Yesterday marked the first evidence of a serious PC gaming strategy from Microsoft.

With the release of a new Games for Windows Live interface, the announcement of an upcoming DLC-focused Marketplace, and the mention of plans to bring full PC digital distribution to the service, the Xbox guys have finally given us a reason to take a hard look at their PC philosophy.

Conveniently, I had the chance to sit down and throw a number of questions at Games for Windows general manager Chris Early and marketing manager Michael Wolf.

How is this new Marketplace going to work? What kind of cut is Microsoft getting on sales? What does it mean when a game is a Games for Windows Live exclusive? What does all of this mean for Windows 7? Find out the answers to these questions and more inside the fold.

Chris Early: I know that when we launched Games for Windows Live, you could play PC to PC free, but if you wanted to play with Xbox [users] you had to pay $50 to do that. Now was that smart in retrospect, when we listen? No. So we corrected it. Now would it have been better if we had been smart enough to think of that in advance? Yes. But fortunately we had plenty of helpful players who helped "guide" us there. [laughs] Read on..

Mark my words: today is the day Microsoft got serious on the PC.

While conducting an interview with Games for Windows Live general manager Chris Early--in which he confirmed that Microsoft will be adding full games to its PC digital distribution network in the future--I was able to check out the just-launched redesign of the GFW Live interface, as well as the upcoming GFW Live Marketplace application.

I came away from the meeting a little stunned, and found myself preparing to finally witness some healthy competition for our digital PC dollars.

The new in-game Games for Windows Live interface (pictured above) is a significant leap forward for Microsoft. It does everything you'd expect--displays your Gamerscore, provides a friends list, and allows for private messages and chat--but is now far more effective. It's a minimalist, PC-centric approach compared to the bloated, console-derived initial iteration.

But while the new interface is the kind of necessary, late-to-the-party update we've come to expect from the Games for Windows program, the upcoming Marketplace is far more interesting, serving as the strong opening salvo of an invasion into Valve's largely unchallenged digital distribution territory. ... Read more

Splash Damage founder Paul Wedgwood finds a discrepancy between the depth of PC and console games, and he finds it rather appalling.

"This is not to dismiss what people have achieved in the past, but Halo 3 multiplayer is really Quake 3 from 1999. Even Call of Duty 4 is just Counter-Strike on the PC from 2001," said the long-time PC fan to Edge.

"That's not because the [console] audience is dumb," Wedgwood clarified. "What a ridiculous thing to say, that because someone has a console controller in their hand, they're somehow less intelligent than a PC player," he added.

Splash Damage, like its long-time partner id Software, is transitioning to focusing primarily console games for its next project. But Wedgwood dismissed notions... Read more

Speaking in an interview with Shacknews, Games for Windows Live general manager Chris Early confirmed that Microsoft has definite plans to distribute full PC titles through its Marketplace application in the future.

"Clearly it's on our road map," said Early when asked about the digital distribution of full titles.

Entering the realm of PC digital distribution will put Microsoft into direct competition with Steam developer Valve.

Microsoft today released a new Games for Windows Live update, which improves the interface. A separate update will arrive in two to three weeks, adding support for video, demos, and DLC downloads through a Marketplace application.

Steam currently features no priced DLC, a fact which Microsoft hopes to exploit with both publishers and customers by rolling out DLC support ahead of full distribution. For instance, though Games for Windows Live exclusivity does not preclude the titles such as Fallout 3 from being sold on Steam, Fallout 3's DLC will only be available on Microsoft's GFW Live Marketplace.

A portion of the interview follows. Check back tomorrow for the full article, including details on Microsoft's plans for game support in Windows 7. ... Read more

A new screenshot from a recent build of the next Windows shows that developer Microsoft is planning to incorporate more robust PC gaming functionality into its operating software.

According to an image from ThinkNext, the games startup menu in the current build of Windows 7 includes an option to automatically alert users to updates for PC games. An option box to allow Windows to auto-download "information and news about games and game providers" is also shown.

Windows 7 is expected to be released in January 2010.

Retailer GameStop has announced that its sales of retail PC games has declined compared to the previous year, according to Gamasutra.

While GameStop senior vice president Bob McKenzie noted that the decline was expected, the low number of new PC titles released this year apparently caught the company by surprise.

"The number of new titles we have on PC is down probably more than what I had anticipated it would be down," said McKenzie. "But I don't see that as a threat or a signaling. We're not backing away from it at all."

