Tom Warren reports via The Verge: Microsoft is teasing the potential for unique Xbox hardware in the future and a powerful next-gen console. Four previously exclusive Xbox games are officially coming to the PS5 and Nintendo Switch soon, and Microsoft wants to reassure Xbox fans that it's still very much invested in the future of its platform and hardware. In an official Xbox podcast today, Xbox president Sarah Bond teased that Microsoft will deliver 'the largest technical leap' with the next-generation Xbox: "We've got more to come. There's some exciting stuff coming out in hardware that we're going to share this holiday. We're also invested in the next-generation roadmap. What we're really focused on there is delivering the largest technical leap you will have ever seen in a hardware generation, which makes it better for players and better for creators and the visions that they're building."

Speaking to The Verge, Microsoft Gaming CEO Phil Spencer went a step further, teasing that the Xbox hardware teams are thinking about building different kinds of hardware. "I'm very proud of the work that the hardware team is doing, not only for this year, but also into the future," says Spencer. "[We're] really thinking about creating hardware that sells to gamers because of the unique aspects of the hardware. It's kind of an unleashing of the creative capability of our hardware team that I'm really excited about."

Perhaps that unique hardware is an Xbox handheld. "We see a lot of opportunity in different types of devices, and will share specifics on our future hardware plans as soon as we are ready," says Microsoft in an Xbox blog post today.

After missing its sales target in the last quarter, Sony says it plans to emphasize the PlayStation 5's profitability over unit sales as the console approaches its fourth birthday. "Looking ahead, PS5 will enter the latter stage of its life cycle," said Sony senior vice president Naomi Matsuoka. "As such, we will put more emphasis on the balance between profitability and sales. For this reason, we expect the annual sales pace of PS5 hardware will start falling from the next fiscal year." Sony also said it has no plans to release "any new major existing franchise titles" in its next fiscal year. The Verge reports: Sony now expects to sell 4 million fewer PS5 consoles in its 2023 fiscal year ending March 31st compared to previous projections, Bloomberg reports. The revision came as part of today's third-quarter earnings release which saw Sony lower the PS5 sales forecast from the 25 million consoles it expected to sell down to 21 million.

While PS5 sales were up in Sony's third quarter, increasing to 8.2 million units from 6.3 million in the same quarter the previous year, Bloomberg notes that this was roughly a million units lower than it had previously projected. That's despite the release of the big first-party title Spider-Man 2, strong sales of third-party titles, and the launch of a new slimmer PS5 in November.

In its third quarter, Sony's gaming revenue was up 16 percent versus the same period the previous year, sitting at 1.4 trillion yen (around $9.3 billion), but operating income was down 26 percent to 86.1 billion yen (around $572 million) due to promotions in the third quarter ending on December 31st.

An anonymous reader quotes a report from Ars Technica: Nintendo's Satellaview, a Japan-only satellite add-on for the Super Famicom, is a rich target for preservationists because it was the home to some of the most ephemeral games ever released. That includes a host of content for Nintendo's own games, including F-Zero. That influential Super Nintendo (Super Famicom in Japan) racing title was the subject of eight weekly broadcasts sent to subscribing Japanese homes in 1996 and 1997, some with live "Soundlink" CD-quality music and voiceovers. When live game broadcasts were finished, the memory cartridges used to store game data would report themselves as empty, even though they technically were not. Keeping that same 1MB memory cartridge in the system when another broadcast started would overwrite that data, and there were no rebroadcasts.

As reported by Matthew Green at Press the Buttons (along with Did You Know Gaming's informative video), data from some untouched memory cartridges was found and used to re-create some of the content. Some courses, part of a multi-week "Grand Prix 2" event, have never been found, despite a $5,000 bounty offering and extensive effort. And yet, remarkably, the 10 courses in those later broadcasts were reverse-engineered, using a VHS recording, machine learning tools, and some manual pixel-by-pixel re-creation. The results are "north of 99.9% accurate," according to those who crafted it and exist now as a mod you can patch onto an existing F-Zero ROM. [...] Their work means that, 25 years later, a moment in gaming that was nearly lost to time and various corporate currents has been, if not entirely restored, brought as close as is humanly (and machine-ably) possible to what it once was.

Amid increasing speculation about the future of Xbox, its exclusives, and even its status as a hardware manufacturer, Phil Spencer reportedly told employees last week that it has no plans to stop making consoles. From a report: Reporter Shannon Liao said in her weekly Substack industry newsletter that Spencer moved to reassure staff during an all-hands meeting on Tuesday. "The company held an internal Tuesday townhall where Spencer told employees that there were no plans to stop making consoles, and that Xboxes would continue to be part of a strategy that involves multiple kinds of devices," Liao reported.

