Remember when Shane Kim acknowledged that the Project Natal launch would be more like a console launch than a simple peripheral launch, saying, "Conceptually, the launch of Natal will be like the launch of Xbox 360"? Well, 1UP is reporting that, if its sources are correct, the Natal launch will be a new console launch! "Microsoft will not only release Natal as an add-on for the Xbox 360, it will come standard with the next Xbox console," 1UP writes. "Yes, there will be a new Xbox console next fall."

Lest you think this is going to be a simple bundle, Natal camera included, 1UP "heard it will be considered a new platform and carry a new name (Xbox Natal?)." Suddenly, we're reminded of the rumored Valhalla chipset, which would combine the 65nm CPU and 65nm GPU into one superchip, with reduced cooling and power demands. With that, Microsoft could make a smaller – more Wii-esque if you will – Xbox console, perfect for the mainstream consumer.

Incidentally, that chipset is expected sometime around 2010 which is precisely when 1UP pegs the new console's launch: "sources point to next year's Game Developer's Conference as the target for its unveiling and Fall 2010 as the target for release." So, a slightly upgraded Xbox 360 coupled with the Natal camera, targeted towards your parents? Just because we're leaving the speculation there, doesn't mean you have to. Sound off in the comments!

Remember when Jimmy Fallon said he was "going to treat a video game premiere as if it was a movie premiere"? Yeah, we do too. While Punch-Out!! was cute, it didn't quite cut the mustard around here. How about Microsoft's controller-less wunderkind Project Natal? It's such a hot premiere, it's a year early! Eighteen months early? Two years? Who knows, it's early!

Regardless, Fallon's invited Microsoft's own Kudo Tsunoda to show off his sunglasses indoors again (mark our words). But that's not all – he's bringing along a prototype Project Natal camera (see the decidedly unattractive box above) and a demo of Ricochet, the ball-slapping simulator (ahem) they showed off during the E3 keynote. Unfortunately, it's not the best-looking demo we can imagine showing on a 108" display (it's bested by Punch-Out!!) but the tech is what's on display here. Tune in at 12:35pm ET (or thereabouts) to watch for yourself.

[Via Engadget]

Sure, the all-new iPhone 3G S was shown off to throngs of drooling consumers on Monday – wowing the geek-set with its newfound OpenGL ES 2.0 support (your lousy iPhone 3G only supports OpenGL ES 1.1!) – but don't expect id Software's just announced title, Doom Resurrection, to be a 3G S-exclusive. Id's John Carmack told VentureBeat that he's "happy with the faster iPhone 3G S" but "he is also focused on making sure that his games run on the widest number of iPhones." Translation: Doom Resurrection won't be 3G S-exclusive. (Speculation: id could make two versions of Resurrection: one 2.0-compatible and another 1.1-compatible).

But, where were we ... oh, yes! Doom Resurrection! This sure sounds like the "graphical tour de force" he promised to bring to the iPhone. Carmack & Co were able to reuse much of DOOM 3's assets (downsized for the iPhone's screen resolution, of course) and get the engine running at 30 frames per second on the latest iPod Touch. Wrapped around that fancy tech, they've built "eight full levels and about five hours of game play" – the future iPhone 3.0 OS release will also enable "peer-to-peer cooperative multiplayer" for some on-the-go Deathmatch.

One of the most notable takeaways from VB's interview: Carmack's assertion that the iPhone is "a real game platform, not a tiny little toy." He explains that "the iPhone should be better in performance than the Nintendo DS and the PlayStation Portable" in raw horsepower "but the truth is you can't exploit it all because of software inefficiencies." We imagine the newly Open GL ES 2.0-compliant iPhones (gallery below) will ameliorate much of Mr. Carmack's concerns. In the interim, check out how far he's gotten on today's hardware when Doom Resurrection shoots the AppStore in the face next week.

Other possible headlines included:

• Drink Hard: Max Payne grows up to be John McClane
• Max Stain 3: The Filth of Max Payne
• or simply: Max Payne throws up all over his shirt, exclusive pics inside

So, when we first heard that Rockstar Vancouver's Max Payne 3 would deliver a "more world-weary and cynical" Max, chronicling the "downward spiral of his life" in convenient gameplay format, we balked. "More cynical?" we responded. Of course we now realize that the fool-proof formula for creating a character "more cynical" requires taking already cynical Max Payne and removing all regard for hygiene and physical appearance.

Alright, Rockstar. Fair enough. You win on the "more cynical" thing ... now let's see you work this into the gameplay. Maybe a showering minigame? Or escort missions to the dry cleaners. We're just riffin' here ... hey, where are you going?

With Sony's Trophy system coming up on its one-year anniversary this month, we were eager to learn how Sony could enhance the service, leveraging the PlayStation brand and distancing itself from the Xbox 360's Achievements system. So, during E3 last week, we asked Eric Lempel – Director of PlayStation Network Operations – when Trophies would make their way to the PSP, newly invigorated by the PSP Go announcement. Lempel said, bluntly, "You're not going to see Trophies on the PSP."

Now, before you curse his name, hear him out, okay? Lempel explains that "there are a few reasons" you won't see Trophies on PSP and, chief amongst them is "keeping it secure." See ... the PSP has been hacked. A lot. Like, a lot a lot. Lempel says that "if people can artificially inflate their rankings and amounts of Trophies" via the PSP on a shared PlayStation-wide Trophy system then it "kills the whole [Trophy] system," PS3 included. So "keeping it secure, keeping it fair" is the best solution – but that means no Trophies on PSP.

And, since the PSP has that same promised 10-year life cycle (as evidenced most recently by the PSP Go) it'll be some time before we get an entirely new (and ostensibly secure) PSP platform upon which a functioning Trophy system might be grafted. See you in 2015!

