Oddly enough, the far-fetched proposal is apt to be accepted. Circuit City has reportedly solicited the services of Goldman Sachs to help "negotiate a deal," which will essentially put the troubled electronics retailer in the hands of someone else. As it stands, Blockbuster looks to be the most interested in picking up the pieces, with billionaire Carl Icahn (Blockbuster's largest shareholder) agreeing to finance the get-together. Of course, it looks as if Blockbuster may be the only outfit interested. Not like that's any surprise, however, as Best Buy itself is having to look to Europe to boost revenues with US consumer spending off from where it once was. The real question here is whether a Circuit City-Blockbuster combo would be the perfect concoction to turn things around for both flagging firms, or will we find that two sinking ships actually do go down faster when anchored to one another?

Just weeks after the rental giant announced an expanded dedication for Blu-ray and even tried selling HDTVs in a test location in Dallas, now the firm is attempting to boost profits by digging into the surging video game market. Presumably in hopes that rental junkies and casual gaming fans alike will actually venture into Blockbuster in order to buy their next Wii, DS, Xbox 360 or PlayStation 3, the outfit has announced a new focus that will push the retail video game / game hardware aspect in all of its US-based corporate-owned stores. This includes consoles, a more fleshed out array of games and all the accessories your wallet can handle. Heck, it's even offering up an exclusive 40GB PS3 bundle ($499.99) with the Spider-Man 3 Blu-ray Disc, a PS3 remote, Transformers (the game) and a rental card giving purchasers a free PS3 game / BD rental per week for 12 weeks. Color us completely enthralled.

[Via Joystiq, image courtesy of Portfolio]

Be still, our hearts! Judging by a post (penned in Russian) over at the studio's Livejournal, we could be seeing a number of Art Lebedev retail outlets popping up over the next year and change. From what we can glean, (more) B&M locations could surface in a plethora of Russian cities (Moscow, St. Petersburg, Novosibirsk, etc.) along with one in New York (!). Granted, we get the impression that the "stores" may resemble holes-in-the-wall within other establishments (rather than dedicated structures), but we 'spose only time will tell. Camp out for the next edition of the Optimus Maximus right here in the Big Apple? Why, of course.

[Thanks, Dmitriy]

No, Microsoft hasn't suddenly transformed its 30-inch, multi-touch Surface into a big-ass cellphone. It has, however, chosen AT&T to launch the world's first Surface into retail. Shoppers in New York, Atlanta, San Antonio, and San Francisco will be treated to what amounts to the novelty (at least initially) of learning about a device (Samsung BlackJack II, pictured) by simply placing it atop the Surface. They'll also have the ability to explore interactive coverage maps. Later, users will be able to drag ringtones, graphics and video and drop it into "the phones." Note their use of "the" and not "your" phone in the press release. Nevertheless, we're happy to see Microsoft get the technology out the door on its long march towards consumerdom.

Update: Interestingly enough, AT&T's flagship iPhone will not be one of the first phones demonstrated on Surface. Perhaps AT&T / Microsoft worry about a multi-touch collision creating consumer strangelets.

Last we checked we actually weren't in the Twilight Zone, but quite frankly, the bigwigs at Gibson just might be. Seemingly out of nowhere, the famed guitar manufacturer sparked up a lawsuit against Activision claiming that Guitar Hero titles violate one of its patents. Now the company appears to be on the warpath, suing Wal-Mart, Target, GameStop, Amazon, Toys 'R' Us and Kmart in an attempt to get the game off of store shelves. Reportedly, Gibson took "this action reluctantly, but is required to protect its intellectual property." For the retailers that did comment, they chimed in only to say "we aren't commenting," and judging by the looks of things, the games are still widely available -- for now.

Late last month, we actually posed the question of buying a Blu-ray player now (being that the format war is over and all), or waiting things out until prices sink and Profile 2.0 players flood the market. Aside from the PlayStation 3 -- which is actually priced fairly reasonably if you were in the hunt for a new console anyway -- it seems as though HD DVD's exit has actually caused Blu-ray player prices to creep back upwards. Granted, this is about as far from surprising as it gets -- after all, it's nothing short of supply and demand working its magic. Still, it wasn't too long ago that we saw Toshiba actively putting pressure on the Blu camp to reduce prices in order to stay competitive, and now that said pressure has vanished, stickers on the whole have headed north. Ah well, it's not like the consumer didn't ask for this, um, right?

No, this isn't the first time we've heard of innocent consumers snagging some new kit only to find random bits of unwanted garbage in place of the actual product, and unfortunately, we've all ideas it's not the last. This go 'round, a couple waltzed into Best Buy, snagged a "brand new" $300 hard drive and zoomed home to start packin' those platters. Much to their dismay, no HDD was found inside the box -- rather, three bags of dried beans weighed it down enough to not seem suspicious. As expected, Best Buy wasn't about to refund any money for fear that the actual purchasers could be the culprits, and while that's certainly understandable, we're quite relieved to know that a little outside intervention netted the two a $300 gift card to the retailer. We bet they'll inspect that package a bit more closely before taking it home next time (sad though that may be).

