The games industry managed record sales of $17.9bn in 2007, up 43% from $12.5bn in 2006. The Wii, Xbox 360 and PS3 all saw their most successful sales figures in December, shifting a total of 1.4m, 1.3m and 800,000 units respectively, meaning that the Xbox 360 has now sold 8.5m units since its launch, the Wii 6.3m and the PS3 2.8m. However, the best selling console over Christmas was actually the Nintendo DS, which achieved sales figures of 2.5m in December. Meanwhile, the most successful game last year was Halo 3, which sold 4.82m copies, with Wii Play in second place on 4.12m and Call of Duty 4 in third on 3.04m.

Microsoft has announced the details of the free Xbox Live Arcade game that was promised by Xbox Live general manager Marc Whitten in response to the service's recent online troubles. Coming as a compensation to all the frustration caused, Microsoft will offer Chair Entertainment's arcade shooter Undertow for free to all Xbox Live members from 2AM PST on Wedenesday, January 23 until 11:59PM PST on Sunday, January 27. Otherwise, Undertow is normally available worldwide for 800 Microsoft Points. "If you have already purchased the game, you can contact support and they will take care of you," wrote Xbox Live programming director Larry "Major Nelson" Hryb.

For the current generation of gaming consoles, the Xbox 360 has several reputations. On the positive side, the Xbox 360 is the undisputed leader of online service and multiplayer, but on the negative side, it also holds a track record of being fairly unreliable. At one point, up to one-third of all Xbox 360 consoles experienced the hardware failure popularly known as the Red Ring of Death, which rendered the console unusable. While many from Microsoft's entertainment and devices division have spoken on the Xbox 360's reliability record, Bill Gates was mostly removed from commenting on the issue - until now. Speaking in a BBC Video interview, Gates revealed that it's now Microsoft's goal to make the Xbox 360 "the most reliable" console on the market.

According to Albert Penello, group marketing manager for Xbox hardware, the Xbox 360 console could be equipped with a Blu-ray add-on in the future if HD DVD fails to take off. Penello said:

It should be consumer choice, and if that's the way they vote, that's something we'll have to consider. I fundamentally don't think this has a significant impact on Xbox 360 versus PS3. You can't say it's not a bummer, not a setback, but I've seen this battle declared over so many times. I want consumers to have a voice in this and I think there are a lot of consumers who bought HD DVD who are going to have a say in how this shakes out.

Despite rumors to the contrary, Microsoft did not unveil an Xbox console with HD DVD capabilities built-in at CES, and has no plans to do so in the future, according to an executive in Microsoft's entertainment business. "Absolutely not," said Jeff Bell, corporate vice president of global marketing for interactive entertainment at Microsoft, when asked Monday if an HD DVD Xbox was in the works. Microsoft has been pushing HD DVD over Blu-ray as the format for high-definition video, but HD DVD suffered a significant setback last week when Warner Bros. said it would drop support for the format in favor of Blu-ray. Monday during an interview at CES in Las Vegas, Bell said Microsoft is taking a more agnostic view on how to serve up HD video. He said that it's up to consumers to make a choice between the two formats, not vendors. "We'll let the market decide how they're most interested in consuming entertainment," he said.

Microsoft Corp. and telecommunications leader BT announced they are bringing together the next-generation TV service BT Vision with Microsoft's Xbox 360 games and entertainment system. All BT broadband customers will have the unique opportunity to receive the best in high-definition gaming, television and movies through an Xbox 360 console, in a powerful, all-in-one entertainment experience. BT Vision, which is powered by the Microsoft Mediaroom Internet Protocol TV (IPTV) platform, plans to make this first-of-its-kind device and service offering available to customers in the middle of 2008. The announcement was made during the keynote address by Microsoft Chairman Bill Gates and Microsoft President Robbie Bach of the Entertainment & Devices Division at 2008 International CES on Jan. 6.

Publisher Ubisoft has announced Far Cry 2 for PlayStation 3 and Xbox 360. Set in Africa, the exploration-heavy first person shooter is slated to arrive within the 2008-2009 fiscal year, which begins in April. A PC version of the game was first revealed last summer. All editions of the game are being developed by Ubisoft Montreal, which previously handled the Xbox, Xbox 360, and Wii spin-offs of the first Far Cry (PC). Original Far Cry creator and developer Crytek is not involved with the project, as Ubisoft acquired the Far Cry and Crytek Engine rights in 2006.

