A U.S. district judge "sentenced a Nintendo Switch hacker to 40 months in federal prison," reports the Independent: Gary Bowser, 52, is one of the leaders of the "Team Xecuter" hacker criminal enterprise, a notorious video game piracy gang, authorities said. The gang sold software to hack and download stolen games to various consoles. Besides the Nintendo Switch console, Team Xecuter also targeted the Nintendo 3DS, the Nintendo Entertainment System Classic Edition, the Sony PlayStation Classic and Microsoft's Xbox.

Bowser, a Canadian citizen, was the public face of the group and handled Team Xecuter's public relations and operated its websites. He was arrested in October 2020 in the Dominican Republic and extradited to the US to stand trial in New Jersey. He pleaded guilty in October 2021 to two criminal counts — conspiracy to circumvent technological measures and to traffic in circumvention devices, and trafficking in circumvention devices. As part of his plea deal, Bowser agreed to pay $4.5m in restitution to Nintendo.

Federal agents said that he caused a loss of about $65m (about £48m) to gaming companies.
"The hacking group was initially adamant that its hardware and software modifications that circumvented copyright protections were intended for homebrew application development, not to enable users to steal software..." notes Hot Hardware.

"Following the guilty plea, Bowser settled a civil lawsuit with Nintendo to the tune of $10 million, on top of the $4.5 million in restitution he already owed."

Japanese tech giant Sony revealed this week that it has trained the toughest-ever opponent for the race-car simulator Gran Turismo -- a champion that can beat top-class e-sports drivers at their own games. From a report: Forged on the battlegrounds of over 1,000 PlayStation 4 consoles, the AI racer-bot has grown smart enough to identify optimal course routes and can execute skilled tactical maneuvers to pass or block competitors, even in vehicular scrum. It does so with ruthless effectiveness -- while still respecting the human etiquette of the game, Sony claims. The company published research on its brainchild -- dubbed Gran Turismo Sophy -- in Nature journal this week. The development process paired "state-of-the-art, model-free, deep reinforcement learning algorithms with mixed-scenario training to learn an integrated control policy that combines exceptional speed with impressive tactics," it said. "In addition, we construct a reward function that enables the agent to be competitive while adhering to racing's important, but under-specified, sportsmanship rules."

In a media-broadcast demonstration, Sophy bested four of the world's top Gran Turismo drivers in head-to-head contests, proving the tech's superiority to mere mortals. But Sophy's aspiration was never to crush humanity's spirits or to leave it feeling defeated. On the contrary, it was meant to spark fresh excitement in e-sports, especially among elite players who felt they had no challenge left to answer. "I feel frustrated, that never happened before battling with an AI," Tomoaki Yamanaka, one of the four racers, said after the loss. "I drove like I would drive against a human. That's a really amazing thing."

Nintendo's latest financial report to investors, issued as an overview of its fiscal year's third quarter, came with a momentous announcement for the veteran video game and console producer: Switch has joined the 100 million-worldwide-sales club. From a report: What's more, Switch's current tally of 103.5 million means the device has leapfrogged over both the PlayStation 1 and Nintendo Wii in terms of sales. The count makes the Switch Nintendo's highest-selling home console of all time. While Sony's PS4 and PS2 console families continue to hold higher sales counts, neither got to the 100 million mark as quickly as Switch, which only needed 57 months to do so (March 2017 to December 2021). The only console family to get to the 100 million-global-sales mark faster is Nintendo's own portable DS platform, which needed only 51 months. The DS, which came out in 2004, launched at a lower $149 price point and went lower from there, while Switch has never sold for less than $199. In a statement to investors, Nintendo President Shuntaro Furukawa affirmed that the Switch console, as it nears its fifth anniversary, is "in the middle of its lifecycle." Furukawa said nearly the exact same thing a few months earlier when Switch crossed the 90 million-sales mark.

Sony Group is purchasing Bungie, the U.S. video game developer behind the popular Destiny franchise, for $3.6 billion to bolster its stable of game-making studios. From a report: The deal announced on Monday is the third significant video-game acquisition announced this month, following Microsoft's purchase of Activision Blizzard for $69 billion two weeks ago and Take Two Interactive snagging mobile game leader Zynga on Jan. 10. Buying Bungie will give Sony one of the most popular first-person shooter games to compete with the massive Call of Duty series, which Sony's main rival now owns through Activision.

