At $12.34, Palm (PALM) is up well over seven percent as I write this, a nice gain that more than offset the four percent drop the company’s shares suffered last week. Clearly, the market is expecting a lot of the Pixi, and according to some analysts, it may get it. In a note to clients Friday, RBC analysts said they “expect positive consumer reception and healthy sell-through,” for the Pixi.

But not everyone agrees with RBC’s cheery assessment. Ashok Kumar, an analyst at Northeast Securities, has a much dimmer view of Palm’s prospects in the months ahead. He says his sell-through checks show a “substantial decline” in recent Pre sales.

“As a fading brand, carriers are likely to see better returns on their promotional and advertising dollars with other vendors,” Kumar writes. “WebOS has negligible smartphone OS share, 0.2 percent per Gartner estimates, and is unlikely to attract any meaningful third-party application support. Palm has bet the farm on webOS and there is a real possibility that they may not achieve critical mass.”

Perhaps. Perhaps not. We’ll see in the months ahead.

Under terms of the deal, EA (ERTS) will initially pay $300 million for the developer of such social games as Pet Society, Who Has the Biggest Brain and Restaurant City, including a $25 million retention agreement with Playfish employees. It will subsequently pay $100 million more if the company meets undisclosed profit targets.

By acquiring Playfish, EA is not only validating the social gaming market, but perhaps setting the valuation benchmark for Mafia Wars creators Zynga, which is expected to go public next year. It also tempers–to some extent, anyway–concerns that the lead-generation scam controversy that recently blew up around Zynga and Playfish might harm their perceived value in the market.

“This deal came about very quickly, but let me say that Playfish was never ‘up for sale’,” de Halleux told PaidContent. “We were focused on building our business, because we believed—and still do—that the game industry is changing. EA approached, and we realized that we could be in a better position to act as an agent of change, through them. We could build games and attract users on our own, but this deal accelerates that to a degree that wouldn’t have been possible.”

“Social gaming, with its emphasis on friends and community, is seeing tremendous growth and this is the right time to invest to strengthen our participation in this space,” said Barry Cottle, senior vice president and general manager of EA Interactive. “With the addition of proven expertise from Playfish, their broad consumer base and strong game brands, we’re moving ahead aggressively in our plans to lead in the category of cross-platform social entertainment.”

If there was ever a doubt that social networks might be a viable gaming platform, this acquisition pretty much obliterates it.

All of the new commercials are Christmas-themed and all feature Apple’s (AAPL) iPhone, though they are careful to leave it unscathed by Verizon’s criticism of AT&T (T). The standout among the three, this re-creation of the “Island of Misfit Toys” scene from the 1964 Rankin/Bass stop-motion animated Christmas television special, “Rudolph the Red-Nosed Reindeer.” Note that the conceit of the ad is that iPhone has been banished to the Island of Misfit Toys not because of its quality but because of of AT&T’s 3G network.

A pretty brilliant escalation of Verizon’s marketing battle with AT&T and one that suggests through its deference to the iPhone that there may be more to these Verizon iPhone rumors than previously thought.

Below, Verizon’s other two ads.

Neither filing provides much detail about either device beyond model number, though the keyboard described in one does appear to be smaller than the current model. That said, AppleInsider speculates that the mouse Apple (AAPL) is evidently working on will be significantly mightier than the current Mighty Mouse, scrapping the device’s rollerball in favor of a touch-sensitive housing and perhaps even an aluminum finish.

[IImage Credits: Engadget and MacBlogz]

And it’s not going to be getting one anytime soon, either, despite rumors that Microsoft is working on one and courting developers to port their iPhone apps over to it. Which is not to say that the company isn’t building an answer to Apple’s App Store–it is. Redmond is just building it for Windows Mobile, not Zune.

“We’re trying to get out of the business of building similar things in the company that don’t work together, and the Windows Mobile team is tackling the challenge of a mobile apps marketplace right now,” Zune marketing manager Brian Seitz told TechFlash. “We don’t necessarily line up perfectly with that, to take advantage of whatever ends up coming out of that from the Zune HD standpoint, but down the line if there’s a way that we can plug into what they’re doing, I’m sure we’ll look into whether that makes sense for the business.”

But by then, of course, it will be too late. Arguably, it’s too late already. As Apple gleefully noted during its annual music event last week, NPD pegs the company’s share of the portable media device market at nearly 74 percent. Meanwhile, Microsoft’s tops out at an estimated 1.1 percent.

Raising that share was already a Sisyphean task for Microsoft (MSFT), and it has only become more difficult now that Apple (AAPL) has introduced not just a new iPod nano with a built-in video camera and FM radio, but also a more inexpensive iPod touch.

Microsoft is pricing the 16GB Zune HD at $219.99 and the 32GB version at $289.99. But you can get a 32GB iPod touch for $299. And you can get an 8GB touch for $199. Now, granted, the touch offers only half the storage of the 16GB Zune HD, but it supports the iTunes App Store. And if you really want that extra 8GB, you can always buy an iPod nano, which shoots video and at $179.00, is $30 cheaper than the Zune HD.