Ubisoft co-founder and CEO Yves Guillemot has defended the $70 price tag for Skull and Bones, calling it a "quadruple-A game." From a report: During a Q&A session as part of a conference call discussing Ubisoft's Q3 sales for its fiscal year 2024, one caller pointed out that Skull and Bones now appears to be taking a more live service approach -- the game's Year 1 roadmap was recently published, for example. The caller asked why Ubisoft was insisting on charging $70 for the game and potentially limiting the size of its player base, suggesting a free-to-play model may better suit the live service mechanics and give it a better chance of building a community.

Guillemot replied with an assertion that Skull and Bones deserves to be a full-price game because of its scale. "You will see that Skull and Bones is a fully-fledged game," he said. "It's a very big game, and we feel that people will really see how vast and complete that game is. It's a really full, triple... quadruple-A game, that will deliver in the long run."

An anonymous reader quotes a report from VentureBeat: Disney is investing $1.5 billion for an equity stake in Fortnite and Unreal Engine maker Epic Games as part of a broader partnership to create a new Disney gaming universe. The companies plan to create an expansive and open games and entertainment universe. I would say they're building a metaverse, if the word weren't so overused late and out of favor with some. They didn't actually use that word. Bob Iger, CEO of Disney, announced the investment in an interview with CNBC today. The companies will collaborate on a new games and entertainment universe that will further expand the reach of beloved Disney stories and experiences. It will be a multi-year project, built by Epic Games.

"It's not just our parks where we're creating new opportunities for consumers to engage with the characters and franchises they love," Iger said in an analyst call. In our new relationship with Epic Games, we're creating a transformational games and entertainment universe that integrates Disney's world-class storytelling into Epic's cultural phenomenon Fortnite, enabling consumers to play, watch, create, and shop for both digital and physical goods. This marks Disney's biggest entry ever into the world of video games, and offers significant opportunities for growth and expansion. The new immersive universe will unleash their own creativity and experience the Disney stories that they love in groundbreaking new ways."

Iger added, "Younger audiences in particular are huge consumers of video games. In fact, among millennials, Gen Z and Gen Z is a significant amount of time spent on screen-based platforms, playing video games. This new universe from Disney and Epic provides us with a tremendous opportunity to not only meet more consumers where they are and to allow more audiences to cultivate a bond with Disney's iconic brands and franchises, including Marvel, Star Wars, and much more." The $1.5 billion transaction is subject to customary closing conditions, including regulatory approvals. In addition to being a world-class games experience and interoperating with Fortnite, the new persistent universe will offer a multitude of opportunities for consumers to play, watch, shop and engage with content, characters and stories from Disney, Pixar, Marvel, Star Wars, Avatar and more. Fortnite teased the partnership in a new video posted on YouTube. The official announcement can be read here.

An anonymous reader shares a report: Bethesda's upcoming Indiana Jones game is also tentatively set to launch on Sony's PlayStation 5 console. We got our first glimpse of Indiana Jones and the Great Circle during Microsoft's Xbox Developer Direct event last month, where it was announced for Xbox and PC. A source familiar with Microsoft's plans tells The Verge that Bethesda is also considering bringing Indiana Jones and the Great Circle to PS5.

A new multi-platform approach for certain Xbox games is emerging inside Microsoft, we're told, with the company weighing up which titles will remain exclusive and others that will appear on Switch or PS5 in the future. Indiana Jones appears to be part of this new wave of multi-platform games. While Bethesda will launch its Indiana Jones game first as an Xbox console exclusive, it's currently set to have a rather short period of exclusivity we're told. A release for PS5 is being considered for some months later, with Bethesda tentatively targeting a December 2024 launch for the Xbox and PC versions.

Kyle Orland reports via Ars Technica: Even massive Sega fans would be forgiven for not being too familiar with the Sega AI Computer. After all, the usually obsessive documentation over at Sega Retro includes only the barest stub of an information page for the quixotic, education-focused 1986 hardware. Thankfully, the folks at the self-described "Sega 8-bit preservation and fanaticism" site SMS Power have been able to go a little deeper. The site's recently posted deep dive on the Sega AI Computer includes an incredible amount of well-documented information on this historical oddity, including ROMs for dozens of previously unpreserved pieces of software that can now be partially run on MAME. [...]

