An anonymous reader quotes a report from TechCrunch: Valve has issued a rare statement after claims it was rejecting games with AI-generated assets from its Steam games store. The notoriously close-lipped developer of the Half-Life series and de facto gatekeeper of PC gaming distribution said its policy was evolving and not a stand against AI. Steam has a review and approval process much like any app platform, and its rules on content aren't always clear until developers test them with edge cases. So it was with one indie dev who posted in a subreddit for like-minded game developers using AI, saying Valve "is no longer willing to publish games with AI generated content."

The game they had submitted had "a few assets that were fairly obviously AI generated," and Valve appeared to take issue with this. "As the legal ownership of such AI-generated art is unclear, we cannot ship your game while it contains these AI-generated assets, unless you can affirmatively confirm that you own the rights to all of the IP used in the data set that trained the AI to create the assets in your game," their first warning letter stated. Then, a week later: "we reviewed [Game Name Here] and took our time to better understand the AI tech used to create it. Again, while we strive to ship most titles submitted to us, we cannot ship games for which the developer does not have all of the necessary rights. At this time, we are declining to distribute your game since it's unclear if the underlying AI tech used to create the assets has sufficient rights to the training data."

Considering most AI tools can't really claim to have legal rights to all their training data (and even if they do, it may still not be an ethical use of that data), this policy as stated basically amounts to a blanket ban on AI-generated assets in games. [...] If the creators can't realistically claim copyright over their own work, Valve has deemed the risk of publishing that work too high. As such, Valve responded to Eurogamer to say that, basically, their policy is more "what's legally required" than any particular stance on AI. "We know it is a constantly evolving tech, and our goal is not to discourage the use of it on Steam; instead, we're working through how to integrate it into our already-existing review policies," Valve said. "Stated plainly, our review process is a reflection of current copyright law and policies, not an added layer of our opinion. As these laws and policies evolve over time, so will our process."

Source code for the original Far Cry, released back in 2004, has popped up online. From a report: Entitled "Far Cry 1.34 Complete", the game's code was uploaded to the internet archive site Archive.org at the end of June, as highlighted by well-known modder Vinicius Medeiros It's unclear if the code includes any subsequent patches -- although the .34 part of the 1.34 title certainly suggests so -- and some commenters who've presumably downloaded and run the code believe the code is "not complete, but close."

VentureBeat is enjoying "secrets that spilled out" in the Microsoft/Activision Blizzard antitrust hearings. "Whether the Federal Trade Commission wins its antitrust case or not, its attempt to stop Microsoft's $68.7 billion acquisition of Activision Blizzard has revealed a trove of new data for everyone." The FTC has argued in a federal court that the merger would harm competition in the game industry and be bad for consumers, as Microsoft could pull Activision Blizzard's games like Call of Duty away from the Sony PlayStation, despite Microsoft's stated intention of not doing so for at least 10 years. In this case, the FTC might not have had an obvious winning hand, as the industry has an odd situation. Microsoft has the highest value ($104 billion in cash alone, versus $13.4 billion for Sony) at $2.49 trillion as a company compared to $115 billion for Sony, and yet it is in third place behind Sony and Nintendo.

Hence, there's some significance to Microsoft's Xbox first-party head, Matt Booty, sending an ill-advised email in 2019 saying Microsoft "has the ability to spend Sony out of business." That was long before the deal was announced 17 months ago, but it could be used as a sign of intent. Microsoft said it never pursued this strategy. While competing fiercely is fine, using monopoly power to drive a rival out of business so you can raise prices later is a no-no...

Did the FTC prove its case? I can't say just yet. Microsoft makes a decent point in saying all the regulators of the world except the U.S. and the United Kingdom have approved the deal. But I hope to have more reasons to binge on popcorn.
In January Ars Technica noted Microsoft's contract set July 18th as the deadline for closing the deal — or else paying a $3 billion "breakup fee". The Verge spotted that some of Sony's documents were poorly redacted. While looking at the lines that were crossed out with black pens, they could see that The Last of Us Part 2 cost the company $220 million to make, with 200 people working on it, while Horizon Forbidden West cost $212 million to make, with 300 working on it for over five years. Both games made considerably more money... In the unSharpied documents, Sony also revealed that a million Call of Duty players spent 100% of their time playing Call of Duty in 2021. It also said that Call of Duty generated $800 million for PlayStation in 2021 alone in the U.S. and perhaps $1.5 billion globally. It also looks like Sony's exclusive marketing deal with Activision for Call of Duty will expire in late 2023. Sony went on to say half of PS5 owners also have a Nintendo Switch.

