Call of Duty: Ghosts is real, and it is the next generation of the franchise, according to publisher Activision.

Activision and developer Infinity Ward, the studio responsible for the Modern Warfare games, will fully unveil the game during Microsoft’s next-gen Xbox reveal on May 21 at 10 a.m. Pacific. The publisher also confirmed Ghosts for the PlayStation 4, the Xbox 360, the PlayStation 3, and the PC. The press release failed to mention a version for Nintendo’s Wii U. We’ve contacted the publisher to determine if it is skipping that struggling system.

For now, Infinity Ward is providing sparse details about its new first-person shooter. The studio confirmed it is leaving behind the world of Modern Warfare. Ghosts takes place in a new universe with new characters.

More important for longtime Call of Duty fans, Infinity Ward is promising a totally new “next-gen engine” to power Ghosts’ visuals. Both Infinity Ward and its sister Call of Duty developer Treyarch have used the same engine (with slight tweaks) since 2007′s Call of Duty 4: Modern Warfare.

“Infinity Ward set the gold standard for first-person action for a generation, and they’re going to do it again with Call of Duty: Ghosts,” Activision Publishing chief executive Eric Hirshberg said in a statement. “Infinity Ward is going all-in to create the next generation of Call of Duty worthy of the world’s greatest fans.”

Infinity Ward released a new Call of Duty every other year since 2005. The last three of those titles were all entries in the Modern Warfare subfranchise. Infinity Ward executive producer Mark Rubin said the studio was ready to take a bigger risk.

“Everyone was expecting us to make Modern Warfare 4, which would have been the safe thing to do,” Rubin said in a statement. “But we’re not resting on our laurels. We saw the console transition as the perfect opportunity to start a new chapter for Call of Duty. So we’re building a new subbrand, a new engine, and a lot of new ideas and experiences for our players. We can’t wait to share them with our community.”

Microsoft and Activision have also held a tight-knit relationship over the last few years when it comes to Call of Duty. The Xbox 360 has always received preferential treatment when it comes to the downloadable content. Expansions hit at least a month earlier on Microsoft’s console compared to Sony’s hardware or PC.

That partnership is likely to continue with Ghosts making its big debut at Microsoft’s next Xbox event.

“We are consistently thrilled with the overwhelming response received from critics and consumers alike to the Call of Duty series, which has firmly established its home on the Xbox 360 with the game’s largest and most engaged community,” Microsoft president of interactive entertainment Don Mattrick said. “With Call of Duty: Ghosts, we have no doubt that our longtime partners, Activision and Infinity Ward, will raise the bar higher than ever before for this incredible franchise.”

Activision still hasn’t revealed any gameplay, so expect a storm of details on May 21. GamesBeat will have full coverage of that event, Call of Duty: Ghosts, and any other Xbox-related announcements at that time.

In past years, Activision has always pushed the next Call of Duty hard with a new trailer that runs invariably during the NBA playoffs. That tradition could continue with Ghosts, although the Xbox event may fully replace a big marketing spend of that nature.

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GamesBeat 2013 is our fifth annual conference on disruption in the video game market. You'll get 360-degree perspectives from top gaming executives, developers, and analysts on what’s to come in the industry. Our theme this year is “The Battle Royal.” Check out full event details here, and grab your early-bird tickets here!

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At this point, it seems like Sony’s and Microsoft’s next-gen consoles are just more powerful iterations of the current boxes. Sure, the PlayStation 4′s graphical capabilities are impressive, but I was hoping for something a bit more futuristic from it.

Enter Microsoft’s IllumiRoom projector technology.

IllumiRoom is a coffee-table projector that can expand a game’s visuals beyond the borders of a television and to a room’s walls, furniture, and floor. The projector uses the Kinect 3D-camera sensor to understand the layout of the room so that the imagery projects properly. This means IllumiRoom can use the surfaces of your TV stand, for example, as part of the gameplay.

Check out the mind-boggling demonstration, via GamesHQMedia, of the IllumiRoom proof-of-concept from January’s Consumer Electronics Show in Las Vegas:

Microsoft released a research paper that explains IllumiRoom in detail. The document stresses that this isn’t a real product and is only a “proof of concept.” It even shows how the IllumiRoom box is just an off-the-shelf projector with a Kinect sensor hooked on its hood.

If the Xbox company can figure out how to productize IllumiRoom, then it could set the next-generation Xbox apart.

The applications are obvious from the video. Extending field of view to help highlight important objects or the direction of enemy fire alone could reduce gameplay confusion in first-person games. Turning the room into a reactive cartoon world is something that could wow casual consumers that are not normally into console gaming. This is something that an iPad can’t do.

Microsoft plans to reveal its next-gen Xbox on May 21. We’ll have more information about the console, and maybe IllumiRoom, at that time.

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GamesBeat 2013 is our fifth annual conference on disruption in the video game market. You'll get 360-degree perspectives from top gaming executives, developers, and analysts on what’s to come in the industry. Our theme this year is “The Battle Royal.” Check out full event details here, and grab your early-bird tickets here!

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The new Xbox home gaming console is official: At 10 a.m. Pacific on May 21, Microsoft will lift the veil on its next Xbox console in Washington.

Microsoft is inviting the media to its Xbox campus in Redmond, Wash., for the reveal. Xbox division president Don Mattrick will host the presentation in which the company will show off the followup to its successful Xbox 360.

We don’t know much about the next Xbox. Recent rumors suggest it’s not as powerful as the upcoming PlayStation 4, that it will require an Internet connection, and that it may have a new Kinect motion-control camera.

In February, Sony debuted its PlayStation 4. The company focused on Internet features and blockbuster games. Sony has since turned down the volume on PS4 news as it likely prepares for big reveals at the upcoming Electronic Entertainment Expo gaming conference in Los Angeles in early June.

Microsoft’s Xbox event takes place only three weeks before E3. The company is likely hoping to maintain the momentum through that important event.

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GamesBeat 2013 is our fifth annual conference on disruption in the video game market. You'll get 360-degree perspectives from top gaming executives, developers, and analysts on what’s to come in the industry. Our theme this year is “The Battle Royal.” Check out full event details here, and grab your early-bird tickets here!

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Microsoft’s Entertainment and Devices Division, which includes the Xbox 360 console, made some major gains for the company — even as sales of traditional console games and hardware has stagnated over the past year.

In the company’s financial report for its fiscal third quarter 2013, Microsoft revealed that it generated $2.53 billion in revenue through the Xbox division. That’s an increase of 56 percent from the same period in 2012. The Entertainment and Device Division also includes Windows Phone and Skype.

Additionally, the global conglomerate revealed that Xbox Live now has 46 million members, but it didn’t specify how many of those are of the paid-subscriber variety. Either way, that number is up 18 percent from last year.

“Our diverse business continues to deliver solid financial results, even as we navigate the evolving device market,” Microsoft chief financial officer Peter Klein (who is leaving the company) said in a statement. “Looking ahead, we will continue to invest in long-term growth opportunities to drive our devices and services strategy forward and deliver ongoing value to shareholders.”

Microsoft is winding down the Xbox 360 as the next generation of consoles approaches. The Xbox 360 is the dominant platform right now, but as gamers move on to the next big thing, Sony and potential new threats from Apple, Valve, and others will try to take major chunks of the $15 billion gaming industry away from Microsoft.

Industry sources inform us that Microsoft will hold a major event in May to announce the next Xbox console.

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GamesBeat 2013 is our fifth annual conference on disruption in the video game market. You'll get 360-degree perspectives from top gaming executives, developers, and analysts on what’s to come in the industry. Our theme this year is “The Battle Royal.” Check out full event details here, and grab your early-bird tickets here!

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The $15 billion video game industry is once again up for grabs as the next generation of consoles begin marching out to consumers. Nintendo already launched its Wii U, Sony recently debuted the PlayStation 4, and Microsoft … well, things are quiet at Microsoft.

The multifaceted corporation is probably keeping things hush-hush so it can wow fans with the inevitable reveal of the next Xbox, codenamed Durango. At the same time, the Xbox 360 continues to sell well (302,000 in February), and Microsoft doesn’t want to cannibalize that major source of revenue until it has to.

The company refuses to utter a word on the subject, which only makes every peep from any potential source that much louder.

“We don’t comment on rumors and speculation,” a Microsoft spokesperson told GamesBeat when we asked for comment about its next system.

Microsoft has a lot on the line. Gaming consoles are a massive tech battleground, and the Xbox 360 is currently on the king of that particular hill. The 360 has outsold the PlayStation 3 and Wii every month for the last two years, according to the NPD retail tracking firm.

Despite the silence, rumors about the Durango continue to seep out of the company’s tight grip.

