Al Qaeda offers bounty for killing U.S. diplomat

SANAA, Yemen Al Qaeda's branch in Yemen has announced that it will pay tens of thousands of dollars to anyone who kills the U.S. ambassador in Sanaa or an American soldier in the country.

An audio produced by the group's media arm, the al-Malahem Foundation, and posted on militant websites Saturday said it offered three kilograms of gold, worth $160,000, for killing the ambassador.

The group said it will pay 5 million Yemeni riyals ($23,000) to anyone who kills an American soldier inside Yemen.

It did not say how the bounty could be collected, but said the offer is valid for six months.

The bounties were set to "inspire and encourage our Muslim nation for jihad," the statement said.

Washington considers al Qaeda in Yemen to be the group's most dangerous branch.

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NYC Subway Pusher Held For Hate-Crime Murder

A woman who allegedly told New York City police she pushed a man onto the subway tracks because she hated Hindus and Muslims has been charged with murder as a hate crime.

Erica Menendez, 31, allegedly told police that she "pushed a Muslim off the train tracks because I hate Hindus and Muslims ever since 2001 when they put down the twin towers I've been beating them up."

Menendez was taken into custody this morning after a two-day search, and when detectives were interviewing her she allegedly made the statements implicating herself in Thursday night's subway-platform death.

"The defendant is accused of committing what is every subway commuter's worst nightmare -- being suddenly and senselessly pushed into the path of an oncoming train," Queen District Attorney Richard A. Brown said. "The victim was allegedly shoved from behind and had no chance to defend himself. Beyond that, the hateful remarks allegedly made by the defendant and which precipitated the defendant's actions can never be tolerated by a civilized society."

Menendez was due to be arraigned this evening. She could face 25 years to life in prison if convicted of the second degree murder charge.

On Thursday night, a woman shoved a man from a subway platform at Queens Boulevard, and the man was crushed beneath an oncoming train. Police had searched the area for her after the incident.

New York City Subway Pusher Charged With Murder Watch Video

The victim was Sunando Sen, identified by several media outlets as a graphic designer and Indian immigrant who opened a print shop, Amsterdam Copy, on Manhattan's Upper West Side. Sen was struck by the No. 7 train after the unidentified woman allegedly pushed him from the northbound platform at 40th Street and Queens Boulevard at 8:04 p.m. on Thursday.

Witnesses told police they had seen the woman mubling to herself, pacing along the platform. She gave Sen little time to react, witnesses said.

"Witnesses said she was walking back and forth on the platform, talking to herself, before taking a seat alone on a wooden bench near the north end of the platform. When the train pulled into the station, the suspect rose from the bench and pushed the man, who was standing with his back to her, onto the tracks into the path of the train," NYPD Deputy Commissioner Paul J. Browne said earlier today. "The victim appeared not to notice her, according to witnesses."

READ: What to Do If You Fall on the Subway Tracks

Police released brief surveillance video of the woman fleeing the subway station, and described the suspect as a woman in her 20s, "heavy set, approximately 5'5" with brown or blond hair."

It was New York's second death of this kind in less than a month. On Dec. 3, 58-year-old Ki-Suck Han of Queens was shoved onto the tracks at New York's Times Square subway station. Two days later, police took 30-year-old Naeem Davis into custody.

On Friday, New York City Mayor Michael Bloomberg was asked whether the attack might be related to the increase of mentally ill people on the streets following closures of institutions over the past four decades.

"The courts or the law have changed and said, no, you can't do that unless they're a danger to society. Our laws protect you," Bloomberg said on his weekly radio show.

