Microsoft has launched an invite-only test program for Xbox 360, offering participants incentives to make certain purchases or subscriptions and fill out surveys.

The incentives of the Xbox Live Rewards program come in the form of Microsoft Points, the currency used in the Xbox Live Marketplace, with the exact rewards depending on which level of the promotion users are enrolled in.

Three levels have been uncovered thus far: Gray, Orange, and Green. Gray participants will be refunded a small percentage of their total Marketplace purchases, with the percentage growing the longer they stay subscribed to Xbox Live Gold.

Orange offers the above along with additional Microsoft Points for... Read more

Enthusiastic Microsoft CEO Steve Ballmer recently sat down for an interview with Gizmodo to discuss future plans for the Xbox 360, and revealed some interesting information about both Natal and Blu-ray functionality.

Ballmer commented about the future roadmap for Natal, following the positive reception given the tech demos earlier this year. Once Natal is released to the public, he states that the plan is to "take [Natal] to the next level; be it on Xbox, or other scenarios." When asked if Natal could meaningfully extend the lifespan of the Xbox 360, effectively challenging the traditional concept of "generational" console-releases, Ballmer coyly replied, "We'll see."

... Read more

Two veterans of Microsoft Aces Studio--developer of Microsoft's Flight, Combat and Train Simulator series, closed earlier this year--have founded a new sim-focused studio.

Led by Microsoft Train Simulator 2 lead game designer Rick Selby and lead program manager Kathie Flood with "a number of other former Aces members" onboard, Cascade Game Foundry aims to "address the significant hole in the simulation market left by Microsoft's recent departure" and explore unconventional simulator settings.

"Our previous efforts focused on building traditional simulation titles. However, now we get to redefine what a simulation game can be," declared Selby in a press statement.

"The simulation market is known to be a strong, consistent performer, but our vision extends beyond flying and railroading," said Flood. "Think of SCUBA diving off Hawaii, traversing the Andes, hiking the Great Wall of China... the possibilities are endless."

Several new games will soon be added to the Xbox 360 Platinum Hits lineup, Microsoft announced tonight.

Left 4 Dead, Grand Theft Auto 4, Street Fighter 4, Saints Row 2 and Star Wars: The Force Unleashed will all soon be branded with the Platinum moniker and appropriately discounted.

No updated pricing information was included in the release, with Microsoft only saying the games will be available for "as low as $19.99."

Retailers will also be running a "Buy 2, Get 1 Free" promotion on Platinum Hits games through October 31.

As it did last year, Microsoft has chosen to follow up the recent Xbox 360 price cuts with a holiday-themed hardware bundle, and new for this year, a controller-game pack.

The Xbox 360 Elite Holiday Bundle packs two games, block-busting beat 'em up LEGO Batman and offroad racer Pure, along with the hardware itself for the usual $299. The bundle ships to stores today--if you act fast, you could still get in on the $50 rebate.

Microsoft also unveiled a $59.99 controller game pack that bundles a wireless Xbox 360 controller (usually $49.99) with four downloadable Xbox Live Arcade titles: Geometry Wars: Retro Evolved 2, Lumines LIVE!, Bomberman LIVE! and Ms Pac-Man.

With the PlayStation 3 and Xbox 360 both set to receive new motion-tracking controllers next year, it has been revealed that some existing PlayStation 3 software will be updated with enhanced control schemes via patches while Xbox 360 games probably won't.

Though Microsoft has demonstrated the Xbox 360's motion-sensitive Project Natal camera with retrofitted versions of existing titles, such as Burnout Paradise and Beautiful Katamari, project head Kudo Tsunoda told Destructoid that such efforts required a significant amount of code to be changed--presumably more than a patch could.

Meanwhile, rival Sony used Tokyo Game Show to reveal that some existing PlayStation 3 games will be patched to support the upcoming PlayStation Motion Controller, including LittleBigPlanet, PAIN, Flower, EyePet, Hustle Kings and High Velocity Bowling.

In addition, Sony unveiled several upcoming titles that will make use of the wand-shaped ball-tipped device, including an "Alternate Edition" of Resident Evil 5, Ape Escape, Echochrome 2, Motion Party, Sing and Draw, The Shoot and Tower... Read more

A flurry of minor Xbox 360 tidbits emerged from platformer holder Microsoft this morning, so, in the interest of efficiency, we're rolling all of it together into a big news katamari. First up is word that a 578MB demo for Raven's Wolfenstein, which hit stores back in August, is now available in the Xbox Live Marketplace. As usual, it's exclusive to Xbox Live Gold members for a week--Silver folk will be able to give it a go on September 30.

