Nolan Bushnell working on RTS/FPS hybrid, likes cloud computing (update: first images of Battleswarm)

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Update: Joystiq has been provided with a pair high resolution images of Battleswarm. Find them in the gallery below.

Game industry legend Nolan Bushnell is back in the news again, with word from USA Today that he's working on a new online game for the PC. Entitled Battleswarm: Field of Honor (see the tiny screenshot to the right), the Reality Gap-developed game pits humans versus alien bugs -- what was it Bushnell said about today's games not being innovative? -- with the humans playing from a first-person perspective and the bugs being controlled using a real-time strategy interface. According to Bushnell, the game was born from his frustration at being constantly bested by his younger, quicker sons at FPS games.

Battleswarm will be an online-only affair with a free-to-play model that utilizes a microtransaction system, allowing players to purchase upgrades like weapons and armor. While Bushnell says there may be some "segregation" in the game to separate those with tons of upgrades from those who have avoided them, he notes that "a really good player doesn't need to buy extra resources."

When asked about what exciting trends he sees in the game industry today, Bushnell said, "I'm a big believer in 'cloud computing,' referring to services like OnLive, in which games are stored on distant servers and not directly on a player's computer or console. He's also excited about "gesture-based inputs, where you don't even need a remote or controller to play."

Natal Pong, anyone?
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