Skype was bought out by Microsoft earlier this month for a staggering $8.5billion, which is the biggest acquisition in the history of the company. You have to admit though, that anything that Microsoft are involved in that comes to that price, Bill Gates is more than likely going to be involved in it.

You can imagine can’t you. In the next update of Microsoft they have a Skype app, so you can Skype on your computer automatically to other people who you have got added on it. There are many things that Microsoft, the owners, and also the creators of MSN Messenger, could do with Skype. Their expertise in the technology field and also their expertise with things such as instant messenger the possibilities are endless for Skype and with things like HD and more recently the emergence of 3D the possibilities are endless for what we can expect from Skype.

One of the big questions though will be; is Microsoft going to keep it all free? As some of you may already know Skype has a free part and it also has the paid for part. The paid for part though, isn’t a must. It’s not like Spotify where they limit the things that they offer you in the free service, all that you’re paying for is the calls, or video calls to other people’s mobile phones. So at the end of the day you’re getting a good, cheap and easy service for nothing!

Peter Molyneux is the ‘father’ of this new technology and ‘Milo’ and said he wanted to create a character “that seemed alive, that would look me in the eyes and feel real.” Well this is as real as you will get when it comes to virtual people.

“There was a huge row online about that with people saying ‘this can’t be real’,” Mr Molyneux added. Milo was first paraded to the public in a demo at E3 expo in 2009 but since then he has not been seen. The live demonstration demonstrated Microsoft’s soon-to-be released Kinetic controller which uses a series of different sensors, microphones and cameras to interpret the user intentions.

The demo was conducted by an assistant and he showed Milo doing various different activities like exploring a garden, learning to skim stones and finally Milo confided in the assistant after being told off by his parents.

Mr. Molyneux said; “We’re changing the mind of Milo constantly, no two peoples Milos can be the same – you are actually sculpting a human being. Some of the things you do will change the course of his life.”

The Japanese gaming company was once the biggest in the industry, but a series of failed consoles and innovation crises left them recently struggling to gain a foothold. After the success of the Wii and Nintendo DS portable gaming system, Nintendo appear to have almost complete control of the gaming industry’s more public side.

It’s a phenomenon which has occurred once more at this year’s E3. After Microsoft’s dull Xbox 360 Kinect demo and Sony’s equally weak Playstation Move presentation, the former underdog stepped up and revealed some of the coolest hardware its produced in years. The Nintendo 3DS beat every other presentation at this year’s E3, demonstrating that the Japanese game house has still got it.

The system itself isn’t particularly unusual, nor is it a surprising release from the gaming industry’s most innovative manufacturer. Built around a familiar enclosure and boasting few physical changes, the 3DS looks much less like a next-gen system than we had imagined. Its controls are nothing new, its design relatively unchanged, and its enclosure built of the same materials we’re accustomed to.

That is, of course, until you switch it on. The system’s understated exterior houses a new processor, updated graphics unit, and an equally impressive dual-screen three-dimensional display. Just like the original DS, the lower screen is used to control in-game actions while the upper displays three-dimensional game content and can even be used to play three-dimensional films.

Amazingly, the compact screen displays 3D content more vividly than Sony’s own Bravia television line. The few demonstration titles we’ve seen looked smooth and natural, incorporating 3D subtly and rarely feeling like a technology demo. With the incredible software Nintendo has announced, the 3DS could soon find itself as the de-facto mobile and home gaming platform.

Other Nintendo announcements were slightly less eventful. A new Zelda title will soon be available for the Wii, while an updated version of Rare’s Goldeneye 007 will be released at some point in the next twelve months. Nintendo’s acclaimed Zelda: Ocarina of Time may be remade and released for the 3DS at some point in the next year, although Nintendo were short on details at the conference.

Nintendo has yet to announce a release date for the 3DS, although gaming industry experts believe the system will hit store shelves before the end of the year. Pricing is currently unknown, although a leak from Australian video gaming chain EB Games has pegged the system’s price at approximately $199 USD. Nintendo plans to showcase launch titles over the course of the year.

The Xbox 360 was released in 2005, making it the oldest of this generation’s gaming console lineup. Hampered by a range of compatibility and reliability problems, gaming industry analysts have been calling for a system revision for some time, claiming that the current ‘white box’ console is plagued by too many hardware and software issues to remain competitive.

Italian gaming website Console Tribe may have accidentally unveiled Microsoft’s new system. The gaming blog ran a banner advertisement displaying the new system in full, alongside text touting its revised design and boosted performance capabilities. The system is expected to be displayed in full at this year’s E3, bringing Microsoft’s ageing console up to speed with competition from Sony.

Of course, news of the latest Xbox has been overshadowed by reports of Microsoft’s latest virtual reality gaming system. Dubbed ‘Project Natal‘ before its release and showcased to a select few gaming journalists, the system has been publicly revealed and renamed. Now called Kinect, the motion detecting system is designed to allow gamers to enjoy computer entertainment without the standard Xbox control pad.

Gaming commentators believe that the system is pointed at Nintendo, whose Wii gaming console has become the current leader. Kinect draws upon the Wii’s motion-based control system, allowing gamers to enjoy even more advanced motion sensing technology. The system hasn’t yet been given a release date, though a new Star Wars title is in the works specifically for the product launch.

