Call of Duty: Modern Warfare 3 shattered sales records when it launched last November. The wildly popular first-person shooter sold an estimated 6.5 million copies and pulled in more than $400 million during its first 24 hours of availability, and more than 12 million copies were purchased over the game’s launch week, racking up about $740 million in revenue. But Activision isn’t done, of course, and the next major launch in the Call of Duty franchise is shaping up to be a big one. ”The next Call of Duty will bring meaningful innovation to the series,” Activision Publishing chief Eric Hirshberg told The Guardian. The executive wouldn’t elaborate on exactly how the next major CoD release — presumably Call of Duty: Black Ops 2 — might revolutionize the popular game, but he undoubtedly piqued the interest of millions of gamers around the world. Despite being released in mid-November last year, Activision’s Call of Duty: Modern Warfare 3 was still the best-selling video game in the U.S. last month according to recent data from market research firm The NPD Group.

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AT&T is increasing the fee charged when subscribers upgrade to new handsets on contract beginning this Sunday. BGR has been informed by multiple readers via email that AT&T has sent them notices regarding the increased fee, which had previously been $18. ”Because the overall costs associated with upgrading to a new device have increased, effective Sunday, February 12, 2012, AT&T will change its upgrade fee from $18 to $36,” AT&T said in a note to dealers obtained by BGR. An AT&T spokesperson did not immediately respond to a request for comment. A portion of the memo follows below.

UPDATE: AT&T has confirmed the change. “Wireless devices today are more sophisticated than ever before. And because of that, the costs associated with upgrading to a new device have increased and is reflected in our new upgrade fee,” an AT&T spokesperson told BGR via email. “This fee isn’t unique to AT&T and this is the first time we’re changing it in nearly 10 years.”

Sales of video game hardware and software in the United States plummeted last month according to new data from market research firm The NPD Group. The firm’s January figures suggest that sales of video game hardware fell 38% to $199.5 million, down from $324 million in January 2011. Video game software sales slid 38% as well in January, falling to $355.9 million, and sales of accessories in the U.S. dropped 18% year-on-year to $195.2 million. Total industry sales were down 34% to $750.6 million. “January retail performance experienced steep declines with a lack of software launches, and poor Hardware and Accessory performance partly related to bad comps from Kinect-related success in Jan’11,” NPD analyst Liam Callahan said in a statement. “Outside of new physical retail sales, we estimate that the consumer spend on other ways to acquire content including used games, full game and add-on content downloads, social network games, mobile games, rentals and subscriptions accounted for an additional $350 – $400 million in sales.” Callahan noted that Microsoft’s Xbox 360 was the best-selling console for the sixth consecutive month in January, and Call of Duty: Modern Warfare 3 was the top-selling software title. A complete list of NPD’s top-10 games for the month follows below.

Hackers from the notorious group “Anonymous Operations” claim to have taken down the United States Central Intelligence Agency’s website shortly after 3:00 p.m. EST on Friday. “CIA TANGO DOWN: cia.gov,” a member of Anonymous posted to one of the group’s Twitter accounts. Anonymous’s motivation for this most recent cyberattack on the CIA is unclear, but this high-profile hit could be one of the group’s most significant attacks yet. As of the time of this writing, cia.gov was still offline.

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Amazon is reportedly preparing to launch an updated 7-inch Kindle Fire alongside a brand new 9-inch tablet this summer. Pacific Crest analyst Chad Bartley on Thursday raised his full-year Kindle Fire shipment forecast to 14.9 million units, up from his earlier estimate of 12.7 million. “We believe there is an upward bias, particularly from the new 7- and 9-inch models, which we expect to launch in mid-2012,” Bartley wrote in a note to clients. BGR exclusively reported last May that Amazon was working on two tablet models, the 7-inch “Coyote” that ended up launching at the Kindle Fire last November, and the quad-core 10-inch “Hollywood.” A later report would suggest that Amazon tweaked its tablet roadmap, however, pushing the release of its 10-inch model back in order to first  launch a new 8.9-inch tablet. Bartley also lowered his shipment estimates on Amazon’s E Ink Kindle eReaders from 28.6 million units to 24 million units.

