Those hoping the video game industry could turn 
around its fortunes in July got their wishes – sort of. Sales of video game software were down 8 percent last month to $403.3 million. The industry as a whole was off 1 percent to $846.5 million.
Those numbers, however, did not include sales of “Starcraft II,” which was a PC-exclusive title. (NPD’s monthly numbers only track console sales.) Combined sales of PC and console games were actually up 4 percent over the 2009 numbers.
Microsoft on Tuesday announced that Kinect,
its new gesture-recognition controller for the Xbox 360, will retail for $150 when it hits stores Nov. 4. That is in line with what the gaming world was expecting — but it may make the launch of the long-awaited system a bit less spectacular than people were hoping.
The company says the chief goal of Kinect is to attract new users to the Xbox 360. To achieve this, Microsoft will also offer a larger bundle, which includes an Xbox 360 (with 4GB of storage), a Kinect and “Kinect Adventures” for $299.
Looks like the rumors were pretty much spot-on when it came 
to Kinect pricing. Microsoft has announced that its new gesture-recognition peripheral will retail for $150 when it hits stores this November. That price will include a bundled version of the “Kinect Adventures” game.
Microsoft’s main focus with Kinect is to attract new users to the Xbox 360, so it will also offer a larger bundle, which includes an Xbox 360 (with 4GB of storage), a Kinect and “Kinect Adventures” for $299.
Microsoft’s gesture-recognition controller, Kinect, set to hit 
stores this November, will launch with a price tag of $150, the company announced Tuesday.
The peripheral, which will come with a copy of the “Kinect Adventures” game, is priced higher than many analysts and game industry executives were hoping for.
(Note: I do not choose the headlines on Daily Variety stories.)
Two years ago, Microsoft announced plans to compete against 
television programmers on their own turf. On Thursday, the company conceded the first round to the networks.
After two successful seasons, the Microsoft has cancelled “1 vs. 100,” an online adaptation of the Endemol-created NBC gameshow. The game was the centerpiece of an experiment called Xbox Live Primetime — a scheduled series of interactive games that represented the videogame industry’s first serious foray into turf dominated by TV. It was a hit, too, setting a Guinness World Record for the most simultaneous contestants in a gameshow at 114,000.
When Microsoft announced plans to bring the TV game show 
“1 vs. 100” to the gaming space two years ago, a lot of people rolled their eyes and groaned a little bit. Not me. I thought it was one of the company’s most interesting announcements of that particular E3.
The game was the centerpiece of an experiment called Xbox Live Primetime – a scheduled series of interactive games that represented the video game industry’s first serious foray into the turf dominated by TV. It was a hit, even setting a Guinness World Record for the most simultaneous contestants in a game show – 114,000. Now it’s dead.
Microsoft has always led the video game pack 
when it comes to online integration of its console services. But it recently turned a particularly impressive corner.
For the year ending June 30, sales of online products, such as movies, TV shows and downloadable game levels, were higher than revenue generated by subscription fees. Together, the company estimates that revenue for the Xbox Live service topped $1 billion.
Two of the most visible faces in Microsoft’s entertainment 
and devices division are leaving the company. Microsoft today announced the departure of president Robbie Bach and chief experience officer J Allard.
Bach is retiring after 22 years with the company effective this fall. He has headed the entertainment and devices division since its inception five years ago and is a regular presence at major Microsoft press events. Allard, the driving force behind the Xbox and Zune media player, is leaving, but will remain as an advisor to CEO Steve Ballmer.
Read more at Variety’s The Cut Scene blog
Or, read an extended version (with deeper analysis) at Daily Variety
Microsoft is shaking up its entertainment and devices division, the group responsible for many of its most familiar consumer devices.
Robbie Bach, a 22-year veteran of the company and president of the unit since its inception five years ago, will retire this fall. And J Allard, who was the powering force behind the Xbox video game console and Zune media player (and, until recently, was the driving force behind the company’s plans to make a PC tablet computer), will also depart the company.
It’s no secret that Microsoft has always had broader plans for the Xbox 360 than video games, but a new report from Bloomberg indicates the company may be thinking of something much more ambitious than anyone expected.
Microsoft and former News Corp. president Peter Chernin have reportedly discussed creating a television channel that would air exclusively on Xbox Live and feature a mix of original programming and reruns. News of the discussions comes on the heels of reports that Conan O’Brien considered moving his show to Xbox before deciding to go with TBS.
Chris Morris: Journalist 