AI

Claude AI Finds Bugs In Microsoft CTO's 40-Year-Old Apple II Code (theregister.com) 87

An anonymous reader quotes a report from The Register: AI can reverse engineer machine code and find vulnerabilities in ancient legacy architectures, says Microsoft Azure CTO Mark Russinovich, who used his own Apple II code from 40 years ago as an example. Russinovich wrote: "We are entering an era of automated, AI-accelerated vulnerability discovery that will be leveraged by both defenders and attackers."

In May 1986, Russinovich wrote a utility called Enhancer for the Apple II personal computer. The utility, written in 6502 machine language, added the ability to use a variable or BASIC expression for the destination of a GOTO, GOSUB, or RESTORE command, whereas without modification Applesoft BASIC would only accept a line number. Russinovich had Claude Opus 4.6, released early last month, look over the code. It decompiled the machine language and found several security issues, including a case of "silent incorrect behavior" where, if the destination line was not found, the program would set the pointer to the following line or past the end of the program, instead of reporting an error. The fix would be to check the carry flag, which is set if the line is not found, and branch to an error.

The existence of the vulnerability in Apple II type-in code has only amusement value, but the ability of AI to decompile embedded code and find vulnerabilities is a concern. "Billions of legacy microcontrollers exist globally, many likely running fragile or poorly audited firmware like this," said one comment to Russinovich's post.

Security

How AI Assistants Are Moving the Security Goalposts 41

An anonymous reader quotes a report from KrebsOnSecurity: AI-based assistants or "agents" -- autonomous programs that have access to the user's computer, files, online services and can automate virtually any task -- are growing in popularity with developers and IT workers. But as so many eyebrow-raising headlines over the past few weeks have shown, these powerful and assertive new tools are rapidly shifting the security priorities for organizations, while blurring the lines between data and code, trusted co-worker and insider threat, ninja hacker and novice code jockey.

The new hotness in AI-based assistants -- OpenClaw (formerly known as ClawdBot and Moltbot) -- has seen rapid adoption since its release in November 2025. OpenClaw is an open-source autonomous AI agent designed to run locally on your computer and proactively take actions on your behalf without needing to be prompted. If that sounds like a risky proposition or a dare, consider that OpenClaw is most useful when it has complete access to your entire digital life, where it can then manage your inbox and calendar, execute programs and tools, browse the Internet for information, and integrate with chat apps like Discord, Signal, Teams or WhatsApp.

Other more established AI assistants like Anthropic's Claude and Microsoft's Copilot also can do these things, but OpenClaw isn't just a passive digital butler waiting for commands. Rather, it's designed to take the initiative on your behalf based on what it knows about your life and its understanding of what you want done. "The testimonials are remarkable," the AI security firm Snyk observed. "Developers building websites from their phones while putting babies to sleep; users running entire companies through a lobster-themed AI; engineers who've set up autonomous code loops that fix tests, capture errors through webhooks, and open pull requests, all while they're away from their desks." You can probably already see how this experimental technology could go sideways in a hurry. [...]
Last month, Meta AI safety director Summer Yue said OpenClaw unexpectedly started mass-deleting messages in her email inbox, despite instructions to confirm those actions first. She wrote: "Nothing humbles you like telling your OpenClaw 'confirm before acting' and watching it speedrun deleting your inbox. I couldn't stop it from my phone. I had to RUN to my Mac mini like I was defusing a bomb."

Krebs also noted the many misconfigured OpenClaw installations users had set up, leaving their administrative dashboards publicly accessible online. According to pentester Jamieson O'Reilly, "a cursory search revealed hundreds of such servers exposed online." When those exposed interfaces are accessed, attackers can retrieve the agent's configuration and sensitive credentials. O'Reilly warned attackers could access "every credential the agent uses -- from API keys and bot tokens to OAuth secrets and signing keys."