Copyright holders thought they had scored a major victory last month when one of the biggest file-sharing networks in the world was shuttered. Megaupload had been responsible for an estimated 30% to 40% of all file-sharing traffic worldwide, but a recent study suggests that the network’s closure did absolutely nothing to slow piracy related to file-sharing. To compound matters, another network that has flown under the radar for some time has now been dragged into the spotlight, and it may pose one of the biggest threats yet to copyright owners and their content. Read on for more.

“Tribler” is a peer-to-peer file-sharing client that is completely decentralized. “The only way to take it down is to take the Internet down,” the software’s creator says.

The Tribler BitTorrent client has been in development for more than five years and according to the researchers at Delft University of Technology in the Netherlands who built it, it has experienced 100% uptime since it first launched.

Unlike standard BitTorrent clients that rely on torrent sites to find and download content, Tribler is based on true peer-to-peer technology that requires no intermediate servers. Instead, the client installed on users’ computers communicates directly with other PCs on which Tribler is running.

“Our key scientific quest is facilitating unbounded information sharing,” Tribler creator Dr. Pouwelse told TorrentFreak in a recent interview. “We simply don’t like unreliable servers. With Tribler we have achieved zero-seconds downtime over the past six years, all because we don’t rely on shaky foundations such as DNS, web servers or search portals.”

Though it took an extensive investigation and coordinated efforts across multiple continents to take down Megaupload and its founder Kim Dotcom, the task was simple compared to stopping the threat posed by decentralized clients like Tribler. Joe Morganelli, founder of copyright consulting firm Morganelli Group, thinks true peer-to-peer clients like Tribler will change the way BitTorrent is used, making it infinitely more difficult for authorities and copyright owners to combat piracy.

“With no central location it will make going after individuals so much more important,” Morganelli told BGR in an interview, though he acknowledges that this approach has not been terribly effective in the past. ”The crusade against a normal individual has had very little effect since there are millions of people,” Morganelli continued. “With the central location, it makes for an easy lawsuit.”

Tribler is free to download and use, and its code is completely open source.

Following Apple’s blowout December quarter during which it shipped a record 37 million iPhone handsets and 15.4 million iPad tablets, a significant shift has taken place. iOS’s share of U.S. Web traffic as observed during a six-month study conducted by leading ad network Chitika has surpassed Apple’s Mac OS Web traffic share for the first time. Read on for more.

Chitika monitored traffic across its network between mid-August 2011 and early February, and compared the volume from Apple’s iPhone, iPad and iPod touch devices to traffic from Mac computers. The study covered hundreds of millions of ad impressions and it used user agent data to determine Web traffic share for each platform. According to Chitika’s data, iOS’s Web traffic share finally topped Mac OS earlier this month.

“The data shows that the web market shares of iOS and OS X have been converging steadily since August,” Chitika’s Gabe Donnini noted in the firm’s report. ”iOS has been posting regular gains, and has experienced an overall growth of nearly 50%, whereas OS X has seen its market share decline by 25% since a high point in September. February marks the first point where a reversal in position can be seen in the respective operating systems. iOS passes Mac OS with 8.15% of all web traffic, whereas Mac OS only sees 7.96%.”

The trend observed by Chitika is likely to continue, and the disparity between iOS Web traffic and Mac OS traffic will almost certainly grow. Apple’s MacBook line of notebook computers saw growth recently that outpaced the rest of the PC industry, but the growth in Apple’s PC division pales in comparison to its mobile devices.

The proliferation of iOS devices around the world is expected to continue as Apple releases its iPad 3 early next month and a completely redesigned next-generation iPhone later this year.

