The Verge thinks Valve "could make a play to dethrone the Sony PlayStation and Microsoft." And it's not just because there's lots of new SteamOS hardware on the way (including a wireless VR headset and a pair of trackable wands, a Steam Controller 2 gamepad, and a living room console.

"Valve has also now seemingly revealed plans for partners to create third-party SteamOS hardware too." It won't be easy to take on Sony, Microsoft, or Meta. Those companies have a lot to lose, and they're deeply entrenched. But the Steam Deck has revealed a massive weakness in each of their businesses that may take them years to correct — the desire to play a huge library of games anytime, anywhere. And while they figure that out, Valve may be building an entire new ecosystem of SteamOS hardware, one that could finally let PC and peripheral makers tap into the huge and growing library of Windows games on all sorts of different hardware without relying on Microsoft or subjecting their customers to the many annoyances of Windows...

Valve has long said it will open up SteamOS to other manufacturers, even recently committing to some direct support for rival handhelds like the Asus ROG Ally — and the other week, Valve quietly updated a document that may reveal its larger overarching strategy. It won't just leave SteamOS sitting around and hope manufacturers build something — it'll hold their hand. Valve now has an explicit label for third parties to create "Powered by SteamOS" devices, which it explicitly defines as "hardware running the SteamOS operating system, implemented in close collaboration with Valve." It additionally lets companies create "Steam Compatible" hardware that ships with "Valve approved controller inputs," as well as SteamVR hardware and Steam Link hardware that lets you stream games from one device to another...

When Valve asked PC manufacturers to sign onto its Steam Machines initiative over a decade ago, with the idea of building living room PC consoles, it asked for a leap of faith with very little to show and a tiny chance of success. It took years for Valve to even build the oddball living room controller for its Steam Machines, and it didn't get far in convincing Windows game developers to port their games to Linux. But by the time it announced the Steam Deck, Valve had hammered out a Proton software compatibility layer so good that many Windows games now run better on Linux, and created the most customizable yet familiar set of controls ever made. If manufacturers could build their own Steam Machines rather than equivalent Windows machines, they could offer better gaming products than they do today. Maybe they'd even want to release a VR headset that isn't tied to Microsoft or Meta if it doubled as a Steam Deck, portably playing decades of flatscreen games.

It's not clear any of this will pan out; Valve is an exceedingly small company that tries not to chase too many things at a time. When I speak to PC industry executives about why they pick Windows over SteamOS, some say they're concerned about whether Valve would truly be able to support them. But it's just as intriguing an idea as it was 12 years ago when Gabe Newell explained the initial vision to us, and this time, there's a far better chance it'll work.
"Today, every major PC company is building one or more Steam Deck rivals," the article points out. "But without Valve's blessing and support, they're saddled with a Windows OS that doesn't start, pause, and resume games quickly and seamlessly enough to feel portable and easy..."

"$15.8 million every 60 seconds. That's how much US consumers spent in two hours on Monday night," reports CNN, "capping off a five-day spending spree that smashed previous records." U.S. consumers spent a total of $13.3 billion on Cyber Monday, up 7.3% from the previous year, according to Adobe Analytics... Consumers spent a record $41.1 billion across the five days beginning Thanksgiving Day, according to Adobe. "While Cyber Monday remained the season's and year's biggest online shopping day, year-over-year growth was stronger on both Thanksgiving and Black Friday," Vivek Pandya, lead analyst at Adobe Digital Insights, said in a statement... The company's data projects that holiday spending from November 1 to December 31 will surpass $240 billion, up 8.4% from the previous year.

The record sales on Cyber Monday were boosted by US consumers shopping on their mobile devices, which accounted for $7.6 billion in spending. This year, 57% of online sales came through a mobile device, compared to 33% in 2019, as shopping on mobile phones has surged in popularity... Buy now, pay later" programs also contributed nearly $1 billion in spending on Cyber Monday, a record high. About 75% of these types of transactions occurred through a mobile device.

Cyber Monday shopping wasn't just confined to the US, either. Global sales reached $49.7 billion, up 3% from the previous year, according to data from Salesforce.
The top-selling items included consumer electronics like the PlayStation 5, Xbox Series X and Nintendo Switch OLED, the article points out (adding that "About 78% of all consumer smartphones and 87% of consoles were imported from China in 2023, according to a report from the Consumer Technology Association.")