Nintendo are also expected to make a major announcement at this year’s E3. Gaming blogs have been alight with information about their upcoming 3D portable gaming console, which many are billing as the successor to the company’s ultra-successful DS. The DS has remained a top seller since its release, beating out more technologically advanced competition from Sony and remaining competitive despite Apple’s recent seizure of the mobile gaming market.

Sony’s PSPGo device was launched earlier this year to mediocre reception, though the gaming console has picked up steam over time. Analysts believe that this year’s expo could be the ideal time for Sony to announce their new portable gaming console, dominating press and media attention by announcing two mass market devices at once.

Whatever the end result, gaming fans are in for an exciting year. This year’s E3 expo is set to feature more announcements and new releases than any before it, further cementing the event as the most important on the gaming calendar.

We’ve catalogued the most important events in the technology world, ordered and arranged here for your reading pleasure. If you’re tired of trying to keep up-to-date with the technology industry’s lightening quick developments, be sure to look out for our weekly ‘This Week in Tech’ series.

New iPhone pre-orders open June 15^th, June 24^th release

Apple’s new iPhone announcement received a great deal of coverage, though it was slightly less surprising than the recent iPad display. The iPhone 4 will ship towards the end of June, with UK pre-orders opening on June 15^th.

The new iPhone offers full HD video recording, a vastly improved digital display, and a slick new case design. Apple have clearly aimed the device at the hardcore techie demographic; their recent iPad wasn’t exactly a hit with technology reporters, though the iPhone 4 appears to be a true powerhouse.

Want to be annoying? There’s an app for that.

Fifa are considering an all-out vuvuzela ban for upcoming World Cup matches. The infamous plastic horns have been the subject of thousands of complaints from TV viewers, though South African football fans have insisted that they’re an important part of sporting culture.

If you want to bring the annoyance to your local sports bar, living room, or stadium, the Vuvuzela Horn iPhone application could be your best option. It’s annoying, loud, and utterly unlistenable; for the ultimate in annoying sounds, try installing it on your iPad.

Microsoft Kinect brings Xbox owners one step closer to virtual reality.

Previously billed as Project Natal and endlessly hyped prior to this year’s E3 gaming conference, Microsoft’s Kinect is the company’s next step into virtual reality and motion-based gaming. The system allows gamers to play upcoming Xbox 360 titles without a standard controller, instead using their own motion to control game characters and vehicles.

The Xbox 360 was the first of this generation’s gaming systems, and is the only without a standard motion sensing control system. Whether Kinect will bridge the console sales gap is unknown, but it certainly looks like a fun gaming experience.

iPad security breaches cause problems for App Store users

Over 100,000 American iPad owners fell victim to a security breach last week, after a team of hackers gained access to mobile phone company AT&T‘s user information database. The breach resulted in several thousand customer email addresses getting leaked, the majority of which have been subjected to spam emails and phishing attacks.

AT&T have been apologetic about the situation, sending out a mass email to subscribers who could potentially be at risk of account phishing or spam email. The Federal Bureau of Investigation is involved in the investigation, aiming to prosecute the group as cyber criminals.

The Samsung rep responsible for the unveil claimed that the seven-inch model was one of several, with larger tablets to be released over the coming months. A stretched version of the Galaxy mobile phone, the tablet looks remarkably familiar – pulling design cues from Apple’s new iPad.

But there’s one thing which separates it from Apple’s new device: the inclusion of a phone calling mode as standard. Samsung’s photos show the tablet next to a Galaxy mobile, with their screens both illuminated and stuck on the home menu. Alongside contacts, internet browsers, and other applications, and phone icon is clearly visible.

Hewlett Packard certainly isn’t a stranger to the tablet world; the home computer manufacturer has ventured into touchscreen products before with little commercial success. Their new HP Slate PC is due for release later this year, and some analysts are already touting it as the device with potential to kill the iPad.

Boasting a 1.6GHz processor and an expandable 64GB of built-in memory, it’s hard to argue. The Slate PC includes support for Adobe Flash as standard, alongside a front-mounted webcam and 3 megapixel rear camera. While we can’t imagine the rather bulky Slate PC becoming a popular photography device, the inclusion of these two features – ones that were sorely missed in the iPad – could push it closer to success.

The end result of the tablet war isn’t likely to be hardware domination, but the prevalence and growth of new software. Samsung’s Galaxy tablet is built around Android, Google’s increasingly popular and highly flexible mobile operating system. HP’s tablet uses a modified version of Windows 7.

With three devices on the market, each boasting their own operating system, the tablet race could end up becoming a battle for software domination. Google and Apple, once close corporate friends, have become bitter enemies, spewing rhetoric and crunching competition numbers at any possible opportunity. The mobile operating system divide has, in many ways, created PR problems for both companies.

It’s hard to say which of the three devices is likely to succeed, at least in the traditional sense. With the backing of advertising giant Google behind it, the Galaxy tablet could become a real contender. Hewlett Packard too shares a unique advantage; as the only mass market tablet with Windows onboard, it could become a major strategic piece for Microsoft’s greater expansion into mobile operating systems.

And with Apple Inc. moving away from their friendly days with Google, this platform war could become more heated than ever. Of course, it’s significantly less of a worry for us consumers; with three equally hot tablets soon to be on the market, things are looking better than ever.