Curious how the Xbox 360's recently announced "Games on Demand" service is going to look in your Dashboard? Microsoft made this helpful video, walking you through the entire process. First off: Buying Lego Star Wars: The Complete Saga, for $19.99 (note: no Microsoft Points here, folks). Next: Booting up the already purchased BioShock. Simple as pie, no disc needed. And the cherry on top: Quick Launching Mass Effect from inside BioShock. Looks like a great feature ...

... now, let's talk about those hard drive prices.

When we first saw the year-old leaked footage for Team ICO's third game – then known only as "Trico" – we had only one thought: we really want a kitty dragon. Okay, fine. We had two thoughts. First: we really want a kitty dragon; and second: we wonder what the game looks like now.

Lucky for us, Sony's E3 keynote answered the latter, with a fresh dose of video footage of the game, newly dubbed The Last Guardian. Here's the thing though: the first three and a half minutes of the trailer were shot-for-shot identical to the leak, with obvious visual enhancements and that got us thinking: a video comparison! Our very own Richard Mitchell painstakingly stitched the two videos together above for your enjoyment. On the left: The Last Guardian. On the right: Trico. Bon appétit!

Yahoo reports that Activision filed a lawsuit against Double Fine, developer of the Jack Black-fueled Brütal Legend, on Wednesday to "stop the release" of the game. The mega-publisher claims to have invested "roughly $15 million" into the game's development and that "it still has a valid contract to release the game," despite Double Fine transferring rights to Electronic Arts late last year.

Last February, Electronic Arts responded to Activision's saber rattling saying, "We doubt that Activision would try to sue. That would be like a husband abandoning his family and then suing after his wife meets a better looking guy." Yeah ...

So, to recap:

1. Sierra is subsumed into Activision, following the Activision Blizzard merger
   
2. Activision drops much of Sierra's lineup, including Brütal Legend
   
3. Brütal Legend looks for another publisher, but Activision is "blocking the process"
   
4. EA Partners swoops in as the game's new publisher
5. Activision sues Double Fine (that's this post)
   

Wondering where the in-development Zelda for Wii was at this morning's Nintendo E3 keynote? At an invite-only developers event with Shigeru Miyamoto, the revered designer confirmed that the title wouldn't see release until at least 2010. "We hope to bring it to you next year but it may take a little longer," he said through a translator. "To be honest, at E3 we wanted to announce a new Zelda game for Wii." Unfortunately, that desire didn't earn the title a spot in Nintendo's keynote and it was instead relegated to the developers event. He also said that the title could "possibly" be a Motion Plus exclusive – though if he's not sure, we don't know who would be.

The "announcement" included artwork – we weren't allowed to take pictures of (sorry!) – which was Twilight Princess-esque, featuring Link and a female Zora character. Here's the bad news: the more astute amongst you may remember that Miyamoto took the opportunity at last year's E3 developer's event to reveal a new Pikmin title for Wii in development (not the Wiimake) and, almost a year and two major keynotes later, we've yet to hear about it again.

At a press event last night, Bungie's Joseph Staten teased that the Halo 3: ODST controller's cryptic text should provide some clues into the mysteries of New Mombasa (if he did his job correctly, he said). Since our ability to decipher Bungie's clues has always left something to be desired (what's a Master Chief?), we thought we'd take some close-ups and ask The Internet to give it a shot.

So, The Internet, tell us: what secrets does this controller hold? We'll scrub through your comments and pluck out the best theories, so grab your magnifying glasses and deerstalker caps and get to work!

10:27AM PT We're live at the Shrine Auditorium, waiting to take our seats and begin the ritualistic dance we both know as a "liveblog." Will there be a PS3 price cut? Will it be "PSP Go!" or "PSP D'oh!"? We don't know yet, but you will as we cover Sony's presser live. Follow along with your bingo card and make your Sony predictions in comments!

Follow us live after the break. (Updates are in reverse and begin at the top.)

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Tonight, I got an incredibly brief chance to test out Microsoft's Project Natal camera technology with Peter Molyneux's "Milo," along with three other E3 judges. In the brief time allotted to the group, we experienced many of the same moments shown during Microsoft's keynote earlier in the day: introducing ourselves to Milo, being recognized by Milo, taking a brief walk to the pier, donning a pair of goggles, and running our fingers through the water. Before any of us would interact with Milo, Lionhead's Claire – seen above in a still from the E3 Milo video – had a brief, but natural, exchange with Milo. It began with Milo recognizing her face and addressing her by name.

Once Claire's portion was over, we took Milo out for a spin. For my part, I walked with Milo over to the pier, grabbed the goggles that he threw at me, performatively snatching at the air, having already seen the video during the earlier keynote presentation. To put them "on" I had to make loops with my thumbs and pointer fingers and wrap them around my eyes. A guide on the bottom of the screen instructed me to make them just so. Goggles on, I leaned over the pier and splashed a reflection of myself in the water. I could drag a finger around or make a larger splash with my hand. I could even ripple the water by "lowering" my head towards the screen. And that was about it for my section (see above: brief!). But the most impressive thing I saw happened next.

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Check out the first "poster" artwork for one of Left 4 Dead 2's five levels, titled "The Parish." It's good, fitting nicely into the game's New Orleans setting but ... well, we're not sold on the subtitle. "This time it all goes south"?

How about "The Parish: Pray for survival" ... or "The Parish: Kneel and slay"? No? Not working for you?

We're live from the Microsoft E3 press conference! For all the livebloggin' excitement, hit the break and follow along! Are you using your Microsoft bingo cards at home?

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