"You can pull the full conversation history across every integrated platform, meaning months of private messages and file attachments, everything the agent has seen," O'Reilly added. And because you control the agent's perception layer, you can manipulate what the human sees. Filter out certain messages. Modify responses before they're displayed."
Crime

Florida Woman Gets Prison Time For Illegally Selling Microsoft Product Keys (techradar.com) 65

A Florida woman was sentenced to 22 months in federal prison and fined $50,000 for illegally trafficking thousands of Microsoft certificate-of-authenticity labels used to activate Windows and Office. Prosecutors said she bought genuine labels cheaply from suppliers and resold them without the accompanying licensed software, wiring over $5 million during the scheme. TechRadar reports: The indictment details how [52-year-old Heidi Richards] purchased tens of thousands of genuine COA labels from a Texas-based supplier between 2018 and 2023 for well below the retail value, before reselling them in bulk to customers globally without the licensed software. "COA labels are not to be sold separately from the license and hardware that they are intended to accompany, and they hold no independent commercial value," the US Attorney's Office wrote.

Richards was found to have wired $5,148,181.50 to the unnamed Texas company during the scheme's operation. Some examples include the purchase of 800 Windows 10 COA labels in July 2018 for $22,100 (under $28 each) and a further 10,000 Windows 10 Pro COA labels in December 2022 for $200,000 ($20 each). Ultimately fined $50,000 and given a near-two-year sentence, prosecutors had sought to get Richards to pay $242,000, "which represents the proceeds obtained from the offenses."

XBox (Games)

Microsoft Confirms 'Project Helix,' a Next-Gen Xbox That Can Run PC Games (80.lv) 66

An anonymous reader quotes a report from 80 Level: Microsoft has officially confirmed development of its next-generation Xbox console, currently known internally as Project Helix. While concrete details remain limited, early information suggests the company is positioning the device as a hybrid between a traditional console and a gaming PC, capable of running both Xbox titles and PC games. The codename was revealed recently by new Xbox CEO Asha Sharma, who reaffirmed Microsoft's continued commitment to dedicated gaming hardware despite speculation that the company might shift entirely toward cloud or platform-based ecosystems. According to Sharma, Project Helix represents the next step in Xbox's console strategy.

Although official specifications have not yet been announced, early reports indicate the system will likely rely on a new AMD system-on-chip combining Xbox hardware with PC-style architecture. The device is expected to emphasize high performance while maintaining compatibility with existing Xbox game libraries. [...] If the concept holds, Project Helix could mark a significant shift in how console ecosystems are structured, moving away from tightly closed hardware platforms toward something closer to a unified PC-console environment.
Sharma wrote in a post on X: "Great start to the morning with Team Xbox, where we talked about our commitment to the return of Xbox, including Project Helix, the code name for our next generation console. Project Helix will lead in performance and play your Xbox and PC games. Looking forward to chatting about this more with partners and studios at my first GDC next week!"
AMD

AMD Will Bring Its 'Ryzen AI' Processors To Standard Desktop PCs For First Time (arstechnica.com) 27

An anonymous reader quotes a report from Ars Technica: AMD has been selling "Ryzen AI"-branded laptop processors for around a year and a half at this point. In addition to including modern CPU and GPU architectures, these are attempting to capitalize on the generative AI craze by offering chips with neural processing units (NPUs) suitable for running language and image-generation models locally, rather than on some company's server. But so far, AMD's desktop chips have lacked both these higher-performance NPUs and the Ryzen AI label. That changes today, at least a little: AMD is announcing its first three Ryzen AI chips for desktops using its AM5 CPU socket. These Ryzen AI 400-series CPUs are direct replacements for the Ryzen 8000G processors, rather than the Ryzen 9000-series, and they combine Zen 5-based CPU cores, RDNA 3.5 GPU cores, and an NPU capable of 50 trillion operations per second (TOPS). This makes them AMD's first desktop chips to qualify for Microsoft's Copilot+ PC label, which enables a handful of unique Windows 11 features like Recall and Click to Do.

