Microsoft will reportedly not launch the highly anticipated follow-up to the Xbox 360 this year. Cedrick Delma, Microsoft’s marketing director in France, recently told Le Point that he was “certain” the Redmond-based company would not release a new Xbox this year. Gamers shouldn’t give up all hope on at least getting a glimpse at Microsoft’s next-generation console this year, though. BGR exclusively reported last June that Microsoft has plans to unveil its Xbox 360 successor during this year’s E3 gaming show in Los Angeles. A few Microsoft patents recently suggested that the “Xbox 720″ might double as a set-top box complete with DVR functionality, and a rumor last week also suggested that the new console will be six times more powerful than the Xbox 360.

[Via The Verge]

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Microsoft may be preparing to discontinue its virtual currency system by the end of the year, according to Inside Mobile Apps. The software giant is reportedly looking to phase out Microsoft Points in favor of real money transactions. After the switch, customers with existing Microsoft Points balances will have them converted into their local currency. Microsoft is said to have already warned mobile developers to plan their upcoming downloadable content and in-app purchases in accordance with the change. The move isn’t all that surprising; Microsoft has been gradually introducing cash purchases for its full Xbox Live games instead of using the points system, which many have seen as confusing and unnecessary. Microsoft Points are currently used to purchase games and media content on Xbox Live, the Zune Marketplace and Windows Phone, however the system isn’t used universally, with certain features using real money transactions and others using points. Microsoft declined to comment on the story.

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Dave Cutler, who has been called the “father of Windows NT” has joined Microsoft’s Xbox team. “Dave is one of our brightest minds and is currently working on projects that will help advance our goals in the consumer space as we continue to grow the Xbox from a game-centric console to a complete home entertainment device,” a Microsoft spokesperson told ZDNET‘s Mary Jo Foley, who confirmed the move recently. Reportedly, Cutler will be tasked with taking Xbox “beyond a gaming platform” which could mean Cutler will work on creating the rumored Xbox 720 set-top box experience. In July, we exclusively reported that Microsoft will unveil the Xbox 720 during the E3 trade show later this year.

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It’s the end of an era. Microsoft announced last month that this year’s Consumer Electronics Show keynote will be the company’s last for the foreseeable future. The show definitely won’t be the same without Microsoft’s chief executive officer Steve Ballmer kicking things off with his unique brand of charisma, but all good things must come to an end. According to reports, Microsoft won’t have anything big to announce at this year’s keynote. Instead, Ballmer will recap the strong year Microsoft had in 2011 and discuss the company’s core consumer-facing products moving into 2012 including Windows, Windows Phone, Xbox and more. Mr. Ballmer always puts on a show, however, and we’re sure he’ll toss in a few surprises to keep things interesting. The keynote kicks off at 9:30 p.m. Eastern / 6:30 p.m. Pacific, so hit the break to follow all the action — and Ballmeresque yelling — as it unfolds.

8:54PM:Alright we're all seated and ready for Steve Ballmer to take the stage. Hopefully we hear some interesting news, although Microsoft did say earlier that it could just be a recap of the year. There's country music playing but we're not sure who it is.

8:55PM:Googled it for you, it's Scotty McCreery: Better than that. Not bad if you're a country fan.

8:57PM:We should be getting under way in about 30 minutes or so, enough time for you to order Dominos. Unfortunately we can't leave our seats to find a water fountain.

9:10PM:General admission is still filing in, we're just sitting here listening to the music.

9:14PM:Should be kicking off in about 20 minutes or so.

9:20PM:The music is still blaring but it looks like the people have slowly stopped flooding into the room.

9:27PM:We're being told to take our seats so this should be kicking off shortly.

9:29PM:And the lights are lowering!

9:30PM:"This place about to blow" is blaring over the speakers.

9:31PM:President and CEO of the CEA Gary Shapiro is taking the stage. "Welcome to the 2012 CES."

