Xfire is a freeware instant messaging service targeted toward gamers. Its uniqueness lies in its ability to detect what video game a particular contact is running and allowing IMs to be sent and received from inside the game in question, eliminating the need to minimize the game window. It is currently available for Microsoft Windows only, but not for long if Sony have anything to do with it.

In a statement made to 1up, Sony Computer Entertainment America said, "We can confirm that Sony Online Entertainment is in talks with Viacom and Xfire for a single, specific PS3 game. However, there are no announcements at this time regarding any discussions between SCEA, Viacom and Xfire". He continued by saying that the technology won't be used as part of Sony's Playstation Network Platform, "This proposed deal is completely separate and independent from the PlayStation Network Platform, and is something that SOE was examining specifically for Dark Kingdom."

Sony and Xfire have not released any details on how Xfire will be implemented, but we can be sure that Dark Kingdom is just the guinea pig for the technology, and if it works well, it will be used in many more PS3 games.

What exactly is Xfire?

By analyzing running processes, Xfire can detect active games and send that information to Xfire clients with the current player as a friend. For many games, it can detect which server people are playing on, sometimes detailing which level is running, ping, and more. The program also supports instant joining for many games, which means the user can join their friend in the game in the same server with just TWO CLICKS. Xfire also allows users to send in-game messages to other players without joining the game, as it is an independent application.

Xfire logs what games users are playing, how many hours they have played them, and saves other information (such as scores) from game servers. This information can be converted into a PNG image by the server via PHP for every user to use as a signature.

Source : 1up
XFire History from : Wikipedia