An anonymous reader quotes a report from The Washington Post: With its $68.7 billion acquisition of mammoth embattled video game publisher Activision Blizzard, Microsoft will be taking on a lot. It will be absorbing a company criticized by its employees for its workplace culture, one that is embroiled in lawsuits alleging gender-based discrimination and sexual harassment. Microsoft will also be taking on game development studios that have inched closer to unionization over the past several months. But it will also be adding an element that newly minted CEO of Microsoft Gaming Phil Spencer sees as core to Microsoft's strategy for consumer acquisition: a slew of video games and long-abandoned franchises.

The games created by Activision Blizzard's developers provide the centerpiece of Microsoft's strategic thinking around the acquisition. The titles are some of the most popular in the world. And those Activision Blizzard properties extend well beyond Call of Duty, World of Warcraft and Candy Crush. In discussing some of the intellectual properties owned by Activision Blizzard, Spencer's excitement may have mirrored the enthusiasm of a "StarCraft" player noticing the long-dormant franchise's logo in Microsoft's acquisition announcement. "I was looking at the IP list, I mean, let's go!" Spencer said. " 'King's Quest,' 'Guitar Hero,' I should know this but I think they got 'HeXen.' " "HeXen," indeed an Activision Blizzard property, is a cult hit first-person game about using magic spells.

Microsoft's pending acquisition of Activision Blizzard also means owning the rights to many creations from gaming's past, including Crash Bandicoot, the original Sony PlayStation mascot. There's also the influential and popular Tony Hawk skateboard series and beloved characters like Spyro the Dragon. Toys for Bob, one of the studios working under the Activision Blizzard banner, successfully launched games like "Crash Bandicoot 4: It's About Time," but was later folded into supporting Call of Duty games. Spencer said the Xbox team will talk with developers about working on a variety of franchises from the Activision Blizzard vaults. "We're hoping that we'll be able to work with them when the deal closes to make sure we have resources to work on franchises that I love from my childhood, and that the teams really want to get," Spencer said. "I'm looking forward to these conversations. I really think it's about adding resources and increasing capability." Spencer said he's concerned about tech companies unfamiliar with the gaming industry barging in to the space, as opposed to the current, experienced competition against Nintendo and Sony. "They have a long history in video games," he said. "Nintendo's not going to do anything that damages gaming in the long run because that's the business they're in. Sony is the same and I trust them. [...] Valve's the same way. When we look at the other big tech competitors for Microsoft: Google has search and Chrome, Amazon has shopping, Facebook has social, all these large-scale consumer businesses. [...] The discussion we've had internally, where those things are important to those other tech companies for how many consumers they reach, gaming can be that for us."

He added: "I think we do have a unique point of view, which is not about how everything has to run on a single device or platform. That's been the real turning point for us looking at gaming as a consumer opportunity that could have similar impact on Microsoft that some of those other scale consumer businesses do for other big tech competitors. And it's been great to see the support we've had from the company and the board."

Sony said Thursday that it expected Microsoft to ensure that games from Activision Blizzard are available on non-Microsoft videogame platforms if Microsoft completes its proposed acquisition of Activision. From a report: "We expect that Microsoft will abide by contractual agreements and continue to ensure Activision games are multiplatform," a Sony spokesman said Thursday. Activision supplies some of the most popular games for Sony's PlayStation game console, including the Call of Duty series. After Microsoft on Tuesday announced its acquisition plan, some analysts raised the possibility that Activision games might be available exclusively for Microsoft's own Xbox console and its subscription videogame services in the future.