The six chips AMD is announcing today -- the 65 W Ryzen AI 7 Pro 450G, Ryzen AI 5 Pro 440G, and Ryzen AI 5 Pro 435G, along with low-power 35 W "GE" variants -- all bear AMD's "Ryzen Pro" branding as well, which means they support a handful of device management capabilities that are important for business PCs managed by IT departments. At this point, it doesn't seem as though AMD will be offering boxed versions to regular consumers; the Ryzen AI desktop chips will appear mainly in business PCs that don't need a dedicated graphics card but still benefit from more robust graphics than AMD offers in regular Ryzen desktop CPUs. Like past G-series Ryzen chips, these are essentially laptop silicon repackaged for desktop systems. They share most of their specs in common with Ryzen AI 300 laptop processors, despite their Ryzen AI 400-series branding. The two chip generations are extremely similar overall, but the Ryzen AI 400-series laptop CPUs include slightly faster 55 TOPS NPUs.

Government

US Tech Firms Pledge At White House To Bear Costs of Energy For Datacenters (theguardian.com) 62

Major tech companies including Google, Microsoft, Amazon, and Meta pledged at the White House to pay for new power generation and grid upgrades needed to support their rapidly expanding datacenters. The Guardian reports: The agreement is meant to help mitigate concerns that big tech's datacenters are driving up US electricity costs for homes and small businesses at a time the administration of Donald Trump is seeking to curb inflation. "This means that the tech companies and the datacenters will be able to get the electricity they need, all without driving up electricity costs for consumers," the president said at the pledge signing event. "This is a historic win for countless American families and we'll also make our electricity grid stronger and more resilient than ever before."

The so-called "Ratepayer Protection Pledge" was first announced by Trump in his State of the Union address, and comes as communities and state legislators increase scrutiny of rapidly proliferating datacenters. Datacenters consume vast amounts of electricity to run server racks and cooling systems for the development of technologies such as artificial intelligence. "Some datacenters were rejected by communities for that, and now I think it's going to be just the opposite," Trump said, referencing cancelled or postponed projects in recent months across several states after local opposition.

The pledge includes a commitment by technology companies to bring or buy electricity supplies for their datacenters, either from new power plants or existing plants with expanded output capacity. It also includes commitments from big tech to pay for upgrades to power delivery systems and to enter special electricity rate agreements with utilities. The effort is aimed at drawing support from towns and cities that otherwise oppose the projects, said the Trump official, who spoke on the condition of anonymity.

Businesses

Jensen Huang Says Nvidia Is Pulling Back From OpenAI and Anthropic (techcrunch.com) 26

An anonymous reader quotes a report from TechCrunch: At the Morgan Stanley Technology, Media and Telecom conference in downtown San Francisco Wednesday, Nvidia CEO Jensen Huang said his company's recent investments in OpenAI and Anthropic are likely to be its last in both, saying that once they go public as anticipated later this year, the opportunity to invest closes. It could be that simple. While firms sometimes pile into companies until practically the eve of their public debut in search of more upside, Nvidia is minting money selling the chips that power both companies -- it's not like it needs to goose its returns by pouring even more money into either one.

Nvidia, for its part, isn't offering much more on the matter. Asked for comment earlier today following Huang's remarks, a spokesman pointed TechCrunch to a transcript from the company's fourth-quarter earnings call, where Huang said all of Nvidia's investments are "focused very squarely, strategically on expanding and deepening our ecosystem reach," a goal its earlier stakes in both companies have arguably met. Still, a few other dynamics might also explain the pullback, including the circular nature of these arrangements themselves. [...] Meanwhile, Nvidia's relationship with Anthropic has looked fraught in its own right. Just two months after Nvidia announced a $10 billion investment in November, Anthropic CEO Dario Amodei took the stage at Davos and, without naming Nvidia directly, compared the act of U.S. chip companies selling high-performance AI processors to approved Chinese customers to "selling nuclear weapons to North Korea." Ouch. [...]

Where that leaves Nvidia is holding stakes in two companies that, at this particular moment, are pulling in very different directions, and potentially dragging customers and partners along for the ride. Whether Huang saw any of this coming, given Nvidia's web of partnerships, is impossible to know. But his stated reason on Wednesday for likely pulling the plug on future investments -- that the IPO window closes the door on this kind of deal -- is hard to square with how late-stage private investing actually works. What's looking more probable is that this is an exit from a situation that has gotten really complicated, really fast.

