So what happens when the Apple suggests your handheld game device is sub-par? Out of touch? Passe? ‘Dems fighting words, right?

That’s what I asked Sony’s PlayStation boss Jack Tretton during a recent interview. His response? Keep talking, Apple — you’re only creating more future PlayStation users.

A little background: Earlier this month, Apple’s Phil Schiller said this about Sony’s PlayStations Portable (PSP) and the Nintendo DS, which have together sold more than 150 million units around the globe:

When these things came out they seemed so cool. But once you play a game on the iPod touch, they don’t really stack up anymore. They don’t have this amazing multi-touch user interface. The game are kind of expensive. they don’t even have anything like the Apps Store to find great games and titles. And they certainly don’t deliver a media experience like the iPod that is built into the iPod touch.

But worst is the buying experience. Having to go to the store and trying to find a hot new title is not a lot of fun.

Not long after, Apple CEO Steve Jobs piled on to the New York Times, saying that the new lower price for the iPod Touch would draw in gamers.

Tretton, whose full title is CEO of Sony Computer Entertainment of America, counterpunched:

The gaming heritage and the home of gaming is PlayStation. Dabbling in gaming is nice and ‘thank you’ for getting people interested in gaming — because they are going to end up with us.

Its sort of like saying, I got my drivers license and my first car was a beat up Subaru, but if you are ultimately going to be on the track, you are going to be driving a race car, and not something that’s basic transportation. So if you are going to be seriously interested in gaming you are going to end up a PlayStation consumer.

Tough talk between two consumer electronics giants.

Personally, I have played games on all three devices — but not the same games — so I can’t testify to an apples-to-apples comparison. But I’ll say this: Poker and Tetris on the iPod Touch? Fun. Super Mario Bros on the DS? Cool. FIFA Soccer on the PSP? Wicked.

(Photo: Sony’s Jack Tretten at E3; Reuters)

I’m in Silicon Valley this week meeting technology bankers and venture capitalists. Among the deal chatter, this is a question that came up more than once: Does Cisco feel a little silly for buying Flip camcorder maker Pure Digital, now that Apple has launched its popular iPod music players with built-in video?

The networking giant has long been trying to expand in the consumer gadgets market, and six months ago, it paid $590 million to acquire the San Francisco-based maker of pocket-sized digital camcorders. These sell for between $149.99 and $199.99.

Last week, Apple unveiled a new iPod Nano with built-in video. The 8GB version that can shoot up to two hours of video costs $149, and the next version costs $179.

Cisco’s plan was to use its operational scale and marketing to bring Flip to a much wider market. Given how much people like to post home-made videos on YouTube and other channels, it sounded like a smart idea.

But now Apple is giving Cisco a run for its money. Some people say the Flip shoots better video than the Nano, but generally speaking — which device would you rather choose, given that both are similarly priced? A hip little music player that also lets you shoot baby Morgan’s first steps (not to mention plays radio and has a pedometer), or a Cisco-owned digital video recorder?

Apple’s stock has historically fluctuated widely in the days before and after three major annual events: the January Macworld showcase for fans, the mid-year Worldwide Developers’ Conference, and its September media/entertainment event.

Its share movements, however, have been relatively muted in the run-up to this year’s September extravaganza with many Apple-watchers initially expecting a no-show from CEO Steve Jobs, who had been out most of the year on medical leave for a liver transplant. Here’s a look at how Apple’s share price has fared in relation to major press events held by the company since 2007.

Key to events is below:

1 - January 9, 2007 (Macworld) - Announces (but does not launch) first iPhone

2 - June 11, 2007 (WWDC) - Latest version of Mac OS; Safari for Windows

3 - September 5, 2007 - Introduces iPod touch, cuts iPhone price, updated iPod nano, iPod classic

4 - January 15, 2008 (Macworld) - MacBook Air, iTunes movie rentals

5 - June 9, 2008 (WWDC) - iPhone 3G announced

6 - Sept 9, 2008 - Updated Nano, Touch, iTunes

7 - Jan 6, 2009 (Macworld; Jobs did not speak) - DRM-free iTunes, MacBook Pro update

8 - June 8, 2009 (WWDC) - iPhone 3Gs, new Macbook models, new Mac OS

New colors, video camera, price cuts. Whatever. The Apple show belonged to Steve Jobs.

