AI

Google's Project Genie Lets You Generate Your Own Interactive Worlds 28

Google is letting outsiders experiment with DeepMind's Genie 3 "world model" via Project Genie, a tool for generating short, interactive AI worlds. The caveat: it requires a $250/month AI Ultra subscription, is U.S.-only, and has tight limits that make it more of a tech demo than a game engine. Engadget reports: At launch, Project Genie offers three different modes of interaction: World Sketching, exploration and remixing. The first sees Google's Nano Banana Pro model generating the source image Genie 3 will use to create the world you will later explore. At this stage, you can describe your character, define the camera perspective -- be it first-person, third-person or isometric -- and how you want to explore the world Genie 3 is about to generate. Before you can jump into the model's creation, Nano Banana Pro will "sketch" what you're about to see so you can make tweaks. It's also possible to write your own prompts for worlds others have used Genie to generate.

One thing to keep in mind is that Genie 3 is not a game engine. While its outputs can look game-like, and it can simulate physical interactions, there aren't traditional game mechanics here. Generations are also limited to 60 seconds, as is the presentation, which is capped at 24 frames per second and 720p.
Games

Nvidia GeForce NOW Is Now Available Natively On Linux (phoronix.com) 17

NVIDIA has officially launched a native GeForce NOW client for Linux as a Flatpak, giving Linux gamers access to cloud-rendered RTX gaming. Phoronix reports: While confined to a Flatpak, for now NVIDIA is just "officially" supporting it on Ubuntu 24.04 LTS and later. Granted, thanks to Flatpak it should run on other non-Ubuntu distributions too but in terms of the official support and where they are qualifying their builds they are limiting it just to Ubuntu 24.04 LTS and later. [...] At launch the Flatpak build is also just for x86_64 Linux with no AArch64 Linux builds or similar at this time.

Running GeForce NOW on Linux while games are rendered in NVIDIA's cloud with Blackwell GPUs, you still need to be using a modern GPU with H.264 or H.265 Vulkan Video support NVIDIA isn't yet supporting Vulkan Video AV1 with GeForce NOW on Linux but just H.264/H.265. If you are using NVIDIA graphics the NVIDIA R580 series or newer is recommended while using the X.Org session. If you are using Intel or AMD Radeon graphics, Mesa 24.2+ is recommended and using the Wayland session.

When you are up and running with GeForce NOW on Linux, you have access to over 4,500 games. The free tier of GeForce NOW provides standard access to the gaming servers and limited session caps for an introductory-level experience. It's with the performance tier where you can enjoy RTX ray-tracing and 1440p @ 60 FPS performance and up to six hour sessions. With GeForce NOW's Ultimate tier is where you are running on GeForce RTX 5080 GPU servers with support for up to 5K @ 120 FPS gaming or 1080p @ 360 FPS with up to eight hour gaming sessions in length.

XBox (Games)

Xbox Hardware Revenue Craters 32% (pcgamer.com) 26

Microsoft's Xbox hardware revenue fell 32% in the final quarter of 2025 and overall gaming revenue declined 9% year-over-year, according to the company's latest quarterly earnings, released as part of results showing Microsoft's total revenue exceeded $80 billion.

Xbox content and services revenue, which includes Game Pass, dropped 5%.
XBox (Games)

Microsoft Is Refreshing the Xbox Cloud Gaming Web Experience (thurrott.com) 3

An anonymous reader quotes a report from Thurrott: Microsoft is testing a refresh of the Xbox Cloud Gaming web experience in public preview. "This preview is a first look at our new web interface on your browser and lets you try the updated design and product flow before it is rolled out broadly," Microsoft's Patrick Siu explains. "Players who opt in to this preview will see some changes to their experience including updated navigation features and a refreshed look and feel. As this is a preview, some functions may not yet be available or may behave differently than the current web experience. We will continue iterating during the preview period and changes may be made over time."