Microsoft's chairman Bill Gates is set to make an "important announcement" regarding the Xbox 360 at next week's CES show in Las Vegas, reports The Seattle Times. The paper doesn't say exactly what Gates' revelation will regard at the electronic show, but it does go on to speculate that it might be the reveal of yet another Xbox 360 SKU with built-in HD-DVD playback. "In particular, Microsoft could work with Toshiba to develop a digital video recorder with a hard-drive, high-definition HD-DVD drive and Xbox gaming capabilities." says Seattle Times columnist Brier Dudley. "Microsoft could also make a splash by announcing plans to give the Xbox 360 an internal HD-DVD drive, putting it on par with Sony's PlayStation 3 that has a built-in Blu-ray drive." he also added. Built-in HD-DVD playback is the logical next step for the 360, but let's wait until next week and see what happens then.

It appears Microsoft has contracted the Saratoga, California firm, Gyration to develop a motion-sensitive add-on for the existing Xbox 360 controller. It is no accident that Gyration is the company responsible for the prototype designs of the Nintendo Wii-mote, which we all know has become a huge success. Most recently, the company was in the spotlight for creating a motion-sensing remote for Microsoft's Media Center. There're no details on when exactly the new motion-sensing Xbox 360 controller will see light. The company denied the rumour saying that "Microsoft does not comment on rumors or speculation" and that there's "nothing further to share." at least for now.

Hot on the heels of the announcement of two Devil May Cry 4 bundles for the PlayStation 3, Microsoft and Capcom have announced a Devil May Cry 4 Xbox 360 bundle. Available for only ¥37,800 ($330), the Xbox 360　Devil May Cry 4 Premium Pack includes a Japanese Xbox 360 "Standard Model" (which is almost identical to the U.S. Premium Edition except for the lack of a headset) and a copy of Devil May Cry 4. Furthermore, this pack is ¥10,000 cheaper than the PS3-DMC4 bundle. The Xbox 360 Devil May Cry 4 Premium Pack is scheduled for release on January 31, 2008. Below is a picture of the bundle:

Just in time for Christmas, Microsoft has unveiled the option for Xbox Live users to gift Microsoft Points, the currency used to purchase downloadable games and in-game content from the Xbox Live Marketplace as well as music from the Zune Marketplace. Currently in a beta state, the program, which also allows users to buy points for themselves, is accessible from this website. At present, the initiative is limited to people in the United States and gift-givers must know the Windows Live ID of the intended recipient, though Xbox Live director of programming Larry Hryb noted that the team is looking to add the option to gift by Gamertag in the future.

In time for the holidays, Microsoft is giving shoppers even more value by reducing the price of its incredibly popular Xbox 360 Wireless Racing Wheel by $30 to just $99 (U.S. ERP). The newly priced Xbox 360 Wireless Racing Wheel now comes bundled with a driver disc and a demo of the acclaimed "Forza Motorsport 2" including full force feedback support. The Wireless Racing Wheel is compatible with all of the most popular racing games on Xbox 360, including: Forza Motorsport 2, Project Gotham Racing 3/4, Test Drive Unlimited, Need for Speed Carbon, DiRT and Nascar 08.

Microsoft's popular Xbox 360 game console can create a strong and strange signal on wireless LANs, according to IT staff at Morrisville State College. It's not clear whether the signal disrupts the college's WLAN access points or students' wireless notebooks. There is some anecdotal evidence, however, that it at least affects other radios in the same 2.4GHz band. Morrisville IT staff typically use Bluetooth headsets, which run in the 2.4GHz band, with their cell phones when they troubleshoot problems on the spacious campus. "We had problems syncing our headsets to our phone where this signal was strong," says Matt Barber, the college's network administrator. A phone user had to physically touch the headset to the cell phone to make the initial connection, he says. There may be effects on the WLAN that the equipment itself, from Meru Networks, is circumventing, according to Barber. Part of Meru's WLAN architecture employs software that gives the access points more control over wireless-client transmission behavior than does the software of some of Meru's rivals. An access point near a radiating Xbox may be compensating for interference by in effect guiding a wireless laptop to send and receive when open spectrum is available, essentially dodging around the Xbox signal.

Nintendo managed the most successful sales figures in the USA for November, a month which saw console sales rocket thanks to Black Friday and the holiday season. Top of the pile was the Nintendo DS, which shipped 1.53 million units, followed by the Wii on 981,000 units. Microsoft's Xbox 360 came a reasonably close third, selling 770,000 units. Meanwhile Sony's three consoles came last despite improved sales, with 567,000 PSPs, 496,000 PS2 consoles and 466,000 PS3s being sold.