Samsung is significantly falling behind in the rush to bring augmented reality (AR) and virtual reality (VR) devices to market, partially due to the company's "obsession" with foldable smartphones, The Korea Herald reports. MacRumors reports: Samsung's main competitors, including Apple, Microsoft, Meta, and Sony, are developing or have already launched AR and VR devices amid massive industry-wide investments into the future of the technology, but it is unclear if Samsung is actively developing such devices at all. eBest Investment and Securities analyst Kim Gwang-soo said: "Big tech companies, rather than smartphone manufacturers, are leading XR devices because they have the necessary content and platforms. Google has an operating system Android, Microsoft has Xbox and Sony has PlayStation. It's risky for Samsung to roll out XR devices, so it has no choice but to stick to foldable smartphones."

The growth of Samsung's smartphone business has slowed down to just 0.9 percent year on year, but the company remains committed to the potential of foldable devices to reignite momentum. Samsung shareholders are said to be concerned by its perceived preoccupation with foldable devices, which is distracting the company's attention from the need to compete with future AR and VR devices from its main rivals.

Industry insiders claim that even if Samsung develops its own AR and VR devices, it lacks the content and platform to create a cohesive and compelling ecosystem. In an attempt to catch up in the race to make inroads into the AR and VR market, Samsung made a belated investment in DigiLens, a California startup that makes AR glasses. To stay relevant, market observers are warning that Samsung may need to find a partner that already has content or a platform in exchange for chip expertise, similar to the relationship between Qualcomm and Microsoft.

Earlier today, Microsoft announced it will buy the video game publisher Activision Blizzard in a $69 billion deal. It's the largest video game acquisition in history and will make Microsoft the world's third-largest gaming company by revenue, behind Tencent and Sony, when and if the deal closes. According to Insider, citing a report from the Wall Street Journal, Activision CEO Bobby Kotick is expected to leave the company once the deal closes. From the report: Those sources said that both Microsoft and Activision have agreed that Kotick "will depart once the deal closes," which could take anywhere from 12 to 18 months. That's in stark contrast to what Microsoft said in its press release on Tuesday morning. "Bobby Kotick will continue to serve as CEO of Activision Blizzard," the release said, "and he and his team will maintain their focus on driving efforts to further strengthen the company's culture and accelerate business growth. Once the deal closes, the Activision Blizzard business will report to Phil Spencer, CEO, Microsoft Gaming."

Kotick reportedly knew for years about a variety of claims of sexual harassment and rape at his company. An investigation by the Wall Street Journal detailed several specific examples of harassment and rape at Activision. Kotick was not only aware of those claims but, in a least one instance, reportedly intervened to keep a male staffer who was accused of sexual harassment despite the company's human resources department recommending he be fired.

Microsoft will buy the video game publisher Activision Blizzard in a $69 billion deal that would reshape the gaming landscape. From a report: The deal, if completed, would bring together Microsoft, which owns the Xbox game platform and the Xbox Game Studios (which owns Bethesda Softworks and 343 Industries, among other game publishers) and Activision, owner of the Call of Duty, Warcraft and Tony Hawk franchises, among others. Microsoft will become the world's third-largest gaming company by revenue, behind Tencent and Sony, when and if the deal closes.

The deal comes as Activision Blizzard grapples with its own #MeToo reckoning, spurring dueling investigations from the state of California and federal agencies. The company was accused of rampant sexual harassment and discrimination involving alcohol-fueled parties, male employees allegedly joking about rape, a female employee who died of suicide after colleagues shared a nude photo and a so-called "Cosby Suite" because the executive who worked there had earned a reputation for unwanted sexual advances.

"As part of their growing battle against popular open source software tool youtube-dl, three major music labels are now suing Uberspace, the company that currently hosts the official youtube-dl homepage," reports TorrentFreak: According to plaintiffs Sony, Universal and Warner, youtube-dl circumvents YouTube's "rolling cipher" technology, something a German court found to be illegal in 2017.... While the RIAA's effort to take down youtube-dl from GitHub grabbed all the headlines, moves had already been underway weeks before that in Germany. Law firm Rasch works with several major music industry players and it was on their behalf that cease-and-desist orders were sent to local hosting service Uberspace. The RIAA complained that the company was hosting the official youtube-dl website although the tool itself was hosted elsewhere.

"The software itself wasn't hosted on our systems anyway so, to be honest, I felt it to be quite ridiculous to involve us in this issue anyway — a lawyer specializing in IT laws should know better," Jonas Pasche from Uberspace said at the time.