Microsoft also failed to redact some of its acquisition targets. Those were later marked up, but not before Axios noted that the list included Thunderful, Supergiant Games, Niantic, Playrix, Zynga, Bungie, Square Enix, Warner Bros., Sega, IO Interactive and Scopely... Among the secrets revealed among the companies Microsoft acquired: Microsoft bought Ninja Theory, maker of Hellblade: Senua's Sacrifice, for $117 million.
Thanks to Slashdot reader ole_timer for sharing the news.

An anonymous reader quotes a report from TechCrunch: Pokemon GO maker Niantic laid off 230 employees today, just one year after it laid off around 90 employees. During last year's layoffs, Niantic canceled four projects, including a Transformers game. Some Niantic games will meet the same fate this time around. After four months in the App Store, Niantic is shutting down NBA All-World; the company will also cancel production on a game based on the Marvel franchise. "In the wake of the revenue surge we saw during Covid, we grew our headcount and related expenses in order to pursue growth more aggressively," CEO John Hanke wrote in an email to employees, cross-posted to the company blog.

This has been a common refrain among the hundreds of tech companies that have conducted layoffs over the last year -- companies claimed they overhired during the pandemic and now need to right-size their teams. In Niantic's case, Hanke said that revenue has returned to pre-pandemic levels, and new projects have not delivered as much revenue as they would have hoped. One such new project is Peridot, a Tamagotchi-like mobile game. Niantic's first attempt at original IP since Ingress, Peridot launched in May. But according to market intelligence firm Sensor Tower, Peridot has only made $1.4 million in gross in-app purchase revenue thus far. [...] Pokemon GO is Niantic's cash cow, pulling in more than $1 billion in in-app purchases each year since 2020. But players have also been feeling slighted by Niantic's in-app purchase system. [...]

Though games like Peridot have not yet proved financially sustainable, Niantic has an entire business arm separate from its own games. Niantic's Lightship AR developer kit makes it possible for any developer who knows how to use Unity to make AR games. Developers also have access to Niantic's impressive visual positioning system (VPS), which lets users interact with local landmarks in their real-world surroundings. Hanke even mentioned in his note to employees that the company wants to ramp up its focus on building for mixed-reality devices and AR glasses. So, if Niantic can't seem to make a successful follow-up to Pokemon GO, maybe its developer tools can keep the company on the right track.

Valve has reportedly started banning Steam games featuring AI-created art assets, unless developers can prove they have rights to the IP used in the data set that trained the AI to create them. From a report: In a Reddit post spotted by games industry veteran Simon Carless, a developer recounted submitting an early version of a game to Steam with a few "fairly obviously AI generated" assets which they said they planned to improve by hand in a later build. In response, they were told the game could not be approved unless the developer could prove to Valve that they owned all the necessary rights.

"After reviewing, we have identified intellectual property in [Game Name Here] which appears to belongs to one or more third parties," Valve said. "In particular, [Game Name Here] contains art assets generated by artificial intelligence that appears to be relying on copyrighted material owned by third parties. As the legal ownership of such AI-generated art is unclear, we cannot ship your game while it contains these AI-generated assets, unless you can affirmatively confirm that you own the rights to all of the IP used in the data set that trained the AI to create the assets in your game."

Valve said it was failing the build and would give the developer a single opportunity to remove all content they didn't own the rights to before resubmitting it. The developer said they then improved the assets in question by hand "so there were no longer any obvious signs of AI," but after resubmitting the game it was again rejected. "We cannot ship games for which the developer does not have all of the necessary rights," Valve said. "At this time, we are declining to distribute your game since it's unclear if the underlying AI tech used to create the assets has sufficient rights to the training data."