[...] There's no real info about what's in the new experience, oddly. Microsoft notes only that it "lays the foundation for accelerating [their] ability to build new experiences for players," and that it "helps [them] validate the new web platform and refine the experience for everyone."
The public preview can be found at xbox.com/play.
Games

GTA 6's Physical Release Could Be Delayed To 2027 Because of Leaks 38

An anonymous reader shares a report: An insider who correctly leaked information about Oblivion: Remastered and other titles is warning that GTA 6's physical release could be pushed back. GTA 6 is set to finally launch on November 19, 2026, but fans hoping to get their hands on a physical copy could be stuck waiting even longer.

According to a report from Polish site PPE, insider Graczdari says Rockstar's parent company, Take-Two, isn't planning to release a physical edition of GTA 6 at launch. "We are getting more and more information that the box version will not be released simultaneously with the digital version to prevent leaks," the report says.
Games

Angry Gamers Are Forcing Studios To Scrap or Rethink New Releases (msn.com) 71

The video game industry is experiencing something that most consumer-facing businesses would consider remarkable: organized online campaigns from players are actually forcing studios to cancel projects or publicly walk back any association with AI-generated content.

Running With Scissors, the publisher behind the Postal shooter franchise, recently scrapped a title after players accused its trailer of containing AI-generated graphics. Goonswarm Games, the developer behind the canceled project, subsequently shut down entirely and cited six years of lost work alongside what it described as a flood of threats and accusations.

Sandfall Interactive's "Obscur: Expedition 33" had its Indie Game Awards Game of the Year honor rescinded after the developer said it had considered AI-generated images, even though the final release contained none. Larian Studios, the developer behind Baldur's Gate 3, faced immediate backlash after CEO Swen Vincke mentioned in an interview that the company was using generative AI to "explore ideas" for an upcoming release. Vincke later clarified on X that artists use AI only for reference images the way they would use "art books or Google," and Larian executives eventually stated on Reddit that AI would play no role in final artwork.
The Internet

A Game Studio's Fired Co-Founder Hijacked Its Domain Name, a New Lawsuit Alleges (aftermath.site) 13

Three co-founders of the game studio That's No Moon "are suing another co-founder for allegedly hijacking the company's website domain name," reports the gaming news site Aftermath, "taking the website offline and disabling employee access to email accounts, according to a new lawsuit." Tina Kowalewski, Taylor Kurosaki, and Nick Kononelos filed a complaint against co-founder and former CEO Michael Mumbauer on Tuesday in a California court. [Game studio] That's No Moon, which was founded in 2020 by veterans of Infinity Ward, Naughty Dog, and other AAA studios, said in its complaint that Mumbauer is looking to "cripple" the studio after being fired in 2022...

Mumbauer, according to the complaint, purchased the domain name, and several others, when the studio was founded; it said both parties agreed these would be controlled by the studio. Mumbauer allegedly still has access to the domains, and That's No Moon said he took control over the website on Jan. 6, disabled the studio's access, and turned off employees' ability to email external addresses. The team was locked out for two days as a four-person IT team worked to get the services back online. On the public-facing side, the website briefly redirected to the Travel Switzerland page, according to the complaint. That's No Moon's lawyers said the co-founders sent Mumbauer a letter on Jan. 7 demanding he "relinquish his unauthorized access." That's when, according to the compliant, the website started redirecting to a GoDaddy Auction site, where the domain was priced at $6,666,666; That's No Moon remarked in the complaint: "A number that [Mumbauer] may well have selected for its Satanic connotation."

As of Wednesday, Aftermath was able to access a public-facing That's No Moon website using both the original domain and the new one... The charges listed as part of this lawsuit are trademark infringement, cybersquatting, computer fraud, conversion, trespass to chattels, and breach of contract. That's No Moon also asked a judge for a temporary restraining order to prevent Mumbauer from continued access to the domains. Mumbauer has not responded to Aftermath's request for comment. Mumbauer said, in an email to That's No Moon attorney Amit Rana published as part of the lawsuit, that he intends to file "a wrongful termination countersuit and will be seeking extensive damages...."

That's No Moon hasn't yet announced its first game, but has said the game is led by creative director Taylor Kurosaki and game director Jacob Minkoff. South Korean publisher Smilegate invested $100 million into the company, That's No Moon announced in 2021.

