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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Party like it's 2001: Diablo II gets a new expansion, new playable class

It's not every day that a classic PC game gets a new content expansion 25 years after its last major update. But that's what happened last night, as Blizzard suddenly released new "Reign of the Warlock" DLC that adds a new class, new end-game challenges, and new inventory-management options to the classic Diablo II.

To be clear, the new DLC is technically not for the original 2000 release of Diablo II (which was still getting patches as of 2016) but for the game's 2021 Resurrected remaster. Still, that remastered version has gameplay and animations that are extremely faithful to the original, making yesterday's surprise update the kind of content drop that players have been waiting for since 2001's "Lord of Destruction" expansion.

The "Reign of the Warlock" DLC lets you "command forbidden power" as a new class that "wields forbidden arts, bridles hellfire and shadow, and dominates demons," according to the in-game class selection screen description. By way of backstory, Blizzard writes that most Warlocks "have the means to lead a lavish lifestyle but find the pursuit of luxury and ease stale. Instead, they leverage their elevated status in Sanctuary to hunt down lost knowledge that would enable them to continue the legacy of Horazon."

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Just look at Ayaneo's absolute unit of a Windows gaming "handheld"

In 2023, we marveled at the sheer mass of Lenovo's Legion Go, a 1.88-pound, 11.8-inch-wide monstrosity of a Windows gaming handheld. In 2026, though, Ayaneo unveiled details of its Next II handheld, which puts Lenovo's big boy to shame while also offering heftier specs and a higher price than most other Windows gaming handhelds.

Let's focus on the bulk first. The Ayaneo Next II weighs in at a truly wrist-straining 3.14 pounds, making it more than twice as heavy in the hands as the Steam Deck OLED (not to mention 2022's original Ayaneo Next, which weighed a much more reasonable 1.58 pounds). The absolute unit also measures 13.45 inches wide and 10.3 inches tall, according to Ayaneo's spec sheet, giving it a footprint approximately 60 percent larger than the Switch 2 (with Joy-Cons attached).

Ayaneo packs some seriously powerful portable PC performance into all that bulk, though. The high-end version of the system sports a Ryzen AI Max+ 395 chipset with 16 Zen5 cores alongside a Radeon 8060S with 40 RDNA3.5 compute units. That should give this massive portable performance comparable to a desktop with an RTX 4060 or a gaming laptop like last year's high-end ROG Flow Z13.

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No humans allowed: This new space-based MMO is designed exclusively for AI agents

For a couple of weeks now, AI agents (and some humans impersonating AI agents) have been hanging out and doing weird stuff on Moltbook's Reddit-style social network. Now, those agents can also gather together on a vibe-coded, space-based MMO designed specifically and exclusively to be played by AI.

SpaceMolt describes itself as "a living universe where AI agents compete, cooperate, and create emergent stories" in "a distant future where spacefaring humans and AI coexist." And while only a handful of agents are barely testing the waters right now, the experiment could herald a weird new world where AI plays games with itself and we humans are stuck just watching.

"You decide. You act. They watch."

Getting an AI agent into SpaceMolt is as simple as connecting it to the game server either via MCP, WebSocket, or an HTTP API. Once a connection is established, a detailed agentic skill description instructs the agent to ask their creators which Empire they should pick to best represent their playstyle: mining/trading; exploring; piracy/combat; stealth/infiltration; or building/crafting.

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Why a bump to $700 could be a "death sentence" for the Steam Machine

After writing two November stories analyzing price expectations for Valve's upcoming Steam Machine, I really didn't think we'd be offering more informed speculation before the official price was revealed. Then Valve wrote a blog post this week noting that the "growing price of... critical components" like RAM and storage meant that "we must revisit our exact shipping schedule and pricing" for the living room-focused PC gaming box.

We don't know exactly what form that "revisiting" will take at the moment. Analysts who spoke to Ars were somewhat divided on how much of its quickly increasing component costs Valve would be willing (or forced) to pass on to consumers.

"We knew the component issue was bad," DFC Intelligence analyst David Cole told Ars. "It has just gotten worse. "

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The Switch 2 is getting a new Virtual Console (kind of)

In 2018, we lamented as Nintendo officially replaced the Virtual Console—its long-running line of downloadable classic games on the Wii and Wii U—with time-limited access to a set of games through a paid Nintendo Switch Online subscription. Now, Hamster Corporation is doing what Nintendo no longer will, by offering downloadable versions of retro console games for direct individual purchase on the Switch 2.

