tv Press Here NBC October 30, 2011 9:00am-9:30am PDT
hackers take their place along armys as a way for nation stites stay influence and intimidation. sim an tex weighs in as a new virus is detected, and later "fortune's" 40 under 40 and the explosive return of the video game industry. our reporters, fortune jp and john forte of cnbc this week "press: here." good morning, everyone. i'm scott mcgrew. the security world is dealing
with what one news agency is called the hydrogen bomb of cyber warfare. interesting they should choose a nuclear metaphor. the viruses is called do-q and experts say it appears to be written by the same shadowing organization that wrote the stucks net worm. a digital code used to attack the computers controlling iran's nuclear industry. it's been said, possibly the israelis or even the united states may have been behind that stuck's net attack. a far cry from the annoying day-to-day goblins that hackers use to attack personal computers. symantec the global security company was the first to the publicize the existence of this
new threat. one of self that hit major several national assets. google and several defense contractors have repeatedly been attacked by agencies of a foreign country. google says it's likely china. enrique salem is head of symantec, the largest security software company in the world and he also sits on president obama's management advisory board, which advises the federal got best business practices. joined by john forte of cnbc. and fortune. the security world has moved from that annoying dmid somebody's basement who is up to no good to perhaps entire foreign governments on the attack. >> i think it's clear that the different people who are now involved in attacks have moved from the kid trying to show off for his friends to businesses and people trying to make money to government seeing it as the next form of warfare. >> so can i ask you, are you
personally knowledgeable that -- >> i am dmafd foreign countries have done more than just attacked. they have mapped our critical infrastructure. so they have gone out and understood where all of the key parts of our infrastructure that run this country. that is a good understanding of it and they have absolutely attacked it. >> what country? >> countries from eastern europe to asia. >> you're being deliberately vague. >> china and russia. >> welcome. okay don't be deliberately vague then. go ahead, john. >> it seems like fair, game, right? this is what you do in warfare. you understand geographic targets and now you understand digital and industrial targets but a question about the impcations of that. does that mean that governments need to protect infrastructure in different ways, and company like symantec play any role in that? >> it's a caseta you need to
take a different approach to protection. you were worried about the insider. worried about someone who could come in and steal things from them. 70%, 80% of that threat was a person who had those credentials and take information. now you have to move your mindset and say it's not just the person who could attack us, it's a foreign country or a foreign attacker. you absolutely have a situation where a third of the networks are in the government's hands, two-thirds are in the public. you know corporate hands. so you've got to think how do you protect all of that. is the government doing enough? are companies doing enough? when is the attack going to happen? we like to call it an early warning system. how do you protect yourself. how do you clean up when you get attacked because everybody is going to get attacked and then what are the countermeasures? you can't fly a plane over and drop a bomb on someone now. now you're really saying is someone website or some server
in eastern europe is coming right as you, how do you knock it offline? and while we don't do step four you better have good relationships government agencies and law enforcement in the case that you need to. >> is there a political side to this that you didn't expect, after all? if you're going to kpouz country "x" of attacking the united states and you are a private company making that acquisition because your data, that's what it says. that's what's happened. that's different -- that's a political arena. >> well, look, we definitely look at the world and say our job is to -- the tools to protect themselves. whether it's an individual or a government. we usually don't make political commentary about who is right or who is wrong, but we're going to try to help people protect themselves. >> and it's harder to do now, right? because frankly the tools very good in using in the past don't work anymore for this type of attack. now you have to look at how data is flowing. you have to be able to do
analysis to predict that something might happen versus just you know have a fix for some bug that's already out there. >> you're exactly right because 75% of the attacks now hit less than 50 computers. see before it was, the attacks would hit millions of computers. that was actually the game. the game was how can you get on the most number of computers as quickly as possible. now the bad guys do, they can come after an individual inside of a corporation. the biggest targets are executives at companies because there' there's so much information about them. bad piece of mal code, mal wear that will get on onto their computer and now the bad guys are inside. >> it's a. >> a-- it's not a sniper. it's a bomb. >> that is a spy plane to continue the metaphor. that's a spy plane overhead look at our plans and our battle fields, et cetera. at what point does something
become so provocative it becomes offensive? >> i think at the end of the day you are absolutely a situation that it is espionage. in is a new form of attack. you mentioned the d-q. >> the new one. >> which by the way when stuck's net came out, we said stucks lethal, it's moving from espionage to sabotage and now in a situation that there will be people who follow and use the the same approaches to do same malicious things. d-q same finger print but it didn't knock anything out. what happened it did is they planted the seed so they could do reconnaissance. >> who is they? >> a nation state actor. >> probably not same one, right? >> john, explain a zero day attack. >> kind of the first thyme you had seen a certain attack happen and what wases remarkable about it is so many zero-day attacks used at once. it was this cocktail that would have taken years to create.