But before you can snag the demo, you'll need to apply the new Xbox 360 system update that hit this morning, which you'll be prompted to do the next ... Read more

Having cut the Xbox 360 Elite's price by $100 to $299 only last month, Microsoft today announced a USA-only $50 mail-in rebate on Elites bought between now and October 5.

Details on the rebate program's specifics beyond what the press release states are scant for now as its website is not due for launch until later today.

Brought down to $249 by the rebate, the Elite will briefly once again be cheaper than a PlayStation 3, after Sony launched the new trim PS3 Slim for $299 earlier this month.

Following up on the announcement of a $400 Modern Warfare 2-themed "limited edition" Xbox 360 that comes with a 250GB HDD, Microsoft has clarified that the console's largest hard drive yet will not be sold separately.

"This hard drive is not being sold separately," Xbox Live programming director Larry 'Major Nelson' Hryb noted during a video examining the bundle, embedded below.

Microsoft currently sells two different configurations of the Xbox 360 hardware--the $200 Arcade, which has 512MB of storage, and a $300 Elite that... Read more

Microsoft and Frito-Lay, which produces the Doritos brand of flavored "tortilla chips," have once again paired to turn a user-submitted pitch into a free Xbox Live Arcade game.

Whereas 2007's original "Unlock Xbox" contest saw one idea transformed into an actual game--the dinosaur-themed Dash of Destruction--this year's contest will see two pitches become free Xbox 360 downloads, with both expected to arrive in the fall of 2010.

"Many of the people who love Doritos also love gaming," said Frito-Lay marketing VP Ann Mukherje. "This innovative program gives our fans a chance to live their dreams."

Those in North America can submit their video pitches to the contest's site until October 9, 2009. Ten quarter-finalists will then be selected, with online voting running from November 29 through December 31, 2009 and the "fan-selected grand prize winner" further receiving a $50,000 "dream assignment as Doritos Gaming Consultant."

While the price of the Xbox 360 Elite is being slashed by $100 in the US, the United Kingdom is given the cold shoulder with a hike on the Arcade and smaller Elite cuts.

From September 1, the price of an Xbox 360 Arcade will rise by 30 GBP to 160 GBP--an increase of $50 to $260, roughly speaking. The Elite will become cheaper but only by 30 GBP ($50) to 200 GBP ($320-ish)--a 13% cut as opposed to the 33% the US received.

Increasing the Arcade's price and removing its XBLA game bundle will "offset exchange rate fluctuations and changes in local market conditions," a Microsoft rep told CVG.

As for the removal of the once-bundled HDMI cable from the Xbox 360 Elite model, Microsoft has given CVG a statement explaining that "In order to offer the Xbox Elite to consumers at a reduced price... we eliminated the inclusion of an HDMI cable. That said, we are confident that providing even better value for our premium console will allow people the flexibility to purchase the HDMI cable of their choice."

Following an endless series of rumors, and a PlayStation 3 price cut to $300, Microsoft has finally confirmed that the price of the Xbox 360 will drop on Friday, August 28.

According to Microsoft's Larry "Major Nelson" Hyrb, the 120GB Elite version of the console will be marked down $100 to a total of $299, while the 60GB Pro will be drop to $250 until it is phased out.

The new prices follow:

Xbox 360 Elite (120GB HDD): $399.99 now $299.99
Xbox 360 Pro (60GB HDD): $299.99 now $249.99 (While supplies last)
Xbox 360 Arcade (256MB - 512MB internal storage): $199.99

Production of the Pro has already been halted, and only the 120GB Elite... Read more

Jordan Weisman, founder of defunct MechWarrior developer FASA Interactive, now says that the studio's culture was "destroyed" following Microsoft's acquisition of FASA in 1999.

"I don't think the studio ever really had a chance," said Weisman to GamesIndustry. "It was destroyed right in the beginning."

"The two reasons they bought us was, one, they wanted the catalogue of intellectual properties and, two, they felt that we had developed a really good development culture," he said. "And the reality is that, pretty much from the day we moved to Redmond, that development culture was destroyed."

Wiesman says that he was instrumental in making sure Bungie's... Read more

With three more advance retailer fliers listing lower prices for the Xbox 360 Pro and Xbox 360 Elite hardware, it seems that an imminent price drop is all but confirmed.

Leaked images of this Sunday's Target, Walmart and Best Buy advertisements respectively acquired by Engadget, Joystiq and Kotaku show the now-$399 Xbox Elite model and its included 120GB hard disc drive going for $299, joining the Meijer catalog image that recently surfaced and shared the same new price for the Elite.

