An anonymous reader quotes a report from Gizmodo: It's time for Xbox to eat some humble pie and perform some real soul-searching. Microsoft released its latest quarterly earnings report and proved the worst of our fears about its gaming brand. Not only are Xbox hardware sales down significantly, but the brand itself is barely treading water. Gamers are voicing their displeasure with their wallets, but Microsoft's top brass is still only thinking about the margins. Microsoft was more keen to promote the scale of its cloud and AI services revenue -- which was up 28% year over year -- than talk about its beleaguered gaming brand. The company's overall gaming revenue fell by 2% compared to the same time last year. This was precipitated by a "decline in Xbox hardware," which was down by 22% following a steady decline quarter after quarter. Its first-party games and its Game Pass subscription were doing better, though the overall growth was only up by 1%, and even that was driven by the "better-than-expected performance" of third-party games. You can give credit to titles like Clair Obscur: Expedition 33 for why Xbox isn't in an even deeper hole than it is now.

The tech giant has no expectation that its Xbox brand will start making more money anytime soon. In its earnings call with investors, Microsoft Chief Financial Officer Amy Hood said the company expects Xbox will continue to decline "in the low to mid-single digits" for the following quarter. That's mostly due to the lack of landmark first-party titles. Just this month, Xbox released Ninja Gaiden 4, The Outer Worlds 2, and Double Fine's The Keeper. Xbox also made a huge marketing push for its first handheld, made in partnership with Asus, the ROG Xbox Ally and Ally X. In any other year, this would be a big month for any gaming company. The dour outlook comes after months of bad news. After two subsequent price hikes, Xbox Series S and Series X consoles now cost between $100 to $150 more than they did at launch five years ago. Microsoft also pushed prices of its Game Pass Ultimate subscription tier from $20 to $30 per month. A full-year's subscription would now demand $360. In a separate article, Gizmodo reviews Microsoft's new ROG Xbox Ally X handheld, which "offers a better experience overall" than the "other small-scale Windows PC gaming devices released this year." However, "it's still nowhere close to what you truly want from a console."

Microsoft shipped its first Xbox handheld nearly two weeks ago. The $600 white Xbox Ally cannot reliably sleep, wake, or hold a charge while asleep. Neither Microsoft nor Asus would admit there's a problem or offer a timeline to fix it after repeated requests by The Verge. Asus said it needs more time to test.

Installing Bazzite, a Linux-based operating system, solves the problems, the publication reports. The same hardware runs games up to 30% faster than Windows and beats the Steam Deck in all but one benchmark. Steam runs more responsively without Windows bloat. The device can be used like a Nintendo Switch, pausing games with the power button and resuming hours or days later. Bazzite initially had sleep issues but fixed them two days after programmer Antheas Kapenekakis obtained the hardware and consulted with two AMD contacts. The black Xbox Ally X, which doesn't have as many sleep issues, gets a similar speed boost with Bazzite.

Two Xbox Ally units tested on Windows repeatedly woke themselves at random intervals. One lost 10% battery after 12 hours of supposed sleep, the other 23%. After another 12 hours, both had only 30% battery remaining. One tried to apply a Windows Update while asleep. Both units refused to wake from sleep at times and required hard resets. Many users have reported similar issues on Reddit with both Xbox Ally versions.

Further reading: Microsoft's Next Xbox Will Run Full Windows and Eliminate Multiplayer Paywall, Report Says.

The best way to innovate in gaming is to have good margins, that's according to Microsoft chief executive Satya Nadella. He made the comments during an interview days after Bloomberg reported that Microsoft has expected unrealistic profit margins from its gaming division, which the report suggested was a likely reason for studio closures, game cancelations and thousands of layoffs at Xbox.

Nadella used the word "innovation" at least five times during the interview but never offered specifics about what he meant by it. He said Microsoft needs to "invent, maybe, some new interactive media" because gaming's competition is short-form video rather than other games. The CEO described Microsoft's new gaming strategy as being "everywhere, on every platform" after comparing the company's game publishing business to Microsoft Office. He said "the biggest gaming business is the Windows business" and added that he is looking forward to "the next console, the next PC gaming."

Nearly nine in ten Windows games can now run on Linux systems, according to data from ProtonDB compiled by Boiling Steam. The gains came through work by developers of WINE and Proton translation layers and through interest in hardware like the Steam Deck.

ProtonDB tracks games across five categories. Platinum-rated games run perfectly without adjustment. Gold titles need minor tweaks. Silver games are playable but imperfect. Bronze exists between silver and borked. Borked games refuse to launch. The proportion of new releases earning platinum ratings has grown. The red and dark red zones have thinned. Some popular titles remain incompatible, however. Boiling Steam noted that other developers appear averse to non-Windows gamers.

