In Japan where technology runs wild, you will find quite a few interesting things. Well, it seems that a company named Koozyt is taking it to the next level. While this service may not be new, it is new to the iPod Touch. So, what is PlaceEngine you ask?    

PlaceEngine is a service that makes it possible for users to easily estimate current location by utilizing Wi-Fi devices, so that they can find out more about their surroundings and gain access to local information. Any device equipped with Wi-Fi can easily estimate its location without utilizing GPS. PlaceEngine uses Wi-Fi information sent from Wi-Fi access points, enabling a device to determine its location even indoors or underground, where it might normally not be possible with GPS.
The following steps outline how PlaceEngine can estimate a device’s location and provides location related information:
First, download and install the PlaceEngine Client software
The PlaceEngine Client scans nearby Wi-Fi access points and collects Wi-Fi information (such as MAC address, RSSI, etc).
Next, the PlaceEngine Client sends this Wi-Fi information to the PlaceEngine server
The PlaceEngine server estimates the device’s location (latitude/longitude, address, etc) from the Wi-Fi information sent from the Client software and Wi-Fi information database maintained at the server, and finally returns this location information back to the Client software.
The PlaceEngine Client can work in conjunction with web pages such as the PlaceEngine MAP site. Users can click the “Get Location” button to display a map of the current location on the web page and gain access to location related service sites based on the estimated current position, that may provide information on nearby restaurants, shops, train stations, etc..

With the recent boom in Japan with the iPod Touch, developers over at Koozyt have decided to implement this service for the iPod Touch. It looks like the folks in Japan are really going to dive into this service. People here access maps and navi systems here on their phones all the time ” for a fee of coursre”. Who wouldn’t want this service for free.

Keep an eye out. After the SDK opens to the public, the PlaceEngine official site will be having a test release demonstration.

[Video]http://service.koozyt.com/movies/pe4ipod/
[Source]http://www.koozyt.com/misc/info080201.html

[Disclaimer] While I do my best at translating Japanese. I am not, in fact Japanese, so there may be a few errors.

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