More interesting statistics from CNN:

• "Discounts on apparel peaked at just over 23% off, while TVs and computers peaked at almost 22% off, according to Adobe. And the discounts might last: Adobe projects discounts of up to 18% off computers through the end of the year... "

• "For US retail sites, the share of revenue from affiliates and partners like social media influencers was 20.3% on Cyber Monday, up almost 7% from the previous year. "

• "Additionally, companies employed AI chatbots to assist consumers, like Amazon's Rufus. Traffic to retail sites from chatbots increased by nearly 2,000% on Cyber Monday, according to Adobe."

An anonymous reader shares a report: The human eye can't really tell the difference between 4K and 8K resolution. Video game console manufacturers, who have built their businesses selling increasingly powerful machines every few years, are grappling with a future where performance improvements are becoming less dramatic.

Sony Group launched its PlayStation 5 Pro console in mid-November. The $700 upgraded version of Sony's 2020 gaming machine uses AI to improve games' frame rate while maintaining exceptional image quality -- at least for 82 games that have been enhanced to take advantage of the new specs. That means gamers can see the realistic glint of their metal sword and experience smooth, sword-swinging battle action.

But despite all the fancy tech and a $200 price increase over the previous version, reviews so far haven't suggested it's a must-have machine. "It's an improvement, but there's nothing that makes it a complete generation above what the Series X offered," Daniel Ahmad, director of research and insights at Niko Partners, said. "It's a lot more difficult to distinguish the jump between each generation." The number of households with a gaming console hasn't really budged in more than a decade. Many gamers are replacing older machines more slowly, finding the one they already have is good enough.

An anonymous reader quotes a report from Ars Technica: Microsoft Flight Simulator 2024 is out today (Xbox/PC, Steam), and it packs in a whole lot of simulation. It's hard to imagine topping the 2020 version, which contained the entire world, at scale, 3D modeled and able to be flown over. It had real-time weather and rather detailed physics. You could theoretically fly a helicopter back to your high school football field and land on it, like 15-year reunion royalty.

What could come next? A lot, including a world simulation that Microsoft repeatedly describes as Earth's "full digital twin." There are few, if any, real "reviews" up yet, given the size of the game and seemingly late access for reviewers. As such, I offer up all the notable things packed into this latest release so that those with flight sticks, patience, and a desire to get way up yonder can decide whether to take off. These are the most "notable things" available in this latest release, as highlighted by Ars' Kevin Purdy:

- The file size is much smaller than the 2020 version, totaling "around 30GB"
- You can expect ~5GB an hour of streaming data (up-close data is streamed on demand; flying high-up in the skies uses pre-loaded data)
- AI learning has allowed for "4,000 times more" detail in textures and terrain meshes
- Aircraft and airports you customized or purchased are carried over from 2020 into 2024
- There's a new Career Mode, with 26 different paths
- Animals have more realistic behavior -- e.g. sheep head inside when it's raining, birds migrate, and elephants will be more aware of your flybys
- Flight Simulator 2020 will continue to get support

This week Alphabet CEO Sundar Picahi assured investors that their long-term AI focus and investment (and a "commitment to innovation") "are paying off," reports the Associated Press. Alphabet's stock has already soared 20% this year, and it's "still thriving" as the company "navigates through a pivotal shift to AI and battles regulators..." Alphabet earned $26.3 billion, or $2.12 per share during the most recent quarter, a 34% increase from a year ago. Revenue rose 15% from the same time last year to $88.27 billion... The profits would have been even higher if Google wasn't pouring so much money into building up its AI arsenal in a technological arms race that includes other industry heavyweights Microsoft, Amazon, Apple, Facebook parent Meta Platforms and rising star OpenAI. The AI investments are the primary reason Google's capital expenditures in the past quarter soared 62% from the same time last year to $13.1 billion. The AI spending will likely stay at roughly the same level during the current October-December period, and the rise even higher next year, according to Anat Ashkenazi, Alphabet's chief financial officer.