Microsoft's next Xbox console will run full Windows and allow users to exit the Xbox interface to access Steam, Epic Games Store, Battle.net, and other PC storefronts, according to Windows Central. The device will launch without a multiplayer paywall. Xbox CEO Phil Spencer told users last week to look at the Xbox Ally handheld for an indication of where Xbox is headed. The company has been using the Ally as a beta test to gather feedback on the experience that will power its next wave of console hardware.

The new Xbox will include the entire Xbox console library spanning original Xbox, Xbox 360, Xbox One, and Xbox Series X/S titles. These games will run natively and launch through the Xbox launcher's library. Users staying within the Xbox ecosystem will encounter an onboarding experience similar to current consoles. Those who choose to access Windows will be able to install PlayStation PC titles like God of War and Spider-Man purchased through Steam or Epic Games.

Electronic Arts has spent the past year pushing its nearly 15,000 employees to use AI for everything from code generation to scripting difficult conversations about pay. Employees in some areas must complete multiple AI training courses and use tools like the company's in-house chatbot ReefGPT daily.

The tools produce flawed code and hallucinations that employees then spend time correcting. Staff say the AI creates more work rather than less, according to Business Insider. They fix mistakes while simultaneously training the programs on their own work. Creative employees fear the technology will eventually eliminate demand for character artists and level designers. One recently laid-off senior quality-assurance designer says AI performed a key part of his job -- reviewing and summarizing feedback from hundreds of play testers. He suspects this contributed to his termination when about 100 colleagues were let go this past spring from the company's Respawn Entertainment studio.

"Around tables cluttered with dice, maps and character sheets, players are doing far more than playing," writes Phys.org. It's what sociologists call serious leisure — "a hobby that demands skill, commitment and personal fulfillment," according to an associate professor/program director for Florida International University's Rehabilitation and Recreational Therapy Program: To understand what makes D&D more than just a pastime, [associate professor Emily Messina] studies how games like this promote identity-building and connection... Beyond personal expression, Messina says the social and emotional benefits of D&D reflect the very traits that make serious leisure valuable: the sense of identity, the relationships built through shared experiences and the continued connection with the same group of people over time... The game can also provide structure and purpose for people managing mental illness who might not be able to hold a full-time job because of their symptoms. The game gives them structure versus filling their day with binge streaming...

Activities such as D&D can be used by young children as a reward structure or with older adults, such as retirees, to help provide a sense of purpose and daily rhythm. "Post retirement is one of the most dangerous points in an adult's life," she said. "They lose that sense of structure and possibly their social connection." Building structure through leisure pursuits after retirement has been shown to help maintain physical fitness, social interaction, cognitive processing and attention span and decrease depression. "The idea of structure and reward with desired pursuit can work for all ages," Messina said.
The research was published in Leisure Studies.

25 years ago today on Slashdot...

Hemos linked to a site called Joystick101 describing the crowd camping out to buy the limited number of just-released PlayStation 2 consoles (and games). "500,000 lucky members of the American gaming public are sneaking a few minutes of playing Madden 2001, Tekken, or Ridge Racer V before school or work..." wrote Joystick101. That same day CmdrTaco posted reports PS2s were selling for over $1,000 on eBay. And then Timothy updated that post to note someone saw one selling for $5,000.

But there was a third PS2 link posted on October 26, 2000... Hemos wrote a post titled "The PS2 — A Betamax In the Making?" — linking to an article by Mark Pesce (co-inventor of VRML and, in 1993, an Apple consulting engineer). "Microsoft promises Xbox will deliver ten times the performance of the PS2," Pesce wrote, noting Microsoft had partnered with Intel and "upstart video-chip developer Nvidia": The strangest thing about this battle of giants is that Microsoft has become a champion of open standards, encouraging developers to write Xbox titles without requiring them to pay any licensing fees. In comparison, Sony charges a minimum of $25,000 for access to the documentation and technology of the PlayStation2, plus a hefty license fee on every game sold. In the video-game industry, the Big Three — Sony, Nintendo, and Sega — sell the hardware at a loss (the PS2 costs nearly the $300 it will retail for) and recover their investment in the stiff licensing fees paid by game developers for the "key" that allows their software to work on Sony's platform...

Having committed an astounding $500 million to market the Xbox next Christmas, it's clear that Microsoft doesn't mind taking a short-term loss to ensure an eventual win. If Sony's not careful, this could turn into "Betamax, the Sequel." Twenty years ago, Sony tightly controlled the titles made available for its technically superior videocassette player — specifically, no adult content — and found themselves quickly locked out of an incredibly lucrative market for adult and family content. If Sony keeps a tight grip on the PS2, they may actually help Microsoft create the new VHS. But even if Sony loses this round (and no one wants to wager which way this battle will turn), they've already set their sights on the PlayStation3, to be released five years from now. Sony promises it will be a thousand times faster than the PS2.
Ironically, Pesce's warning about possible threats to the PS2's longevity was published by online magazine Feed-- which seven months later went out of business.