In emailed correspondence today Uberspace informed TorrentFreak that, following the cease-and-desist in October 2020, three major music labels are now suing the company in Germany... According to the labels, youtube-dl poses a risk to their business and enables users to download their artists' copyrighted works by circumventing YouTube's technical measures. As a result, Uberspace should not be playing a part in the tool's operations by hosting its website if it does not wish to find itself liable too....

The alleged illegality of youtube-dl is indeed controversial. While YouTube's terms of service generally disallow downloading, in Germany there is the right to make a private copy, with local rights group GEMA collecting fees to compensate for just that. Equally, when users upload content to YouTube under a Creative Commons license, for example, they agree to others in the community making use of that content. "Even if YouTube doesn't provide video download functionality right out of the box, the videos are not provided with copy protection," says former EU MP Julia Reda from the Society for Freedom Rights (GFF) to NetzPolitik. "Not only does YouTube pay license fees for music, we all pay fees for the right to private copying in the form of the device fee, which is levied with every purchase of smartphones or storage media," says Reda.

"Despite this double payment, Sony, Universal and Warner Music want to prevent us from exercising our right to private copying by saving YouTube videos locally on the hard drive."

Microsoft has stopped manufacturing all Xbox One consoles. The software giant originally discontinued the Xbox One X and digital Xbox One S ahead of the Xbox Series X launch, then quietly stopped manufacturing the Xbox One S at the end of 2020, leaving retailers to sell out their remaining stock. From a report: "To focus on production of Xbox Series X / S, we stopped production for all Xbox One consoles by the end of 2020," says Cindy Walker, senior director of Xbox console product marketing, in a statement to The Verge. Microsoft's confirmation comes just as a Bloomberg report suggested Sony had planned to end PS4 production at the end of 2021, but that the company will now manufacture around a million PS4 consoles in 2022. Sony has confirmed PS4 production is still ongoing, amid struggles by both Microsoft and Sony to meet demand for their latest Xbox Series X and PS5 consoles.

Sony will continue producing PlayStation 4 consoles throughout 2022 as it navigates disruptions to the global supply chain that have limited output of its pricier PlayStation 5. Bloomberg reports: The Japanese conglomerate, whose flagship PS5 console has been in scarce supply since its debut in November 2020, told assembly partners late last year that it would continue making its earlier-generation machine through this year, according to people familiar with the matter. While Sony never officially announced when it would stop making the PS4, it had previously planned to discontinue assembly at the end of 2021, they said, asking not to be named as the plans are not public.

The strategy would add about a million PS4 units this year to help offset some of the pressure on the company's PS5 production, a figure that will be adjusted in response to demand, the people said. The older console uses less advanced chips, is simpler to make and provides a budget-friendly alternative to the PS5. Increasing production orders by adding the cheaper-to-make PS4 would also give Sony more leeway when negotiating with manufacturing partners for a better deal, two of the people said.

Days after detailing the technical specs of the PS VR2, Sony has updated the details of a patent to include language that says would "allow players to scan real-world items into virtual reality, making anything interactive in the VR space," reports Game Rant. From the report: This patent isn't actually anything new as Sony filed it on June 23, 2021, however, the patent office took issue with some of its claims requiring the tech giant to rework some details and resubmit. It would seem that, as of yesterday, Sony and the patent office have begun moving forward with the process following updates and revisions by Sony. [...] According to the patent mock-up, it seems as if players will be able to scan larger items than the handheld ones featured in the banana patent such as full-sized lamps. The only caveat seems to be that players will need to be able to have a 360-degree view of the item in order to bring it into the digital world. As the report notes, the patent is still being processed so we "shouldn't expect this tech to be featured in games any time soon."