Apple is once again rumored to be going against the wishes of late co-founder Steve Jobs as it prepares to launch a 7-inch version of its popular iPad tablet. While speaking with Computerworld, Technology Business Research analyst Ezra Gottheil said that Apple may be preparing to launch two new products following the imminent release of the iPad 3. One is a case accessory that includes an integrated wireless keyboard, and the second is the oft-rumored iPad mini, which the analyst says will launch later this year. “I believe that’s always been in the plan” Gottheil said. “Actually that’s a good form factor for some users, and although they will also charge a premium above other similar-sized tablets, they want to protect that price flank.” Former Apple CEO Steve Jobs openly opposed the idea of a 7-inch tablet, noting that the smaller screen size inevitably mars the user experience. Even still, this would not be the first time a device would launch that contradicts Apple’s earlier claims. Earlier reports suggested the smaller iPad model will launch in the third-quarter this year.

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Images of an unannounced Android smartphone from HTC have been published online ahead of a possible announcement at the Mobile World Congress trade show later this month. The nameless device features a design similar to Verizon Wireless’s DROID Incredible line of phones, leading phoneArena.com to speculate that it could hit the market as the DROID Incredible 3. The smartphone is running Android 4.0.1 Ice Cream Sandwich along with Sense 4.0 — just like the HTC Ville — and other notable specs include a dual-core 1.2GHz processor, 1GB of RAM, an 8-megapixel camera and 4G LTE connectivity. Given the timing of the leak, we may see HTC introduce the phone alongside the ultra-thin HTC Ville and the flagship quad-core HTC Edge at MWC in late February. A few more images of the phone follow below.

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A new exploit has been discovered that allows unauthorized access to a user’s Google Wallet account with a simple hack that can be performed by anyone in a matter of minutes. A security firm recently exposed a Google Wallet vulnerability that allowed hackers to bypass PIN protection, but the vulnerability is only present on rooted Galaxy Nexus handsets. This new exploit, however, does not require a handset to be rooted, which leaves all Google Wallet users exposed. Read on for more.

As mobile blog The Smartphone Champ explains, the newly exposed security hole allows someone to simply reset a user’s Google Wallet password by clearing the Google Wallet application data from within the phone’s settings menu. A user’s Google Wallet PIN is not required to wipe this data and once the information has been cleared, the handset will prompt the user for a new PIN without first requiring that the old PIN be entered. Anyone who performs this simple procedure will be able to access funds on the original user’s Google prepaid card.

A Google spokesperson acknowledged the vulnerability and gave the following statement to Android and Me: “We strongly encourage anyone who loses or wants to sell their phone to call Google Wallet support toll-free at 855-492-5538 to disable the prepaid card. We are currently working on an automated fix as well that will be available soon. We also advise all Wallet users to set up a screen lock as an additional layer of protection for their phone.”

A video demonstration of the simple hack follows below.

[Via Android and Me]

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Google is preparing to launch a new cloud storage service that will compete directly with popular start up Dropbox and similar services. The Wall Street Journal on Wednesday evening reported that Google is almost ready to announce the new service, which will be called Google Drive. Similar to Dropbox, which creates a virtual drive containing files that are mirrored on a user’s local hard drive and on cloud servers, Google Drive will allow users to store photos, videos, documents and other files in the cloud, and it will be accessible from computers as well as Android tablets and smartphones. The service will launch in the coming weeks according to the report, and it will be free to most users, though the report does not elaborate on the amount of free storage Google will provide or which customers might be charged.

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Owners of Apple’s iPhone and iPod touch can now enjoy a remake of the first-ever PC game, co-written by Bill Gates himself, which came pre-installed on several IBM computers in 1981. First released late last month, XVision’s DONKEY.BAS is a terrific recreation of the PC game by the same name. Players control a race car as it advances up the screen. Donkeys repeatedly come into view, and the simple goal is to switch lanes before colliding with any curious creatures. “We did this game as a tribute to the original,” XVision founder Johnny Ixe told BGR, noting that the firm added a number of new features to the game in order to distinguish it from the original. The spirit of the game remains, however, and gamers looking for a bit of nostalgia would be hard-pressed to find a better blast from the past. DONKEY.BAS is available now in the App Store for $0.99.

