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Al Qaeda's Number Two Killed in Pakistan; Microsoft Unveils Xbox 360 Sync App; Federer, Djokovic Book Ticket to Semifinals; "Comfort Women" Exhibit Canceled Without Explanation by Nikon Galleries

Aired June 6, 2012 - 08:00:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


KRISTIE LU STOUT, HOST: I'm Kristie Lu Stout in Hong Kong. Welcome to NEWS STREAM where news and technology meet. And we begin with reports of the death of al Qaeda's number two. Now the U.S. says a drone strike has dealt a major blow to the terror network.

Now Syrian rebel snipers take on government forces in Homs, but can their guns be any match for armored vehicles?

And they were used as sex slaves for Japanese soldiers during World War II, but now a photo exhibition of the comfort women is going dark.

Now he was part of al Qaeda's inner circle in charge of operations and masterminding attacks. A front man for the terrorist network frequently posting videos on the internet. And now U.S. officials say Abu Yahya al- Libi was killed in a drone strike in Pakistan. Barbara Starr reports on what the death of its number two means for al Qaeda.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Abu Yahya al-Libi was one of the most important al Qaeda leaders, often appearing in videos but not a front line fighter himself.

PAUL CRUICKSHANK, CNN TERRORISM ANALYST: This is an individual who can recruit for al Qaeda by calling its jihad a holy war, an obligation for its followers to join in. And because he has this religious knowledge he's been able to justify al Qaeda's campaign of global terrorism.

STARR: al-Libi was killed in Pakistan by a CIA drone strike in a remote border region, one of at least seven strikes in just the last two weeks. Overall, the number of drone strikes has dropped. 22 strikes so far this year compared to 32 for the same time period last year.

Still, al-Libi was someone the U.S. wanted to get.

CRUICKSHANK: He's also got this Hollywood story, because in 2005 he escaped from Bagram Air Force Base in Afghanistan. He cut through some wire to get out of the compound there.

STARR: U.S. officials say his killing is a crucial blow to al Qaeda.

JAY CARNEY, WHITE HOUSE SPOKESMAN: He was very much an operational leader, general manager of al Qaeda with a range of experience that is hard to replicate.

CAPTAIN JOHN KIRBY, PENTAGON SPOKESMAN: This is a very dangerous individual. And for him to no longer be walking the Earth would be a good thing for everybody, make the leadership development program of al Qaeda has had some health risks and hazards we think are good.

STARR: Those drone strikes remain as controversial as ever inside Pakistan. But there's no indication the U.S. is going to stop them any time soon. And no indication how the U.S. knows it got al-Libi.

Barbara Starr, CNN, the Pentagon.

(END VIDEOTAPE)

LU STOUT: Now drone attacks have eliminated several other al Qaeda militants. So let's take a look at some of them. Now August 22, 2011 Atiyah Abd al-Rahman was killed in the North Waziristan tribal area of Pakistan. He was said to be trusted by Osama bin Laden to oversee al Qaeda's daily operations.

Now September 30, 2011 Yemeni-American cleric Anwar al-Awlaki was killed in Yemen. Now he was known for his English language internet sermons calling for jihad.

And May 12 of this year -- now Fahd al Quso was one of the FBI's 10 most wanted terrorists. He was wanted for his role on the attack on the USS Cole 12 years ago. He was also killed in Yemen.

Now U.S. President Barack Obama's administration has defended the use of drones to target suspected terrorists, calling their use in full accordance with the law. As Brian Todd reports, it's aprt of President Obama's approach to dealing with conflicts.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT: A drone strike takes out al Qaeda's number two man, an ambitious targeted hit, the very symbol of how President Obama has shocked critics and supporters alike with his style of combat leadership.

VALI NASR, SCHOOL OF ADVANCED INTERNATIONAL STUDIES: Everybody thought that he's just withdrawing troops from Afghanistan and Iraq and that this is sort of an anti-war president that wants no military engagement in the region.

TODD: Vali Nasr served under President Obama at the State Department. His comment mirror the tack of a new book from New York Times correspondent David Sanger who writes about the president's surprising willingness to order unilateral focused strikes against America's enemies.

As Sanger points out, few observers, if any, expected Barack Obama to move from a leader who early on won the Nobel Peace Prize and spoke of ending hostilities.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: We do not want to keep our troops in Afghanistan.

TODD: To becoming a president who ordered the bin Laden raid, escalated drone strikes. And, as Sanger writes, stepped up cyber attacks against Iran's nuclear program.

Why does he approach conflicts this way? What does it say about his view of America's role in the world?

NASR: Well, I think the president still understands that one of his primary duties is protection of the homeland. I think he understands that there are still threats out there from either states like Iran or North Korea as well as still threats from al Qaeda. And I think his point came home to him with the Christmas bomber, with the Times Square failed attempt at bombing.