Microsoft

Emails To Outlook.com Rejected By Faulty Or Overzealous Blocking Rules (theregister.com) 52

Microsoft spent much of the past week rejecting legitimate emails sent to Outlook.com, Live, and Hotmail accounts due to what appears to be overly aggressive IP reputation filtering or faulty blocklist rules. According to The Register, many senders received 550 errors claiming their networks were blocked, preventing delivery of invoices, notifications, and authentication emails. From the report: A block list is a good thing. It helps stem the flow of spam from networks or addresses associated with junk email. However, the confusing thing for our reader is that his company was not on Microsoft's naughty step for email. A look at Microsoft's Smart Network Data Service (SNDS) showed no issues with the IP. "We're also a member of their JMRP (Junk Mail Reporting Program)," our reader added, "which is intended to inform us when people are reporting spam sent from our IPs - except, we never get any reports."

The problem worsened in February. On Microsoft's support forums, users began to complain about similar issues as the IP net presumably widened. One wrote: "We are currently experiencing a critical and recurring email delivery issue affecting recipients at outlook.com, live.com, hotmail.com, and msn.com," and provided a copy of an error that suggested the mail server has been "temporarily rate limited due to IP reputation." The user drily noted, "Although the error indicates rate limiting, in practice no emails are being delivered."

A large number of users, ranging from the administrator of a server sending automated notifications on behalf of Estonian Public Libraries to an email provider for healthcare professionals, chimed in to confirm they too were having delivery problems and Microsoft support was not helpful. [...] Unsurprisingly, our reader spoke on condition of anonymity - nobody wants to be the ISP that has to say, "Yeah, we can deliver your email anywhere but Outlook.com" to customers. We asked Microsoft to comment, but other than acknowledging our questions, the company did not respond further.

Programming

OpenAI Is Developing an Alternative To GitHub (reuters.com) 61

OpenAI is reportedly developing a code-hosting platform that could compete with GitHub, The Information reported on Tuesday. "If OpenAI does sell the product, it would mark a bold move by the creator of ChatGPT to compete directly against Microsoft, which holds a significant stake in the firm," notes Reuters. From the report: Engineers from OpenAI encountered a rise in service disruptions that rendered GitHub unavailable in recent months, which ultimately prompted the decision to develop the new product, the report said. The OpenAI project is in its early stages and likely will not be completed for months, according to The Information. Employees working on it have considered making the code repository available for purchase to OpenAI's customer base.
Software

LibreOffice Says Its UI Is Way Better Than Microsoft Office's (neowin.net) 235

darwinmac writes: While many users choose Microsoft Office over LibreOffice because of its support for the proprietary formats (.docx, .xlsx, and .pptx), others prefer Office for its "better" ribbon interface. These users often criticize LibreOffice for having a "clunky" UI instead of the "standard" ribbon interface you would find in Word, Excel, and other Office apps.

Now, Neowin reports that LibreOffice is fighting back, arguing that its UI is actually superior because it is customizable, with several modes such as the classic toolbar interface, an Office-inspired ribbon layout, a sidebar-focused design, and more. Furthermore, it argues that there is no evidence that the ribbon offers "superior usability" over other interface modes.
LibreOffice says in a blog post: Incidentally, the characterization of ribbon-style interfaces as "modern" or "standard," used by several users, is not based on any objective usability parameter or design principle, but is the result of Microsoft's dominance in the market and the huge investments made when the ribbon was introduced in Office 2007 as a new paradigm for productivity software. The idea that "modern" equals "similar to a ribbon" is a normalization effect: the Microsoft interface has become a benchmark because of its ubiquity, not because of its proven advantages in terms of usability. Added to this is the fact that many users evaluate office software through the lens of familiarity with Microsoft Office and consider deviation from it as a problem rather than a design choice. Before this, LibreOffice had also criticized its competitor OnlyOffice, accusing it of being "fake open source" because it believes OnlyOffice is working with Microsoft to lock users into the Office ecosystem by prioritizing the formats mentioned earlier instead of LibreOffice's own OpenDocument Format (ODF).
Windows

Microsoft Bans 'Microslop' On Its Discord, Then Locks the Server (windowslatest.com) 82

Over the weekend, Windows Latest noticed that Microsoft's official Copilot Discord server began automatically blocking the term "Microslop." As shown in a screenshot, any message containing the word is automatically prevented from posting, and users receive a moderation notice explaining that the message includes language deemed inappropriate under the server's rules. From the report: Windows Latest found that sending a message with the word "Microslop" inside the official Copilot Discord server immediately triggers an automated moderation response. The message does not appear publicly in the channel, and instead, only the sender sees the notice stating that the content is blocked by the server because it contains a phrase deemed inappropriate.

