Microsoft quietly teased its next-generation Xbox by showcasing its collaboration with Asus "to bring two Xbox Ally handhelds to the market later this year," writes The Verge's Tom Warren. From the report: The Xbox Ally handhelds run Windows, but the Xbox team has worked with Windows engineers to boot these PC handhelds into a full-screen Xbox UI. The Windows desktop doesn't even fully load, and you use the Xbox app UI as a launcher to get to all your games (even Steam titles) and apps like Discord. While the combination of Windows and Xbox here is intriguing, it's the way that Microsoft is positioning these devices that really caught my attention.

"This is an Xbox," said Microsoft during the reveal, clearly expanding its marketing push beyond a single console to every screen and device. It all felt like a true Xbox handheld reveal. There was even an 11-minute-long behind-the-scenes video on the Xbox Ally handhelds, filmed in a similar style to Microsoft's "Project Scorpio" Xbox One X reveal from nearly nine years ago. "This is a breakthrough moment for Xbox," Carl Ledbetter, a 30-year Microsoft design veteran, says in the video. Ledbetter helped design the original IntelliMouse, the Xbox 360 Slim, the Xbox One X, and plenty of other Microsoft devices. When Ledbetter is involved, you know it's more than just a simple partner project with Asus.

"For the first time, a player is going to be able to hold the power of the Xbox experience in their hand, and take it with them anywhere they want to go," says Xbox president Sarah Bond, in the same video. Microsoft thinks of the Xbox Ally handhelds as Xbox consoles with the freedom of Windows, and I think the next-gen Xbox is going to look very similar as a result. Related

Nintendo's new Switch 2 console sold a record 3 million units after its launch Thursday. But then today Microsoft announced their own upcoming handheld gaming device that's Xbox-branded (and Windows-powered).

Working with ASUS' ROG division, they build a device that weighs more than the Nintendo Switch 2, and "is marginally heavier than the Steam Deck," reports Engadget. But "at least those grips look more ergonomic than those on the Nintendo Switch 2 (which is already cramping my hands) or even the Steam Deck." There are two variants of the handheld: the ROG Xbox Ally and ROG Xbox Ally X. Microsoft didn't reveal pricing, but the handhelds are coming this holiday... Critically, Microsoft and ROG aren't locking the devices to only playing Xbox games (though you can do that natively, via the cloud or by accessing an Xbox console remotely). You'll be able to play games from Battle.net and "other leading PC storefronts" too. Obviously, there's Game Pass integration here, as well as support for the Xbox Play Anywhere initiative, which enables you to play games with synced progress across a swathe of devices after buying them once...

There's a dedicated physical Xbox button that can bring up a Game Bar overlay, which seemingly makes it easy to switch between apps and games, tweak settings, start chatting with friends and more... You'll be able to mod games on either system as well.

The Xbox Ally is powered by the AMD Ryzen Z2 A Processor, and has 16GB of RAM and 512GB of SSD storage. The Xbox Ally X is the more powerful model. It has a AMD Ryzen AI Z2 Extreme processor, 24GB of RAM and 1TB of storage. They each have a microSD card reader, so you won't need to worry about shelling out for proprietary storage options to have extra space for your games... Both systems boast "HD haptics..." Both systems should be capable of outputting video to a TV or monitor, as they have two USB-C ports with support for DisplayPort 2.1 and Power Delivery 3.0.
"Microsoft has needed to respond to SteamOS ever since the Steam Deck launched three years ago," argues The Verge, "and it has steadily been tweaking its Xbox app and the Xbox Game Bar on Windows to make both more handheld-friendly..." But there was always a bigger overhaul of Windows required, and we're starting to see parts of that today. "The reality is that we've made tremendous progress on this over the last couple of years, and this is really the device that galvanized those teams and got everybody marching and working towards a moment that we're just really excited to put into the hands of players," says Roanne Sones, corporate vice president of gaming Devices and ecosystem at Xbox, in a briefing with The Verge...