As part of today's Nintendo Direct Partner Showcase, Hamster announced a new Console Archives line of emulated classics available for download starting today on the Switch 2 and next week on the PlayStation 5 (sorry, Xbox and OG Switch fans). So far that lineup only includes the original PlayStation snowboarding title Cool Boarders for $12 and the NES action platformer Ninja Gaiden II: The Dark Sword of Chaos for $8, but Hamster promises more obscure games, including Doraemon and Sonic Wings Special, will be available in the future.

If the name Hamster Corporation sounds familiar, it's because the company is behind the Arcade Archive series, which has repackaged individual arcade games for purchase and emulated play on modern consoles since 2014. That effort, which celebrated its 500th release in December, even includes some of Nintendo's classic arcade titles, which the Switch-maker never officially released on the original Virtual Console.

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Steam Machine and Steam Frame delays are the latest product of the RAM crisis

When Valve announced its Steam Machine desktop PC and Steam Frame VR headset in mid-November of last year, it declined to announce pricing or availability information for either device. That was partly because RAM and storage prices had already begun to climb, thanks to shortages caused by the AI industry's insatiable need for memory. Those price spikes have only gotten worse since then, and they're beginning to trickle down to GPUs and other devices that use memory chips.

This week, Valve has officially announced that it's still not ready to make an official announcement about when the Machine or Frame will be available or what they'll cost.

Valve says it still plans to launch both devices (as well as the new Steam Controller) "in the first half of the year," but that uncertainty around RAM and storage prices mean that Valve "[has] work to do to land on concrete pricing and launch dates we can confidently announce, being mindful of how quickly the circumstances around both of these things can change."

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Original Nintendo Switch passes the DS to become Nintendo's bestselling console

Though it was finally replaced last year by the new Switch 2, the orginal switch isn't done just yet. Many recent Switch games (and a handful of major updates, like the one for Animal Crossing) have been released in both Switch and Switch 2 editions, and Nintendo continues to sell all editions of the original console as entry-level systems for those who can't pay $450 for a Switch 2.

The nine-year-old Switch's continued availability has helped it clear a milestone, according to the company's third-quarter financial results (PDF). As of December 31, 2025, Nintendo says the Switch "has reached the highest sales volume of any Nintendo hardware" with a total of 155.37 million units sold, surpassing the original DS's lifetime total of 154.02 million units. The console has sold 3.25 million units in Nintendo's fiscal 2026 so far, including 1.36 million units over the holidays. Those consoles have sold despite price hikes that Nintendo introduced in August of 2025, citing "market conditions."

That makes the Switch the second-bestselling game console of all time, just three years after it became the third-bestselling game console of all time. The only frontier left for the Switch to conquer is Sony's PlayStation 2, which Sony says sold "over 160 million units" over its long life. At its current sales rate (Nintendo predicts it will sell roughly 750,000 Switches in the next quarter), it would take the Switch another couple of years to cross that line, but those numbers are likely to taper off as we get deeper into the Switch 2 era.

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Wing Commander III: "Isn't that the guy from Star Wars?"

It's Christmas of 1994, and I am 16 years old. Sitting on the table in our family room next to a pile of cow-spotted boxes is the most incredible thing in the world: a brand-new Gateway 66MHz Pentium tower, with a 540MB hard disk drive, 8MB of RAM, and, most importantly, a CD-ROM drive. I am agog, practically trembling with barely suppressed joy, my bored Gen-X teenager mask threatening to slip and let actual feelings out. My life was about to change—at least where games were concerned.

I'd been working for several months at Babbage's store No. 9, near Baybrook Mall in southeast suburban Houston. Although the Gateway PC's arrival on Christmas morning was utterly unexpected, the choice of what game to buy required no planning at all. I'd already decided a few weeks earlier, when Chris Roberts' latest opus had been drop-shipped to our shelves, just in time for the holiday season. The choice made itself, really.

Gimli and Luke, together at last! Credit: Origin Systems / Electronic Arts

The moment Babbage's opened its doors on December 26—a day I had off, fortunately—I was there, checkbook in hand. One entire paycheck's worth of capitalism later, I was sprinting out to my creaky 280-Z, sweatily clutching two boxes—one an impulse buy, The Star Trek: The Next Generation Interactive Technical Manual, and the other a game I felt sure would be the best thing I'd ever played or ever would play: Origin's Wing Commander III: The Heart of the Tiger. On the backs of Wing Commander I and Wing Commander II, how could it not be?!

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