[Image courtesy of DKImages, thanks Craig]

It's hard to tell whether the MacBook Air is selling way beyond Apple's regular expectations or whether they just didn't make that many units (there's a difference, after all), but as Ars Technica points out, a cursory glance to Apple's MBA stock-checker shows the majority of Apple stores are plum out. Of course, the Cube sold pretty well in the early days too, only time will tell whether the machine actually has staying power. Something tells us Steve will have a thing or two to say about the Air's sales later this week, though.

Read - Ars points out the MBAs are oft sold out
Read - MacBook Air retail stock-checke

It's not like there has been any shortage of deals on HD DVD hardware over the past few months or anything, but now that Toshiba (and almost everyone else on the planet) has officially yanked support for the format, prices are beginning to plummet en masse. First on the docket is the HD-A3 at Circuit City, which now sits at just $99.99 and comes with seven free titles, two of which are 300 and Bourne Identity. So yeah, if you've been waiting for this moment to snap up the failed format for cheap, hop on in -- but if we were betting souls, we'd say holding out just a wee bit longer would actually be in your wallet's best interest.

[Thanks, Dustin]

In a memo sent out today by Dell, the company has reassured us that even though AMD is disappearing rapidly from its online store, the company remains "committed" to AMD, and is just "in the process of redistributing its product mix" -- whatever that means. But despite those euphemisms, consumers can only buy most Dell AMD systems through a retail store or over the phone. Dell pointed out that it has kept its Energy Star 4.0 Inspiron 531 consumer desktop available online, but most other AMD machines are now just for business customers or those strange creatures that use "phones" and "buildings" to buy things.

Read - Reg Hardware
Read - The Wall Street Journal

Just as we feared, Dell will indeed be axing 100-percent of its US mall kiosks -- 140 in total. Unsurprisingly, the official word attributes the move to Dell's shift into big box retail stores, but we're sure that's not the least bit consoling to the fine folks who were pushing Round Rock's machines to mall-goers just yesterday. According to Tony Weiss, vice president for Dell's Global Consumer business, the move "fits in with how its broad global retail strategy is evolving," and for whatever it's worth, kiosks outside of US borders are still safe for now. You may still be getting a Dell, but dude, it won't be from the mall.

[Image courtesy of NotebookReview]

If our solemn word wasn't enough to convince you of trouble in retail-ville for Palm, take this news as empirical. According to the smartphone-maker, it is officially shuttering all of its retail locations but one over the next five weeks. Originally, we thought that the airport locations would steer clear of the axe, but news today is that 34 stores total -- 26 airport-based and eight branded stores -- will be saying adios before long. Sure, this news doesn't sound real hot, but Palm claims they want to cut costs and focus on its next-gen phones, which is what we've been asking them to do all along... so maybe this is a blessing in disguise?

Oh Palm, things just seem to be going from bad to worse. After your recent (and repeated) Palm OS II delays and employee layoffs, you really should be due for some good news -- but that's not the case today. According to a member of the TreoCentral forums who cites "sources," Palm will be folding all but its airport-based retail locations by the end of January. Apparently, other forum members have checked in with their local stores and gotten word from reps there that the doors are indeed shutting, so it seems like this is a go. Palm, we're not going to say you're in your darkest hour just yet, but we're pretty sure you can see it from where you're standing. C'mon guys -- get it together!

[Thanks, Anonymous]

We're not sure how many people will be relieved by this news, but the few die-hard CompUSA fans out there can rest easy tonight, as the big box retailer will continue to live on as a ward of Ohio-based Systemax. According to Reuters, the TigerDirect owner will shell out around $30 million for the CompUSA brand, trademarks, e-tail business, and as many as 16 brick-and-mortar retail locations, although the particular sites have not yet been chosen. The acquisition -- which comes just a month after the company was sold to liquidation firm Gordon Brothers Group -- was justified by Systemax CEO Richard Leeds as being a good match for its Tiger Direct operation because he believes "the value of the CompUSA brand remains very high."

[Thanks, Quentin]

Yeah, we pretty much expected every big box retailer known to man to carry these things, but just in case you were worried about locating a TV converter box in preparation for the upcoming cutover, here's some comforting news. Wal-Mart, Best Buy, Circuit City, Kmart, RadioShack, Target, Sears and Sam's Club are all on the list to carry equipment necessary for analog TV owners to receive OTA programming after February 2009, and just in case one of the aforementioned giants aren't anywhere near you, around 100 more smaller retailers have been certified to stock 'em. Also of note, you can start the new year off right by reminding your great grandparents (or other family members, too) that they can go on and apply for up to two coupons -- which should arrive around six weeks later -- worth $40 apiece to purchase the required boxes. Or, of course, you could just pick them up a new television this holiday season and be done with it.

[Via BroadcastingCable]