Businesses

Ubisoft Cancels Six Games, Slashes Guidance in Restructuring (msn.com) 23

Ubisoft is canceling game projects, shutting down studios and cutting its guidance as the Assassin's Creed maker restructures its business into five units. From a report: The French gaming firm expects earnings before interest and tax to be a loss of $1.2 billion the fiscal year 2025-2026 as a result of the restructuring, driven by a one-off writedown of about $761 million, the company said in a statement on Wednesday.

Ubisoft also expects net bookings of around $1.76 billion for the year, with a $386 million gross margin reduction compared to previous guidance, it said. Six games, including a remake of Prince of Persia The Sands of Time, have been discontinued and seven other unidentified games are delayed, the company said. The measures are part of a broader plan to streamline operations, including closing studios in Stockholm and Halifax, Canada. Ubisoft said it will have cut at least $117 million in fixed costs compared to the latest financial year by March, a year ahead of target, and has set a goal to slash an additional $234 million over the next two years.

Microsoft

Microsoft's Xbox Cloud Gaming May Soon Let You Stream Your Own Games for Free - If You Watch Ads (windowscentral.com) 6

Microsoft appears to be preparing an ad-supported tier for Xbox Cloud Gaming that would let players stream games they've purchased digitally without needing a Game Pass subscription, according to a Windows Central report citing sources familiar with the plans. Users last week began noticing a new message pop up while launching cloud games that referenced "1 hour of ad supported play time per session," though no such tier currently exists.

The ad-supported option, expected to launch sometime this year, would specifically target the hundreds of games available for digital purchase through Xbox Cloud Gaming -- titles that currently require at least one tier of Game Pass to stream despite being owned outright by the player.
AI

Valve Has 'Significantly' Rewritten Steam's Rules For How Developers Must Disclose AI Use (videogameschronicle.com) 18

Valve has substantially overhauled its guidelines for how game developers must disclose the use of generative AI on Steam, making explicit that tools like code assistants and other development aids do not fall under the disclosure requirement. The updated rules clarify that Valve's focus is not on "efficiency gains through the use of AI-powered dev tools."

Developers must still disclose two specific categories: AI used to generate in-game content, store page assets, or marketing materials, and AI that creates content like images, audio, or text during gameplay itself. Steam has required AI disclosures since 2024, and an analysis from July 2025 found nearly 8,000 titles released in the first half of that year had disclosed generative AI use, compared to roughly 1,000 for all of 2024. The disclosures remain voluntary, so actual usage is likely higher.
AI

Warhammer Maker Games Workshop Bans Its Staff From Using AI In Its Content or Designs 42

Games Workshop, the owner and operator of a number of hugely popular tabletop war games, including Warhammer 40,000 and Age of Sigmar, has banned the use of generative AI in its content and design processes. IGN reports: Delivering the UK company's impressive financial results, CEO Kevin Rountree addressed the issue of AI and how Games Workshop is handling it. He said GW staff are barred from using it to actually produce anything, but admitted a "few" senior managers are experimenting with it. Rountree said AI was "a very broad topic and to be honest I'm not an expert on it," then went on to lay down the company line:

"We do have a few senior managers that are [experts on AI]: none are that excited about it yet. We have agreed an internal policy to guide us all, which is currently very cautious e.g. we do not allow AI generated content or AI to be used in our design processes or its unauthorized use outside of GW including in any of our competitions. We also have to monitor and protect ourselves from a data compliance, security and governance perspective, the AI or machine learning engines seem to be automatically included on our phones or laptops whether we like it or not.

