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Microsoft has begun offering developers great and small a new model of the Xbox 360 development kit, pictured above. The new hardware's got a lot to offer game studios -- it's got an undisclosed boost in RAM, larger hard drive, built-in flash memory and a less bulky frame than its predecessor. Its most appealing bonus? According to the kit's press release announcement, the new hardware will come at a "significantly reduced price from its predecessor."

Wait, no, that's not its most appealing bonus. We're pretty sure the aspect that's gonna lead companies to snatch up as many of these new kits as they can is how darn adorable it is. Look at him! He's so tiny. And he's got an equally adorable, optional Sidecar attachment, which enables debugging and emulation! Oh, just look! It's like he's giving it a piggy-back ride.

Major Nelson has posted highlights from the Xbox Live Marketplace schedule for March. First up, the Dragon Age 2 "Black Emporium" DLC -- free to those who purchase new copies of the game -- will land on March 8 for 800 points ($10). Second, as promised, bonus characters Jill and Shuma Gorath will be available for Marvel vs. Capcom 3 on March 15 for 400 points ($5) each.

In other XBLM happenings, March 7 kicks off a Lara Croft themed "Deal of the Week," which will see Lara Croft and the Guardian of Light knocked down to 600 points ($7.50). Lara Croft DLC will also be discounted by fifty percent. Also, the week of March 14 will see several St. Patrick's Day deals, notably some discounted Green Day DLC (green -- geddit?) and Social Distortion's "Bad Luck" for Rock Band.

Finally, Xbox Live Silver members can enjoy free Xbox Live Gold this weekend, beginning Friday, March 4 at 12PM ET through Monday, March 7 at 12PM ET. Head past the break for a more complete schedule of releases.

A revolving look at Microsoft's shiny monochromatic controller for the Xbox 360.

You're getting a Kinect! And you're getting a Kinect! And you, and you and you're getting a Kinect! Oprah did today what only Bejeweled and Farmville have been able to do so far: Get a bunch of middle-aged ladies ecstatically excited about video games. The television guru indeed gave an Xbox 360 system and a Kinect sensor away to every member of her studio audience this afternoon, and while you might expect a group of gamers to be a little thrilled about that, the women in her audience went freakin' nuts.

The show was about "The Next Big Thing," and featured an appearance by reality show crooner Susan Boyle, as well as a segment on The Daily Show's upcoming "Rally to Restore Sanity" anti-movement. But whatever the reason Oprah decided to go all Microsoft motion controller on her audience, it appears to have worked -- they loved it. Maybe this means they don't have to buy Christmas presents for the kids this year? Watch the whole surreal video after the break.

Now more hexy.

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Last updated: Monday, 5:40 PM

Well, this is ... unexpected. The "Steel Battalion" franchise, perhaps best remembered for its 1,980-button controller, is coming to a platform that requires none. Microsoft has just announced that From Software will bring Steel Battalion: Heavy Armor to the 360 via Kinect. Well, technically, Microsoft just said the game will have "Kinect Enablement," so we guess there's still a chance you'll be able to play with a standard controller, we can't say for sure.

Now those of you who already own Steel Battalion controllers ... well, you're probably out of luck. Maybe a job for Ben Heck?

Rock Band 3 runs the gamut on its 1250 Achievement points (including DLC), as revealed by Xbox360Achievements.org. You'll get points for everything from calibrating your system to hitting all Triple Awesomes in three-part harmony on "Bohemian Rhapsody." 25G for me, for me, for meeeeeee!

Microsoft is apparently working with Chinese regulators to allow the sale of its Xbox 360 console in the country of 1.3 billion people. Shanghai Daily (subscription required) reports that Ya-Qin Zhang, a corporate VP for MS in China, stated the company is hoping to launch the console legally in the country, but there's currently no timetable on when that will happen. Gamasutra notes the only officially available console in China -- which has a healthy gray console market -- is the iQue, based on N64 hardware and released in 2003.

Neither the Nintendo Wii nor Sony's PlayStation 3 are available in the country. Ironically, both those consoles, along with the Xbox 360, are manufactured in China.

