The Game Critics Awards are the biggest prize at E3. Selected by a panel of judges from 29 respected publications, they are the bragging right every publisher strives for.

Judges have unprecedented access to games at the show, getting hands-on time with titles that other people might only see demos of – or sometimes just a trailer. It’s a sweet gig (and I say that as someone who served as a judge for several years).

Bragging rights aside, though, how much impact does a Game Critics Award carry?

While Paul McCartney, Ringo Starr and Steven Spielberg turned a lot of heads at Microsoft’s E3 press conference, the name on everyone’s lips as they walked out of the Galen Center was Milo.

Was the star of Peter Molyneux’s Project Natal tech demo pre-rendered? Did the technology work as well as it seemed to in the video he showed? Or were we being subjected once again to Molyneux’s infectious enthusiasm for a project that doesn’t quite live up to our expectations?

During E3, I was able to spend a little time with Milo and see the little guy in action.

We’ll have lots of wrap up coverage of E3 next week, looking at how video games and the mainstream entertainment world are moving closer and closer to convergence. To tide you over until then, here are a few random musings and interesting notes from this year’s show.

A turning point – E3 2009 may be looked upon historically as the moment when everything began to change in (and for) the gaming industry. The widescale introduction of motion controllers could have ramifications far beyond gaming. This won’t be immediate. Other manufacturers are going to let gaming companies work out the kinks. But once the technology is on firm legs, look for it to quickly be adopted elsewhere.

For gaming companies, the introduction of this new control device could very easily extend the life cycle of this generation considerably. (And, given the escalating cost of developing a game, which also keeps retail prices high, that’s good news for everyone.)

A lot has been written about Microsoft's new motion sensing technology "Project Natal," but it's hard to capture the essence of the product with words. 

And then there were three…

Sony today joined the motion sensing controller club, unveiling the PlayStation Motion Controller, a new controller that works in concert with a video camera that it says it plans to launch in the spring of 2010.

It’s a controller that has a lot more in common with Nintendo than Microsoft’s “Project Natal”. A remote works in conjunction with the Sony EyeToy to reflect onscreen movement.

But where Nintendo is chasing the casual audience, Sony has its eye on the hardcore. The company showed several tech demos, including using the controller in a first person shooter context and as a mace, which takes out advancing demons with a swing.

Sony and Microsoft are both offering more advanced devices than the Wii, even when you take the Wii’s forthcoming WiiMotion Plus add on into account. But both are at least a year away from being available – and neither company has the current installed base of the Wii. The Wii, though, lacks the graphical power of the Xbox 360 or PS3. 

Should be an interesting fight when the three start slugging it out.

Ubisoft has added another pair of Hollywood heavyweights to its partner list.

The company, which is currently working with director James Cameron on the gaming tie-in with “Avatar,” announced today it would be working with Steven Spielberg and Kathleen Kennedy of the upcoming “Tintin”. The publisher also will re-team with Peter Jackson, who it worked together with on 2005’s “King Kong”.

“We can create good games, but we are still very junior at creating movies, so why not join forces with the best of the best to make our visions come to life?,” said Yves Guillemot, president and CEO of Ubisoft.

Ubisoft has been beefing up its Hollywood presence significantly in recent years. The company acquired special effects house Hybride Technologies last year. The company also owns a computer animation studio in Montreal called Ubisoft Digital Arts.

Microsoft’s motion sensing controller is real.

The company unveiled Project Natal, a new motion-sensing camera that allows players to control on screen action without any handheld controller at its pre-E3 press conference. It did not, however, give any hint about when the device would be released.

Microsoft says Natal (an internal code name and not the final name of the product) will capture full body motion, in essence reflecting any movement you make on your screen. It will also recognize user’s voices, allowing you to talk with onscreen characters or, if the trailer was to be believed, answer questions in a trivia game vocally, instead of making choosing from pre-selected answers.

“The controller will continue to evolve, but here’s the problem: For far too many people, the controller is a barrier, separating video game players from everyone else,” said Don Mattrick, corporate vice president at Microsoft. “We asked ourselves: Can we go beyond the controller? Can we make you the controller?”

Natal uses hand swipes to navigate the Xbox Live dashboard, much like like Tom Cruise made in the film “Minority Report”. Microsoft showed several live demonstrations of tech demos, all of which seemed a bit rudimentary.

One had an employee trying to break bricks with a series of rubber balls (that came rocketing back at her). Another was a Jackson Pollock-inspired painting demo.

The most intriguing demo was called “Project Milo”. Shown on video – not live – it demonstrated a realistic-looking boy who spoke and played with the player.

“What we want to create is a connection to our world – and that’s what I believe Natal does,” said Peter Molyneux, president of Lionhead Studios, which made the demo. “It will change the landscape of games we play.”

I’m expecting to get some hands-on time with Milo before the show is over. I’ll post impressions after I’ve digested it.

Whenever it comes out, Project Natal will work with all existing and future Xbox 360s.

“We can leap into a new era of interactive entertainment without having to launch a new console,” said Mattrick.

Among the fans of Project Natal is director Steven Spielberg, who first saw the peripheral two months ago and came out to endorse the project.

“Despite the size of the industry, 60 percent of households do not have a video game console,” he said. “Don and I have always agreed that the way to bring games to everybody is to make the technology invisible.

“I think what Microsoft is doing is not about reinventing the wheel, it’s about no wheel at all.”

It’s definitely interesting – but Natal seems a long way from being ready for prime time based on the demos shown today.

Microsoft took pains to further position the Xbox 360 as an entertainment hub at its pre-E3 press conference today.