We don’t know anything for sure, but a few things seem certain:

• The Durango is likely using a powerful CPU and GPU from Silicon Valley chip-vendor AMD to power its games.
• Microsoft will hold an event before or at the annual Electronic Entertainment Expo in June to reveal the console.
• A new version of Kinect is likely in the works.

Then we have a whole mess of often contradictory rumors that no one can confirm:

• Durango requires an online connection for games. (Kotaku)
• It can detect and block used games. (Kotaku)
• It requires Kinect 2.0, a more-capable version of Microsoft’s original motion-control camera. (Kotaku)
• It will work as a TV set-top box to replace your cable box. (The Verge)
• Only Kinect’s new voice features require an online connection. (VGLeaks)
• Games don’t require an online connection. (VGLeaks)
• Durango won’t block used games. (VGLeaks)
• Backward compatibility is only possible through the use of an add-on called Xbox Mini. (VGLeaks)
• Players have to install every game. That includes disc-based games. (Kotaku)
• Durango has a new controller. Xbox 360′s pad won’t work. (Kotaku)
• A new Forza racing game and Kinect fantasy game Ryse (from German developer Crytek) will launch with the Durango. (The Verge)

Does it require an Internet connection or not?

The most controversial rumor is that the Durango requires an online connection to start games. That possibility previously swirled around the PlayStation 4. Sony alleviated fan concerns by confirming that the PS4 doesn’t require a connection for games nor will it block used games.

But Microsoft isn’t commenting on this. That means it can’t even come out and clarify exactly what it’s position is on the volatile subject.

“Always-on connectivity required to play console games probably doesn’t make a lot of sense,” Baird analyst Colin Sebastian told GamesBeat. “There is a sizable base of gamers that still don’t have stable broadband access in smaller cities in Europe or rural North America.”

Nearly 30 percent of Xbox 360 owners in the U.S. had never connected their consoles to the Internet in early 2012, according to a study by data firm IDC Research.

“Even if that’s down to 25 percent today, the idea that they would launch a new platform that immediately shut out a quarter of their addressable market seems crazy to me,” IDC researcher Lewis Ward told GamesBeat. “The idea that Microsoft would be able to iron out all the bugs [inherent to always-online] even for those gamers with a sturdy web connection is also quite unlikely.”

So, where are these rumors coming from?

Ward speculates that the dev systems, which seem to be the basis for the original Kotaku rumors, require online as a security measure. Microsoft wants to trace each kit so it knows who is doing what in case things start to leak.

It’s also possible that sources are misinterpreting certain features. For example, a prominent rumor is that Durango will connect with cable boxes to provide a Google TV-style overlay. This functionality is also known as TV-over-IP, or IPTV.

“The Xbox will obviously have to be connected while users are watching IPTV, but that wouldn’t be a requirement when not watching,” Wedbush analyst Michael Pachter told GamesBeat.

But Pachter has a different theory about the source of the always-on rumblings.

“The always-connected requirement has nothing to do with TV and everything to do with games,” he said. “If it’s true, the box would be always-on, so Kinect can respond to voice commands and so games start immediately.”

But Pachter also doubts Microsoft would implement a connection requirement to start local games.

VGLeaks, a website with a decent track record on predicting these things, also pointed to the Kinect as the source of this hearsay.

It’s possible that Kinect 2.0 will work like Apple’s Siri. That voice-command service records a user’s voice, decodes it on a server, and then supplies an answer from said server. Google Now works the same way. Similarly, a next-gen Kinect may require access to a server to reach its potential if the VGLeaks source is accurate.

What the hell is an Xbox Mini?

More whispering out of VGLeaks claims Xbox Mini is an Apple TV-like system based on the Xbox 360 but without a disc drive. It will reportedly retail at $150.

“I don’t think we’re to the point, as an ecosystem, where a discless console experience could be a top seller,” said Ward. “They could do it, and maybe they have some cloud-streaming stuff that would make it compelling as a gaming-second device. If it does all the video stuff and general purpose applications first — I guess that’s conceptually possible.”

The second part of the Xbox Mini rumor, however, doesn’t seem conceptually possible.

VGLeaks’s source claims that the Durango will only have backward compatibility when gamers plug Xbox Mini into the next-gen Xbox. The report specifically cites the HD-DVD add-on for the 360 as an example. That odd device was a small box that plugged into the 360′s USB port to enable the playback of HD-DVDs (a now-defunct competitor to Blu-ray discs).

What’s odd about that suggestion is that the Xbox Mini doesn’t have a disc drive. That means, according to this source, that to play an Xbox 360 game on a Durango, the disc goes into the next-gen Xbox but will only work if the Mini is also plugged in.

“That sounds crazy to me,” said Ward. “So you’re going to buy a $300 to $500 next-gen console and then you’re going to get some little add-on that [enables Xbox 360 games]?”

The rest of the rumors

The specs, the controller, and the launch games are all still up in the air. We know that stuff can change up until launch, let alone before a company first reveals its console.

We’ll keep digging for new details, but with the amount of misinformation clogging up the reporting, it’s likely we won’t have any idea what is 100 percent true until Microsoft finally decides to show off its new console.

That reveal itself is the subject of rumors. Our sources originally predicted Microsoft would hold an event this month. Now, that’s out in favor of something in May.

E3 begins on June 11. If Microsoft hasn’t announced the console before that date, expect them to reveal it at their pre-E3 press conference.

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GamesBeat 2013 is our fifth annual conference on disruption in the video game market. You'll get 360-degree perspectives from top gaming executives, developers, and analysts on what’s to come in the industry. Our theme this year is “The Battle Royal.” Check out full event details here, and grab your early-bird tickets here!

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With its Xbox 360 successor, Microsoft may just one-up Google for once.

The new Xbox will reportedly be able to control your television and cable/satellite box, similar to what Google (unsuccessfully) attempted with Google TV, reports the Verge.

The console would reportedly connect to your cable box via an HDMI pass-through (just like Google TV), which means you’d be able to view both the next Xbox and your standard TV programming in the same video input. It would display an overlay on top of your existing TV content, enabling the next Xbox to offer features around what you’re watching without the need to process the video.

VentureBeat attempted to confirm this report. A Microsoft spokesperson said that the company doesn’t comment on rumors.

You could say we should have seen this coming. After selling its MediaRoom IPTV platform last week, Microsoft noted that it will focus on the Xbox as its core TV strategy. The Xbox 360 has proven to be an incredibly popular video consumption device, thanks to apps from Netflix, Hulu, and others, but it makes sense for Microsoft to aim much higher with its next console entry.

This isn’t the first time such rumors have cropped up, either. Video game industry insider — he calls himself a “fixer” — Kevin Dent says he’s been forecasting this since the summer.

Not surprisingly, the Verge is hearing that the console — which gamers have nicknamed the Xbox 720 — would also require an Internet connection to use the entertainment services. If these rumors hold true, you would have the next Xbox running practically the entire time you’re in front of your TV.

Gamers have been suspicious about rumors of “always-on” consoles  (so-named because they require a constant Internet connection) as we gear up for this next generation in gaming — especially since recent always-on games like SimCity and Diablo III had major issues at launch. For game publishers, being always-connected also adds another level of piracy protection. But gamers don’t appreciate the inflexibility of not being able to play their games offline.

The rumor follows some controversial comments from Microsoft Game Studios’ Adam Orth, who didn’t see much of a problem with always-on consoles (and didn’t have much sympathy for those living in the boonies). Microsoft ended up apologizing over his remarks, but it didn’t outright deny that the next Xbox would be always-on.

I’m a big fan of what Google tried to do with Google TV, but slow hardware and a lack of decent content kept it from being a success. It sounds like Microsoft wouldn’t make the same mistake, as the Verge notes that the company already has partnerships with content providers. (And unlike Google, it’s not trying to promote cord-cutting.)

Microsoft’s Kinect sensor is also said to be a big part of the next Xbox’x entertainment experience. The updated version of the motion controller would reportedly be able to detect multiple people within a room, and it could even pause what you’re watching when you turn your head.

If this particular rumor is true, Microsoft would also have a leg-up on Sony (once again) when it comes to entertainment. Microsoft wisely maneuvered to make Netflix exclusive to the Xbox 360 for more than a year before it was available to the PlayStation 3 or Wii. We haven’t seen much of Sony’s PS4 entertainment plans yet, other than the fact that it will support 4K video.

Microsoft will reportedly unveil its next Xbox on May 21, which should lead directly into this year’s E3 convention in June.

While previous rumors pointed to Microsoft unveiling its next Xbox this month, it looks like the company may now be aiming for a May event.