9:34PM:"In 1995 Bill Gates took to the CES stage for the first time to speak to the CES workshop, a small workshop. Bill walked into the Hilton by himself with his head buried in a book. He made some remarks, and then I fielded written questions from the audience. Bill said this revolution would be social. That was in 1995. In 1998 they launched a new concept, the CES keynote. We invited Bill [and others] to become the first CES keynoters. For 14 years Bill and his successor have taken the stage. As you've heard, Microsoft is taking a break from the keynote stage is 2013. As a company, Microsoft uniquely changed the world and productivity, more, Microsoft keynotes drew press. Microsoft took a risk on us early and we both benefitted. In the technology world we recognize change is the only constant. For CES and Microsoft to be fresh, innovative and enticing we agreed to a pause."

9:35PM:"We have nearly doubled in size since the first CES keynote. I offer gratitude and good will to Microsoft." He's comparing Microsoft to the founding fathers of this nation. "I would be shocked if a Microsoft leader does not return to this stage again in the next few years. Please join me in welcoming the CEO of Microsoft, Steve Ballmer."

9:36PM:Ballmer is on stage now and Shapiro is giving him a photo album highlighting Microsoft and CES together. Aww.

9:37PM:We hope this isn't just a history of CEA and Microsoft together..

9:37PM:There's a weirdo techno mashup of Bill Gates making announcements on stage. The Rock has a few appearances. It's weird.

9:39PM:Ryan Seacrest is taking the stage. "Thank you for that one scream over there." Might have been Corey.

9:40PM:He's thrilled to be here, not sure if the audience feels the same way.

9:40PM:We're going to talk about and hear what's next for Microsoft and the tech industry. Seacrest is promising Microsoft's latest gear so hopefully we hear some new announcements.

9:41PM:Seacrest is asking what we can expect. "Tonight I have a tremendous show, frankly," Ballmer said. "We have a chance in the next year to raise our game and product line to the next level across phones, tablets, TVs and the Xbox. The heart and soul of that will be our feature attraction tonight, the metro user interface.

9:41PM:"when you said Metro you looked at me in a strange way" - Ryan Seacrest.

9:43PM:We're starting with Windows Phone. This is a weird interview format where Seacrest is interviewing Ballmer. "We took a different approach than everyone else and we have a unique experience," Ballmer said. "If you take a look at it, the other phones all make the sea of icons the sea of applications the view of the world. What we've done is Windows Phone is have a better way by taking your people... and we put them right out there in front of you. It puts people first."

9:44PM:"It all gets put together for you right on the screen." Basically we're going over what we already know about Windows Phone as a mobile platform, nothing really new here.

9:45PM:Derek Snyder the Windows Phone product manager is on stage now. He's explaining the variety of features available from various Windows Phone vendors. And he's showing us what Windows Phone software looks like. Not sure why we're going over all of these features again.

9:50PM:Sorry internet trouble real fast there

9:54PM:The Lumia 710 and Lumia 800 will also launch in Canada on Telus and Rogers

9:56PM:Ballmer and Seacrest are going over the Lumia 900, which we'll bring you a hands-on of shortly. Nokia just announced it an hour or so ago so be sure to check out our live coverage of that on the BGR.com homepage.

9:56PM:Ryan Seacrest seems to like the phone.

9:57PM:Seacrest is playing with the HTC Titan II also and sounds somewhat excited about it. Now we're going to discuss Windows PCS.

9:58PM:Ballmer said there are now 1.3 billion Windows-powered machines in use today.

9:59PM:Windows is the most popular smart device around, Ballmer said.

10:01PM:There's a short clip of the latest Windows 7 powered devices playing.

10:01PM:Ballmer said change is the essence of this industry. Two things are constant. 1: Things change. 2: People don't want to compromise on what they have today. They want the best of what they have and the best of what they want.

10:01PM:We see a couple of the new ultrabooks rolling through the video.

10:03PM:Chief marketing officer for Windows Tami Reller is discussing the benefits of Windows 7. This is really just a recap of everything Microsoft has done this year, we suppose. Hoping something more exciting comes later in the keynote.

10:06PM:We're seeing a demo of how metro UI can be used on larger devices such as touchscreen monitors and laptops or tablets. There's a lot of swiping, natural touch-based gestures similar to what users do with their Windows Phones. It looks solid.

10:06PM:An NVIDIA Tegra 3 chip is powering the demo device.

10:08PM:We're seeing a demo of the Windows Store and cut the rope. Neat, but it's hard to be impressed after seeing so many stores lately.