TODD: Sanger also writes of a president's surprisingly hands on during the cyber ops against Iran, often meeting in the situation room to assess damage. Perhaps not since Lyndon Johnson had sat in the same room more than four decades before picking bombing targets in North Vietnam had a president of the United States been so intimately involved in the step by step escalation of an attack on a foreign nation's infrastructure.

None of it has prevented his opponents from saying Mr. Obama still hasn't been forceful enough.

MITT ROMNEY, REPUBLICAN U.S. PRESIDENTIAL CANDIDATE: If you do not want America to be the strongest nation on Earth, I'm not your president. You have that president today.

TODD: Vali Nasr himself warns of the downside of this kind of tactical leadership from the president. He says targeted killings, drone strikes work in the short-term, but in the long run they won't address America's interests. You can't build relationships or shape politics in the Middle East through drone strikes, he says. But you can build anti- Americanism.

Brian Todd, CNN, Washington.

(END VIDEOTAPE)

LU STOUT: Now there has been more violence in Afghanistan. First overnight a NATO airstrike killed 18 people in Logar province (ph) and some of the victims were women or children.

And then in another attack two suicide bombers, one of them on a motorcycle, struck a busy market in Kandahar. At least 21 people were killed, at least 50 wounded. Now the market is close to an airfield where NATO troops are based.

Now Syrian President Bashar al-Assad has appointed a new prime minister. His name is Riad Hijab. He has recently served as the country's agriculture minister. And meanwhile the government says it will allow a UN staff into the country to deliver humanitarian aid. And news comes as Damascus is expelling diplomats from 11 countries.

Now opposition forces say several Damascus suburbs and the city of Homs are now under intense shelling. Also hearing reports of clashes on the country's border with Lebanon.

Now CNN's Arwa Damon is following developments from Beirut and joins us now. And Arwa, you have exclusive video from the front line inside Syria.

ARWA DAMON, CNN INTERNATIONAL CORRESPONDENT: That's right, Kristie. And this video that we're about to show you is really just an example of how intense clashes have become between the Free Syrian Army and those government forces. And we've also been seeing since the Free Syrian Army said that it was no longer adhering to the ceasefire that's part of the Kofi Annan six point plan an increase in casualties by government troops. Just take a look at this footage.

(BEGIN VIDEOTAPE)

DAMON: Abu al-Badr (ph) peers out from his makeshift battle position and spots his target.

"Give me the radio. Give me the radio," he calls out as a hail of bullets from Syrian government forces drowns out his orders.

Movement is spotted to the left.

"There it is. There it is," someone shouts.

As the armored personnel carrier moves back into sight, a voice cries out.

"Look, Kofi Annan," he shouts mocking the idea of a ceasefire.

These rebels say they are protecting residents of a Homs neighborhood called Khaidiyah (ph) from an assault by regime forces. Cairo Street is now the front line, separating the rebel stronghold from the neighborhood of al-Baiyaga (ph) held by the government.

Once a bustling middle class shopping area, the street is now in ruins. The local rebel commander Abu Hadid (ph) crawls through holes fighters smashed between buildings to take up position. There are government forces on a balcony across the road. The 32-year-old peers down the scope.

"Is it where the red and blue towels are," he asks?

"Affirmative."

Khaidiyah (ph) seemed deserted, but the fighters of the Free Syrian Army say it's not just about defending residents still here, but the property of those that have fled. They said Assad loyalists would steal or destroy anything they can get their hands on.

At another position along the street, Hazim (ph) is on high alert.

"There's movement. Be ready. At my signal," he says calmly.

Syrian government forces are fanning out across the road.

"There's movement in your direction," the call on the radio warns.

"I am ready," Hazim (ph) responds.

The 30-year-old machine gunner fires off two rounds, takes aim again and his weapon jams. Cursing under his breath he clears it and aims again.

"We can't just have a one sided ceasefire," he says indignantly. They can't expect us to come under fire and not respond.

Some of these men are army defectors, but a growing number of civilians are joining the arms struggle. A 26-year-old Abu Wasi (ph). He used to attend protests, but that all changed.

"My brother defected from the army because he refused orders to kill innocent civilians and demonstrators," he says.

His brother was killed defending this very neighborhood last year.

"This is his gun," Abu Wasi (ph) says, gesturing to his AK-47.

But it's hardly a match for the heavy weapons that government forces have.

Abu Wasi (ph) and many like him say they will fight until the bitter end, even if it means the uprising becomes a civil war.

(END VIDEOTAPE)

DAMON: And Kristie that tragically many who are inside Syria will tell you seems to be the inevitable result, because at this point in time they will say it is becoming increasingly clear that diplomacy and dialogue quite simply are not working.

LU STOUT: You know there are fears of a civil war, fears of a regional conflict. And underscoring that these reports of clashes on Syria's border with Lebanon. What can you tell us?

DAMON: According to the Lebanese National News Agency and some army sources as well, there was gunfire heard overnight along the eastern border between Syria and Lebanon. This is a region that is called Askar (ph). It is incredibly porous, mountainous, and rugged. At dawn, according to the Lebanese National News Agency, three Lebanese men tried to cross into Syria illegally, at which point they were fired upon. Two of them were wounded, one of them was killed. His body expected to be repatriated later on.

