Yusuf Mehdi, the CMO of Microsoft’s Interactive Entertainment Division, announced on Tuesday that more than 67 million Xbox 360s have been sold since the console launched in 2005, and it has generated more than $56 billion in sales. The motion sensing input accessory, Kinect, has sold more than 19 million units and the company’s Xbox Live service now boast 40 million members. Xbox users are spending more time on the system and are averaging 84 hours of usage each month. Mehdi also revealed that Microsoft holds a 47% market share of the current-generation console market, however he did note that sales, while continuing to increase year-over-year, are slowing down.

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Amazon announced on Tuesday that its Prime Instant Video service and access to “Your Video Library” is now available to Xbox Live Gold subscribers. The streaming service, which is available as a part of Amazon Prime for $79 a year and offers customers free two-day shipping, features more than 17,000 movies and TV episodes, including hundreds of Paramount films. “Working with Amazon.com marks a significant milestone in our mission to make the entertainment you love more amazing on Xbox,” said Ross Honey, general manager of Xbox LIVE Entertainment and Advertising, Microsoft Corp. “By bringing the Amazon Instant Video app to Xbox LIVE and adding voice search and voice control through the magic of Kinect, we’re transforming the way people discover and experience entertainment.” Amazon’s press release can be found after the break.

Amazon Instant Video Now Available on Xbox 360, with Access to ‘Your Video Library’ and Prime Instant Video

Customers can now watch the latest movies and TV episodes on the Xbox 360 video game and entertainment system from Microsoft and use Kinect for Xbox 360 to find and play videos with the wave of a hand or sound of their voice

Prime members can instantly stream more than 17,000 movies and TV episodes to their Xbox 360 console with shows such as 24, Downton Abbey and Chappelle Show, and movies like Mission Impossible 3 and Forrest Gump

SEATTLE–(BUSINESS WIRE)–May. 29, 2012– (NASDAQ: AMZN) – Amazon.com, Inc. and Microsoft Corp. today introduced a new Amazon Instant Video app for Xbox LIVE Gold subscribers that gives customers access to movies and TV episodes on their Xbox 360 console. The app also offers access to Prime Instant Video, a service with more than 17,000 movies and TV episodes available to Prime members at no additional cost. Customers who are Xbox LIVE Gold subscribers can find the free Amazon Instant Video app in the Xbox LIVE Marketplace for Xbox 360. For more information on how to watch those videos on Xbox 360 visit, http://amazon.com/instantvideo/xbox.

“Amazon Instant Video on the Xbox 360 console is among one of the most requested video features from our customers, so we are excited to offer yet another way for customers to enjoy Amazon Instant Video,” said Anthony Bay, Amazon.com vice president for video. “With Amazon Instant Video on Xbox 360, Xbox LIVE Gold members can start enjoying new release movies, current TV episodes and Prime Instant Video right away. Our integration with Kinect for Xbox 360 lets customers play and search for videos with the wave of a hand or the sound of their voice, and our Whispersync technology allows customers to seamlessly switch between watching on their Kindle Fire and their Xbox 360 console, without losing their place. Also, Watchlist is a great new feature that lets customers keep a running queue of videos they want to see in the future.”

“Working with Amazon.com marks a significant milestone in our mission to make the entertainment you love more amazing on Xbox,” said Ross Honey, general manager of Xbox LIVE Entertainment and Advertising, Microsoft Corp. “By bringing the Amazon Instant Video app to Xbox LIVE and adding voice search and voice control through the magic of Kinect, we’re transforming the way people discover and experience entertainment.”

Customers can visit the Amazon Website to shop for any of the more than 120,000 movies and TV episodes. Purchased or rented movies and TV episodes appear automatically in Your Video Library on the Amazon Instant Video app for Xbox 360. Amazon Instant Video offers the latest hit movies like Mission Impossible: Ghost Protocol, We Bought a Zoo, and The Grey, and popular TV shows Mad Men, Fringe, Vampire Diaries and Once Upon A Time.

Prime Instant Video includes hit TV shows like Glee, Downton Abbey and Sons of Anarchy and classic movies such as Office Space, The Graduate and Brokeback Mountain. In addition to receiving free two-day shipping on millions of items and access to thousands of books from the Kindle Owners’ Lending Library, Prime members can instantly stream more than 17,000 TV episodes and movies, all for just $79 a year. If you are not a Prime member you can start a free one-month trial today.