There are few things I love more in video games than the juxtaposition of two elements that clearly should not be juxtaposed. It's the peculiar desire which first attracted me to Deadliest Warrior, though, the sincerity of that attraction was questionable. Was I psyched to play a game that finally gave me the chance to see who would emerge victorious in a melee between a Pirate and a Viking? Yes, of course, because that's silly. Was I legitimately excited to play the game itself? Not so much.

Fortunately, behind all the comedically anachronistic battle pairings is a brilliantly simplistic and entirely entertaining fighting game engine -- one which rewards second-to-second survival instincts rather than a comprehensive knowledge of esoteric, nigh-impossible-to-execute techniques. If you're a fighting game purist, the absence of dash-canceling or air-to-ground linking might put you off. If you've never, ever understood, nor do you possess any desire to ever understand what those things are, then Deadliest Warrior will land right in your wheelhouse.

Amazon's German site has listed an "Xbox 360 4 GB Arcade System Bundle" (link is valid as of this writing) for pre-order, which could possibly be the cheaper Xbox 360 "slim" hardware that Microsoft has said is coming sometime this fall.

The "4GB" in the title implies that this Arcade version has 4GB of storage included, either as NVRAM or in the form of a USB flash drive. (The soon-to-be-obsolete Xbox Arcade only has 512 MB of NVRAM.) The price is listed as €148.99 ($189), which is slightly lower than the $199 Microsoft told us, not to mention that "bundle" suggests it will include a game -- or maybe something Kinect-related.

Then there's the street date, which Amazon has down as August 20, 2010. While that confirms nothing (as retailers are notorious for playing fast and loose with release dates), we will draw attention to this: That's smack dab in the middle of Gamescom 2010. Shades of Microsoft's E3 revelation of the new Xbox 360 and that it was shipping immediately? Stay tuned.

Attendees of Microsoft's E3 media briefing reacted to the news that they'd all get their hands on a free, slimmed-down Xbox 360 in peculiar ways. For instance, one writer at AnandTech apparently reacted with excitement -- not because he'd be getting the new model at no cost, but because it he couldn't wait to completely dismember it.

You can check out the pictorial fruits of AnandTech's labor over on their site, and glimpse some of the technology that powers Valhalla. The highlight of this teardown? We finally get to see the single chip (teased by the motherboard we had Ben Heck look at earlier this year) that houses the 360's CPU, GPU, and eDRAM, which can all be cooled by a single, more powerful fan. When you turn on your new 360 and it doesn't sound like a pair of jet engines, you've got this little guy to thank.

We're touching the new, slimmer Xbox 360 right now at the Microsoft E3 event, and we've got more details on the console and its hardware. The new Xbox has touch-sensitive on/off and eject buttons and built-in 802.11n Wi-Fi. There are ports for optical audio, A/V, HDMI, ethernet, and a custom port for the Kinect connection, as well as five USB ports. Only the standard A/V component cables come with the system (the same cables that come with the current model), so the HDMI cable is still separate. The power supply is all new and much smaller, and the console itself is "whisper quiet," with just one large fan instead of two, placed specifically on the side of the console to improve acoustics. The system makes a little chime when you flip it on as well, and the disc drive still sounds the same when it spins up.

The hard drive is 250GB, and there's a tab on the bottom that you can pull out to replace it if necessary. Transfer software is built into the system this time, so all you have to do is plug one end of the cable (available for $19.99) into the system, the other end into the hard drive, and then transfer away -- no disc needed. The case is black and glossy, smaller and thinner than the white version. The console will come with one standard wireless controller, backwards compatible with previous versions of the hardware, of course. All of the accessories are black, including the chatpad. It feels lighter to hold than the original Xbox -- not that you'd be moving it around much.

We're continuing to prod and poke at the new hardware -- stay tuned for more details on the new Xbox 360 as E3 continues this week.

Microsoft surprised all of us today -- not by announcing a redesigned Xbox 360 system -- but by giving them away to everyone attending their E3 press conference. While we promise to give these new systems away to you soon, we wanted to give you a closer look at the new hardware (shipping to retailers today!).

