Xbox chief and Microsoft Gaming CEO Phil Spencer is leaving Microsoft after nearly 40 years at the company. "Meanwhile, Xbox President Sarah Bond, "long thought by many both inside and outside of Microsoft to be Spencer's heir apparent, has resigned," reports IGN. From the report: The new CEO of Microsoft Gaming will be Asha Sharma, currently the President of Microsoft's CoreAI product. Finally, Xbox Game Studios head Matt Booty is being promoted to Chief Content Officer and will work closely with Sharma. "I want to thank Phil for his extraordinary leadership and partnership," Microsoft CEO Satya Nadella said in an email sent to Microsoft staff. "Over 38 years at Microsoft, including 12 years leading Gaming, Phil helped transform what we do and how we do it." [...]

Spencer was named Head of Xbox in March of 2014, when he was tasked with righting a ship that had made a number of product choices and policy decisions that rubbed core gamers the wrong way in the run-up to the launch of the Xbox One in Fall 2013. Long hailed by gamers as being one of their own, Spencer could frequently be found on Xbox Live, playing games regularly with fellow Xbox gamers and racking up a healthy Gamerscore. His first major move when put in charge was decoupling the Kinect 2.0 peripheral from the Xbox One package, thus immediately reducing the new console's price by $100 to $399, matching the day-one price of Sony's PlayStation 4. He spearheaded the much-heralded backwards compatibility movement within Xbox, the Xbox Game Pass service was born under his watch, and accessibility made major advances during his tenure in both hardware and software. Xbox Play Anywhere, which sought to let gamers play their Xbox games on any device, be it a PC, console, or handheld, isn't new but has been a big recent focal point.

Spencer's time running Xbox will perhaps be most remembered for Microsoft's $69 billion acquisition of Activision-Blizzard-King in 2022, which took almost two years to achieve regulatory approval from various agencies around the world. But Spencer began trying to solve for Xbox's dearth of first-party games in 2018, when the first wave of studio acquisitions occurred. Prior to the Activision deal, Spencer's biggest move came with the $7.5 billion acquisition of ZeniMax, parent company of Bethesda, in 2020. The deal gave Xbox total ownership of Bethesda Game Studios and its Fallout and Elder Scrolls franchises along with id Software and its Doom and Quake IPs, among many others. Questions arose from there about whether or not that meant all of Xbox's new studios would produce games exclusively for Xbox consoles, and while some games were kept off of PlayStation platforms temporarily, many weren't and most now seem to come to PS5 eventually, if not on day one.

Mark Fischbach, the YouTube creator known as Markiplier who has spent nearly 15 years building an audience of more than 38 million subscribers by playing indie-horror video games on camera, has pulled off something that most independent filmmakers never manage -- a self-financed, self-distributed debut feature that has grossed more than $30 million domestically against a $3 million budget.

Iron Lung, a 127-minute sci-fi adaptation of a video game Fischbach wrote, directed, starred in, and edited himself, opened to $18.3 million in its first weekend and has since doubled that figure worldwide in just two weeks, nearly matching the $19.1 million debut of Send Help, a $40 million thriller from Disney-owned 20th Century Studios. Fischbach declined deals from traditional distributors and instead spent months booking theaters privately, encouraging fans to reserve tickets online; when prospective viewers found the film wasn't screening in their city, they called local cinemas to request it, eventually landing Iron Lung on more than 3,000 screens across North America -- all without a single paid media campaign.

Autodesk has sued Google in San Francisco federal court, alleging the search giant infringed its "Flow" trademark by launching competing AI-powered software for movie, TV and video game production in May 2025.

Autodesk says it has used the Flow name since September 2022 and that Google assured it would not commercialize a product under the same name -- then filed a trademark application in Tonga, where filings are not publicly accessible, before seeking U.S. protection.

The original Switch is officially Nintendo's best-selling console of all time after surpassing the DS handheld in lifetime sales. From a report: In its latest earnings release, Nintendo reports that the Nintendo Switch has, as of December 31, 2025, sold 155.37 million units since its launch in 2017, compared to 154.02 million units for the 2004 Nintendo DS.

In November, Nintendo reported that the Switch and DS were neck and neck. We expected the holiday sales period would see the Switch surpass the DS, even with Nintendo announcing that primary development would focus on the Switch 2. Nintendo previously said that it would continue to sell the original Switch "while taking consumer demand and the business environment into consideration."

