Jennifer Vogel

Monday, Jan 18, 1999 8:00 PM UTC

21st Log: Ion Storm expos

By Jennifer Vogel

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E-mails are flying fast and furious these days over at Ion Storm, wherethe fallout of last week’s story in the Dallas Observer has started somemajor online “trash talk.” “Stormy Weather,” the current cover story of thisalternative weekly, is an exposi of the problems at Ion Storm — the gamingcompany helmed by famed Doom designer John Romero, and creator of themuch-hyped but overdue game Daikatana.

Once the toast of the gaming world, Ion Storm has run through nearly$26 million, produced one flop (Dominion), witnessed major internalpower struggles and lawsuits and botched several potential deals. To addinsult to injury, former CEO Mike Wilson (who was ousted in an office coup)recently wooed away a chunk of the Daikatana design team to his new company, Gathering of Developers.

The Observer story chronicles these struggles, painting anugly picture of inflated egos and bad decisions, and has nearly 2,000leaked internal e-mails to back up the story (Ion Storm has since slapped the Observer with a subpoena, demanding the returnof the e-mail).

Not surprisingly, the Observer article is being circulated andembellished by the online game gossip circuit. Fan-produced daily newssites like Blues News,PCBlitz and thefabulously catty BitchXGaming Insider have long been meticulously tracking the struggles atIon Storm and seem mildly thrilled to have the salacious details about theirgaming heroes’ dark sides.

While some fan sites have satisfied themselves with diatribesabout unpopular Ion Storm CEO Todd Porter, others are now distributing yet more internal e-mails andposting the court subpoenas. Even the more mainstream news sites are tracking the flame wars.

And Ion Storm executives are joining in the fray; althoughthey haven’t officially responded to the article, they’re responding to theonline gossip. Over at QuakeFinger, you can read the online posts from game designers at Ion Storm, who feel they’ve been unfairlyshafted. And at PCBlitz, a response from Romero: “Well, of coursewe’re not happy about the negative press and the fact of it is that anex-Ion employee was instrumental in setting it all up. Daikatana is doinggreat and the team is really positive and pumped, although this kind ofnews is disturbing.”

Wilson, the only Ion staffer to emerge from the article unscathed,sighs about the catty response from the online gamers. “These people livegames, live it online. And this is the insight into the world that theytalk about so much. I’m sure a lot of them look up to Ion Storm and expectgreat things, and they’re going to be a bit disappointed,” he says. “I hope the designers at Ion Storm keep their heads down and continue tomake the games. In the end if the games come out and are good, no one’sgoing to remember any of this.”
— Janelle Brown

SALON | Jan. 21, 1999

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Microsoft does it again

It’s the same story every financial quarter — Microsoft announces its profits and awed reporters note that the company has “exceeded analyst estimates” yet again. Microsoft’s stock price then surges, and Gates-lovers rest easy — the Redmond gang is still on top.

The quarter ending Dec. 31, Microsoft announced at the close of trading Tuesday, was no exception. Net profits were up — as measured against last year — a whopping 75 percent, to $1.8 billion. Never mind that ankle-biting Department of Justice, Microsoft is still rolling along.

Just how do they do it? In the Jan. 7 Seattle Weekly, inveterate Microsoft watcher Mike Romano detailed at least one nefarious possibility. It seems that late last fall, Microsoft made an out-of-court settlement with its own former chief of internal audits, Charlie Pancerzewski. According to court documents, reports Romano, after Pancerzewski accused the company of distorting its profit figures to show steady net revenue growth every quarter, he received his first ever unsatisfactory job evaluation, and shortly thereafter was forced to resign. Pancerzewski and Microsoft aren’t talking now, but anyone interested in a revealing look at how Microsoft may do business is strongly encouraged to read Romano’s story.
– Andrew Leonard

SALON | Jan. 20, 1999

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Ch-ch-ch-ch-changes: Bowie loves MP3

Record companies have been quick to condemn MP3, the digital music format, as taking away the “artist’s rights” to protect his music. But at least one famous musician is saying that that argument is hogwash.

David Bowie, a musical pioneer on theWeb and proprietor of the site Bowieart, last week offered a defense of MP3 in theBritish newspaper the Guardian. Besides the potential of MP3 for newdistribution and delivery systems, Bowie said, it could change the entireidea of what music is — and that isn’t so bad.