But Ashkenazi also emphasized the Mountain View, California, company will act on cost-cutting opportunities in other areas to help boost profits. Alphabet already has trimmed its payroll from more than 190,000 worldwide employees early last year to about 181,000 workers now. In an example of how AI can perform tasks that once required human brainpower, Pichai said the technology is now writing more than 25% of the company's new computer coding.
After the results, investors sent Alphabet's stock price up 5% in extended trading, the article points out. "Both Alphabet's profit and revenue increased at a brisker pace than industry analysts anticipated, thanks primarily to a moneymaking machine powered by Google's ubiquitous search engine... [Google's digital search-engine ads earned $49.39 billion, 12% more than the same quarter of 2023.] And Google's cloud division is growing at an even more robust rate, thanks to demand for AI services. The cloud division generated $11.35 billion in revenue during the past quarter, a 35% increase from last year."

And meanwhile over at Microsoft, quarterly sales surged 16% to $65.6 billion, reports the Associated Press. But again, "the company sought to assure investors its huge spending on artificial intelligence is paying off." The company has spent billions of dollars to expand its global network of data centers and other physical infrastructure required to develop AI technology... As a result, AI-related products are now on track to contribute about $10 billion to the company's annual revenue, the "fastest business in our history to reach this milestone," CEO Satya Nadella said on a call with analysts Wednesday. [Though Microsoft "hasn't yet formally reported revenue specifically from AI products," the article notes later, with Microsoft instead saying it's infused AI and Copilot into all its business segments.]
Just in the last quarter, Microsoft spent $20 billion "mostly for its cloud computing and AI needs," the article points out.

But there's still making plenty of money... The software maker also reported an 11% increase in quarterly profit to $24.7 billion, or $3.30 per share, which beat Wall Street expectations for the July-September period... Leading in sales for the quarter was Microsoft's productivity business segment, which includes its Office suite of email and other workplace products, growing 12% to $28.3 billion. Microsoft's cloud-focused business segment grew 20% from the same time last year to $24.1 billion for the three months ending Sept. 30. Its personal computing business, led by its Windows division, grew 17% to $13.2 billion. A big part of that growth came from Microsoft's Xbox video game business, which was boosted by its purchase of game publishing giant Activision Blizzard a year ago.

Microsoft's gaming division is developing prototypes for a handheld gaming device that won't launch for "a few years," gaming chief Phil Spencer said Wednesday. In an interview with Bloomberg, Spencer said that while Microsoft is actively working on prototypes, the company will first focus on improving its Xbox app performance on existing portable devices and establishing hardware partnerships.

The gaming unit wants to be "informed by learning and what's happening now" before introducing its own device, Spencer said. "Longer term, I love us building devices," Spencer said, adding that Microsoft's team "could do some real innovative work."

Ars Technica's Samuel Axon reports on Microsoft's quarterly earnings: Some investors have been uneasy about the company's aggressive spending on AI, while others have demanded it. During this quarter, Microsoft reported that it spent $20 billion on capital expenditures, nearly double what it had spent during the same quarter last year. However, the company satisfied both groups of investors, as it revealed it has still been doing well in the short term amid those long-term investments. The fiscal quarter, which covered July through September, saw overall sales rise 16 percent year over year to $65.6 billion. Despite all that AI spending, profits were up 11 percent, too. The growth was largely driven by Azure and cloud services, which saw a 33 percent increase in revenue. The company attributed 12 percent of that to AI-related products and services.

Meanwhile, Microsoft's gaming division continued to challenge long-standing assumptions that hardware is king, with Xbox content and services posting 61 percent increased year-over-year revenue despite a 29 percent drop in hardware sales. [...] The company attributed 53 points of that to the recent $69 billion Activision acquisition.

Microsoft is seeking to boost its video games business with the release of the latest instalment of the Call of Duty franchise on Friday, pushing to increase subscription revenues through the new game to offset falling Xbox console sales. Financial Times: Black Ops 6 is the first of the best-selling series to be launched on the tech giant's Game Pass subscription service. It represents the biggest test of the company's gaming strategy [non-paywalled link] since its $75bn deal to acquire Activision Blizzard -- makers of Call of Duty -- received sign-off from regulators last year. Microsoft hopes that the release will help achieve its target of reaching 110mn Game Pass subscribers by 2030, a substantial rise from 34mn in February this year.