Sony highly confidential information about its PlayStation business has just been revealed by mistake. As part of the FTC v. Microsoft hearing, Sony supplied a document from PlayStation chief Jim Ryan that includes redacted details on the margins Sony shares with publishers, its Call of Duty revenues, and even the cost of developing some of its games. From a report: It looks like someone redacted the documents with a black Sharpie -- but when you scan them in, it's easy to see some of the redactions. Oops. The court has scrambled to remove the document, but the damage is done; reporters and Sony's competition have already downloaded all the documents while they were in the public domain. Among other things, the document shows that Horizon Forbidden West apparently cost $212 million over five years with 300 employees, and The Last of Us Part II cost $220 million with around 200 employees.

It's not just how much games cost to make that's been revealed here, either. Sony says 1 million PlayStation gamers play nothing but Call of Duty. My colleague Sean Hollister has analyzed the document, and it appears to show: "In 2021, over [14?] million users (by device) spent 30 percent or more of their time playing Call of Duty, over 6 million users spent more than 70% of their time on Call of Duty, and about 1 million users spent 100% of their gaming time on Call of Duty. In 2021, Call of Duty players spent an average of [116?] hours per year playing Call of Duty. Call of Duty players spending more than 70 percent of their time on Call of Duty spent an average of 296 hours on the franchise."

Microsoft's Xbox Game Studios chief, Matt Booty, was encouraging Xbox CFO Tim Stuart to spend big money on acquiring game content in 2019 to set the company up to battle Sony in subscriptions. From a report: The revelation comes in an email thread that's part of the FTC v. Microsoft hearing. "We (Microsoft) are in a very unique position to be able to go spend Sony out of business," said Booty in a December 2019 email, referencing spending $2 billion or $3 billion in 2020 to avoid competitors getting ahead in content at a later date.

"It is practically impossible for anyone to start a new video streaming service at scale at this point," said Booty, referencing competitors like Google, Amazon, and Sony. Booty described content as a moat and that only Sony could really compete with Xbox Game Pass: "In games, Google is 3 to 4 years away from being able to have a studio up and running. Amazon has shown no ability to execute on game content. Content is the one moat that we have, in terms of a catalog that runs on current devices and capability to create new. Sony is really the only other player who could compete with Game Pass and we have a 2 year and 10 million subs lead."

Microsoft argues the email is old and that it never pursued such a strategy anyway.

Blizzard's Battle.net online service was the target of an apparent DDoS attack, "since at least the early hours of Sunday morning," reports Engadget, "making it difficult, if not impossible, to play Diablo IV, World of Warcraft and other Blizzard titles." It was just 20 minutes ago that they tweeted that the DDOS attacks "have ended."

Engadget notes Blizzard's customer support account had tweeted at 10:24AM EST, "We continue to actively monitor an ongoing DDoS attack which is affecting latency/connections to our games." When players launched Battle.net on PC, a notification warned "We are currently experiencing a DDoS attack, which may result in high latency and disconnections for some players..."

On Reddit, some players reported they hadn't been able to play Blizzard's latest game for at least 10 to 12 hours.

Engadget predicts, "At the very least, you can bet this incident will likely renew calls for Blizzard to add an offline mode to Diablo IV."

An anonymous reader shares a report: Sony's PlayStation chief, Jim Ryan, believed that Microsoft's proposed acquisition of Activision Blizzard wasn't about locking games as Xbox exclusives, according to a newly unsealed email. Microsoft counsel revealed the exchange between Ryan and Chris Deering, former CEO of Sony Computer Entertainment, discussing the announcement of the deal last year. "It is not an exclusivity play at all," said Ryan. "They're thinking bigger than that and they have the cash to make moves like this. I've spent a fair amount of time with both Phil [Spencer] Bobby [Kotick] over the past day and I'm pretty sure we will continue to see Call of Duty on PlayStation for many years to come."

The surprise revelation runs counter to Sony's arguments against Microsoft's Activision Blizzard deal and its filings with regulators. Sony has maintained it fears Microsoft could make Call of Duty exclusive to Xbox or even sabotage the PlayStation versions of the game. Ryan went on to say, "We have some good stuff cooking," referring to Sony's Bungie acquisition which Sony announced just days after the email exchange. "I'm not complacent, and I'd rather this hadn't happened, but we'll be OK, we'll be more than OK." Microsoft initially offered Call of Duty on PlayStation for three years after the current agreement between Activision and Sony ends. Ryan called that offer "inadequate on many levels." Microsoft eventually offered Sony a 10-year deal for Call of Duty on PlayStation, but the company has refused to sign this so far.