“A few days ago a kid downloaded one of my songs from my Web site. Here-recorded it at home, changing the bits that he didn’t like and then putup his version on his own site. The new version is written his way, withchanges to the melodies and some of the lyrics and it is available as anMP3. It is unbelievable. If he can do that, imagine what can happen in thefuture,” Bowie said. “Of course a lot of artists are absolutelyterrified by the idea, but I love it because I love process. To me, the endresult is not nearly as interesting as the process of getting involved in something.”

Bowie’s record label may not approve of his public endorsement of theenemy, but he doesn’t seem to care. As he writes, “You don’t have to staywith a record company forever. I get bored of those interminablesituations.”
— JanelleBrown

SALON | Jan. 19, 1999

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Y2K problems? Call out the National Guard

Who says states aren’t adequately preparing for the year 2000 turnover?Washington state recently announced that potential infrastructure breakdownsand related lawlessness will be met with at least 2,000 armed NationalGuardsmen and women, who will be on duty on and after New Year’s Eve 1999.

It’s just a precaution, reassures Washington Guard public affairs officerMaj. Philip Logan: “We have power generation capabilities, and the ability tomove people from one point to another in helicopters and trucks. We will beready to do whatever the governor asks us to, or the president.”

Government agencies, businesses and the public have been playing catch-upever since the severity of the Y2K problem became apparent. The bleak predictions haven’t been wasted on Wisconsin state Rep. Sheryl Albers,who is poised to introduce a bill that does Washington’s plan one better bymobilizing Wisconsin’s National Guard and allowing soldiers to act withoutthe governor’s approval.

Albers — who asked, “Why do all you media peoplejust want to focus on the National Guard piece” of her bill — says thesweeping proposal also encourages information-sharing between companies andsets up a public education campaign. But if preparation doesn’t work,the bill ensures that there will be plenty of military personnel around toclean up the mess. “This allows [our general] to decide whether to put[troops] on standby. We only have so many guardsmen, and if half of them arevacationing in Florida, that won’t do us much good. So this gives him theopportunity to say that you will report on Dec. 26 or 27.”

Lt. Col. Tim Donovan, public affairs officer for the Wisconsin Guard, saysdetails of the mobilization are still in the discussion phase. But, inconcrete terms, it has at its disposal 10,000 “trained anddisciplined” troops, 30 helicopters and “lots of civil engineeringequipment like bulldozers and other vehicles.” The Washington Guard issimilarly fortified with 8,600 troops, 580 trucks, 350 Humvee all-terrainvehicles and 25 helicopters. But what if an officer tries to start ahelicopter only to find it has been rendered immobile by Y2K? Not to worry,says Logan. “Testing is going on as we speak and will be done by May.”

Logan adds that all states will eventually develop plans similar to those inWashington and Wisconsin, which likely won’t sit well with the public.Visions of armed guards taking to the streets are already causing an uproaramong many on Y2K Web sites and newsgroups and on radio programs inmilitia-heavy Washington state. “People are concerned that armed guardsmenwill be taking their weapons away from them,” admits Logan. “But that is notour intent and not our job.”

Wednesday, Oct 14, 1998 7:00 PM UTC

Getting to know all about you

Getting to know all about you: By Jennifer Vogel. Attention, shoppers -- what you tell supermarket clubs may be used against you.

By Jennifer Vogel

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When Robert Rivera signed up for a Vons grocery store card, he had no idea that detailed records of his shopping habits would one day be used against him. But that’s exactly what he says happened.

Rivera was shopping at a Los Angeles Vons store two years ago when he slipped on a slick of spilled yogurt, causing him to fall and shatter his kneecap. Unable to drive, let alone work, he sued the store for damages. During the negotiations, says 59-year-old Rivera, a mediator played hardball in encouraging him to settle. “He came in and said, ‘They want to settle because they have information that you buy a lot of liquor,’” he recalls. As Rivera tells it, the mediator indicated that the store had accessed his shopping records and would use them against him in court.

Rivera didn’t settle the case, which is due for trial on Oct. 19 — instead, he went to the local media. And Vons, which now says it never peeked at the records or intended to use them in court, backed down from its threat.

Grocery store “club cards” have become commonplace in supermarkets across the country — by last count, nearly a quarter had implemented such programs, with 40 percent planning to follow suit in the near future. In the stores that offer them, using a card is usually the only way to earn discounts on groceries — even items that used to be automatically marked down without coupons.