Of course, the internet rarely leaves things there. Shortly after Windows Latest posted about Copilot Discord server blocking Microslop on X, users began experimenting in the server with variations such as "Microsl0p" using a zero instead of the letter "o." Predictably, those versions slipped past the filter. Keyword moderation has always been something of a cat-and-mouse game, and this isn't any different.

What started as a simple keyword filter quickly snowballed into users deliberately testing the restriction and posting variations of the blocked term. Accounts that included "Microslop" in their messages first got banned from messaging again. Not long after, access to parts of the server was restricted, with message history hidden and posting permissions disabled for many users.

Education

Microsoft: Computer Programming Is Dying, Long Live AI Literacy 104

theodp writes: On Tuesday, Microsoft GM of Education and Workforce Policy (and former Code.org Chief Academic Officer) Pat Yongpradit posted an obituary of sorts for coders. "Computer programmers and software developers are codified differently in the BLS [Bureau of Labor Statistics] data," Yongpradit wrote. "The modern AI-infused world needs less computer programmers (coders) and more software developers (more holistic and higher level). So when folks say that there is less hiring of computer programmers, they are right. But there will be more hiring of software developers, especially those who have adopted an AI-forward mindset and skillset. [...] The number of just pure computer programming roles has already been declining due to reasons like outsourcing, AI will just accelerate the decline."

On Wednesday, Yongpradit's colleague Allyson Knox, Senior Director of Education and Workforce Policy at Microsoft, put another AI nail in the coder coffin, testifying before the House Committee on Education -- the Workforce Subcommittee on Early Childhood, Elementary, and Secondary Education on Building an AI-ready America: Teaching in the Age of AI. "Thank you to Chairman Tim Walberg, Ranking Member Bobby Scott, Chair Kevin Kiley, Ranking Member Suzanne Bonamici and members of the Subcommittee for the opportunity to share Microsoft perspective and that of the educators and parents we hear from every day across the country," Knox wrote in a LinkedIn post.

"Three themes continue to emerge throughout these discussions: 1. Educators want support to build AI literacy and critical thinking skills. 2. Schools need guidance and guardrails to ensure student data is protected and adults remain in control. 3. Teachers want classroom-ready tools, and a voice in shaping them. If we focus on these priorities, we can help ensure AI expands opportunity for every student across the United States."

Yongpradit and Knox report up to Microsoft President Brad Smith, who last July told Code.org CEO Hadi Partovi it was time for the tech-backed nonprofit to "switch hats" from coding to AI as Microsoft announced a new $4 billion initiative to advance AI education. Smith's thoughts on the extraordinary promise of AI in education were cited by Knox in her 2026 Congressional testimony. Interestingly, Knox argued for the importance of computer programming literacy in her 2013 Congressional testimony at a hearing on Our Nation of Builders: Training the Builders of the Future. "Congress needs to come up with fresh ideas on how we can continue to train the next generation of builders, programmers, manufacturers, technicians and entrepreneurs," said Rep. Lee Terry said to open the discussion.

So, are reports of computer programming's imminent death greatly exaggerated?
Google

Google Launches Nano Banana 2 Model With Faster Image Generation (techcrunch.com) 6

Google has launched Nano Banana 2 (Gemini 3.1 Flash Image), a faster, more realistic image generation model that becomes the default across Gemini, Search, Lens, and Flow. TechCrunch reports: The new Nano Banana 2 retains some of the high-fidelity characteristics of the Pro model but produces images faster. The company says you can create images with a resolution ranging from 512px to 4K, in different aspect ratios. Nano Banana 2 can maintain character consistency for up to five characters and fidelity of up to 14 objects in one workflow for better storytelling. Users can also issue complex requests with detailed nuances for image generation, Google says. In addition, users can create media with more vibrant lighting, richer textures, and sharper detail.