So how did he look? Rail thin, as you can see from this picture (see below or click here for a bunch more shots of the 54-year old chief executive). That shouldn’t come as a surprise, given he’s recovering from a liver transplant.

Even looking frail, however, his presence pumped up the crowd. “Steve Jobs making an appearance was definitely a pleasant surprise,” said Shaw Wu, an analyst with Kaufman Brothers. Another analyst, Brian Marshall of Broadpoint AmTech added, “I was surprised to see Steve. It’s great to see that he’s doing well.”

Here is a chronology of Jobs’ health issues:

2004:

August: Jobs announces he underwent successful surgery to remove a cancerous tumor from his pancreas. He says it was a rare form of pancreatic cancer called an islet cell neuroendocrine tumor.

2005:

June: Jobs mentions the cancer in a commencement address at Stanford University. “This was the closest I’ve been to facing death, and I hope it’s the closest I get for a few more decades,” he says.
Read the whole speech and see the video here.

2008:

June 9: Jobs appears dramatically thinner at an Apple iPhone event, touching off speculation that the cancer has returned. The company said later he was fighting a “common bug” and taking antibiotics. Apple called Jobs’ health a “private matter”.

July 26: The New York Times journalist Joe Nocera wrote in a column that he had spoken to Jobs about his health but that because the conversation was off record, he could not disclose what was said. “While his health problems amounted to a good deal more than ‘a common bug,’ they weren’t life-threatening and he doesn’t have a recurrence of cancer,” Nocera wrote.

Sept. 9: At an iPod product launch, Jobs jokes about his health by walking on stage in front of a giant screen that flashed “The reports of my death are greatly exaggerated” — a quotation borrowed from Mark Twain.

Oct. 3: A false Internet report that Jobs had suffered a heart attack briefly pushes Apple shares down 2 percent to a 17-month low. Apple quickly denied the report on iReport.com, a citizen journalist site owned by CNN.

Oct. 14: At a Mac product launch event, Jobs jokes again about his health. His blood pressure was 110 over 70 and he said, “And that’s all we’re going to be talking about Steve’s health today.”

Dec. 16: Apple said Jobs won’t deliver the keynote address at the Macworld trade show in January, reviving concerns about his health. Asked to explain the decision, spokesman Steve Dowling said it would be the last time Apple takes part in Macworld so “it doesn’t make sense for us to make a major investment in a trade show we’ll no longer be attending.”

Dec. 30: Apple shares fall as much as 2 percent after Gizmodo reported that Jobs health was “rapidly declining” and that was the reason why he canceled the Macworld keynote.

2009:

Jan. 5: Jobs says he has been losing weight throughout 2008 and his doctors think a hormone imbalance was “robbing” him of proteins. He says he has begun a “relatively simple and straightforward” treatment for his nutritional problem and that he will continue as CEO during recovery. “I will be the first one to step up and tell our board of directors if I can no longer continue to fulfill my duties as Apple’s CEO,” he says. Apple shares rise 5 percent.

Jan. 14: Jobs announces medical leave until the end of June, saying his health issues are “more complex” than originally thought. He hands day-to-day operations to Chief Operating Officer Tim Cook and says he plans to remain involved in major strategic decisions. Apple shares fall 10 percent in after-hours trading. Read his email to employees here.

Jan. 21: The U.S. Securities and Exchange Commission is examining Apple’s disclosures about Jobs to ensure investors were not mislead, Bloomberg reports.

June 8: Apple unveils new iPhone 3GS at its annual Worldwide Developer’s Conference but Jobs does not make an appearance.

June 20: The Wall Street Journal reports that Jobs had a liver transplant in Memphis, Tennessee about two months ago and he is expected to return to work later in June. Apple declines comment except to say it expects Jobs back at the end of the month.

June 22: Jobs is spotted at the Apple campus in Cupertino, California, underscoring expectations that he is either back at work or will return soon.