10:11PM:We saw a quick look at the Windows 8 app store but it's hard to be impressed after we've seen so many new ones proliferate the market.

10:13PM:We saw a quick look at the Windows 8 app store but it's hard to be impressed after we've seen so many new ones proliferate the market.

10:14PM:The live tiles remind us a lot of Windows Phone 7.5 tiles but there's a cool zoomed-out feature that lets you see all of your tiles in one place.

10:16PM:Sorry for the multiple entries we're running into internet problems here with multiple devices.

10:16PM:We're looking at some new thin and light notebooks that will surely hit the market this year.

10:18PM:Samsung Series 9. Spectre from HP with the glass lid. A few devices that were unveiled today during CES that should be in consumer's hands soon.

10:18PM:Ballmer said that, by the time this keynote is over, more than 25,000 users will have adopted Windows 7.

10:19PM:A choir is taking the stage singing gospel-style music.

10:20PM:We're being told to watch the LSU game I think.

10:20PM:Oh it's a Tweet Choir. We get it.

10:21PM:Kind of wish we were talking about an Xbox 720 or something instead.

10:22PM:That was entertaining.

10:23PM:Now Seacrest is talking about the Xbox. "Did you expect to go from ground 0 to a household name a decade ago?" Ballmer says he was bullish and patient and that it represents the best of its NDA and Microsoft is really proud of the gaming console.

10:24PM:Ten years later we're the world sales leader. We have over 66 billion Xbox users. perhaps the most amazing things is we have over more than 40 million xbox live subscribers tuning in on a regular basis. Some for games, increasingly it's really an entertainment hub."

10:24PM:"Did I expect it 10 years ago? No. But I bet on it 10 years ago."

10:24PM:Now we're going to see an overview of the new Xbox software. This is all just a big recap..

10:25PM:But Ballmer does promise something "even more different" so maybe we'll get lucky.

10:25PM:18 million Kinect Sensors shipped over the past year.

10:26PM:Greg Davison from Microsoft's Xbox team is taking the stage to show us what's new from Xbox (the software update that landed in December).

10:26PM:We're going to see Kinect's voice controls. These are all features that are already available to all Kinect and Xbox owners.

10:27PM:We just saw a demo for searching for Harry Potter using Kinect. It works well.

10:30PM:Now we're seeing how a Lumia 900 with the Windows Xbox Companion can be used to control the Xbox. We've tried this at home with a different device and it actually works quite well.

10:31PM:Comcast Xfinity on Demand's library will soon be launching on Xbox. There's also a new News Corp partnership that will bring The WSJ, Fox content, and IGN to the Xbox video library.

10:32PM:Fox will add Family Guy, The Simpsons, House and more. The new content should be available in 2012.

10:32PM:"We're working with some of the best known creative artists and production companies to create..

10:33PM:Sesame Street Kinect TV just took the stage to demo two-way TV. Are there any kids in the audience?

10:34PM:Microsoft took the current episodes from Sesame Street to turn them into fully interactive experiences. You can use your voice to interact with the show.

10:35PM:They are "watching and playing" Sesame Street. Elmo introduced a move of the day "throw" anda number "4". Now when elmo spills his coconuts children can act and pretend to throw coconuts at Elmo to help him collect them again. You have to see it to understand it better, but the concept is cool.

10:37PM:Now Elmo is taking the stage. Same sort of interactive demo going on.

10:38PM:In this demo the young girl is part of the Sesame Street show and she's interacting with the virtual objects around her.

10:39PM:"The number of things you can do with interactive entertainment, video interactivity together..it's going to be amazing." - Ballmer

10:39PM:"Just as Kinect revolutionized entertainment, we'll see it revolutionize other industries. Education, healthcare and many many more."

10:40PM:Kinect is coming to Windows on February 1st. Pretty big news there folks.

10:40PM:Microsoft is working with more than 200 companies including United Health Group, Toyota, Mattel, American Express, Boeing and many more.

10:41PM:Microsoft Office 2010 is the fastest selling Office version in the history of Office.

10:42PM:We're just going over a few of Microsoft's other projects. Skype users have used more than 300 billion minutes in the last year.