The Verge reports that Microsoft is targeting an event for May 21, a one-month delay from the previously reported April 24 date. That corroborates what tech reporter Paul Thurott said on a podcast last week.

You’d think that Microsoft would be rushing to show off its Xbox 360 successor following Sony’s February unveiling of the PlayStation 4. But given the mixed reaction to that event (and the fact the company didn’t show off actual console hardware), it certainly wouldn’t hurt Microsoft to wait until it had something more final to show off.

And as long as Microsoft manages to debut the next Xbox before June’s E3 convention, it shouldn’t see too much criticism from gamers. It makes more sense for Microsoft to wait a bit so that the Xbox 720, or whatever it’s called, will dominate the conversation at E3.

The rumor follows a recent apology Microsoft was forced to make over comments by Microsoft Game Studios director Scott Orth, who seemed mystified about why gamers were worried about always-on consoles. Some rumors have suggested Microsoft may force the new console to always be online, which could help with antipiracy efforts but would be a huge annoyance to gamers without decent Internet connections. Microsoft hasn’t divulged any details about the next Xbox yet, but you can expect it to match most of the Sony PlayStation 4′s specs.

Microsoft also announced this morning that it’s focusing its TV efforts entirely on Xbox, after selling its MediaRoom IPTV unit to Ericsson.

Photo: Scott Akerman/Flickr

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GamesBeat 2013 is our fifth annual conference on disruption in the video game market. You'll get 360-degree perspectives from top gaming executives, developers, and analysts on what’s to come in the industry. Our theme this year is “The Battle Royal.” Check out full event details here, and grab your early-bird tickets here!

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Microsoft is in damage-control mode after Microsoft Game Studios creative director Adam Orth said a little too much on Twitter yesterday.

In a public Tweet, Orth expressed that he didn’t see what the big deal is with a console that requires an online connection. He compared an always-on system with a vacuum and a mobile phone. Orth also suggested that people who live in areas without stable Internet should move if they want to “get with the times.”

Many gamers were offended. Others just couldn’t believe that an official Microsoft employee would speak out on such a hot topic. Either way, it was enough to get Microsoft to issue an apology.

Microsoft sent GamesBeat the following statement:

We apologize for the inappropriate comments made by an employee on Twitter yesterday. This person is not a spokesperson for Microsoft, and his personal views do not reflect the customer-centric approach we take to our products or how we would communicate directly with our loyal consumers.  We are very sorry if this offended anyone, however we have not made any announcements about our product roadmap, and have no further comment on this matter.

For those keeping score, that is an apology, a “sorry if this offended” you, and a “no comment” all in a few sentences. Don’t let anyone ever say Microsoft PR isn’t efficient.

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GamesBeat 2013 is our fifth annual conference on disruption in the video game market. You'll get 360-degree perspectives from top gaming executives, developers, and analysts on what’s to come in the industry. Our theme this year is “The Battle Royal.” Check out full event details here, and grab your early-bird tickets here!

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Update: Adam Orth has left Microsoft.

Microsoft apparently has a new public-relations strategy: insult fans until they agree.

That’s how Microsoft Studios creative director Adam Orth came across on Twitter yesterday when he commented on the rumor that the next Xbox will require a constant Internet connection to play games. The company has never even confirmed the existence of a new console, but that didn’t stop Orth from weighing in.

“Sorry, I don’t get the drama around having an ‘always on’ console,” Orth wrote on Twitter. “Every device now is ‘always on.’ That’s the world we live in.”

That’s a controversial opinion among gamers, especially after games like SimCity and Diablo III suffered major issues due to their always-on requirements. Sony has already confirmed that the PlayStation 4 will not require an Internet connection to access disc-based games.

Orth went on to argue the subject with BioWare developer Manveer Heir:

Naturally, this offended some people who live in towns like Janesville and Blacksburg. Orth later apologized.

“[That was] just the normal daily back and forth I have with Manveer,” Orth wrote on Twitter later. “Apologies for offending non-cities. I was trolling him personally.”

As odd as Orth’s abrasive demeanor on Twitter is, his attempts to justify a console with constant digital-rights management is even stranger. In his conversation with Heir, Orth claimed that “electricity goes out, too,” meaning an unreliable Internet connection shouldn’t stop someone from purchasing the next Xbox. He expanded on that thought in a series of analogies:

Of course, as many gamers pointed out on Twitter and message boards, those analogies fall apart under a little scrutiny.

Vacuum-cleaner and mobile-phone vendors would both opt to make products that do not require electricity or a reliable cell network if they could. The technology is not yet available for them to avoid those prerequisites. Tesla didn’t have time to invent the self-powering vacuum.

On the other hand, gaming consoles have worked without an Internet connection from the very beginning. In fact, people played games on systems like the Nintendo Entertainment System before the public Internet even existed.

This is not some technical hurdle that Microsoft can’t overcome, as Orth suggests.

We’ve reached out to Microsoft, but the company has not returned our request for a comment.

Via NeoGAF

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GamesBeat 2013 is our fifth annual conference on disruption in the video game market. You'll get 360-degree perspectives from top gaming executives, developers, and analysts on what’s to come in the industry. Our theme this year is “The Battle Royal.” Check out full event details here, and grab your early-bird tickets here!

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The Electronic Entertainment Expo is approaching fast, but it’s starting to look like Microsoft may introduce the next Xbox home game console up to two months before that gaming trade show.

Rumors reported by several websites claim that Microsoft will hold an Xbox event in April. CVG and The Verge both have sources who claim the company will introduce the new console that month. GamesBeat spoke with a source in the wake of Sony’s PlayStation 4 event that made a similar claim.

Separately, a poster on the popular gaming message board NeoGAF uncovered a URL registration for XboxEvent.com. Eventcore, an event-management firm that has worked with Microsoft previously, filed for that URL as well as XboxE312.com (Xbox E3 2012).

Sony just demonstrated why it is so important to hold a separate event to announce a new console. The PlayStation 4 owned a majority share of the news coverage this week in the gaming media, and it attracted a great deal of attention from mainstream sources as well (including appearing on Jimmy Fallon’s late night talk show). If both companies waited until E3, most of the discussion would focus on which had the better presentation. Microsoft wants to avoid that, so don’t let it surprise you if Microsoft announces the event soon.

And unlike the PS4, expect the next Xbox to actually show up to the event based on this Tweet from Microsoft’s Major Nelson:

Announce a console without actually showing a console? That's one approach—
Larry Hryb (@majornelson) February 21, 2013

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GamesBeat 2013 is our fifth annual conference on disruption in the video game market. You'll get 360-degree perspectives from top gaming executives, developers, and analysts on what’s to come in the industry. Our theme this year is “The Battle Royal.” Check out full event details here, and grab your early-bird tickets here!

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Follow our PlayStation 4 coverage

It’s the laziest kind of dialogue you’ll hear in an indie film. A couple of guys sitting on a couch or at the bar will say something like “Who do you think would win a in fight, Dan Rather or Barbara Walters?” It’s a hypothetical exercise done for fun since we can’t possibly know who would really win — although, clearly Barbara Walters would.

Let’s give it a try ourselves: What would win in a fight? Microsoft’s rumored next-gen system “Durango” or Sony’s PlayStation 3 followup codenamed “Orbis”?

Eventually, we’ll know exactly which system punches harder and moves faster (Sony’s holding a major event on Feb. 20 that may involve the next PlayStation), but for now we’ll have to work from the rumored specs for each new piece of hardware. Most of this information comes from VG Leaks’, which published documentation on the Orbis and Durango in recent weeks.

Let’s get ready to force-feedback!

In this corner: PlayStation Orbis

Sony’s next system is a wrecking machine according to the data we have. It features a powerful graphics processor and the speediest memory on the market.

Here’s what we’ve heard:

• Eight-core 1.6 GHz AMD “Jaguar” CPU 
• 18-core GPU based on AMD’s Radeon HD 7000 Series
• Capable of 1.843 TeraFLOPS (floating-points operations per second)
• Shared 512 KB of read/write L2 cache
• 4GB of GDDR5 RAM
• GDDR5 does 17 GB of data per second
• Around 3.5GB of RAM available to game software
• 50GB Blu-ray disc drive

And in this corner: Microsoft Durango

Microsoft’s latest gaming hardware doesn’t like a bum, either. It has an identical CPU to Orbis and a similar GPU. The graphics processor is a bit short on compute-unit cores, however, and while Durango supposedly has twice the memory of Orbis, it’s of the slower (and cheaper) DDR3 variety.