I'll need to try this new interface fully to really get a feel for the Windows changes here, but Microsoft is promising that this isn't just lipstick on top of Windows. "This isn't surface-level changes, we've made significant improvements," says Potvin. "Some of our early testing with the components we've turned off in Windows, we get about 2GB of memory going back to the games while running in the full-screen experience."

TweakTown writes that the Switch 2 "has reportedly beaten the record for the most-sold console within 24 hours and is on track to shatter the two-month record," selling over 3 million units and tripling the PlayStation 4's previous launch day sales.

So Nintendo's first console in 8 years becomes "one of the most successful hardware releases of all time," writes Barron's, raising hopes for the future: [2017's original Switch] ultimately sold more than 152 million units... Switch 2's big advantage is its backward compatibility, allowing it to play current-generation Switch games and giving gamers solace that their large investments in software are intact... Many older Switch games also play better on the Switch 2, taking advantage of the extra horsepower.
Bloomberg writes that its bigger screen and faster chip "live up to the hype: Despite the hype and a $150 increase over the launch price for the original, the second-generation system manages to impress with faster performance, improved graphics, more comfortable ergonomics and enough tweaks throughout to make this feel like a distinctly new machine... This time, it's capable of outputting 4K resolution and more impactful HDR video to your TV screen... It's a bigger, faster, more polished version of a wildly successful gadget.
The "buzzy launch drew long lines" at retailers like Walmart, Target, Best Buy, and Gamestop, according to the article. (See the photos from AOL.com and USA Today.) "The era of spending hours waiting in line for the latest iPhone is long gone, but the debut of a new video game console is still a rare enough event that Nintendo fans didn't think twice about driving to retailers in the middle of the night to secure a Switch 2."

The Verge also opines that "the Switch 2's eShop is much better," calling it "way faster... with much less lag browsing through sections and loading up game pages."

Or, as Barron's puts it, "Ultimately, Nintendo is winning because it has a different strategy than its competition, the Sony PlayStation and Microsoft Xbox. Instead of trying to appeal to tech snobs like me, who are obsessed with graphics resolution and hardware statistics like teraflops, Nintendo focuses on joy and fun."

Amazon has launched a new innovation-focused team called ZeroOne, led by Xbox co-creator J Allard, to develop breakthrough consumer products across hardware and software. CNBC reports: The ZeroOne team is spread across Seattle, San Francisco and Sunnyvale, California, and is focused on both hardware and software projects, according to job postings from the past month. The name is a nod to its mission of developing emerging product ideas from conception to launch, or "zero to one." [...] The new group is being led by J Allard, who spent 19 years at Microsoft, most recently as technology chief of consumer products, a role he left in 2010, according to his LinkedIn profile. He was a key architect of the Xbox game console, as well as the Zune, a failed iPod competitor.

Allard joined Amazon in September, and the company confirmed at the time that he would be part of the devices and services team under Panos Panay, who left Microsoft for Amazon in 2023 to lead the group. An Amazon spokesperson confirmed Allard oversees ZeroOne but declined to comment further on the group's work. The job postings provide few specific details about what ZeroOne is building, though one listing references working on "conceiving, designing, and bringing to market computer vision techniques for a new smart-home product." Another post for a senior customer insights manager in San Francisco says the job entails owning "the methodology and execution of concept testing and early feedback for ZeroOne programs." "You'll be part of a team that embraces design thinking, rapid experimentation, and building to learn," the description says. "If you're excited about working in small, nimble teams to create entirely new product categories and thrive in the ambiguity of breakthrough innovation, we want to talk to you."

Amazon has pulled in staffers from other business units that have experience developing innovative technologies, including its Alexa voice assistant, Luna cloud gaming service and Halo sleep tracker, according to Linkedin profiles of ZeroOne employees. The head of a projection mapping startup called Lightform that Amazon acquired is helping lead the group. While Amazon is expanding this particular corner of its devices group, the company is scaling back other areas of the sprawling devices and services division.

Microsoft has officially cited Apple's App Store policies as the roadblock preventing its Xbox mobile store launch promised for July 2024. In an amicus brief supporting Epic Games filed this week, Microsoft alleged that Apple's "anti-steering policies" have "stymied" its mobile store ambitions despite a court injunction allowing developers to advertise alternative payment methods.