While the general existence of the Sega AI Computer has been known in certain circles for a while, detailed information about its workings and software was extremely hard to come by, especially in the English-speaking world. That began to change in 2014 when a rare Yahoo Auctions listing offered a boxed AI Computer along with 15 pieces of software. The site was able to crowdfund the winning bid on that auction (which reportedly ran the equivalent of $1,100) and later obtained a keyboard and more software from the winner of a 2022 auction. SMS Power notes that the majority of the software it has uncovered "had zero information about them on the Internet prior to us publishing them: no screenshots, no photos or scans of actual software." Now, the site's community has taken the trouble to preserve all those ROMs and create a new MAME driver that already allows for "partial emulation" of the system (which doesn't yet include a keyboard, tape drive, or speech emulation support).

That dumped software is all "educational and mostly aimed at kids," SMS Power notes, and is laden with Japanese text that will make it hard for many foreigners to even tinker with. That means this long-lost emulation release probably won't set the MAME world on fire as 2022's surprise dump of Marble Madness II did. Still, it's notable how much effort the community has put in to fill a formerly black hole in our understanding of this corner of Sega history. SMS Power's write-up of its findings is well worth a full look, as is the site's massive Google Drive, which is filled with documentation, screenshots, photos, contemporaneous articles and ads, and much more.

Palworld, a viral "Pokemon with guns" game, has become Microsoft's biggest third-party launch on Game Pass. According to developer Pocketpair, the game sold 12 million copies on Steam and seven million on Xbox since its January 19 launch. A million of the copies were sold in its first eight hours. Engadget reports: In addition to being the biggest third-party Game Pass launch ever, Palworld had the largest third-party day-one launch on Xbox Cloud Gaming (included with Game Pass Ultimate). The game's highest peak since launch was nearly three million daily active users on Xbox. Microsoft says it was the most-played game on Xbox platforms during that period.

Palworld uses Pokemon-esque characters and themes -- enough to catch the attention of Nintendo's lawyers. It has battles with monsters similar to those in the creature-collecting series, including the ability to capture them inside a sphere after winning. But Palworld also includes biting social commentary and incorporates themes you'd never see in Pokemon -- like labor exploitation. "Don't worry, there are no labor laws for Pals," a game FAQ reads. One of the title's trailers showed a player circling hard-at-work Pals with an assault rifle. "Creating a productive base like this is the secret to living a comfortable life in Palworld," the narration reads.

An anonymous reader quotes a report from TechCrunch: The pace is picking up for the Apple Vison Pro apps ahead of the spatial computing device's Friday launch as developers ready their apps for the new platform. While just last week, only 150-plus apps had been specifically designed for the Vision Pro so far, according to a third-party analysis of the App Store, Apple announced today that more than 600 new apps and games are being readied for the Vison Pro ahead of its debut. These join the more than 1 million already compatible apps across iOS and iPadOS, the company says. [...]

The company says more than 600 apps and games have been designed to take advantage of the Vision Pro's capabilities and its 3D user interface that's navigated using your eyes, hands and voice. Several streaming apps have already announced their support, including Disney+, ESPN, MLB, PGA Tour, Max, Discovery+, Amazon Prime Video, Paramount+, Peacock, Pluto TV, Tubi, Fubo, Crunchyroll, Red Bull TV, IMAX, TikTok and MUBI. The PGA Tour Vision app offers a golf game with real-time shot tracking across models of real golf courses, while the NBA app will allow streaming up to five broadcasts live or on-demand at once, Apple notes. Red Bull TV will include 3D maps of races. Soccer fans will also be able to stream MLS Season Pass via Apple's own Apple TV app. That app will offer access to Apple's Originals, more than 200 3D movies and Apple Immersive Video.

Embracer Group has canceled a Deus Ex game at its Eidos studio that's been in development since 2022. The company also announced that it's letting go of 97 game developers and support staff. "The global economic context, the challenges of our industry and the comprehensive restructuring announced by Embracer have finally impacted our studio," wrote Eidos Montreal. Eidos doesn't mention the canceled game. The Verge reports: Embracer snapped up both Eidos Montreal and Crystal Dynamics from Square Enix in May 2022, putting the studios behind Tomb Raider, Deus Ex, and Thief under one umbrella. That November, Schreier tweeted that a new Deus Ex was now "very very early" in development, and it appears that's the game now canceled.

It's been eight years since Deus Ex: Mankind Divided ended on a largely unsatisfying cliffhanger, and it doesn't sound like we're going to get a resolution anytime soon. Sources told Schreier in 2017 that an earlier Mankind Divided sequel had been canceled, too. What's more, Embracer decided to erase the mobile game Deus Ex Go from existence, ripping it away from people who'd already paid, though I hear it may still be playable if you have it downloaded.

Halo — the TV series — launches its second season on February 8th. But today a trailer premiered during halftime of the pre-Super Bowl football playoff.

