Microsoft has created a real-time AI-generated rendition of Quake II gameplay (playable on the web).

Friday Xbox's general manager of gaming AI posted the startling link to "an AI-generated gaming experience" at Copilot.Microsoft.com "Move, shoot, explore — and every frame is created on the fly by an AI world model, responding to player inputs in real-time. Try it here."

They started with their "Muse" videogame world models, adding "a real-time playable extension" that players can interact with through keyboard/controller actions, "essentially allowing you to play inside the model," according to a Microsoft blog post. A concerted effort by the team resulted in both planning out what data to collect (what game, how should the testers play said game, what kind of behaviours might we need to train a world model, etc), and the actual collection, preparation, and cleaning of the data required for model training. Much to our initial delight we were able to play inside the world that the model was simulating. We could wander around, move the camera, jump, crouch, shoot, and even blow-up barrels similar to the original game. Additionally, since it features in our data, we can also discover some of the secrets hidden in this level of Quake II. We can also insert images into the models' context and have those modifications persist in the scene...

We do not intend for this to fully replicate the actual experience of playing the original Quake II game. This is intended to be a research exploration of what we are able to build using current ML approaches. Think of this as playing the model as opposed to playing the game... The interactions with enemy characters is a big area for improvement in our current WHAMM model. Often, they will appear fuzzy in the images and combat with them (damage being dealt to both the enemy/player) can be incorrect.
They warn that the model "can and will forget about objects that go out of view" for longer than 0.9 seconds. "This can also be a source of fun, whereby you can defeat or spawn enemies by looking at the floor for a second and then looking back up. Or it can let you teleport around the map by looking up at the sky and then back down. These are some examples of playing the model."

This generative AI model was trained on Quake II "with just over a week of data," reports Tom's Hardware — a dramatic reduction from the seven years required for the original model launched in February.

Some context from The Verge: "You could imagine a world where from gameplay data and video that a model could learn old games and really make them portable to any platform where these models could run," said Microsoft Gaming CEO Phil Spencer in February. "We've talked about game preservation as an activity for us, and these models and their ability to learn completely how a game plays without the necessity of the original engine running on the original hardware opens up a ton of opportunity."
"Is porting a game like Gameday 98 more feasible through AI or a small team?" asks the blog Windows Central. "What costs less or even takes less time? These are questions we'll be asking and answering over the coming decade as AI continues to grow. We're in year two of the AI boom; I'm terrified of what we'll see in year 10."

"It's clear that Microsoft is now training Muse on more games than just Bleeding Edge," notes The Verge, "and it's likely we'll see more short interactive AI game experiences in Copilot Labs soon." Microsoft is also working on turning Copilot into a coach for games, allowing the AI assistant to see what you're playing and help with tips and guides. Part of that experience will be available to Windows Insiders through Copilot Vision soon.

To mark Microsoft's 50th anniversary, Bill Gates has released the original Altair BASIC source code he co-wrote with Paul Allen, calling it the "coolest code" he's ever written and a symbol of the company's humble beginnings. Thurrott reports: "Before there was Office or Windows 95 or Xbox or AI, there was Altair BASIC," Bill Gates writes on his Gates Notes website. "In 1975, Paul Allen and I created Microsoft because we believed in our vision of a computer on every desk and in every home. Five decades later, Microsoft continues to innovate new ways to make life easier and work more productive. Making it 50 years is a huge accomplishment, and we couldn't have done it without incredible leaders like Steve Ballmer and Satya Nadella, along with the many people who have worked at Microsoft over the years."

Today, Gates says that the 50th anniversary of Microsoft is "bittersweet," and that it feels like yesterday when he and Allen "hunched over the PDP-10 in Harvard's computer lab, writing the code that would become the first product of our new company." That code, he says, remains "the coolest code I've ever written to this day ... I still get a kick out of seeing it, even all these years later."

The Federal Trade Commission has removed over 300 business guidance blogs published during former President Biden's term, including consumer protection information on AI and privacy lawsuits against Amazon and Microsoft, WIRED reported Tuesday, citing current and former FTC employees.