June 23: The Methodist University Hospital Transplant Institute confirms it performed a liver transplant on Jobs and says he is “recovering well and has an excellent prognosis.” The hospital does not give more details, saying the confirmation had come with Jobs’ permission.

June 29: Jobs returns from medical leave. An Apple spokesman says Jobs will be in the office a few days a week, and work from home the rest of the time.

Reuters will have live updates and photos from Apple's live event at 1 pm ET on Wednesday.

Apple Inc's Phil Schiller, Senior Vice-President of worldwide marketing, speaks about the iPod touch's game playing capabilities.  REUTERS/Robert Galbraith

All photos by Robert Galbraith.

Apple confirmed what the technology world has been expecting for weeks: a September 9 media extravaganza. The company has been holding September events for years to refresh its iPod line and unveil new models ahead of the holiday season.

And while new iPods are also expected to be on tap this year, Apple threw in a little curveball to get the company’s fans and followers talking.

Sept. 9 is also the launch day for “The Beatles: Rock Band” video games, as well as the date that EMI will release the digitally remastered versions of their original song catalog. Given that supposed coincidence, some were speculating that a deal to finally bring the Beatles’ songs to iTunes was brewing. The Beatles may be the most famous rock band ever, but they have not yet made their songs available on Apple’s hugely popular online store.

So what’s the problem? The invitation sent to the media featured the tagline, “It’s only rock and roll, but we like it,” referencing the Rolling Stones hit from the 1970s. The Stones’ catalog is already available on iTunes.

A Beatles deal would seem a bit more likely if the invite tagline had read: “I get by with a little help from my friends.”

Tech bloggers love to write about Apple, for better or for worse. The secretive nature of the company means a lot of those blogs are speculative and light on sources, yet  we still all love to read them because the house that Steve built is indeed both a fascinating and hugely successful company.

The latest round of speculation is around Apple’s planned September keynote event which sources have told AllThingsDigital is due to take place on Wednesday,  Sept 9 in San Francisco. There has been a huge amount of speculation around whether Apple will unveil a new tablet device but sources tell the blogs there will be “no discussion whatsoever” of the such a device.

AllThingsDigital’s John Paczkowski isn’t giving up though saying: “Too bad. It’s looking more and more like we’ll have to wait until 2010 for that.”

It’s now expected that Apple will debut a new social version of its iTunes media player and unveil new versions of its iPod.

The other big question is whether Steve Jobs will make his first appearance since returning to work after his liver transplant.

Keep an eye on:

• News Corp’s Star TV overhauls Asia unit to focus on India (Reuters)
• Dreamworks closes deal with Indian investors Reliance (NYTimes)
• Apple investigating reports of exploding iPhones-EU (Reuters)

(Photo: Reuters)

Ka-Ching! 

Silicon Valley veteran Mark Andreessen, who sits on Facebook’s board, says the company will rack up billions of dollars in revenue in five years.

It’s more important at this stage for social sites like Facebook and Twitter to beef up their base of user, rather than worry too much about filling their money bags.

Privately held Facebook — which counts venture capitalist Peter Thiel, Accel Partners, Microsoft Corp <MSFT.O> and Russian Internet investment firm Digital Sky Technologies among its investors — has never disclosed its revenue except to say it expects 70 percent growth this year.

Andreesen said Facebook will “do over $500 million,” this year.

Keep an eye on:

• Playboy’s former interim CEO jerry Kern steps dowon from its board. (PaidContent)
• Will iPods soon have built-in cameras? (TechCrunch)
• Advertising set for mild 2010 recovery-forecast (Reuters)

New colors, video camera, price cuts. Whatever. The Apple show belonged to Steve Jobs.

So how did he look? Rail thin, as you can see from this picture (see below or click here for a bunch more shots of the 54-year old chief executive). That shouldn’t come as a surprise, given he’s recovering from a liver transplant.

Even looking frail, however, his presence pumped up the crowd. “Steve Jobs making an appearance was definitely a pleasant surprise,” said Shaw Wu, an analyst with Kaufman Brothers. Another analyst, Brian Marshall of Broadpoint AmTech added, “I was surprised to see Steve. It’s great to see that he’s doing well.”