Nintendo has to keep selling the Switch if it wants to dethrone Sony's PlayStation 2 as the best-selling video game console of all time. The PlayStation 2, discontinued in January 2013, sold more than 160 million units over its 13-year lifespan.

An anonymous reader quotes a report from Reuters: Shares of videogame companies fell sharply in afternoon trading on Friday after Alphabet's Google rolled out its artificial intelligence model capable of creating interactive digital worlds with simple prompts. Shares of "Grand Theft Auto" maker Take-Two Interactive fell 10%, online gaming platform Roblox was down over 12%, while videogame engine maker Unity Software dropped 21%.

The AI model, dubbed "Project Genie," allows users to simulate a real-world environment through prompts with text or uploaded images, potentially disrupting how video games have been made for over a decade and forcing developers to adapt to the fast-moving technology. "Unlike explorable experiences in static 3D snapshots, Genie 3 generates the path ahead in real time as you move and interact with the world. It simulates physics and interactions for dynamic worlds," Google said in a blog post on Thursday.

Traditionally, most videogames are built inside a game engine such as Epic Games' "Unreal Engine" or the "Unity Engine", which handles complex processes like in-game gravity, lighting, sound, and object or character physics. "We'll see a real transformation in development and output once AI-based design starts creating experiences that are uniquely its own, rather than just accelerating traditional workflows," said Joost van Dreunen, games professor at NYU's Stern School of Business. Project Genie also has the potential to shorten lengthy development cycles and reduce costs, as some premium titles take around five to seven years and hundreds of millions of dollars to create.

An anonymous reader shares a report: One-third of U.S. video game industry workers say they were laid off over the past two years, according to a new survey conducted by the organizers behind the newly revamped Game Developers Conference (GDC). Based on responses from more than 2,300 gaming industry professionals, with surveys "customized for each participant group, ensuring that developers, marketers, executives, investors and others answered questions most relevant to them," the 2026 State of the Game Industry Report found that 33% of respondents in the U.S. were laid off in the past two years. AI use has grown to 36% of respondents, but sentiment has turned sharply negative: 52% now believe generative AI is harming the industry, compared to 30% last year and 18% in 2024. On the labor front, 82% of US respondents support unionization for game workers, and 62% said they're not in a union but interested in joining one. No respondents between 18 and 24 years old opposed unionization.

An anonymous reader shares a report: Video game developer and distributor Valve must face a 656 million-pound ($897.7 million) lawsuit in Britain, which alleges it charged publishers excessive commissions for its Steam online store, after a tribunal ruled on Monday the case could continue. Valve was sued in 2024 on behalf of up to 14 million people in the United Kingdom who bought games or additional content through Steam or other platforms since 2018.

Lawyers representing children's welfare advocate Vicki Shotbolt, who is bringing the case, allege Valve prevents publishers selling products more cheaply or earlier on rival platforms to Steam by imposing conditions on them. They say Valve requires users to buy all additional content through Steam if they've bought that game through the platform, effectively "locking in" users to make purchases on its platform. This allows Valve to charge "unfair and excessive" commissions of up to 30%, Shotbolt's lawyers said at a hearing in October.

The video game industry is experiencing something that most consumer-facing businesses would consider remarkable: organized online campaigns from players are actually forcing studios to cancel projects or publicly walk back any association with AI-generated content.

Running With Scissors, the publisher behind the Postal shooter franchise, recently scrapped a title after players accused its trailer of containing AI-generated graphics. Goonswarm Games, the developer behind the canceled project, subsequently shut down entirely and cited six years of lost work alongside what it described as a flood of threats and accusations.

Sandfall Interactive's "Obscur: Expedition 33" had its Indie Game Awards Game of the Year honor rescinded after the developer said it had considered AI-generated images, even though the final release contained none. Larian Studios, the developer behind Baldur's Gate 3, faced immediate backlash after CEO Swen Vincke mentioned in an interview that the company was using generative AI to "explore ideas" for an upcoming release. Vincke later clarified on X that artists use AI only for reference images the way they would use "art books or Google," and Larian executives eventually stated on Reddit that AI would play no role in final artwork.