We're touching the new, slimmer Xbox 360 right now at the Microsoft E3 event, and we've got more details on the console and its hardware. The new Xbox has touch-sensitive on/off and eject buttons and built-in 802.11n wi-fi. There are ports for optical audio, A/V, HDMI, and a custom port for the Kinect connection, as well as five USB ports. The power supply is all new and much smaller, and the console itself is "whisper quiet," with just one large fan instead of two, placed specifically on the side of the console to improve acoustics. The system makes a little chime when you flip it on as well.

The hard drive is 250GB, and there's a tab on the bottom that you can pull out to replace it if necessary. The case is black and glossy, smaller and thinner than the white version. The console will come with one wireless controller, and that controller will be backwards compatible with previous versions of the hardware. All of the accessories are black, including the chatpad. It feels lighter to hold than the original Xbox -- not that you'd be moving it around much.

We're continuing to prod and poke at the new hardware -- stay tuned for more details on the new Xbox 360 as E3 continues this week.

USA Today has spilled the proverbial beans on Microsoft's Natal project -- not only has the paper confirmed the Kinect product name, but they've posted names of all of the system's launch titles. Here we go:

• Kinectimals features over 20 different virtual pets, including lions, tigers, and cheetahs, to play with or raise.
• Joyride has returned to life as a controller-free racing game, apparently.
• Kinect Sports will offer sport games to play: "boxing, bowling, beach volleyball, track and field, soccer and table tennis." For each one, you will make motions to play the games.
• Kinect Adventures has a river raft and obstacle course to navigate -- this is likely the demo we saw last week.
• MTV Games will release Dance Central, where you can cut a virtual rug.
• And there will be more games announced later featuring both Disney characters and Star Wars characters, in conjunction with Disney and LucasArts, respectively.

Why Microsoft, how very Wii of you. Marc Whitten even namedrops Nintendo in USA Today's piece, but he says that without a controller, Kinect will be "fundamentally different." We'll keep our eyes open for these games all this week, so stay tuned.

International news agency Reuters is adding to the "rumor and speculation" that the Hulu video service is coming to Xbox 360 and iPad. Sources claim Hulu is developing a subscription model to be rolled out on numerous devices over the next couple months, but it's unclear if the pay model will occur after the service is available on more devices. Although the report mentions "multiple devices," the only ones specifically mentioned are Microsoft's console and Apple's tablet.

The Hulu subscription service will allegedly charge for "older episodes and other content," while new shows will continue being free. Apple didn't mention the service during its big iPhone 4 reveal this week, so perhaps Microsoft will make it official at its E3 press conference next week.

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We're days away from the industry's biggest event, making today the perfect time to launch Joystiq's (3rd Annual) E3 Bingo Extravaganza! This year, each card is developed to consider the entire event and not only the conferences.

Originally, our plan was to utilize a series of super-computers specially designed to accurately predict the events of E3 2010; however, the "Joystiq Probability Index" (or JPI-3000) only delivered results as a string of "dingbat" characters. Development of an ultra-computer (JPI-4d3d3d3) to decipher the codes is expected to be complete in the year 2014. Stay Tuned.

For day one in our three- part series, we take a look at Microsoft -- the first company to take the E3 stage. Click on each of the squares above for more information (and the completely accurate but indecipherable rating). Microsoft's E3 press conference is scheduled for Monday, June 14, at 10:30 am PT (that's 1:30 pm Joystiq Time / ET). As always, Joystiq will be on hand to liveblog all the details.

Download a copy (PNG file) and play along (Remember, it's just for fun)! Stay tuned tomorrow for our Sony E3 Bingo card.

Filed under: X3F TV First, yes, there is another game out this week. That game is NeoGeo Battle Coliseum, an SNK fighting game. But enough about that, because Earthworm Jim HD is upon us. It is, by and large, Earthworm Jim, which should make old school fans happy, and undoubtedly delight the uninitiated. Check out the latest XBLA in Brief and see what the fuss is about.

[M4V] Download the M4V directly.


