Now that a console like PS3 is deeply integrated with Facebook, this might also enable games played across the social network and the console.

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Last fall, the company teamed up with Nielsen to track viewer metrics across Xbox Live, a first for a game console network.

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That's an artful way to say that Microsoft's security concerns were -- and are -- elsewhere: Hackers tampering with the cameras to intercept the stream to spy on users, going up the stack to the console or network.

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Sony has realized this too and followed suit: its PlayStation Network service has been free to all console owners, but at its E3 press conference on Tuesday, Sony announced a new subscription service with premium content and services, PlayStation Plus.

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Like most of Loki's other ported games (Railroad Tycoon being the notable exception), Heroes III can only be played on the console and not displayed over a network through the X Window System.

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However, to avoid such latency issues, users will only be able to connect the console to a PC on the same home network - although Mr Huang said it was an ambition to allow them to go "beyond the house" with future devices.

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Third-party software developers can write their MMC plug-ins so that network administrators can manage these third-party products from inside the centralized console.

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Although there is nothing to prevent users with blocked accounts from creating new ones, Microsoft has said it might also enforce "console bans" designed to permanently prevent targeted machines accessing its network.

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