Deleted posts included guidance about Amazon's alleged use of Ring camera data to train algorithms, Microsoft's $20 million settlement over Xbox children's data collection, and compliance standards for AI chatbots. New FTC Chair Andrew Ferguson has pledged to pursue tech companies but with focus on alleged conservative censorship rather than data collection practices.

An anonymous reader shares a report: Xbox 360 modders have discovered a new way to get homebrew apps and games running on the console. A new software-only exploit known as BadUpdate allows you to use a USB key to hack past Microsoft's Hypervisor protections and run unsigned code and games.

Modern Vintage Gamer has tested BadUpdate and found that you don't even have to open up your Xbox 360 console to get it running. Unlike the RGH or JTAG exploits for the Xbox 360, this BadUpdate method just requires a USB key. If you have the time and patience to get this running successfully, you'll be able to run the Xbox 360 homebrew store which includes games, apps, emulators, utilities, and even custom dashboards.

Microsoft is preparing to launch an AI-powered Copilot for Gaming soon that will guide Xbox players through games and act as an assistant to download and launch games. From a report: Copilot for Gaming, as Microsoft is branding it, will be available through the Xbox mobile app initially and is designed to work on a second screen as a companion or assistant.

Microsoft is positioning Copilot for Gaming as a sidekick of sorts, one that will accompany you through games, offering up tips and guides and useful information about a game world. During a press briefing, Sonali Yadav, product manager for gaming AI, demonstrated several scenarios for what Copilot for Gaming could be used for. One involved a concept demo of Copilot assisting an Overwatch 2 player by coaching them on the mistakes they made when trying to push without teammates.

Microsoft plans to launch an Xbox-branded gaming handheld later in 2025 through partnership with a PC gaming manufacturer, followed by next-generation Xbox consoles targeting 2027, according to WindowsCentral. The handheld device, codenamed "Keenan," will run full Windows with Microsoft Store and PC Game Pass integration, featuring distinct Xbox design elements including an official guide button.

Microsoft is expected to use the device to test new Windows 11 "device aware" capabilities while reducing typical OEM bloatware. The next-generation Xbox console plans include a premium successor to Xbox Series X alongside Microsoft's own gaming handheld and new controller options with direct-to-cloud connectivity, the report said. These consoles will reportedly operate closer to Windows architecture, reducing developer porting workloads while maintaining backwards compatibility with legacy Xbox games.

Microsoft's newly announced Muse AI model for game development has triggered immediate backlash from industry professionals. "Fuck this shit," responded David Goldfarb, founder of The Outsiders, arguing that such AI tools primarily serve to "reduce capital expenditure" while devaluing developers' collective artistic contributions.

Multiple developers told Wired that the tool is aimed at shareholders rather than actual developers. "Nobody will want this. They don't CARE that nobody will want this," one AAA developer said, noting that internal criticism remains muted due to job security concerns amid industry-wide layoffs.

The resistance comes as developers increasingly view AI initiatives as threats to job security rather than helpful tools. One anonymous developer called it "gross" that they needed to remain unnamed while criticizing Muse, as their studio still depends on potential Game Pass deals with Microsoft. Even in prototyping, where Microsoft sees AI potential, Creative Assembly's Marc Burrage warns that automated shortcuts could undermine crucial learning experiences in game development.

An anonymous reader quotes a report from Ars Technica written by Kevin Purdy: There are only two licensed professional sports games included in Wikipedia's "List of video games notable for negative reception." Do not be fooled, however: WWE 2K20 and eFootball 2022 are just the outliers, arriving so poorly crafted as to cause notable outcry and an actual change to development plans. Most licensed professional sports games come out yearly, whether fully baked, notably improved, or not, and fans who have few other options to play with their favorite intellectual property learn to make do with them.