We are allowing those few senior managers to continue to be inquisitive about the technology. We have also agreed we will be maintaining a strong commitment to protect our intellectual property and respect our human creators. In the period reported, we continued to invest in our Warhammer Studio -- hiring more creatives in multiple disciplines from concepting and art to writing and sculpting. Talented and passionate individuals that make Warhammer the rich, evocative IP that our hobbyists and we all love."
Games

Meta Closes Three VR Studios As Part of Its Metaverse Cuts (uploadvr.com) 29

Meta is shutting down three acquired VR studios as part of Reality Labs layoffs and a strategic pivot away from VR content toward AI-powered smart glasses. UploadVR reports: Meta shut down Twisted Pixel Games (Deadpool VR), Sanzaru Games (Asgard's Wrath), and Armature Studio (Resident Evil 4 VR). [...] Twisted Pixel Games was founded in 2006 and mostly made Xbox games published by Microsoft for the first decade of its existence. In fact, Microsoft owned the studio from 2011 until 2015, when it became an independent company again. On contract from Facebook, between 2017 and 2019 Twisted Pixel released four VR games: Wilson's Hearth (Rift); B-Team (Go/Quest); Defector (Rift); and Path of the Warrior (Rift/Quest). In 2022, Twisted Pixel Games was acquired by Meta. And just two months ago, it released what it had been working on since then: Deadpool VR, the latest Quest-exclusive VR game. [...]

Sanzaru Games was also founded in 2006, and made a combination of its own games and contract titles for companies such as Sony, porting the original God of War series to PS Vita. Sanzaru Games was also contracted by Facebook to build VR games for the Oculus Rift and its Touch controllers, between 2016 and 2019: Ripcoil (2016); VR Sports Challenge (2016); Marvel Powers United VR (2018); and Asgard's Wrath (2019). In 2020, Sanzaru Games was acquired by Facebook, and in 2023 released Asgard's Wrath 2, taking the core essence of Asgard's Wrath to Quest 2 and Quest 3 standalone, with a semi-open world and a campaign more than 60 hours long. Exactly one year ago, Sanzaru released the last major content update for Asgard's Wrath 2, stating that it was now working on the "next big thing" with no detail released on what that would be before the studio closed.

Founded in 2008, Armature Studio was mainly a porting studio, bringing PC titles to consoles and console titles to PS Vita. Like Twisted Pixel and Sanzaru, Armature too was contracted by Facebook to build early consumer VR games: Fail Factory (2017); Sports Scramble (2019); and Resident Evil 4 VR (2021). Armature was acquired by Meta in 2022, and many VR gamers had been eagerly anticipating what it had been working on since. Whatever it was, Armature too is now shut down.

Linux

Linux Hit a New All-Time High for Steam Market Share in December (phoronix.com) 27

A year ago the Steam Survey showed a 2.29% marketshare for Linux. Last May it reached 2.69%, its highest level since 2018. November saw another all-time high of 3.2%.

But December brought a surprise, reports Phoronix: Back on the 1st Valve published the Steam Survey results for December 2025 and they put the Linux gaming marketshare at 3.19%, a 0.01% dip from November. But now the December results have been revised... [and] put the Linux marketshare at 3.58%, a 0.38% increase over November. Valve didn't publish any explanation for the revision but occasionally they do put out monthly revised data. This is easily an all-time high... both in percentage terms and surely in absolute terms too.
Canada

Ubisoft Closes Game Studio Where Workers Voted to Unionize Two Weeks Ago (aftermath.site) 151

Ubisoft announced Wednesday it will close its studio in Halifax, Nova Scotia — two weeks after 74% of its staff voted to unionize.

This means laying off the 71 people at the studio, reports the gaming news site Aftermath: [Communications Workers of America's Canadian affiliate, CWA Canada] said in a statement to Aftermath the union will "pursue every legal recourse to ensure that the rights of these workers are respected and not infringed in any way." The union said in a news release that it's illegal in Canada for companies to close businesses because of unionization. That's not necessarily what happened here, according to the news release, but the union is "demanding information from Ubisoft about the reason for the sudden decision to close."

"We will be looking for Ubisoft to show us that this had nothing to do with the employees joining a union," former Ubisoft Halifax programmer and bargaining committee member Jon Huffman said in a statement. "The workers, their families, the people of Nova Scotia, and all of us who love video games made in Canada, deserve nothing less...."

Before joining Ubisoft, the studio was best known for its work on the Rocksmith franchise; under Ubisoft, it focused squarely on mobile games.

Ubisoft Halifax was quickly removed from the Ubisoft website on Wednesday...

