Don't worry, Valve still plans to launch the Steam Machine "this year"

Valve quickly reconfirmed that it plans to ship the Steam Machine and other recently announced hardware products "this year," after an official blog post late last week set off some worried speculation about possible delays.

While Steam's 2025 Year in Review mainly focused on new Steam tools and features released last year, the introductory section focused on the company's previously announced upcoming hardware plans. However, when that Year in Review post was first published Friday afternoon, it included a surprisingly vague line saying "we hope to ship in 2026, but as we shared recently, memory and storage shortages have created challenges for us." (Emphasis added.)

As stray chatter about that stray line started to filter through message boards and comment threads, Valve quickly issued a clarification. By late Friday, the blog post had been updated to note that, despite the global supply chain challenges, "we will be shipping all three products this year. More updates will be shared as we finalize our plans." (Emphasis added.)

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“It doesn't feel safe”—Many international game developers plan to skip GDC in US

This week, tens of thousands of game developers and producers will once again gather in San Francisco, as they have since 1988, for the weeklong Game Developers Conference. But this year’s show will be missing many international developers who say they no longer feel comfortable traveling to the United States to attend, no matter how relevant the show is to their work and careers.

Dozens of those developers who spoke to Ars in recent months say they’re wary of traveling to a country that has shown a callous disregard for—or outright hostility toward—the safety of international travelers. That’s especially true for developers from various minority groups, those with transgender identities, and those who feel they could be targeted for outspoken political beliefs.

“I honestly don't know anyone who is not from the US who is planning on going to the next GDC,” Godot Foundation Executive Director Emilio Coppola, who’s based in Spain, told Ars. “We never felt super safe, but now we are not willing to risk it.”

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Which of these two arcades is the "world largest"—and does it matter?

In New Hampshire, just off the western shore of the vacation destination Lake Winnipesaukee, there's a town called Laconia. With a population somewhere south of 17,000, it's barely a blip on a map—except on Bike Week, when around 300,000 motorcyclists swarm the place. On the other, quieter weeks of the year, Laconia is best known as the unlikely home of Funspot, the world's largest arcade.

Meanwhile, in Brookfield, Illinois, about 45 minutes west of Chicago and the shores of Lake Michigan, you'll find Galloping Ghost Arcade, a sprawling suburban palace with a nondescript exterior hiding a mind-blowing collection. With over 1,000 arcade cabinets (plus a further 46 pinball machines), Galloping Ghost is the world's largest arcade.

Yes, there are two arcades in the US labeled as the world's largest, and while that may seem a bit paradoxical, a visit to both proves that while only one can be the biggest, both are the greatest.

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MS exec: Microsoft's next console will play "Xbox and PC games"

Last summer, we here at Ars made the argument that the company's next Xbox console should give up the walled garden approach and just run Windows already. Now, newly named Microsoft Executive Vice President for Gaming Asha Sharma has strongly hinted that this is indeed the direction Microsoft is going, saying its next-generation console will "play your Xbox and PC games."

In a social media post Thursday afternoon, Sharma said that "our commitment to the return of Xbox" would include a new console codenamed Project Helix that "will lead in performance and play your Xbox and PC games." Sharma said she would be discussing that commitment and that console itself with developers and partners at her first Game Developers Conference next week.

Sharma's statement leaves a little wiggle room for Project Helix to be something other than a full-fledged Windows-based living room gaming box. The coming console's access to PC games could be limited to Microsoft's existing streaming solution via PC Game Pass, for instance, or to games designed for Microsoft's own Xbox-branded PC SDK and the PC Xbox app.

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After a rocky six years, Sony cancels future single-player PC game releases

Sony no longer plans to bring current and future single-player games to personal computers, according to Bloomberg. The report specifically names last year's Ghost of Yotei and the soon-to-be-released Returnal successor, Saros, as games whose PC plans have been canceled. Some multiplayer and third-party titles will still reach PCs, however.

Bloomberg's Jason Schreier cites "people familiar with the company's plans," who say that some within the company worry that releasing the games on PC could hurt sales of the PlayStation 5 console, as well as those of its unannounced successor. There could also be concerns that PlayStation titles could end up on competing Xbox hardware if Microsoft makes good on speculation that the next Xbox might play PC games.

There are a few caveats to this change in strategy that are important to note. First, multiplayer titles will still be released cross-platform, including Marathon, a reboot of an old first-person shooter franchise by Bungie (the studio that created Halo, now owned by Sony), slated to release tomorrow on both PlayStation 5 and PC (via Steam).

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How strong is New York's "illegal gambling" case against Valve's loot boxes?

For years now, Valve fans have been making jokes about the company's slow transition from game maker to glorified digital hat and knife paint marketplace. This week, though, a lawsuit brought by the state of New York argues that Valve's in-game loot box sales amount to an illegal gambling outfit worth tens of billions of dollars.