Gizmodo reports: Even though the Covenant are the other side of Halo's ongoing conflict, the first season of Paramount+'s TV series largely represented them through a human proxy named Makee. With the upcoming second season, the coalition of alien races is set to become a more prominent threat, and that means they'll be getting more proper screentime.
IGN had written that Season 1 "isn't a perfect adaptation of the games, but it ultimately succeeds in expanding the series' mythology and taking a more character-driven approach to Master Chief's adventures." This week Paramount+ also released a 28-minute compilation of "Epic Battle Scenes from Season 1, a season which reportedly cost $200 million to film.

And now the entertainment site Collider reports on what comes next: While on the set for Halo Season 2, Collider's Steve Weintraub and some other reporters got the chance to sit down with stars Schreiber and Kate Kennedy to discuss how the show will further flesh out the Covenant in the upcoming episodes. Part of that involves expanding their arsenal with new vehicles like the corvette, a class of ships used in the Halo canon by the Covenant for reconnaissance, stealth, and much more. Kennedy placed it among her favorite Season 2 set designs, saying... "It's huge, and what the set guys did for it, and the art department, is really, really impressive. They turned it around so quickly, and it's, like, awe-inspiring, it's huge."

Aside from making the Covenant more formidable, Season 2 will also focus on making them more understandable. Part of that involves diving into the thought process of key players within the alien faction, including two that Schreiber could tease. "Yeah, we definitely go into the Covenant mind-state, mentality," he said... In future seasons, Schreiber believes Halo will only continue to develop the Covenant, their motives, and the relationships and allegiances within the coalition as the story of intergalactic war unfolds.

Nintendo plans to launch a new 8-inch LCD-equipped Switch game console this year, well-regarded analyst firm Omdia said Friday [unpaywalled-link]. Bloomberg: The new device from the Kyoto-based games maker will be responsible for a doubling in shipments of so-called amusement displays in 2024, Hayase said in Tokyo on Friday. His research focuses on small and medium displays and he bases annual forecasts on checks with companies in the supply chain. Nintendo's seven-year-old Switch has sold over 132 million units and is approaching the end of its life cycle. The company has been tight-lipped about any potential successor, but expectations have narrowed to this year's holiday period for the release of the next generation.

PlayStation 5 system update blocks Cronus Zen controller adapter. The $100+ device promises controller compatibility but also enables gameplay "amplification." Sony crackdown follows concerns over GamePacks providing unfair advantages in Call of Duty and other online multiplayer titles. Cronus admits no timeframe for a fix. Workaround requires avoiding update or using Remote Play.

Microsoft is laying off 1,900 workers -- or around 8% of Microsoft Gaming's 22,000 employees. The majority of layoffs are at Activision Blizzard, though cuts will impact Xbox and ZeniMax employees, too. The memo from Microsoft Gaming chief Phil Spencer: It's been a little over three months since the Activision, Blizzard, and King teams joined Microsoft. As we move forward in 2024, the leadership of Microsoft Gaming and Activision Blizzard is committed to aligning on a strategy and an execution plan with a sustainable cost structure that will support the whole of our growing business. Together, we've set priorities, identified areas of overlap, and ensured that we're all aligned on the best opportunities for growth.

As part of this process, we have made the painful decision to reduce the size of our gaming workforce by approximately 1900 roles out of the 22,000 people on our team. The Gaming Leadership Team and I are committed to navigating this process as thoughtfully as possible. The people who are directly impacted by these reductions have all played an important part in the success of Activision Blizzard, ZeniMax and the Xbox teams, and they should be proud of everything they've accomplished here. We are grateful for all of the creativity, passion and dedication they have brought to our games, our players and our colleagues. We will provide our full support to those who are impacted during the transition, including severance benefits informed by local employment laws. Those whose roles will be impacted will be notified, and we ask that you please treat your departing colleagues with the respect and compassion that is consistent with our values.

Looking ahead, we'll continue to invest in areas that will grow our business and support our strategy of bringing more games to more players around the world. Although this is a difficult moment for our team, I'm as confident as ever in your ability to create and nurture the games, stories and worlds that bring players together.

The Pokemon Company said Thursday it has not granted any permission to "another company," referring to viral new game Palworld-developer Pocketpair, to use Pokemon intellectual property or assets and "intends to investigate and take appropriate measures" against the fast-growing survival game operator. From a report: The statement is Pokemon Company's first acknowledgement of Palworld's fast-growing survival title, which has sold over 8 million copies in less than six days, exceeding the performance of even the most popular AAA titles. But as TechCrunch previously reported, Palworld is also attracting a growing number of fans of Japan's legendary firm over perceived plagiarism and uncanny resemblance. However, its fusion of monster collecting, automation, and survival/crafting mechanics has struck a chord with players nonetheless.