It is also worth noting, though, that this historically is one of the main smuggling areas between the two nations. And ever since this uprising began, has been one of the main routes for things like weapons, medical supplies, food, and other necessities going into the opposition. And of course one of the main ways that opposition members are evacuating their own wounded as well. So most certainly one of the many contentious areas in this region, Kristie.

LU STOUT: Arwa Damon reporting. Thank you very much indeed for that.

And still ahead here on NEWS STREAM, unintended consequences, how the fight against polio in Pakistan has become a victim of a military campaign. And we'll show you the best pictures as the planet Venus tracks a rare path across the sun.

And we'll show you Nintendo's new touch screen console and other highlights as the year ahead in gaming.

(COMMERCIAL BREAK)

LU STOUT: Welcome back.

Now sky watches have been treated to a spectacular sight. The planet Venus has been making a rare journey across the face of the sun. And started at sunset on Tuesday in the eastern U.S., the so-called transit of Venus lasted six-and-a-half hours. And it was visible from every continent.

Now Venus appears as a small black dot moving across the solar surface. Its basically an eclipse, requiring a close alignment of the sun, Venus, and Earth. And if you missed it this time, you probably won't get another chance. It will be another lifetime before Venus marches across the sun's face again. And that will happen in 2117, that's 105 years from now.

Now you may be thinking a dot on the sun, what's the big deal? Well, actually quite a lot. Now since the telescope was invented, eight transits of Venus have been observed from 1631 to this year. Now the transits in the late 18th Century allowed astronomers to calculate the distance between the Earth and the Sun and how big the solar system is.

Now the 1769 phenomenon, it took place during James Cook's voyage of discovery to Australia. And he sketched the celestial event as it happened and as it appeared from Tahiti in the South Pacific. Now the British explorer then went on to chart the east coast of Australia. And the transit of Venus, it still has scientific value today. Astronomers are using the transit to test the way they search for planets outside our solar system.

So that little dot on the sun helped unlock the universe.

Let's talk more about the event with our stargazer and weather watcher Mari Ramos. She joins us from the world weather center -- Mari.

MARI RAMOS, CNN WEATHER CORRESPONDENT: Hey, you know what, I was definitely both yesterday because like you said this was an event that was going to be viewed, or could have been viewed across every single continent in some parts of South America and parts of Africa along the Atlantic would not be able to see it, but of course it would depend on the weather.

And even here in the southeastern U.S. and here in Atlanta we were kind of holding our breath because we were hoping to see it, but it was so cloudy, it was terrible the weather yesterday. And all of a sudden, forecasts came true, and the skies did clear up. And I got a chance to see it. So let's go ahead and roll the pictures of the Mari Ramos family album.

This is my daughter, Emma. She got to see it too. There she is looking through one of the telescopes. We went to a place called the Tellus Science Museum up in north Georgia. And it was great, because they had all these telescopes set up, these solar telescopes specially retrofitted to safely be able to view the sun. That's me, my older daughter Michelle took that picture there. And I'm looking through one of the telescopes. There were several dozen on them there.

And it was actually very good, a very nice crowd that showed up.

That's my daughter Michelle looking through binoculars also specially retrofitted to be able to look at the sun, so it was quite a spectacle. There were parties like this all across the world really where people were getting together to view the sun.

And you know what, I have one more picture to show you, Kristie. This is pretty cool. I have seen this one on Twitter. It looks like all the other ones, right? Well, my daughter Michelle took this one with an iPhone through one of those telescopes. So I thought that was pretty good. You know, there you see the transit of Venus with our little family album there.

So if you guys get to see it, send us your pictures to iReport.com.

So one of the places where people were hoping they would be able to see it was across Asia. Guess what, a lot of rain in some cases. And I want to talk to you a little bit about the monsoon now, because it finally started. We didn't get to talk about this yesterday, Kristie, on Tuesday. Officially declared that the monsoon began in Kerala on the southern tip of India. This is the latest start of the monsoon since 2005. But we'll see it continuing to advance over the next few days.

The official place where the monsoon is now continuing to advance here across the south and across other places here in the Bay of Bengal. That white line that you see there, that progression of the monsoon expected to continue moving up through July 1st. That's helped a little bit with as far as the temperatures in the south, but still very, very hot as we head to places farther to the north.

Now other places that we've been looking at as far as weather and rain has been across Southeast Asia, very heavy rainfall across those areas there.

We haven't had any rain in Beijing and we really need to get some rain in those areas. Look at what the air looks like, it was kind of difficult to see. Again a very smoggy day across Beijing. The last time it rained, Kristie, it was about three or four days ago. And they only had one millimeter of rain. With all of the industry and all of the people and of course the geographic location air quality can get very bad during the summer months. And that has long-term effects.