Lawyers who have looked into the particulars of the case tell Ars that the state faces an uphill battle in convincing courts that this portion of Valve's business legally constitutes gambling. That said, there are a few elements of the case that might make Valve legally vulnerable to the state's arguments.

What is gambling, anyway?

For a game to legally be counted as "gambling" in most jurisdictions, it has to pass a three-part test: a player has to pay money (1) for an outcome that's materially determined by chance (2) in the hopes of receiving something of value (3). While buying a key to a loot box in a Valve game easily passes those first two tests, New York's legal case will likely hinge on whether the random cosmetic items players get from those loot boxes constitute "something of value" for statutory purposes.

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New York sues Valve for enabling "illegal gambling" with loot boxes

New York state has filed a lawsuit against Valve alleging that randomized loot boxes in games like Counter-Strike 2, Team Fortress 2, and Dota 2 amount to a form of unregulated gambling, letting users "pay for the chance to win a rare virtual item of significant monetary value."

While many randomized video game loot boxes have drawn attention and regulation from various government bodies in recent years, the New York suit calls out Valve's system specifically for "enabl[ing] users to sell the virtual items they have won, either through its own virtual marketplace, the Steam Community Market, or through third-party marketplaces." The vast majority of Valve's in-game loot boxes contain skins that can only be resold for a few cents, the suit notes, while the rarest skins can be worth thousands of dollars through marketplaces on and off of Steam. That fits the statutory definition of gambling as "charging an individual for a chance to win something of value based on luck alone," according to the suit.

The Steam Wallet funds that users get through directly reselling skins "have the equivalent purchasing power on the Steam platform as cash," the suit notes. But if a user wants to convert those Steam funds to real cash, they can do so relatively easily by purchasing a Steam Deck and reselling it to any interested party, as an investigator did while preparing the lawsuit.

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Inside the quixotic team trying to build an entire world in a 20-year-old game

Despite being regarded as one of the greatest role-playing games of all time, The Elder Scrolls III: Morrowind disappointed some fans upon its release in 2002 because it didn't match the colossal scope of its predecessor, The Elder Scrolls II: Daggerfall. Almost immediately, fans began modding the remaining parts of the series’ fictional continent, Tamriel, into the game.

Over 20 years later, thousands of volunteers have collaborated on the mod projects Tamriel Rebuilt and Project Tamriel, building a space comparable in size to a small country. Such projects often sputter out, but these have endured, thanks in part to a steady stream of small, manageable updates instead of larger, less frequent ones.

A tale of (at least two) mods

It's true that Daggerfall included an entire continent’s worth of content, but it was mostly composed of procedurally generated liminal space. By contrast, Morrowind contained just a single island—not even the entire province after which the game was named. The difference was that it was handcrafted.

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New Microsoft gaming chief has "no tolerance for bad AI"

Last week's surprise departure of Phil Spencer from Microsoft led to the promotion of Asha Sharma, who comes to head Microsoft's gaming division after two years as president of the company's CoreAI Product group. Despite that recent history, Sharma says in a new interview that she has "no tolerance for bad AI" in game development.

Speaking with Variety, Sharma noted that "AI has long been part of gaming and will continue to be," before adding that "great stories are created by humans." The interview comes after Sharma promised in an introductory memo that "we will not chase short-term efficiency or flood our ecosystem with soulless AI slop. Games are and always will be art, crafted by humans, and created with the most innovative technology provided by us."

Those statements seem like a clear line in the sand from Sharma against the use of AI tools in Microsoft's first-party game development, at the very least. But what separates "bad AI" and "soulless AI slop" from "innovative technology" that humans can use to create artful games is a matter of some significant debate in the gaming world.

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Meta's flagship metaverse service leaves VR behind

Meta announced today that it will divorce its Horizon Worlds social and gaming service—once promoted as the company's first major step into the metaverse—from its Quest VR headset platform and digital store.

The company says it is now "shifting the focus of Worlds to be almost exclusively mobile." The announcement is also filled with statements like "we're doubling down on the VR developer ecosystem" that are attempting to head off any suggestion that Meta is retreating from the mixed reality space.

This is far from the first signal that big changes are happening with Meta's mixed reality strategy. CNBC reported that Meta has lost $80 billion on investments in Reality Labs, the company's mixed reality division. More than 1,000 Reality Labs employees were laid off in January, but don't misread that as a total closure; more than 15,000 people were working in that part of the organization before the layoffs.

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Why Final Fantasy is now targeting PC as its "lead platform"

For a long time now, PC gamers have been used to the Final Fantasy series treating their platform as somewhat secondary to the game's core console versions. There are some signs that may be starting to change, though, as director Naoki Hamaguchi has confirmed that the PC is now the "lead platform" for development of the Final Fantasy VII Remake trilogy.