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Today on New Scientist: 28 December 2012

Best videos of 2012: Rare view of Challenger tragedy

Watch a rare amateur video of the Challenger explosion, our most-viewed video of the year

Strong jet stream super-charged US Christmas storms

Record snowfall and dozens of tornadoes snarled holiday travel as a powerful winter storm plowed across much of the US, while rainstorms battered the UK

2012 review: The year in life science

The year's biggest stories in life science, including James Cameron's descent into the Mariana trench and efforts to break into Antarctica's buried lakes

Superstorm lessons for adapting to climate change

As the post-Sandy rebuild gets under way, coastal cities around the world will be watching

Best videos of 2012: First MRI movie of childbirth

Watch a unique view of a baby's birth, at number 2 in our countdown of the year's top science videos

Fleadom or death: Reviving the glorious flea circus

The parasite-based sideshows were almost done for by the domestic vacuum cleaner - but they are bouncing back, finds Graham Lawton

Approval for gene-modified salmon spawns controversy

Apparently months late, US regulators have declared genetically engineered fish safe to farm and eat, but final approval could be some way off

Best videos of 2012: New aircraft flies inside out

Watch a novel flying machine use a unique mechanism to propel itself, at number 3 in our countdown of the top videos of the year

2012 review: The year in technology

The year's biggest stories in technology, including Kinect devices that may spot signs of autism and controlling a robot by the power of thought

Superdoodles: The science of scribbling

Far from being a distraction, doodling has an important purpose - and you can harness it

2013 Smart Guide: Wave goodbye to the mouse

The Leap, a 3D motion control device set to launch next year, will let you control your computer with touch-free hand and finger movements

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French 75% tax rate on rich struck down

PARIS: France's top constitutional body on Saturday struck down a 75 per cent upper income tax rate, dealing a major blow to Socialist President Francois Hollande who had made it his centrepiece tax measure.

The government vowed to push ahead with the tax rate, which would apply to incomes over a million euros (US$1.3 million) a year, and propose a new measure that would conform with the constitution.

The tax rate had angered business leaders and prompted some wealthy French citizens to seek tax exile abroad, including actor Gerard Depardieu who recently took up residency in Belgium.

The Constitutional Council said in its ruling that the temporary two-year tax rate, due to start next year, was unconstitutional because, unlike other forms of income tax, it applied to individuals instead of whole households.

As a result, the council said, the tax rate "failed to recognise equality before public burdens".

Though largely symbolic -- it would have applied to only about 1,500 individuals -- the Socialists said the tax rate was aimed at making the ultra-rich contribute more to tackling France's budget deficit.

It was a flagship promise of the election campaign that saw Hollande defeat right-winger Nicolas Sarkozy in May.

"The government will propose a new system that conforms with the principles laid down by the decision of the Constitutional Council. It will be presented in the framework of the next Finance Act," Prime Minister Jean-Marc Ayrault said in a statement after the ruling.

The Constitutional Council also rejected new methods for calculating the wealth tax, striking down a provision that would have increased the amount of taxable revenues and capital gains.

A source close to the government said the council's decisions would have a minimal effect, reducing revenues by only 500 million euros in the 300 billion euro 2013 budget.

Other new measures in the budget were approved, however, including an increase in some upper tax rates to 45 per cent and the addition of capital gains to taxable income.

The council also approved a 20 billion euro business tax credit included in the 2012 budget as a way of promoting economic growth and competitiveness.

France is struggling to plug a 37 billion euro hole in its public finances to meet its target of reducing the budget deficit to the EU ceiling of three percent in 2013.

The 2013 budget included 12.5 billion euros in spending cuts and 20 billion euros in new taxes on individuals and businesses.

Critics have said the new tax measures will stifle economic growth, with the French economy already expected to contract by 0.2 per cent in the final quarter of this year.

The 2013 budget is based on a government forecast of 0.8 per cent economic growth next year -- a figure many economists consider too optimistic.

Hollande, who has pushed policies of economic growth over austerity, has seen his popularity plummet in recent months as the economy stagnates and unemployment mounts.

- AFP/xq

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Senate leaders tackle fiscal cliff deal

STORY HIGHLIGHTS

• Chiefs of staff for the Senate's top Democrat and Republican will lead fiscal cliff talks


• McConnell hopes there will be a plan to present to the Senate "as early as Sunday"


• If there isn't one, Reid says that he'll put an Obama-backed bill up for a vote


• Some congressmen say Americans have a right to be frustrated by the stalemate

As the fiscal cliff looms, what's your New Year's message to Washington? Go to CNNiReport to share your video.