You know what it looks like there, but when you talk about bad air quality -- not just in Beijing but in other parts of the world, there's short and long-term health effects that happen. And that's one of the big concerns.

There's also huge problems with transportation. Air and roadways and trains, all of those things get delayed, that's also one of the big concerns that we talk about when we talk about air quality. And then something we don't think about too much infrastructure. Because the air is so bad, there's corrosion and wear, extra corrosion on buildings and bridges and overpasses and those things are also an expense and another byproduct of the bad air. Back to you.

LU STOUT: Yeah, and a major public health issue. Mari Ramos there, thank you.

Now the U.S. embassy releases hourly air quality data for the cities of Beijing, Shanghai, and Guongzhou on popular Twitter feeds. And because it uses a more rigorous test, the posts usually paint a grimmer picture than official government readings. And now China is telling foreign embassies to stop publishing their air pollution data.

(BEGIN VIDEO CLIP)

LIU WEIMIN, CHINESE FOREIGN MINISTRY SPOKESMAN (through translator): Some foreign embassies and consulates in China monitor China's environment and release unauthorized data. Such acts are not in compliance with relevant regulations and the Vienna conventions. They are also in violation with Chinese laws and regulations. They are irresponsible actions. We hope relevant foreign embassies and consulates will comply with universally recognized international conventions as well as Chinese laws and stop such irresponsible actions.

(END VIDEO CLIP)

LU STOUT: Now the U.S. says it's just providing information for people to make better decisions about the safety of outdoor activity.

Now you are watching NEWS STREAM. And coming up after the break the aging faces of victims of war crimes, an exhibition featuring the comfort women abused by Japanese soldiers is controversially canceled.

(COMMERCIAL BREAK)

LU STOUT: Now it is a legacy of war that some Japanese would rather the world forget: the Korean women who were abducted and used as sex slaves for Japanese soldiers in World War II. A photographic exhibition of these now elderly women has been canceled without explanation. Kyung Lah reports from Tokyo.

(BEGIN VIDEOTAPE)

KYUNG LAH, CNN INTERNATIONAL CORRESPONDENT: A grief that never ends, it pains on these aging Korean grandmothers, victims taken from their home country, used as sex slaves for Japanese soldiers during World War II known as comfort women. These 80 to 90-year-old women are the living, but dwindling history of decades old war crimes.

Photographer Ahn Sehong is now about to let them be victimized again. He's knocking of the door of Nikon, the camera maker, Ahn took the photos of these women and he was booked to exhibit them at the Nikon gallery. But when word spread about the exhibition, Nikon says phone calls complaining about the exhibit started coming in. Some Japanese extremists believe the crimes against the comfort women never happened.

Nikon sent Ahn a letter without explanation canceling his exhibit.

AHN SEHONG, PHOTOGRAPHER (through translator): The reason I do this work is for these grandmothers. The government and some Japanese people just hope these women will die and history will be erased. It's not right.

LAH: Japan has a track record of downplaying its war crimes. This comfort women memorial in Palisades Park, New Jersey is a recent example. Just a few weeks ago Japan's government says two separate Japanese delegations met with the mayor of the small Jersey borough. The city claims the Japanese officials urged the mayor to remove the monument. That move reopened old wounds in the Korean-American community.

CHEJIN PARK, KOREAN-AMERICAN CIVIC EMPOWERMENT: They think it is (inaudible) or something else and they're trying to attack Japan. But it's not. If you don't remember the -- if you don't learn from the past wrongdoings, you are doomed to repeat it.

LAH: Japan's government has formally apologized on numerous occasions for the atrocities against the women. And the government has paid reparations to the victims through the fund. But that's the problem here for the women. Without direct payment from the government it looks like the country won't officially acknowledge what it's done.

And that's why, says Ahn, this is the closest he'll get to displaying his photographic memorial to the women and why Japanese companies like Nikon, he says, can so easily insult the women.

Why did Nikon decide to cancel the show?

The Nikon gallery manager won't give a reason why other than to say the exhibit is simply canceled. Nikon would not grant CNN an on camera interview, but tells us that public complaints are not the reason for the cancellation.

SEHONG (through translator): These grandmothers were forced into slavery 70 years ago, he says. They live and survive alone. Afterwards, no one remembers them. Unless, today's people fight yesterday's wrong.

LAH: Kyung Lah, CNN, Tokyo.

(END VIDEOTAPE)

LU STOUT: Those women should not be forgotten.

You're watching NEWS STREAM. And still ahead, tens of thousands of families in Pakistan have turned down the free polio vaccine. Health officials say thousands of children are now in danger. And we'll tell you what their parents are most afraid of.

(COMMERCIAL BREAK)

LU STOUT: I'm Kristie Lu Stout in Hong Kong. You're watching NEWS STREAM. And these are your world headlines.

Now Syrian President Bashar al-Assad has named a new prime minister, the employment of agriculture minister Riad Hijab. It comes just as Syria is expelling diplomats from 11 western countries. That move came after western nations expelled Syrian diplomats.