Not so with fans of Football Manager, a series that can be traced back in some form to 1992 that has released a game almost every year, minus one ownership shift in the early 2000s. Sports Interactive, the company behind the franchise, released a statement on Thursday (in British time) that says that "following extensive internal discussions and careful consideration," Football Manager 25 is canceled. The game was "too far away from the standards you deserve," so they are focusing on the 2026 version. [...]

The developer's statement notes that preorder customers are getting refunds. Answering a question that has always been obvious to fans but never publishers, the company notes that, no, Football Manager 2024 will not get an update with the new season's players and data. The company says it is looking to extend the 2024 version's presence on subscription platforms, like Xbox's Game Pass, and will "provide an update on this in due course." Fans eager to build out their dynasty team and end up with Bukayo Saka may be disappointed to miss out this year. But a developer with big ambitions to meaningfully improve and rethink a long-running franchise deserves some consideration amid the consternation.

Earlier this year, Russia President Vladimir Putin called on the government to develop its own domestically produced gaming consoles with proprietary operating systems and cloud-based platforms. "With Russia heavily sanctioned and looking to promote its own products, one of its in-development consoles is powered by the Elbrus processor," notes TechSpot. However, the processor is "designed primarily for domestic applications in critical infrastructure, defense, and other sensitive areas" and "can't match high-end CPUs from Intel, AMD, and Arm." From the report: The Russian government admits that this device isn't going to be on the same level as current-gen machines. "I hope my colleagues will approach this task with full responsibility and come up with something truly groundbreaking," said Anton Gorelkin, Deputy Chairman of the State Duma Committee on Information Policy. "It is obvious to everyone: Elbrus processors are not yet at the level required to compete equally with the PS5 and Xbox, which means the solution must be unconventional." Gorelkin said that Russian consoles aren't being designed only to play ports of hundreds of old, less-demanding games. He added that they should primarily serve the purpose of promoting and popularizing domestic video game products.

Another organization following Putin's instructions is Russian telecommunications firm MTS. Its console (above) will use the company's cloud-based gaming platform, called Fog Play. It allows owners of high-end PCs to rent out their computing power to those with less-powerful equipment, charging an hourly price. Those with more powerful PCs can access games on the service and use their own hardware to play them. MTS' device is expected to cost no more than $45 and come with an Xbox-like controller, suggesting it's unlikely to appeal to those who enjoy current-gen console games.

Microsoft is significantly shifting its Xbox strategy, moving away from console exclusives in a bid to reach gamers across all platforms, Windows Central reports. The company's "Project Latitude" initiative will make previously Xbox-exclusive titles available on PlayStation and other platforms, with even flagship franchises like Halo no longer guaranteed exclusivity.

This strategic pivot comes as Microsoft faces both opportunities and challenges in the gaming industry. While Xbox is seeing record users, according to company statements, the broader gaming market faces stagnant growth and rising development costs. Microsoft CEO Satya Nadella frames this as "redefining what it means to be an Xbox fan," emphasizing accessibility across devices rather than hardware loyalty.

"We're excited to be working with Microsoft to keep Xboxes running longer and out of the waste heap," iFixit's director of sustainability told The Verge. iFixit now sells genuine Xbox parts you can use to repair your Xbox Series X or S and offers official guides to help with fixes [including both the all-digital and disk drive editions]...

iFixit's Microsoft Repair Hub also features iFixit's parts for repairing Microsoft Surface devices, which it started selling in 2023. "Since we launched our Surface parts collaboration with Microsoft last year, we've been helping our customers repair their own Microsoft laptops and tablets — and it's awesome to be able to offer Xbox owners the same opportunity," says Elizabeth Chamberlain, iFixit's director of sustainability.
The article points out that iFixit also sells "nearly every part of the Steam Deck" and "a bunch of repair guides for Valve's handheld PC, too," along with genuine repair parts for Google's Pixel phones and the Pixel Tablet.

"With Microsoft, we've created a one-stop place for guides, tools, and spare parts to make self-service repair accessible to anyone," says iFixit's new web page. "Imagine how different the world would be if repairing every device could be this easy."

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.