Microsoft announced this morning that it has official made an acquisition offer to Yahoo for the sum of $44.6 billion. Steve Ballmer on behalf of the Microsoft board of directors sent out a letter to Yahoo yesterday with the offer at $31 per share for all of Yahoo’s outstanding common stock.

According to the letter Microsoft has been in talks with Yahoo for some time, citing a letter in February of 2007 from Yahoo stating that “now is not the right time…”. Microsoft points out that things have not improved for Yahoo since earlier last year and without naming any other companies they refer to an increasingly dominate player in the market (we’re just guessing Google) who is increasing its own dominance by more acquisitions. Microsoft feels that combining forces with Yahoo increases the fighting chances in the online advertising space for both of them.

Dell is getting out of the “we own a brand name location” business, the computer company announced today. It said it plans to close its 140 kiosks in the United States.

Dell began its “Direct Store” model in 2002, but has since expanded to a retail model which puts its laptop and desktop computers in more than 10,000 retail outlets worldwide. The company feels its retail shifts fit “with how our broad global retail strategy is evolving.”

We’ve been checking daily for that next firmware update we told you about earlier this month that is to include Skype VoIP calling, and looks like it hit today. Version 3.90 is available for download from the Network Update menu on the PSP and will bring support for more PlayStation Network titles to the PSP along with the ability to make and receive free Skype calls on your Playstation Portable. The announcement comes today from Sony Europe but the update appears to be available for download here in the U.S. as well.

Unfortunately this feature is available only on the newer, slim PSP 2000 models and will require you to get a PSP headset and PSP remote control or Go! Cam to operate the Skype features. The 3.90 firmware with Skype lets you make free internet calls through the PSP Wi-Fi connection much like you would from a computer and will even let you setup a new Skype account on the PSP. If you have some Skype credit you can also make SkypeOut calls to landlines for a fee.

According to some leaked information from a Best Buy employee, the retailer sent out an internal memo that the 80GB Playstation 3 is scheduled to be “going closeout”, which basically means they will sell what’s on shelves and not stock anymore. The internal communication states that this is expected to take place as soon as January 28.

It’s been apparent that the 80GB model of the PS3 hasn’t had the selling power of the smaller and cheaper models, but since the removal of the 60GB models this leaves the shelves with nothing that is backwards compatible with PS2 games. It also limits consumers to the scaled down PS3 without the memory card reader and fewer USB ports.

Dell and Microsoft partnered on a program called (RED) in conjunction with (RED) co-founder Bono to help fight AIDS in Africa. The program offers special (RED) branded PCs and printer in which part of the proceeds will go to help people in places like Rwanda, Swaziland and Ghana.

For each purchased (PRODUCT) RED branded PC from Dell loaded with a RED branded Windows Vista Ultimate, Dell and Microsoft will contribute between $50 and $80 to the Global Fund of the program. $80 will bring as much as six months of life-saving antiretroviral treatment for a person living with AIDS in Africa. A RED branded printer will generate a $5 contribution.

CBS announced on Wednesday that its Last.fm internet radio service will be adding a new feature that will allow users to listen to any song they would like, whenever they would like for free, up to three times per song.

Up until now Last.fm’s model has been similar to many other internet radio services. The 20 million currently active users can select a genre “station” to listen to and hear the music in the order that the service streamed it out, along with advertising in between. CBS and Last.fm is building on this model since the service is free to users and paid for by the advertising, much like tradition radio. This new option gives users the change to select a particular song and listen to it as many as three times, on-demand.

Sony is only days away from releasing the availability of Skype on the PSP and the company has released an announcement saying that the January 24th launch will be delayed. In particular, Sony officials said that the microphone products they’ve created for the PSP to go along with the Skype service are what is causing the problem.

Both the Single Pack and the Double Pack microphones did not meet Skype’s specifications, and instead of going on without them Sony is going to hold up the whole works. A new solution and a new launch date for the Skype service and microphones for the PSP are being “sought after” and will be announced at a later time.

The good news is that this delay so far seems limited to Japan. It’s strange that they would come to this conclusion only a day before the launch. Are the microphones for Japan customers different and not up to standard while the microphones for the U.S. are acceptable, or is there some other force in Japan that doesn’t like the idea of free mobile VoIP minutes?

The Playstation 3 ended 2007 with a strong December selling just under 800,000 units during the month and looks to trying to keep on with momentum this year by releasing the white PS3 that we saw launch last October in Japan. It came with a 40GB hard drive, white DualShock controllers and like the other 40GB models it lacked the memory card reader, backwards compatibility and had only two USB ports. This white model headed for the US appears to be the same. The information along with photos was released by the FCC and shows it was originally submitted last October with a request to keep it under wraps for a while.