The company announced several new partnerships with Facebook, Twitter and last.fm – all set to begin this fall. It also announced plans to beef up the quality of its video content, with all HD movies and television shows in its 18,000 title collection being made available in 1008p this fall.

Additionally, it will no longer require users to download a film before they can begin watching. A new “instant on” feature will allow purchases to begin playing immediately.

Microsoft also plans to extend the number of countries it offers the content in from eight to 18.

The changes will take place as Microsoft begins integrating that portion of Xbox Live with the upcoming Zune HD. 

Microsoft and Sony have been competing for film and movies fans as fiercely as they have been for gamers this generation. Both companies believe the key to becoming an indispensible part of the living room is to appeal to all members of the family, including the ones they can't convert into gamers.  

Also this fall, Facebook and Twitter users will be able to update their status via the Xbox 360, as well as track friends’s updates, photos, etc. Players will also be able to instantly post screenshots from games they are playing starting with the release of the new “Tiger Woods”. The other features will go live this fall.

The last.fm partnership, which will also go live this fall (sensing the trend?), will be another part of the integration with Microsoft’s Zune HD. The service will let users stream music through their Xbox and will be free to Xbox Live gold subscribers.

 

As we prepare for the E3 madness to begin, there are some interesting nuggets of information floating about. None are necessarily long enough to warrant their own entry, so here, in easy to digest bullet points, are the whispers we’re currently hearing.

• Hope “God of War 3” isn’t on your holiday wish list. Despite widespread assumptions that the game is due this year, word now is that it has been pushed to 2010 (as has the next “Gran Turismo”). We may get official confirmation of this tomorrow at Sony’s press conference. 
• Microsoft’s press event later today will be star-filled. Tony Hawk will be there to demo (big shock here) “Tony Hawk Ride”. The big news is Microsoft’s surprise guest who will kick off the conference. I don’t want to ruin the surprise, but I will say the guest musical in nature – and is likely to “Help!” demo a hotly anticipated game from Harmonix. 
  • Update. Yep, they showed up. Paul McCartney, Ringo Starr, Yoko Ono and Olivia Harrison reunited on stage to promote “The Beatles: Rock Band” - but they didn't play the game. “The game is good. The graphics are very good. And we were great!,” joked Starr. “Who would have ever thought we’d end up as androids?” added McCartney  
• From Joystiq comes word that the DLC for “Batman: Arkham Asylum” that will allow PS3 owners to play as the Joker will be free. That’s a nice incentive for players and could give the PS3 version the upper hand when the game comes out later this year. 
• “Starcraft 2” is reportedly looking great – and will be on shelves this year. Activision showed the game to analysts last night, who walked away impressed. Blizzard announced that it hopes to ship the game in calendar 2009, which should be a huge boost to Activision’s bottom line. The beta kicks off this summer.

A week from today, we’ll be hip deep in news from E3, the annual trade show of the video game industry. Some of the surprises have already leaked out. Some are still rumor. And some will remain mysteries until they’re formally announced.

We at The Cut Scene love a good guessing game as much as anybody, so after the cut, you’ll find a roundup of what we’re expecting to hear at this year’s show, a few things we’d like to hear and a couple things we probably won't hear.

It’s an open game. Are you pining for a particular piece of news from the show? Got a bold prediction? Share it below in the comments section!

Sony's much rumored motion sensing controller for the Playstation 3 is real and it will likely be unveiled at E3.

That's what I've been hearing from several sources, one of whom has seen the device and two of whom are familiar with Sony's plans to show it at E3 next month.

Rumors that Sony will come out with a motion sensing device have abounded for over two years, ever since a patent was first reported on in January of 2007.

A good source saw a working prototype several months ago that largely fit what was in the patent. Sony's controller apparently used LEDs (light emitting diodes, essentially little electric light sources) and a small webcam to track the device's movements. Because the camera can read different color lights and the shape and angle of each light, it's much more accurate than the Wii-mote. It can track precise movements, including along the Z axis (pushing toward and away from the TV; something the Wii is really bad at) as well as velocity.

As Kombo.com reported last month, Sony is apparently reaching out to select developers and publishers to get some early software coming.

I'm not sure when the device will be unveiled (later this year or mid-next year, I'd think given the E3 timing) or what software will initially be available. Or even what it will look like (the prototype apparently looks kinda funky with a bulb to house the LEDs on the end). But apparently we'll find out the answers soon.

It will be the second new product shown by Sony at E3, if 1UP's report about a new PSP that will only play downloadable content proves accurate.

A Sony rep declined to comment.

Update: As some astute readers have pointed out, the PS3 of course does have a motion sensing controller already. But this new one will be much more advanced than the Sixaxis and more in the shape of a stick, a la Nintendo's Wii-mote.

Details on E3 2009 are here. It's no longer a "summit." It's officiall an "expo" again. It's bigger -- almost as big as it was back in 2006 -- but still no public allowed in (so this prediction was wrong). However, ESA president Mike Gallgher tells me the booths won't be quite as big as they used to be and they're keeping the suites for press and investors to do private meetings, which were perhaps the one good part of E3 2008.

Apparently it was very important to the ESA to make clear that the people who didn't like this year's downsized and dour E3 are pleased about the changes:

Electronic Arts CEO John Riccitiello in July: "I hate E3 like this."
John Riccitiello in the ESA's press release announcing the new E3: "The E3 Expo will be the pre-eminent North American gaming show next year. The new, larger event is better for industry leaders and for serious gamers."

