In April, Microsoft will be rolling out a full-screen "Xbox mode" to all Windows 11 PCs, including laptops, desktops, and tablets. The move follows last week's confirmation of its next-generation Xbox console, known internally as Project Helix, which will be capable of running both Xbox titles and PC games. The Verge reports: Technically, you've been able to try the Xbox Full Screen Experience (FSE) in preview since November 2025, if you were part of both the Windows Insider and Xbox Insider Programs. But it needed work, as well as a better name. When Microsoft originally shipped it on the Asus-designed Xbox Ally and Xbox Ally X handhelds, we were clear: it didn't meaningfully turn a PC experience into an easy-to-use Xbox one. But if Microsoft is putting its full weight behind PC as the future of Xbox gaming, perhaps that will change change.

An anonymous reader quotes a report from 80 Level: Microsoft has officially confirmed development of its next-generation Xbox console, currently known internally as Project Helix. While concrete details remain limited, early information suggests the company is positioning the device as a hybrid between a traditional console and a gaming PC, capable of running both Xbox titles and PC games. The codename was revealed recently by new Xbox CEO Asha Sharma, who reaffirmed Microsoft's continued commitment to dedicated gaming hardware despite speculation that the company might shift entirely toward cloud or platform-based ecosystems. According to Sharma, Project Helix represents the next step in Xbox's console strategy.

Although official specifications have not yet been announced, early reports indicate the system will likely rely on a new AMD system-on-chip combining Xbox hardware with PC-style architecture. The device is expected to emphasize high performance while maintaining compatibility with existing Xbox game libraries. [...] If the concept holds, Project Helix could mark a significant shift in how console ecosystems are structured, moving away from tightly closed hardware platforms toward something closer to a unified PC-console environment. Sharma wrote in a post on X: "Great start to the morning with Team Xbox, where we talked about our commitment to the return of Xbox, including Project Helix, the code name for our next generation console. Project Helix will lead in performance and play your Xbox and PC games. Looking forward to chatting about this more with partners and studios at my first GDC next week!"

Seamus Blackley, one of the original founders of Xbox who helped convince Bill Gates and Steve Ballmer to back a console project more than 26 years ago, told GamesBeat in an interview that he believes Microsoft is quietly sunsetting the platform under the guise of an AI-driven leadership transition.

Microsoft recently announced that Asha Sharma, whose career has focused on AI and software as a service, will replace Phil Spencer as Xbox CEO, and that COO and president Sarah Bond is leaving the company. Blackley said he expects Sharma's role to be that of "a palliative care doctor who slides Xbox gently into the night," arguing that Satya Nadella's all-consuming bet on generative AI has turned every business unit -- Xbox included -- into a nail for the same hammer.

He compared the appointment to putting someone who doesn't like movies in charge of a major motion picture studio, and advised Sharma to either develop a genuine passion for games or find a way to leave the job soon.

Microsoft has spent more than $76 billion acquiring game studios and publishers over the past few years in an attempt to turn Xbox into a Netflix-like subscription platform, and the result is that nobody -- possibly not even Microsoft -- can clearly articulate what Xbox actually is anymore, The Verge writes.

The brand started as a powerful video game console, but Game Pass and cloud gaming pushed it toward a hazier identity: the "This is an Xbox" ad campaign tried to redefine it as any device that could play Xbox games, whether a PC, a smart TV, a phone, or a Windows handheld. Microsoft then went further and started publishing its biggest franchises on PlayStation, making it one of the largest third-party publishers on a rival's platform.

Phil Spencer, who led the division for over a decade and drove the subscription pivot, announced his retirement last week, and incoming CEO Asha Sharma has pledged "the return of Xbox" -- though her memo also talks about expanding across PC, mobile, and cloud, which sounds a lot like the status quo.

In her first major interview as Microsoft's new gaming chief, Asha Sharma said that "great games" must deliver emotional resonance and a distinct creative voice, while making clear that she has "no tolerance for bad AI." Stepping in after Phil Spencer's retirement, she's pledging consistency, community trust, and a human-first approach to storytelling as Xbox enters a new era. Variety reports: Sharma was quick in laying out her top priorities for Microsoft Gaming in an internal memo announcing her promotion, noting "great games," "the return of Xbox" and the "future of play" as her three main commitments to the gaming community. So first, what makes a great game for Sharma, whose roles prior to CoreAI include top positions at Instacart and Meta? The new Microsoft Gaming CEO tells Variety it's all about games with "deep emotional resonance" and "a distinct point of view." She wants to develop stories that make players "feel something," like the kind of feelings Campo Santo's 2016 first-person mystery "Firewatch" elicited in her.

