The XBIZ Weekly Tech Watch

This week's Tech Watch brings some bad news on the heels of the faltering economy, but there's also plenty of news about fun new toys to distract from hard times.

• The bubble for Web 2.0 startups may be starting to burst – if it hadn't burst already. Adult social media and networking website Zivity.com was able to raise $1 million in venture capital, but this week, the company laid off 13 staff members. Elsewhere around the web, music website Pandora.com laid off 14 percent of its staff, tagging website Fleck.com is up for sale, Microsoft has given up on MSN Groups, and AdBrite has laid off 40 percent of its staff. Meanwhite, eBay has hit a slump, although Skype is doing well.

• On that note, MyWonderfulLife.com helps users plan their own funerals.

• FriendFeed has built a handy new liveblogging tool.

• Webmasters may want to check out the recently launched polling engine PollDaddy.com.

Blip.fm pitches itself as a Twitter for music.

• The Karaoke Channel has launched an online portal.

• Just out of Japan are these new pedometers that also include a small role-playing game.

• Webmasters interested in direct advertising solutions may want to try FatTail.com.

XTranormal.com lets anyone build a 3D Flash movie.

• This futuristic new phone attaches the speaker and receiver to fingers to make for a more robotic experience.

• Adult moviemakers might find use in this new camera that delivers wall-eye effects instantly.

• Old iPhones can have GPS capability with this new gizmo that plugs right into it.

• Flock, a web browser that aggregates social-networking activity, has released its newest version.

• This bit of news is for super-geeks only, but scientists have discovered a way to write words built out of individual atoms.

• Heavy-duty – and rich – travelers may be interested in this fancy mobile home built out of an old garbage truck.

• Social-networking website BrightKite.com helps track people's locations.

• Food enthusiasts may be interested in this review of a home soda maker.

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