Delivering the giant corporation version of you may want to sit down for this, Xbox group product manager, Aaron Greenberg, has predicted less-than-stellar sales results for the American Xbox 360 during February. Beating the NPD Group to the forthcoming bad news punch, Greenberg told Reuters that continued supply problems would likely place the system behind Sony's monolith for the second month in a row.

"We definitely expect we will trail in February as a result of our supply constraints," said Greenberg. Things are expected to improve in April, however, with "a very healthy inventory situation" setting the table for Grand Theft Auto IV's trumpeted arrival.

In the last six years, there's been one constant when discussing Microsoft's foray into the strange and seductive world of video game console manufacturing: they had yet to turn a profit on any of it. No more, with today's announcement of Microsoft's second quarter earnings which showed a relatively impressive six-month income of $524 million (compared to a $423m loss during the same period last year) from the the Xbox's Entertainment and Devices Division.

Before you go thinking that was all thanks to the Zune and PC game sales, the company's 10-Q filing states that the EDD's increased revenue was "primarily due to increased Xbox 360 platform sales." During the last six months they say Xbox platform and PC game revenue increased 35% as a result of "increased Xbox 360 console sales, video game sales led by Halo 3, Xbox Live revenues, and Xbox 360 accessory sales." (Sounds like EDD bossman Robbie Bach nailed it).

The 6.1 million Xbox 360 consoles and 4.82 million copies of Halo 3 sold in the first half of fiscal '08 sure helped, but so did "decreased Xbox 360 manufacturing costs" and "a decline in Xbox 360 platform marketing expenses" – it's costing less to build them and less to promote the brand. But they'll need to hold on far longer than one quarter to make their sojourn into the living rooms of America worthwhile; for the rest of fiscal '08 they "expect revenue to increase due to increased sales of Xbox 360 consoles and related games, accessories, and services." Yup, that sounds about right.

[Via GameDaily]

In another CES 2008 announcement, Microsoft has highlighted nine new additions to its Games for Windows endeavor, promising to "continue the momentum for Windows-based gaming in 2008" and "revive" the PC gaming space. The titles due to be dressed in Microsoft's colors include:

• Alone in the Dark (Atari)
  
• Bionic Commando (Capcom)
• Conflict: Denied Ops (Eidos Interactive)
• Empire: Total War (SEGA)
• LEGO Indiana Jones (LucasArts)
• Microsoft Train Simulator 2 (Microsoft Game Studios)
• Sins of a Solar Empire (Stardock)
• Space Siege (SEGA)
• Tomb Raider: Underworld (Eidos Interactive)

The list not only cements the "Underworld" subtitle to Eidos' next Tomb Raider, but provides reassurance as to the longevity of Microsoft's initiative. Games for Windows is sure to be around for quite some time if Alone in the Dark manages to arrive under its banner. Microsoft's polite press release is also keen to remind us that other expected 2008 titles -- Age of Conan: Hyborian Adventures, Borderlands, The Club, Fallout 3 and Frontlines: Fuel of War -- will stand beneath the flapping emblem.

Following yesterday's announcement that Microsoft would be expanding their warranty program to cover the Red Ring of Death issue for up to three years from the purchase date -- at a cost of $1.05 to $1.15 billion -- we tuned into their conference call with Robbie Bach, President of Entertainment & Devices Division, and other Microsoft executives. We've transcribed the call for your edification:

Robbie Bach: Good afternoon everyone. Thank you for joining us this afternoon. I want to update you on the things we're rolling out across the Xbox 360 Before I get into the details of the announcement I want to give you a quick snapshot of the Xbox business. Overall the fundamentals of the business remain very strong. Our games attach rates remain the highest in the industry as seen at this stage in the console's life cycle. Xbox Live continues to add members and we're selling lots of games. If you look at customer recommendations, about 90% of our customers recommend our product to friends. And we're getting ready to go to E3 where we'll show what we believe to be the best slate of games the industry has ever seen. So the fundamentals are good.

Several technology websites have become hosts to images of newly repaired Xbox 360s featuring a cooling solution which was not present in the original hardware. It is claimed that after placing a malfunctioning system in a cozy coffin and sending it off to Microsoft, users receive a repaired system equipped with a second GPU (graphics processing unit) heatsink. No instances of the heatsink appearing in brand new systems have yet been documented, but its initial appearance seems to highlight what anecdotal evidence has been suggesting for months -- if it's broke, you should fix it.