Here’s the system’s stats as far as we know:

• Eight-core 1.6 Ghz AMD “Jaguar” CPU (same as the Orbis)
• 12-core GPU based on AMD’s Radeon HD 7000 Series
• Capable of 1.23 TFLOPS
• 32MB of fast embedded SRAM
• SRAM capable of 102GB of data per second
• 8GB of DDR3 RAM
• DDR3 does 102GB of data per second
• 6.5GB available for games

So, who wins?

I already told you: Barbara Walters.

It all depends on how you define “winning.” On paper, the Orbis is more powerful. The six extra cores in the GPU and the faster RAM could really boost visuals to a very high level if game developers take full advantage of the system’s capabilities. Most studios, though, don’t usually do that.

Games are still gonna look amazing on Durango, and while it looks like the Orbis can punch harder, Durango could outmaneuver Sony’s hardware in terms of features.

The intangibles

Orbis reportedly has 512MB of RAM reserved for the operating system and extra features. The Durango has 1.5GB of RAM set aside for the same thing.

This is where the two systems, so similar in hardware architecture, will attempt to separate themselves from one another.

What is going on in the Durango that requires an extra gig of RAM at all times. Does a new version of the Kinect require that memory, or is it a whole suite of social and media features?

Meanwhile, 512MB for the OS sounds like Sony might skimp on ever-present software features or maybe it’s using the cloud-streaming functionality of Gaikai to pack a major wallop in a small memory footprint.

We’ll know the answers to some of these questions soon. It’s only a week until that Sony event. GamesBeat will have coverage of that and any other announcement, so stay tuned.

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GamesBeat 2013 is our fifth annual conference on disruption in the video game market. You'll get 360-degree perspectives from top gaming executives, developers, and analysts on what’s to come in the industry. Our theme this year is “The Battle Royal.” Check out full event details here, and grab your early-bird tickets here!

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We’re in the that weird part of the console cycle where everyone knows new hardware is imminent, but no one really knows what to expect. That means every rumor, report, and speculation is ripe for headline news as gamers hunger to absorb every piece of information about the next PlayStation and Xbox home game consoles.

This morning, Edge Online reported that the next Xbox would require a constant Internet connection that would also block used games from functioning on the console. This would take a huge chunk of revenue away from retailer GameStop, which specializes in second-hand games. It would also force many gamers to change their game-purchasing habits.

That’s if the Edge report is true. So far, GamesBeat hasn’t verified the rumor, but we wanted to ask some game-industry analysts if they think this is a likely (or smart) move for Microsoft.

“I am quite suspicious that Microsoft would divulge their strategy to any developer,” Wedbush Security managing director Michael Pachter told GamesBeat. “I have spoken with several people who allegedly have development kits, and none would confirm to me that the ‘always online’ feature was apparent in the specs they have access to.  Clearly, none of these people is supposed to acknowledge that they have dev kits, so I tried to avoid putting them on the spot. Several people told me that they had ‘heard’ the same rumor about ‘always online’ independently of the Edge article, and none of them had heard anything about the blocking of used games.”

The Edge article also suggests that physical games for the next Xbox will ship with one-time-use activation codes.

“While an online connection gives Microsoft the capability to validate every piece of software placed into its console, it doesn’t logically follow that they must do so because of that connection,” said Pachter. “I am fine with the theory that they may do so, but the article stated it as a foregone conclusion, based upon a conversation with ‘sources with first-hand experience.’ None of those sources is in a position to know what Microsoft’s strategy is, and I assure you that even Microsoft hasn’t yet determined its ultimate strategy. They are still thinking about a variety of functions.”

Other analysts voiced an equal amount of skepticism.

“It’s highly unlikely,” R.W. Baird analyst Colin Sebastian told GamesBeat. “They may have the capability to prevent resales, but Microsoft needs retail support to sell hardware, and many of their core gamer customers trade a lot of games.”

The idea is that blocking trade-in games would anger GameStop, which then wouldn’t help the manufacturers sell the next round of hardware.

Another analyst found a problem with requiring an Internet connection.

“As of [the first quarter of 2012], our surveys showed that in the U.S. 30 percent of Xbox 360s weren’t connected to the Internet at all,” IDC research manager Lewis Ward told GamesBeat. “Now, this percentage has probably come down a bit, but if Microsoft does launch its next-gen Xbox 360 this holiday season — as I expect [it will] — they could be limiting their own addressable customer base by approximately 25 percent — and that [number is even] higher in developing nations.”

In January, GamesBeat reported that Sony patented a way to prevent used games on its next console. Many analysts believe that both companies possess the capability to deny gamers the capability to play second-hand games, but most are dubious that either company would implement that functionality to its fullest potential.

Unless Sony or Microsoft are (illegally) colluding to block used games, neither knows how strict the other will be. It’s a roll of the dice to prevent preowned games because if the other manufacturer doesn’t, then gamers may flock to the system that has the most purchasing options and cheapest games.

“Sony has to blink first, on Feb. 20,” said Pachter. ”Microsoft has the luxury of seeing if Sony makes a mistake — and can exploit that mistake.”

Feb. 20 is when Sony will reveal “the future of PlayStation” at an event in New York. Most industry observers believe this is when the company will announce the so-called PlayStation 4.

“If one platform [blocks used games] and the other does not, then a huge competitive advantage goes to the platform that allows trade-ins,” said Sebastian.

“If Microsoft got rid of all used games and Sony allowed them, I think it would be a significant competitive disadvantage for Microsoft,” said Ward. “We already know Wii U supports used discs. I think it would be risky if one console [manufacturer] shut off used discs entirely and the other two allowed them.”

Then what’s stopping Sony and Microsoft from announcing equally strict bans on prepurchased software? Well, it’s considered an anti-competitive practice, which is highly illegal. Pachter believes we can rule that out as a possibility.

“Neither of them is stupid enough to ban used games on their own, and neither is evil enough to collude together to do so, especially since the benefits of a used game ban [primarily helps] publishers, and not the console manufacturers.”

Whether or not it’s evil, it’s also bad business. Neither company wants to draw the wrath of gamers and consumer-advocacy groups.

“It would anger gamers and retailers,” said Sebastian. “Which doesn’t seem like a constructive way to begin a new cycle.”

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GamesBeat 2013 is our fifth annual conference on disruption in the video game market. You'll get 360-degree perspectives from top gaming executives, developers, and analysts on what’s to come in the industry. Our theme this year is “The Battle Royal.” Check out full event details here, and grab your early-bird tickets here!

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I don’t see how anyone is going to “own” the next generation of gaming. The upcoming cycle will be a system shock to the industry, and while it won’t mark the end of any established platform, I see it shifting the industry out of its console-centric mindset.

If the recent Consumer Electronics Show was any indication, Valve — in conjunction with a handful of PC makers — will try to disrupt the console market in 2014. Modular computer maker Xi3 will likely be the first out of the gate with the Piston later this year. Valve will follow with its own fabled “Steam Box,” named after the company’s popular Steam game distribution platform, in early 2014. Both units have the same goal: to make PC gaming easy and accessible on the television. Of the two, whatever “official” machine Valve produces will be more successful with pure gamers, but two things give me pause.

Steam’s Big Picture

First, Steam Box will be Linux-based out of the box, not exactly an operating system that supports a robust gaming library — even on the Steam service itself. Valve co-founder Gabe Newell has said that users are welcome to install Windows on the machine if they like. But given his cooling attitude toward Windows as an OS for gaming, I wonder if the company will be pushing Linux versions of future games from this point on in preparation for Steam Box. I also wonder whether it will adopt Linux for Steam’s huge backlog of games, which would be a major draw for any potential buyer. I’d hate to think that Valve would leave it up to the consumer to configure a dual boot for Windows and Linux because that will probably scare off buyers new to a PC gaming setup.

Second, I question how pricing will work out. Xi3′s “Piston” — essentially its version of a Steam Box — could start at a fairly steep price point of $999, which is quite a shock if it’s looking to woo console buyers who’ve never paid more than $600 for a new console. Valve may introduce a version of its own Steam Box at a reduced price, but I think the trade-off will be reduced “upgradability,” which is often a draw for PC gaming. At too low a price point, Steam Box is simply going to become another console with locked-in hardware. Since Microsoft and Sony seem to be planning announcements for their next-gen consoles before the Electronic Entertainment Expo, I think E3 will be Valve’s show this year if it chooses that venue to discuss the Steam Box. It’s important that it announce hardware prices and a concrete launch date then because I suspect it’s going to be an either/or decision for most gamers on whether they’ll choose either a PlayStation 4/Xbox 720 or a Steam Box. If they choose one of the former consoles in late 2013, that could make for a slow start for Steam Box if it launches in early 2014.