Ubisoft North America President Laurent Detoc in July: "E3 this year is terrible. The world used to come to E3. Now it's like a pipe-fitters show in the basement."
Laurent Detoc in the ESA's press release announcing the new E3: "The video game business will be twice as big in 2009 as it was in 2006 when we had the last real E3 Expo - so get ready for some fireworks! The changes made will ensure that the 2009 E3 Expo conveys the best of what makes us proud as entertainment leaders."

Still remaining to be seen: Will the publishers that dropped out of the ESA this past year, including Activision Blizzard and LucasArts, be part of E3 next year? Gallagher took pains to make clear that non-members are invited to participate.

We all know that E3 didn't go too well this summer. We all know that E for All was far from a mob scene.  We know that IDG runs both E3 and E for All. We know that Kotaku has reported that the ESA is considering opening up E3 to the public next year. Asked about the future of E for All, an IDG rep said that the company would have announcements about future events soon.

Given all that, it seems entirely logical to me that IDG and the ESA will be announcing they are merging the two events in some way next summer. Maybe they'll say it's E3 for the industry for a day or two and then open it up to the public and call it E for All for a few days. Maybe it'll be E for All in one public section and E3 in a separate private section. Either way, it's essentially killing off the unsuccessful E for All expo and improving the troubled E3 by making it a Tokyo Game Show or Leipzig-like partially public event. But it sounds nicer by saying they're merging, doesn't it?

Of course, maybe I'm totally wrong. This is just an educated guess.

I don't think I ever actually noted on here that I was one of the 36 videogame writers who voted for the "Best of E3" awards announced last week, but indeed I was. (The full winner's list is here.)

Given that I have found my taste to be a bit eclectic compared to many game writers (Last year I championed "The Simpsons Game," didn't lavish superlatives on "Super Mario Galaxy," and didn't much enjoy "Mass Effect." Though I did love "Portal" and "Bioshock" and "Rock Band" -- I'm not completely out there), it's perhaps not surprising that very few of my votes were the games that won. In fact of the 11 categories in which I voted, I only picked two of the winners. Just by pure chance I should have done at least a little better. (Those two winners were "Spore" as best PC game and "Pure" as best racing game.)

That being said, I wasn't offended by most of the choices either. "Fallout 3," "LittleBigPlanet," "Dead Space" and "Left4Dead" are all really good games with the potential, based on the limited time I got to see them, to be fantastic.

The only winner I really disagreed with was "Mirror's Edge" for best original game. To me it seemed more gimmicky (A hot chick in the future who does parkour!) than substantive to me, the first person perspective really didn't work for a game where you're trying to manipulate a character through complex spatial puzzles, and the challenge often felt more about timing (can you jump off this ledge with enough speed at the very last second?) than brains.

I also couldn't bring myself to vote for "Gears of War 2" for Best Action Game not because it's bad in any way, but because it's so "Gears of War 1.5." The improvements are so minor over "Gears 2" that I was really surprised to see my fellow critics pick it over "Resistance 2," which strikes me as a much  more dramatic leap forward in campaign and multi-player. (I felt the same way about "Rock Band 2," which looks awesome but is, by Harmonix's own admission, really "Rock Band 1.5.")

My biggest disappointment, however, is that my favorite game at E3 didn't get a single award at all. I'm talking about "Fable 2." Speaking as someone who found the first "Fable" to be a colossal disappointment, I think "Fable 2" looks like it really will deliver on developer Peter Molyneux's promises. The combat system is amazingly simple, but can be leveled up in complex ways for those who care. The open-world roleplaying elements look like they're really tightly integrated into the story, rather than being utterly pointless like in "Fable" 1. The drop-in co-op is pretty damned cool. The human interactions, from multiple gay marriages to public druknenness, seem really fun. There are some wonderful but not overbearing references to the first "Fable." And I love that this week's downloadable "pub games" let players earn money to use later in the game -- Molyneux even said that his studio Lionhead is making an SDK available so others can make games that integrate into the "Fable 2" world.

Of course half an hour or less of hands-on time at E3 only tells you so much. I could reverse myself on every one of these opinions when I finally play the games. But based on my takes so far, it looks like I may be in a minority once again this fall.

Update: Commenter Eric makes an excellent point below: "You said the 1st person perspective "doesn't work for a game trying to manipulate a character through complex spatial puzzles." Isn't that exactly what Portal is?" I guess a more precise description would be that my problem with "Mirror's Edge" is that the character is climbing, jumping, etc. while moving at a very fast pace. I found it really difficult to figure out exactly where she is in the environment in the first person view, which made it tough figure out if I'm precisely lined up for to jump or climb in the right place while running. In "Portal" on the other hand,  you can usually take as much time as you need to look around the room, line yourself up for things, etc. And since you often have to fire precise shots, the first person view is helpful. Based on the 15 or 20 minutes I played, it's not so helpful in "Mirror's Edge." I really felt like I needed a broader view with my character as part of it.

Last week at the end of E3 I wrote a piece for weekly Variety about how empty the LA Convention Center was, how publishing executives were telling me the show was pointless, and developers were complaining it's no longer any fun.

Personally, I still found it to be a pretty useful place to do interviews and see upcoming games (the former useful as a reporter, the latter as a critic). It was kind of overwhelming for me, because I'm only one man and I had to do EVERYTHING for Variety at the show. But of course it was just plain eerie to walk through empty hallways and into an empty men's room (at a video game industry convention!) and there was literally zero buzz or excitement in the air. Which is odd and disappointing for such an exciting industry.

Two years ago, publishers complained that it wasn't worth it to spend millions of dollars on booths to impress press, industry insiders, and hangers on. This year they're complaining the show isn't useful enough and everyone else is claiming it's no longer fun or exciting.