Now, in the run-up to tomorrow’s invitation-only Apple event, the question is: Will Apple (AAPL) reach the bar? And with what? The answer, if the latest rumors prove true, depends on your feelings about iPods with cameras. Because according to reports, when Apple refreshes its iPod touch and iPod nano players, both will feature cameras–the nano’s for still images, the touch’s for photos and video.

We may also see a new price point for entry-level touch models, one intended to undermine Microsoft’s (MSFT) forthcoming multitouch Zune with HD display and to really juice App Store sales. Perhaps the 16GB touch at $199 and the 8GB at $150.

Beyond this, the event might also include the announcement of iTunes 9, said to include some sort of social networking element; “Cocktail,” a new music format that bundles full-length albums with art, video and other bells and whistles; and perhaps even Blu-ray support (no Beatles, though). And after that? Well, it’s tough to say. Apple’s never an easy read when it comes to product announcements, even when there’s evidence floating around that would seem to suggest otherwise.

So join us tomorrow for live coverage of Apple’s event to see if the above rumors prove true or if Apple’s got something else entirely up its sleeve. The event kicks off at 10 am PDT.

“Prior to joining Google, I set up a meeting on or about November 11, 2004 with Microsoft’s CEO Steve Ballmer to discuss my planned departure….At some point in the conversation Mr. Ballmer said: ‘Just tell me it’s not Google.’ I told him it was Google. At that point, Mr. Ballmer picked up a chair and threw it across the room hitting a table in his office.”

- Former Microsoft Distinguished Engineer Mark Lucovsky

“I’ve never thrown a chair in my life….By and large I made a commitment nine years ago that I was not going to curse. I know I’ve had one or two transgressions in nine years, but I made that commitment to myself. Is that one of them? I don’t recall.”
– Microsoft CEO Steve Ballmer

The rumors are true. Mark Lucovsky, the engineer whose departure from Microsoft (MSFT) allegedly sent CEO Steve Ballmer into a paroxysm of profanity and chair-tossing, has left Google (GOOG) for a new position at VMware (VMW), the company has confirmed.

Lucovsky, once a Microsoft Distinguished Engineer and a key architect of Windows and the company’s ill-starred Dot-Net strategy, was hired away by Google in 2004. Now, five years later, he has unceremoniously left the search sovereign for a senior engineer position at VMware. There, he’ll be reunited with Paul Maritz, president and CEO of VMware, who once served as Vice President of the Platform Strategy and Developer Group at Microsoft.

Seems that in the end, Palm (PALM) decided it would be folly not to match the $199 price of Apple’s (AAPL) iPhone, though according to CEO Ed Colligan, the Pre is far superior to it. Asked at the Consumer Electronics Show if Palm would try to take market share by undercutting the iPhone on price, Colligan told MediaMemo’s Peter Kafka, “Why would we do that when we have a significantly better product?”

Perhaps, because you must? As J.P. Morgan analyst Paul Coster noted this morning, “The $199 price point was absolutely necessary, in our view, to go head to head with RIM and Apple.”

Interestingly, this means the Pre will indeed ship just days before Apple’s Worldwide Developers Conference, the event at which the company is expected to announce its next-generation iPhone. Which suggests that perhaps, as I theorized yesterday, Palm is hoping the Pre will benefit from the iPhone halo. “By debuting so close to the presumed announcement of the iPhone, Palm would be ensuring that its new device is fresh in the minds of anyone mulling the purchase of Apple’s latest offering–or writing about it,” I wrote. “It would be parasitically riding on the back on the Apple media juggernaut. Question is, can it hang on without getting trampled?”

Whether that is a true vote of confidence remains to be seen. Certainly, Yahoo (YHOO) made similar remarks about Jerry Yang during its ill-starred negotiations with Microsoft (MSFT), and we all know how that worked out for him…

The first: Palm, as was rumored, is expanding its early-access program for Mojo, the WebOS SDK. The second: The company is introducing a new set of integrated cloud services, called Mojo Messaging Service, for developers. From the official announcement:

“The Mojo Messaging Service is an elegant, standards-based way to exchange information over the Internet. When new information is available, it is ‘published’ to the cloud and all interested parties who are subscribers are notified that new information is available. This will allow developers to push live content to their applications or services. The Mojo Messaging Service initially will have a limited feature set and service level that will evolve over time.”

And the third, as was also rumored: Developer MotionApps has written an emulator called Classic for the Pre that will allow users to run more than 30,000 PalmOS apps on the device. Also from the official announcement:

“Palm also announced that MotionApps (www.motionapps.com) is creating an emulator application that will allow most Palm OS applications to run on webOS devices. The application, called ‘Classic,’ will be available for purchase when the Palm Pre phone becomes available from Sprint in the first half of 2009, and gives users peace of mind as they transition to Palm’s new webOS.

Since Palm OS applications running in Classic won’t be able to leverage core webOS functionality, Palm is working with partners to ensure that popular Palm OS applications are made available on the webOS platform and are optimized to take advantage of everything it has to offer. In the meantime, the MotionApps Classic application will allow customers who have invested in the Palm OS platform to use Palm OS applications they’ve grown to love and depend upon on their new webOS devices.”

Mildly interesting announcements, I suppose. Still, frustrating for those waiting for news that really should have been provided by now. What of pricing and availability information for the Pre? When will we be given that?