10:42PM:Bing has a 30% market share in combination with Yahoo in the U.S.

10:42PM:The final question: What's next? "Windows 8 is what's next!"

10:43PM:There's nothing more important at Microsoft than Windows.

10:44PM:Metro will be huge for Microsoft across all of its platforms. In 2012 what's next? "Metro Metro Metro!"

10:44PM:"And of course, Windows! Windows! Windows"

10:44PM:That's all folks thanks for joining us!

A patent that was granted to Microsoft in December suggests the company is working on an Xbox game console that will double as a digital video recorder (DVR). The patent describes several processors that are dedicated to “game titles” and a second batch that are reserved for “game titles and system (including DVR).” Specifically, the patent details a system that is equipped with a “digital video recorder (DVR) application running alongside a television client component allows users to record media content on the gaming console.” The filing continues, “The recorded content can include television programming, gaming experience (whether local or online), music, DVDs, and so on.” It is unclear if Microsoft plans to launch both a regular Xbox 720 and a second version with DVR capabilities, or if the company will release a single Xbox that simply has the DVR option for those who want to use it. We exclusively reported in June that the Xbox 720 could make its debut at this year’s E3 show. 

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Apple sold 925 iPhone 4S handsets each minute during the device’s debut weekend, and it sells 81 iPads every 60 seconds on average. Research In Motion sells 103 BlackBerry phones, Amazon sells 18 Kindle Fire tablets and Microsoft sells 11 Xbox 360 consoles every minute. More than 700 computers are purchased around the world every 60 seconds, and 232 of them are infected by malware. That malware stat seems surprisingly low, however, when you consider that 2 million people watch online porn every minute. Read on for more.

Website design firm GO-Globe recently spread a variety of technology-related stats out across an infographic and the result helps us put a lot of things in perspective. Beyond the scary amount of Internet porn watched around the world, we can see just how entrenched various consumer electronics and digital goods and services have become in modern life.

Eleven million conversations take place using various instant messaging platforms every 60 seconds, 2,100 people check in using foursquare and 1,100 acres of virtual land are farmed in FarmVille. Thirty-eight tons of e-waste is generated around the world every minute, though we’re not sure if that stat includes all of the virtual land in FarmVille.

Every minute, $219,000 worth of payments are made using PayPal, $10,000 of which is sent from mobile devices. EBay is used to purchase over 950 items each minute and more than 180 of those purchases are made using mobile phones or tablets.

Surprisingly, perhaps, physical media maintains a huge presence in our lives despite the advent of the digital age. Four hundred and fifty Windows 7 discs are sold, 1,400 Redbox DVDs are rented and a staggering 2.6 million CDs containing 1,820 terabytes of data are created each minute. Four thousand USB devices are sold every 60 seconds as well, along with 2,500 ink cartridges.

It’s amazing how much happened every 60 seconds in 2011 and as the year draws to a close, we can’t wait to see what each minute will hold in 2012.

Microsoft just sold nearly one million Xbox 360 consoles last week alone, but we’re nearing the end of the road for video game consoles according to one industry visionary. Richard Garriott, known for having created the fantasy role-playing franchise Ultima and the massively multiplayer online role-playing game (MMORPG) Tabula Rasa, says converged devices such as computers, smartphones and tablets will soon render dedicated game consoles obsolete. Read on for more.

“I think we might get one more generation, might, but I think fundamentally they’re doomed,” Garriott told IndustryGamers in an interview. “I think fundamentally the power that you can carry with you in a portable is really swamping what we’ve thought of as a console.”

Smartphones and tablets have plenty of ground to cover before they can even come close to approaching the capabilities of the current generation of consoles, and we may see next-generation consoles launch as soon as next year. BGR exclusively reported in June that Microsoft plans to unveil its next-generation Xbox console at E3 next year, and Sony may also unveil its PlayStation 4 in 2012 according to recent reports.

Several industry leaders disagree with Garriott’s assessment. In a recent interview with BGR that will be published in the coming weeks, Saber Interactive co-Founder and CEO Matthew Karch suggested smartphones and tablets may never catch up to consoles in terms of capabilities and user experience. Consoles already have such a tremendous technology lead and the physical limitations of mobile devices will be a huge barrier until broadband data speeds and reliability reach a point where the bulk of game processing can be handled remotely.