San Diego Comic-Con changed an AI art friendly policy following an artist-led backlash last week. From a report: It was a small victory for working artists in an industry where jobs are slipping away as movie and video game studios adopt generative AI tools to save time and money. Every year, tens of thousands of people descend on San Diego for Comic-Con, the world's premier comic book convention that over the years has also become a major pan-media event where every major media company announces new movies, TV shows, and video games. For the past few years, Comic-Con has allowed some forms of AI-generated art at this art show at the convention.

According to archived rules for the show, artists could display AI-generated material so long as it wasn't for sale, was marked as AI-produced, and credited the original artist whose style was used. "Material produced by Artificial Intelligence (AI) may be placed in the show, but only as Not-for-Sale (NFS). It must be clearly marked as AI-produced, not simply listed as a print. If one of the parameters in its creation was something similar to 'Done in the style of,' that information must be added to the description. If there are questions, the Art Show Coordinator will be the sole judge of acceptability," Comic-Con's art show rules said until recently.

Amazon is expanding the Fallout universe with Fallout Shelter, a ten-episode reality competition show where contestants face survival-style challenges and moral dilemmas for a cash prize. Engadget reports: Prime Video has greenlit a unscripted reality show titled Fallout Shelter. It will be a ten-episode run with Studio Lambert, the team behind reality projects including Squid Game: The Challenge and The Traitors, as its primary producer. Bethesda Game Studios' head honcho Todd Howard is attached as an executive producer. Amazon's description of Fallout Shelter is: "Across a series of escalating challenges, strategic dilemmas and moral crossroads, contestants must prove their ingenuity, teamwork and resilience as they compete for safety, power and ultimately a huge cash prize."

[...] The name echos the free-to-play mobile game Bethesda released in 2015. Fallout Shelter lets people build and improve their out Vault-Tec residence, managing the resources for a growing cadre of underground survivors. It seems pretty likely that there will be some type of tie-in between the game and the show, but any details about that might pop up closer to when the program is ready to air. It's currently casting, and no release timeline has been shared.

Go, the ancient board game that China, Japan and South Korea all claim as part of their cultural heritage, is struggling to expand its global footprint because the three nations that dominate it cannot agree on something as basic as a common rulebook.

When Go was registered with the International Mind Sports Association alongside chess and bridge, organizers had to adopt the American Go Association's rules because the East Asian trio failed to reach consensus. In 2025, China's Ke Jie withdrew from a title match at a Seoul tournament after receiving repeated penalties for violating a rule that the South Korean Go association had introduced mid-tournament. China's Go association responded by barring foreign players, most of them South Korean, from its domestic competitions.

It also doesn't help that the game's commercial appeal is fading. Japan's Nihon Ki-in, the country's main Go association, has started exploring a potential sale of its Tokyo headquarters. Young people across the region are gravitating toward chess, shogi, and video games instead.

Ubisoft announced Wednesday it will close its studio in Halifax, Nova Scotia — two weeks after 74% of its staff voted to unionize.

This means laying off the 71 people at the studio, reports the gaming news site Aftermath: [Communications Workers of America's Canadian affiliate, CWA Canada] said in a statement to Aftermath the union will "pursue every legal recourse to ensure that the rights of these workers are respected and not infringed in any way." The union said in a news release that it's illegal in Canada for companies to close businesses because of unionization. That's not necessarily what happened here, according to the news release, but the union is "demanding information from Ubisoft about the reason for the sudden decision to close."

"We will be looking for Ubisoft to show us that this had nothing to do with the employees joining a union," former Ubisoft Halifax programmer and bargaining committee member Jon Huffman said in a statement. "The workers, their families, the people of Nova Scotia, and all of us who love video games made in Canada, deserve nothing less...."

Before joining Ubisoft, the studio was best known for its work on the Rocksmith franchise; under Ubisoft, it focused squarely on mobile games.

Ubisoft Halifax was quickly removed from the Ubisoft website on Wednesday...