Xbox.com: Add NeoGeo Battle Coliseum trial version to your Xbox 360 download queue
Xbox.com: Add Earthworm Jim HD trial version to your Xbox 360 download queue

Andriasang reports that Square Enix has pulled back the curtain obscuring the identity of its next project: a 2D action game called Moon Diver, coming this year to the Japanese Xbox Live Arcade. The title, which will be developed by Lost Odyssey and Ninety-Nine Nights 2 creator feelplus, pits four-player teams of ninjas -- presumably moon ninjas, which we all know to be the coolest type of ninjas -- against waves of monsters in an attempt to protect a post-apocalyptic Earth.

We still have so many questions: Is it coming to America? Can we see some screenshots? Are we expected to dive into or off of the moon? We suppose our curiosity will have to be sated by these slim, slim details for now. We'll try pestering Square Enix for answers to these pressing questions at E3.

We know how it is. You've had your eyes on the Splinter Cell Conviction Xbox 360 Elite bundle for weeks now. "I want it!," you say, "But it's so expensive." You're in luck, because it looks like Sam Fisher did some 'negotiating' with Dell and got the company to knock a full $75 off the price, making it a cool $324.99. It's worth noting that Dell seems to have the bundle details incorrect. The bundle includes two wireless controllers, not one, and a 250GB hard drive as opposed to a 120GB model. It also does not include an HDMI cable, an accessory Microsoft stopped bundling with Elites some time ago.

If $325 is still a bit too steep, you can also grab the Xbox 360 Elite Spring bundle, which includes Halo 3: ODST, Forza Motorsport 3, one wireless controller and a 120GB hard drive for just $269 ($30 off the usual price). Act now and you'll still have time to get in on the Halo: Reach beta. Lest you haven't heard, it has jetpacks.

[Via Destructoid]

Beginning today, May 3, the Xbox 360 received a price reduction in Spain. The Arcade model was cut by €30 to €169 ($223), while the Elite experienced a €20 drop to €199 ($262). No other European countries seem to be experiencing a similar price drop.

Following up with Microsoft in the States, the company's official comment to Joystiq was that "the limited promotional price of Xbox 360 Arcade in Spain does not reflect an official price drop." The company's statement continues, "We work closely with retailers to determine the best approach for our products on a region-by-region basis."

[Thanks, Antonio R.; Via VG247, ElOtroLado]

Look, we can sit here and tell you about the flashy pimp duds and other Saints Row 2 Avatar items available on Xbox Live Marketplace right now, but we just can't get beyond the inclusion of the pictured hot dog suit. Even at 400 ($5), we're tempted.

Not only is it a great way to support one of the delicious staples of the American diet, but it also means you don't have to play Saints Row 2, go the Mall area and pick one up from the "Let's Pretend" store just to satiate your hot dog dress wear needs. Hooray for cutting corners with cash!

Let's go back a couple of years, to E3 2008. At the Microsoft Press Conference, the company drops the news that Square Enix has agreed to release Final Fantasy XIII simultaneously on both the PlayStation 3 and Xbox 360. There is much cheering and/or weeping and gnashing of teeth, depending on which side of the console wars you are on.

Two years later, in April of 2010: Final Fantasy XIII is released on both consoles simultaneously. And the most recent NPD report says that while the Xbox 360 version sold a respectable 493,000 copies, the PS3 version sold 828,000 copies -- almost twice as many.

We'll let you guys sort that one out for yourselves. Do remember where the consoles were at in both places -- back in 2008, the Xbox 360 had an early lead on big software (LittleBigPlanet was Sony's biggest game of the show), and these days, PS3 sales are doing much better. But we will say that, according to NPD analyst Anita Frazier, this is Final Fantasy's biggest launch ever, and that XIII has topped the first-month sales of XII by 48%. That's a lot of l'Cie.

David Gosen has left his post as Microsoft's VP of Strategic Marketing for EMEA territories, two years after being brought on to help expand Microsoft's foothold in Europe. The former I-Play CEO and managing director of Nintendo Europe plans "to explore new opportunities outside of the company," according to MCV.