Is Microsoft finally taking a shot at Peter Moore's "moving target" failure rate? If indeed legitimate, this hardware modification suggests that the system's reported problems could be due to an engineering issue as opposed to generalized problems. Then again, it's no simple matter drawing conclusions based on nothing but anecdotal evidence and a tight-lipped manufacturer... and perhaps therein lies the real problem. Microsoft did not respond to our request for comment at the time of writing.

[Thanks to everyone who sent this in]

Arriving alongside the most anticipated game release of all time (oh, and the Halo 3 beta), Aegis Wing is set to remind us yet again that things from outer space are always coming to kill you. Conceived by three enterprising Microsoft interns over the course of a summer and developed in conjunction with Uno's Carbonated Games, the side-scrolling shooter invites up to four players to pilot conspicuously colored spaceships and shoot down alien oppressors this coming Wednesday, May 16th. As with any modern spacecraft, each ship can initiate a mechanical group hug with the others and thus unleash more devastating (and elaborately named) attacks.

Aegis Wing will be available for free on Xbox Live Arcade -- a "gift to gamers," says Microsoft -- but only for "a limited time." The time will be especially limited if you live outside North America, where the game will not be available for download at all. No gifts for you, foreign gamers!



[Via Microsoft press release]

In a politely worded e-mail, Microsoft has announced that seriously simmy sequel, Forza Motorsport 2, has at last gone gold. Having hit Ctrl+S for the final time, the team at Turn 10 Studios has sent the finished code off to the disc pressers, shortly before collapsing into a nearby and distinctly unhygienic pool of blood, sweat and oil.

A demo of Forza 2 is currently available on the Xbox Live Marketplace and the full game can be expected to arrive on 29 May. UK retailers currently list a June 8th release date for those that enjoy driving on the wrong side of the road.

[Via Microsoft press release]

Had Allard been the winner, he would have been awarded the opportunity to liberate Croal's intimidating locks. If not, he would have to slap a dread wig on his own, spectacularly bald head for an entire month and be seen with it during Microsoft's E3 2006 presentation. With Allard failing to show up during the conference, however, the lost bet was never honored. Not willing to let the matter go so easily, N'Gai most recently posted an investigation and interview into why people (hypothetically) fail to live up to their part of the bargain.

We'd normally be trite and say something about "better late than never", but having spent a few seconds looking at Allard's new visage... we find ourselves leaning towards "never."

[Via Level Up]

While the internet continues to decimate conventional demarcations like "countries" or "continents," content owners still find themselves funneled into separate geographical compartments. As an Xbox Live user, you are encouraged to keep your arms, legs and credit cards on the inside at all times, lest you cause some sort of international incident. The Xbox 360's Spring (that's Autumn for those on the other half of the planet!) dashboard update will further enforce this by restricting downloads based on the location of your console.

As Microsoft's John Porcaro explains it on the Gamerscore Blog, "if you have set up an account that does not match the country where you are located, you will find that these new security measures will only allow you to purchase and download content that is licensed in the country where you are located." Frequently, said country will not go by the name of "America," as the wealth of content available to US subscribers utterly dwarfs that found in other regions, including Europe. There's a reason people are taking their Xbox Live accounts on international trips.

While this primarily concerns content such as television shows and movies (which often hit Xbox Live before they've even been advertised in other countries), the decision to "strengthen the territory controls" seems exclusionary when more effort could be made to spread the content on a supposedly global network. The spider's web of licensing and regulation within television makes the delay and segregation somewhat understandable, but the possibility of Xbox Live Arcade games becoming similarly entangled is worrisome. Gamers in countries where the Xbox 360 has launched sans "official" Live support are already being foiled in their attempts just to purchase MS points. Your plastic's no good -- oh, except when it comes time to renew that Gold subscription. Then those borders fall down like dominoes.

Containing four new maps and a strong allusion to bulletproof codpieces, the "Hidden Fronts" map pack for testosterone explosion simulator, Gears of War, is now available for download on the Xbox Live Marketplace. In exchange for 800 MS points ($10), you'll receive approximately 230 megabytes of data that will automagically congeal on your hard drive and form beautiful, post-apocalyptic environments.

Those less intent on wiping out the Locust horde can wait until September 3rd for the maps to become free of charge.

THE CATAN GAZETTE -- 30 APRIL 2007

Six Corners City, Island of Catan. The astonishing rate at which the settlers of Catan have transformed the previously uninhabited and decidedly unimpressive island into something civilized is set to slow down this week, when primary construction on the Xbox Live Arcade comes to a close on Wednesday, May 2nd, at 9AM GMT (2AM PST). Mayor Taus Kleuber, whose city will host the entertainment complex, noted that, "I encourage all our settlers to visit the arcade and forget about their jobs for a few hours."