Washington (CNN) -- The Senate's top Democrat and Republican are working this weekend to forge a compromise to prevent the country from going over the fiscal cliff, the combination of sweeping spending cuts and widespread tax increases that will otherwise take effect in days.

Senate Majority Leader Harry Reid, D-Nevada, on late Friday afternoon called the next 24 hours "very important" in the grueling effort to avert a crisis that has been two years in the making. House Speaker John Boehner has called on the Senate to go first, and then his chamber -- which reconvenes Sunday -- will act.

Sen. Mitch McConnell of Kentucky, the Senate Minority Leader, expressed hope that he and Reid will agree on a plan to present to their respective caucuses "as early as Sunday."

Early Friday evening after a meeting involving him, congressional leaders and top administration officials, President Barack Obama said he was "modestly optimistic" the Senate leaders would reach an agreement. At the same time, he conceded, "Nobody's going to get 100% of what they want."

The two senators' chiefs of staff -- David Krone for Reid, and Sharron Soderstrom for McConnell -- will lead the talks, much of which will be carried on over the phone and by e-mail, aides said. Neither of their bosses is expected to be in the Capitol on Saturday, though that could change.

Staffers for Boehner, the top man in Republican-led House of Representatives, won't directly take part in the negotiations, but they'll be kept informed by McConnell's staff, a GOP aide said. The White House will learn what's going on through Reid's staff.

Democrats believe Republicans should make the "first move" -- basically by saying what changes should be made to the president's proposal, which calls for tax rates to stay the same for all annual family income below $250,000. The expectation is that Republicans will try to raise that income threshold to $400,000 and push to keep estate taxes low; Democrats said they might be open to one such scenario, but not both.

If the offer is "laughable," a Democratic aide said it will probably be leaked to the media. If it is reasonable, it should remain private -- which would mean, for Saturday at least, that no news may be good news.

And if the two sides don't agree on a bill over the weekend, Obama said he wants his latest proposal to be put up for a vote in both the Senate and House. He predicted his plan -- which, in addition to his tax rate proposal, would extend unemployment benefits and "lay the groundwork" for deficit reduction -- would pass in both chambers with bipartisan support.

As members of Congress and their staffs talk, Obama will make his case to the public by appearing Sunday on NBC's "Meet the Press," his first appearance on a Sunday political talk show in three years.

Reid said, at the very least, that he'd prepare legislation that includes elements favored by for a vote by Monday. Still, he insisted he'd first work with his GOP colleagues.

"I look forward to hearing any good-faith proposals Sen. McConnell has for altering this bill," the Nevada Democrat said.

If no legislation passes both chambers and therefore remains unsigned by the president by year's end, the fiscal cliff will go into effect -- something economists warn could trigger a recession.

The lack of political movement thus far, and lack of confidence Washington politicians can get anything done with so little time left, has spurred consumer confidence to sag and stock market values to sink.

Some like Democratic Sen. Chuck Schumer of New York expressed cautious optimism Friday that the looming deadline, and the key players renewed engagement, would spur a deal. But others, like Republican Sen. Bob Corker of Tennessee, derided the process so far as "a total dereliction of duty on every level."

"I've been very surprised that the president has not laid out a very specific plan to deal with this," he said on CBS "This Morning."

"But candidly, Congress should have done the same. And I think the American people should be disgusted."

The principal dispute continues to be over taxes, specifically Democrats' demand to extend most tax cuts passed under President George W. Bush while allowing higher rates of the 1990s to return on top income brackets. During his re-election campaign, Obama said this would protect 98% of Americans and 97% of small businesses from tax hikes.

Republicans have opposed any kind of increase in tax rates, and Boehner suffered the political indignity last week of offering a compromise -- a $1 million threshold for the higher rates to kick in -- that his GOP colleagues refused to support because it raised taxes and had no chance of passing the Senate.

Obama and Democrats have leverage, based on the president's reelection last month and Democrats' gains in the House and Senate in the new Congress. In addition, polls consistently show majority support for Obama's position on taxes, and Democrats insist the House would pass the president's plan with Democrats joined by some Republicans if Boehner allowed a vote on it.