>> there was talk. the reason people associated in those two countries. >> some of the language used in the code too was -- >> indicative. >> can you protect -- does symantec -- i guess here is the question. does your equipment -- your software protect against attacks that americans would make? in other words, if you are a defense kunchs i would come and say, come here just for a second. i want to talk to your missiles and the thing you are making is imperviousmisms. we have a problem. >> i think everybody has a problem with the quality of it because it's getting better every day and there is nothing that says a foreign country couldn't use our technology to protect themselves against attacks from other foreign countries. because we are a u.s. entity. we are governed by a series of trade compliance rules. >> are you a munition? >> actually parts of our
technology are classified as a munition. >> okay so you can't sell to what countries, first. >> syria, iraq are on the prohibitive list right now. >> huh. well jump in, j.p. >> i'm really curious to hear,ee talked about the international aspect. the security from a cyber perspective. we're seeing movement towards mobility. a lot of people are using apps. how secure is our data on an iphone with its app with its credit card data and so forth is? is it as vulnerable as information online for instance? >> it hasn't become a big of a target yet. 1.4 billion pcs. what happened is that's the target. nothing that makes a mobile device more secure than a pc. it just hasn't become a target. >> are you saying that an iphone it's not the security of the ios, it's just the sheer numbers
because now these days -- >> so they're going after where they feel they can get in and already understood. what matters is what you're going to go do. you go on that phone or android or whatever it is and you go out on the internet. you were the target, not necessarily device. so the phone itself isn't going to protect your identity when you go log in to a site. i do this all of the time. i show people -- i've got this list of the ten most popular lists on cell phones. 45% are on that list. >> what's the top one? >> one, one, one, one, one. >> one, two, three, four and five. >> absolutely. so what happens is the thing that people don't realize is it's not the device that's the target. it's you and your data. so there is nothing that will make it more secure. one last question before we let you go and that is the app
application. you touched on that to some degree. does putting something inside of an app make it more secure because it's living in its own walled garden or do i just don't understand how apps are written? >> apps are a way of packaging something up so you potentially don't have to have lots of pieces all over the place. >> opened to viruses, et cetera. >> apps have vulnerabilities. ask yourself is, is this app that i'm now putting on my computer and now over 300,000 in the apple app store or in the market, how do you know those are secure? yeah not the store but app itself. companies will try to certify them. nothing that guarantees that they're secure. enrique salem is head of symantec. appreciate you being with us. up next the internet industry comes roaring back and we'll be back in just a minute. more and more energy.g the world needs more energy.