The new Amazon Instant Video app for Xbox 360 includes:

• The ability to browse and play videos with the Xbox 360 remote control or Kinect voice and gesture commands.
• Instant streaming of thousands of high-definition movies and TV episodes that start and resume in just seconds.
• Watchlist for Amazon Instant Video – allows customers to create a list of things they want to watch, and find those movies and TV episodes easily.
• Whispersync – lets customers seamlessly switch from one device to another. Customers can start streaming a movie on Kindle Fire, then pick up right where they left off on their Xbox 360 console and avoid the frustration of having to find their spot.
• Your Video Library – customers can access their purchases from Amazon Instant Video on the Xbox 360 or any of the hundreds of other devices enabled for Amazon Instant Video. For a list of compatible devices click here.

NPD Group last week announced that video games sales for the month of April were down 26% and software sales plummeted from $630.4 million to $307.2 million, representing a 42% decline from April 2011. The numbers shocked industry analysts, who predicted a maximum software decline of 27%. The only segment of the gaming industry that did not suffer was the accessories segment, which grew a mere 0.5% from $147.8 million last year to $148.6 million this year. According Gamasutra analyst Matt Matthews, “should the contraction from 2011 continue at this pace, annual U.S. retail video game revenue in 2012 could fall below the $12.6 billion figure from 2006,” representing a six-year low since the first full year of Xbox 360 sales and the launch year for both the Nintendo Wii and Sony PlayStation 3.

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As previously rumored, Microsoft is now offering a subsidized 4GB Xbox 360 gaming console and Kinect for $99 with a monthly subscription option. The bundle requires customers to sign up for a two-year subscription to Xbox Live Gold Membership for $14.99 per month. The subscription plan is similar to the model wireless carriers have been using for years. If a customer is to break off the agreement prior to end of the 24-month contract period, early termination fees will apply. The deal is only available at Microsoft Stores for the time being. A chart from Microsoft outlining applicable early termination fees follows below.

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Microsoft is reportedly planning to launch a subsidized Xbox 360 and Kinect bundle with a monthly subscription option, according to The Verge. The software giant may offer its 4GB gaming console alongside its motion sensing input device for $99 with a two-year commitment, and an early termination fee will be included for contract breakers. Subscribers will then pay a monthly $15 fee that includes access to Xbox Live Gold, a two-year warranty and possibly additional streaming content as well. Microsoft will apparently position the package to compete against the Apple TV, Roku streaming box and PlayStation 3. The Verge reports that we could see an announcement as early as next week.

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Activision on Tuesday announced the next entry in the Call of Duty franchise, Call of Duty: Black Ops II, a sequel to one of the most successful games of all time. Treyarch, the studio behind the original Black Ops title, is developing the sequel. Call of Duty: Black Ops 2 propels players into a 21st Century Cold War, where technology has created a new generation of warfare. Activision chief Eric Hirshberg previously said, “The next Call of Duty will bring meaningful innovation to the series.” The game is available for pre-order now and is slated to be released on November 13th for PlayStation 3, Xbox 360 and PC. The official Call of Duty: Black Ops II trailer follows below.

​Approximately 27 million U.S. households, more than one in five, have either an Internet-ready TV, game console, standalone Blu-ray player, and/or smart set-top box connected to their home network, according to ABI Research. Gaming consoles are the most popular devices, with a connection rate of over 80%, followed by Internet TVs (27%), standalone Blu-ray players (24%) and smart set-top boxes (13%). The research also indicated that a relatively large number of consumers have not connected some devices to their home network, most notably Internet-ready TVs. ABI predicts that the combined penetration rates of all of the devices will reach 60% by 2017. The firm notes that while not all of these devices will be connected to a network, there is room for growth, however, as only 48.5% of consumers with a home network currently have one of these devices connected to the Internet.

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Electronic Arts and Crytek last week announced the highly anticipated next installment of the Crysis franchise, Crysis 3, alongside a 19-second teaser trailer. On Tuesday, the two companies issued the official gameplay trailer that showcases the game’s stunning graphics. The third installment of Crysis is set in 2047, and users control protagonist “Prophet” as he returns to New York only to discover that the city is covered by a giant Nanodome created by the evil Cell Corporation. This dangerous new world demands advanced weapons and tactics, such as a lethal composite bow, an enhanced Nanosuit and devastating alien technology that will turn Prophet into the deadliest hunter on the planet. The game, which is built using the latest CryENGINE technology, will be released in Spring 2013 on the Xbox 360, PlayStation 3 and PC, and is now available for pre-order. The full Crysis 3 gameplay trailer follows below.