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Microsoft announced on Tuesday that last week marked the Xbox 360′s best ever week of sales. The company sold more than 960,000 Xbox 360 consoles and more than 750,000 Kinect controllers last week. Microsoft also confirmed that more than 800,000 of the consoles it sold last week were purchased on Black Friday alone. ”We have seen tremendous excitement from customers for our hot holiday gaming offers,” said Chris Homeister, senior vice president and general manager of Home Entertainment at Best Buy, in a statement. “Xbox 360 was among the best-sellers at Best Buy this Black Friday, and is a testament to the continued popularity of the gaming category this holiday.” Microsoft’s full announcement follows below.

Entering the seventh year of its lifecycle, Xbox 360 just closed the biggest sales week in the history of Xbox, selling more than 960,000 consoles in the U.S. during the week of Black Friday.

Microsoft’s retail partners are equally excited about our sales performance this holiday.

“We have seen tremendous excitement from customers for our hot holiday gaming offers,” said Chris Homeister, senior vice president and general manager of Home Entertainment at Best Buy. “Xbox 360 was among the best-sellers at Best Buy this Black Friday, and is a testament to the continued popularity of the gaming category this holiday.”

Sales highlights in the U.S. during the week of Black Friday include:

• Xbox 360 sold more than 960,000 consoles in the U.S. alone, of which more than 800,000 were sold within a period of 24 hours – the biggest week of sales in Xbox history. (Source: Internal data)
• More than 750,000 Kinect for Xbox 360 sensors were sold in the U.S. – standalone and bundled. (Source: Internal data)

Activision’s Call of Duty: Modern Warfare 3 has become the fastest-selling video game in history, crushing previous records set by earlier titles in the Call of Duty franchise. The game lab on Tuesday announced that week-one sales of Modern Warfare 3 totaled 12.3 million units, making it the biggest launch of all time and pulling in an estimated $738 million in revenue. The Xbox 360 version of the game lead sales with more than 7 million copies, a record for game sales on a single console that was previously held by Call of Duty: Black Ops (5.8 million), and 4.8 million copies were sold for the PlayStation 3. Nintendo’s Wii split the remaining half-million copies with the PC version of the game. Activision announced late last week that the new title sold 6.5 million copies and reeled in $400 million during its launch weekend alone, also a record. We reviewed Call of Duty: Modern Warfare 3 last week and called it our favorite first-person shooter ever.

Sales of video games and video game hardware remained lackluster in October according to market research giant The NPD Group. Overall industry sales in the U.S. grew just 1% to $1.08 billion last month compared to October 2010. Total hardware sales were up 6% year-over-year to $295.6 million in October, and software sales were up 3% to $621.3 million. Sales of video game accessories in the U.S. dipped 5% to $135.9 million last month. Microsoft’s Xbox showed the most impressive growth among home consoles with unit sales up 20% from last October, while sales of Nintendo’s 3DS/DS line topped portable devices with 25% growth. November numbers should be a bit more impressive ahead of the holidays thanks to holiday sales paired with a number of high-profile launches including Call of Duty: Modern Warfare 3, which pulled in a record $400 million in sales during its first 24 hours of availability, and Halo Anniversary, which launches on Tuesday. NPD’s list of the top-10 video game titles follows below.

Microsoft’s Zune player is no more. Again. Last week, Microsoft put up a support page announcing that it would no longer build or sell Zune hardware, choosing to instead focus on Zune software for Windows Phone and other platforms. ”We recently announced that, going forward, Windows Phone will be the focus of our mobile music and video strategy, and that we will no longer be producing Zune players,” the company said in a statement on the Zune website. Shortly after the page went live, Microsoft said it was a mistake and pulled the note. Now, the page is live again and Zune devices are dead again — presumably for the last time. Zune player, we hardly knew ye.