Nintendo has already delivered its answer to next-gen, going for innovation on the Wii U with its unique-screened GamePad controller. It’s HD gaming about six years after it became the industry standard, but Nintendo will find an audience with those faithful to its brands and may work its magic once again on the more casual audience it roped in with the Wii. If Nintendo’s eShop stays friendly to independent game developers, I could see it becoming a well-known platform in the vein of Steam for smaller titles. That, and Nintendo’s own stable of franchises (including a healthy backlog on the new Wii U Virtual Console) will give the console solid footing in the marketplace even if the Wii U doesn’t land every triple-A release available on competing platforms.

Sony needs to rebuild some credibility going into this next generation. The company seemed to have a lot of gall entering this one — introducing the original PlayStation 3 models at astronomical prices of $499 and $599 and assuming players would pay for it because it’s a PlayStation. While it looked like the most powerful of the current-gen consoles on paper, imagine the surprise when most multiplatform games ran better on the Xbox 360 because it was easier to develop for. Having a month-long security breach in the online network in 2011 was no confidence-builder, either.

Sony has been all over the map with how it wants to approach gaming. From the PlayStation Move to crossplay with the PS Vita, it hasn’t really delivered a knockout punch anywhere. I see some promise in the fact that Sony says it will develop the next PlayStation without using its own proprietary technology. Hopefully, that will make the next console easier to develop for and result in more consistent quality across games on the system.

I don’t see Sony having a proprietary medium to hinge to its next console the way it did the previous two generations with the DVD and Blu-ray discs. Sony has announced it is developing a multichannel online network for streaming video content. Last year, it also bought online game streaming service Gaikai. I would imagine both products will find their way on to Sony’s next gaming machine. Hit the right price point and give gamers a more humble attitude, and the PlayStation could bounce back nicely — especially since the platform has as many exclusive quality franchises as Nintendo does.

Microsoft seems to know what it wants to do with the next-generation Xbox. Whether that resonates with the consumer is unclear, but its plans seem nothing short of transforming the way you interact with entertainment in your living room. Xbox is heading into the next generation with the strongest online gaming community, Xbox Live. It’s also successfully transformed that marketplace from strictly a gamer’s paradise into something more appealing for people who want a platform for movies, music, and other streaming content in one box.

I see Microsoft getting smarter with how it integrates its Kinect peripheral into the gaming experience. Even though Kinect started life as an answer to the Nintendo Wii’s motion controls, it had little use for gamers who were content to sit still while playing. I personally have only experienced two things while trying to play on the Kinect with my kids: boredom and pain. The next-gen Kinect seems to be on track to register more subtle player movements — not the mention the fact that Microsoft might have plans for it to project images out into your living room.

Microsoft could stand to develop a few new in-house intellectual properties as it’s been riding the Halo horse for a very long time now. I do think we’re going to see some unique stuff from the Xbox outside of games. I expect the console will be a hub for exclusive programs and streaming entertainment options. I haven’t been to Microsoft headquarters myself, but I’d wager a guess the phrase “total entertainment package” has been thrown around in a few staff meetings.

Regardless of the console, this next generation could see the end of a constant stream of on-disc $59.99 releases and a move toward a series of shorter, cheaper downloadable entries. Telltale’s 2012 adventure game The Walking Dead was well received by the gaming public and was broken into five episodes that released throughout the year. I don’t see why this wouldn’t be a viable distribution model for most if not all games on the Sony’s and Microsoft’s platforms. My guess is that Nintendo will avoid this strategy at least with first-party games largely because it can get people to pay full price for a new Mario or Zelda, no problem. If you’re moving to one of the PC platforms mentioned above, I’m not sure you’ll have any choice but to opt for download distribution. These upcoming machines appear to be missing a disc drive.

Given all this, it’s difficult for me as a gamer to know where my preferences are ultimately going to fall in this next generation. For the first time, I can possibly see myself skipping out on console gaming if the Steam Box selection is compelling enough. Consoles, however, are no longer simply gaming devices, and in an era where I get more and more of my content through Internet streaming, a platform like Sony’s or Microsoft’s has to be a consideration as well. And no matter how much some would like to, you can’t discount Nintendo on anything in the games industry.

The video game market might be more fragmented than ever a few years from now, but that might not be a bad thing. Developers will want to make their games available on as many platforms as possible, and the smaller download market for games might make buying content easier and cheaper than it was in previous generations. It will be a tall order for any one company to dominate the evolving landscape from here on out.

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GamesBeat 2013 is our fifth annual conference on disruption in the video game market. You'll get 360-degree perspectives from top gaming executives, developers, and analysts on what’s to come in the industry. Our theme this year is “The Battle Royal.” Check out full event details here, and grab your early-bird tickets here!

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Earlier this morning we posted a story about Microsoft’s Xbox 360 successor potentially being called the “Xbox.” The news came from a Pocket-lint report, but now a prankster has come clean to reveal the entire story is a hoax.

We apologize for the error, and it’s something we’ll be keeping an even closer eye on as we approach E3 in June. This particular rumor had an ounce of credibility since it seemed to fit into next-gen Xbox details leaked a few days ago. And I’ll maintain that the name “Xbox 720″ still doesn’t make much sense.

Gamers have taken to the Xbox 720 moniker as they became antsy for a new console — but that name likely won’t work for general consumers. Symbolically, the term “720″ doesn’t have the positive spin that “360″ did.  The Xbox 360 ended up being a living room hub that could tackle all of your entertainment needs — a 360-degree solution. Nobody ever talks about a 720-degree solution.

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GamesBeat 2013 is our fifth annual conference on disruption in the video game market. You'll get 360-degree perspectives from top gaming executives, developers, and analysts on what’s to come in the industry. Our theme this year is “The Battle Royal.” Check out full event details here, and grab your early-bird tickets here!

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At this point, most of us are willing to put our money on Microsoft and Sony announcing their upcoming consoles at this year’s Electronic Entertainment Expo (E3), an annual game industry trade show held in Los Angeles.

With every potential console announcement comes rumors of hardware specs and features. We can’t confirm whether these are true, but most of what’s leaked or discussed is consistent and falls in line with what a next-generation machine would reasonably be capable of.

Here’s some of what VGLeaks says (from a Joystiq report) says about Microsoft’s next Xbox system, reportedly codenamed “Durango” and dubbed Xbox 720 by gamers and the press:

CPU:

• x64 Architecture
• 8 CPU cores running at 1.6GHz
• Each CPU thread has its own 32 KB L1 instruction cache and 32 KB L1 data cache
• Each module of four CPU cores has a 2MB L2 cache resulting in a total of 4MB of L2 cache
• Each core has one fully independent hardware thread with no shared execution resources
• Each hardware thread can issue two instructions per clock

GPU:

• Custom D3D11.1 class 800 MHz graphics processor
• 12 shader cores providing a total of 768 threads

Of course, these are just numbers, and it’s difficult to say just how it will look when it’s rendering a game on a screen. If there’s anything to take out of this, it’s that the next Xbox will be a powerful machine. However, if this is accurate, it may not be as powerful as the PlayStation 4, based on what we heard last week.

They also mention a “High-fidelity Natural User Interface (NUI) sensor” that “is always present.” According to Joystiq’s report, this implies some sort of Kinect-like functionality is built into the console. A hard drive and a Blu-ray disc drive are also in this rumored device.

E3 is still five months away, and a lot can happen in the weeks leading up to the conference.

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GamesBeat 2013 is our fifth annual conference on disruption in the video game market. You'll get 360-degree perspectives from top gaming executives, developers, and analysts on what’s to come in the industry. Our theme this year is “The Battle Royal.” Check out full event details here, and grab your early-bird tickets here!

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Yesterday, we reported on a few rumors about the next-gen consoles from Sony and Microsoft.

Those rumors suggested that Sony’s Orbis (codename for the next PlayStation) is more powerful than Microsoft’s Durango. Today, a new set of rumors seems to confirm some of those previous leaks and assertions.

Eurogamer posted some data it claims it gathered from trusted sources that have Orbis development kits:

Orbis/PlayStation 4

• AMD eight-core 1.6GHz CPU
• Radeon HD graphics card (possibly a modified version of the 7970M)
• 1.84 TFLOPS
• “Secret sauce” compute module
• CPU component could be 75 to 80 mm²
• 4GB of GDDR5 ultrafast RAM
• 512MB RAM reserved for the operating system
• 100GB Blu-ray disc drive

Interestingly, the AMD CPU combined with a Radeon 7970M produces the 1.84 TFLOPS benchmark — according to Eurogamer — that popped up in a separate rumor about the next PlayStation.

A PC with such specs like that can run Crysis 2 on its Very High settings at 60 frames-per-second. A dedicated console should churn out even more due to its more efficient architecture.

