
Activision CEO Bobby Kotick has said that the games industry has the potential to “eclipse” the film and television industries.
Kotick believes that the feat could be realised within five years when the next generation of hardware enables developers to master the art of facial animation. This, he said, would bring characters to life and provide an emotional connection allowing for better storytelling and character development.

The Federal Communications Commission (FCC) is to explore the idea of a single, cross-media classification system in the US, a concept that is strongly opposed by the Entertainment Software Association (ESA).

Videogame trade association TIGA has submitted a report to the Department of Culture, Media and Sport outlining the benefits of introducing cultural tax breaks for UK games production.
The move follows the June publication of the Digital Britain report, in which the Government committed to work with the games industry to collect and review the possibility of introducing tax relief for the development sector.

The Entertainment Software Association (ESA) has released its annual report, highlighting the key work carried out by the trade body during fiscal year 2009 and the challenges that lie ahead.
According to the report, the ESA fought 43 bills seeking to regulate content and/or access to videogames during fiscal 2009, none of which became law.

Microsoft-owned Massive Inc. will deliver in-game adverts to a host of existing and upcoming PC and Xbox 360 titles from major publishers including EA, Activision Blizzard and THQ.
In-game ads will feature in EA’s Madden NFL 10, NHL 10, NBA Live 10 and Need For Speed Shift, in Activision’s Guitar Hero 5, DJ Hero, Band Hero, Tony Hawk: Ride and Blur, and in THQ’s UFC 2009 Undisputed and MX vs. ATVT ReflexT, among others.
Microsoft is investigating “a very small breach” in its Halo 3: ODST distribution process that has resulted in a number of French gamers receiving the title almost a month ahead of its release.

EA’s chief creative officer, Rich Hilleman, expects Sony and Microsoft to focus on updates to existing hardware before releasing next generation consoles.
Speaking about the “re-engineering” of the game business at the Hot Chips conference, he said that Sony and Microsoft nearly expired getting the PS3 and Xbox 360 to market, and are therefore not likely to be in any rush to release brand new home consoles.
Dundee, Scotland-based Realtime Worlds has opened a new 8,000 sq ft office as it looks to grow its headcount to over 300 by the end of the year.

Japanese console sales fell from 203,484 to 133,798 units during the week ended August 23.
Sales of all consoles were down week-on-week, with Sony’s PS3 notably suffering ahead of the PS3 Slim’s September 3 launch. The existing model sold just over 2,000 units, down from 5,944, placing it firmly at the bottom of the hardware rankings.
DSi - 59,578
PSP - 27,187
Nintendo Wii - 26,972
Xbox 360 – 8,979
DS Lite - 5,735

Update: The listing has now been pulled from the website.
Amazon Germany is carrying a listing for an Xbox 360 Elite with a 250GB hard drive.
The console will launch later this year bundled with two wireless controllers and Forza Motorsport 3 for €279.99 ($400), according to the online retailer.

Venezuela is moving to ban the sale of violent games and toys in a bid to tackle widespread crime in the country.
While there’s little evidence to show that violent games are a cause of real violence, that hasn’t stopped the Venezuelan National Assembly from approving a bill on the ban of such games in an initial round of voting.
The bill must now pass another round of voting and be signed by President Hugo Chavez to become law, according to Reuters.

Analysts have been weighing in on Microsoft’s decision to cut the price of the Xbox 360 Elite, with some predicting a less than stellar sales boost based on the console’s new $299 price point.

More than a decade ago, old-school game coders urged their peers to reject the one true way of a fixed graphics pipeline, as embodied by the combination of Microsoft’s emerging DirectX API and the first wave of bolt-on PC graphical processing units (GPUs). The old school lost, which was initially good news for gamers. The semi-standardisation of the graphics pipeline underwrote a leap forward in the visual quality of first PC games and then consoles, from Xbox to PlayStation 3.

Sony Computer Entertainment America is aiming to reposition the PS3 as the “total entertainment solution,” according to Peter Dille, the company’s senior vice president of marketing.
A giant fall and Christmas season ad campaign will place less of an emphasis on games and more focus on the PS3’s Blu-ray and movie download capabilities.

Dungeons & Dragons Online: Stormreach developer Turbine has sued Atari for in excess of $30 million after the publisher allegedly failed “to meet its publishing and distribution obligations.”
According to Turbine, Atari breached a licensing agreement by failing to devote the necessary resources to effectively promote and distribute DDO: Stormreach, forcing the developer to “step up and assume” what should have been Atari’s role.

Microsoft has explained the reasoning behind its decision to raise the price of the Xbox 360 Arcade by £30 to £159.99.

Activision has confirmed that it has made a number of layoffs at subsidiary Raven Software, the developer of Wolfenstein and Singularity.
According to unconfirmed reports, the job cuts number between 30 and 56 out of a previous total of 180 staff. However, in a prepared statement, Activision played down the severity of the cutbacks.

Electronic Arts has confirmed that it reducing the workforce at Spore developer Maxis.
"Often in the videogame industry, the size of a studio fluctuates in response to business conditions. In this case, EA has taken action to reduce the workforce at Maxis as we focus the business and focus Maxis,” EA said in a statement.

Also see: Microsoft Explains Xbox 360 Arcade Price Increase
Analysts Weigh In On Xbox 360 Price Cut
Microsoft has confirmed that the price of the Xbox 360 Elite will be cut by £30 to £199.99 and by $100 to $299 from Friday, August 28.

Microsoft is expected to make an Xbox 360 price cut announcement tomorrow.
The announcement will include a price drop for the Xbox 360 Elite model, the discontinuation of the Pro unit and changes to the Arcade SKU, according to MCV.
The move would come shortly after Sony announced a new PS3 model and a reduced price point for the system.
We’ve contacted Microsoft for comment.

Namco Bandai has released the “first true digital 3D console game,” Blitz Arcade’s Invincible Tiger: The Legend Of Han Tao, via Xbox Live Arcade and the PlayStation Network.
Available for 1200 MS points/$15, the downloadable kung-fu fighter is a retro-style arcade beat ‘em up designed to work as a 2D experience, as well as with all 3D Ready TVs and a selection of PC 3D gaming displays.

Square Enix president Yoichi Wada believes the recent PS3 price cut will have a significant impact on the company’s financial results in the new fiscal year beginning April 2010.
Square Enix currently has three announced PS3 titles in the works, including Final Fantasy XIII, which is due to launch in Japan this winter, but feels the price cut will only offer the company a limited boost in the short term.