However, influential anti-tax crusader Grover Norquist has vowed to back primary challenges against Republicans who violate his widely signed pledge not to raise taxes. Even if a deal is reached, Norquist has predicted yet more budget showdowns every time the government needs additional money to operate.

The two sides seemingly had made progress early last week on forging a $2 trillion deficit reduction deal that included new revenue sought by Obama and spending cuts and entitlement changes desired by Boehner.

Boehner appeared to move on increased tax revenue, including higher rates on top income brackets and eliminating deductions and loopholes. But his inability to rally all House Republicans behind his plan raised questions about his role and what comes next.

All this has fueled disdain for politicians by many Americans. Such contempt is deserved, said Rep. Steven LaTourette, an Ohio Republican, who is retiring from Congress.

"I think America should be embarrassed by its leadership in D.C.," he told CNN on Friday. "The fact that we have been unable to do things, and instead worried about our next elections. ... I think it's sinful."

What happens to the economy if we go over the cliff?

CNN's Jessica Yellin, Tom Cohen, Dana Bash, Deirdre Walsh, Ted Barrett, Greg Botelho and Kevin Liptak contributed to this report.

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Plane runs off Moscow runway, catches fire

Last Updated 8:46 a.m. ET

MOSCOW A passenger airliner ran off the runway at Moscow's Vnukovo Airport on Saturday, breaking apart and catching fire.

The Emergency Ministry said 12 people were aboard the Tu-204 and all were rescued but two were in serious condition, according to the state television news channel Vesti.

The channel showed a photo of the wrecked plane's fuselage with the livery of Red Wings airline.

The plane's nose, including the cockpit area, appeared sheared off.

Details on the crash were not immediately clear. Initial reports said the plane crashed while attempting to land, but later reports said it had crashed while taking off. Light snow was falling in Moscow at the time.

The Tu-204 is a twin-engine medium-range jet with a capacity of 210 passengers.

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Obama Still Hopeful in Final Days Before 'Cliff'

Dec 29, 2012 6:00am

AP Photo/ Evan Vucci

Three days remain for Congress to pass a federal budget agreement that would avoid the so-called “fiscal cliff” and today President Obama said he believes the House and Senate leadership can squeak out a deal in time.

In his weekly address, released this morning, the president said allowing the package of perilous tax increases and budget cuts set to take effect in the New Year “would be the wrong thing to do for our economy.”

“Congress can prevent it from happening if they act now,” he said. “Leaders in Congress are working on a way to prevent this tax hike on the middle class, and I believe we may be able to reach an agreement that can pass both houses in time.”

The president was referring to Senate Majority Leader Harry Reid, D-Nev., and Minority Leader Mitch McConnell, R-Ky., who were attempting to quickly fashion a deal that can pass both chambers of Congress. Although not mentioned specifically in the video, the two leaders and their House counterparts, Speaker John Boehner, R-Ohio, and Rep. Nancy Pelosi, D-Calif., met with the president and his staff at the White House Friday that left both parties’ leadership cautiously optimistic in public statements following the meeting.

INFOGRAPHIC: Fiscal Cliff: Why It Matters

Largely repeating remarks he made following the meeting, the president noted that should the last-minute wrangling fail he has asked Reid to deliver a basic proposal to the Senate floor for a simple up-or-down vote.

“We believe such a proposal could pass both houses with bipartisan majorities -as long as these leaders allow it to come to a vote.  If they still want to vote no and let this tax hike hit the middle class, that’s their prerogative – but they should let everyone vote.  That’s the way this is supposed to work,” he said. “We just can’t afford a politically self-inflicted wound to our economy.”

Reid’s backup legislation would reflect the Democrats’ side in this quagmire, demanding a tax boost for household incomes greater than $250,000 and an extension of unemployment benefits for roughly 2 million Americans that is set to expire without their reauthorization.

Fiscal Cliff: By The Numbers

“You meet your deadlines and your responsibilities every day,” Obama said. “The folks you sent here to serve should do the same.”

