowed. Mr. Miyamoto was involved in developing the original Wii, and had a role in the Wii U as well. He rarely gives interviews, and was unavailable for comment for this article.

But one recent evening in Redmond, Corey Olcsvary, a Nintendo product marketing specialist, was slashing his fingers across the touch screen on the GamePad, as the Wii U controller is called, casting “throwing stars” at a ninja gang that sprang from the corners of a giant TV screen. In another game, a group of players chased Mario — one of the most popular video game characters ever — around a maze shown on a TV while Mr. Olcsvary stared at a bird’s-eye view of the maze on his GamePad and tried to help Mario dodge his pursuers. The players shouted when they caught sight of Mario’s red overalls and cheered when they tackled him.

Starting in December, people will also be able to use the GamePad as a remote control to set recordings and change channels on their cable and satellite TV services.

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Sony at greater risk than Panasonic in electronics downturn: Fitch

TOKYO (Reuters) – Panasonic Corp has a better chance than rival Sony Corp of surviving Japan‘s consumer electronics slump because of its unglamorous but stable appliance business of washing machines and fridges, credit rating agency Fitch said Friday.

Fitch cut Panasonic‘s rating by two notches to BB and Sony three notches to BB minus on Thursday, the first time one of the three major ratings agencies have put the creditworthiness of either company into junk-bond territory.

Rival agencies Moody’s and S&P rate both of Japan’s consumer electronic giants at the same level, just above junk status. Moody’s last cut its rating on Panasonic on Tuesday.

Panasonic “has the advantage of a relatively stable consumer appliance business that is still generating positive margins”, Matt Jamieson, Fitch’s head of Asia-Pacific, said in a conference call on Friday to explain its ratings downgrades.

But at Sony, he added, “most of their electronic business are loss making, they appear to be overstretched.”

Japan’s TV industry has been bested by cheaper, more innovative models from Samsung Electronics and other foreign rivals, while tablets and smartphones built by Apple Inc have become the dominant consumer electronics devices.

Investors are focusing on the fate of Sony and Panasonic after another struggling Japanese consumer electronics firm, Sharp Corp, maker of the Aquos TV, secured a $ 4.6 billion bail-out by banks including Mizuho Financial Group and Mitsubishi UFJ Financial Group.

Sony and Panasonic have chosen divergent survival paths.

Panasonic, maker of the Viera TV, is looking to expand its businesses in appliances, solar panels, lithium batteries and automotive components. Appliances amount to around only 6 percent of the company’s sales, but they generate margins of more than 6 percent and make up a big chunk of operating profit.

Sony, creator of the Walkman, is doubling down on consumer gadgets in a bid to regain ground from Samsung and Apple in mobile devices while bolstering digital cameras and gaming.

The latest downgrades will curtail the ability of both Japanese companies to raise money in credit markets to help fund restructurings of their business portfolios.

For now, however, that impact is limited, given the support Panasonic and Sony are receiving from their banks.

In October, Panasonic, which expects to lose $ 10 billion in the year to March 31, secured $ 7.6 billion of loan commitments from banks including Sumitomo Mitsui Financial Group and Mitsubishi UFJ, a financing backstop it says will help it avoid having to seek capital in credit markets.

Sony, which has forecast a full-year profit of $ 1.63 billion helped by the sale of a chemicals business to a Japanese state bank, announced plans to raise $ 1.9 billion through a convertible bond before the latest rating downgrade.

Thomson Reuters’ Starmine structural model, which evaluates market views of credit risk, debt levels and changes in asset values gives Panasonic and Sony an implied rating of BB minus. Sharp’s implied rating is three notches lower at B minus.

Standard & Poor’s rates Panasonic and Sony at BBB, the second lowest of the investment grade, while Moody’s Investors Service has them on Baa3, the lowest of its high-grade category. Moody’s has a negative outlook for both firms while S&P sees a stable outlook for Panasonic and a negative one for Sony.

Stock markets in Japan were closed on Friday for a national holiday.

(Reporting by Tim Kelly; Editing by Mark Bendeich)

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Protests Erupt After Egypt’s Leader Seizes New Power

CAIRO — Opponents of President Mohamed Morsi were reported to have set fire to his party’s offices in several Egyptian cities on Friday in a spasm of protest and clashes after he granted himself broad powers above any court declaring himself the guardian of Egypt‘s revolution, and used his new authority to order the retrial of Hosni Mubarak.

Maya Alleruzzo/Associated Press

Egyptian protesters chanted antigovernment slogans and waved a national flag in Tahrir Square on Friday.

In the Mediterranean city of Alexandria, the opponents of the Muslim Brotherhood’s Freedom and Justice Party clashed with followers of Mr. Morsi, an Islamist, who won Western and regional plaudits only days ago for brokering a cease-fire to halt eight days of lethal exchanges between Israeli forces and militants in the Gaza Strip.

Mr. Morsi, Egypt’s first democratically elected president, portrayed his decree assuming the new powers as an attempt to fulfill popular demands for justice and protect the transition to a constitutional democracy. He said it was necessary to overcome gridlock and competing interests. But the unexpected breadth of the powers he seized raised immediate fears that he might become a new strongman.

“We are, God willing, moving forward, and no one stands in our way,” Reuters quoted Mr. Morsi as saying on Friday said in a suburban mosque here after Friday prayers.

“I fulfill my duties to please God and the nation and I take decisions after consulting with everyone,” he said. “Victory does not come without a clear plan and this is what I have.”