At CES in Las Vegas this evening, Sony's Chairman, President and CEO Kenichiro Yoshida showed off a brand new prototype of its Vision S concept electric car, and announced that the Sony Group is starting a new division -- the Sony Mobility Inc -- which will start commercializing its electric vehicles. TechCrunch reports: On the CES stage during the Sony press conference, the company showed off its existing Sony Vision-S sedan, which was revealed at CES last year. This year, it also flexed a new model in the lineup, the Sony Vision-S SUV prototype. "The excitement we received after we showed off the Vision-S really encouraged us to further consider how we can bring creativity and technology to change the experience of moving from one place to another," said Yoshida, before revealing the new Vision-S SUV prototype. "This is our new Vision-S SUV. Vision-S has been developed on a foundation of safety, adaptability and entertainment. Safety has been our No. 1 priority in creating a comfortable mobility experience. That has not changed when building this SUV. A total of 40 sensors are installed inside and outside of the vehicle to monitor safety.

"In terms of adaptability, we have connectivity that enables us to build a vehicle that continuously evolves. It also makes it possible to personalize the cabin for each user. With 5G, it enables high speed, high capacity and low-latency connectivity between the in-vehicle system and the cloud. The Vision-S also evolves mobility as an entertainment space," said Yoshida. "The Vision-S also evolves mobility as an entertainment space, including gaming experience and audio. We have learned more about mobility through our exploration of Vision-S and through our partners who have supported this effort." There's been a lot of EV announcements today. Not only did GM reveal an electric version of the Chevy Silverado, but Chrysler announced plans to go all-electric by 2028, starting with the Airflow, "a concept crossover that appears to be close to ready for production," reports Ars Technica.

BMW also unveiled color-changing paint for its vehicles that relies on the E-ink electronic paper technology found in e-readers like the Kindle.

Sony has announced some basic information about its much-anticipated next-generation VR hardware for the PS5, which it calls -- predictably -- PSVR2. Little was revealed about the device beyond its basic specs but it did confirm some features gamers will care about. From a report: The original PSVR was a competent, relatively affordable, easy to use device but fairly limited in terms of hardware: resolution, field of view and such. So Sony's announcement that the new one will be considerably more advanced will be very welcome. The PSVR2 was confirmed by Sony to have 4K HDR imagery, 2000x2040 per eye, and the field of view will also be wider than the original hardware at 110 degrees. A blog post that appeared after the live announcement confirmed rumors that it uses OLED and will have a 90-120Hz refresh rate. It will however feature eye-tracking and foveated rendering, must-haves these days. Eye-tracking for obvious gameplay and other reasons, and foveated rendering so that the notoriously resource-hungry VR rendering process can focus its cycles on the area where the player is looking.

Apple's mixed reality headset that's set to launch in 2022 will be equipped with three displays, according to a research report shared today by display analyst Ross Young. MacRumors reports: The display configuration will include two micro OLED displays along with one AMOLED panel, with Sony set to supply the micro OLED displays that Apple will use. The micro OLED displays will be the main displays for the headset, but it's not yet known just what the AMOLED display will be used for. Modern VR headsets don't use AMOLED technology because the pixel density is too low, so it's possible that Apple is going to add it for low-resolution peripheral vision.

Sony recently showed off a 4K display with 4000 pixels per inch designed for use with VR headsets, and the report suggests that it's possible Sony developed this display specifically for Apple. If Apple is indeed using this Sony technology, an assumed array of 4000 x 4000 pixels indicates the display for the headset will measure in at 1.4 inches diagonally. This kind of advanced display configuration will come at a "high price," and Young suggests that the headset will cost several thousand dollars, which is in line with previous reports that have indicated a price of around $3,000.

Popcorn Time, the once-popular app that made watching pirated movies and television shows almost as easy as using Netflix, has shut down. Bloomberg News: The app debuted in 2014 and within a year became one of the most popular services for accessing illegal video content. Popcorn Time's creators deserted the service shortly after its introduction, and emails released after a hack of Sony Group indicated law enforcement may have played a role. But the app's code was open-source, and other developers jumped in to release new versions. In 2015, a developer associated with Popcorn Time told Bloomberg that the service wasn't responsible for piracy because it didn't host any stolen material itself. The software instead offered a link to computers around the world hosting the content through the file-sharing system BitTorrent. "The torrent world was here with millions of users way before us and will be here with BILLIONS of users way after us," he said at the time.