Signing up is a tempting proposition, especially for those on a tight budget. Literature for Safeway, which has been offering club cards for over a year, makes coupon cutting out to be heavy labor and guarantees “instant” and substantial savings, all with the convenience of a little plastic card swiped at the point of purchase. Why, you may even save on items you didn’t realize were on sale! “It’s never been this easy,” promises Safeway.

The problem is, in order to get those easy savings, customers have to turn over a whole host of personal information. Safeway requests a full name, home address, birth date and home phone number (used to access the account should you leave your card at home). In tiny little print, the application explains why: All purchases — of toilet paper, bacon, medication, video rentals, magazines and anything else that passes through the scanner — will be automatically recorded in a database and associated with each shopper’s name and address.

Safeway and other stores intend to use this information to track regional buying habits and to build customer profiles, so they can replace scattershot newspaper coupons with tailored mailings sent directly to card members. “Say, Mrs. Johnson, we’ve noticed that you’ve been buying baby food lately. You must have a baby in the house. Here are some other baby-related savings you might enjoy.” Or the more menacing, “So, you’ve been buying large amounts of painkillers, Mr. Jones. Would you like to try another, extra-strength brand?”

Supermarkets need programs like these, claim marketing gurus, to compete with cheaper warehouse retailers like the Wal-Mart-owned Sam’s Club. “The supermarket industry is amazingly competitive,” says Carole Throssell, director of media relations for the Food Marketing Institute. “Anything the store can do to attract and keep customers, the store is going to consider.”

Some companies are marrying the cards with other functions, like check cashing, intertwining bank and purchasing information. Other programs link whole groups of retailers — a bank in Cincinnati recently started a card program where purchases at a host of local stores are recorded into a central database. Customers who use the card receive discounts and earn points that can be spent at participating retailers.

If it doesn’t bother you that businesses should have such comprehensive and personal records of your habits and preferences, consider that Maryland-based Giant Food Inc. was caught earlier this year providing its customers’ prescription purchasing information — medical records — to marketers. The grocery store stopped releasing the records after the public found out about it and complained mightily. But companies sell or give away information on customers all the time (how do you think you get all that junk mail?) and grocery store records could, and undoubtedly will, be used in any number of ways.

Beth Givens, director of the San Diego-based Privacy Rights Clearinghouse, imagines these potential worst-case scenarios: “Insurance companies use them to look for people who smoke, drink alcohol, take over-the-counter medications that indicate serious health problems or eat unhealthy foods. Employers could use them to look for people with unhealthy lifestyles.” They could also be subpoenaed by police or attorneys trying to build cases, as exemplified by Kenneth Starr’s subpoena of bookstore records in the Monica Lewinsky investigation. (A judge ordered the records turned over, but Lewinsky released them herself before the store had to comply.)

Most supermarkets, including Safeway and Vons, insist that they’re sensitive to privacy issues and won’t sell or release personally identifying information to other companies. But, as Givens notes, “There is no law that prevents this sort of stuff from happening.” And there’s no law to stop stores from using the information for their own benefit in lawsuits, as allegedly happened in Rivera’s case.

It seems the only way to get supermarket discounts these days without becoming part of a tell-all database is to put a fake name and phone number on the club card application, or fill it out anonymously. “We’ve had customers request the ability to change their name to ‘Safeway Customer,’” admits Debra Lambert, Safeway’s corporate director of public affairs. “We do allow that.”

Or, you can check in at the “No Cards” Web site for tips on letter-writing campaigns and card program sabotage (one letter writer suggests filling out a new card every time you go through the checkout line, costing the store extra bucks in plastic and data-management fees). The site, started by Zelda Gordon and Dale Berlin, two shoppers in New Mexico, has a motto: “A FREE PEOPLE DOES NOT SHOW IDENTITY PAPERS TO BUY BREAD.” It was started after Gordon wrote a letter to the editor of a local newspaper, complaining about the two-tier shopping system card programs create. “We sort of call it a consumer movement,” she says. “This is a way of bribing us to surrender demographic information, which is obviously very valuable at this point.”

Too bad for Robert Rivera that he didn’t stumble upon the No Cards site before cheerfully filling out his Vons card application. Rivera, who hasn’t been able to return to his job as a motion picture security guard since the accident, is currently supported by his son. He mainly stays home in his East Los Angeles neighborhood, nursing his knee and wondering how he’ll purchase decent Christmas presents for his wife.

“My wife and I used to take vacations,” he says. “We used to have money and I had a good job. But now I’m sitting here building a slingshot to scare away some cats. I’d just say, be careful what you sign because they will know you from head to toe. And they could use it against you.”

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