InterAct Accessories said it would be “one of a few selected vendors” that would have permanent free-standing kiosk at new flagship Toys “R” Us store scheduled to open this fall in Times Sq., N.Y.C. Accessory maker said kiosk would exclusively showcase its entire GameShark product line and would feature “state-of-the-art multimedia display” providing GameShark demonstrations. InterAct said it also would feature GameShark product line in end cap displays at over 450 Toys “R” Us locations throughout U.S. GameShark Codecenter displays, located in R-Zone section, will spotlight latest GameShark products and be updated each quarter, InterAct said.

Clarification: Matsushita’s proposed 50 GB dual-layer recordable disc is 1.1 mm thick, composed of 1 mm thick substrate and 0.1 mm thick cover plate. Although disc is 0.1 mm thinner than standard DVD, Matsushita engineers say they anticipate no compatibility problems with existing laser optics and drives when dual-layer 50 GB disc is commercialized.

EchoStar had record-breaking 3rd quarter and is prepared for future regardless of whether merger with DirecTV takes place, CEO Charles Ergen told investors in conference call Tues. He was tight-lipped about discussions with DirecTV parent GM and offer to purchase Hughes Electronics unit, but said company was pushing forward to close deal: “We're serious” about acquisition, but we're well-positioned as a company regardless of the outcome. If it doesn’t happen, we're still a solid financial company.” Tough economic conditions that had hampered performance of other high- tech and satellite companies didn’t affect EchoStar because of financial “discipline,” Ergen said: “This is the kind of environment I personally like best. When everything is tight, the cream rises to the top. We are going to shine” because of our policies.

Online scam using DVD players is price of success for Apex Digital, whose U.S. market share in players is 2nd only to Sony’s. Apex spokesman told us changing variety of Web sites informed unsuspecting consumers that they had been selected to get free Apex DVD player as part of promotion in exchange for returning promotional questionnaire. E-mail asks recipient to qualify by remitting $19.70 for UPS shipping charges. Shipping fee is to be remitted electronically using online debit system such as CCNow or PayPal. Apex has posted warning about fraud on its Web site (www.apexdigitalinc.com) and asked victims to cancel any payments to perpetrators and send supporting documents to company for further investigation. Spokesman told us Apex had contacted UPS, remittance companies and FBI about fraud. But remittance companies told Apex it took 30 days to investigate claims and probes were back-burnered at FBI owing to terrorist activity.

Consumer groups and privacy advocates criticized FTC Tues. for failing to take action against Microsoft and its Passport and Windows XP products. In letter to FTC Chmn. Timothy Muris, several privacy and consumer advocates urged agency to reconsider 2 earlier complaints about Passport, which allows use of single password and user ID at all participating outlets. Letter included new assertions about “serious security lapses” in Microsoft systems that it said made information stored in Passport particularly vulnerable. Groups also said Microsoft’s XP operating system further integrated Passport into functions of computer. Junkbusters Pres. Jason Catlett said Microsoft’s marketing strategy for Passport was unfair and deceptive practice under FTC act. Microsoft tells users that they must participate in Passport to gain access to Internet, which isn’t true, Catlett said. Vincent Sampson of Assn. for Competitive Technology (ACT) said Microsoft’s MSN Internet service did require Passport participation but said Passport was very similar to registration required for AOL or any other ISP. ACT receives funding from Microsoft. Microsoft’s failure to secure information in Passport also is unfair trade practice, Catlett said. Sampson said charge was “stretch” and by such logic, all software products would have to be completely secure or be in violation of FTC act. Groups, which included Electronic Frontier Foundation, Electronic Privacy Information Center (EPIC), Consumer Action, Consumers Union, Privacy Rights Clearinghouse and others, said FTC should force Microsoft to “disgorge” information collected from Passport and prevent Microsoft from collecting data under false pretenses. FTC has taken no action since complaints were filed in July and Aug. FTC spokeswoman said agency didn’t announce potential or pending investigations.

Panasonic cut price of DLP-based rear-projection TV to $10,999 from $13,999 in effort to blunt impact of falling retail prices in competitive technologies such as plasma display panels (PDPs), National Mktg. Mgr. Jonas Tanebaum said. Panasonic brand 52W, which shipped year ago, will be continued into 2002 and there are no immediate plans to replace it, he said. Hitachi, Mitsubishi and Panasonic were first companies to introduce rear- projection TVs based on Texas Instruments’ (TI) DLP technology, but prices have hovered around $12,000-$15,000 as PDPs dropped below $10,000. Indeed, Panasonic cut price on 42W PDP to $7,000- $8,000, Tanebaum said. Price move also came as several vendors readied plans for DLP-based sets at $3,000-$5,000 and based on TI’s 2nd generation chip. “I'm not sure that the reduced price is the result of chipset,” Tanebaum said. “If I reduced the price of chipset to zero, I would still have to price the set at $5,000 at this point.”

International Game Developers Assn. (IGDA) opened “members profile” section at its Web site, www.igda.org/Community/Profiles/profiles.htm

First shipment of DVD Star Wars: Episode I The Phantom Menace has sold through 65% at tradition retail outlets in first week following N. American release, 20th Century Fox Home Entertainment said. Studio said that made movie fastest selling DVD to date, eclipsing this year’s leader The Mummy Returns and all-time leader The Gladiator. It didn’t divulge quantities of Star Wars DVD shipped or sold.

Electronic Arts said Tues. it would cut 200-250 positions at its EA.com online division -- 1/3 of staff. Impact of job cuts on content at EA.com Web site was unclear at our deadline. EA Pres. John Riccitiello said cuts were made “in order to achieve our goal of reaching profitability in FY ‘03 as committed earlier this year.” News came as Redwood City, Cal., game maker was holding media preview of new games at Studio 54 in N.Y.C.

Broadband video-on-demand using MPEG-4 DivX Open Video compression will be unveiled to news media 10 a.m.-noon Oct. 30 at Westin Bonaventure Hotel in L.A., developer DivXNetworks said -- www.divxnetworks.com.