Now the U.S. says al Qaeda's number two Abu Yahya al-Libi has been killed in a CIA drone strike in Pakistan. Now Libi was the front man for the terrorist network, appearing frequently in videos posted on the internet. Now he was also to be considered to be one of the masterminds behind attacks on the west.

Now Canadian authorities are investigating two other cases of human remains being sent through the mail. Now this time a hand and a foot were sent to two schools in Vancouver. Now there is no indication that they are connected to the recent case against Luka Rocco Magnotta acused of killing and dismembering a man and mailing body parts to politicians.

And many around the world caught a rare glimpse of the planet Venus. Now it's called the transit of Venus. And it's when the planet travels between the earth and the sun appearing like a small black dot. And it won't happen again for another 105 years.

Now Pakistan is one of the few countries in the world where children still contract polio. And the campaign to eradicate the disease has also been dealt a blow after last year's operation to kill Osama bin Laden. Now Reza Sayah tells us why.

(BEGIN VIDEOTAPE)

REZA SAYAH, CNN INTERNATIONAL CORRESPONDENT: This is 17 month old Ikra's (ph). And she'll probably never be able to walk on her own. Doctors say she'll probably spend the rest of her life paralyzed, a victim of polio. When the other kids play she cries because she wants to play with them, but she can't even move Ikra's (ph) mother says. And here's what makes this tragedy worse, doctors say she could have lived a normal, healthy life if someone would have given her a polio vaccine that costs less than a $1 soon after she was born.

One of the worst black marks on Pakistan is that it's still one of three countries that has yet to eradicate polio, a virus that attacks the nerves and leaves you paralyzed: the other two countries Afghanistan and Nigeria.

Last year, the UN reported 198 polio cases in Pakistan. 30 percent of the world's cases were here. This week, aid groups and local health officials making another push to reduce the numbers going door to door, offering free vaccines.

In recent years they made progress, they say, vaccinating millions, then came the raid on the bin Laden compound, then reports that Pakistani doctor Shakil Afridi was part of a CIA hatched fake vaccination campaign. The plan was to get into bin Laden's compound, make sure he was there. The scheme didn't work. The doctor went to jail accused of spying for the U.S. The media, chasing after any story linked to Osama bin Laden, reported on the doctor's alleged links with the CIA.

But here's what didn't make many headlines, health officials here say all those bin Laden reports hurts the polio campaign. Many Pakistanis here, deeply conservative, already suspicious of strangers coming into their homes, now thought the vaccination campaign was part of some sort of foreign spy plot.

Alam Zeb, a father of two, says he rejected free polio drops for his children. The U.S. pays for these campaigns to destroy Muslims and make them slaves, he told us.

DR. ARSHAD AHMAD KHAN, DEPARTMENT OF HEALTH: That incident of Dr. Shakil Afridi, it affect our polio program, not only our polio program, but the rest of the related activity.

SAYAH: Health officials here say thousands of Pakistani families have yet to vaccinate their children without good reason. But with health of local religious leaders and aggressive awareness campaigns, they're making progress they say convincing more families the free vaccine can save them a lifetime of hardship and pain. Children like Ikra (ph) and her family endure every day.

We're trying our best, her mother says. We've left her in god's hands.

Reza Sayah, CNN, Noshera (ph), Pakistan.

(END VIDEOTAPE)

LU STOUT: Heartbreaking story.

And now in North Korean the new leader took center stage at a massive rally in the capital Pyongyang on Wednesday. Now Kim Jong Un, he spoke to tens of thousands of children on the 66th anniversary on the Korean Children's Union. Now this was his second public speech since he became leader. And a North Korean expert tells CNN it showed Kim Jong Un is more like his grandfather than his father Kim Jong Il who only gave one brief broadcast during his long reign.

Now still to come here on NEWS STREAM, Nintendo's Wii U heads the line-up of gaming gear for the year ahead. And we'll look at what's to come for gamers next.

(COMMERCIAL BREAK)

LU STOUT: Now it should be a big week for gamers: Nintendo, Microsoft, and Sony took the stage in Los Angeles to show off their latest offerings for the Wii, Xbox, and Playstation, but they didn't just show games. Now Microsoft spent a large part of the conference talking about their music service, TV partnerships with HBO and ESPN and a fitness service with Nike. And then there was this.

(BEGIN VIDEO CLIP)

MARC WHITTEN, VICE PRESIDENT, MICROSOFT: Today, I'm excited to announce that Internet Explorer is coming to Xbox this year.

(APPLAUSE)

(END VIDEO CLIP)

LU STOUT: Yes. Microsoft announced that they were bringing a web browser to the Xbox 360. And they're not the only ones. Now you can watch live baseball on the PS3 and even use the streaming movie service Netflix on the Wii.