The company has shifted its focus towards its subscription games service as hardware sales have slowed in recent years. Xbox hardware revenue fell 13 per cent year-on-year in Microsoft's fiscal 2024, which ended in June. For the first time this year, subscribers to Game Pass, who can already access a growing library of Xbox titles for as long as they keep paying a monthly fee, will be able to access the latest Call of Duty without having to pay a traditional price of $70 or more for the packaged game. Microsoft is still making the game available to buy on PlayStation, after concerns from regulators during the Activision merger probe that it might make the title exclusive to its own platform.

Microsoft will offer direct game purchases through its Xbox app for Android starting November, following a U.S. court ruling against Google's app store monopoly. The move allows Microsoft to circumvent Google's revenue cut on in-app purchases and signals renewed focus on mobile gaming, bolstered by its recent $75.4 billion Activision Blizzard acquisition.

Fourteen years after it debuted on PS3 and Xbox 360, and endless rumors later, Red Dead Redemption is finally coming to PC. From a report: It will hit the Rockstar Store, Steam and the Epic Games Store on October 29 with the Undead Nightmare standalone expansion included. Developer Double Eleven helped Rockstar with the port, which has many of the bells and whistles you'd come to expect from a PC version of a classic. Rockstar says RDR will run at up to 144Hz (no unlocked framerates, sadly) in a native 4K resolution if you have capable hardware. There's support for HDR 10 along with Ultrawide (21:9) and Super Ultrawide (32:9) monitors. You'll be able to play with a keyboard and mouse too.

Along with 343 Industries now becoming Halo Studios, future Halo games will be developed using Unreal Engine 5. The Verge's Tom Warren reports: Halo moving to Unreal Engine 5 is being positioned as the first step of a transformation for Halo Studios to change its technology, structure, processes, and even culture. "We're not just going to try improve the efficiency of development, but change the recipe of how we make Halo games," says Pierre Hintze, studio head at Halo Studios. The team building Halo will move from the studio's Slipspace Engine to Unreal, after the proprietary engine it built for Halo Infinite became difficult to use and strained development. Halo Studios has had to dedicate a lot of staff to developing the Slipspace Engine, and parts of it are almost 25 years old.

"One of the primary things we're interested in is growing and expanding our world so players have more to interact with and more to experience," says Chris Matthews, art director at Halo Studios. "Nanite and Lumen [Unreal's rendering and lighting technologies] offer us an opportunity to do that in a way that the industry hasn't seen before. As artists, it's incredibly exciting to do that work." Halo Studios isn't committing to any release dates or new Halo game announcements just yet, but the team has been building some examples of Halo running in Unreal. Dubbed Project Foundry, the work is "neither a game nor a tech demo," but more of a research, development, and training tool. It's also the foundation for how the studio is changing up the way it builds Halo games.

Project Foundry has been built as if it was a shipping game so that a bunch of it can appear in Halo games in the future. "It's fair to say that our intent is that the majority of what we showcased in Foundry is expected to be in projects which we are building, or future projects," says Hintze. Project Foundry includes more detailed landscapes for Halo biomes, as well as foliage levels we haven't seen in Halo games in the past. Master Chief's armor has even been remodeled in this footage [...]. Halo Studios is now working on multiple Halo games, while the Slipstream Engine will continue to power Halo Infinite. "We had a disproportionate focus on trying to create the conditions to be successful in servicing Halo Infinite," says Hintze. "[But switching to Unreal] allows us to put all the focus on making multiple new experiences at the highest quality possible."

An anonymous reader shares a report: Per a recent update to Microsoft's Deprecated Windows features page, Legacy DRM services utilized by Windows Media Player and Silverlight clients for Windows 7 and Windows 8 are now deprecated. This will prevent the streaming or playback of DRM-protected content in those applications on those operating systems. It also includes playing content from personal CD rips and streaming from a Silverlight or Windows 8 client to an Xbox 360 if you were still doing that.

For those unfamiliar, "DRM" refers to Digital Rights Management. Basically, DRM tech ensures that you aren't stealing or playing back pirated content. Of course, piracy still exists, but these days, most officially distributed movies, TV shows, games, etc., all involve some form of DRM unless explicitly advertised as DRM-free. DRM does seem like harmless piracy prevention on paper. Still, it hasn't been all that effective at eliminating piracy -- and where it is implemented, it mainly punishes or inconveniences paying customers. It is an excellent example of DRM's folly. Now, anyone who had previously opted into Microsoft's legitimate media streaming ecosystem with Windows 7 and 8 is being penalized for buying media legitimately since it will no longer work without them being forced to pivot to other streaming solutions.

