Microsoft announced record revenue of $12.54 billion for the quarter ended Dec. 31, 2006, a 6% increase compared to last year, driven by Zune, X360 and its server applications. Despite increase in sales (from $1.69 billion to $2.96 billion) for the Entertainment and Devices Division, the Xbox has yet to make a profit as it currently has an operating loss of $289 million, slightly higher than last year ($286 million). With 10.4 million consoles sold Microsoft Games Division expects to turn a profit fiscal 2008 (second half of 2007).

Funcom and Eidos announce a new release date for its MMO Age of Conan: Hyborian Adventures as they have now decided to further hone the qualities of the game. The new release date is set to the 30th of October 2007 and will further ensure an online experience with truly stunning impact.

Unreal Tournament 3 is being developed by North Carolina-based Epic Games. The game promises to blow fans away with the gameplay, modifiability and visuals that Epic's Unreal Engine 3 technology will deliver. At a Las Vegas press event Midway revealed the name change (indicating a non-2007 release?), and that Epic's FPS is finally coming to Xbox 360.

Nintendo DS now is in the hands of more than 10 million consumers in the Americas. Since launching in November 2004, nearly nine Nintendo DS or DS Lite have sold every 60 seconds. Nintendo also revealed 20 titles are lined up for Q1 2007.

Tom Clancy's Splinter Cell Double Agent will completely revolutionize and reinvent the spy action genre by introducing an unprecedented double agent concept and an entirely new breed of game play that adds an exciting new dimension to the gaming experience.

Shady O' Grady's Rising Star is an RPG game, but unlike the familiar dungeon crawlers, this game is set in the real world of music. Players create their dream band and attempt to coast their way to the top of the music world before the next young hot act comes along.

Sony Computer Entertainment President of Worldwide Studios Phil Harrison returns to the Game Developers Conference to present the keynote, Game 3.0: Developing and Creating for the Third Age of Video Games, talking about enabling developers to make the most of the countless opportunities made available by the new era of connectivity.

In Gods & Heroes you become a classic hero of the ancient world, born of immortal blood. As a scion of the gods, you will have the opportunity to pursue his destiny through a series of Epic Quests that will span all levels of gameplay, over time commanding amazing God Powers and acquiring famous weapons and treasure of myth.

Dangerous Waters allows the player total control over multiple air, surface and subsurface platforms in a modern-day naval environment. Sonalysts has released v1.04 for its submarine sim adding tweaks, model updates and fixing bugs.

Bladestorm will offer massive battles mixed with strategy, much like the Dynasty Warriors titles, but one of the main differences is that the game will be situated in the Western medieval timeframe.