Here is a chronology of Jobs’ health issues:

2004:

August: Jobs announces he underwent successful surgery to remove a cancerous tumor from his pancreas. He says it was a rare form of pancreatic cancer called an islet cell neuroendocrine tumor.

2005:

June: Jobs mentions the cancer in a commencement address at Stanford University. “This was the closest I’ve been to facing death, and I hope it’s the closest I get for a few more decades,” he says.
Read the whole speech and see the video here.

2008:

June 9: Jobs appears dramatically thinner at an Apple iPhone event, touching off speculation that the cancer has returned. The company said later he was fighting a “common bug” and taking antibiotics. Apple called Jobs’ health a “private matter”.

July 26: The New York Times journalist Joe Nocera wrote in a column that he had spoken to Jobs about his health but that because the conversation was off record, he could not disclose what was said. “While his health problems amounted to a good deal more than ‘a common bug,’ they weren’t life-threatening and he doesn’t have a recurrence of cancer,” Nocera wrote.

Sept. 9: At an iPod product launch, Jobs jokes about his health by walking on stage in front of a giant screen that flashed “The reports of my death are greatly exaggerated” — a quotation borrowed from Mark Twain.

Oct. 3: A false Internet report that Jobs had suffered a heart attack briefly pushes Apple shares down 2 percent to a 17-month low. Apple quickly denied the report on iReport.com, a citizen journalist site owned by CNN.

Oct. 14: At a Mac product launch event, Jobs jokes again about his health. His blood pressure was 110 over 70 and he said, “And that’s all we’re going to be talking about Steve’s health today.”

Dec. 16: Apple said Jobs won’t deliver the keynote address at the Macworld trade show in January, reviving concerns about his health. Asked to explain the decision, spokesman Steve Dowling said it would be the last time Apple takes part in Macworld so “it doesn’t make sense for us to make a major investment in a trade show we’ll no longer be attending.”

Dec. 30: Apple shares fall as much as 2 percent after Gizmodo reported that Jobs health was “rapidly declining” and that was the reason why he canceled the Macworld keynote.

2009:

Jan. 5: Jobs says he has been losing weight throughout 2008 and his doctors think a hormone imbalance was “robbing” him of proteins. He says he has begun a “relatively simple and straightforward” treatment for his nutritional problem and that he will continue as CEO during recovery. “I will be the first one to step up and tell our board of directors if I can no longer continue to fulfill my duties as Apple’s CEO,” he says. Apple shares rise 5 percent.

Jan. 14: Jobs announces medical leave until the end of June, saying his health issues are “more complex” than originally thought. He hands day-to-day operations to Chief Operating Officer Tim Cook and says he plans to remain involved in major strategic decisions. Apple shares fall 10 percent in after-hours trading. Read his email to employees here.

Jan. 21: The U.S. Securities and Exchange Commission is examining Apple’s disclosures about Jobs to ensure investors were not mislead, Bloomberg reports.

June 8: Apple unveils new iPhone 3GS at its annual Worldwide Developer’s Conference but Jobs does not make an appearance.

June 20: The Wall Street Journal reports that Jobs had a liver transplant in Memphis, Tennessee about two months ago and he is expected to return to work later in June. Apple declines comment except to say it expects Jobs back at the end of the month.

June 22: Jobs is spotted at the Apple campus in Cupertino, California, underscoring expectations that he is either back at work or will return soon.

June 23: The Methodist University Hospital Transplant Institute confirms it performed a liver transplant on Jobs and says he is “recovering well and has an excellent prognosis.” The hospital does not give more details, saying the confirmation had come with Jobs’ permission.

June 29: Jobs returns from medical leave. An Apple spokesman says Jobs will be in the office a few days a week, and work from home the rest of the time.

Reuters is sending live updates via Twitter from the Apple Worldwide Developer’s Conference, scheduled to start at 10 am Pacific Time (1 pm Eastern). Read the updates below or follow us on Twitter.

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