"A two-day AI Labor Summit between AFL-CIO leaders and Microsoft executives this week reflects the tech giant's revamped approach to unions," writes GeekWire, "which includes a pledge by the company to incorporate feedback from labor unions and their members into the development of artificial intelligence."

But just two days later, "Microsoft Gaming CEO Phil Spencer announced it was game over for the jobs of another 650 Microsoft staffers (on top of an earlier 1,900 employee staff reduction)," writes long-time Slashdot reader theodp, "cuts that Spencer made clear were related to Microsoft's $69B acquisition of Activision Blizzard in 2023." Interestingly, Microsoft's Smith in October 2023 affirmed a "groundbreaking neutrality agreement" with the Communications Workers of America union (CWA) — designed to go into effect if Microsoft was successful in its acquisition of Activision Blizzard — in which Microsoft acknowledged the rights of its employees to unionize and pledged to work constructively with any who did. At the same time, Microsoft made it clear that it hoped its employees wouldn't feel the need to form or join unions, saying they would "never need to organize to have a dialogue with Microsoft's leaders."

In July 2023, the AFL-CIO applauded Microsoft's Activision Blizzard acquisition and the Microsoft-CWA agreement, which AFL-CIO union federation president Liz Shuler said "sets a new standard for respecting workers' rights in the video game industry and the larger technology sector." And in December 2023, Shuler thanked Smith for Microsoft's "absolutely historic partnership" on AI and the Future of the Workforce, which Shuler suggested "can be mutually beneficial for workers, for businesses, and for our country as a whole."
Thursday the CWA union issued critical remarks about the layoffs at Microsoft Gaming (which were later retweeted by the @AFLCIO Twitter account).

"While we would hope that a company like Microsoft with $88 billion in profits last year could achieve 'long-term success' without destroying the livelihoods of 650 of our colleagues, heartless layoffs like these have become all too common."

Microsoft is laying off a further 650 staff from its gaming business, according to a memo sent by Xbox chief Phil Spencer to staff today, September 12. From a report: In the memo, Spencer said the roles affect mostly corporate and support functions, and were made "to organize our business for long term success." He clarified that no games, devices or experiences are being canceled and no studios are being closed as part of these cuts. These latest layoffs mean Microsoft has let go of 2,550 staff from its gaming business since acquiring Activision Blizzard for $69 billion in 2023. In his memo, below, Spencer makes it clear that the cuts are related to the acquisition.

An anonymous reader shares a column: The PS5 Pro's announcement yesterday wasn't a surprise. What was a surprise was the price: at $699.99, it debuts as Sony's most expensive console ever. It brought back memories of the PS3's controversial price tag, a console that when adjusted for inflation is the same $779 price point of a PS5 Pro with the additional disc drive. It's a very expensive PlayStation, and I fear it's a test of what's to come for next-gen console pricing.

For years, console gamers have been used to purchasing hardware at a significantly reduced price compared to what you could build yourself in the PC gaming space. Yes, you can find components that match the PS5 or Xbox Series X on paper, but it's still difficult to hit the price points that consoles sell for, especially when they're discounted during promotions. Besides, the easy plug-and-play model, simplified UI, and hassle-free warranty process are all big benefits over having to build or find a good prebuilt PC and then deal with Windows and driver updates. Consoles sell in their millions because they're far more consumer-friendly than PCs.

Earlier today, Sony unveiled the $699.99 PlayStation 5 Pro -- a mid-generation upgrade model for the PlayStation 5 that requires a separate $79.99 disc drive if you want to play your physical games. As The Verge's Jay Peters writes, the announcement "may have marked the beginning of the end for game console disc drives." From the report: Microsoft is clearly eyeing the discless direction with Xbox as well. The more affordable Xbox Series S can't play discs, and there's a discless Series X in white that's set to launch later this year. Last year's giant Xbox leak revealed a cylindrical, "adorably all digital" Xbox Series X redesign too. That hasn't been announced as an official product, but it shows a disc-free future is on Microsoft's mind. It seems likely that Sony and Microsoft are testing the waters for going all-digital for the PlayStation 6 and the next generation Xbox -- or at least offering disc drives separately. It's like Apple removing the disc drive all over again.