He spoke as state television reported that his party’s offices in the Suez Canal cities of Suez, Port Said and Ismailia had been burned as his foes rampaged. Thousands of people protesting Mr. Morsi’s power grab gathered in Tahrir Square here — the focal point of protests that, last year, swept away Mr. Mubarak. Elsewhere in the capital, the president’s supporters massed in even larger numbers outside the presidential palace where Mr. Morsi said his aim was “to achieve political, social and economic stability.”

“I am for all Egyptians. I will not be biased against any son of Egypt,” he said on a stage outside the presidential palace, Reuters, reported, adding he was working for social and economic stability. “Opposition in Egypt does not worry me, but it has to be real and strong,” he said.

Sounding defensive at times and employing some of the language favored by his autocratic predecessor, Mr. Morsi justified his power grab as necessary to move Egypt’s revolution forward.

“The people wanted me to be the guardian of these steps in this phase,” he said, reminding his audience that he was freely elected after a contest “that the whole world has witnessed.”

“I don’t like, and don’t want — and there is no need — to use exceptional measures,” he said. “But those who are trying to gnaw the bones of the nation,” he added, “must be held accountable.”

News reports said clashes spread from Alexandria to the southern city of Assyut. But the severity of the clashes was not immediately clear.

Mr. Morsi’s new powers prompted one prominent adversary, Mohamed ElBaradei, to say on Twitter: “Morsi today usurped all state powers & appointed himself Egypt’s new pharaoh.”

“An absolute presidential tyranny,” Amr Hamzawy, a liberal member of the dissolved Parliament and prominent political scientist, wrote in an online commentary. “Egypt is facing a horrifying coup against legitimacy and the rule of law and a complete assassination of the democratic transition.”

Mr. Morsi issued the decree on Thursday at a high point in his five-month-old presidency, when he was basking in praise from the White House and around the world for his central role in negotiating a cease-fire that the previous night had stopped the fighting in the Gaza Strip.

But his political opponents immediately called for demonstrations on Friday to protest his new powers. “Passing a revolutionary demand within a package of autocratic decisions is a setback for the revolution,” Abdel Moneim Aboul Fotouh, a more liberal former leader of the Muslim Brotherhood and a former presidential candidate, wrote online. And the chief of the Supreme Constitutional Court indicated that it did not accept the decree.

In Washington on Thursday, the State Department spokeswoman, Victoria Nuland, released a statement saying: “The decisions and declarations announced on November 22 raise concerns form many Egyptians and the international community,” and noting that “one of the aspirations of the revolution was to ensure that power would not be overly concentrated in that hands of any one person or institution.” The statement called for resolution “through democratic dialogue.”

David D. Kirkpatrick and Kareem Fahim reported from Cairo and Alan Cowell from Paris. Mayy El Sheikh contributed reporting.

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NHL cancels games through Dec. 14, All-Star game

NEW YORK (AP) — The NHL has called off all games through Dec. 14, plus the 2013 NHL All-Star Weekend scheduled for Jan. 26-27 in Columbus, Ohio.

The league made the announcement Friday, the 69th day of the NHL's lockout of its players.

The new cancellations come as little surprise. The two sides had an unproductive negotiating session on Wednesday that produced no movement to break an impasse over splitting more than $3 billion in revenue and also player contracts.

A total of 423 regular-season games, including the New Year's Day Winter Classic have now been lost. That's more than 34 percent of the season,

NHL Deputy Commissioner Bill Daly said losing the 2013 NHL All-Star Weekend in Columbus is "extremely disappointing."

"We feel badly for NHL fans and particularly those in Columbus, and we intend to work closely with the Blue Jackets organization to return the NHL All-Star events to Columbus and their fans as quickly as possible," Daly said in a statement Friday.

The Columbus Blue jackets, the club hosting the All-Star game and the skills competition, said fans with tickets to events on that weekend could receive refunds.

Players' association executive director Donald Fehr said Wednesday that the sides were closer financially than the NHL has claimed. The further cancellations Friday will cause significantly greater losses for the league.

"On Wednesday, the players presented a comprehensive proposal, once again moving in the owners' direction in order to get the game back on the ice," Fehr said in a new statement. "The gap that remains on the core economic issues is $182 million. On Wednesday, NHL Commissioner Gary Bettman said that the league is losing $18-20 million per day during the lockout, therefore two more weeks of cancelled games far exceeds the current economic gap.

"It makes the NHL's announcement of further game cancellations, including the 2013 All-Star Weekend, all the more unnecessary, and disappointing for all hockey fans — especially those in Columbus. The players remain ready to negotiate but we require a willing negotiating partner."

Daly said he spoke to union officials on Friday, advising them about the cancellations, but at this point no face-to-face talks are scheduled. The two sides had stayed apart for eight days before reconvening on Monday night and then again on Wednesday when the union presented a comprehensive proposal the NHL requested.

It didn't take long for the league to reject it.

The union made its offer that was based on a framework the NHL had given, which included a 50-50 split of hockey-related revenue and a $393 million in deferred payments for the players, who earned 57 percent of revenues in the collective bargaining agreement that expired in September. The NHL offered only $211 million to the players in a proposed deal that took into account that a full 82-game schedule would be played this season.

The NHL on Oct. 16 offered a 50-50 split of hockey-related revenue, down from the players' 57 percent portion of $3.3 billion last season. With guaranteed contracts likely to push the players' share over the halfway mark at the start of the next deal, management wants that money to come out of future years to bring the overall percentage down to an even split over the length of an agreement.

Players previously had proposed they receive a guaranteed amount of income each year.

Management wants a seven-year deal, which the union says is too long because less than half the current players will be active by the last season.

This is the league's third lockout since 1994. The first settled on Jan. 11 and the last one led to Bettman announcing the cancellation of the 2004-05 season on Feb. 15, 2005.

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