Windows

Latest SteamOS Beta Now Includes NTSYNC Kernel Driver (phoronix.com) 12

Valve has added the NTSYNC kernel driver to the SteamOS 3.7.20 beta, laying the groundwork for improved Windows game synchronization performance via Wine and Proton. Phoronix reports: For gearing up for that future Proton NTSYNC support, SteamOS 3.7.20 enables the NTSYNC kernel driver and loads the module by default. Most Linux distributions are at least already building the NTSYNC kernel module though there's been different efforts on how to handle ensuring it's loaded when needed. The presence of the NTSYC kernel driver is the main highlight of the SteamOS 3.7.20 beta now available for testing.
Games

SteamOS Continues Its Slow Spread Across the PC Gaming Landscape (arstechnica.com) 30

An anonymous reader quotes a report from Ars Technica: SteamOS's slow march across the Windows-dominated PC gaming landscape is continuing to creep along. At CES this week, Lenovo announced it will launch a version of last year's high-priced, high-powered Legion Go 2 handheld with Valve's gaming-focused, Linux-based OS pre-installed starting in June. And there are some intriguing signs from Valve that SteamOS could come to non-AMD devices in the not-too-distant future as well. [...] Valve has also been working behind the scenes to expand SteamOS's footprint beyond its own hardware. After rolling out the SteamOS Compatible software label last May, SteamOS version 3.7 offered support for manual installation on AMD-powered handhelds like the ROG Ally and the original Legion Go.

Even as SteamOS slowly spreads across the AMD-powered hardware landscape, the OS continues to be limited by a lack of compatibility with the wide world of Arm devices. That could change in the near future, though, as Valve's upcoming Steam Frame VR headset will sport a new version of SteamOS designed specifically for the headset's Arm-based hardware. [...] It's an especially exciting prospect when you consider the wide range of Arm-based Android gaming handhelds that currently exist across the price and performance spectrum. While emulators like Fex can technically let players access Steam games on those kinds of handhelds, official Arm support for SteamOS could lead to a veritable Cambrian explosion of hardware options with native SteamOS support.

[...] That's great news for fans of PC-based gaming handhelds, just as the announcement of Valve's Steam Machine will provide a convenient option for SteamOS access on the living room TV. For desktop PC gamers, though, rigs sporting Nvidia GPUs might remain the final frontier for SteamOS in the foreseeable future. "With Nvidia, the integration of open-source drivers is still quite nascent," [Valve's Pierre-Louis Griffais] told Frandroid about a year ago. "There's still a lot of work to be done on that front So it's a bit complicated to say that we're going to release this version when most people wouldn't have a good experience."

Games

Lego's Smart Brick Gives the Iconic Analog Toy a New Digital Brain (wired.com) 22

An anonymous reader quotes a report from Wired: At CES in Las Vegas today, Lego has unveiled its new Smart Play platform, aimed at taking its distinctly analog plastic blocks and figures into a new world of tech-powered interactive play -- but crucially one without any reliance on screens. Smart Play revolves around Lego's patented sensor- and tech-packed brick. It's the same size as a standard 2 x 4 Lego brick, but it is capable of connecting to compatible Smart Minifigures and Smart Tags and interacting with them in real time. By pairing these components, kids big and small can create context-appropriate sounds and light effects as they play with the Danish company's toys.

[...] Lego is claiming this Smart Play platform developed in house by the company's Creative Play Lab team in collaboration with Capgemini's Cambridge Consultants "features more than 20 patented world-firsts within its technology." The heart of the system is the Smart Brick's custom-made chip, measuring smaller than a standard Lego stud. Other elements crammed into the eight-stud brick are an LED light array, accelerometers, light sensors, and sound sensor, and even a miniature speaker. The internal battery will supposedly work even after years of inactivity, and to avoid any need for cable access to the Smart Brick once it's built into a beloved creation, Lego has also added wireless charging. Indeed, Lego has made a charging pad that will power up several Smart Bricks simultaneously.