Now let's look at the changing shape of the games industry now. And joining me now from London is games critic Johnny Minkley. Johnny, it's good to have you here. And I want you to take a look at something right over here. Now this is the home screen of the Xbox 360 five years ago. Pretty plane and simple. And let's look at today's home screen. And as you can see the difference is pretty striking. The gaming, it's relegated to the small little boxes here on the left while the majority of the screen is taken up by ads for movie. So Johnny, why? I mean, why is Microsoft shifting its focus away from being a hardcore gamers machine?

JOHNN MINKLEY, GAMES CRITIC: Well, this was the plan all along. I mean, the original Xbox was a pure gaming machine, but the Xbox project was always, from Microsoft's point of view, a Trojan horse, it's way of fighting the battle for the living room and becoming the hub of entertainment, because that is where the market is going now. We're seeing all these forms of entertainment -- games, TV, music, movies converging.

And there's lots of different services out there and different ways to experience this content. But what Microsoft wants to do is be the box, to be the service -- whether it's an Xbox or whether it's a Windows phone or a tablet, that you experience all of this entertainment from. And so they've slowly but surely marginalized gamers.

LU STOUT: So from Microsoft that was the plan all along.

Let's talk about Nintendo next. Nintendo showed off the new console, the Wii U. It has a strange new controller that combines a game pad with a tablet. Tell us about it.

MINKLEY: Well, yeah. I mean, Nintendo, this was a really important year for Nintendo, because they unveiled Wii U for the first time last year. And it was widely believed that they messed up the announcement of it, because they simply did not explain it clearly enough. And this was their big opportunity. They had a separate videocast on Sunday on the internet to try and correct some of those mistakes and explain how the hardware works. And its conference on Tuesday was supposed to be all about the games.

But again it just fell a little flat. Most observers seem to feel that they didn't again explain clearly enough the point of the console and how it is going to change the way we game. There's clearly potential there, there's clearly reason to be excited, but at the moment we're still only seeing glimpses rather than guarantees. And I think now with around six months until launch Nintendo still has an awful lot of work to persuade people why they should get excited and get on board.

LU STOUT: And why this fixation on tablets? You have Microsoft announcing a tablet companion app. Nintendo's new console has a tablet for a controller. Are they really basically worried about Apple?

MINKLEY: Well, it's interesting, actually. Microsoft actually one of the phrases they used in their conference was it -- you know, the thing they announced called SmartGlass which is a service where you can use Xbox, you can use tablets and smartphones whether it's a Microsoft one or an Apple one to, you know, use content between your tablet and your television and share content in different ways of interactive entertainment. And that -- they said that, you know, they can turn any TV into a smart TV with this service. And that is clearly -- they've got in their minds, the rumor that Apple are going to launch a TV set at some point. And they kind of say, well, you don't need that because we'll turn your TV set into a smart TV set. That, yes, see that the next big battleground in the living room.

LU STOUT: Definitely a space to watch.

And meanwhile Sony -- Sony didn't show any new hardware, just software. So what did you think of their showing?

MINKLEY: It was a show -- it was very much a game of two halves. I mean, for Playstation 3 owners, I think -- of all the console owners, I think they have the most reasons to be cheerful, because actually what Sony did through lots of really exciting content announcement showed there's lots of life left in PS3 yet, whether it's cool games like The Last of Us and Beyond Two Souls, story driven cinematic games.

On the other side, they made a really interesting announcement with something called Wonderbook, which is made in London by the team behind Sing Star and iToy and it's an augmented reality book project. But interestingly they've partnered with -- for the launch with J.K. Rowling. And they're doing a Harry Potter based game, which obviously has huge potential appeal and marketing potential.

But at the same time, the big thing they had to try and prove was with Playstation Vita, the handheld console. Now that is struggling. It's not really captured the imagination of consumers. And E3 was seen as a big chance for them to sort of make a big show. These are the games, this is why this console is exciting, this is why we think it's going to be a success.

And they really didn't do that. There was very little content on show. And again there's more question marks rather than answers.

LU STOUT: OK. Now at E3, Nintendo showed off their next console. Will Microsoft and Sony, they kept quiet. So when can we expect the next Playstation and the next Xbox?

MINKLEY: Well, yes. They stayed quiet this year, because they want to eek out as many sales as they can from the current generation. They saw what Nintendo did last year. And that definitely harmed resales over the last 12 years talking to early about next gen. I don't think you'll see the launch of a Playstation 4 or another Xbox before the end of 2013, but I think it's pretty much certain now that E3 next year, that is when we'll see the big, grant unveiling of the next generation of console which may be the last generation of boxes that you get under your TV.

LU STOUT: We'll be looking forward to that. Johnny Minkley joining us live from London. Thank you very much indeed for that.

Now today is a big day for the internet, though you probably won't realize it. Now June 6th is the day the internet switches its underlying architecture from IPV4 to IPV6. And the main innovation is that it adds more IP addresses to the internet. Now IP addresses, they work just like your home address. And, while just a mail man uses your address to deliver letters, an IP address tells the internet where to deliver data.