[...] On Google's higher-end plans, Google AI Pro and Ultra, subscribers can continue to use Nano Banana Pro for specialized tasks by regenerating images via the three-dot menu. [...] The company said that all images created through the new model will have a SynthID watermark, which is Google's mark to denote AI-generated images. The images are also interoperable with C2PA Content Credentials, created by an industry body consisting of companies like Adobe, Microsoft, Google, OpenAI, and Meta. Google said that since launching the SynthID verification in the Gemini app in November, people have used it over 20 million times.

Security

AI Can Find Hundreds of Software Bugs -- Fixing Them Is Another Story (theregister.com) 26

Anthropic last week promoted Claude Code Security, a research preview capability that uses its Claude Opus 4.6 model to hunt for software vulnerabilities, claiming its red team had surfaced over 500 bugs in production open-source codebases -- but security researchers say the real bottleneck was never discovery.

Guy Azari, a former security researcher at Microsoft and Palo Alto Networks, told The Register that only two to three of those 500 vulnerabilities have been fixed and none have received CVE assignments. The National Vulnerability Database already carried a backlog of roughly 30,000 CVE entries awaiting analysis in 2025, and nearly two-thirds of reported open-source vulnerabilities lacked an NVD severity score.

The curl project closed its bug bounty program because maintainers could no longer handle the flood of poorly crafted reports from AI tools and humans alike. Feross Aboukhadijeh, CEO of security firm Socket, said discovery is becoming dramatically cheaper but validating findings, coordinating with maintainers, and developing architecture-aligned patches remains slow, human-intensive work.
Businesses

Tech Firms Aren't Just Encouraging Their Workers To Use AI. They're Enforcing It. (msn.com) 101

Tech companies ranging from 300-person startups to giants like Amazon, Google, Meta, Microsoft and Salesforce have moved beyond encouraging employees to use AI tools and are now actively tracking adoption and, in several cases, tying it to performance reviews. Google is factoring AI use into some software engineer reviews for the first time this year, and Meta's new performance review system will do the same -- it can track how many lines of code an engineer wrote with AI assistance.

Amazon Web Services managers have dashboards showing individual engineer AI-tool usage and consider adoption when evaluating promotions. About 42% of tech-industry workers said their direct manager expects AI use in daily work as of last October, up from 32% eight months earlier, according to AI consulting firm Section. At software maker Autodesk, CEO Andrew Anagnost acknowledged that some employees had been using initially blocked coding tools like Cursor stealthily -- and warned that AI holdouts "probably won't survive long term."
XBox (Games)

Xbox Co-founder Says Microsoft is Quietly Sunsetting the Platform (gamesbeat.com) 46

Seamus Blackley, one of the original founders of Xbox who helped convince Bill Gates and Steve Ballmer to back a console project more than 26 years ago, told GamesBeat in an interview that he believes Microsoft is quietly sunsetting the platform under the guise of an AI-driven leadership transition.

Microsoft recently announced that Asha Sharma, whose career has focused on AI and software as a service, will replace Phil Spencer as Xbox CEO, and that COO and president Sarah Bond is leaving the company. Blackley said he expects Sharma's role to be that of "a palliative care doctor who slides Xbox gently into the night," arguing that Satya Nadella's all-consuming bet on generative AI has turned every business unit -- Xbox included -- into a nail for the same hammer.

He compared the appointment to putting someone who doesn't like movies in charge of a major motion picture studio, and advised Sharma to either develop a genuine passion for games or find a way to leave the job soon.
Microsoft

Microsoft Japan Raided Over Suspected Violation of Anti-Monopoly Law (reuters.com) 25

An anonymous reader shares a report: Japan's Fair Trade Commission raided Microsoft Japan's offices on Wednesday as part of an investigation into whether it improperly restricted customers of its Azure platform from using rival cloud services, a source with direct knowledge of the matter told Reuters.