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welcome back to "press: here." this fall will be historic for the video game industry. a number of new major releases, almost certainly will set records. a game called "battle field iii" hits stores this past tuesday. the new big release "call of duty modern warfare iii." >> reporter: if you know nothing about video games, know this, "call of duty" as a franchise is a blockbuster. the last time a version of this game was released, it earned $650 million in its first weekend. by contrast, the best box office opening in history "harry potter and the deathly hallows" earned less than a third of that and another "call of duty" on the way. >> enjoy. >> reporter: that's going to be a challenge for french video game company called ubi soft.
programf new games that use microsoft's connect system allowing people to play without a controller. and a game called "rock smith" that teaches you how to play guitar, a real guitar. tony key vice president of ubi soft, the company made a little less than a billion euros last calendar year. offices in 26 companies. joined by john forte of cnbc. my apologies. you do not make the two most popular gameses that are going to come out this fall. >> thank you. >> yeah. not only popular they're blockbusters. >> uh-huh. >> how do you compete against that? a kid's only got 60 bucks so many times. >> right, well hopefully we're getting beyond the kids with the holiday, because for us, they use the word counterprogramming
there but that's definitely what we have going on right now. we're going to sell somewhere between 8 million to 10 million dance gameses this year. we also have something called assassins creed. that's one of our big brands which is based around a historical -- more of a pregun -- so we have a lot of things going on that aren't "battlefield" or "call of duty" but those products definitely bring a lot of excitement to the industry so a positive side to that. >> that was actually going to be my second question. a time in which people are wandering off and playing facebook and doing other things, to some degree bringing folks back to the video game industry is not a bad thing. >> absolutely. there's always something hot in entertainment. people want to know what is the hottest next thing in entertainment? we have to be on our toes about that. we have to be the hot thing and a few years ago it was the wii and now it's facebook, but
things like "battle field" and "call of duty" absolutely bring a lot of attention and excitement back to space. we have something huge called "just dance three." >> i am traditional hardcore gamer. i grew up playing your final fantasies. spent way too much time those. played "halo" as well now but i'm playing angry birds, dare i say. how do you compete for the time, attention, the money that i may be putting into goods as opposed to traditional soft wear? >> well, first of all we need to make some of those too, and so we are looking at that space. we look at what happened on facebook. we think okay so here's a plat nearly is a new experience for a lot of people but it doesn't necessarily replace the
battlefields and the assassins creeds and the call of duties but it is another way to spend time a game, if you're more of a casual player so i don't know if you would still be a core gamer whether facebook existed or not. you know that's the point which there's still a lot of those guys out there and they want that $50 million experience on their console. >> aren't blockbuster games part of what is wrong with the industry? i mean all of this money gets spent on them. huge bet. sometimes they work. sometimes they don't. part of what seems to be going to with social gaming is a little bit smaller bets, more analytics figuring out what is working and not in a game and changing it overtime, isn't that where the business is going. >> no that's where a portion of the business is going for sure, and i do think there is an opportunity for these big blockbuster games to also adapt some of those models. i don't know if i want to start giving the game away up-front and then asking for money later but what i want to do is raise my rpu right.
average internet user go up. even though i got them $60 to buy "assassin's creed" and now i want to sell them more stuff. in the future generations of these home consoles too is the ability to have those microtransactions in the game even though i already bought it. now i want another sword. what that i want to make 60 bucks on my name? yeah there's no reason why i can't get $100 out of this guy because if i were you ten years ago when you were -- i'm going to sell you some add-on packs. more content. i'm going to sell you some more weapons. sell you things that will give you a competitive advantage if you're playing multiplayer games and by the way i'm going to sell you an apopyour iphone, ipgoing to sell you a facebook -- stuff on facebook or around this brand and this launch. >> but, i mean the
microtransaction's talking about additional add-ons and so forth. do those cost you know, compensate for escalating budgets that people are spending on these big games? >> not yet. not yet. we're getting there. these model, things that are still in development. for us the whole microtransaction model is still something that we're all learning to address. you know we didn't invent it and we're ashamed of that maybe and wish we did but we are compensating for that and we have a ton of people working on the idea that we need to add more. we need to add more service, more ways to collect money. >> how micro is micro? sometimes spend $9.95 on a mat pack or something but can you get down to the 50 cents for a dagger sort of an idea. >> sure enough. it doesn't cost you a lot of money to dlaet stuff, it's really about the service that can support it and we are working on that just like every other traditional video game
publisher. you know one of the things that happened is that we got caught off guard with all of this social network, with friends, droid games. it's probably the first time that i can -- it is first time that i can remember it a really core value of gaming, this social aspect of -- these social features that came live on facebook wasn't created by a traditional video game publisher. so we're a little annoyed on that but we've got a chip on our shoulder but ubisoft we've got 6,000 people making games and among the most creative gamemaker in the world and they will not just sit by and watching that happen. we are building those same features into your traditional video game's space. soon it will be a seamless part of every video game, at social aspects, the microtransactions, it's all coming. and the fact that the game costs $60 up front doesn't change anything. it gives us more opportunities. >> we have about a minute left.