Microsoft Corp. today announced the release of the Xbox 360 HD DVD Emulator, enabling film studios and disc authoring companies to model the behavior of HD DVD disc content, including encoded video and HDi interactivity, in a virtual environment before committing to burning a single HD DVD disc. This comprehensive tool is among the first commercially available, software-based solutions of its kind, eliminating the need for expensive hardware or time-consuming and costly trial-and-error processes for testing HD DVD titles, helping to ensure that titles ship error-free.

A recent stratified random sample poll of 100 independent retailers, commissioned by the trade paper MCV, brought back surprising results. 49% of those surveyed believed that the Xbox360 would eventually trounce the competition, despite the fact that the same retailers are having trouble keeping enough Nintendo Wiis on shelves to meet demand. 35% felt that the PS3 had a fair chance of nabbing the best console award, and a paltry 16% felt that the Wii had a chance. Of course, these figures are mostly based one current retail performance. If Microsoft did not have such blockbuster titles as BioShock and Halo 3, and if Nintendo had ample stock of the Wii, chances are we'd be looking at much different figures.

Available for 800 Microsoft Points exclusively on Xbox LIVE 360 Marketplace, the Halo 3 Heroic Map Pack launches today. It consists of three new multiplayer maps, all customizable in Bungie's in-game editor Forge. This will be the first in a series of downloadable multiplayer maps from Bungie. Initial costs are $10 per pack, with Bungie and Microsoft announcing that they will become free when the next Halo 3 map pack is released this spring.

IBM made a major announcement today that they will be offering 32nm chips to their partners in the second half of 2009. This would mean that possibly the Xbox 360 could get even smaller chips than the 65nm "Falcon" CPUs. These new chips will up the power savings to 45% and speed boosts up to 30% over IBM's last generation of hardware. This will reduce the overheating issues, and maybe even make way for a smaller console. Consider this as rumour since there's no any official information from Microsoft, or any of the Xbox 360 OEMs.

Upon hearing that nearly 75% of all Blu-ray drives people own are built in to the PS3, Microsoft decided that the Xbox360 was a great way to promote the adoption of HD-DVD. However, if the player costs too much, nobody will go for it. And so, Microsoft lowered the price of the HD-DVD add-in drive to $129USD. You can nab one for yourself at Amazon and Toys R Us, if you're looking for a low-cost HD-DVD player. The drive can also be plugged into any PC and work just like it would on the Xbox360.

As promised, Microsoft is bringing some early gifts to your Xbox 360 just prior to the holiday season. Beginning at 0200 A.M. PST on December 4, 2007, the Xbox 360 Fall Dashboard Update will be available for all connected Xbox 360 consoles free of charge, bringing an array of new features and enhancements to the leading gaming and entertainment system.

Microsoft Corp. today launched the Xbox 360 Family Timer worldwide, available for download via Xbox LIVE in 26 countries. This is great news for parents because Microsoft research reveals that children's media consumption and time spent playing video games are universal concerns for families.

As promised, Microsoft is bringing some early gifts to your Xbox 360 just prior to the holiday season. Beginning at 02:00 a.m. PST on December 4th, the Xbox 360 Fall Dashboard Update will be available for all connected Xbox 360 consoles free of charge, bringing an array of new features and enhancements to the leading gaming and entertainment system. Among the key new enhancements are the previously announced Xbox Originals game download service, Family Timer parental control feature, DivX support and expanded social networking experiences. Xbox 360 owners can also look forward to enhanced navigation, profile and video features and Xbox LIVE Arcade Hits.

The Holiday comes a little early this year, as the BC team has just issued out another update which adds over 84 titles. The latest backwards compatibility update is now available over Xbox Live (or will be very soon.) This free update brings the complete list of original Xbox games that you can play on your Xbox 360 to over 300. Remember, your original Xbox games will look better than ever on Xbox 360 running in 720p and 1080i with anti-aliasing. You can also play cross-platform between Xbox 360 and the original Xbox over Xbox Live.

Social Networking to Arrive on Xbox 360

As most of you know, Microsoft is planning on upgrading the Xbox 360 dashboard to include things like parental controls. One of the more popular things that will be arriving to the new Xbox 360 dashboard will be an Xbox Live exclusive social networking site. Dubbed "Friends of Friends (FoF)", the social networking tool will allow gamers to find old friends or meet new ones. If, when the new tool comes out, you do not want to be part of FoF, please visit this link for instructions on avoiding FoF. The entire Xbox 360 Dashboard update is scheduled to arrive on December 4th.

All original Xbox owners who upgrade to Xbox 360 between November 21 and December 21, 2007, move their existing paid Xbox LIVE account to an Xbox LIVE Gold subscription and then register on this site (currently offline for some reason), will receive a copy of Halo 3. Sounds like a piece of cake, but in real life a special clause says your game will be fulfilled through mail by January 18, 2008.