Introversion Software co-founder Mark Morris has spoken out against the Microsoft's expensive Xbox Live Arcade certification process. Morris, who helped Introversion make such hit games as Uplink, Darwinia, DEFCON, and Multiwinia, says that Microsoft has to make changes to the process and lower or eliminate its fees if it wants to continue to compete with services such as Steam.

Microsoft has changed its position on selling games rated "18" in the UK (under the PEGI system) via the Windows 8 marketplace. Previously the platform owner had made the decision by comparing the "adult" category used by the ESRB in North America - a category reserved for games with very strong sexual content or extreme violence.

Google's Motorola Mobility has withdrawn an earlier claim that Microsoft violated Wi-Fi patents it holds with its Xbox 360 console, according to this lengthy analysis from Foss Patents. The company filed a complaint with the International Trade Commission (ITC) earlier this year.

Microsoft has expanded its subsidized Xbox 360 offer to include bigger and better models, according to this updated Xbox.com product page. Microsoft will soon offer the 250GB Xbox 360 for $99 or $149 with Kinect. The two new options join the original 4GB with Kinect option, which remains $99. The catch (as has already widely been detailed) is that those who buy these cheaper models will be obligated to pay $14.99 a month for an Xbox Live Gold account for two years.

Microsoft announced that it has sold 70 million Xbox 360 consoles worldwide since it launched in November of 2005. The news was part of the company's first quarter 2013 financial results (July 2012 - Sept. 2012), which saw the Xbox division post total revenue of $1.95 billion, down 1 percent from the same period a year ago. During the quarter, Microsoft sold 1.7 million Xbox 360 consoles worldwide, down 600,000 units (29 percent) from the same period a year ago. Microsoft also said that Xbox Live gold memberships were up now at 40 million.

Microsoft has begun rolling out a new update to Xbox Live today that will add a plethora of new features and a better user interface, according to a post from Xbox Live's Larry Hyrb.

Microsoft has laid off an undisclosed number of employees at its Lionhead studio, following the completion of the studios' latest game, the Kinect-enabled Fable: The Journey. While the company did not disclose the exact number of employees now out of a job, they suggested that it was a little under ten percent of the studio's work force. Lionhead is located in Guildford, England.

Over the weekend pictures and forum threads started to illustrate that players had somehow gotten their hands on early copies of Halo 4 - which isn't set for release until November 6th. Microsoft was obviously not very pleased with this news and promised that it would conduct an investigation into the early leaks of the game and would do so in conjunction with law enforcement.

Microsoft has added a single line to its "Game Content Usage Rules" (found over in the community section of Xbox.com) that restricts gamers from earning money from videos that contain footage of Microsoft games like... every Halo game every made (thanks Rpad.tv). So if you are one of those YouTube stars with a large following that may have benefited from ad dollars, the party seems to be officially over for you...

Microsoft has apparently decided that it will not use Microsoft Points - the popular currency of the current Windows Marketplace and Xbox Live - in its upcoming Windows 8 Marketplace for software purchases. Instead it will simply use U.S. dollars or whatever the currency of choice is in different regions. In previous Windows 8 beta releases Microsoft used its Points system for all video purchases and rentals.

Free-to-play online games are non-existent on Xbox Live Arcade, but one of the very first is about to make its debut on Microsoft's platform next week. This is an important milestone because Sony - mostly through its subsidiary Sony Online Entertainment - has been offering several free-to-play games via the PlayStation Network.

That first Xbox Live Arcade free-to-play title is called Happy Wars and is being developed by Tokyo, Japan-based game developer Toylogic. The game will be available to all Xbox Live Gold member account holders for free beginning October 12.

Markus 'Notch' Persson, creator of Minecraft and co-founder of Mojang, decided to take to his blog today to respond to an editorial by games journalist John Callaham entitled "Notch: Don't be a hypocrite about Minecraft and Windows 8" over at Neowin.

The Bill & Melinda Gates Foundation has launched an educational Facebook app contest today with 30 prizes worth a grand total of $2.5 million. The 'College Knowledge Challenge' kicks off this week with an "edtech hackathon" at Facebook’s headquarters at 1 Hacker Way in Menlo Park.

The state of Rhode Island is auctioning off the remaining physical assets of 38 Studios including its computers, office furniture, audio equipment, consoles, televisions, conference call equipment, office telephones, security equipment and more. The assets are being sold off by auction site SJ Corio Company. The assets will be sold off in two different auctions: one to take place in Rhode Island on October 12 and another on October 23 in Maryland.