But there are only 4.3 billion addresses in IPV4. Now that is less than one per person. And I'm willing to bet that most of you have more than one device that you can access the internet on. Now IPV6 has more addresses, many, many more. In all, it has 37 undecillion addresses, that is 34 followed by 37 zeroes. That's enough for each of us to have virtually infinite number of devices.

But you should not notice any difference. Even though many pieces of network equipment and even Windows XP don't support IPV6. Now they will still keep IPV4 running alongside the new system for the foreseeable future.

Now on Tuesday, the guys behind Napster, they've teamed up again to launch a new video chat service. And let's have one of the founders, Sean Parker, explain how it works.

(BEGIN VIDEO CLIP)

SEAN PARKER, AIRTIME CO-FOUNDER: So it's the only live video chat product that's fully integrated with Facebook that allows you to chat with any of your friends and also experience video with them. So I can share a video and we're both watching it together and I can watch my friend's reaction to it.

It's also the only experience of its kind that allows me to use my interests and all of the other information that's I've built up about myself on Facebook in order to match with people who I haven't met, people who I might like to know.

(END VIDEO CLIP)

LU STOUT: Now the service is drawing comparisons to chat roulette, a similar site that matched two random people for a video chat. But co- founder Shawn Fanning says tying Airtime to Facebook adds a sense of responsibility.

(BEGIN VIDEO CLIP)

SHAWN FANNING, AIRTIME CO-FOUNDER: It was still the equivalent of two random people and transporting them into a room with no introduction, completely white room with nothing on the walls, no foundation, just saying go. And then having no repercussions once they are placed inside and having any one of them have the ability to leave at any time. It was really showing that there was a desire to reach out and talk to real people, but it wasn't a product that was designed to be intent on really helping facilitate meaningful, safe conversation. So it was, you know, it was the starting point. It showed you know that technology was there to do peer-to-peer video. It showed that the interest was there to reach out and talk to real people in a more personal way. But it was really just that first step.

(END VIDEO CLIP)

LU STOUT: But listen up here, users concerned about their privacy may want to read these terms before using Airtime. Now the terms say that using Airtime gives the service permission to record your conversations.

Now hackers look out. Search giant Google says it will alert its Gmail users if it thinks that they are the target of state sponsored attacks. Now Google says that it will send this warning saying this, quote, we believe state sponsored attackers may be attempting to compromise your account or computer. It will tell users what they should do to protect their accounts.

Now Google's move may be especially significant for human rights activists and journalists in war zones or heavily restricted areas.

Now they were supposed to sweep the old and tired Celtics away, but Miami Heat are in trouble. Amanda Davies will have all the highlights next.

(COMMERCIAL BREAK)

LU STOUT: Welcome back.

And while his rivals struggle, Rafa Nadal has had an easy ride so far in the French Open. Amanda Davies is here to preview the day ahead -- Amanda.

AMANDA DAVIES, CNN SPORTS CORRESPONDENT: Hi, Kristie. Yes, second half of the quarterfinals at the French Open today. And after the sensational match-ups Roland Garos on Tuesday in terms of the women, today's sees Kaia Kanepi take on the second seed Maria Sharapova as she continues her bid to claim the only grand slam still to elude her. And Yaroslava Shvedova is up against the Wimbledon champion Petra Kvitova as we speak. They're all up on court.

But later on, as you said, it's Rafael Nadal looking to continue his dominance at Roland Garos. He's up against his fellow Spaniard Nicolas Almagro bidding for a place in the semifinals having dropped just 19 games on route to his place in the last eight.

Nadal has beaten Almagro in all seven of their previous meetings including victories in the 2008 and 2010 French Open quarterfinals. So that one is going to be tought for Almagro.

But also on Wednesday, the men's fourth seed Andy Murray up against the sixth seed David Ferrer in what promises to be a close fought battle. That one Ferrer has won all three of their last three meetings on the clay. But the pair haven't squared up on the red stuff for the past two years. And since then Murray has won four of their five clashes on the hard court.

It's already through to the semifinals, Novak Djokovic and Roger Federer, although both were really, really made to fight for their places on Tuesday. The world number one Djokovic admitted he was fortunate as he held off four match points from France's Jo-Wilfried Tsonga to book his place in the last four.

Djokovic of course bidding to complete his grand slam by holding all four majors at the same time. He was forced all the way to a fifth set by Tsonga in front of his home crowd. But in the end, it was Novak who took it 6-1 in the decider to extend his grand slam winning streak to 26 matches in a row.

And next up for Djokovic is Roger Federer, another master made to work for his place in the semis. Federer was two sets down against Argentina's Juan Martin Del Potro, but he recovered his touch at the same time that Del Potro's injured knee started to act up. So in the end, Federer was able to fight back from two down for just the seventh time in his career. And he books his place in a record equaling 31st grand slam semifinal.