McKenzie still characterized the PC market as "very alive," and revealed that the company is experimenting with better ways to present PC games in its stores.

"We've taken a lot of the PC games where we kind of had them on a gondola, from a space perspective," he said. "But we've just realized, this is too important of a category, so we've put a lot of them up on the wall again where there's stronger representation in our stores."

As far as digital distribution, McKenzie did not comment on whether services like Steam are directly cutting into its share of the PC market, instead stressing that GameStop also offers digital downloads of many PC titles.

"[Digital distribution] is growing, but we're also growing with it," he added. "We offer digital downloads on PC, especially, through GameStop.com, we see that continuing to be a market that will continue to grow, obviously."

Stardock CEO Brad Wardell made headlines recently with the debut of the "Gamer's Bill of Rights," a ten-point plan to revitalize PC gaming that he developed in conjunction with Gas Powered Games CEO Chris Taylor.

Always honest and never shy, Wardell has gained a reputation as an outspoken critic of many conventional responses to the problems facing the PC platform. Following the announcement, I caught up with him for a lengthy interview, covering everything from the Bill's conception to his controversial views on piracy.

Have any companies signed on to the Bill of Rights yet? What is his answer to charges of setting unrealistic goals in the interest of a publicity stunt? What does he have to say about Crysis developer Crytek's conservative stance on piracy? Does the Sins of a Solar Empire publisher read the Shacknews comments? Look inside for the answers to these, and many other questions.

The example I usually hear is that a game comes out for the PC, and it sold five gazillion copies on consoles, and on the PC it only sold a tiny number. Well first of all, if piracy was the cause of it, if piracy is so rampant on the PC, then why are the console numbers still high? If game X comes out for Xbox 360 and the PC, and piracy is the scourge, then why wouldn't it also affect the Xbox 360 sales? I mean, what's the percentage of Xbox 360 owners that don't own a PC? So that begs the question, I mean you can do a Shack survey: how many Xbox 360 owners do not own a decent PC? Read more..

Though many celebrate consoles for bringing video games into the mainstream, developer Lorne Lanning believes that consoles are holding the industry back due to rising development costs.

"I think the consoles are a problem," he told GameDaily BIZ. "Years ago I was excited about consoles, but anything that makes development more expensive, rather than better, faster, cheaper, I think is a step backwards."

The creator of console titles such as Oddworld: Abe's Oddysee (PC, PSX) and Oddworld: Stranger's Wrath (Xbox), Lanning sees the PC market as more exciting because the platform allows "for more smaller games to be sold that can be delivered to anyone who's connected at much lower price points."

He added: "There's a big difference between spending $50 or $60 on a game and hoping I love it and buying a game for $5 and then buying additional content for that game, so by the time I have invested $50 in it I really love it and I've personalized it a lot more to what I'm interested in."

Curiously, Lanning makes no mention of the cheap downloadable games that are available to PlayStation 3, Xbox 360 and Nintendo Wii owners. While full-fledged console titles are usually priced between $40 and $60, downloadable releases are typically priced between $5 and $15, with more content often available post-release.

Over 4 million of China's youth are addicted to what the state deems "unhealthy" online games, claims a Chinese lawmaker.

The 4 million represent ten percent of Chinese internet users under 18, according to the AFP. The term "unhealthy games" could refer to any number online games including Blizzard's World of Warcraft, which boasts millions of subscribers in China. The same games were called "spiritual opium" by another Chinese lawmaker earlier this year.

In the announcement, the Chinese government calls for hard-coded time limits in games and stricter content monitoring in games. Previously, the government has tried a number of methods to curb internet addiction, including cybercafe age and time limits.

As some predict that digital sales and downloads of video games will soon render traditional retailers obsolete, Electronic Arts European publishing manager Jes Uwe Intat doesn't think that retailers will disappear across the next twenty years.

"I think there will still be a need for a physical distribution starter, and then services and additional content can be distributed online," he told GamesIndustry.biz.

That firm belief, Intat noted, comes from the ever-expanding size of games.

"We used to be below 1 GB, but we're now building games that have 8, 9, 10 GB--and if broadband distribution is going to allow 10 GB to be distributed in half... Read more

Internet provider Comcast has announced that it will limit residential cable internet bandwidth to 250GB per month starting October 1st.

The plan, according to The Channel Wire and SFGate, does not specify a charge for going over that 250GB cap, but will have Comcast notifing customers of overages and terminating the accounts of repeat offenders.