Vince Zampella, the co-creator of Call of Duty and co-founder of Infinity Ward and Respawn Entertainment, died at 55 in a single-car accident in Los Angeles. According to NBC Los Angeles, "The single-car crash was reported at about 12:45 p.m. on the scenic road north of Los Angeles in the San Gabriel Mountains. The southbound car veered off the road, hit a concrete barrier and a passenger was ejected, the California Highway Patrol said. The driver was trapped in the ensuing car fire, the CHP said. The driver died at the scene and the passenger died at a hospital, authorities told NBC4 Investigates." IGN reports: Zampella was an incredibly talented game developer who changed the industry with Call of Duty, a franchise he co-created with Jason West in 2003 at Infinity Ward, the studio he co-founded with West, after previously serving as the lead designer for EA's Medal of Honor: Allied Assault. Zampella was at the center of a high-profile lawsuit against Activision that alleged that the publisher owed Zampella and the Infinity Ward team millions of dollars in unpaid Call of Duty royalties. The bitter professional divorce led to Zampella and West taking a substantial number of the Infinity Ward team with them to EA, where they co-founded Respawn Entertainment, a studio that has produced nothing but critically acclaimed hits: Titanfall, Titanfall 2, Apex Legends, Star Wars Jedi: Fallen Order, and Star Wars Jedi: Survivor. Respawn's success under Zampella led to him getting promoted twice, eventually overseeing the Battlefield franchise within his role as Group General Manager at EA.

The video games industry in 2025 finds itself caught between the familiar forces of consolidation and job losses that have plagued creative industries, and a newer development: governments and the ultra-wealthy have begun treating games as tools of political influence. Saudi Arabia's Public Investment Fund closed a $55 billion deal for EA this year and acquired Niantic, the makers of Pokemon Go, in March.

Microsoft's 2023 acquisition of Activision already signaled the direction of travel. The workforce has borne the costs of this consolidation. More than 5,000 jobs have been lost in the industry this year, and several studios have shuttered, including Monolith Productions. The instability has pushed unions into greater prominence: United Videogame Workers formed in the US and Canada in March as part of the Communications Workers of America, and the firing of 30 staff from Rockstar Games in the UK brought the IWGB Game Workers Union into the spotlight.

Meanwhile, the Trump administration has posted AI-generated images of the president as Halo's Master Chief and used Pokemon and Halo memes to recruit for ICE.

A "slew of layoffs, price hikes and studio closures" for Microsoft's Xbox "have led many to declare — not for the first time — that the Xbox is dead," reports CNBC.

Or is it just changing its business model? The company's overall gaming revenue decreased 2% year-over-year, with a 29% dip in Xbox hardware sales, according to Microsoft's first-quarter earnings for fiscal 2026. The broader console industry has been in a major slump, with hardware spending down 27% year-over-year in November, which is typically a busy shopping month, according to a recent report from research firm Circana. It was the worst November in two decades, IGN reported, citing Circana data. Combined Switch and Switch 2 unit sales were down more than 10% during the month and PS5 sales were down more than 40%, IGN said. But the Xbox Series hardware took the biggest beating, with a dramatic 70% drop in sales...Microsoft's Xbox Series S and Series X, at 1.7 million units, couldn't outsell the original Nintendo Switch, which launched in 2017 and has sold 3.4 million units so far this year, data from game sales tracking site VGChartz estimated...

Microsoft CEO Satya Nadella said in a recent interview with the TBPN podcast that the company's gaming business model will look to be "everywhere in every platform," from consoles to TV to mobile. His comments also hinted that the next Xbox may function more like a PC. "It's kind of funny people think about the console and PC as two different things," Nadella said. "We built a console because we wanted to build a better PC, which could then perform for gaming. So I kind of want to revisit some of that conventional wisdom...." A source familiar with Xbox strategy told CNBC that the company is looking at creating an open system that enables players to jump between console, PC and cloud gaming — and any form of entertainment beyond gaming. [Wedbush analyst Michael Pachter told CNBC] that while Microsoft is not completely abandoning hardware, the company is splitting its audience into existing buyers interested in specialized consoles and everyone else.

Xbox Game Pass subscription service, which gives subscribers access to games from a variety of publishers, is a clear example of this strategy... The growth in cloud gaming has been blistering. Xbox reported a record 34 million Game Pass subscribers in 2024 and a total Game Pass revenue of almost $5 billion over the last fiscal year. Xbox said in a November blog post that the number of cloud gaming hours from Game Pass subscribers was up 45% compared to the same time last year. The Microsoft subsidiary also said console players are "spending 45% more time cloud streaming on console and 24% more on other devices..."