Sharma takes on the mantle as head of the leading competitor to Sony's PlayStation and Nintendo knowing full well she's entering the role as an outsider to the larger gaming community and has "a lot to learn" still. But Sharma says she's got a commitment to "being grounded in what the community is telling us." "I'm coming into gaming as a platform builder," Sharma said, adding that her goal is to "earn the right to be trusted by players and developers" and show the fanbase that "consistency" over time. In her interview with Variety, Sharma acknowledged the tumultuous state of the gaming industry, referencing Matthew Ball's recent State of Video Gaming in 2026 report as evidence that the larger "transformation" of the sector is "protecting what we believe in while remaining open-minded about the future."

Due to her strong background in AI, initial reactions to Sharma's appointment have raised concerns about what her specific views are on the use of generative AI in game development. Sharma says her stance is simple: she has "no tolerance for bad AI." "AI has long been part of gaming and will continue to be," Sharma said, noting that gaming needs new "growth engines," but that "great stories are created by humans."

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.

An anonymous reader shares a report: Speaking during an earnings call on Tuesday, CEO Lisa Su stated that its development of Microsoft's next-gen Xbox SoC is "progressing well to support a launch in 2027."

While the comment doesn't outright confirm the next Xbox will release next year, it indicates that the Microsoft could be ready to launch soon.

Microsoft's Xbox hardware revenue fell 32% in the final quarter of 2025 and overall gaming revenue declined 9% year-over-year, according to the company's latest quarterly earnings, released as part of results showing Microsoft's total revenue exceeded $80 billion.

Xbox content and services revenue, which includes Game Pass, dropped 5%.

An anonymous reader quotes a report from Thurrott: Microsoft is testing a refresh of the Xbox Cloud Gaming web experience in public preview. "This preview is a first look at our new web interface on your browser and lets you try the updated design and product flow before it is rolled out broadly," Microsoft's Patrick Siu explains. "Players who opt in to this preview will see some changes to their experience including updated navigation features and a refreshed look and feel. As this is a preview, some functions may not yet be available or may behave differently than the current web experience. We will continue iterating during the preview period and changes may be made over time."

[...] There's no real info about what's in the new experience, oddly. Microsoft notes only that it "lays the foundation for accelerating [their] ability to build new experiences for players," and that it "helps [them] validate the new web platform and refine the experience for everyone." The public preview can be found at xbox.com/play.

An anonymous reader shared this report from The Verge: In early December, I brought you the news that Google has begun replacing Verge headlines, and those of our competitors, with AI clickbait nonsense in its content feed [which appears on the leftmost homescreen page of many Android phones and the Google app's homepage]. Google appeared to be backing away from the experiment, but now tells The Verge that its AI headlines in Google Discover are a feature, one that "performs well for user satisfaction." I once again see lots of misleading claims every time I check my phone...

For example, Google's AI claimed last week that "US reverses foreign drone ban," citing and linking to this PCMag story for the news. That's not just false — PCMag took pains to explain that it's false in the story that Google links to...! What does the author of that PCMag story think? "It makes me feel icky," Jim Fisher tells me over the phone. "I'd encourage people to click on stories and read them, and not trust what Google is spoon-feeding them." He says Google should be using the headline that humans wrote, and if Google needs a summary, it can use the ones that publications already submit to help search engines parse our work.

Google claims it's not rewriting headlines. It characterizes these new offerings as "trending topics," even though each "trending topic" presents itself as one of our stories, links to our stories, and uses our images, all without competent fact-checking to ensure the AI is getting them right... The AI is also no longer restricted to roughly four words per headline, so I no longer see nonsense headlines like "Microsoft developers using AI" or "AI tag debate heats." (Instead, I occasionally see tripe like "Fares: Need AAA & AA Games" or "Dispatch sold millions; few avoided romance.")

But Google's AI has no clue what parts of these stories are new, relevant, significant, or true, and it can easily confuse one story for another. On December 26th, Google told me that "Steam Machine price & HDMI details emerge." They hadn't. On January 11th, Google proclaimed that "ASUS ROG Ally X arrives." (It arrived in 2024; the new Xbox Ally arrived months ago.) On January 20th, it wrote that "Glasses-free 3D tech wows," introducing readers to "New 3D tech called Immensity from Leia" — but linking to this TechRadar story about an entirely different company called Visual Semiconductor...