The source said Japan's antitrust authorities would also be seeking clarification from Microsoft's parent company in the United States. Microsoft Japan is suspected of setting conditions that effectively shut out other services by limiting access to popular services on other cloud platforms, the source said.

Programming

Microsoft Execs Worry AI Will Eat Entry Level Coding Jobs (theregister.com) 62

An anonymous reader shares a report: Microsoft Azure CTO Mark Russinovich and VP of Developer Community Scott Hanselman have written a paper arguing that senior software engineers must mentor junior developers to prevent AI coding agents from hollowing out the profession's future skills base.

The paper, Redefining the Engineering Profession for AI, is based on several assumptions, the first of which is that agentic coding assistants "give senior engineers an AI boost... while imposing an AI drag on early-in-career (EiC) developers to steer, verify and integrate AI output."

In an earlier podcast on the subject, Russinovich said this basic premise -- that AI is increasing productivity only for senior developers while reducing it for juniors -- is a "hot topic in all our customer engagements... they all say they see it at their companies." [...] The logical outcome is that "if organizations focus only on short-term efficiency -- hiring those who can already direct AI -- they risk hollowing out the next generation of technical leaders," Russinovich and Hanselman state in the paper.

Microsoft

Billions of Dollars Later and Still Nobody Knows What an Xbox Is (theverge.com) 65

Microsoft has spent more than $76 billion acquiring game studios and publishers over the past few years in an attempt to turn Xbox into a Netflix-like subscription platform, and the result is that nobody -- possibly not even Microsoft -- can clearly articulate what Xbox actually is anymore, The Verge writes.

The brand started as a powerful video game console, but Game Pass and cloud gaming pushed it toward a hazier identity: the "This is an Xbox" ad campaign tried to redefine it as any device that could play Xbox games, whether a PC, a smart TV, a phone, or a Windows handheld. Microsoft then went further and started publishing its biggest franchises on PlayStation, making it one of the largest third-party publishers on a rival's platform.

Phil Spencer, who led the division for over a decade and drove the subscription pivot, announced his retirement last week, and incoming CEO Asha Sharma has pledged "the return of Xbox" -- though her memo also talks about expanding across PC, mobile, and cloud, which sounds a lot like the status quo.
XBox (Games)

New Microsoft Gaming CEO Has 'No Tolerance For Bad AI' (variety.com) 58

In her first major interview as Microsoft's new gaming chief, Asha Sharma said that "great games" must deliver emotional resonance and a distinct creative voice, while making clear that she has "no tolerance for bad AI." Stepping in after Phil Spencer's retirement, she's pledging consistency, community trust, and a human-first approach to storytelling as Xbox enters a new era. Variety reports: Sharma was quick in laying out her top priorities for Microsoft Gaming in an internal memo announcing her promotion, noting "great games," "the return of Xbox" and the "future of play" as her three main commitments to the gaming community. So first, what makes a great game for Sharma, whose roles prior to CoreAI include top positions at Instacart and Meta? The new Microsoft Gaming CEO tells Variety it's all about games with "deep emotional resonance" and "a distinct point of view." She wants to develop stories that make players "feel something," like the kind of feelings Campo Santo's 2016 first-person mystery "Firewatch" elicited in her.

Sharma takes on the mantle as head of the leading competitor to Sony's PlayStation and Nintendo knowing full well she's entering the role as an outsider to the larger gaming community and has "a lot to learn" still. But Sharma says she's got a commitment to "being grounded in what the community is telling us." "I'm coming into gaming as a platform builder," Sharma said, adding that her goal is to "earn the right to be trusted by players and developers" and show the fanbase that "consistency" over time. In her interview with Variety, Sharma acknowledged the tumultuous state of the gaming industry, referencing Matthew Ball's recent State of Video Gaming in 2026 report as evidence that the larger "transformation" of the sector is "protecting what we believe in while remaining open-minded about the future."

Due to her strong background in AI, initial reactions to Sharma's appointment have raised concerns about what her specific views are on the use of generative AI in game development. Sharma says her stance is simple: she has "no tolerance for bad AI." "AI has long been part of gaming and will continue to be," Sharma said, noting that gaming needs new "growth engines," but that "great stories are created by humans."

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