An internal Microsoft memo offers some good news for those worried about the next Xbox system (which they call Durango in the memo) requiring a constant connection in order to use. According to that internal Microsoft e-mail (as reported by Ars Technica) the next Xbox has been designed in a way that recognizes the delicate nature of today's Internet connections.

The Federal District Court in Seattle, Washington has given Google's Motorola Mobility a slap in the face, ruling that its FRAND patent fees collected from Microsoft to be worth only about $1.8 million a year. The court said that the H.264 video standard and the 802.11 wireless standard patents weren't worth the $4 billion Motorola was seeking to collect.

During its Q3 earnings report, Microsoft announced that Xbox live subscriptions have reached 46 million worldwide - an 18 percent increase from last year - and that it has sold 1.3 million consoles over the past three months - down nine percent from the same period a year ago. Microsoft's Entertainment and Devices Division revenues rose 56 percent to $253 million despite the drop in console sales.

Last week we asked readers "What will happen if Microsoft's next console requires internet connection start disc-based games?. The majority of the 821 votes cast went to it would be an "unmitigated sales disaster" for the company and its next-gen console, with second place going to "Microsoft would land in third place" in the next console cycle.

It's that silly season (the time between major events like the Game Developers Conference and the Electronic Entertainment Expo) where rumors fly fast and furious about what the biggest companies in the industry have planned. So with that in mind, there's a new rumor that says that the "always online" requirement we have been hearing about for the new Xbox console is actually for the Xbox Mini device. Rumors about the device first surfaced in March of last year.

The Microsoft employee whose glib response (in a series of tweets to a developer friend) to the rumor that the company's next-generation console might require users to be connected to the Internet all the time has lost his job, according to Game Informer.

Despite almost everyone agreeing that an always-on console is a phenomenally bad idea, rumors continue to persist that Microsoft's next console will require an internet connection to start disc-based games.

Okay, fine.  Let's say the big M goes in that direction.  How do you think such a move will affect the sales of its new console?

According to this Bloomberg report citing an anonymous source close to the "situation," the next Xbox (which is codenamed "Durango" or is currently being called the Xbox 720) will not be backwards compatible with current generation Xbox 360 discs. Other rumors have indicated that the system will be pretty expensive - reaching the price point of close to $500 for the premium model of the system, though a cheaper model will also be available.

Microsoft announced that it plans to sell its ITPV business called Mediaroom to Ericsson. Microsoft said that the divesture of this company will put "100 percent of the company's focus on its TV consumer strategy for Xbox. The sale is still subject to regulatory approval, but it is likely to be finalized during the second half of 2013.

A mother in Toronto (Ontario, Canada) blames lax security at Microsoft after her 11-year-old son's Xbox Live account was hacked for $300 in fraudulent charges for in-game content. Jennifer Stubbs of Toronto said an unknown hacker charged the FIFA 13 Ultimate in-game buys to her credit card.

"I wasn't aware that these purchases were happening," she told the Canadian Broadcasting Corp. "Someone had gone into our device remotely."

Microsoft's Major Nelson points out that a number of entertainment apps and options will be deployed on Xbox Live this week.

I don't own an Xbox 360.

It's not because I'm a raving Nintendo fanboy (I am), it's because I trust the hardware about as far as I can throw it.

Wait, I'm pretty strong.  I bet I could chuck one of those suckers a fair distance.

I don't trust Microsoft's current gen console to turn on when I hit the power button.

Why?

On Friday the U.S. International Trade Commission (ITC) finally and formally dismissed a case brought forward by Google's Motorola Mobility unit that alleged that Microsoft's Xbox 360 violated a handful of its patents. ITC Judge David Shaw issued the ruling on Friday, dismissing the last of the five patent disputes. The verdict is still subject to a review by the ITC, and Google retains the right to appeal the decision if it so chooses.

Hackers have targeted an undisclosed number of "high-profile" Xbox LIVE accounts owned by current and former Microsoft employees, according to GII. The hacks are somehow tied to individuals gathering social security numbers.

GameSpot is reporting that three game companies have signed onto an amicus brief opposing the Defense of Marriage Act. The law is being challenged by groups that want the court to strike down the law that defined marriage as being between "a man and a woman."