The president’s statement came a day before what could be a critical turning point in the “cliff” ordeal. On Sunday, the House of Representatives returns from holiday recess, the same day McConnell and Reid could offer up a hypothetical deal for a vote. Meanwhile, NBC’s “Meet the Press” will air a televised interview with Obama that morning.

SHOWS: Good Morning America World News

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Fleadom or death: Reviving the glorious flea circus

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Japan new foreign minister vows China patch-up

TOKYO: Japan's new foreign minister said on Friday he would work to patch up ties with China, soured over a bitter territorial row that has blighted relations for months.

"I believe it is very important to have good communication between the two governments, as well as between two foreign ministers," Fumio Kishida said in an interview with journalists.

"It is primarily important that I, as foreign minister, make the effort to deepen communications between the two countries," he said.

Kishida, seen as a relative dove in the government of hawkish new Prime Minister Shinzo Abe, begins the top diplomatic job as ties with China show few signs of improving following an ill-tempered territorial stand-off.

Abe won conservative support in national polls earlier this month with his forthright pronouncements on a group of East China Sea islands that Tokyo controls, vowing not to budge on Japan's claim to the Senkaku chain.

China also lays claim to the islands, which it calls the Diaoyu.

Additionally, Abe has said he would consider revising Japan's post-war pacifist constitution, alarming officials in Beijing and Seoul.

But he has quickly toned down the campaign rhetoric and has said he wants improved ties with China, Japan's biggest trading partner. He called for a solution through what he described as "patient exchanges".

"I am aware that some view the new Cabinet as right-leaning," Kishida said. "As a state, we need to do whatever we need to do to construct firm national security."

Kishida, 55, a former banker who leads a liberal faction in the ruling Liberal Democratic Party, was an unexpected pick by Abe.

However, his experience as a state minister in Abe's cabinet during his first prime ministerial incarnation, dealing with territorial disputes with Russia and in Okinawan affairs, proved a plus.

Japan and Russia have never signed a post-Second World War peace treaty because of an unresolved spat over the ownership of islands to the north of the archipelago.

In Okinawa, the presence of a large number of US military personnel is a major source of contention for the local population, but a vital strand of Tokyo's defence pact with Washington.

- AFP/xq

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Top 12 tech stories of the year

Microsoft's big Windows 8 push

SOPA backlash

Live-tweeting war

Apple maps stumble

Apple vs. Samsung

Facebook's botched IPO

The Instagram boom

Megaupload and Kim Dotcom

Mid-sized tablets make their mark

Nintendo launches Wii U

Yahoo hires Marissa Mayer

Tech's role in the 2012 election

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STORY HIGHLIGHTS

• In 2012, older tech companies such as Microsoft tried to revamp their brands


• The year kicked off with a huge online protest against SOPA


• Facebook bought photo-sharing app Instagram, but its IPO was a disappointment


• Apple released its iPhone 5 and iPad Mini but bungled its new mobile maps app

(CNN) -- In the tech world, 2012 was the year of the reboot. Older, established tech companies such as Microsoft, Yahoo and Nintendo all tried to restart their brands with bold new products and fresh blood in the executive suites.

Facebook struggled with its new life as a publicly traded company, and Instagram, the photo-sharing network it acquired in April, was dragged along for the ride.

There were inspiring stories, such as the Internet coming together to protest anti-piracy legislation. And there was darker news, like the Israeli military live-tweeting its strikes against Gaza.

And as always, the world's dominant and most closely watched tech company was all over the news. Apple did a little bit of everything in 2012, from hit new products (the iPad Mini) to high-profile failures (Apple Maps) to some old-fashioned courtroom drama in its patent war with Samsung.

Here are our picks for the top 12 tech stories of 2012. What did we leave out? Let us know in the comment section below.

Microsoft's big push

This was the year Microsoft took a big, bold and surprisingly fun step with a new version of Windows, an updated mobile operating system and its very own iPad rival.

The company, best known for its efficient but stodgy desktop software, needed to do something fresh to get customers' attention in 2012 and started with its flagship product. Windows 8 is a complete overhaul of the Windows operating system. Microsoft nixed the Start button and mixed a playful touchscreen interface with a more traditional desktop experience that runs on tablets, traditional computers, and hybrid machines.