Given all that, I'm very partial to the option I've heard people talking about, and which Kotaku posted about yesterday, that would turn E3 into a dual public/private show -- either there's a "VIP" area to do business meetings and press previews and a large public display area, a la the Leipzig Game Convention, or a day or two open just to invited guests and press before the doors are thrown open for the public, a la the Tokyo Games Show.

Essentially, there would be an "E3 Business and Media Summit," as they have called it the past two years, for some of us, and an "E3 Electronic Entertainment Expo," as they used to call it, for the whole wide world.

That would give the press and industry insiders time and space to do business, but also incentivize the publishers to spend money on big exciting displays, since they'll be able to use them as marketing tools for the public who actually guys their games.

It would also have the added benefit of probably killing off the awkward ESA-endorsed E for All show in October, which last year was even less exciting than this year's E3.

Tired of hearing what all the developers and executives at E3 had to say about their games? Dying to know what Hollywood's C-list elite like Vida Guerra and Rashad McCants thinks about the videogames that they mostly don't play? GameSpot brought them all together for its E3 "hot spot" party last Tuesday in Hollywood and Comedy.com's Glitch in the System was on the scene with a burning question: Do any of the celebs on the red carpet know what GameSpot is?

Source: Comedy.com

...was without a doubt the drums for Konami's "Rock Revolution." Others have commented on whether this drum set is good enough to be remotely competitive against "Rock Band 2" and "Guitar Hero: World Tour," but I'll just say that the noise of these things is truly annoying.

As soon as I walked in the Konami booth, it was like hearing wood snapping against solid plastic over and over and over. It's overwhelming and headache-inducing. For anyone who thought the "Rock Band" drums annoyed the neighbors... they've got nothing on these babies, which sound like you're pounding the wall. Especially at a time when Harmonix is focused on making the drums for "Rock Band 2" quieter, this design is not promising for anyone who won't be playing "Rock Revolution" at a farm where they live alone.

Today, as promised, I got more details on Bungie's fight with Microsoft that led to the Xbox 360 maker completely omitting new "Halo" projects from its Monday E3 press conference and the developer canceling its planned announcement of a new game on Wednesday. (If you want full background on the imbroglio combined with what I'm reporting now, read my story in today's Daily Variety)

What was the reason for all the fussing and the feuding? According to a source very close to one of the companies involved, Microsoft was seriously peeved that Bungie was making its own plans to announce its new game on Wednesday at E3.

Even though Bungie's now an independent company, Microsoft is still its publisher and apparently wants to be in charge of PR strategy, especially when it comes to major new game announcements. While that may not be the only cause of tension, I'm told it has been the major issue in the past week and is what precipitated Xbox head Don Mattrick's decision to omit all references to new "Halo" projects on Monday, even "Halo Wars" (which Bungie isn't even developing and is being shown at Microsoft's booth). And it's also, of course, the reason why Microsoft (the mysterious "publisher" in Bungie president Harold Ryan's Tuesday website posting) forced the developer to delay plans to announce its new game.

The view within Microsoft, however, is that Bungie made a premature promise to announce something new at E3 and is now trying to shift the blame.

Going forward, of course, this leaves both sides in an awkward position. Don Mattrick and Harold Ryan are not the best of buddies right now, to say the least.

But it seems like they have to work something out. Microsoft is still Bungie's publisher and owns a minority stake in the studio. And it would be a PR disaster of major proportions for Microsoft if it pissed off Bungie enough that the studio that created "Halo" stopped even consulting on future incarnations.

There has been lots of other relevant reporting on this topic elsewhere today. MTV Multi-player has Don Mattrick saying that Bungie is working on a new "Halo" game It's not clear exactly what that means (is it solely developing? Helping another developer?), but it's definitely my understanding that Bungie's plan on Wednesday was to announce an original project, not another "Halo" spin-off or sequel.

The L.A. Times quotes Don Mattrick saying that "Halo" was cut from the Monday presser simply due to time concerns. I think it's safe to say he's being less than totally forthright. It's possible, if doubtful, that Microsoft just couldn't fit a demo of "Halo Wars," one of its biggest first party titles coming out in the next year, in the 90 minute event.  But the fact that "Halo Wars" was never even mentioned, nor was the mysterious project Multi-Player reported, is conclusive proof in my mind that something else is going on.

The Times also quotes Mattrick comparing the absence of "Halo" to the absence of the "Grand Theft Auto IV" downloadable content from the press conference. But while neither got a demo, I have it here in my notes that some exec at the press conference specifically mentioned that the "GTA IV" episode is coming "later this year." That's more love than any new games with the word "Halo" in the title got.

Finally, the Times implied that Ryan's assertion that Bungie's publisher canceled the planned project announcement was referring to the absence of "Halo" from the Monday press conference. It is quite possible Microsoft was going to announce a new "Halo" game (that Bungie is perhaps working on, per Multi-Player) at Monday's press event and then pulled it.  But I know for a fact that Ryan was referring to an announcement planned for Wednesday and I'm pretty sure that it was non-"Halo."

...was definitely Harmonix CEO Alex Rigopulos standing in the back of the balcony of the Orpheum theater with a big grin all throughout the "Rock Band" concert featuring The Who. (who are, I finally appreciated tonight, just as amazing as my mother and uncle always told me)

Today at E3 I got to demo Microsoft and iNiS' upcoming karaoke game "Lips" and got some more details on the innovative new feature that will let players import songs from their iPod (or Zune, as Microsoft keeps reminding us) into the game.