Google declined our request for an interview to more fully explain the idea.
The site Android Police spotted more inaccurate headlines in December: A story from 9to5Google, which was actually titled 'Don't buy a Qi2 25W wireless charger hoping for faster speeds — just get the 'slower' one instead' was retitled as 'Qi2 slows older Pixels.' Similarly, Ars Technica's 'Valve's Steam Machine looks like a console, but don't expect it to be priced like one' was changed to 'Steam Machine price revealed.' At the time, we believed that the inaccuracies were due to the feature being unstable and in early testing.... Now, Google has stopped calling Discover replacing human-written headlines as an "experiment."
"Google buries a 'Generated with AI, which can make mistakes' message under the 'See more' button in the summary," reports 9to5Google, "making it look like this is the publisher's intended headline." While it is obvious that Google has refined this feature over the past couple of months, it doesn't take long to still find plenty of misleading headlines throughout Discover... Another article from NotebookCheck about an Anker power bank with a retractable cable was given a headline that's about another product entirely. A pair of headlines from Tom's Hardware and PCMag, meanwhile, show the two sides of using AI for this purpose. The Tom's Hardware headline, "Free GPU & Amazon Scams," isn't representative of the actual article, which is about someone who bought a GPU from Amazon, canceled their order, and the retailer shipped it anyway. There's nothing about "Amazon Scams" in the article.

Microsoft appears to be preparing an ad-supported tier for Xbox Cloud Gaming that would let players stream games they've purchased digitally without needing a Game Pass subscription, according to a Windows Central report citing sources familiar with the plans. Users last week began noticing a new message pop up while launching cloud games that referenced "1 hour of ad supported play time per session," though no such tier currently exists.

The ad-supported option, expected to launch sometime this year, would specifically target the hundreds of games available for digital purchase through Xbox Cloud Gaming -- titles that currently require at least one tier of Game Pass to stream despite being owned outright by the player.

Amazon founder Jeff Bezos once told an audience that he views local PC hardware the same way he views a 100-year-old electric generator he saw in a brewery museum -- as a relic of a pre-grid era, destined to be replaced by centralized utilities that users simply rent rather than own. The anecdote, shared at a talk a few years ago, positioned Amazon Web Services and Microsoft Azure as the inevitable successors to the desktop tower. Bezos argued that users would eventually abandon local computing for cloud-based solutions, much as businesses once abandoned on-site power generation for the electrical grid.

Current market dynamics have made that prediction feel more plausible. DRAM prices have become increasingly untenable for consumers, and companies like Dell and ASUS have signaled price increases across their PC ranges. Micron has shut down its consumer DRAM operations entirely, prioritizing AI datacenter demand instead. SSD storage is expected to face similar constraints. Cloud gaming services from Amazon Luna, NVIDIA GeForce Now and Xbox are seeing steady growth.

Microsoft previously developed a consumer version of its business-grade Windows 365 cloud PC product, though the company deprioritized it -- the economics didn't work when cheap laptops remained available. That calculus could shift. Xbox Game Pass's 1440p cloud gaming runs $30 monthly and NVIDIA recently imposed a 100-hour cap on its cloud platform. The infrastructure remains expensive to operate, but rising local hardware costs may eventually close that gap.

Meta is shutting down three acquired VR studios as part of Reality Labs layoffs and a strategic pivot away from VR content toward AI-powered smart glasses. UploadVR reports: Meta shut down Twisted Pixel Games (Deadpool VR), Sanzaru Games (Asgard's Wrath), and Armature Studio (Resident Evil 4 VR). [...] Twisted Pixel Games was founded in 2006 and mostly made Xbox games published by Microsoft for the first decade of its existence. In fact, Microsoft owned the studio from 2011 until 2015, when it became an independent company again. On contract from Facebook, between 2017 and 2019 Twisted Pixel released four VR games: Wilson's Hearth (Rift); B-Team (Go/Quest); Defector (Rift); and Path of the Warrior (Rift/Quest). In 2022, Twisted Pixel Games was acquired by Meta. And just two months ago, it released what it had been working on since then: Deadpool VR, the latest Quest-exclusive VR game. [...]

Sanzaru Games was also founded in 2006, and made a combination of its own games and contract titles for companies such as Sony, porting the original God of War series to PS Vita. Sanzaru Games was also contracted by Facebook to build VR games for the Oculus Rift and its Touch controllers, between 2016 and 2019: Ripcoil (2016); VR Sports Challenge (2016); Marvel Powers United VR (2018); and Asgard's Wrath (2019). In 2020, Sanzaru Games was acquired by Facebook, and in 2023 released Asgard's Wrath 2, taking the core essence of Asgard's Wrath to Quest 2 and Quest 3 standalone, with a semi-open world and a campaign more than 60 hours long. Exactly one year ago, Sanzaru released the last major content update for Asgard's Wrath 2, stating that it was now working on the "next big thing" with no detail released on what that would be before the studio closed.

