Google has developed a prototype cellphone that could reach markets within a year, and plans to offer consumers free subscriptions by bundling advertisements with its search engine, e-mail, and Web browser software applications, according to a story published Thursday in The Wall Street Journal.

Google is showing the prototype to cell phone manufacturers and network operators as it continues to hone the technical specifications that will allow the phone to offer a better mobile Web browsing experience than current products, the story said.

Google declined to comment on the report of the prototype, but confirmed that it is working with partners to expand its software applications from the traditional Internet to mobile devices.

“We’re partnering with carriers, manufacturers, and content providers around the world to bring Google search and Google applications to mobile users everywhere,” Google spokesman Michael Kirkland said.

Sony is recalling 416,000 digital cameras because the case may warp, creating an edge that can cut or scratch the user’s hands, the company said Thursday.

The company will replace the bottom casing, where the problem occurs, at no cost.

The recall affects 350,000 Cyber Shot DSC-T5 cameras sold in the United States, Europe and China, about 66,000 sold in Japan,Sony spokeswoman Ryoko Takagi said.

US Customs authorities launched Wednesday a sweeping crackdown on the sale and distribution of modification chips and electronic devices that lets users play pirated video games.

Federal agents executed 32 search warrants in 16 states including California, Florida, Hawaii and New York.

“This investigation represents the largest national enforcement action of its kind targeting this type of illegal activity,” a statement from the US Immigration and Customs Enforcement (ICE) read.

The banned chips and devices “let users play illegally obtained, pirated and/or counterfeit software on video game consoles including Sony’s Playstation 2, Microsoft’s XBOX and XBOX 360, and Nintendo’s Wii.”

Microsoft Corp. said on Wednesday it will offer a free, advertising-supported version of its basic productivity software, Microsoft Works, as part of a test program with computers manufacturers.

The world’s largest software maker has been pondering the future of Microsoft Works, its basic spreadsheet and word processing software, in the face of rising competition from Google Inc.’s suite of business software services.

Unlike Google Docs and Spreadsheets, which are delivered through an Internet browser, Microsoft plans to pre-install Works on computers and display advertisements stored in cache. The software normally retails for $39.99.

When a user connects to the Internet while using Works, that cache of ads will refresh, said Melissa Stern, a Microsoft senior product manager in the Office group.

The company plans to roll out the advertising-supported Microsoft Works SE 9 in a few months. Microsoft would not disclose either the PC makers with which it was working or the markets for the test program.

Apple Inc. has issued a software patch to fix some security holes that independent security researchers recently discovered for the company’s vaunted iPhone.

The software update that Apple said it released late Tuesday addresses several bugs and security issues, but most notably a flaw that could have allowed hackers to take control of the multimedia cell phone to spread spam or steal data if its owner was to visit a doctored Web site or Internet Wi-Fi hotspot.

The iPhone hijacking vulnerability was only theoretical; there were no reports of criminals taking advantage of the glitch.