And this week it was announced that even Microsoft's Halo Campaign Evolved will now be coming to PlayStation 5, with Slashdot publishing six PlayStation-related stories in just the last three months in 2025.

Thanks to long-time Slashdot reader crunchy_one for suggesting a "25 Years Ago" Slashdot post.

Electronic Arts (EA) has partnered with Stability AI, creator of Stable Diffusion, to co-develop generative AI tools aimed at accelerating game development. "I use the term smarter paintbrushes," Steve Kestell, Head of Technical Art for EA SPORTS said in the announcement. "We are giving our creatives the tools to express what they want." Engadget reports: To start, the "smarter paintbrushes" EA and Stability AI are building are concentrated on generating textures and in-game assets. EA hopes to create "Physically Based Rendering materials" with new tools "that generate 2D textures that maintain exact color and light accuracy across any environment." The company also describes using AI to "pre-visualize entire 3D environments from a series of intentional prompts, allowing artists to creatively direct the generation of game content."

Halo Studios (formerly 343 Industries) has announced Halo: Campaign Evolved, a full Unreal Engine 5 remake of the original Halo: Combat Evolved campaign, coming in 2026 for Xbox Series X, Windows PC, and -- shockingly -- PlayStation 5. "It's really a new era -- Halo is on PlayStation going forward," Halo Studios community director Brian Jarrard said on a livestream today. Polygon reports: Halo: Campaign Evolved is a from-the-ground-up remake of the first Halo game's campaign. It's being built in Unreal Engine 5 -- unlike previous Halo games, which have been developed with proprietary software. It aims to modernize the game without changing it on a fundamental level. [...]

As signaled by the name, Campaign Evolved will not feature PvP multiplayer, as its focus is on the campaign (Combat Evolved had splitscreen competitive multiplayer modes). However, you'll still be able to play Halo: Campaign Evolved with your buddies. It'll support splitscreen two-player local co-op as well as four-player online. Most notably, it'll support full crossplay and cross-progression.

Gameplay is being changed in ways that are more aligned with later entries in the series. Master Chief will be able to pick up and use enemy weapons that he couldn't use until later Halo games, like the iconic Energy Sword. He'll be able to pilot the Covenant Wraith tank in the original game for the first time, and can hijack vehicles (or get hijacked). Campaign Evolved is also implementing a sprint button, altering the way players can move about the battlefield. You can watch a reveal video for the game on YouTube.

Counter-Strike has long been known for two things: tight tactical FPS gameplay and a thriving player marketplace effectively valued at literal billions of dollars. Now, thanks to a recent update from Valve, the latter is in a downward spiral, having lost 25% of its value -- or $1.75 billion -- overnight. Polygon: First, some context. Counter-Strike is a free-to-play multiplayer shooter. As with most other F2P games, it generates revenue from selling cosmetics. They arrive in lootbox-like Cases, which are opened by Keys purchased with real-world currency. They can also be obtained through trading with other players and purchasing from Steam Community Market. Beyond Steam, unofficial third-party marketplaces for CS cosmetics have also popped up as channels for buying and selling items.

Because items are obtained at random through opening Cases, rarer items fetch the highest value on the open marketplaces. Items of lower-rarity tiers can also be traded in at volume for an item of a higher tier via trade up contracts. Previously, Knives and Gloves could not be obtained through trade up contracts, exponentially increasing their value as highly sought-after items. Prior to the most recent update, some Knives, like a Doppler Ruby Butterfly Knife, could fetch around $20,000 on third-party storefronts like CSFloat.

Following Valve's Oct. 22 update to Counter-Strike, the second-highest-tier, Covert (Red), can now be traded up and turned into Knives and Gloves. Essentially, this means that a previously extremely rare and highly sought-after cosmetic is going to be much more obtainable for those who increasingly want it, reducing the value of Knives and Gloves on the open marketplace. And this is where the market descends into a freefall. Now, that Butterfly Knife mentioned above? It's going for around $12,000, as people are essentially dumping their stock, with 15 sold over the past 16 hours at the time of this writing.

An Icelandic programmer successfully ran Doom on the European Space Agency's OPS-SAT satellite, proving that the iconic 1993 shooter can now run not just everywhere on Earth -- but in orbit. ZDNet reports: Olafur Waage, a senior software developer from Iceland who now works in Norway, explained at Ubuntu Summit 25.10 how he, a self-described "professional keyboard typist" and maker of funny videos, ended up making what is perhaps the game's most outlandish port yet: Doom running on a real satellite in orbit, the European Space Agency (ESA) OPS-SAT satellite. OPS-SAT, a "flying laboratory" for testing novel onboard computing techniques, was equipped with an experimental computer approximately 10 times more powerful than the norm for spacecraft. Waag explained, "OPS-SAT was the first of its kind, devoted to demonstrating drastically improved mission control capabilities when satellites can fly more powerful onboard computers. The point was to break the curse of being too risk-averse with multi-million-dollar spacecraft." (The satellite was decommissioned in 2024.) [...]