It turns out the game can handle any DRM-free music file, which is really impressive. iNiS' Chief Creative Officer Keiichi Yano also promised there will be a cool solution to the question of showing lyrics to the song on screen, though he didn't provide details. (I would imagine it's a deal with Gracenote or another online music database)

Being a business reporter as well as a videogame critic, my thoughts immediately went to the financial end of this -- if the game can import any MP3, that means Microsoft doesn't have to have a licensing arrangement with the song's label or publisher. Meaning Microsoft doesn't have to pay the people who made the music. Yano confirmed this for me.

Activision and MTV certainly pay labels and publishers for the songs in "Guitar Hero" and "Rock Band," as does for "Singstar." I would also imagine that Microsoft is paying the rights holders for all songs included on the "Lips" disc, as well as any downloadable content.

Microsoft has some good lawyers, so I'm sure they're comfortable with the idea that they can legally use any song that users already own (regardless of where they got it) in the game. But it's not clear to me that the music industry would be cool with this arrangement. On the contrary, in fact, labels are increasingly looking to videogame as a source of revenue growth. They expect to make money when their songs are used in games.

And on the face of it, it doesn't seem like there's a reason why the source of the music (my iPod vs the game disc) should effect who gets paid. Half the people who bought "Guitar Hero: Aerosmith" may already own lots of Aerosmith CDs, but that doesn't mean Activision got out of paying to use the songs. Making the song into a game is arguably a transformative use for commercial gain.

I'm not saying I think Microsoft should have to pay. But based on everything I know about the music industry, I would think they won't be pleased that "Lips" owners can use their songs in the game for free. This is definitely something I'll be looking into more.

Many of you may have already seen the note on Bungie's website where President Harold Ryan said the newly independent development studio behind "Halo" had been planning to reveal "something exciting" it has been working on but that those plans "were just changed by our publisher."

Ryan didn't provide any more details, but I can shed a little light. The publisher in question is Microsoft. Bungie Studios has apparently had a conflict with Microsoft that let to the decision to excise any reference to new "Halo" products, even 2009's "Halo Wars"  or the mysterious Peter Jackson project, from Microsoft's press conference on Monday (an absence that surprised many gamers and observers). My understanding is that that call was made very recently, as in the past few days.

Separate from Microsoft's press conference, however, Bungie was planning to take the wraps off its first original, post-"Halo" project today (Wednesday). But the dispute with Microsoft apparently put the kibosh on those plans as well. That decision was made on Tuesday evening, just a few hours before Ryan posted his note.

This is all a bit hazy, of course. Assuming that Bungie's stake in any future "Halo" projects was clearly spelled out in the deal where it divested itself last year, what could the conflict have been that led to Microsoft choosing to not even discuss future plans for its top franchise? And given how massive the interest in anything new that Bungie is making would be, what kind of a fight could lead to those involved not wanting to announce it at E3?

I don't know the answers, at least not yet. But I'll keep reporting this in the days to come and will hopefully find out more. I should also note that I haven't yet reached anyone from Microsoft to comment and a spokesperson for Bungie didn't have anything to say.

There was only one real piece of news (as in something interesting that we didn't expect) at Nintendo's press conference this morning, but it was a doozy: Rockstar is making a new "Grand Theft Auto" game exclusively for the DS called "Grand Theft Auto: Chinatown Wars."

It's the first time the uber-popular "GTA" franchise has come to a Nintendo system since 2004's "Grand Theft Auto Advance" for the Game Boy and it's a coming together many of us thought would never happen again, since the Nintendo audience tends to skew younger than Rockstar's and its consoles don't have the processing power that "GTA 4" demanded.

But there's no ignoring the massive install base of the DS, which Nintendo says will hit nearly 100 million by March. Sure, lots of kids and older players who aren't into "GTA" have a DS. But pretty much every core gamer has one as well these days. So there's no reason Rockstar make an M-rated game and target them.

Parent company Take-Two Interactive has got to be excited. It's coming off the huge "Grand Theft Auto IV" launch and has the first downloadable content promises for the end of this year. Then there's yet another piece of "GTA" content coming next winter -- and it's for a platform with a bigger install base than the Playstation 3 and Xbox 360 combined. That means it's at least a year until Take-Two has to worry about not having any new "GTA" content on the immediate horizon, which will please Strauss Zelnick and his investors.

Details thus far are light, though the game is coming out this Winter. Rockstar promises it's a wholly original story in which "players will navigate their way through the streets as they uncover the truth behind an epic tale of crime and corruption within the Triad crime syndicate." Despite the DS's lack of  power compared to even the PSP, Rockstar says "Chinatown Wars" will have the same "unprecedented amount of depth" that "GTA" games are known for and will also take full advantage of the handheld console's touch screen.

Game is being developed by Rockstar Leeds, which also made the PSP spin-offs "Vice City Stories" and "Liberty City Stories."

(This story previously said "Chinatown Wars" will be the first "GTA" game ever on a Nintendo console. As a few commenters pointed out, that was wrong. That was my bad for blogging in a rush during E3 madness and not doing enough research.)

This definitely goes in the category of speculation... But today at lunch I was talking pricing strategy with Dennis Durkin, the the CFO of MIcrosoft's videogame business, and asked him why the company decided now wasn't a good time to cut the console's price (instead it just increased the storage available for $350).

His response: "Price cuts in the summer are not generally impactful."

So it's not a matter of Microsoft thinking $350 is the right price for console all year? It's just a matter of what the right price is for the summer? The logical conclusion, of course, is that a price cut is quite possible this fall. Certainly, if Microsoft is planning to cut the price of the Xbox 360, Durkin was stating that's when they would do it.