Despite gaming's scaling limitations, Microsoft seems committed to doing what it has done with the rest of its products — moving it to the cloud... [Xbox President Sarah] Bond recently said in an interview with Mashable that the idea of exclusive games is "antiquated" as the company has leaned into cross-platform gaming... Xbox is betting that cloud and cross-platform gaming are the future. For a decade, claims have been made about the death of the Xbox, and what comes next could fully spell the end, or bring a metamorphosis.

Long-time Slashdot reader destinyland wonders if "gifts for geeks" is the next big consumer demographic: For this year's holiday celebrations, Hallmark made a special Christmas tree ornament, a tiny monitor displaying screens from the classic video game "Oregon Trail." ("Recall the fun of leading a team of oxen and a wagon loaded with provisions from Missouri to the West....") Top sites and major brands are now targeting the "tech" demographic — including programmers, sysadmins and even vintage game enthusiasts — and when Hallmark and Amazon are chasing the same customers as GitHub and Copilot, you know there's been a strange yet meaningful shift in the culture...

While AI was conquering the world, GitHub published its "Ultimate gift guide for the developer in your life" just as soon as doors opened on Black Friday. So if you're wondering, "Should I push to production on New Year's Eve?" GitHub recommends their new "GitHub Copilot Amazeball," which it describes as "GitHub's magical collectible ready to weigh in on your toughest calls !" Copilot isn't involved — questions are randomly matched to the answers printed on the side of a triangle-shaped die floating in water. "[Y]ou'll get answers straight from the repo of destiny with a simple shake," GitHub promises — just like the Magic 8 Ball of yore. "Get your hands on this must-have collectible and enjoy the cosmic guidance — no real context switching required!" And GitHub's "Gift Guide for Developers" also suggests GitHub-branded ugly holiday socks and keyboard keycaps with GitHub's mascots.

But GitHub isn't the only major tech site with a shopping page targeting the geek demographic. Firefox is selling merchandise with its new mascot. Even the Free Software Foundation has its own shop, with Emacs T-shirts, GNU beanies and a stuffed baby gnu ("One of our most sought-after items ... "). Plus an FSF-branded antisurveillance webcam guard.

Maybe Dr. Seuss can write a new book: "How the Geeks Stole Christmas." Because this newfound interest in the geek demographic seems to have spread to the largest sites of all. Google searches on "Gifts for Programmers" now point to a special page on Amazon with suggestions like Linux crossword puzzles. But what coder could resist a book called " Cooking for Programmers? "Each recipe is written as source code in a different programming language," explains the book's description... The book is filled with colorful recipes — thanks to syntax highlighting, which turns the letters red, blue and green. There are also real cooking instructions, but presented as an array of strings, with both ingredients and instructions ultimately logged as messages to the console...

Some programmers might prefer their shirts from FreeWear.org, which donates part of the proceeds from every sale to its corresponding FOSS project or organization. (There are T-shirts for Linux, Gnome and the C programming language — and even one making a joke about how hard it is to exit Vim.)

But maybe it all proves that there's something for everybody. That's the real heartwarming message behind these extra-geeky Christmas gifts — that in the end, tech is, after all, still a community, with its own hallowed traditions and shared celebrations.

It's just that instead of singing Christmas carols, we make jokes about Vim.

"Perhaps no group of fans, industry workers, and consumers is more intense about AI use than gamers...." writes New York magazine's "Intelligencer" column: Just this month, the latest Postal game was axed by its publisher, which was "overwhelmed with negative responses" from the "concerned Postal community" after fans spotted AI-generated material in the game's trailer. The developers of Arc Raiders were accused of using AI instead of voice actors, leading to calls for boycotts, while the developers of the Call of Duty franchise were called out for AI-generated assets that players found strewn across Black Ops 7.Games that weren't developed with generative AI are getting caught up in accusations anyway, while workers at Electronic Arts are going to the press to describe pressure from bosses to adopt AI tools. Nintendo has sworn off using generative AI, as has the company behind the Cyberpunk series. Valve, the company that operates Steam, now requires AI disclosures on listed games and surveys all submitters. Perhaps sensing the emergence of a new constituency, California congressman Ro Khanna responded in November to the Call of Duty backlash:"We need regulations that prevent companies from using AI to eliminate jobs to extract greater profits," he posted on X....