Meanwhile, the currently-$299 Pro and its 60GB HDD are shown at $249.99. The Elite is rumored to be entirely replacing the Pro model, as the latest packing for Elite and $199 HDD-less Arcade units only list the Arcade and Elite favors of Microsoft's console.

Competitor Sony recently slashed prices on the rival PlayStation 3, lowering its cost by $100--from $399 to $299 on the 80GB model, $499 to $399 on the 160GB version--and introducing a slimmer, 120GB model of the console that will sell for $299.

Lionhead leader Peter Molyneux today announced both Fable III (360) and an episodic version of Fable II during the Microsoft press conference at GamesCom.

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Fable III will be set in a Napoleonic-styled period of Albion, and will allow players to take on a King-like role in influencing the world, according to Eurogamer.

"I think there's something fundamentally wrong with RPGs like Fable," said Molyneux. "It's a mechanic that's been there since the eighties. I'm going to take that foundation stone and throw it away... Read more

With Microsoft set to begin selling downloads of retail Xbox 360 games via Xbox Live's "Games on Demand" storefront, the platform maker has issued a list of the titles that will be available when the functionality launches on August 11.

Prices were not provided, though Microsoft has suggested that they will be in line with retail. Unlike other areas of the Xbox Live Marketplace, the price of a full Xbox 360 game download will be displayed in local currency, not Microsoft Points, with buyers able to either charge the exact cost of a game to a credit card or use Microsoft Points.

U.S. "Games on Demand" Launch Titles (24):

1. Assassin's Creed (Ubisoft)
2. BioShock (2K Games)
3. Burnout Paradise (EA)
4. Call of Duty 2 (Activision)... Read more

Though sales of digitally distributed games are quickly increasing, and the impending launch of Microsoft's Games on Demand store, Microsoft says that it will likely be some time before new games are released digitally and in retail stores on the same day.

"There are a lot of complex issues to deal with here, especially if you start talking about day-and-date release with retail availability--which is not something that we're talking about at all, today," said Microsoft VP Shane Kim to Fastcompany.

"And publishers have to do some technical work in order to enable this," added Kim. "But when it comes to us saying we want Games on Demand to enable day-and-date release of new titles, then there's certainly a lot of work we would need to go through."

When it comes to that "work," it seems that handling the transition without upsetting retail partners may be a large part of the process.

"We're not anywhere close to that world today," reiterated Kim. "We have great relationships with the retail channel--they're important partners. We sell a lot of hardware and software through retail channels. We have to be smart about how we approach this business."

A simple Twitter update from Microsoft has ended the long-running rumors that Brothers in Arms and Borderlands developer Gearbox is crafting a new Halo game.

"Gearbox is NOT working on a Halo title for Microsoft," reads the update, with Joystiq having confirmed the account as a legitimate source for Microsoft statements.

Rumors of Gearbox helming Halo 4 cropped up last year, bolstered by its past experience with Halo PC and word that though Gearbox has lost its platform technology director to Microsoft's Halo team, she would somehow still "continue to help" Gearbox.

At the time, Gearbox president Randy Pitchford was teasing a "look-at-our-line-up-and-imagine-something-even-bigger kind of big" project, though recent revelations suggest he may have been referring to the studio's new Duke Nukem game.

It sounds like Peter Jackson's Halo game has joined his attempt at a Halo-branded feature film in the "no longer happening" graveyard.

When asked about the effort, announced in September 2006, the Hollywood director responsible for Lord of the Rings and Dead Alive told Joystiq that the "Halo project is no longer happening, it sort of collapsed when the movie didn't end up happening."

The episodic Xbox 360 game, rumored to be titled Halo Chronicles, was to be co-developed by Jackson's Wingnut Interactive and Microsoft. Jackson's attempt at a Halo movie collapsed in 2006 just after the game project was announced, though he believed the 2007 release of Halo 3 would reignite interest in the beleaguered film. However, his Halo game was still alive in April 2008, as Microsoft was then hiring staff for it.

Microsoft today announced "Halo Legends," a collection of short films produced by various Japanese animation houses, including those responsible for Ghost in the Shell, Blood: The Last Vampire, Cowboy Bebop, Fullmetal Alchemist and Dragon Ball.

Similar in concept to The Animatrix or Batman: Gotham Knight, each short will explore "different times, themes and characters" in the universe, with each sporting a distinct visual style. Microsoft Game Studios will be producing the series through its just-revealed 343 Industries division, which is dedicated entirely to the successful Halo franchise.

Microsoft also announced a Xbox Live "destination" called "Halo Waypoint," said to be a new information hub that will provide fans with related news, activities, behind-the-scenes videos, screenshots, podcasts, and so forth along with "a career system and player rankings tied to both in-game and out-of-game accomplishments... Read more