Chris Lewis, the VP of interactive entertainment who will now oversee the European marketing team, suggests that Gosen has fulfilled his objective while at Microsoft. "The Xbox marketing team and Live business in EMEA has made great progress over the last two years," he said, "during a phase of consistent investment and innovation." The last we heard, Xbox 360 sales had crossed the 10 million mark in Europe alone. And now Gosen must answer the call of another brand that needs expansion in Europe. There's the Gosen-signal now! Gosen to the rescue!

Analyst Michael Pachter says that despite a lower amount of new Netflix subscriptions lately, video game consoles will still give the movie rental service a boost this year, providing over two million new subscribers thanks to the Xbox 360, Playstation 3 and the Nintendo Wii. Pachter suggests that the Xbox 360 will continue to provide 350,000 new subscribers, and the PS3 and the Wii will each turn in around 800,000 new subscribers this year.

But Pachter also says that future growth is limited -- the PS3 doesn't have quite the install base that the Xbox does, and while there are a lot of Wiis out there, Pachter's firm believes that most of those consoles aren't even connected to the Internet ("we estimate fewer than 35%"). So the total new subscribers estimated for 2011 drops down to 900k-1.2 million. That's still a lot of MST3K downloads -- because come on, if you're watching anything but that on Netflix, you're crazy -- but not enough to keep Netflix's estimated growth from being called "unsustainable."

Are you late to the Xbox Live game? If you've been delaying the jump to Gold membership (which you can try for free right now), this might be what you've been waiting for. The kit includes a 12-month Xbox Live gold subscription card (retails for $49.99), the Xbox Live Text Messaging Kit that includes the chatpad and a headset (normally $29.99), and Project Gotham Racing 4 (retails for $19.99). Normally all of that would go for about a hundred bucks, but Amazon has the pack for $52.54 with free shipping (it usually lists for $69.99).

It's a great deal if you're needing to jump back in or renew, and you pick up a game and a chatpad in the process. We wish they'd included something sexier than PGR4, especially because you'd have to be nuts to pick that up for $19.99. But at this price, it's practically a freebie.

GameStop has leaked information about those official Xbox 360 USB hard drives we've heard about (first rumored and then officially), and they ain't cheap. According to the confusingly similar GameSpot (who saw the prices temporarily listed on GameStop's website), there will be both 8GB and 16GB drives available, the smaller for $39.99 and the larger for $69.99. According to Major Nelson, we'll see them in stores in May.

Of course, the system update will also allow you to use any USB drive (not just the official Xbox-branded ones), but before you get visions of 1TB of storage plugged into your Xbox, remember that there's a 16GB limit on each of two possible devices, so you can have only 32GB total. Fortunately, an unofficial 16GB flash drive is about half of Microsoft's price over on Newegg. You may have to tweak things a little bit, as the official drives are meant to be "plug and play," but it can't be that complicated. The GameStop listing is down for now, but we'll see these drives officially in just over a month or so anyway.

[via Engadget]

Speaking to Edge, Microsoft's Aaron Greenberg helped explain just why the Xbox will never, ever get its own web browser. According to Greenberg, browsing the web on a television makes for a "poor" experience. Instead, "The real magic," said Greenberg, "is to take those web experiences and optimize them for the living room." He listed the Xbox implementation of Netflix as an example -- the Xbox also has similar Twitter, Last.fm and Facebook apps -- and said that attempting to browse the web on a PS3 is "an absolute nightmare."

Said Greenberg, "No disrespect, there's things I love about the PS3, but that's not one of them." He added that Microsoft wants the Xbox online experience "to be fun and optimized for the living room," and that the company will continue to expand on its applications in order to "get more richness."

Of course, all of this skirts the main issue: Is an Xbox web browser worth dealing with Internet Explorer?

[Via CVG]

We are, and I don't think I'm being premature about this, in the thrall of a full-on 2D renaissance courtesy of digital distribution platforms like XBLA and PSN. Developers are realizing that modern technology plus a less technically demanding perspective can lead to a really beautiful end product.

That's the case with Shank, a fluid, violent brawler that artfully combines a sort of 2D Devil May Cry blend of sword- and gunplay with a Saturday morning animation style to create the coolest cartoon your mom would have never let you watch.