The brief challenges Apple's attempt to overturn this crucial ruling, which enabled Fortnite's App Store return with external payment links. Microsoft argues that launching its store under threat of Apple potentially winning a temporary stay creates significant business risk. The restrictions also impact Microsoft's Xbox mobile app functionality.

An anonymous reader shares a report: When Microsoft announced new Surface devices earlier this week, we noted that there wasn't a lot of daylight between the starting prices of the new but lower-end devices ($799 for the 12-inch Surface Pro, $899 for the 13-inch Surface Laptop) and the starting prices of the older-but-higher-end Surfaces from last spring ($999 for both). It appears Microsoft has quietly solved this problem by discontinuing the 256GB versions of the 13.8-inch Surface Laptop 7 and the 13-inch Surface Pro 11.

Microsoft's retail pages for both devices list only 512GB and 1TB configurations, with regular prices starting at $1,199. Though not technically a price hike -- the 512GB versions of both devices also cost $1,199 before -- it does amount to an effective price increase for last year's Surface hardware, especially given that both devices have user-replaceable storage that can easily be upgraded for less than the $200 that Microsoft charged for the 256GB-to-512GB upgrade.

The upshot is that the new Surface PCs make more sense now than they did on Tuesday in relative terms, but it's only because you'll pay more to buy a Surface Pro 11 or Surface Laptop 7 than you would before. The 15-inch version of the Surface Laptop 7 still lists a 256GB configuration and a $1,299 starting price, but the 256GB models are currently out of stock.

The highest-rated video games of 2025 are all budget-priced titles, with Metacritic top performers Clair Obscur: Expedition 33, Blue Prince, and Split Fiction costing just $50, $30, and $50 respectively. This comes as Microsoft announces certain Xbox titles will now cost $80, following Nintendo's similar price hike for Mario Kart on Switch 2.

Clair Obscur, developed by a small French studio, sold 1 million copies in its first week. Split Fiction, despite being published by EA, was created by a small Stockholm team and has reached 2 million sales. Blue Prince, a puzzle-roguelike largely created by a single developer in Los Angeles, is showing strong performance on Steam, Bloomberg reports.

All three games share key traits: they use commercially available engines, take creative risks that big-budget projects couldn't afford, and target specific player demographics rather than trying to appeal broadly. The contrast is striking -- Clair Obscur's developers celebrated reaching 1 million sales while EA declared Dragon Age: The Veilguard a failure with similar numbers, underscoring the economic realities of different development scales.

Microsoft is raising prices for Xbox consoles globally, with the flagship Series X jumping $100 to $599.99 in the US. The more affordable Series S will increase by $80 to $379.99, while game prices will reach $80 later this year.

The company cited "market conditions and the rising cost of development" in a statement, adding that it continues to focus on "offering more ways to play more games across any screen and ensuring value for Xbox players."

An anonymous reader quotes a report from TechCrunch: Figma has sent a cease-and-desist letter to popular no-code AI startup Lovable, Figma confirmed to TechCrunch. The letter tells Lovable to stop using the term "Dev Mode" for a new product feature. Figma, which also has a feature called Dev Mode, successfully trademarked that term last year, according to the U.S. Patent and Trademark office. What's wild is that "dev mode" is a common term used in many products that cater to software programmers. It's like an edit mode. Software products from giant companies like Apple's iOS, Google's Chrome, Microsoft's Xbox have features formally called "developer mode" that then get nicknamed "dev mode" in reference materials.

Even "dev mode" itself is commonly used. For instance Atlassian used it in products that pre-date Figma's copyright by years. And it's a common feature name in countless open source software projects. Figma tells TechCrunch that its trademark refers only to the shortcut "Dev Mode" -- not the full term "developer mode." Still, it's a bit like trademarking the term "bug" to refer to "debugging." Since Figma wants to own the term, it has little choice but send cease-and-desist letters. (The letter, as many on X pointed out, was very polite, too.) If Figma doesn't defend the term, it could be absorbed as a generic term and the trademarked becomes unenforceable.

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.

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..."

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