Microsoft plans to launch its next-generation Xbox video game and home entertainment console ahead of the holidays next year, according to a recent report. The Los Angeles Times on Monday published a developer contract between Acitivision Blizzard and famed Halo developers Bungie. The firms are currently working on a new Massively Multiplayer Online franchise called Destiny, which will be a first-person shooter with a science fiction theme. While the fact that the companies currently have four titles planned for the series is exciting for gamers in itself, another tidbit may be even more titillating; the contract suggests that the first Destiny title will launch ahead of the holidays next year as an exclusive for Microsoft’s Xbox 360 and its next-generation console, which the document refers to as the “Xbox 720.” An earlier report from an industry industry insider suggested that Microsoft will launch an ARM-based “Xbox lite” in late 2013 followed by a true Xbox 360 successor some time later, however this new information suggests that timeline may not be accurate.

[Via PC & Tech Authority]

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Microsoft is looking to bolster sales of Windows-powered computers this summer by offering students a free Xbox 360 video game console with a qualifying PC purchase. Beginning on May 18th in Canada and on May 20th in the United States, students who purchase a PC for at least $599 CAD in Canada or $699 in the U.S. will receive a free 4GB Xbox 360. Purchases must be made from participating retailers including Best Buy, Dell.com, Fry’s Electronics, HPDirect.com, Microsoft Stores and NewEgg.com in the U.S., and Best Buy, Dell.ca, Future Shop, Staples and The Source in Canada. Microsoft did not indicate when the promotion ends.

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According to a new report from Forrester Research, Microsoft is leading both Apple and Google in the TV and home entertainment sector, The New York Times reported on Wednesday. While Apple and Google may control mobile, Microsoft’s Xbox entertainment system tops both Apple TV and Google TV according to the report. With the Xbox, Forrester analyst James McQuivey believes Microsoft is the farthest along when it comes to delivering users content through their television sets. “Using those metrics, Microsoft is in the lead, offering everything that matters: a growing content library, a convenient engagement path for millions of existing Xbox 360 owners, and a growing ecosystem of partners and developers eager to exploit the platform for their own purposes,” McQuivey wrote in the report. Microsoft has continued to add more content apps — such as Comcast Xfinity, Verizon FiOS and HBO Go — to the Xbox, alongside thousands of games. The software giant has shipped more than 66 million Xboxes worldwide, and Forrester estimates that half of all Xboxes in the United States are connected to the Internet.

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A Texas electronics company has allegedly begun production on Microsoft’s next-generation Xbox gaming console, according to a report from IGN. Production of the Xbox 720 is reportedly underway at the Austin, Texas branch of Flextronics, the same electronics company responsible for manufacturing the Xbox 360 and the original Xbox. Despite these reports, however, Microsoft firmly stated that the next-generation Xbox will not debut at this year’s E3 gaming convention. The hardware currently being manufactured may instead be development kits for top-tier game developers that will get early access to Microsoft’s next-generation hardware in order to prepare new titles. The “Xbox 720″ is rumored to be six times more powerful than the current Xbox. It has been reported that the console will be equipped with a GPU based on ATI’s Radeon HD 6670 and should offer support for 3D technology, 1080p HD output, multiple displays and DirectX 11. Microsoft may also be looking to use online downloads and swappable solid state cards rather than a traditional disc drive.

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The rumor mill has gone back and forth a number of times regarding whether or not next-generation video game consoles from Microsoft and Sony will support used games. While GameStop CEO Paul Raines seems confident they will — GameStop’s business relies on the resale of used games — game developers clearly stand to benefit if consoles force their owners to purchase new copies of games rather than used copies. ”From a business perspective that would be absolutely awesome,” Rasmus Højengaard, director of creative development at Crytek — the developer behind Crysis 3 and the CryENGINE gaming platform — told CVG in an interview. “It’s weird that [second-hand] is still allowed because it doesn’t work like that in any other software industries, so it would be great if they could somehow fix that issue as well.” Højengaard did not offer any insights on whether or not Microsoft and Sony actually plan to take measures to prevent console owners from playing used games.

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Microsoft is reportedly preparing to unveil a new streaming music service at the annual E3 conference later this year. Citing unnamed sources, The Verge reports that the new streaming service will work across several platforms including Xbox, Windows 8, Windows Phone, iOS and Android, accessible through a native app or a web browser. Code-named “Woodstock,” the service is reportedly comparable to Spotify, potentially allowing users to stream unlimited music. The service will also seemingly feature deep Facebook integration and a “scan and match” cloud locker feature similar to iTunes Match. According to The Verge, the service will be part of a larger effort to shift away from Microsoft’s Zune brand.