The company also made a leap into the hardware market, releasing its first tablet, the Microsoft Surface, which ran a truncated version of the new Windows 8 operating system. And finally, there was Windows Phone 8, a major revamp of its smartphone operating system, which Microsoft hopes can compete with Apple's iOS and Google's Android.

It's still too soon to judge any of the new releases as successes or failures, but give Microsoft credit for taking chances.

SOPA backlash

In January, a pair of anti-piracy bills united the Internet in outrage. The proposed legislation, the Stop Online Piracy Act, or SOPA, and the Protect IP Act, or PIPA, would have restricted access to sites associated with pirated content, including the search engines and ad networks that do business with them.

The Internet cried censorship, and on January 18 some of the most popular sites blacked out their pages in protest. Reddit, Craigslist, Boing Boing, The Oatmeal, the English-language version of Wikipedia and thousands of other sites went dark. Even Google put a black censorship box over its logo. There were also petitions and organized boycotts of companies that supported the bills.

The protests worked, as both SOPA and PIPA were shelved. It was an impressive demonstration of the power of an organized Internet community.

Live-tweeting war

Violence and war have long been documented on Twitter and other social networks -- typically by journalists and by regular people on the ground (notably the Pakistani witness to the 2011 raid that killed Osama bin Laden).

But in November, the Israeli military took this concept to a new level. During its conflict with Palestinian forces in Gaza, the Israel Defense Force tweeted updates, including the news it had "eliminated" Hamas leader Ahmed Jabari. The military arm of Hamas responded on Twitter with its own provocations.

The back-and-forth between the warring sides signaled a jarring evolution in how war is broadcast in real time.

iPhone 5 and Apple Maps stumble

Every Apple hardware release is a big news story, starting with rumors months in advance and peaking with a well-oiled Apple press event, followed by usually glowing reviews and huge sales numbers. But in 2012, Apple made a major misstep when it released the iPhone 5 and its new operating system, iOS 6.

The company dropped the Google-powered maps that had come pre-installed on every iPhone since 2007. In its place, Apple introduced its own mapping app. Apple Maps looked stunning, with 3-D graphics and neat features like Flyover and turn-by-turn directions. All it was missing was transit directions and accuracy -- the maps were riddled with mistaken locations and outdated information.

The resulting criticism inspired an apology from CEO Tim Cook and led to an executive shakeup at Apple. Customers turned to third-party map apps until Google finally released an iOS version of its popular maps in December.

Apple vs. Samsung

It was the biggest tech trial of the year. Two of the top phone and tablet manufacturers went to war when Apple accused Samsung of infringing on its iPad and iPhone patents for a variety of tablets and smartphones. The drama culminated in a federal jury trial over the summer that offered a rare peek into how notoriously secretive Apple operates.

The story became huge because of the large amount of money at stake and the implications that its verdict would have on Samsung's business and the Android platform.

The jury decided in Apple's favor, awarding the company just over $1 billion in damages. But the case is far from over. Lawyers for both sides will continue bickering over potential appeals for months and possibly years to come.

Facebook's botched IPO

It was the most anticipated IPO of the year, and one of the largest ever for a tech company. Social-media darling Facebook looked primed for a big public opening: The company was valued at $104 billion, snapped up popular photo-sharing app Instagram and was still growing.

But then an array of problems and misjudgments led to a botched IPO in May, and the company's stock plummeted. The initial offer price of $38 was too high, too many shares were issued, its opening day was marred by Nasdaq's technical glitches, and underwriter Morgan Stanley was fined for improperly influencing share sales.

The stock price dropped significantly, hitting a low of $17.55 on September 4. Facebook is still struggling to recover some of its early-2012 luster.

The Instagram boom

Instagram started out scrappy two years ago as a fun little app for sharing sepia-shaded photos with friends. But when its user base skyrocketed, Facebook bought it for $1 billion in cash and shares of Facebook stock. That amount later dropped to $735 million as the value of Facebook shares plummeted.