So, for those of us surprised that Microsoft didn't make a bold change in the price of the 360 -- maybe we should reserve judgment. More could be coming soon.

Running in tomorrow's Daily Variety but online now:

Capcom is making a "Lost Planet" movie. The publisher is teaming up with producer Avi Arad, who used to run Marvel Pictures, and has a distribution deal with Warner Bros.

David Hayter, who wrote two "X-Men" movies and the upcoming adaptation of "Watchmen," and who of course we gamers know as the voice of Solid Snake in "Metal Gear Solid," is writing the script.

Arad is producing with his son Ari and partner Steven Paul through Seaside Entertainment, a production company they formed to make fantasy and sci-fi fare.

Capcom has been the busiest vidgame publisher in terms of adapting movies. It's got a fourth "Resident Evil" in the works with Sony, "Onimusha" with Paramount, and the new "Street Fighter" with Hyde Park (Fox is distributing). As with "Street Fighter," Capcom is expected to co-finance the "Lost Planet" movie. It's not clear yet if Warner Bros. will be kicking in the rest of the money or someone else.

Though the story was pretty cliched in the game, "Lost Planet" at least has one, as well as a cool visual setting (shades of Hoth), so there's no reason it couldn't be a good movie. On its face it certainly is a much more obvious adaptation than "Street Fighter."

No word on when the movie's coming out, though whenever it is, I'd say it's a safe bet it'll be along with the inevitable "Lost Planet 2." (Just as "Street Fighter IV" is probably coming out with the movie next winter)

Not to ruin any surprises, but for anyone wondering what's going to be the big announcement at Capcom's E3 press conference on Tuesday... now you know.

MTV unveiled the entire set list for "Rock Band 2" today. You've got the first videogame appearance of AC/DC and Bob Dylan, as well as a debut track from Guns N Roses' new album "Chinese Democracy."

And they revealed that in addition to working with all previous downloaded content, "Rock Band 2" will be able to import "most" of the songs from the original "Rock Band" disc. (Why not all? Hopefully we'll find out)

Check it out:

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

	Artist	Song       Title	Decade
1.	AC/DC	“Let There Be       Rock”	1970s
2.	AFI	“Girl’s Gone       Grey”	2000’s
3.	Alanis       Morissette	“You Oughta       Know”	1990’s
4.	Alice in       Chains	“Man in the       Box”	1990’s
5.	Allman       Brothers	“Ramblin’       Man”	1970’s
6.	Avenged       Sevenfold	“Almost       Easy”	2000’s
7.	Bad       Company	“Shooting       Star”	1970’s
8.	Beastie       Boys	“So Whatcha       Want”	1990’s
9.	Beck	“E-Pro”	2000’s
10.	Bikini Kill	“Rebel       Girl”	1990’s
11.	Billy       Idol	“White Wedding Pt.       I”	1980’s
12.	Blondie	“One Way or       Another”	1970’s
13.	Bob     Dylan	“Tangled Up in       Blue”	1970’s
14.	Bon     Jovi	“Livin’ on a       Prayer”	1980’s
15.	Cheap       Trick	“Hello       There”	1970’s
16.	Devo	“Uncontrollable       Urge”	1980’s
17.	Dinosaur Jr.	“Feel the       Pain”	1990’s
18.	Disturbed	“Down with the       Sickness”	2000’s
19.	Dream       Theater	“Panic       Attack”	2000’s
20.	Duran       Duran	“Hungry Like the       Wolf”	1980’s
21.	Elvis       Costello	“Pump It       Up”	1970’s
22.	Fleetwood       Mac	“Go Your Own       Way”	1970’s
23.	Foo       Fighters	“Everlong”	1990’s
24.	Guns N’       Roses	“Shackler’s       Revenge”	2000’s
25.	Interpol	“PDA”	2000’s
26.	Jane’s       Addiction	“Mountain       Song”	1980’s
27.	Jethro       Tull	“Aqualung”	1970’s
28.	Jimmy Eat       World	“The       Middle”	2000’s
29.	Joan     Jett	“Bad       Reputation”	1980’s
30.	Journey	“Anyway You Want       It”	1970’s
31.	Judas       Priest	“Painkiller”	1990’s
32.	Kansas	“Carry On Wayward       Son”	1970’s
33.	L7	“Pretend We’re       Dead”	1990’s
34.	Lacuna       Coil	“Our       Truth”	2000’s
35.	Linkin       Park	“One Step       Closer”	2000’s
36.	Lit	“My Own Worst       Enemy”	1990’s
37.	Lush	“De-Luxe”	1990’s
38.	Mastodon	“Colony of       Birchmen”	2000’s
39.	Megadeth	“Peace       Sells”	1980’s
40.	Metallica	“Battery”	1980’s
41.	Mighty Mighty       Bosstones	“Where’d You       Go”	1990’s
42.	Modest       Mouse	“Float       On”	2000’s
43.	Motorhead	“Ace of       Spades”	1980’s
44.	Nirvana	“Drain       You”	1990’s
45.	Norman       Greenbaum	“Spirit in the       Sky”	1960’s
46.	Panic at the       Disco	“Nine in the       Afternoon”	2000’s
47.	Paramore	“That’s What You       Get”	2000’s
48.	Pearl     Jam	“Alive”	1990’s
49.	Presidents of the       USA	“Lump”	1990’s
50.	Rage Against the       Machine	“Testify”	1990’s
51.	Ratt	“Round &       Round”	1980’s
52.	Red Hot Chili       Peppers	“Give it       Away”	1990’s
53.	Rise       Against	“Give it       All”	2000’s
54.	Rush	“The       Trees”	1970’s
55.	Silversun       Pickups	“Lazy       Eye”	2000’s
56.	Smashing       Pumpkins	“Today”	1990’s
57.	Social       Distortion	“I Was       Wrong”	1990’s
58.	Sonic       Youth	“Teenage       Riot”	1980’s
59.	Soundgarden	“Spoonman”	1990’s
60.	Squeeze	“Cool for       Cats”	1970’s
61.	Steely       Dan	“Bodhitsattva”	1970’s
62.	Steve Miller       Band	“Rock’n       Me”	1970’s
63.	Survivor	“Eye of the       Tiger”	1980’s
64.	System of a       Down	“Chop       Suey”	2000’s
65.	Talking       Heads	“Psycho       Killer”	1970’s
66.	Tenacious       D	“Master       Exploder”	2000’s
67.	Testament	“Souls of       Black”	1990’s
68.	The       Donnas	“New Kid in       School”	2000’s
69.	The       Go-Go’s	“We Got the       Beat”	1980’s
70.	The Grateful       Dead	“Alabama       Getaway”	1980’s
71.	The Guess       Who	“American       Woman”	1970’s
72.	The     Muffs	“Kids in America”	1990’s
73.	The       Offspring	“Come Out & Play (Keep ‘em       Separated)”	1990’s
74.	The       Replacements	“Alex       Chilton”	1980’s
75.	The     Who	“Pinball       Wizard”	1960’s
	Bonus       Artist	Bonus Song       Title	Decade
76.	Abnormality	“Visions”	2000’s
77.	Anarchy       Club	“Get       Clean”	2000’s
78.	Bang       Camaro	“Night       Lies”	2000’s
79.	Breaking       Wheel	“Shoulder to the       Plow”	2000’s
80.	The       Libyans	“Neighborhood”	2000’s
81.	The Main       Drag	“A Jagged Gorgeous       Winter”	2000’s
82.	Speck	“Conventional       Lover”	2000’s
83.	The       Sterns	“Supreme       Girl”	2000’s
84.	That Handsome       Devil	“Rob the       Prez-O-Dent”	2000’s