Eurogamer’s sources also claim that Microsoft’s Durango will share the same AMD eight-core CPU as the Orbis, but it will have a much slower memory bank. Microsoft’s next Xbox reportedly has 8GB of DDR3 compared to Orbis’s 4GB of GDDR5. DDR3 is an older and slower standard, especially compared to GDDR5.

In this case, Sony’s ultrafast RAM, despite having less, is likely an advantage — especially if it’s true that Microsoft is reserving 3GB of its memory for the OS and always-running applications.

So games may run better on Orbis, but Microsoft may have more features and functionality.

Of course, this is all speculation. The increase in leaks is a sign an announcement is imminent. A Sony executive claims they may have something to say about a new PlayStation in May.

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GamesBeat 2013 is our fifth annual conference on disruption in the video game market. You'll get 360-degree perspectives from top gaming executives, developers, and analysts on what’s to come in the industry. Our theme this year is “The Battle Royal.” Check out full event details here, and grab your early-bird tickets here!

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We all speculate about the future. For example, I predict that 2013 is the year we get edible game discs (I never said I was good at it).

But then you have prognosticators like Baird Equity Research analyst Colin Sebastian who get paid to make educated guesses about the future of video games. He sent GamesBeat nine predictions for 2013. I listed them below, along with a comment from GamesBeat:

E3 2013 will be the most important game conference since 2000

What Sebastian says: “Given the fragile state of the console game market, we expect the E3 trade show in June will take on added significance, most likely providing the industry with the first public opportunity to examine next-generation hardware.”

What we say: If the new consoles show up and impress gamers, it will put to bed a lot of the doubts people have about video games. If the new systems disappoint or don’t show up, it will only add to the chorus of critics who claim that Apple is slowly absorbing Nintendo, Sony, and Microsoft’s audiences.

New console hardware will borrow from high-end PC components

What Sebastian says: “[The] next-generation console hardware will be largely built from ‘off the shelf’ high-end PC components, along with hybrid physical/digital distribution models, enhanced voice controls, and motion sensing — Kinect integration with every Xbox — and broad multimedia capabilities. Moreover, a PC-based architecture — Intel chips in the case of Xbox — should have a number of advantages over custom-developed silicon.”

What we say: Sebastian thinks this will make the consoles easier for devs to program for, cheaper for consumers, and more flexible for the hardware manufacturers. We’re on board with that prediction because it just makes too much damn sense. Microsoft is obviously the most likely to pursue this strategy.

Console production snags may hamper console launch quantities

What Sebastian says: “Our field checks suggest there may be early production issues with Sony’s PlayStation 4, which, if accurate, could limit unit shipments or regions at launch. While such issues are not necessarily fatal, or even unusual, we continue to believe that Sony needs a strong PS4 launch to counteract positive Xbox momentum. We continue to expect both Sony and Microsoft to host dedicated events before E3 to announce new consoles, with planned launches in October/November, respectively.”

What we say: Most major launches suffer from production snags. While it’s always nice to have a flawless launch, Sony needs to focus first and foremost on the games if it wants to combat Microsoft’s Xbox momentum. If it’s hard to get a PlayStation 4, it won’t matter if a demand for games doesn’t exist.

Challenging revenue trends will continue through this year

What Sebastian says: ”From a revenue perspective, we expect 2013 to mirror the overall challenging operating environment that plagued the console game market since the launch of the iPad. While growth comparisons are ‘easier’ in 2013, we note that increasing consumer anticipation for next-gen consoles may also negatively impact sales and prices on current-gen platforms. In general, we continue to expect top-tier games to sell well — GTA V, Call of Duty, Battlefield — while second-tier and lower-quality titles will struggle to generate meaningful unit volumes.”

What we say: The rich keep getting richer. It’s easy to see gamers sticking with tried-and-true favorites as excitement builds for the next-gen consoles. As soon as Sony and Microsoft reveal the first look at PlayStation 4 and Xbox 720 games, this current gen is going to feel pretty old, and people will stop risking money on any game that isn’t a sure thing.

The mobile OS battles shifts to the big screen

What Sebastian says: “After several years of focus on mobile screens and browsers, attention is returning to the living room and ‘big screen gaming’ with the upcoming launches of new consoles from Microsoft and Sony. In addition, and just as important in our view, the proliferation of Internet-connected televisions will allow Apple and Google to make significant inroads into the living room, extending apps to the larger screen format.

“One near-term possibility is that an upgrade to Apple TV will include a [focus on gaming] and encourage other OEMs to accelerate the adoption of Android in their smart TVs. As such, we expect a rapid increase in the number of ‘made for TV’ apps in the coming years. Meanwhile, Ouya, ‘Steam box’ and other new living room gaming platforms are generating some interest in the market, however, we view these as appealing largely to niche audiences.”

What we say: A bunch of studios want at the living room television in a bad way. The number of alternatives to the traditional console (Ouya, GameStick, Steam box) suggest that other companies sense an opportunity to step in and usurp the console manufacturers. It’s impossible to imagine how this’ll shake out, but again, it’s about the games. If developers are doing interesting things on dozen Android-based consoles, gamers are going to check it out.

Tablets and LTE provide another boost to mobile games

What Sebastian says: “Just as smartphones heralded a significant rise in downloads of casual mobile games, there are now a significant number of tablet games in development. With the potential for iOS and Android tablets to become primary gaming platforms and increasingly control the living room experience on connected TVs, we expect that 2013 will also be remembered as the year that tablet games go mainstream. Additionally, we view increasing consumer access to high-speed LTE networks will allow for faster downloads, improved online game-play, and further monetization of users on smart devices.”

What we say: The living room is host to another battle besides the one for the TV. Tablets are fighting for the title of “couch device of choice.” That’s where the tablet battle will continue through 2013 and LTE 4G will have little impact on that.

Digital distribution is nigh, but retail remains relevant

What Sebastian says: ”New consoles and the rise of games for tablets and smart TVs will drive a further shift in industry sales to digital formats and business models [like free-to-play], although we expect that the majority of new console users will still prefer to purchase bigger games on disks. In addition, since console holders remain dependent on retail — and GameStop — for hardware distribution, we expect new platforms to permit used disc sales. As such, the first few years of the new console cycle will likely resemble the current cycle in terms of distribution mix.”

What we say: No, what he said. We will feast on our hats if either Sony or Microsoft go without a disc drive in the next console. On the other hand, we’ll be incredibly disappointed if Microsoft doesn’t start providing every major release on its digital store day-and-date with the retail version.

Nintendo shifts to niche category

What Sebastian says: ”We remain concerned that Nintendo’s innovative Wii U console will lack broad appeal beyond the core Nintendo fan base. Following a somewhat lackluster launch and holiday selling season, Nintendo will need to bring to market major first-party releases [like Zelda] and retain the support of key third-party developers to reduce market share losses. In a negative scenario, Nintendo will be forced to prematurely lower the Wii-U price, and over the course of this cycle, we expect consideration will be given to extending first party franchises to other platforms.”

What we say: Nintendo won’t recapture the unconventional audience that purchased a Wii. That doesn’t mean it can’t succeed. This is a company that made a profit with the Nintendo 64. It’s doubtful Nintendo will even consider developing Mario and Zelda for other platforms within the next five years.

Another high-profile game company will be sold

What Sebastian says: “The sale of Take Two or Vivendi’s stake in Activision are two notable possibilities; however, valuations are also declining among mobile and browser-based game companies, increasing the potential for further take-outs among private companies.”

What we say: If you want to buy Take Two, you better make the offer now. The publisher delayed Grand Theft Auto V, but we doubt that’s going to flop. The mobile sector is chaos, so we agree with Sebastian that someone is gonna buy something among all of that mess.

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GamesBeat 2013 is our fifth annual conference on disruption in the video game market. You'll get 360-degree perspectives from top gaming executives, developers, and analysts on what’s to come in the industry. Our theme this year is “The Battle Royal.” Check out full event details here, and grab your early-bird tickets here!

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Neither company has talked officially about their plans for new consoles, which the industry has nicknamed the Xbox 720 and the PlayStation 4. But a story in online game news site Ludos Mundi predicts that Microsoft’s Xbox 720 will win based on the searching that users are already doing for the new consoles.

In the past 11 months, searches for information on the new Xbox have far exceeded searches for the PS 4 or PlayStation 4, according to Google Trends. On a worldwide basis, people search for Xbox 720 about 60 percent of the time, compared to 40 percent for the PS 4. In the U.S., about 66 percent of the searches are for the Xbox 720, and 34 percent for Sony’s future machine.