In a recent interview with Automaton, Hamaguchi clarified that the team takes the relatively common practice of creating visual assets for its multiplatform games by targeting "high-end environments first," then performing a "reduction" for less powerful platforms. These days, that means "our 3D assets are created at the highest quality level based on PC as the foundation," he said. Players have already noticed this graphical difference in the PC version of Final Fantasy VII Rebirth, Hamaguchi said, and "our philosophy will not change for the third installment."

While PC gaming is only "gradually expanding in Japan," Hamaguchi said the rapid growth in international PC gamers has led the company to "develop assets with the broad PC market in mind."

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Pokémon Red and Green’s GBA remakes are getting re-released on Switch for $20 a pop

For my money, the 2004 Game Boy Advance re-releases of Pokémon FireRed and LeafGreen are still the best versions of the original Pokémon games. They fixed most of the bugs and balance issues present in the originals—partly by also including the rosters from Gold/Silver and Ruby/Sapphire—but they're more faithful to the original gameplay, battling and catching mechanics, and graphics than the 2018 Let's Go, Pikachu/Eevee! adaptations for the Switch.

Someone at Nintendo apparently agrees, as the company announced today that it's re-releasing those games for the original Switch (and, by extension, the Switch 2, though no Switch 2-specific features were announced). The games will be available after a planned Pokémon Presents stream at 9 am Eastern/6 am Pacific on February 27.

Subscribers to the Switch Online + Expansion Pack are in for a disappointment, though. Instead of releasing FireRed and LeafGreen as part of the Switch Online Game Boy Advance collection, Nintendo will release both titles as standalone purchases that will run you $20 apiece. This means that players without a subscription will be able to buy and play the games. But given how few GBA games are available for the Switch Online service and how infrequently new ones are released, it does rankle to see otherwise unmodified ports of a prominent game bypass subscribers entirely.

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Diablo II’s new Warlock is a great excuse to revisit a classic game

Diablo II is one of those storied classic PC games that's pretty much always fun to come back to—so much so that some players have put thousands of hours into the game over more than two decades. Across all those years, though, the game itself has barely changed, becoming something of a familiar, comfortable blanket of hellfire for longtime players.

That makes last week's introduction of a new playable Warlock class in Diablo II Resurrected’s new "Reign of the Warlock" DLC a pretty big deal. And after playing through a few Acts with the Warlock over the recent holiday weekend, I found the new option to be a great excuse to come back to a game that's overdue for a shot in the arm.

War-locked in

How your Warlock build goes depends heavily on which of the three main upgrade branches you choose to go down. Of these, I found the Eldritch branch had been the most interesting and fun to explore. That's in large part because of a new skill that lets you levitate a powerful two-handed weapon in front of you while still holding a strong shield in your hands. It seems like a small change, but my relief was palpable in this playthrough as I was able to avoid these kinds of tough choices between defense and offense as I juggled my inventory.

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GameHub will give Mac owners another imperfect way to play Windows games

For a while now, Mac owners have been able to use tools like CrossOver and Game Porting Toolkit to get many Windows games running on their operating system of choice. Now, GameSir plans to add its own potential solution to the mix, announcing that a version of its existing Windows emulation tool for Android will be coming to macOS.

Hong Kong-based GameSir has primarily made a name for itself as a manufacturer of gaming peripherals—the company's social media profile includes a self-description as "the Anti-Stick Drift Experts." Early last year, though, GameSir rolled out the Android GameHub app, which includes a GameFusion emulator that the company claims "provides complete support for Windows games to run on Android through high-precision compatibility design."

In practice, GameHub and GameFusion for Android haven't quite lived up to that promise. Testers on Reddit and sites like EmuReady report hit-or-miss compatibility for popular Steam titles on various Android-based handhelds. At least one Reddit user suggests that "any Unity, Godot, or Game Maker game tends to just work" through the app, while another reports "terrible compatibility" across a wide range of games.

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RAM shortage hits Valve's four-year-old Steam Deck, now available "intermittently"

Earlier this month, Valve announced it was delaying the release of its new Steam Machine desktop and Steam Frame VR headset due to memory and storage shortages that have been cascading across the PC industry since late 2025. But those shortages are also coming for products that have already launched.

Valve had added a note to its Steam Deck page noting that the device would be "out-of-stock intermittently in some regions due to memory and storage shortages." None of Valve's three listed Steam Deck configurations are currently available to buy, nor are any of the certified refurbished Steam Deck configurations that Valve sometimes offers.

Valve hasn't announced any price increases for the Deck, at least not yet—the 512GB OLED model is still listed at $549 and the 1TB version at $649. But the basic 256GB LCD model has been formally discontinued now that it has sold out, increasing the Deck's de facto starting price from $399 to $549. Valve announced in December that it was ending production on the LCD version of the Deck and that it wouldn't be restocked once it sold out.

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