Rumoured and revealed by TeamXbox a few weeks ago, today Microsoft Corp. said it would turn to International Business Machines Corp. for microchip technology that it will use in the next version of its popular video game console, the Xbox. Redmond, Washington-based Microsoft, the world's largest software company, used a chip from the No. 1 microprocessor maker, Intel Corp., in the first version of its Xbox, which was released in 2000.

Games are dropping like flies these days, as today IGN reports that Microsoft decided to annul their marriage with Psychonauts developers DoubleFine Productions. Microsoft's statement on the matter " Microsoft Game Studios has made the decision to end its publishing agreement with DoubleFine for the upcoming Xbox game 'Psychonauts.' Microsoft Game Studios believes in the vision of the title and would like to see the game on Xbox. Microsoft is supporting Tim Schafer and DoubleFine in their search for a new publisher."

AXcess News (www.axcessnews.com) released a story describing how a sagging online gaming industry got a boost recently by Microsoft when the Redmond-based software maker announced it had lowered the price of its Xbox console and added more software titles.

The console dubbed the sexiest video game system is becoming even more attractive. Effective March 30, the Xbox will be available for a handsome $149.99 in the United States and $199.99 in Canada, representing a significant savings of $30 for consumers in both regions. In addition, Microsoft will reduce the price of the Xbox console in Mexico to $1,999 pesos, which translates to a consumer savings of $500 pesos or roughly $45 (U.S.).

At last week's GDC, Developer Oddworld Inhabitants revealed that it's latest OddWorld product, Steef's Oddysee, will no longer be published by Microsoft. Due to this development the name has been changed to "Stranger", which is also the name of the main character. Oddworld Inhabitants says that eventhough Microsoft no longer publishes the product, it will most likely remain an Xbox exclusive, and although so far no other publishers is known, Stranger, is scheduled for end of the year.

As most people will know this week's news is mainly dominated by various announcements and revelations at the GDC (Game Developers Conference) in San Jose, CA. Microsoft is showing off various in house productions and we have screens & trailers from the following titles :

• Fable (Xbox) - Screens & Trailer
• Sudeki (Xbox) - Screens & Trailer
• Rise Of Nations: Thrones & Patriots (PC) - Screens & Trailer
• RalliSport Challenge 2 (Xbox) - Screens & Trailer
• Jade Empire (Xbox) - Screens & Trailer

Microsoft Corp. today announced XNA, a powerful next-generation software development platform. XNA empowers developers to deliver breakthrough games while combating rising production costs and ever-increasing hardware complexity. Games for future iterations of all Microsoft game platforms — including Windows, Xbox and Windows Mobile-based devices — will be unleashed by tools and technologies from the XNA development platform.

Amid surging Xbox sales and global business expansion, Robbie Bach, senior vice president of Microsoft and head of Microsoft’s Home and Entertainment Division, today announced a number of new executive appointments. Shane Kim, currently acting general manager of Microsoft Game Studios, has been named permanently to that position and will report to Peter Moore, corporate vice president. To create additional synergies between game content and marketing, Moore, in turn has been named head of worldwide content and marketing for Microsoft games and game products. Bach also announced that Mitchell (Mitch) Koch, corporate vice president, will lead Microsoft’s global retail sales efforts.

Microsoft Corp. said on Thursday that parts of the source code, or software blueprint, for its closely-guarded Windows programs had leaked onto the Internet, possibly exposing its products to hackers and illicit copying. Microsoft said that copies of the source code from its Windows NT and Windows 2000 operating systems were being traded over the Internet, but that the copies comprised a tiny portion of the millions of lines of code used to create its cash cow products.

Under the leadership of Ed Fries, vice president of games publishing, Microsoft Game Studios has earned a reputation as a premier games developer and publisher. Robbie Bach, Senior Vice President, Chief Xbox Officer, Microsoft says "So it is with regret that I inform you that I have reluctantly accepted Ed's resignation, who after 18 years of service to Microsoft, has made the decision to leave the company and pursue other goals." Read more for details ...

Xbox today announced an agreement with Tecmo Ltd for the exclusive rights to publish Ninja Gaiden and Dead or Alive Online (working title) in Europe. Both Ninja Gaiden and Dead or Alive Online are exclusive to Xbox and will be published by Microsoft in 2004.

This evening during his keynote address at the 2004 International Consumer Electronics Show (CES), Microsoft Corp. Chairman and Chief Software Architect Bill Gates unveiled Windows Media Center Extender Technology. The software will power a new generation of products that will extend the Media Center Edition PC experience allowing consumers to access their favorite digital entertainment, such as live and recorded television, photos, movies, and music that reside on their Windows XP Media Center Edition PC, from any room in the home - regardless of where the PC is located. Media Center Extender Technology will not only provide access to rich content and services, but will enable devices throughout the home to utilize the full processing and storage capabilities of the PC creating new opportunities for services and providing unprecedented choice and access to content for consumers

Mythic Entertainment, developer and publisher of massively multiplayer online role-playing game "Dark Age of Camelot," and many other popular online games, announced that it has filed a lawsuit against Microsoft Corporation for trademark infringement and unfair competition.