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Sony announced on Tuesday that it is lowering the price of its 160GB PlayStation 3 console to $249, down from the console’s original $299 price tag. In addition, Sony will now sell the 320GB version of the PlayStation 3 for $299 instead of $349. The Japanese consumer electronics firm also dropped the price of the system in Japan and in Europe. The move is likely an effort to tackle Microsoft’s Xbox 360 console, which has been the best-selling console in the United States for past seven months according to the latest data from The NPD Group. Recent rumors have suggested Sony is already working on the PlayStation 4, which could launch as soon as next year to compete with Nintendo’s Wii U and Microsoft’s next-generation Xbox.

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On Tuesday, Microsoft noted several of the Games Hub changes that will go into effect when Windows Phone Mango launches this fall. Mango’s Games Hub will include new “Avatar Awardables” which, much like on the Xbox 360, will allow you to dress your avatar up with a number of unique clothing items. The first title to support Avatar Awardables will be the game “Chickens Can’t Fly.” Games Hub will also feature new game add-ons. For example, in the game “Beards & Beaks,” users will be able to purchase additional in-game add-ons using Microsoft Points. Microsoft will also provide deeper parental controls and will offer a new “Fast Async” technology that will improve turn-by-turn and multiplayer games. Read on for a link to Microsoft’s official Windows Team Blog where the company has also listed the next 14 Xbox LIVE titles that will be available for Windows Phone devices.

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Microsoft’s internal Tellme team is working on implementing speech recognition software into the Redmond-based firm’s portfolio of software and hardware products. Microsoft will build the feature into its new Windows 8 operating system, its Bing search engine, Windows Phone, Kinect and Xbox, Azure and other products, ZDNET has learned. We already know Microsoft’s upcoming Windows Phone Mango release will offer voice-to-text and text-to-voice functionality, but Tellme senior director of sales and marketing Ilya Bukshteyn told ZDNET‘s Mary Jo Foley that the HTML 5 speech tag will allow Microsoft to develop Windows 8 applications that are “speech capable.” The Tellme team is capable of taking conversational speech, querying your social networks and creating appointments, too. For example, one might say “I’m meeting Zach Epstein for sushi in Philadelphia on Wednesday,” and the voice-recognition tech can pull “Zach Epstein” from LinkedIn or Facebook, setup a calendar event and search for sushi in Philadelphia using Bing. Of note, it looks like we’re still several years away from seeing devices capable of deciphering natural conversation. Read on for more information.

Microsoft’s Tellme team recently posted the following explanation of its speech recognition work on its official blog:

We see a future where the service will know you: know your intent, your social and business connections, your likes and dislikes, your privacy preferences, and the things that define the context that’s important to you. The result will be a speech NUI service that helps you accomplish everyday tasks in a more natural and conversational manner. This service will simplify tasks that used to be tedious or impossible on a TV or other device, by combining an understanding of language and intent with a deep knowledge of you, the user. We envision a future where we build on the experiences we deliver today with Kinect for Xbox 360, Windows Phone, or Bing for iPad or iPhone apps, by enhancing the speech NUI experience to understand more layers of context: what you are doing, where you are doing it, the kinds of devices you are using and your historical preferences. Because this is a cloud-based service, your interactions will be able to persist over time, enabling you to pick up where you left off, regardless of what device you may be using.

[Via ZDNET]

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Microsoft is being sued for patent infringement over motion-sensing technology used in its blockbuster gaming accessory, the Microsoft Kinect. Ohio-based Impulse Technology has filed a complaint alleging that Microsoft’s Kinect controller infringes on seven of its technology patents. One patent referenced in the lawsuit covers “wide variety of games where the movement of a player is tracked in three dimensions…and certain exercise games where the motion of the player is tracked to effect movement of a virtual avatar, and the exertion of the user is monitored, including where the tracking of the player is done by the use of a camera.” A separate patent describes an “education system challenging a subject’s physiologic and kinesthetic systems to synergistically enhance cognitive function.” Impulse Technology is seeking a permanent injunction to block the import and sale of Microsoft’s Kinect, and it is also suing Electronic Arts, Konami and Sega for developing Xbox 360 games that utilize Kinect and infringe on its patents. Impulse is seeking damages, treble damages, interest, and attorney fees from Microsoft as well. The Kinect motion-based video game controller has been a smash hit for Microsoft, having set numerous sales records since its launch. This past March, Microsoft announced that it had sold 10 million Kinect controllers since the device’s launch just before the holidays last year.

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