DirectX 11
Kevin stressed that today's announcement was a "technology" announcement. Furthermore, "DirectX 11 will work on Windows Vista, as well as the next version of Windows, which will support DirectX 10, 10.1, and of course new DirectX 11 hardware."
Even though there will be backwards-compatibility with DX10 hardware, the compatibility isn't 100%. According to Kevin, "you can expect that there will be DX11 features that need DX11 hardware," though Microsoft isn't ready to announce what they are at this time.
"Some of the improvements," continued Kevin, "for example, the ability to take much better advantage of multi-core capable PC's [is] something that we're going to extend all the way down to DX10 hardware. There are improvements across the board for gamers that have DX10 and DX10 hardware as well as some new things that we'll do that will require DX11 hardware."
"If you look at DX11, which is a direct superset of what DX10 and 10.1 offer, you're starting to see all of the investment developers have made in DX10 and 10.1 and consumers have made in that hardware, that experience is only going to get better with DX11."
It's too early to hear about any specific games or developers that are getting DirectX 11-ready, but it looks like a good future for Games for Windows LIVE and DirectX 11.
... DAMNIT ... fuck microsoft sometimes ... seriously ... :|
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