By September, Instagram had more than 100 million users. The app capped off its big year with a rite of passage for social networks: a bungled update to its terms of service that sparked user outrage and led to a hasty backtrack by founder Kevin Systrom.

Instagram's challenge for 2013 is to figure out how to grow its free service into a business that makes money so that Facebook can begin to get its money's worth.

Megaupload and Kim Dotcom

The Megaupload case would have been mildly interesting on its own. A popular file-sharing company and its various sites were shut down by the F.B.I for piracy. But when Megaupload founder Kim Dotcom was arrested in January at his lavish New Zealand estate, he went from unknown entrepreneur to a flamboyantly rich cult hero.

Dotcom (he legally changed his last name from Schmitz in 2005) did what any self-respecting boy video-game nerd would do with millions of dollars. He bought a yacht, helicopter, luxury cars and motorcycles. He lived with his model wife in a $24 million rented mansion in New Zealand where he spent hours playing "Call of Duty: Modern Warfare 3," earning a spot as the top-ranked player in the world.

But after Dotcom was jailed and his assets were seized, he slowly emerged as a leader for Internet freedom activists who thought he was unfairly targeted. He's still fighting the charges and using his newfound fame to launch new projects. His current plans include a new file-sharing site that encrypts all its files, and a streaming music service called Megabox.

Mid-sized tablets take off

It was the rare case of Apple following a trend instead of setting it. Apple introduced its 7.9-inch iPad Mini in October to take on its new rivals in the tablet market: cheaper 7-inch devices from Google and Amazon. While the Kindle Fire and Nexus 7 were only selling modestly compared to the iPad, Apple quickly recognized the growing demand for a smaller, more portable device.

The iPad Mini proved especially notable because Apple's late CEO, Steve Jobs, famously stated a 7-inch tablet would never make it in the market because it was "too big to compete with a smartphone; too small to compete with an iPad." This may have been one of those rare cases in which Jobs was wrong.

Nintendo launches Wii U

In November, Nintendo released a new version of its popular Wii game console, which while groundbreaking when launched in 2006 was badly in need of a refresh.

The Wii U's most novel feature is a touchscreen tablet controller called a GamePad, which communicates with the main console. Inside the tablet are motion control sensors, speakers, a camera, buttons and other bells and whistles -- all of which the gamer uses to interact with what's happening on the larger screen.

It's a bold move for the company and brings a new perspective to console gaming, although the Wii U has received mixed reviews so far.

Yahoo hires Marissa Mayer

Aging Internet giant Yahoo was facing slumping revenues and internal strife in July when it hired Google exec Marissa Mayer as its new chief executive. The hire made headlines for many reasons: Mayer was a bold choice that showed Yahoo was serious about shaking things up. She was also young, a Silicon Valley power player, and a woman who was expecting her first child.

There was much media hand-wringing over her pregnancy, with some pundits wondering aloud whether Mayer could juggle a newborn baby and a demanding new job. Many saw her as a role model for working mothers.

But when the news settled, the real question returned: Could Mayer save the floundering Yahoo? So far she has shaken up Yahoo's executive team, given employee morale a much-needed boost and begun to improve the company's mobile offerings, including a stunning new Flickr app.

It will take a while to properly gauge her impact, but investors seem optimistic. Yahoo's stock price has risen $4 a share since her hiring was announced.

Tech's role in the presidential election

Technology issues such as net neutrality weren't discussed much during the 2012 presidential election, but tech played a huge role in rallying supporters and getting out the vote. President Obama, arguably the most tech-savvy of U.S. presidents, went on Google Plus and Reddit to take questions from voters.

And both his campaign and that of his GOP challenger, Mitt Romney, sent social media messages almost daily in attempts to sway media reports and public opinion.

But the most impressive use of tech took place behind the scenes, where both sides used new and powerful computer databases to target voters. The Romney campaign's get-out-the-vote program, called Orca, suffered technical glitches on Election Day and was perceived to have been outflanked by Obama campaign software which compiled massive amounts of data on voters and dispatched volunteers to pinpoint locations across the country.

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