Sony is setting some pretty grand expectations with its 2022 TV lineup -- led by the introduction of the world's first consumer QD-OLED TV. From a report: The company's current and well-regarded OLED sets use panels from LG Display that are tuned with Sony's own processing. But the new flagship Bravia XR A95K TV will include a QD-OLED (quantum dot organic light emitting diode) panel manufactured by none other than Samsung Display. It'll come in 65-inch and 55-inch sizes, with both coming in at 4K resolution. It was rumored that Samsung Electronics might announce a QD-OLED 4K TV at CES 2022, but that hasn't panned out so far. So it's Sony that gets the prime spotlight instead. Samsung Display has been developing QD-OLED for a number of years, and the display technology could become something of a middle step between standard OLED and the MicroLED displays that only Samsung is selling right now -- for ungodly sums of money. QD-OLED is designed to combine the best traits of OLED (perfect blacks, infinite contrast, etc.) with benefits of quantum dot LED TVs like improved brightness and more vivid color reproduction at higher brightness levels. It's not a major new approach like Micro LED, but more of a progression from where things have stood for a few years.

David Bowie's estate has sold his entire songwriting catalog to Warner Music, including classics like "Space Oddity," "Let's Dance" and "Heroes," in the latest blockbuster deal for music rights. The New York Times reports: Warner's music publishing division, Warner Chappell, announced the agreement on Monday, saying that it encompassed Bowie's entire corpus as a songwriter, from the material on his 1967 debut album, "David Bowie," to his final album, "Blackstar," released just before Bowie's death in 2016 at age 69. The deal, for more than 400 songs, also includes soundtrack music; the material for Bowie's short-lived band Tin Machine from the late 1980s and early '90s; and other works. The price of the transaction was not disclosed, but is estimated at about $250 million. "These are not only extraordinary songs, but milestones that have changed the course of modern music forever," Guy Moot, the chief executive of Warner Chappell, said in a statement. David Bowie, the so-called "most wired rock star on the planet," has been featured in a number of Slashdot stories over the years.

In 2002, Bowie talked about his new album, distribution deal with Sony, and how he's "fully confident that copyright, for instance, will no longer exist in 10 years, and authorship and intellectual property is in for such a bashing."

In the late 90s, Bowie advocated for MP3s, telling The Guardian that they "could change the entire idea of what music is -- and that isn't so bad." Years later, he seemed to agree that concert ticket prices needed to increase to offset the rise in P2P file sharing and illegal downloads.

The United States has taken legal action to seize and return over $154 million purportedly stolen from Sony Life Insurance Company Ltd, a SONY subsidiary, by an employee in a textbook business email compromise (BEC) attack. BleepingComputer reports: "According to the government's complaint, Rei Ishii, an employee of Sony Life Insurance Company Ltd. ("Sony Life") in Tokyo, allegedly diverted the $154 million when the company attempted to transfer funds between its financial accounts," the Justice Dept said today. "Ishii allegedly did this by falsifying transaction instructions, which caused the funds to be transferred to an account that Ishii controlled at a bank in La Jolla, California."

According to court documents, Ishii switched the transfer address for a Sony Life transaction to use a Silvergate Bank account under his control. Ishii later converted the stolen funds into more than 3879 bitcoins via A Coinbase set up to automatically transfer all added funds to an offline cryptocurrency cold wallet [...]. After converting the money to cryptocurrency, Ishii also tried persuading his supervisor and several Sony Life executives not to help investigators by emailing them a ransom note typed in English and Japanese. "If you accept the settlement, we will return the funds back. If you are going to file criminal charges, it will be impossible to recover the funds," the note read. "We might go down behind all of this, but one thing is for sure, you are going to be right there next to us. We strongly recommend to stop communicate (sic) with any third parties including law enforcement."

However, on December 1, following an investigation in collaboration with Japanese law enforcement authorities, the FBI seized the 3879.16242937 BTC in Ishii's wallet after obtaining the private key, which made it possible to transfer all the bitcoins to the FBI's bitcoin wallet. [...] Tokyo's Metropolitan Police Department arrested the 32-year-old Ishii the same day and criminally charged him on suspicion of obtaining $154 million dollars following fraudulent money transfers from mid-May.