AI is often seen as a tool for managers to extract more productivity and justify layoffs. Among players, it can foster a sense that gamers are being tricked or ripped off, while also dovetailing with more general objections to generative AI. It can sometimes be hard to tell whether gamer backlash is a bellwether or an outlier, an early signal from our youngest major creative industry or a localized and unique fit of rage. The sheer number of incidents here suggests the former, which foretells bitter, messy, and confusing fights to come in entertainment beyond gaming — where, notably, technologies referred to as "AI" have previously been embraced with open arms.
And now "the price of the sort of memory PC gamers most want to buy has skyrocketed" (per Tom's Hardware). "The rush to build data centers is making it much more expensive to game. Nobody's going to be happy about that."

Insider Gaming shares another example of anti-AI sentiment in the gaming industry: The Indie Game Awards took place on December 18, and, as many could assume, Clair Obscur: Expedition 33 took home the awards for Game of the Year and Debut Game. However, things have changed and The Indie Game Awards are making a big decision to strip the Clair Obscur and developer Sandfall Interactive of their awards over the use of gen AI in the game.

In an announcement made on Saturday afternoon, Six One Indie, the creators of the show, said that it's removal comes after the discovery after voting was done, and the show was recorded. "The Indie Game Awards have a hard stance on the use of gen AI throughout the nomination process and during the ceremony itself," the statement reads. "When it was submitted for consideration, representatives of Sandfall Interactive agreed that no gen AI was used in the development of Clair Obscur: Expedition 33.
Polygon notes the award-stripping is "due to inclusion of generative AI assets at launch that were quickly patched out." Quotes from earlier in the year from Sandfall Interactive's FranÃois Meurisse made the rounds on social media last week amid a news cycle caught up in the use of generative AI in games... In June, the Spanish outlet El País published a story including an interview conducted around Clair Obscur's launch, in which Meurisse admitted that Sandfall used a minimal amount generative AI in some form during the game's development... Clair Obscur: Expedition 33 launched with what some suspected to be AI-generated textures that, as it clarified to El País, were then replaced with custom assets in a swift patch five days after release.

U.S. video game hardware spending fell 27% year over year in November to $695 million, according to market analyst company Circana. "This is the lowest video game hardware spending total for a November month since the $455 million reached during the November 2005 tracking period," Circana says. Furthermore, only 1.6 million units of hardware were sold in the U.S. in November, which is "the lowest total for a November month since 1995 (1.4 million)." The Verge reports: The rising costs of consoles probably didn't help. The PlayStation 5 and Xbox Series of consoles both turned five in November, but customers looking to pick up one of the consoles brand new are having to grapple with higher prices following price hikes this year. Those hikes have led to an "all-time November high" for the average price paid for a new unit of video game hardware of $439, Circana says -- a number that's up 11 percent from 2024. (In November 2019, the average price was $235, according to Circana analyst Mat Piscatella.)

An anonymous reader quotes a report from Reuters: Netflix on Wednesday said it will add a soccer simulation title to its gaming portfolio, as the streaming giant looks to leverage the FIFA World Cup 2026 tournament to deepen its video game push. The soccer title will be developed and published by Delphi Interactive, which is also helping create a premium James Bond game called "007 First Light," and in association with the sport's governing body, FIFA. Netflix said the game will launch in time for the world's most-watched sporting event, scheduled to start June next year in the U.S.

id Software employees voted to form a wall-to-wall union with the CWA, covering all roles at the Doom studio. "The vote wasn't unanimous, though a majority did vote in favor of the union," notes Engadget. From the report: The union will work in conjunction with the Communications Workers of America (CWA), which is the same organization involved with parent company ZeniMax's recent unionization efforts. Microsoft, who owns ZeniMax, has already recognized this new effort, according to a statement by the CWA. It agreed to a labor neutrality agreement with the CWA and ZeniMax workers last year, paving the way for this sort of thing.

From the onset, this union will look to protect remote work for id Software employees. "Remote work isn't a perk. It's a necessity for our health, our families, and our access needs. RTO policies should not be handed down from executives with no consideration for accessibility or our well-being," said id Software Lead Services Programmer Chris Hays. He also said he looks forward to getting worker protections regarding the "responsible use of AI."