Comcast claims that median high-speed internet use in the United States is 2 to 3GB per month, making the 250GB limit generous in most cases, but the cap looms over gamers who consume increasing amounts of bandwidth to use digital distribution services ranging from Valve's Steam, to iTunes, Netflix, Xbox Live, and the PlayStation Network.

For example, a single high-definition movie download from the Xbox Live Marketplace ... Read more

In an effort to create standards for PC games and increase consumer confidence, publisher Stardock and Demigod developer Gas Powered Games today unveiled a document titled "The Gamer's Bill of Rights."

"As an industry, we need to begin setting some basic, common sense standards that reward PC gamers for purchasing our games," explained Stardock CEO Brad Wardell. "On the PC, publishers can release games that are scarcely completed, poorly supported, and full of intrusive copy protection."

The Gamer's Bill of Rights
We the Gamers of the world, in order to ensure a more enjoyable experience, establish equality between players and publishers, and promote the general welfare of our industry hereby call for the following:

1. Gamers shall have the right to return games that don't work with their computers for a full refund.
2. Gamers shall have the right to demand that games be released in a finished state.
3. Gamers shall have the right to expect meaningful updates after a game's release.
4. Gamers shall have the right to demand that download managers and updaters not force themselves to run or be forced to load in order to play a game.
5. Gamers shall have the right to expect that the minimum... Read more

Chris Taylor, designer of classic PC real-time strategy game Total Annihilation and president of Gas Powered Games, thinks that the PC isn't dead, but rather is repositioning itself as a different kind of gaming platform.

"We've pushed the limits of high system requirements, and I think the rate at which people are buying crazy new hardware has slowed," he commented to Gamasutra. "I think we've come out of that turbulent ten years," referring to the ten years since the advent of graphics acceleration hardware in games and its rapid progress since.

Demigod, Gas Powered Games' upcoming RPG

The next Gas Powered Game, Demigod, aims to respect the idea that most game-capable PCs are not high-end. ... Read more

Games market research group NPD Group has released its composite list of the 20 best-selling PC games across July. As a reminder of its chart-topping run a few weeks ago, Nancy Drew: The Phantom of Venice took the number-one slot for July, coming in ahead of chart regulars The Sims and World of Warcraft.

Call of Duty 4 fell out of the top ten last month, leaving the rest of the charts to be mostly filled by the usual suspects. Blizzard, aside from raking its usual piles of profit from World of Warcraft, brought Diablo back into the charts following the hype for the coming release of Diablo 3.

Note that these numbers only represent sales in the United States.

1. Nancy Drew: The Phantom of Venice / Her Interactive / $19 (Average)
2. The Sims 2 Double Deluxe / EA Maxis / $30 (Average)
3. Spore Creature Creator / EA Maxis / $10 (Average)
4. World of Warcraft: Battle Chest / Blizzard / $38 (Average)
5. The Sims 2 IKEA Home Stuff Expansion Pack / EA Maxis / $19 (Average)
6. Diablo Battle Chest / Blizzard / $39 (Average)
7. World of Warcraft / Blizzard / $20 (Average)
8. World of Warcraft: Burning Crusade Expansion Pack / Blizzard / $28 (Average)
9. The Sims 2 FreeTime Expansion Pack / EA Maxis / $30 (Average)
10. Warcraft III Battle Chest / Blizzard / $40 (Average) ... Read more

Following the announcement that several game companies are filing suit against PC video game pirates, former Microsoft VP and current EA Sports head Peter Moore said that he expects the measures to be ineffective toward thwarting further file sharing.

"It didn't work for the music industry," said Moore to Eurogamer. "I'm not a huge fan of trying to punish your consumer."

Atari, Codemasters, Reality Pump, Topware Interactive and Techland have hired law firm Davenport Lyons to file suit against 25,000 file sharers on their behalf. The lawsuits demand the pirates pay GBP 300 (US $557), or face trial.

While Moore recognizes that constructive solutions to piracy are scarce, he would rather the industry look for some than run to the courts.

"Albeit these people have clearly stolen intellectual property," he continued, "I think there are better ways of resolving this within our power as developers and publishers."

Several EA Sports games, including Madden 2009, did not see PC releases this year, with Moore citing "serious business challenges" as the reason. Moore has said that the franchises will return to the platform next year, but bolstered with "meaningful" online connectivity.

"I think there are better solutions than chasing people for money," added Moore. "I'm not sure what they are, other than to build game experiences that make it more difficult for there to be any value in pirating games."