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The National Oceanic and Atmospheric Administration, an agency within the United States Department of Commerce, will stop using BlackBerry phones later this year and instead supply workers with Apple’s mobile devices. In a memo relayed by Loop Insight, NOAA’s Chief Information Officer and Director for High Performance Computing and Communications said that support for BlackBerry phones will cease in May of this year. Apple’s iPhone 4 and iPhone 4S will replace the agency’s BlackBerry handsets, and NOAA plans to adopt current and future generations of Apple’s iPad tablet as well. Research In Motion’s BlackBerry smartphones have been the U.S. government’s go-to solution for wireless devices due to their enhanced security and robust messaging capabilities. Loop Insight’s report did not indicate that the NOAA memo provided an explanation for the agency’s decision.

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The recent federal takedown of notorious file-sharing service Megaupload was initially seen as a huge victory for owners of copyrighted music and movies, but new research shows this may not be the case. Federal prosecutors successfully shuttered the service last month and arrested seven men associated with Megaupload including site founder Kim Dotcom, who is said to have earned $42 million from the site in 2010 alone. What was initially thought to be a victory for movie studios and record labels is turning out to be an empty win, however, as Megaupload’s closure has had almost no impact on file-sharing. Read on for more.

Internet consulting firm DeepField Networks analyzed Web traffic from six companies that provide the storage facilities responsible for roughly 80% of all file-sharing traffic. According to the firm, Megaupload’s files accounted for a huge portion of that traffic before a series of raids took the service offline last month; between 30% and 40% of all file-sharing downloads came from Megaupload.

The service moved so much data that global Internet traffic immediately decreased by between 2% and 3% when Megaupload’s services were taken offline on January 18th.

As big as Megaupload was, however, the service’s closure has not had the effect on file-sharing that copyright owners might have hoped. According to DeepField, Web traffic related to file-sharing recovered almost immediately as users simply utilized other services such as Rapidshare and Mediafire.

To compound matters, it looks like Internet Service Providers in the United States will likely take the biggest hit following Megaupload’s closure. ”Instead of terabytes of North America Megaupload traffic going to U.S. servers, most file sharing traffic now comes from Europe over far more expensive transatlantic links,” DeepField noted.

When new CEO Thorsten Henis took the reins at Research In Motion, he immediately pointed to the smartphone vendor’s marketing strategy as an area the company needed to focus on if it hoped to regain share in key markets like the United States. The wheels on RIM’s recent marketing efforts had already been set in motion, however, and early reports suggest that the increased volume of familiar BlackBerry ads aren’t having the impact RIM was hoping for. Read on for more.

RIM ramped up its marketing efforts in January, but the move does not appear to have paid off. “Our January checks indicated weak sell-through trends for the new BlackBerry 7 smartphones despite increased marketing efforts,” Canaccord Genuity analyst Mike Walkley wrote in a research note to investors late Wednesday night. “With very strong share gains for the iPhone 4S, increasingly price competitive Android smartphones, improving Windows smartphones, and strong sales of the affordable 7 inch Amazon Kindle Fire tablet, we anticipate increasing competition across all tiers of RIM’s products in C2012.”

As a result of weakening device sales and RIM’s poor outlook for the current quarter, the analyst lowered his estimates for RIM’s February quarter as well as the vendor’s full fiscal year. And despite a new round of marketing that kicked off in February with RIM’s “Be Bold” campaign, Walkley doesn’t see much changing for the Waterloo, Ontario-based until late in 2012.

“Given the strong share gains for Apple post the launch of the iPhone 4S and increasing Android and Windows competition in all price tiers, we believe BlackBerry 7 products will continue to struggle until BB10 products launch in late C2012,” the analyst noted. RIM expected to launch its first QNX-powered BlackBerry 10 smartphone — code-named the BlackBerry London — toward the end of the third quarter or early in the fourth quarter.

Walkley reiterated his Hold rating on RIM’s stock and maintained his $15 price target.