According to a report (PDF) from the Los Angeles City Tourism Commission, E3 has been canceled in LA in 2024 and 2025. The Verge reports: Apparently, the city does not expect E3 to return in 2024 or 2025. This news seems at odds with the messaging from E3's organizers, ReedPop and the ESA. Earlier this year, the ESA -- the trade organization that runs E3 -- announced it was partnering with ReedPop, the entertainment company that runs large fan conventions like New York Comic-Con and Penny Arcade Expo, to run E3 2023. After the covid-19 pandemic shuttered in-person events between 2020 and 2022, 2023 was meant to mark the in-person return of the video game industry's biggest event of the year.

However, E3 2023 was canceled, with ReedPop global vice president of gaming Kyle Marsden-Kish stating the reason why was out of consideration that publishers wouldn't have game demos or reels available in time. But if E3 2024 and 2025 are also canceled, it suggests there is something else preventing E3's return or that its organizers are considering moving it out of Los Angeles. [...] The press release announcing E3 2023's cancellation hinted that ESA and ReedPop would work on future E3 events. In an email to The Verge, the ESA wrote, "ESA is currently having conversations about E3 2024 (and beyond), and no final decisions about the event have been made at this time."

An anonymous reader shares a report: The courtroom showdown between the FTC and Microsoft over the tech company's proposed acquisition of Activision Blizzard kicked off this morning. First announced in early 2022, the pending transaction has been scrutinized by various global regulatory bodies. Xbox has frantically worked to appease their concerns. While addressing its potentially dominant position, Microsoft lamented its third-place position and admitted defeat in the ongoing "console wars."

Part of Microsoft's current legal strategy is demonstrating the domineering lead PlayStation and Nintendo have established in the gaming industry. Xbox entered the market in 2001, and according to Microsoft's own documentation, their consoles have been outperformed by Nintendo and Sony by a "significant margin." Despite hard-fought success in the Xbox 360 generation and notable financial gain in recent quarters, Xbox claims it's never stopped "losing the console wars." As it stands, Xbox is confidently one of "big three" players in the console market, alongside PlayStation and Nintendo. However, Microsoft states its market share is trailing notably behind the most prominent competition.

The U.S. Federal Trade Commission on Thursday argued in federal court for a preliminary injunction to temporarily block Microsoft's acquisition of videogame maker Activision Blizzard, which would stop the deal from closing before the government's case against it is heard by an administrative judge. From a report: "If this deal is completed, the combined company ... is likely to have the ability, an incentive, to harm competition in various markets related to consoles, subscription services and the cloud (for gaming)," FTC lawyer James Weingarten said in the government's opening arguments in what is expected to be a five-day evidentiary hearing.

The FTC argues it needs a judge to block Microsoft and Activision Blizzard from closing their $69 billion merger until the agency's in-house court gets to rule on whether the combination hurts competition in the videogame industry. The FTC says the combination would give Microsoft's Xbox videogame console exclusive access to Activision games, leaving Nintendo consoles and Sony Group's PlayStation out in the cold. "I think you will see that every piece of evidence shows that it only makes sense for Xbox to make these Activision games to as many people on as many platforms as possible," Microsoft lawyer Beth Wilkinson said in opening arguments, adding that if an injunction is granted it could result in a three-year administrative proceeding that would kill the deal.

Microsoft is increasing its Xbox Series X prices in most countries in August apart from the US, Japan, Chile, Brazil, and Colombia. From a report: The Xbox maker is also increasing the monthly prices of its Xbox Game Pass and Xbox Game Pass Ultimate subscriptions for the first time next month, which will see the base Game Pass subscription for console move up to $10.99 a month from $9.99. "We've held on our prices for consoles for many years and have adjusted the prices to reflect the competitive conditions in each market," says Kari Perez, head of communications for Xbox, in a statement to The Verge. Xbox Series X console pricing will largely match the price hike Sony announced for the PS5 last year, with the Xbox Series X moving to $612 in the UK, $604 across most European markets, CAD $649.99 in Canada, and AUD $799.99 in Australia starting August 1st. The Xbox Series S pricing will not be adjusted in any markets, remaining at $299.99.