London's Patents County Court has ordered an unidentified woman to pay nearly $30,000 in fines to Topware Interactive for illegally sharing one of the studio's games online, according to a Telegraph report spotted by MCV.

The woman, who is among the first to be sued for copyright violation in the United Kingdom by a game company, was fined damages of £6086.56 ($11,325) and costs and disbursements of £10,000 ($18,607) for distributing Topware's Dream Pinball 3D.

The ruling establishes a strong precedent for further action against copyright violators. London law firm Davenport Lyons, which represents Topware Interactive, is also pursuing civil proceedings against 100 people suspected of illegally uploading copyrighted software.

"Illegal file-sharing is a very serious issue resulting in millions of pounds of losses to copyright owners," said Davenport Lyons senior partner David Gore. "As downloading speeds and internet penetration increase, this continues to be a ... Read more

The recently formed PC Gaming Alliance industry consortium today unveiled the initial results from its first Horizons Report, highlighting what PCGA president Randy Stude refers to as "incredible growth in online PC Gaming."

According to the report, PC gaming was a $10.7 billion industry in 2007, with sales from digital distribution nearing $2 billion and in-game and web advertising bringing in $800 million. Online PC gaming brought in $4.8 billion, almost double that of retail PC sales.

"Our analysis clearly shows incredible growth in online PC gaming, proof that this industry is far stronger than anyone has reported," explained Stude. "Today's consumers shop where they live--online."

Overall, the study found that growth was driven by online revenue from Asia, which accounted for almost half of the total worldwide sales, and noted that revenues are expected to grow as developers embrace online distribution and other opportunities.

"By pioneering new business models, the PC has quietly remained the single leading platform for games, not only in terms of consumer usage, but revenue generation," commented DFC Intelligence analyst David Cole. "The most fascinating thing about PC gaming is its ability to attract such a diverse audience, both demographically and geographically."

Some 70% of professionals in the game development industry are currently at work on games for the PC, according to survey data presented by Game Developer Research.

The survey sampled 2,000 game development professionals from North America and elsewhere, in which 70% of participants said that they were currently developing titles bound for PC and Mac. 43% are creating games for consoles and 28% for web-based platforms, while just 16% of those sampled working on titles for handheld platforms.

Among the console developers, 73% of those responding to the survey are working on titles for the Xbox 360, followed by 58%—which includes some of those same Xbox 360 developers—working on PlayStation 3. 42% of participants reported work on the Wii, while 15% are creating games for the PlayStation 2.

Within those developers working on handheld platforms, the Nintendo DS held the lion's share of the raw numbers with 75% of the developers working on the system. 45% reported development on the PSP.

While ATI launches new hardware, rival Nvidia today released a new set of drivers that adds support for AGEIA's PhysX physics acceleration technology to the existing GeForce 8, GeForce 9, and GeForce GTX 200-series cards.

The new drivers are part of the free GeForce Power Pack, which also contains a PhysX-enabling mod for Epic's Unreal Tournament 3, the full version of NetDevil's physics-heavy title Warmonger, and a few tech demos, including a fluid simulation.

In addition, the drivers add PhysX support for the PC version of GRIN and Ubisoft Paris' Ghost Recon Advanced Warfighter 2. The functionality comes after Nvidia announced plans to acquire AGEIA earlier this year, with many developers since pledging support.

Left, Warmonger. Right, Unreal Tournament 3.

"Seeing really is believing and is the reason why we compiled all of this great PhysX content into a free download," commented GeForce GPU general manager Ujesh Desai. "We can't wait for our customers to jump in, get wet, and tell... Read more

Hardware manufacturer ATI has launched the ATI Radeon HD 4870 X2, which it boasts as "the fastest and most powerful graphics card available today." That statement, ATI explained, is based on the card's "extreme top score of 6920" in the 3DMark Vantage v.101 benchmarking tool.

The dual-GPU card packs two HD 4800 graphic chips, said to provide "2.4 teraFLOPS of GPU power," and 2GB of GDDR5 memory. To illustrate the card's performance, ATI provided the above benchmarks, comparing the HD 4870 X2 to rival Nvidia's GTX 280.

At present, the HD 4870 X2 is only available from online system builders such as Alienware and Falcon Northwest, carrying a suggested price of $549, with the card expected to hit retailers shortly.

A pared-down version that sports 1GB of GDDR3 memory, dubbed the Radeon HD 4850 X2, is slated to hit in September for around $399, according to TechReport.

Complete details on 4870 X2 and the benchmark machine follow... Read more