Netflix said that user engagement with games on the service tripled in 2023. Engadget: "[Despite] games still being small, and certainly not yet material relative to our film and series business, we're pleased with this progress," the company said in its earnings report on Tuesday. As an example, the company pointed to the addition of the Grand Theft Auto trilogy to the service last year, although it isn't clear how much the trilogy, which only arrived on Netflix on December 14, helped drive engagement in the final two weeks of the year. Netflix said that Grand Theft Auto has become its "most successful launch to date" in terms of installs and engagement. It didn't say how many people had downloaded the trilogy since it was released on the platform, however. Some customers had signed up for Netflix just to play the Grand Theft Auto games, the company said.

Beijing has quietly pulled the proposed curbs on the video game industry from the official website, weeks after the draft guidelines wiped tens of billions of dollars off the market value of local titans. From a report: The link to the draft rules was no longer accessible as of this morning, Haitong Securities reported earlier on Tuesday. Shares of Tencent and NetEase jumped on the news. "This could possibly indicate that there will be further changes in the new measures," wrote Haitong analysts in the note. The move follows Beijing also removing a key official -- the head of the publication bureau of Communist Party's Propaganda Department -- over the handling of the release of the draft rules, which caught investors and gaming giants by surprise.

Steam's newest hit survival game, Palworld, has been accused of plagiarising designs from Pokemon, as social media users negatively highlight its creator's historical association with generative AI tools. VideoGamesChronicle: Palworld by Japanese studio Pocketpair released into early access on PC and Xbox on Friday, and immediately became a breakout success, with its creator claiming 2 million sales in 24 hours. The huge launch exposure inevitably reignited discourse that has followed Palworld since its announcement, around its character designs' apparent similarities to Pokemon. Although the gameplay of Palworld is closer to survival games like Ark and Rust than Game Freak's series, many social media users have noted the obvious influences its character designs have taken from the Nintendo series.

Following Palworld's release on Friday, some X users collated perceived similarities between Palworld's 'Pals' and Pokemon. "It's not even subtle about its rip offs, how much else has it stolen?" wrote one user. Another added: "I want to like Palworld, but I don't know if I can support running existing Pokemon through a fusor and passing them off as 'new' IP." The situation is further muddled in the eyes of some by Pocketpair's historical relationship with generative AI tools. Artist Zaytri noted on X that one of its previous titles was 'AI: Art Imposter,' a game which literally utilises an AI image generator as its core mechanic. The user also highlighted multiple historical X posts by Pocketpair's CEO Takuro Mizobe, in which he appeared to praise the potential of AI image generators for content creation.

Kevin Purdy reports via Ars Technica: Sometimes, a great song can come from great pain. The Game Boy Advance (GBA), its software having crashed nearly two hours ago, will, for example, play a tune based on the game inside it. And if you listen closely enough -- using specialty hardware and code -- you can tell exactly what game it was singing about. And then theoretically play that same game. This was discovered recently by TheZZAZZGlitch, whose job is to "sadistically glitch and hack the crap out of Pokemon games. It's "hardly a ready-to-use solution," the modder notes, as it requires a lot of tuning specific to different source formats. So while there are certainly easier ways to get GBA data from a cartridge, none make you feel quite so much like an audio datamancer.

After crashing a GBA and recording it over four hours, the modder saw some telltale waveforms in a sound file at about the 1-hour, 50-minute mark. Later in the sound-out, you can hear the actual instrument sounds and audio samples the game contains, played in sequence. Otherwise, it's 8-bit data at 13,100 Hz, and at times, it sounds absolutely deranged. "2 days of bugfixing later," the modder had a Python script ready that could read the audio from a clean recording of the GBA's crash dump. Did it work? Not without more troubleshooting. One issue with audio-casting ROM data is that there are large sections of 0-byte data in the ROM, which are hard to parse as mute sounds. After running another script that realigned sections based on their location in the original ROM, the modder's ROM was 99.76 percent accurate but "still didn't boot tho." TheZZAZZGlitch later disclaimed that, yes, this is technically using known ROM data to surface unknown data, or "cheating," but there are assumptions and guesses one could make if you were truly doing this blind.

The next fix was to refine the sound recording. By recording three times and merging them with a "majority vote" algorithm, their accuracy notched up to 99.979 percent. That output ROM booted -- but with glitched text and a title screen crash. After seven different recordings are meshed and filtered for blank spaces, they achieve 100 percent parity. You can watch the video describing this feat here. Used source code is also available under the file name "gbacrashsound_dumper.zip."