Running Doom in orbit was partly a challenge of portability and partly a challenge of the limitations of space hardware and mission control. The on-board ARM dual-core Cortex-A9 processor, while hot stuff for space computing hardware (which tends to be low-powered and radiation-hardened), was slow even by Earth-bound standards. Waage chose Chocolate Doom 2.3, a popular open-source version of Doom, for its compatibility with the Ubuntu 18.04 Long Term Support (LTS) distro, which was already running on OPS-SAT. Besides, Waage noted, "We picked Chocolate Doom 2.3 because of the libraries available for 18.04 -- that was the last one that would actually build.

Updating software in orbit is extremely difficult, so relatively little code would have to be uploaded. As Waage said, "Doom is relatively straightforward C with a few external dependencies." In other words, it's easy to port. [...] The only sign that Doom was running in space at first was a lone log entry. So, the team used the satellite's camera to snap real-time images of the Earth, then swapped Doom's Mars skybox for actual satellite photos. "The idea was to take a screenshot from the satellite and use that as the sky, all rendered in software using the game's restricted 256-color palette," explained Waage. Even this posed unexpected difficulties: "Trying to draw all of these beautiful colors with those colors," said Waage, "it's probably not going to work right off. But we tried gradient tests, NASA demo photos. It took quite a bit of tweaking." Eventually, instead of a fantasy Mars as the sky background, they got a good-looking, real Earth in the game's sky. The game itself ran flawlessly. After all, Waage said, "It ran beautifully. It's on Ubuntu."

Microsoft has set a 30% profit margin goal for its Xbox gaming division, Bloomberg reported Thursday, well above the video game industry's average of 17% to 22%. The target, implemented in fall 2023 by CFO Amy Hood, represents a sharp departure from Xbox's previous approach of allowing developers to focus on making quality games without specific financial constraints. Xbox historically maintained profit margins between 10% and 20% and reported a 12% margin for the first nine months of Microsoft's 2022 fiscal year.

The division has responded by canceling several projects that had been in development for more than seven years, including Everwild, Perfect Dark and Project Blackbird. It has also eliminated thousands of jobs and raised prices. In 2024, Xbox began releasing most of its games on rival Nintendo and Sony platforms. The heightened scrutiny comes as Microsoft prioritizes investment in generative AI while overseeing a gaming division that has struggled despite spending $76.5 billion on acquisitions.

U.S. Grandmaster and beloved chess commentator Daniel Naroditsky has tragically passed away at the age of 29. "The news has sent shockwaves around the chess community, which is grieving the loss of one of the most beloved and influential voices," reports Chess.com. From the report: The devastating news was first shared by Naroditsky's club, Charlotte Chess Center, on Monday, and confirmed by Chess.com with multiple sources: "It is with great sadness that we share the unexpected passing of Daniel Naroditsky. Daniel was a talented chess player, educator, and cherished member of the chess community. He was also a loving son, brother, and loyal friend. We ask for privacy for Daniel's family during this extremely difficult time. Let us honor Daniel by remembering his passion for chess and the inspiration he brought to us all."

Naroditsky, who was three weeks away from turning 30, has long been known as one of United States' most talented players. He achieved his grandmaster title at the age of 18 in 2013, and placed fifth among the highest-ranked juniors in 2015. His last FIDE-rating is 2619, which places him among the top 150 in the world, or the 17th highest-ranked in the United States. He has a peak rating of 2647 from 2017. He leaves a legacy that spans strong over-the-board competition and highly popular chess instruction and commentary on streaming platforms.

Florida Attorney General James Uthmeier has issued criminal subpoenas to Roblox, calling it a "breeding ground for predators" and accusing the platform of profiting while failing to protect children. NBC News reports: The subpoenas will allow prosecutors to gather more information about the alleged criminal activity on the platform, including evidence related to suspected predators and victims, according to Uthmeier. The concerns prompted Roblox to invest heavily in protecting younger users on its platform by tightening messaging rules for children under 13, intensive content moderation and AI-powered monitoring.

In an emailed statement to Reuters, Roblox said it prohibits sharing images and videos in chat, uses filters designed to block the exchange of personal information, and is working to implement age estimation for all users accessing chat features. "While no system is perfect, our trained teams and automated tools continuously monitor communications to detect and remove harmful content," a Roblox spokesperson said.