Starting Tuesday Time Warner’s HBO will begin HBO On Broadband, a trial of a new online video download service bringing HBO content to subscribers’ computers much like HBO On Demand does but with much more content. The new service will offer 400 hours of video content including 130 movie titles that can all be downloaded and viewed through a computer.

Before you get too excited about getting the Sapranos downloaded you’ll want to note that this is starting out as a limited area trial and has some requirements. The HBO On Broadband service will initial launch only in the Wisconsin areas of Green Bay and Milwaukee with plans of expanding to other areas at a later time. Those residing in the eligible areas must also be subscribers to HBO’s pay-cable network and must use their cable company as their internet provider, making the bundled services from the cable providers a more attractive prospect. The service is also limited to Windows systems.

Apple seems intent on bringing the iPhone to Asia yet this year and Advanced Info Service (AIS) in Thailand is the latest to announce that they are in negotiations to bring the popular mobile handset in their direction. Apple has recently been in negotiations with NTT Docomo in Japan with revenue sharing being a pivotal point in negotiations. China Mobile had also been in talks about carrying the iPhone until recently when the issue of revenue sharing with Apple brought the discussions to a halt.

According to AIS chief marketing officer Sanchai Thiewprasertkul, Apple is likely to find difficulty in negotiating a revenue sharing deal in Thailand as well. AIS charges only a Thai baht (about 3 cents) per minute for airtime on their plans, and around 90% of the plans are prepaid. Apple would have trouble making revenue by trying to split 3 cents per minute and is looking to do so with post-paid plans.

We spent a little time today creating a custom icon just for the iPhone/Touch home screen. If you’re an iPhone or iPod Touch owner, you’re good with the latest firmware and you’re a fan of the ‘Brick then you can add our cool new icon to your menu screen for quick and convenient access.

Over at CNET, they were surprised to discover that using some Dell laptops can get you an electric shock. And they weren’t the only ones. Dell’s forums are littered with user complaints about the same experiences. The shocks reportedly “vary in strength from a gentle tingle to a sudden jolt.” They noticed that the shocks happened when connecting peripherals to the laptops. Apparently they have figured out which ones are the problem devices: The versions that feature a brushed-aluminum finish. Those would be the XPS M1330 and XPS M1530.

The shocks seem to be the result of a power adapter that isn’t grounded properly, the 2-prong connector lacking a third pin. It turns out that Dell’s knowledge base actually acknowledges the problem in an entry titled “A Tingling Sensation May Be Noticed When Touching Metal Components of Dell Devices Equipped with Two-Prong AC Adapters.” The entry also states that “the voltage (tingling sensation) does NOT present any risk of injury to the user.” Somehow, I think we all know that tingling sensations from electricity can never be good.

NPD has released the year-end sales numbers for non-PC video games in 2007 showing record figures for the industry. The year 2007 brought an impressive 43 percent increase in sales compared to 2006 with a total of $17.94 billion.

Game Consoles
The highlights of the year come as no surprise if you’ve been reading our coverage of game console sales with the Nintendo Wii topping the list of most console units sold at 6.29 million. The Wii spent the year at a lower price-point than rival consoles and caught the attention of a wide range of gamers. Behind the Wii in console sales was the Xbox 360 with 4.62 million units sold in 2007, which was helped out a little bit by the wildly popular Halo 3. Next in line was not Sony’s new Playstation 3 but it’s older brother, the Playstation 2. Sony moved 3.97 million PS2 units in 2007 and 2.56 million PS3s.

Microsoft wants to deliver more ads to consumers, so they have found a unique way to do it more effectively. Working with a company called MediaCart, they are building computers that would be mounted on grocery carts. It would allow consumers to navigate the store and then automatically check them out when they’re finished. What would convenience be without revenue? That’s why Microsoft will have video ads mixed with the experience.

The cart-mounted computers will be tested at some ShopRite markets in the second half of 2008. Shoppers can pick up items, scan them with the system and leave them in their carts. The console will provide a running price tally and even check items off the shopping list. The system is also equipped with RFID, so it can track shoppers while they’re moving around in the store, deciding whether they want Captain Crunch or Cocoa Puffs. Shoppers will also be able to bring their list to the store with just a swipe of their loyalty card.(Everybody has a loyalty card, and yet it doesn’t seem to make any of us loyal.)

Looking for a consumer electronics brand to call your own? The CyberHome brand is apparently on the auction block for those willing to pony up the cash. You only have until January 24 to submit your bid though.

CyberHome apparently imploded after a royalty dispute forced it into bankruptcy. The brand is known for making mostly mediocre “DVD players, LCD televisions, personal media players and home theater systems.” Its devices are sold in the US, Canada, Europe, South America, Asia and the Middle East.