Microsoft says that it had no involvement in the raid of an Australian man who sold a Durango development kit on EBay. The Australian man known only as "SuperDaE" was raided last week for acquiring and selling a Durango development kit. Durango is the code-name for the next Xbox system from Microsoft. Today we learn that Microsoft is denying any involvement in the raid. The company issued the following statement:

Microsoft promises "vigorous action" against those individuals who downloaded a pirated version of Gears of War: Judgment. The complete copy of Gears of War: Judgment appeared on internet torrent sites overnight and some decided to download it and play it (some played it online as well), much to the dismay of Microsoft.

Microsoft announced that worldwide sales of its Kinect motion sensing peripheral have hit 24 million, matching sales of the original Xbox system and outpacing the 21.7 million GameCube's sold by Nintendo. The company also said that it has sold 76 million Xbox 360 systems worldwide to-date.

Google’s Motorola Mobility division was dealt a serious blow in its ongoing legal battle with Microsoft over patents after a judge ruled that 13 of the patent claims it had asserted against the Windows and Xbox maker were not valid.

Why did Microsoft enter the console market in 2001 with the original Xbox? Well, if you believe former VP of Windows Sales at Microsoft Joachim Kempin, the company jumped into the market because it wanted to "stop" Sony.

Entertainment reviews aggregation site Metacritic has published its 2012 publisher rankings, ranking Electronic Arts at the top of the list, followed by Microsoft, Sony, Nintendo, and Capcom. The rankings use each publisher's game scores to determine the order.

EA was helped by Kingdoms of Amalur: Reckoning and Mass Effect; Microsoft came in second with the help of Mark of the Ninja; followed by Sony with Journey; Nintendo with Xenoblade Chronicles for Wii; and Capcom with Okami HD and Dragon's Dogma - both for PS3.

Microsoft's next Xbox system will use Blu-Ray and will require users to be always connected to Xbox Live, according to an Edge report citing sources with "first-hand experience."

The new raft of rumors are an echo of an older rumor post by VG247 back in April 2012 - also citing anonymous sources close to the company.

Dell has officially gone from being a publicly traded company to a privately owned firm with the help of a $2 billion loan from Microsoft. Given that Microsoft makes the top operating system for the platform, I suppose they have a vested interest in one of the PC market's biggest players staying healthy. Dell completed the terms of the deal that will take the company private, buying out stockholders at $13.65 a share in a $24.4 billion deal.

It looks like those indie and professional game developers that like Microsoft's cross-platform XNA development platform will no longer be supported. An internal Microsoft email reveals that XNA Game Studio is basically dead. The email reveals that Microsoft plans to "retire" XNA and DirectX from its 'MVP Award Program' - a reward initiative for developers who wish to become evangelists for various technologies.

Earlier this week we reported that the Chinese government was considering lifting a 13-year ban on game consoles in the country. While there's plenty of black market devices and software for Chinese consumers, there's no way to legally buy a PS3, Xbox 360, or Nintendo device in the country. The story from a few days ago was based on a China Daily report that quoted an anonymous source inside the Ministry of Culture.

Microsoft's Entertainment and Devices division raked in $3.8 billion in revenue during the last three months of 2012, the company announced today. That number represented an 11 percent decline compared to the same period a year ago. The division is responsible for Windows Phone, Xbox and other devices. While revenues were down, so were marketing cost which made it easy for the Entertainment and Devices division to record a pre-tax profit of $596 million - a 15 percent increase over the same period a year ago.

According to an announcement from 343 Industries community manager Jessica Shea posted on Halo Waypoint, multiplayer servers for the PC windows version of Halo 2 will go dark on February 15. So why would 343 Industries shut down those servers? Because, as Shea points out, nobody seems to be using them anymore:

"We're sad to report that the service end-date for Halo 2 PC Multiplayer will be February 15, 2013," reads the post.

Life is filled with uncertainty but there remain various bits and bobs you can count on: death, taxes, and the fact that I'll pass out if I don't get something to eat soon.

If you don't care too much for those ads on Xbox Live.. well too bad, because more are coming, according to Microsoft. Apparently taking a page from Hulu Plus where subscribers who pay a monthly subscription are still forced to watch ads, Microsoft says that the first wave of NUads (or "natural user-interface ads"), which were deployed in the fourth quarter of 2012, were "highly successful" and that it plans to put additional investment in the space.

As expected, Google has backed off of its International Trade Commission complaint against Microsoft's Xbox 360 console, which uses one of its video compression patents. The company had sought to stop the sale of the system in the United States while Microsoft and its subsidiary Motorola duked it out in court over royalty payments related to FRAND patents. But earlier in the week the Federal Trade Commission stepped into the fight, ordering Google to take a more reasonable approach to "essential patents."