That all-important brain chip is a 4.1-millimeter custom mixed-signal ASIC chip running a bespoke Play Engine, which interprets motion, orientation, and magnetic fields. A copper coil assembly enables the brick's tag recognition, while a proprietary "Brick-to-Brick position system" uses these coils to sense distance, direction, and orientation between multiple Smart Bricks. Moreover, Lego claims this use of multiple Smart Bricks creates a "self-organizing network" that requires no setup, no app, no central hub, nor external controllers -- and so no screens. A Bluetooth-based "BrickNet" protocol shares the data between the Smart Bricks.

Sounds are handled by a tiny analog synthesizer putting out real-time audio (thus minimizing memory load) via the brick's miniature speaker, which uses the brick's internal air spaces to amplify sound. As a result, the audio effects are apparently immediate and can be used to enhance play with real-time sound. Lego insists there are no prerecorded clips of lightsabers or other pieces of audio being used as a cheat. Just like the Smart Minifigs, the 2 x 2 studless tile tags trigger sounds, lights, or behaviors tied to where they are placed or how they are played with. They communicate with other components through near-field magnetic connections. Each tile has a unique digital ID, which is read by the brain brick, while the minifigures -- outwardly identical to standard minifigs -- carry their unique digital ID on an internal chip.

Handhelds

First Gaming Handheld With a Folding Screen (theverge.com) 3

One-Netbook has unveiled the OneXSugar Wallet, the first gaming handheld with a folding OLED display. The Verge reports: The OneXSugar Wallet was announced on China's Weibo yesterday, but with few details about its features and capabilities. That folding OLED screen has a resolution of 2480 x 1860 pixels, and the handheld will be powered by an unspecified "Qualcomm gaming platform flagship processor," but its performance and emulation capabilities are unknown.

Based on photos and a video released by One-Netbook, the OneXSugar Wallet will feature a standard set of controls including asymmetrical thumbsticks, four action buttons, and a D-pad situated on either side of the lower half of its display. There are also shoulder buttons and triggers on the back of the handheld, and a pair of front-facing speakers flanking the top half of the screen. The biggest question is how much will the handheld cost...

Games

GOG and CD Projekt Founder Acquires 100% Ownership of GOG (eurogamer.net) 10

Michal Kicinski, who co-founded both CD Projekt and the DRM-free digital games store GOG back in 2008, has acquired 100% ownership of GOG from CD Projekt, bringing the platform full circle to one of its original creators.

GOG was already operating as part of CD Projekt through its Sp.z.o.o. subsidiary, but Kicinski now takes complete control of the company. The platform will continue operating independently and maintain its commitment to DRM-free gaming. "The mission stays the same: Make Games Live Forever," GOG said in its announcement.

CD Projekt's joint CEO Michal Nowakowski said the parent company's focus on its development roadmap and franchise expansion made this the right time for the move. GOG has signed a distribution agreement ensuring all upcoming CD Projekt Red titles will release on the platform. Kicinski, describing himself as a "mature gamer" who plays classics, said he's personally involved in developing several retro-spirited games slated for GOG in 2026.
Canada

60 Game Workers Form First Ubisoft Union in North America (www.cbc.ca) 21

About 60 workers in Halifax, Nova Scotia have formed Ubisoft's first union in North America, reports the CBC (though its 17,000 employees include some unionized workforces in other parts of the world): T.J. Gillis, a senior server developer at Ubisoft Halifax, says he became increasingly concerned about the growth of artificial intelligence in the industry and after the closure of a Microsoft gaming studio in Halifax, Alpha Dog, in 2024. "We're seeing a ton of studios, especially larger studios, just letting people go with no unions or support, people were just being left to fend for themselves. Often times having to leave industry," said Gillis.

Gillis said he got into contact with CWA Canada to begin efforts to build a union with other colleagues... The union was formed six months after filing union certification and after 74 per cent of staff at Ubisoft Halifax voted to join CWA Canada... A spokesperson for Ubisoft said in a statement to CBC News that they "acknowledge the decision issued by the Nova Scotia Labour Board and reaffirm our commitment to maintaining full cooperation with the Board and union representatives."

Carmel Smyth is the president of CWA Canada and says she is already hearing from other employees at tech companies who want to follow Ubisoft Halifax's lead.

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