Microsoft says it is no longer making games for the Xbox One but will continue to support ongoing previous-generation titles like Minecraft and Halo Infinite. Engadget reports: "We've moved on to gen 9," Xbox Game Studios head Matt Booty told Axios, referring to the Xbox Series X/S consoles. The company also makes its games for PC. This move had to happen at some point to avoid newer and more complex games being hamstrung by the hardware limitations of the decade-old Xbox One. Still, it'll be possible for those clinging onto an Xbox One to play Series X/S titles such as Starfield and Forza Motorsport through Xbox Cloud Gaming. "That's how we're going to maintain support," Booty said.

The move away from Xbox One will free Microsoft's teams from the shackles of the previous generation. However, some third-party developers have raised concerns that the Xbox Series S, which is less powerful than the Series X, is holding them back too. Booty conceded that making sure games run well on the Series S requires "more work." Still, he noted Microsoft's studios (particularly those working on their second games for this generation of consoles) are now able to better optimize their projects for the Series S.

An anonymous reader quotes a report from TechCrunch: Wargraphs, a one-man-band startup behind a popular companion app for League of Legends called Porofessor, which helps players track and improve their playing stats, is getting acquired for up to [$54 million], half up front and half based on meeting certain earnings and growth targets. MOBA Networks, a company founded out of Sweden that buys, grows and runs online gaming communities (MOBA is short for "multiplayer online battle arena"), is buying the startup and its existing products. The plan is to expand them to more markets, in particular across Asia, and to build analytics for more titles.

I write "startup", but that might be with the loosest interpretation of the term. There is only a single employee, the mild-mannered Jean-Nicholas, and he has also entirely bootstrapped the business on his own. But that hasn't held him back. Wargraphs currently also builds analytics for Legends of Runeterra and Teamfight Tactics, but the League of Legends business has been its biggest it by far. Porofessor has had 10 million downloads of its app on Overwolf -- which is where Porofessor was built -- and more than 1.25 million daily active users if you combine traffic both from that platform and its own direct website. The company, such as it is, has been around for some 10 years, has pretty much always been profitable with revenues of 12.3 million euros in its last fiscal year. Jean-Nicholas told TechCrunch's Ingrid Lunden that he wants to build "a game" next. "Specifically, a card game that will compete against Hearthstone, coincidentally published by Activision Blizzard," writes Lunden. "He has no plans to raise outside funding for this, but he might hire an employee or two."

An anonymous reader shares a report: PC gamers could easily make a joke that three things in life never change: death, taxes, and the classic look of Steam. One of those things just changed, though; Valve just released the most substantial overhaul to Steam in years, including a visual makeover and several new features. Further, the company has brought the Mac and Linux versions of Steam closer to parity with the historically superior Windows version. Valve says "the most impactful changes" are actually under the hood. The company's developers put effort into achieving greater consistency between how things work in Steam for desktop, the TV-oriented Big Picture mode, and Steam Deck. This codebase overhaul means that new features that come to the desktop version of Steam can simultaneously ship on Steam Deck with minimal effort.

As for stuff that's visible to users, though, the entire application's look has been overhauled and modernized. In most cases, things are more or less where they used to be in the interface -- they just look a little different, with new fonts, colors, sizes, and so on. That said, the in-game overlay has received a more significant overhaul, as did notifications. Steam users have access to more customizations about how and when notifications are displayed, and the notifications panel displays only new notifications, with a "view all" button for digging into older ones. In general, the overlay has more information about the game you're playing, from achievement progress to playing time and beyond. Valve has made big changes to the controller configurator from the Steam Deck, which is now part of the overlay whenever a game is connected.

Sony says it has started testing the ability to stream PS5 games from the cloud. The PlayStation maker says it's testing cloud streaming for PS5 games and is planning to add this as a feature to its PlayStation Plus Premium subscription. From a report: "We're currently testing cloud streaming for supported PS5 games -- this includes PS5 titles from the PlayStation Plus Game Catalog and Game Trials, as well as supported digital PS5 titles that players own," says Nick Maguire, VP of global services, global sales, and business operations at Sony Interactive Entertainment. "When this feature launches, cloud game streaming for supported PS5 titles will be available for use directly on your PS5 console." A cloud feature for PS5 games would mean you'll no longer have to download games to your console to stream them to other devices. Sony currently supports streaming PS5 games to PCs, Macs, and iOS and Android devices, but you have to use your PS5 as the host to download and stream titles to your other devices.

