Artificial Intelligence is very much on the news agenda right now. The unstoppable rise of ChatGPT and the seemingly imminent prospect of generalised AI able to re-create broad human thinking processes has seen concerns raised by everyone from major business CEOs to Geoffrey Hinton, one of the godfathers of AI research. AI has been an element of video game design and production for at least two decades, but now with AI art programs and the rise of procedurally generated game dialogue, there are growing questions over how AI is going to effect not just the content of games, but the teams that make them. Talking at the Xbox games showcase in Los Angeles recently, Xbox chief Phil Spencer played down concerns that AI could be used to streamline the game production process and therefore lead to smaller teams. "Actually, that isn't an area we're thinking about a ton with AI," he said.

On Tuesday tech giant Microsoft announced its proposed purchase of gaming company Activision Blizzard for nearly $69 billion. The deal would grant Microsoft ownership over globally recognized franchises like Call of Duty, World of Warcraft, and Candy Crush, to name a few. It also creates a new division in the company, Microsoft Gaming, to be led by the company's head of its Xbox division, Phil Spencer. For Activision Blizzard, this couldn't have come at a better time. The company, run by CEO Bobby Kotick since 1991, has been the subject of scrutiny and lawsuits based on numerous allegations of discrimination, sexual harassment, and a toxic workplace culture at the company.

In 2014, Microsoft bought Minecraft's developer Mojang for what seemed, at the time, an eye-popping figure: $2.5bn (£1.8bn). It was the first in a series of bullish video-game studio acquisitions by the tech giant, whose games division has been led by executive Phil Spencer, a long-time advocate for video games within Microsoft and the wider business world, for the past eight years. More studios followed, for undisclosed amounts: beloved Californian comedy-game artists Double Fine, UK studio Ninja Theory, RPG specialists Obsidian Entertainment. It seemed that under Spencer's leadership, Microsoft was cementing its commitment to the Xbox console and the video-games business by investing in what makes games great: the people who make them. Then came 2020's deal to acquire Zenimax (and with it Bethesda), for a properly astonishing $7.5bn.

Over the last decade, the concept of "games as a service" has revolutionised the way the interactive entertainment industry works. From the subscriptions introduced by massively multiplayer online adventures such as World of Warcraft to the seasonal battle passes of current online shooters, we're seeing a huge amount of focus on games that can sustain a lucrative community of players over several years. But where does that leave more offbeat ideas and concepts that couldn't support years' worth of play? Where does it leave the single-player narrative adventure – the blockbusting genre that brought us titles such as Metal Gear Solid, Red Dead Redemption and Mass Effect? It's a genre Sony has supported through funding the studios that make games such as The Last of Us, Spider-Man and God of War.

The launch of the Xbox Series X this week marked the start of a new video game console generation – historically a super-exciting time for players, as better technology unlocks new dimensions for games. But despite the usual competitive crowing about teraflops, frame rates and resolutions, there's a different dimension to the console wars this time around. The looming Netflix-ification of video games threatens to upend the whole idea of video game consoles. Amazon and Google are both working on game streaming services that let people play cutting-edge games without paying for a box that sits under the TV. And Microsoft has spent the past five years spending billions on game developers to shore up its star service: Xbox Game Pass, a monthly subscription that lets you play hundreds of games for a monthly fee.

Microsoft is acquiring ZeniMax Media, the parent company of Bethesda Softworks, publisher of the best-selling video game franchises The Elder Scrolls, Fallout and Doom. The $7.5bn deal (£5.85m) will see all future releases from Bethesda's studios included on the Xbox Game Pass subscription service. Xbox chief Phil Spencer said: "Like us, Bethesda are passionate believers in building a diverse array of creative experiences, in exploring new game franchises, and in telling stories in bold ways. All of their great work will continue and grow, and we look forward to empowering them with the resources and support of Microsoft to scale their creative visions to more players in new ways for you." The move could significantly affect the industry.

Reports have been swirling around Google's development of a subscription-based game streaming service, but a flurry of secret meetings at recent conferences has raised speculation it could soon be revealed. The service, codenamed Yeti, would put Google at the forefront of a new part of the videogame business that lets people play games as they're being streamed, rather than using downloads or disks, a report said. The firm met with big video game companies at the Game Developers Conference in March and took meetings at the E3 gaming expo in Los Angeles a few weeks ago, it has been claimed. It is also believed to be considering buying existing games development studios to bolster the plans. Google is developing a subscription-based game streaming service that could work either on its Chromecast or a Google-made console.

Microsoft is preparing to release a new'family' of Xbox games consoles in 2020, according to leaked documents. Earlier this week the firm revealed a slew of new Xbox games and a new streaming service at the E3 gaming conference in Los Angeles. However, a new claim says that the gaming giant is also working on an entirely new version of its Xbox - and that there will be more than one device. Xbox boss Phil Spencer also teased the forthcoming video game streaming service, which he claims will be able to'unlock console-quality gaming on any device' 'This past week, I was tipped off that the next generation Xbox was codenamed Scarlett and in an effort to track down if this information was accurate, I was able to view content that highlighted several unannounced Microsoft products that are coming in the next two years, wrote Brad Sams of Thurrot According to the documents, Microsoft describes'Scarlett' as a family of devices. However, it is unclear is this is an entirely new console, or if the family could include a portable version following the success of Nintendo's Switch.

When you think of Microsoft, you probably think of Word or Windows first; omnipresent computer software that, despite its usefulness, does not elicit enormous excitement. At E3 each year, the video games industry's biggest event, Microsoft packs out a stadium-sized room with fans for its annual press conference, many of whom have travelled from all over the world. People are passionate about Xbox and its games – Minecraft, Halo, Gears of War – in a way that nobody is about Microsoft Office. Microsoft's most senior figures appear to have woken up to this relatively recently. Phil Spencer, who ran Xbox's game development studios for years, was made executive vice-president of gaming within the company in September 2017.

Microsoft is building a Netflix-style streaming service for video games that promises to bring'console-quality gaming to any device'. The Redmond-based company claims players will be able to stream blockbuster titles to their Xbox, laptop or smartphone. It's unclear whether players will have to pay to play individual games, or will be able to access the entire library for a monthly fee, like video on-demand services. Microsoft does not believe streaming will replace dedicated home consoles entirely, with the company also teasing that new Xbox hardware is already in the works. Microsoft is building a Netflix-style streaming service for video games that promises to bring'console-quality gaming to any device'.