From the perspective of videogames meeting traditional entertainment, I think the most intriguing news from Microsoft today was its partnership with Endemol to make an interactive version of "1 vs. 100."

No, not the idea of turning a game show into a videogame. That's been done.

But what's really interesting is that Microsoft is "programming" primetime "1 vs. 100" events. It's essentially a massively multi-player casual game and it only happens at certain times. It's part of a new tab in the Xbox Live interface called "Xbox Primetime."

So at 8 PM on a Thursday, for instance, thousands of people sign on to play as the one, the 100 (though I imagine it's more than 100 online), or watch in the audience. Everyone is playing together. There's even a  host who will run the game and respond live to what's going on. I'd call it a massively multi-player casual game.

I spoke to Xbox Live head John Schappert about it and he threw out scenarios like an 8 PM game focused on sports trivia and then one at 9 focused on entertainment.

Microsoft hasn't yet announced a business model for "1 vs. 100," which launches this fall along with the update to Xbox Live. But Schappert definitely didn't dissuade the suggestion that it will be advertiser supported. Given that this is a programmed event, it seems like the best opportunity I've seen for free, advertiser-supported gaming.

I don't know what Endemol's deal is with Microsoft, but this is an obvious strategy for any media company with a property that has options for huge numbers of people to interact. A live interactive version of "1 vs. 100" is much, much more compelling than playing a disc-based game on your own with canned responses from the host.

I think what's most innovative about "1 vs. 100" is that it's PROGRAMMED. Consider the fact that as more and more people get DVRs and watch video online, TV is becoming increasingly less programmed. And here videogames are becoming MORE programmed. If you have a DVR, there's really no reason to watch TV at 8 PM, unless it's a live sporting event. But now, for the first time, there's a really good reason to play a videogame at 8PM.

"1 vs. 100" is part of an entire new section of Xbox Live called Xbox Primetime, so we can expect to see more games with live events like this. And having a captive audience at a certain time is a fantastic way for Microsoft to sell advertising on Xbox Live and rapidly grow that revenue stream.

Microsoft unleashed a few new stats and predictions at its press conference today:

-Videogames head Don Mattrick confidently predicted that "Xbox 360 will sell more consoles worldwide this generation than Playstation 3." No mention of Nintendo, as the Wii is already surpassing the 360 despite launching a year later.

-Since the launch of the 360 in late 2006, Microsoft has made more than $1 billion in revenue from Xbox Live. That includes subscriptions for $5 per month / $50 per year as well as downloadable games and videos.

-Movies and TV shows account for more than 1/3 of paid downloads on Xbox Live in the U.S.

The list of studios and networks NOT on Xbox Live got even shorter today as NBC Universal has signed up to offers its tv shows. The only major studios not on there now are Twentieth Century Fox (though Fox TV shows are on there) and, for obvious reasons, Sony Pictures. And now every major television network is on Xbox Live.

Microsoft also today finally unveiled the partnership with Netflix that we all knew was coming. As expected, Netflix subscribers will be able to get movies available to "watch instantly" via the Internet on a PC on the Xbox 360. The one unexpected feature is that users can share the movie with friends so they can watch together. The friends do have to be Netflix subscribers, though, which isn't quite as cool as I had initially hoped.

It's all part of a huge redesign of Xbox Live that appears to make the service a bit easier and more intuitive to navigage, while also adding more features. Picture on right was borrowd from Kotaku, so thanks to them for managing to grab that.