NVIDIA sees its mobile system-on-a-chip graphics solutions surpassing the performance of the Xbox 360 in the coming years. A new graph the company shared with AnandTech highlights the performance of Tegra chips in comparison to those found within PCs and gaming consoles. The solid lines are estimated performance, while the dotted lines are trends. NVIDIA estimates that at some point in 2013, mobile graphic performance will match the Xbox 360 and by 2014, mobile performance will surpass that of the Xbox 360. Of course processor performance is hardly the only piece of the puzzle when it comes to gaming, and Microsoft and Sony will each have new consoles on the market in 2014.

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Microsoft on Wednesday announced the return of Master Chief and the Halo franchise with the release of “Halo 4″ on November 6th. The franchise was originally imagined as a trilogy, with the game’s third installment becoming the biggest consumer product launch of all time when it was released in 2007. Many questions were left unanswered, however, and fans of the series wanted more. The game is set four years after the events of Halo 3, as Master Chief returns to confront his destiny and face an ancient evil that threatens to destroy the entire universe. “We are beginning a new saga with ‘Halo 4′ and embarking on a journey that will encompass the next decade of ‘Halo’ games and experiences,” said Phil Spencer, corporate vice president of Microsoft Studios. “Millions of fans worldwide have been eagerly awaiting the opportunity to step back into the boots of Master Chief, and, with ‘Halo 4′ leading the charge, we’re confident 2012 will be the most successful year in Xbox history.” Additional details surrounding the game will be announced on CONAN Wednesday night on TBS at 11:00 p.m. EST. Microsoft’s press release follows below.

Master Chief Returns With Worldwide Launch of “Halo 4″ Beginning Nov. 6

Marking the return of gaming’s most iconic hero, the first chapter of a brand new “Halo” saga is the year’s most anticipated video game release.

REDMOND, Wash. — April 17, 2012 — The countdown has begun for the landmark entertainment event millions of fans worldwide have been anticipating for more than four years. “Halo 4,” the hotly anticipated sequel to the iconic franchise that has shaped entertainment history, will launch worldwide on Nov. 6, 2012.

“Halo 4″ marks the return of legendary hero Master Chief, named by Fast Company as “one of the most popular characters in gaming history1,” and aims to set a new standard for blockbuster interactive entertainment with the launch. Set four years after the events in “Halo 3,” Master Chief returns to confront his destiny and face an ancient evil that threatens the fate of the entire universe. Developed by 343 Industries, “Halo 4″ marks a new beginning for the landmark entertainment franchise that has sold more than 40 million games worldwide and inspired multiple New York Times best-selling novels, live-action shorts, comic books, action figures and apparel.

“We are beginning a new saga with ‘Halo 4′ and embarking on a journey that will encompass the next decade of ‘Halo’ games and experiences,” said Phil Spencer, corporate vice president of Microsoft Studios. “Millions of fans worldwide have been eagerly awaiting the opportunity to step back into the boots of Master Chief, and, with ‘Halo 4′ leading the charge, we’re confident 2012 will be the most successful year in Xbox history.”

“Halo 3,” the biggest consumer product launch of all time when it released in 20072, concluded the original game trilogy, but left many unanswered questions around the fates of the series’ beloved hero, the Master Chief, and his artificial intelligence companion, Cortana. On Nov. 6, fans will experience the next chapter of the iconic franchise. Tonight, Conan O’Brien will help celebrate this fall’s launch of “Halo 4″ with a special segment on “CONAN” on TBS at 11 p.m. PDT/10 p.m. CDT. Those interested should tune in and check out http://www.teamcoco.com or follow @TeamCoco on Twitter for updates and more details.

Devices like Apple’s iPad have shown the world that huge advances have been made in mobile gaming over the past few years. Featuring the Apple A5X processor with quad-core graphics, the third-generation iPad takes mobile video games to new heights on iOS devices, but technology blogs and the media tend to get a bit carried away in terms of comparisons between console gaming and mobile gaming. Gameplay itself paints an obvious picture, and the numbers do as well; Microsoft’s seven-year-old Xbox 360 console features floating-point performance of 240 Gflops and 500 million triangles while Apple’s brand new iPad is rated at a maximum of 7.2 Gflops and 35 million triangles.