Google Trends accurately predicted the winner of the next-generation DVD format, showing that results favored Blu-ray movies over HD-DVD movies. The graph at right shows that the Xbox 720 is becoming more popular over time.

To search for yourself, go to Google Trends and compare Xbox 720 and PS 4 using the “forecast” feature, with the settings on 2004 to the present.

If I were Sony, I would hire an army of users to search on the PS 4 or PlayStation 4.

As an aside, the number of searches for Nintendo’s new game console, the Wii U, has been declining since its launch in late November. What does that mean?

[Image credits: Tsheko, Ludos Mundi]

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GamesBeat 2013 is our fifth annual conference on disruption in the video game market. You'll get 360-degree perspectives from top gaming executives, developers, and analysts on what’s to come in the industry. Our theme this year is “The Battle Royal.” Check out full event details here, and grab your early-bird tickets here!

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[UPDATE: A Microsoft spokesperson gave GamesBeat the following statement: “Xbox 360 has found new ways to extend the console life cycle by introducing controller-free experiences with Kinect and reinventing the console with a new dashboard and new entertainment content partnerships. We are always thinking about what is next for our platform and how to continue to defy the life cycle convention.”

The item on auction has sold for $20,100.]

Original Story: It’s no secret that Microsoft’s next Xbox console is currently operating under the codename Durango, but if this eBay auction is legit, the specs of the Xbox 720 (Xbox Infinity?) may be revealed well ahead of its probable E3 reveal next year.

EBay user “superdae” (an account with no previous activity) posted the auction with a single image (pictured below), the title “Microsoft Xbox Durango Development Kit,” and the description, “This item comes with powercables and a wired controller.” The auction began 15 minutes to midnight on August 11, and bidding has already surpassed $15,000, with six days still left on the clock.

There is a sizable discussion occurring on NeoGAF about whether the dev kit is real, and users are claiming that the auction owner is DaE, “the guy that leaked the Kinect 2 and dev kit pictures.” While the PC pictured may seem unlikely, early dev kits for new consoles often have much more in common with a desktop than the sleek little boxes that eventually end up in living rooms come Christmas.

The bigger question is even if the dev kit is legit, who’s bidding on it, and what is Microsoft going to do about it? Will it be able to shut the auction down if it’s against Microsoft’s terms of service (which it undoubtedly is)? Will superdae’s PayPal information incriminate him and allow his identity to be revealed? And if a developer did get a hold of the kit, would they even be able to use it? All debugs are linked through Microsoft’s Partner.net system, and the company is undoubtedly monitoring the very short list of people who are supposed to have one of these things.

The more likely scenario is that a media publication is attempting to lift this and be the first to break what’s under the hood of one of gaming’s most anticipated announcements next year. Still, that didn’t work out so well for Gizmodo when it “happened” upon an unreleased iPhone prototype. The whole “We found it in a bar” excuse isn’t going to fly here, either.

GamesBeat has reached out to Microsoft for comment and will relay any response in an update.

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GamesBeat 2013 is our fifth annual conference on disruption in the video game market. You'll get 360-degree perspectives from top gaming executives, developers, and analysts on what’s to come in the industry. Our theme this year is “The Battle Royal.” Check out full event details here, and grab your early-bird tickets here!

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So far, we’ve had nothing but rumor and speculation to go on if we wanted information on Microsoft’s successor to the Xbox 360, called the Xbox 720 by many (the Internet is clever that way). Now, thanks to leaked pictures of a development kit, we have some real evidence that developers are working on games for Microsoft’s next console.

The source of these images, calling himself DaE, posted the pictures on the AssemblerGames forum, where he tried to sell the machine for $10,000, according to IGN. Digital Foundry then checked with other developers working on next-generation games, and they claimed that the images are legitimate.

Codenamed Durango, the 64-bit dev kit runs on Intel CPUs, an NVIDIA graphics card, and 8GB of RAM. Digital Foundry noted that dev kits often run on twice as much memory (RAM) as the retail version of the system, “to accommodate debugging tools and other systems.” This would line up the specs with those leaked from a Microsoft document last month.

The casing looks like a simple, black PC tower. Of course, the retail version of the console will look completely different. According to DaE, Microsoft sent the latest version of the dev kits in February.

DaE also included pictures of the graphical interface that developers can use to access camera rendering tools and data for the Kinect, the motion-tracking camera for the Xbox 360. The leaked document from June stated that Microsoft plans to build a more powerful version of the hardware into the Xbox 720.

We reached out to Microsoft, who considered the issue a rumor and declined to comment.

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GamesBeat 2013 is our fifth annual conference on disruption in the video game market. You'll get 360-degree perspectives from top gaming executives, developers, and analysts on what’s to come in the industry. Our theme this year is “The Battle Royal.” Check out full event details here, and grab your early-bird tickets here!

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Someone should really explain to Microsoft’s legal team that trying to eliminate information once it’s been leaked online is more difficult than eliminating a cockroach infestation from a dilapidated frat house.

Try as you might, you’ll never manage to kill every lasts one of those frightening little beasts. I feel like gamers, tech journalists, and Julian Assange are sort of like cockroaches in regards to the recently leaked 56-page document detailing Microsoft’s Xbox 720 plans.

The Xbox 720 document first surfaced online earlier this week when someone uploaded it to doc-sharing service Scribd. The doc contained information about a $299 Xbox 720 next-generation game console with Kinect 2 for a holiday 2013 release, as well as details regarding a new Kinect Glasses product.

The document has since been removed from Scribd at the request of international law firm Covington & Burling LLP on behalf of Microsoft, as VentureBeat previously reported. But that isn’t the only web publisher/service Microsoft’s legion of legal firms are going after. Czech tech site Ihned.cz also received a take-down letter from a Microsoft legal firm, as did cloud storage service Dropbox. For now, Dropbox has blocked all its users from publicly sharing the document.

While I’m sure this will prove to be annoying for people who haven’t yet had a chance to examine the document, it seems futile to bother having it removed at this point. Countless news publications have already reported all the important bits and have probably written extensive analysis on how it could affect the gaming industry. The only semi-logical explanation for the continued take-down effort would be that Microsoft wants to get its money’s worth out of all the legal firms already getting paid under contract.

If you know of any other mass Xbox 720 doc removals we didn’t mention, feel free to list them in the comments section.

Via The Verge

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GamesBeat 2013 is our fifth annual conference on disruption in the video game market. You'll get 360-degree perspectives from top gaming executives, developers, and analysts on what’s to come in the industry. Our theme this year is “The Battle Royal.” Check out full event details here, and grab your early-bird tickets here!

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According to a 56-page document that an anonymous uploader posted to scribd.com — and has since been removed at the request of law firm Covington & Burling — Microsoft is planning a $299 Xbox 720 with Kinect 2 for a holiday 2013 release. Microsoft supposedly drafted the outline, which contains a road map for the company’s Xbox division through 2015, in mid-2010. This document’s authenticity has not been verified, but Convington & Burling LLP is Microsoft’s legal counsel.

The Xbox 720

An included spec sheet for the Xbox 720 details the unit’s innards. The system will operate on six to eight ARM/Intel x86 cores running at 2Ghz with 4GB of memory. Software will ship on dual-layered Blu-rays for 50GB of optical storage. Microsoft’s new box will also feature 3 PowerPC cores for full backwards compatibility with Xbox 360 games. These obtuse specifications amount to a box that is six to eight times more powerful than the current hardware.

Forward-looking engineers at Redmond, according to the leaked documents, are arranging the console to be a “modular design [in order] to facilitate SKU updates later in [the] lifecycle.”

Always-on low-processing-power functionality will also factor into the use of the system. Similar to how a set-top box from Comcast or Time Warner is never truly powered down, the Xbox 720 will be able to act as your home’s media hub by recording shows in the background. A separate dual-core cluster of chips will handle this background workload and will ensure that gaming performance is not affected.

Oddly, the spec sheet lists cellular compatibility with the Wimax and HSDPA architectures. These are the mobile-phone standards used by Sprint, T-mobile, AT&T and others. Maybe the $99 Xbox 360 with a two-year contract will also come with AT&T 4G for some reason.

Kinect 2 and Project Fortaleza (Kinect glasses)

When the Xbox 720 launches in 2013, according to this unconfirmed information, it will come bundled with the Kinect 2. An “incremental” upgrade to the current motion controller, the Kinect 2 will allow four players to simultaneously waggle at their television. It will feature a dedicated hardware processor, a more accurate camera, and a higher-quality microphone for voice recognition. Smaller apartments will also be able to get in the mix, as the Kinect 2 will be equipped to deal with spaces that are closer, wider, and deeper. Also, and here’s the megaton, Kinect 2 can be controlled by players that are sitting down.