Founded in 2008, Armature Studio was mainly a porting studio, bringing PC titles to consoles and console titles to PS Vita. Like Twisted Pixel and Sanzaru, Armature too was contracted by Facebook to build early consumer VR games: Fail Factory (2017); Sports Scramble (2019); and Resident Evil 4 VR (2021). Armature was acquired by Meta in 2022, and many VR gamers had been eagerly anticipating what it had been working on since. Whatever it was, Armature too is now shut down.

Microsoft has started testing a "significant" visual overhaul for Edge in its Canary and Dev Channel preview builds, and the redesigned interface borrows heavily from the design language that first appeared in the company's standalone Copilot app rather than the Fluent Design system used across Windows 11, Xbox, and Office.

The updated look touches context menus, the new tab page and settings areas, introducing rounder corners and the same color palette and typography found in Copilot. The new interface appears regardless of whether users have Copilot Mode enabled, though the new tab page reverts to MSN news articles and Bing search when Copilot Mode is turned off.

Edge is not alone in this shift, Windows Central writes. Microsoft is also applying the Copilot design language to Copilot Discover, an AI-powered version of MSN.com that may be internally codenamed "Ruby." Windows and Xbox have not yet received similar treatment. The rollout remains uneven -- the refreshed UI is not appearing on all test machines -- and production releases are likely weeks away. If Microsoft continues down this path, Copilot, MSN and Edge will share a visual identity that looks noticeably different from the rest of the company's software lineup, the publication adds.

Engadget reports on "a widespread breach" of Ubisoft's game Rainbow Six Siege "that left various players with billions of in-game credits, ultra-rare skins of weapons, and banned accounts."

Ubisoft took the game's servers offline early Saturday morning, and as of Sunday night its status page still shows "unplanned outage" on all servers across PC, PlayStation and Xbox: Ubisoft later clarified Saturday afternoon on X that nobody would be banned if they spent their ill-gotten credits, but that a rollback of all transactions starting from Saturday, 6AM ET would soon be underway.
Founded 39 years ago, France-based Ubisoft produces top videogame franchises like Assassin's Creed, with billions in revenue and over 17,097 employees worldwide.

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.

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.)

Microsoft's Xbox consoles were conspicuously absent from Black Friday's winners, failing to crack the top three in U.S. sales during one of the retail calendar's most important weeks. According to Circana analyst Mat Piscatella, the PlayStation 5 captured 47% of Black Friday week console sales ending November 29, followed by the Nintendo Switch 2 at 24% and -- somewhat remarkably -- the NEX Playground, a Kinect-like Android device aimed at children, at 14%.

Microsoft ran no promotions on its consoles during the period. The Xbox Series X currently retails for $650 following this year's price increase, up from its $500 launch price in 2020. Sony, by contrast, discounted the PS5 by roughly 40% at some retailers. Piscatella noted on Bluesky that products without price promotions typically see no seasonal lift. Costco has removed Xbox consoles from its U.S. and UK websites.

Microsoft has released the source code for Zork I, II, and III under the MIT License through a collaboration with Team Xbox and Activision that involved submitting pull requests to historical source repositories maintained by digital archivist Jason Scott. Each repository now includes the original source code and accompanying documentation.

The games arrived on early home computers in the 1980s as text-based adventures built on the Z-Machine, a virtual machine that allowed the same story files to run across different platforms. Infocom created the Z-Machine after discovering the original mainframe version was too large for home computers. The team split the game into three titles that all ran on the same underlying system.

The code release covers only the source files and does not include commercial packaging or trademark rights. The games remain available commercially through The Zork Anthology on Good Old Games and can be compiled locally using ZILF, a modern Z-Machine interpreter.

Nvidia and Google announced today a new cloud gaming plan called GeForce Now Fast Pass that is exclusive to Chromebooks. Anyone who purchases a new Chromebook will receive a year of the service included with their device at no additional charge. Fast Pass allows Chromebook owners to stream more than 2,000 games from their existing Steam, Epic or Xbox libraries.

The service removes ads and lets users skip the queue that typically adds two minutes or more of wait time on GeForce Now's free tier. Users get 10 hours of cloud gaming each month. Up to five unused hours can roll over to the following month. Nvidia offers other paid plans starting at $9.99 per month that support higher resolutions, faster frame rates, RTX ray-tracing, and access to a larger game library that includes thousands of additional titles. The companies did not announce pricing for Fast Pass after the first year ends.