On to the NBA now where Chris Bosh made a comeback of his own on Tuesday, but couldn't help Miami Heat to victory in game five of the Eastern Conference finals against the Boston Celtics. Bosh played off the bench in his first game back from a hip injury. So the Heat were beaten 94-90 to see the Celtics take a 3-2 lead in the series. He played just 14 minutes, scoring 9 points and grabbing 7 rebounds in all as the Heat lead for most of the opening three quarters.

They lead 42-40 at the half. But forward Kevin Garnett lead Boston with 26 points. The Celtics going on a 12-1 run for their first lead of the game.

Heat kept it close in the fourth, though. Dwayne Wade drives up and throws up the ball for the acrobatic lay-up. Gets a friendly bounce to tie the game 85-85 with 1:39 left.

And in the final minute, Paul Pierce dribbles and shoots the three over LeBron for a four point lead. Heat steal the deal in the last 10 seconds. Off the inbounds there Kevin Garnett, Udonis Haslem knocks the ball away for the foul not a steal. So two free throws from Garnett in the final 10 seconds gave the Celtics the 3-2 lead in the series. Game six on Thursday with the Heat just one game from defeat.

U.S. Open champion Rory McIlroy will be teeing off in the St. Jude Classic in Memphis tomorrow just a week ahead of his major title defense in San Francisco. This time last year he turned to 18 time major winner Jack Nicklaus for advice following his last round meltdown in the Masters. The men went on to crush the U.S. Open field at Congressional to claim the trophy.

So CNN's living golf have brought Jack and Rory together for a world exclusive interview. And Rory told Jack and Shane O'Donoghue who he decided to play this week.

(BEGIN VIDEO CLIP)

RORY MCILROY, GOLFER: I need the competitive rounds just to play my way into it. So I did it completely different last year and it worked well. I took the week off for the Masters this year.

JACK NICKLAUS, GOLFING LEGEND: And did you play the week before the Open last year?

MCILROY: No.

NICKLAUS: And you're going to play the week before the Open this year.

MCILROY: Yes.

NICKLAUS: I'll keep my mouth shut.

(LAUGHTER)

NICKLAUS: Why I never played the week before the majors was at 1962 when I first turned pro I played the week before the Masters, people wanted me to play this tournament. I went and played, didn't do well in the Masters. I skipped that tournament the next year. I won the Masters. I went back and played that tournament the next year, did not win the Masters. I skipped the tournament the next year, won the Masters, skipped the tournament next year won the Masters.

SHANE O'DONOGHUE, CNN SPORTS CORRESPONDNET: Just a little advice there from the 18-time major winner Jack Nicklaus.

NICKLAUS: I'm a big fan.

O'DONOGHUE: I know you are.

NICKLAUS: I'm a big fan. I want him to play well. I want him to, you know, just say get smart.

O'DONOGHUE: You clearly are looking for something right now, though, just true tournament play.

MCILROY: Just that competitive sharpness more than anything else.

O'DONOGHUE: Has it been a bit of a shock this -- you've suddenly lost something, you know, is that just the game?

MCILROY: I think that's just golf, you know that's the game of golf. And you're not going to play well all the time. You're going to -- when you find the game quite difficult and you're going to have periods where everything seems like it comes easy to you. And I think it's just, you know, the golfing gods whoever it is up there just reminding me that you know what this game isn't as easy as it seems sometimes.

(END VIDEO CLIP)

DAVIES: You can see more of that world exclusive interview in World Sport. And then the full interview on this month's Living Golf, that's broadcast on Thursday at 6:30 pm in Hong Kong right here on CNN, don't forget. You can also whenever you'd like online and get extensive background on the golfing greats on our website as well. The address as ever, CNN.com/livinggolf. It is well worth the look, Kristie. I urge you to go and do so.

LU STOUT: Oh, I will, I will, especially to check out Shane's pants. Did you see that?

DAVIES: They were quite special.

LU STOUT: Yeah. Thank you. Nantucket red they're called.

Now earlier, I told you about Microsoft's plans for the Xbox 360 from games to TV shows to music and yes even Internet Explorer. And they also showed off something they called SmartGlass. Now it's an app for tablets like the iPad that will serve as a companion to whatever you're doing on the Xbox. So while you're watching a TV show it can show you maps of where the characters are or control the action in a football game, but clearly Microsoft did not win over everyone. Just a few minutes later, the guys from South Park, they came out to show off their new game and here's what they had to say.

(BEGIN VIDEO CLIP)

TREY PARKER, CO-CREATOR OF SOUTH PARK: If you've watched an episode of South Park and thought I'd like to be able to watch this on my television while hooked into my mobile device which is being controlled by my tablet device which is hooked into my oven all while sitting in the refrigerator. Well, we're not doing that, we're just doing (inaudible).

(END VIDEO CLIP)

LU STOUT: The always straightforward co-creator of South Park there. It's no wonder their new game is called South Park: The Stick of Truth.

And that is NEWS STREAM, but the news continues at CNN. "WORLD BUSINESS TODAY" is next.

END