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Electronic Arts and Crytek announced the highly anticipated next installment of the Crysis franchise earlier this week, and the companies have now released the first Crysis 3 teaser that includes gameplay footage. Albeit brief, the teaser reel showcases a new weapon and stunning graphics that will definitely pique gamers’ interest. ”Crysis 3 is a thrilling mix of sandbox gameplay, advanced combat and hi-tech human and alien weaponry that shooter fans will love,” Crytek CEO Cevat Yerli said in a statement. “Leveraging the latest CryENGINE technology, we’re able to deliver seven unique themes that offer stunning and visually loaded gameplay experiences. We cannot wait until people get their hands on the game.” The first full trailer for Crysis 3 will be released on April 24th, and Crysis 3 Hunter Edition is already available for pre-order ahead of its release in 2013. The full teaser video can be viewed below.

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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.

A report emerged last week from a security researcher claiming Microsoft’s Xbox lacked important security features that might protect owners who sell used consoles from having personal information stolen. Ashley Podhradsky of Drexel University claimed to have purchased a used Xbox console and used readily available hacking tools to recover the prior owner’s credit card number and other personal information. “Microsoft does a great job of protecting their proprietary information, but they don’t do a great job of protecting the user’s data,” Podhradsky said at the time.

Microsoft has since responded to the researcher’s claims, stating that they are likely inaccurate.

“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,” Microsoft’s Jim Alkove, General Manager, Security, Interactive Entertainment Business, told BGR in an emailed statement.

Alkove continued, “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.”

The executive also clarified that Microsoft does take measures to protect user data, even though no credit card details are stored locally. “When Microsoft refurbishes used consoles we have processes in place to wipe the local hard drives of any other user data,” Alkove said. ”We can assure Xbox owners we take the privacy and security of their personal data very seriously.”

Podhradsky has not responded to Microsoft’s statement.

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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Cable network operator and Internet service provider Comcast reportedly confirmed earlier this week that it would give its own video streaming service a huge advantage over rival services like Netflix. Showing blatant disregard for net neutrality principles, Comcast said this week that its video streaming service Xfinity will be exempt from the 250GB bandwidth cap it foists on subscribers, Raw Story reports. Movies and TV shows streamed using rival services such as Netflix and Hulu will still apply toward users’ monthly bandwidth caps. Microsoft announced earlier this week that Comcast’s Xfinity service was launching on its popular Xbox 360 video game and home entertainment console, and heavy users on Comcast’s network now have a clear reason to choose Xfinity over any of the dozens of rival streaming services supported by the Xbox.

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Creative media technologies image via Shutterstock.

Rumors that Microsoft’s next-generation video game console might somehow block owners from playing used games began swirling earlier this year, and gamers around the world cringed. Of course the rumor had much more significant implications for video game vendors like GameStop, and the company’s chief executive Paul Raines addressed the issue during its earnings call last week. ”We think it’s unlikely that there would be that next-gen console because the model simply hasn’t been proven to work,” Raines said according to Digital Times.” Remember that used video games have a residual value. Remember that GameStop generates $1.2 billion of trade credits around the world with out used games model. So consider taking used games out of that, you’d have to find new ways to sell the games, and our partners at the console companies have great relationships with us.” GameStop accounted for between 60% and 70% of first-week video game sales as of 2010 according to ADVFN.

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Image source: Kristen Lanae

Microsoft had intended to unveil its next-generation Xbox console during the annual E3 conference this year according to a BGR source, but it now looks as though that won’t happen — the company has gone on record in stating, “we can confirm that there will be no talk of new Xbox hardware at E3 or anytime soon.” According to “MS Nerd,” an insider with a good track record of leaking unannounced information regarding Microsoft’s plans, the Redmond-based company is currently working on not one but two Xbox consoles that will launch in the coming years. Read on for more.

“My understanding is that we’ll see a Xbox device in late 2013 which does Arcade-style games & all the current & future media apps with Kinect (with near-mode),” MS Nerd wrote on Reddit while fielding user-submitted questions. “It will be an ARM-based platform price-competitive with the Apple TV (if you own a Kinect already).”

A low-cost Xbox gaming console that works alongside the company’s popular Kinect motion and voice-based controller could better-position the company to combat the increasing popularity of casual mobile games while Microsoft continues to work on its Xbox 360 successor. Such a device could also feature deep Windows Phone integration.

“At some point after that, we’ll see a Xbox Next, a true successor to the 360,” MS Nerd continued. “Details about it are very hazy, except that, like the 360, it will do games for core-audiences & the same media apps as the other device, also with Kinect.” He goes on to state that the Kinect controller will likely receive a camera upgrade after the Xbox 360′s successor launches, and a new Kinect may debut around 2015.

A new Microsoft patent published recently by the United States Patent and Trademark Office revealed that the company is working on two types of headsets for its Xbox and Windows Phone platforms, PatentBolt reported on Monday. The first unit resembles an aviation-type helmet and is aimed at Xbox gamers, while the second looks like a pair of sunglasses for use with smartphones and other future devices. The software giant states that a compact display system can be integrated into goggles, a helmet or other eyewear, enabling the wearer to view images from a computer, media player or other electronic device. Since the human eye can’t focus on images less than a few centimeters away, however, Microsoft’s headsets will have the ability to virtually project an image.

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