The next-generation Xbox and PlayStation consoles currently being developed by Microsoft and Sony will make the disparity between these two classes of gaming even more vast, adding more fluid animation support and a number of additional enhancements that will make video games more realistic than ever. But even when confined to the capabilities present in today’s home consoles and PCs, new video game engines show us just how amazing gaming will be moving forward.

Ctytek, the lab behind the popular Crysis franchise, recently released the CryENGINE 3 SDK 3.4.0 DX11 update for developers as well as with a quick reel to highlight some of the engine’s capabilities. Along with companies like Epic Games, Crytek continues to push the envelope while enabling other developers to do the same, and this latest release will set the bar even higher. Crytek’s video trailer follows below.

Microsoft’s motion- and voice-based Kinect controller for the Xbox 360 video game console and Windows PCs is coming to Windows Phone 8, VR-Zone reported this week. The software giant is currently working on integrating the Kinect Natural User Interface with its upcoming mobile platform refresh. Microsoft is reportedly dedicating a number of resources to the project and hoping to have it available by the first or second update to its Windos Phone 8 operating system. The biggest developmental challenge thus far has apparently been the lack of room for Kinect cameras on smartphones. “Kinect has three cameras, one of which his infrared. We can’t put an IR camera on a smartphone, and without it, NUI won’t work in dark,” VR-Zone’s unnamed source claimed. Microsoft is said to be integrating Kinect technology to further entice consumers to adopt the Windows Phone platform.

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Sony is aiming to launch its next-generation PlayStation video game console ahead of rival Microsoft, a recent report claims. Microsoft’s next Xbox console — which could be an ARM-based “Xbox lite” that will launch ahead of a true Xbox 360 successor that will be released some time later — is widely expected to hit store shelves for the holidays in 2013. According to an unnamed source speaking with VG247, Sony plans to launch its PlayStation 4 console before Microsoft’s next Xbox makes a splash. ”Sony are completely in the belief that they have the jump on Microsoft this time,” the source reportedly said. The anonymous source continued, ”Top line publishers already know about it. Developers working with publishers – like Ubisoft, for example – already know what’s going on. They’re already working on it.” Both Sony and Microsoft are expected to unveil their next-generation consoles during the annual E3 gaming conference next year.

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Using nothing more than a few common tools, hackers can reportedly recover credit card numbers and other personal information from used Xbox 360 consoles even after they have been restored to factory settings. Researchers at Drexel University say they have successfully recovered sensitive personal data from a used Xbox console, and they claim Microsoft is doing a disservice to users by not taking precautions to secure their data. ”Microsoft does a great job of protecting their proprietary information,” researcher Ashley Podhradsky told Kotaku in an interview. “But they don’t do a great job of protecting the user’s data.” In order to avoid potential data theft, Podhradsky recommends users remove the hard drives from their consoles and wipe them while connected to a PC using special software. The Drexel researcher warns that not taking this precaution could have serious consequences. ”A lot of [modders and hackers] already know how to do all this,” she said. “Anyone can freely download a lot of this software, essentially pick up a discarded game console, and have someone’s identity.”

UPDATE: Microsoft contacted BGR via email with a statement regarding Kotaku’s report, which can be read below in its entirety.

“We are conducting a thorough investigation into the researchers’ claims. We have requested information that will allow us to investigate the console in question and have still not received the information needed to replicate the researchers’ claims.

“Xbox is not designed to store credit card data locally on the console, and as such seems unlikely credit card data was recovered by the method described. Additionally, when Microsoft refurbishes used consoles we have processes in place to wipe the local hard drives of any other user data. We can assure Xbox owners we take the privacy and security of their personal data very seriously.” – Jim Alkove, General Manager, Security, Interactive Entertainment Business at Microsoft

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Microsoft has begun to roll out an update for its Xbox Live service that includes new on-demand content from Comcast, along with apps from HBO and MLB, GigaOM reported on Monday. The launch these services will give users the ability to search through a wide range of content directly from their game console. In October, Microsoft announced a number of new content partners that would deliver movies, television shows and other content to its popular Xbox 360 game console. The system had already received updates that included apps from Verizon, Epix, Vevo, Vudu and YouTube. The launch of HBO Go comes as little surprise. In February, the company’s co-president Eric Kessler told reporters that the Xbox HBO Go app would go live on April 1st, in time for the season premiere of “Game of Thrones.” Microsoft fans noted that the company always releases updates on Tuesdays, however, and it was unlikely for HBO to roll out an update the day of the premiere to avoid download complications.

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