A new project, dubbed Project Fortaleza, which is basically Kinect glasses, will launch in 2014. The glasses will be a wearable computer that act much in the same way as Google’s Project Glass. The goggles will augment reality with an interactive digital overlay. Microsoft will initially pitch this as a way to enhance gameplay, but intends for a 4G cellular version to ship for every-day use by 2015.

Cloud gaming

If this document is real, it all but confirms that this will be the last Microsoft console. The company hopes to implement complete cloud streaming of games by 2015. The analysis says consumers will “”never need to upgrade hardware again.”

The document mentioned OnLive as a possible acquisition target. Microsoft labeled the game-streaming company as a threat with the potential to “up-end the console-gaming market by making expensive consoles and PCs unnecessary for AAA gaming.” Microsoft may choose to neutralize them by absorbing this already established company rather than creating a cloud-streaming service from scratch.

What does it mean?

We’ve contacted Microsoft to confirm if this information is real. Expect the typical, “we do not comment on rumor and speculation.” We do know, however, that Covington & Burling represents Microsoft, so the company was at least responsible for the documents removal. That does not confirm its authenticity.

If this is the truth, however, it spells trouble for Nintendo and Sony. A $299 Xbox 720 with Kinect 2 and all the bells and whistles could own the living room. It may even be enough to compete with Apple. The next consumer-electronic battlefront is for the box under the TV. That’s where the majority of content is going to be purchased, and whoever owns that bridge will be able to collect a hefty toll. Still, we’ll be surprised if 100 percent of this information makes the transition to reality.

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GamesBeat 2013 is our fifth annual conference on disruption in the video game market. You'll get 360-degree perspectives from top gaming executives, developers, and analysts on what’s to come in the industry. Our theme this year is “The Battle Royal.” Check out full event details here, and grab your early-bird tickets here!

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That is sure to disappoint fans and developers who are anxiously awaiting information about the next-generation console, nicknamed the Xbox 720. But if Microsoft has no plans to launch it this year, it’s the smart thing to do. An announcement in June for a box that launches in 2013 would simply dry up demand for the current generation. The unveiling is important because an entire ecosystem depends on Microsoft’s game platform, and developers need to get to work on next-generation games.

“While we appreciate all the interest in our long-range plans for the future, we can confirm that there will be no talk of new Xbox hardware at E3 or anytime soon,” Microsoft said in a statement. “For us, 2012 is all about Xbox 360 …  The console is coming off its biggest year ever — a year in which Xbox outsold all other consoles worldwide.  Xbox 360 didn’t just outsell other consoles, it also outsold all other TV-connected devices like DVD players, as well as digital media receivers and home theater systems. And in our seventh year, we sold more consoles than in any other year — defying convention.”

The company added, “This year, we will build on that Xbox 360 momentum.  With Halo 4, Forza Horizon, Fable: The Journey, and other great Kinect games on the way, our 2012 Xbox lineup is our strongest ever.  This year, we will deliver more TV, music, and movie experiences for Xbox 360 — as we’ll make it even easier to find and control all your entertainment. And this year, Xbox games, music, and video are coming to Windows 8 so people can enjoy their Xbox entertainment wherever they go.”

Meanwhile, Capcom senior vice president Christian Svensson told Gamasutra that the console makers should pay attention to how the game business has changed — with the responsiveness, quick turnaround on updates and launches, and easy distribution — thanks to smartphones, tablets, and online gaming.

Sony previously said that it would not talk about a PlayStation 4 at E3, leaving Nintendo alone to talk about the Wii U hardware at the big trade show.

GamesBeat 2012 is VentureBeat’s fourth annual conference on disruption in the video game market. This year we’re calling on speakers from the hottest mobile, social, PC, and console companies to debate new ways to stay on pace with changing consumer tastes and platforms. Join 500+ execs, investors, analysts, entrepreneurs, and press as we explore the gaming industry’s latest trends and newest monetization opportunities. The event takes place July 10-11 in San Francisco, and you can get your early-bird tickets here.

[Photo credit: Flickr, Mel B]

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GamesBeat 2013 is our fifth annual conference on disruption in the video game market. You'll get 360-degree perspectives from top gaming executives, developers, and analysts on what’s to come in the industry. Our theme this year is “The Battle Royal.” Check out full event details here, and grab your early-bird tickets here!

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One of the most detailed rumors came on Jan. 18 from SemiAccurate, the geek blog run by Charlie Demerjian. He said that initial production of the Oban chip for the Xbox 720 has begun. Oban is the code name for the combination graphics and processor all-in-one chip that will power the next-generation game console from Microsoft, Charlie reported. Microsoft declined to comment.

IBM is reportedly the foundry, or contract manufacturer, for the Oban chip. But it’s not clear exactly who designed it, as Microsoft now has its own chip design capability these days and may have collaborated with IBM and ATI (Advanced Micro Devices) on it. Oban has an IBM-designed processor based on the PowerPC architecture, which is compatible with the Xbox 360. It also has an ATI GCN/HD7000/Southern Islands graphics chip from AMD.

There’s a small chance that Oban is x86 (Intel-compatible), but SemiAccurate said that was unlikely. I’m sure Microsoft would love to poke holes in this, but for now they can’t comment. AMD’s spun-out manufacturing business, now called Globalfoundries, is also making some of the first batch of prototypes and could serve as another foundry.

The initial batch of these 32-nanometer chips will go into development systems, which game developers use to make their launch titles for the new system. So even though production of chips has begun early, it’s quite possible a launch is set for 2013. Demerjian believes it will have embedded memory, just as the Xb0x 360 did, in a special package.

I know Charlie and he is pretty good about snagging rumors in private conversations with engineers who talk too much. But the “SemiAccurate” name is a good one and Charlie knows that he isn’t right all of the time. When I conveyed one of Charlie’s tips for official comment, a PR guy laughed. But Charlie isn’t always far off the mark, and he gets to plenty of stories before others in the press, including yours truly, do. Fudzilla, another geek blog, said it verified the rumor from SemiAccurate.

IGN, meanwhile, said its sources confirmed that mass production of the system’s GPU (it did not say it was part of a combo chip or multi-chip package) will begin by the end of 2012, but it will not be based on AMD’s 7,000 series. Rather, it will be based on the 6000 series, like the ATI Radeon HD 6670 (pictured in a PC add-on card at top). That chip has DirectX 11 support, multi-display output, 3D, and 1080 high-definition output. It is priced at about $79.99.

That chip’s graphics power is said to be six times that of the Xbox 360 and 20 percent greater than that of Nintendo’s upcoming Wii U console. That numbers seems particularly low. The Xbox 360 shipped in 2005 and graphics chip vendors generally follow the path of Moore’s Law, which holds that chip performance doubles every year or two. If it indeed doubles every year, a 2013 graphics chip should really be more like 256 times more powerful than the Xbox 360′s 2005 graphics chip. But that’s what IGN said. IGN’s rumor makes no sense to me, and Charlie said the same.

Kotaku, meanwhile, said that Microsoft’s next game console will be upgraded from DVDs to Blu-ray discs. The system will also reportedly block the playing of used games, a feature that is not present in today’s consoles. Game publishers have been furious with GameStop for selling a huge collection of used games, where the money generated does not go to the publisher. But the move might also anger consumers.

Kotaku also said that Microsoft will ship a new version of its Kinect motion-sensing system.The new Kinect will have an on-board processor for improving its performance and accuracy. The console will also have a smaller game controller.

Our analysis: We haven’t independently verified these rumors. But we can think about whether they are plausible. The name Xbox 720 itself is a made-up one, as shorthand for the successor to the Xbox 360. The rumor from SemiAccurate has the most detail, but it is also coming from a source with a mixed track record. Usually, the more detailed the rumor, the more accurate it is. Vague rumors, such as the Kotaku story, usually mean that the source is pretty low level. And when it comes to big decisions on game consoles, most of the information at this stage in the game is held by a small group of executives at the platform owner’s company.

We’ll pass along the rumors and our opinion of them as they arise, but be prepared to see plenty of wrong information before the real confirmation comes. One thing that is plausible is the timeline. If Microsoft plans to launch a console in early 2013, the game developers have to get the development kits right about now to get their launch titles under way.

As for the PlayStation 4, MCV reported that Sony would talk about it at the E3 2012 trade show in June. But Sony’s high-ranking executive Kaz Hirai quashed that rumor at the Consumer Electronics Show.

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GamesBeat 2013 is our fifth annual conference on disruption in the video game market. You'll get 360-degree perspectives from top gaming executives, developers, and analysts on what’s to come in the industry. Our theme this year is “The Battle Royal.” Check out full event details here, and grab your early-bird tickets here!

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