Mojang co-founder and Minecraft creator Markus Persson continues to voice disdain for Windows 8 because of its walled garden approach to gaming by instituting a closed marketplace for software. Persson took to Twitter today to complain about Microsoft after the platform holder asked his company to submit Minecraft for certification under Windows 8. Instead of cooperating with them, he took to Twitter with the following message:

Microsoft has hired former CBS Network Television Entertainment Group president Nancy Tellen to manage its digital entertainment properties. In her new role of president of Entertainment & Digital Media, Tellen will be in charge of launching "a newly created production studio in Los Angeles that will developer interactive and linear content for Xbox and other devices."

Here's a scary story from the BBC describing the nefarious goings-on at some PC manufacturers where malware is being installed on PC's on the production lines. The startling news comes from a new report from Microsoft.

Microsoft is looking to snap up some of OnLive's former employees, according to this report from GamesIndustry International. While the company was rumored to be interested in buying the cloud-based streaming game subscription service many moons ago, it looks like the Xbox 360 maker is picking the bones. The company is using EventBrite as its recruitment vehicle of choice, posting the following message:

Microsoft is hosting the Gaming and Giving for Good (or G3) Xbox LIVE charity event on August 18, 2012 to benefit Extra Life, the Children’s Miracle Network Hospitals fundraiser. By playing your favorite Xbox 360 games, you can help raise some much needed money for your local Children’s Miracle Network Hospital by gathering pledges for donations from friends and family. In support of the G3 event, Xbox LIVE is also offering a Free Gold Weekend to everyone on the weekend of August 18.

Microsoft is "working toward improvements" to community moderation on Xbox Live, according to a report on Polygon. The company is working towards more robust automated moderation tools, including algorithms that can reportedly detect repeat offenders and mute them automatically.

In a recent "Ask Me Anything" question and answer session with the Reddit community, Minecraft creator and Mojang founder Markus "Notch" Persson weighed in on Microsoft's upcoming operating system. His comments echo previous comments from Blizzard and Valve concerning the operating system's marketplace for software.

According to this Securities and Exchange Commission filings (SEC), Microsoft plans to launch its Surface tablet alongside Windows 8 in or around the month of October.

"The next version of our operating system, Windows 8, will be generally available on October 26, 2012. At that time, we will begin selling the Surface, a series of Microsoft-designed and manufactured hardware devices," the filing reads.

Valve Software's Gabe Newell isn't the only one that thinks Windows 8 is a "catastrophe" for game makers, apparently. Responding to Newell's speech made earlier this week at the Casual Connect game conference where he made some disparaging remarks about the upcoming operating system from Microsoft, Blizzard's executive vice president of game design Rob Pardo had similar words for Microsoft.

Microsoft has confirmed in a statement this morning that it has discontinued Microsoft Flight and a children’s game for Kinect called Project Columbia. As a result the company has also laid off some staff at its Vancouver, Canada-based studio. How many employees have been given the axe we do not know as of this writing. Earlier rumors indicated that Microsoft had shut the studio down altogether, but those rumors turned out to be false.

Speaking at the Casual Connect game conference this week, Valve CEO Gabe Newell described Microsoft's next Windows operating system, Windows 8, as a "catastrophe" for PC game developers. If that isn't an apocalyptic prophecy for gamers, I don't know what is.

In Episode 12 of Super Podcast Action Committee, Andrew Eisen and E. Zachary Knight discuss Fez developer Phil Fish's decision not to fix the patch for the game before re-releasing it to Xbox Live (because it costs too much money), Uniloc's patent infringement claims against Minecraft maker Mojang, last week's results from the GamePolitics poll, and the media trying to blame Batman comics, movies and games for the horrific Aurora, Colorado theater shooting.

Microsoft's entertainment and devices division did pretty well in the fourth quarter despite the company's overall performance delivering the first loss for the company since it went public in 1986. The company posted a net loss of $492 million for the quarter, despite posting record revenue of $18.06 billion.

Game publishers Zynga, Electronic Arts and Microsoft have signed an amicus brief ("friend of the court") asking the Ninth Circuit Court of Appeals to find parts of the Defense of Marriage Act (DOMA) unconstitutional. DOMA was signed into law on September 21, 1996 by President Bill Clinton after passing both houses of Congress by large majorities. The law was supported by both parties at the time. In 2011 President Barak Obama said that, while he would continue to enforce the law, his administration would no longer defend challenges to it in court.

One thing customers do not want to hear is something along the lines of "we can't do the right thing because it costs too much money." That is exactly what Fez developer Polytron has said about a broken patch that it plans to re-deploy for the game on Xbox Live. Polytron quickly yanked a patch it released earlier in the month because it corrupted some players' save game files.

In what could be considered taking a great stride towards the promise of Microsoft’s Smart Glass, the company has revealed that its My Xbox Live app is now fully compatible with Apple's iPad. Microsoft's app now provides the same capabilities that were added to other Apple devices last month including the iPhone and iPod touch.