Hmmmmmm writes: Fast food giant McDonald's has released a new retro-style game featuring Grimace, the purple milkshake blob. While it's clearly meant to be played in a browser on a phone or computer, it's also a fully working Game Boy Color game that you can download and play on the original hardware. Grimace's Birthday was developed by Krool Toys, a Brooklyn-based independent game studio and "creative engineering team" with a history of creating playable Game Boy games as unique PR for music artists and brands. The game assumes you're playing in an emulator via a browser window -- you can play that version of the game here -- but we also got it running on an Analogue Pocket thanks to a Game Boy Color FPGA core and a downloadable ROM hosted on the Internet Archive.

The game is so period-authentic that there's even a screen telling original monochrome Game Boy owners that the game "requires a color device to play." Even on Game Boy hardware, it still makes references to people "playing on mobile devices." The game involves simple 2D platforming and skateboarding, not unlike some sections of the Game Boy Color Tony Hawk games; Grimace needs to collect milkshakes and do sick stunts as he tries to track down other McDonaldland characters so he can party with them. It's short -- there are only four levels and one bonus round, plus score attack and free-skate modes -- but the pixel art is legitimately great, and the levels that are here are cleverly designed.

Influencers in the video-game industry are evolving from playing games to making them. From a report: Over the weekend, One True King, a media company focused on gaming content, launched Mad Mushroom, a new publishing division. "We have a unique competitive advantage in this space," said OTK co-founder Asmongold, a top streamer on Twitch, Amazon's live-streaming platform. "We can give games the push they need to actually go out to market, get eyes on the game and give [developers] insight." Moving forward, OTK's stable of gaming influencers will collaborate with lead adviser Mike Silbowitz, a gaming industry veteran who has previously worked at Square Enix, to publish, distribute, test and market games.

Currently, publishers pay top influencers tens of thousands of dollars to demo new games in front of their sizable audiences of live viewers on social media platforms, particularly Twitch and Google's YouTube. According to company executives, by reducing such marketing and user-acquisition costs, the organization can take a reduced cut of sales, say, 30% rather than the regular 40% or 50%, potentially benefiting the makers of independent games. "Twitch streamers have a large tool that is effectively a non-cost, which is their time and their audience," Asmongold said.

Influencers are increasingly diversifying their income streams beyond social media networks, which can be culturally and financially volatile. Popular gamers have said they anticipate that selling products directly to their audience will eventually form a larger fraction of their revenue. Top streamers, particularly those who have carved out a niche within a specific genre, are looking to publish and advise on both top tier and indie games that might appeal to the specific tastes of their fans.

Twitch has reversed its recently announced rules regarding ad display on the platform after facing swift backlash from streamers and content creators. The Verge reports: On Tuesday, Twitch released new rules concerning the way streamers could display ads on the platform. The rules prohibited "burned in" video, display, and audio ads -- the first two of which were popular and common formats used throughout Twitch. Twitch apparently did not discuss the new rules with ambassadors or streamers beforehand, and many were furious about the new policies. [...] Twitch apologized for the rollout, explaining that it would rewrite the rules for greater clarity. Now it seems that rewrite has turned into a full rescinding of the rules totally.

From the company's Twitter thread: "Yesterday, we released new Branded Content Guidelines that impacted your ability to work with sponsors to increase your income from streaming. These guidelines are bad for you and bad for Twitch, and we are removing them immediately. Sponsorships are critical to streamers' growth and ability to earn income. We will not prevent your ability to enter into direct relationships with sponsors -- you will continue to own and control your sponsorship business. We want to work with our community to create the best experience on Twitch, and to do that we need to be clear about what we're doing and why we're doing it. We appreciate your feedback and help in making this change."

Twitch has updated the page outlining its ads policy with the section related to what kinds of ads are prohibited or allowed completely removed. Here's an archived version with the old rules and the new, updated page. The new rules would have been potentially devastating for creators, charities, esports broadcasts, and brands. Now, what seemed like another attempt to take a portion of streamer earnings has backfired.