okay, my business reporter put on looking at zingas s-1 it seems like the business model isn't that different in terms of the marketing line. in terms of profits and costs it's very similar, the models are. >> uh-huh. well, the fact is that you have to make an experience that people want and "call of duty" and "assassin's creed" are very, very profitable brands for us. what we have to stop doing is making games that don't sell. and that's really what has happened over the last couple of years is that the bottom 10%, you know those thanks we used to be able to sell, and also get away with selling, they don't exist anymore. they don't sell, not at retail at least, because of things like facebook and the mobile apps that are good quality, low-cost experiences for consumers. we have to innovate. >> tony key is the vice
welcome back to "press: here." "fortune" has its 40 under 40 issue. i've been lobbying them to do 40 under 45 so possibly i could be included but not so much. tell us who is in here. marissa myer who was on the show, i think last week or the week before. why pick her? >> well she was the first female engineer at google. sort of a grizzled veteran. >> no you can't. you can't ever call a woman a grizzled veteran. >> but she is one of the oldest employees there and certainly worked her way up and now she's vp and she's done much for the company. not the least of which includes spearheading the acquisition of zigot earlier so she's married in the inclusion. we also have daniel ek the ceo
and founder of spotify. >> why it is important? >> it's certainly not the first its kind in terms of being a music service but certainty most accessible in the sense that before other services sort of copied or caught onto it offered free listenerses particularly in the uk, launched in the u.s. back in july i believe. and what's great about it is, you sign up, it's free and you can listen to over 13 million, 14 million songs -- it's a wide variety of music. >> it's like pandora but controllable almost. >> exactly, exactly. and if you choose to pony up you can also download a mobile app which is great to take with you on the, go if you can download, maybe about 2,000 tracks onto your mobile phone as well so you don't have to pay per track. pay a flat monthly fee and that's proven to reson wait a lot of people so far.
>> john fortt, and when you covered it for cnbc, a certain glamour being under 40. >> true. >> nobody does the fort -- the 40 over 40. >> that's the next issue. >> absolutely. >> no, it's it's youth thing is interesting particularly now when you've got mark zuckerberg out there. you've got daniel ek, who i talked to. i think that the jury is still out on whether in model is good for music. >> zplooet ify's a model. >> and i guess facebook too since they're very much working together to popularize this. but there's kind of this youth tech movement going on, which is terribly interesting p steve jobs in the biography we see was mentoring many of these guys who are coming up. >> you are in this steve jobs biography. did you know -- at what point did you find out, oh my god i'm in the steve jobs' biography. >> i got an e-mail from cnbc
saying did you than you're in the steve jobs' bio? and i went oh no because i immediately that was stupid things that i had said about apple. >> we have a clip. roll it now is. >> thankfully they picked -- walter isakson picked something smart that i had said and i got to show it to my kids. >> what was that. >> yeah we have a minute left. >> i was defending closed platforms. they can be very effective, very beautiful, leap ahead of the open competition and that's what the ipad has done. >> fantastic. the biography about john fortt, steve jobs on store shelves now. "press: here" will be back in just a minute. energy. the world needs more energy. where's it going to come from? ♪ that's why right here, in australia, chevron is building one of the biggest natural gas projects in the world. enough power for a city the size of singapore for 50 years. what's it going to do to the planet?