It also integrates online avatars which can represents users in their profiles, in parties friends can form to play together and chat, and even in some new games (such as the previously mentioned "Scene It: Box Office Smash"). Color me a bit skeptical about these rip-offs of Nintendo's Mii's. Especially for the hard core fan base of the 360, which I'm guessing won't want to have a cartoon replica of themselves online.

But I asked Live head John Schappert about that over lunch with some Microsoft execs and he said there will be options that appeal to more core gamers, like the ability to dress up your avatar in the outfit of a game character like Master Chief, Dom from "Gears of War," etc. (Those are just examples, not promises).

The first news from today's Microsoft press conference at E3 is the new game announcements. More posts coming very (very) soon on the new features in Xbox Live, new video partners, and the long awaited Netflix partnership:

Since all of the biggest console titles ("Gears 2," "Fable 2," "Rock Band 2," "Resident Evil 5" <wow that's a lot of sequels>) have been previously reported, I thought the most exciting announcements were actually on the downloadable side, so let's start with the new titles for Xbox Live Arcade:

-A new "South Park" game. Literally no details besides an announcement that it's coming in 2009, but given how popular "South Park" episodes are on Xbox Live Video Marketplace and how often I hear random players on Xbox Live quoting episodes, this seems like almost a no brainer hit. Especially if they manage to capture teh show's humor at least as well as "The Simpsons Game" did.

-"Portal: Still Alive." A sequel to the best videogame of 2007 (I don't know if I've ever said that on this blog, but that's my call) coming later this year as a download. According to Glados, whose voice showed up at the press conference, there will be new levels and achievements. I do hope that in addition to new challenges, it will also expand the original game's awesome story.

-Sequels to "Geometry Wars" and "Galaga Legions," both coming this year as well.

And the new console games:

-"Lips." As I reported (with a lot of help from Kotaku) last week, there's a new music game exclusively for 360. It's a karaoke title made by "Elite Beat Agents" developers iNiS and lets players import music from an iPod or Zune into the game. Not sure exactly how that'll work, but if it can really make any song work, that'll be amazing. Or maybe it's only songs that have been pre-cleared for "Lips?"

-"You're in the Movies." Players use the Xbox Live camera to move around in mini-games where they do things like run, swat away bugs, dance, etc. Then the game puts those video clips in a trailer for a B movie with totally different context. The resulting videos can be shared online. Could be an amusing party game. Was certainly amusing to watch Microsoft execs like Don Mattrick and Shane Kim play.

-"Scene It: Box Office Smash." A new "Scene It" trivia game focused on movies that uses those little remotes that Microsoft introduced at E3 last year.

Its press conference isn't until tomorrow, but the first notable news of E3 actually comes from Nintendo.

The Japanese gaming giant has addressed one of the top concerns of many Wii players -- that the Wii-mote just isn't very accurate. That makes it impossible to have an awesome swordfighting or even cooking (yes, I love my "Cooking Mama") game where your movements are exactly tracked on screen. Instead, the Wii just gets the gist of your movements... sometimes, which can cause a lot of frustration.

Not anymore, Nintendo is promising. It just posted a sneak preview on its website of the "Wii MotionPlus," a plug-in (pictured left) for the Wiimote that, well, let's let Nintendo say what it does:

The Wii MotionPlus       accessory attaches to the end of the Wii Remote and, combined with the       accelerometer and the sensor bar, allows for more comprehensive tracking       of a player’s arm position and orientation, providing players with an       unmatched level of precision and immersion. Every slight movement       players make with their wrist or arm is rendered identically in real       time on the screen, providing a true 1:1 response in their game play.

No information yet on whether this will be standard on all Wii's sold going forward or how much it will cost. But this could enable some awesome new games, especially the type that we avid gamers have been demanding. Here's the big question in my mind: Has this been in the works long enough for LucasArts to enable it on "The Force Unleashed?" Because I think we all really want a precise Wii lightsaber experience.

Last night was the first E3 party of the week and probably the best one since it was a very chill and not too mobbed one at a downtown bar (thanks Kotaku).

Today starts the press events. What will I be reporting on today?

First up is Microsoft's press conference with some follow-up interviews. Look for more details on the controversial storage upgrade, lots of bragging about the exclusives coming this fall like "Gears 2" and "Rock Band 2," a new music game and maybe some other new titles, and some announcements involving Xbox Live -- one of which will likely be the long awaited partnership with Netflix. Later on is the first hands on time with "Gears of War 2."

Also this afternoon is Electronic Arts' press conference, where they'll be showing off upcoming games ("Spore," "Dead Space," "Mercenaries 2," "Madden '09," etc.) and perhaps showing off some new stuff. Maybe we'll finally get details on "Godfather 2," which we know is in development but the company has never really discussed before.

Keep coming back thoughout the day and I'll let you know what's going on.

I don't really have any details at all, but I'm told by somebody involved in promoting it that Microsoft will be debuting "a brand new music/singing game." Given that "Rock Band 2" is an Xbox 360 exclusive (for a little while), I've got to imagine this is a much more casual title and not something that competes with "Guitar Hero" or "Rock Band' too directly.

Since I have so little info, this definitely falls into the "rumors" category, but it comes from a source who seems to know, so it's safe to say something is up with Microsoft and music next week.

Update: Kotaku links to my post and says the music/singing game in question is probably "Lips," from "Elite Beat Agents" developers iNiS. Given what a big fan I am of "Elite Beat" -- I've been playing it a lot recently after burning out on the lame and pointless "Guitar Hero: On Tour" -- that's pretty exciting. And a fun example of collaborative blog reporting. Go team geek journalists!