But this time it's not just the people making the devices. Retailers are stepping back from physical media, too. Redbox is toast. Best Buy said last year that it would stop carrying physical movies, and Target recently confirmed that it would be all but ditching DVDs in its physical stores. I know movies aren't video games, but it doesn't seem like a big leap that brick-and-mortar stores might stop carrying physical video games down the line; UK retailer GAME has already ended video game trade-ins.

Microsoft is launching three new Xbox Series S / X console options in October. From a report: There's the $449.99 white discless Xbox Series X, a 2TB "Galaxy Black" special-edition Xbox Series X priced at $599.99, and a $349.99 1TB Xbox Series S. All three models will be available in the US on October 15th, with other markets to follow on October 29th.

The white coating on the exterior of this new discless Xbox Series X matches the "robot white" found on the Xbox Series S, Microsoft's smaller $299 console. While leaks of the white Xbox Series X hinted that Microsoft may upgrade the heatsink used to cool the console, the company hasn't detailed any hardware changes beyond the removal of the disc drive here.

Microsoft is notifying folks that its AI services should not be taken too seriously, echoing prior service-specific disclaimers. From a report: In an update to the IT giant's Service Agreement, which takes effect on September 30, 2024, Redmond has declared that its Assistive AI isn't suitable for matters of consequence. "AI services are not designed, intended, or to be used as substitutes for professional advice," Microsoft's revised legalese explains. The changes to Microsoft's rules of engagement cover a few specific services, such as noting that Xbox customers should not expect privacy from platform partners.

"In the Xbox section, we clarified that non-Xbox third-party platforms may require users to share their content and data in order to play Xbox Game Studio titles and these third-party platforms may track and share your data, subject to their terms," the latest Service Agreement says. There are also some clarifications regarding the handling of Microsoft Cashback and Microsoft Rewards. But the most substantive revision is the addition of an AI Services section, just below a passage that says Copilot AI Experiences are governed by Bing's Terms of Use. Those using Microsoft Copilot with commercial data protection get a separate set of terms. The tweaked consumer-oriented rules won't come as much of a surprise to anyone who has bothered to read the contractual conditions governing Microsoft's Bing and associated AI stuff. For example, there's now a Services Agreement prohibition on using AI Services for "Extracting Data."

Ibrahim Al-Nasser, a gaming enthusiast from Riyadh, Saudi Arabia, has set a Guinness World Record for the most video game consoles connected to a single television, with 444 systems hooked up simultaneously.

Al-Nasser's collection spans five decades of gaming history, from the 1972 Magnavox Odyssey to the 2023 PlayStation 5 Slim. It includes mainstream consoles like the Xbox 360 and Nintendo Switch, as well as rare items such as the Super A'Can. To manage the complex setup, Al-Nasser employs over 30 RCA switchers and 12 HDMI switchers, along with various converters for older systems. He maintains an Excel spreadsheet detailing the location and activation procedure for each console. "After a while I noticed that I had a big stack of gaming consoles that I couldn't play," Al-Nasser said. "By adding more switchers, the idea came to my mind to connect all of the gaming consoles I have to the TV then contact Guinness World Records because this project is unique."

Engadget adds: He's even organized his collection so the cables aren't showing or creating the kind of tangled mess most of us have to deal with when we have just two consoles hooked up to a single television. That may sound like a lot of video game consoles for one collection but it's far from the actual record. Linda Guillory of Garland, Texas currently holds the record for the largest collection of playable gaming systems with her collection of 2,430 items, according to Guinness World Records.

QuakeCon 2024 kicks off today with the announcement of enhanced remasters of the first two Doom games, which will feature online cross-platform deathmatch, co-op support for up to 16 players, upgraded visuals, and additional content including a new episode for Doom 2. The compilation, titled DOOM + DOOM 2, runs on the KEX Engine and will include new maps, a newly-updated soundtrack, and support for 4K resolution, with a possible free upgrade for existing console owners. IGN reports: While unconfirmed, it appears that console owners who already own DOOM or DOOM 2 will get the upgrade for free. It's currently available for purchase on Xbox Series X/S for $9.99, though it has been pulled from the Steam store. When it's released, DOOM + DOOM 2 will be perhaps the most comprehensive version of the venerable shooters to date. You can watch the trailer here.