Think you can steady your nerves to hit a game-deciding free throw with no time left on the clock? How about smash a cross-court backhand winner in the final set of a championship tennis match? Can you hole a 30-foot putt on 18? What about ride the rails on the world’s hottest mountains? Now try it with $25,000 on the line. Welcome to the XSN Sports World Championship, the most competitive and intense online sports tournament in the history of console video games. Read more for details ...

Microsoft Corp., beset by widespread criticism of security flaws in its software, on Wednesday put up a bounty to track down the authors of two computer bugs that choked the Internet earlier this year. Microsoft offered two $250,000 rewards for information leading to the arrest and conviction of those responsible for the Blaster worm and the SoBig.F e-mail virus, which infected more than half a million computers, crashed thousands of systems, and snarled Internet traffic across the globe in August and September.

Microsoft Game Studios and Ensemble Studios today announced that a limited edition Kings & Myths: The Age Collection holiday compilation package, which includes four award-winning games, is now available at select North American retailers for an estimated retail price of $59.99 (U.S.). The compilation, which includes Age of Mythology, Age of Mythology: The Titans, Age of Empires II, Age of Empires II: The Conquerors and Sybex’s Age of Mythology Strategy Guide, will be available only at Best Buy, EB Games and GameStop. The Kings & Myths package is a great way for players to experience the finest real-time strategy titles available.

Yahoo! Games today announced Microsoft Game Studios is the newest publisher to contribute titles to Yahoo! Games on Demand (http://gamesondemand.yahoo.com). With this new relationship, more than 100 titles are available to consumers for play on Yahoo! Games on Demand.

The Japanese unit of U.S. software giant Microsoft Corp. said Thursday it has appointed Yoshihiro Murayama as general manager of the unit's Xbox division. The hire of the game-industry veteran signifies the company's commitment to catching up with industry rival Sony Corp. and its popular PlayStation 2 game console. He begins his new role on Oct. 1.

Microsoft Game Studios today announced that “RalliSport Challenge 2,” the highly anticipated second installment in the internationally acclaimed “RalliSport Challenge” franchise, will be the first Xbox racing title in the new XSN Sports brand. The game is scheduled to be available in the spring of 2004. “RalliSport Challenge 2” joins other announced XSN Sports games shipping this fall, including “Amped 2,” “Links 2004,” “NBA Inside Drive 2004,” “NFL Fever 2004,” “NHL Rivals 2004” and “Top Spin™.” “RalliSport Challenge 2” is being developed by Digital Illusions CE.

Needless to say that at their own X03 event Microsoft is unveiling tons of upcoming Xbox titles, in house and from 3rd party developers such as Acclaim, Atari, LucasArts, Activision and more. We will have screens for most of those and we start with :

• Halo 2
• Rallisport Challenge 2
• Armed & Dangerous
• Pitfall Harry
• Wallace & Gromit in Project Zoo
• Kameo: Elements of Power
• True Fantasy Live Online
• Grabbed by the Ghoulies
• Mission: Impossible: Operation Surma
• True Crime: Streets of L.A.
• Deus Ex
• Race Driver 2
• Star Wars: Knights Of The Old Republic
• BC
• Alias
• NBA Jam
• Tony Hawk Underground
• Urban Freestyle Soccer

Micorsoft announced new European details for its Xbox Live service, the only fast-action, always-on broadband gaming service where gamers can simultaneously play, talk and build their legend across games and around the world. New Xbox Live-enabled countries, flexible pricing options, a trial offer for Europe, and some amazing games mean that European Xbox gamers will have a lot to look forward to this Christmas and beyond. Read more for details ...

Tonight at X03, Microsoft announced a partnership with Epic Games, developers of the legendary Unreal series of games and the Unreal® Engine. Epic Games and its recently-formed Scion Studios will develop several new games exclusively for Xbox and Windows. The to-be-announced products will be published by Microsoft Game Studios.

Ensuring that the long-awaited sequel to one of the industry's most groundbreaking games will not only live up to five years of anticipation, but will also give gaming enthusiasts a reason to fasten their seatbelts in front of their PCs, Microsoft DirectX 9.0 will bring scientist Gordon Freeman and his creeping, shooting alien nemeses back to life - with the vibrant graphics and enhanced gameplay needed for a truly immersive experience - with the release of "Half-Life 2" by Valve Corp.

Kuju said Monday that it has reached a mutual and amicable agreement with Microsoft to transition its PC simulation technology and the ongoing development of Train Simulator 2 to Microsoft. As announced in the AGM statement, this is part of the restructuring and cost reduction exercise that Kuju is implementing which will have a negative impact on results for the current year however in the longer term will result in a lower cost base as Kuju focuses on its core Console and Wireless operations.

Microsoft Corp. said on Friday it acquired the rights to the "High Heat" baseball video game franchise from bankrupt software publisher 3DO Co. The company did not immediately disclose the purchase price. 3DO's assets were sold at a bankruptcy auction in San Francisco on Thursday. When the company filed for Chapter 11 bankruptcy protection on May 28, it said it would try to sell its assets. Microsoft already has its own baseball game, "Inside Pitch," for its Xbox but game critics have long considered 3DO's "High Heat" as the best among numerous competitors.