It seems that customers are already doing just that, lining up outside the arcade with the required 800 MS Points entry fee already in hand. "It seems like a reasonable price," said one excited teenager. "Then again, our currency never made any sense to me." Another woman expressed dismay at the growing excitement. "This new-fangled tomfoolery disgusts me. Why, my little girl's school was attacked by bears the other day because the guy who was making the fence went to check out this arcade. If I were a witch or something, I'd put this thing on a hex for sure!"


The most important part of establishing a successful arcade is filling it with quality games. So says self-proclaimed "gamer," Thaddeus McMac. "It's all about the games. When the Xbox Live Arcade opens this week, they're putting up some Centipede and Millipede machines." McMac notes that this "retro" package deal, which lumps together the two similar titles, costs 400 MS points and is perfect for those that enjoyed it before they moved to Catan. "Personally, I think I'll just wait for Catan to get some sunglass stores. I'll need a rose-colored pair before I tangle with those bugs again!"

Turn to Page 2 for our riveting poll: How do you pronounce Catan? (Hint: It doesn't rhyme with Satan!)

A CVG report asserts that the Xbox 360's role-playing space opera, Mass Effect, has been "delayed" until the horrifyingly distant month of September. Of course, having never had an official release date to begin with, it seems exceedingly impatient to consider the game delayed just as its first potential release window is revealed. Though there have been hints pointing towards a May or June release, September would be the first month Microsoft and BioWare have openly committed to -- if indeed the report is wholly accurate.

We'd prefer a month that was sooner (like April), but it seems the utterly blinding level of light bouncing off all the shiny spaceships, futuristic weapons and revoltingly moist aliens in the game just isn't enough for BioWare to stop polishing. The only worrying aspect of such a September release is that it would be awfully close to the August arrival of Hironobu Sakaguchi's Blue Dragon. Having access to both time-consuming RPGs within 30 days could prove socially, economically and hygienically disastrous for fans of the genre.

Curiously, when asked for comment on the September date (which could specifically be for Europe), the Mass Effect publisher only offered, "Microsoft has not announced a release date for Mass Effect."

Update: "We have not made any official announcements regarding release timing for Mass Effect," adds Microsoft. "At this time, any information about the game's release date is purely rumor and speculation."

Joystiq contacted CVG for clarification. We were politely informed that the information originated from a Microsoft employee and that it has yet to be "officially" announced. In other words, we're waiting on that official announcement letting us know we have to wait until September for the game -- point being, we're waiting.

A just punishment for such a terrible mangling of words, not to mention the trickery of "Final Forza 2" leading people to believe that Microsoft was releasing a bizarre automotive RPG, complete with mutant mechanics and bottles of restorative oil. No, the relevant game is Forza 2, simmy sequel to 2005's foray into car customization, reckless racing and all-round Gran Turismo-ing.

The official Forza Motorsport 2 website has unveiled the full list of cars to be included in the final game when it screeches into stores this May. Numbering 310 and representing enough reflective metal to burn holes through the back of your head, the list of cars is sure to please fans unsatisfied by the forthcoming demo's comparatively meager offering of 24 vehicles. It's noted that seven of the 310 cars have been deemed "special," with some only being available to pre-order deals and the game's collectors edition. The "controversial unicorn cars" will also be exclusively available for a limited time in the game's online auction house.

Racing enthusiasts are encouraged to look, use the Forza page and inspect the list closely as they attempt to answer the question, "Is there vroom for improvement?"

Update: Article author shot as well.

[Via Xbox 360 Fanboy]

The Ann Arbor News reported this weekend about a high school junior's plans for a school-sanctioned Halo 2 tournament, which was canceled after local police got wind of it. Zach Wigal had hacked through a jungle of bureaucracy for nine months while planning the tournament, spending $650 of his own cash on a permit, printing 2,500 fliers, and clearing the idea with school officials.

Four days before the event, Wigal's dad made a courtesy call to the cops, letting them know than an estimated 300 gamers were about to descend on the high school commons, suggesting that the officer might want to attend for security reasons. That set off a chain reaction of concerned phone calls that ended up with the school officials rescinding their permission for the tournament, ostensibly because "kids 17 and under playing an M-rated game for money is not something appropriate for the high school." A reasonable decision, but one that they were perfectly capable of making, oh, nine months ago.

Zach Wigal had better hope he gets that $650 back.