Update: A listing on Sony Computer Entertainment Europe's website confirms that the online functionality for 14 titles listed in previous reports will be shut down in European territories. No such announcement has yet been made for North America.

Original Story: Contradicting reports that are currently circulating around the web, Sony Computer Entertainment America tells Shacknews it has made no announcements regarding the shutdown of online functionality for multiple PlayStation 2 and PSP titles.

Last Friday, dbTechno reported that SCEA would be shutting down servers for a number of online PSP and PS2 titles, including Jak X (PS2), Amplitude (PS2) and Lemmings (PSP).

Despite claims that the announcement came from SCEA, the list included international naming conventions, such as Everybody's Golf rather than Hot ... Read more

Sony has announced a new PSP bundle that packages Ready at Dawn's upcoming God of War PSP title with a special edition of its PSP console.

The Limited-Edition God of War PSP Entertainment Pack will be priced at $199.99, and include a copy of God of War: Chains of Olympus, a Deep Red PSP emblazoned with the visage of Kratos himself, and a few things Sony had laying around the house--namely a Superbad UMD and a voucher for the PlayStation Network title Syphon Filter: Combat Ops.

The bundle goes on sale in June, so those wanting to pick up a PSP before the March 4 release date of Chains of Olympus will be facing a dilemma. Either way, check out a few shots of the Kratos-branded PSP below.

Responding to Activision CEO Bobby Kotick's comments that Sony and Microsoft need to drop the prices of their respective systems to $199 within the next two years, SCEA president and CEO Jack Tretton has labeled Kotick's analysis as inappropriate and unwelcome.

"I would never venture to suggest what software publishers should price their software at," Tretton told The Mercury News. "I don't think it's appropriate for them to suggest what hardware should be priced at."

Tretton argued that with slimmer profits for the hardware maker, there would be no platforms to publish on in the first place, insinuating that Kotick's suggestion would result in further significant losses on the PlayStation 3 hardware.

In its last fiscal quarter, Sony's game division lost nearly $841 million as the PlayStation 3 hardware was being sold at a loss. The system has undergone a series of drops since it released last fall at $499 and $599, with the most recent introducing a $399 version of the hardware.

"I don’t know, maybe [Kotick] should design a platform," Tretton suggested.

God of War II (PS2) director Cory Barlog will leave his position at SCEA Santa Monica soon, a Sony rep told 1up today. In mentioning Barlog's resignation, the Sony rep also confirmed the company's plans for a God of War III on PlayStation 3, presumably without Barlog's assistance.

"We can confirm that Cory Barlog, Game Director for God of War II, is leaving the SCEA SM Studio and we are grateful for his work and creative vision for the critically acclaimed God of War franchise," the spokesperson told 1up. "Moving forward, we are confident in the God of War team, as they are an extremely talented group of people that are passionate about the franchise and dedicated to creating even more epic content with God of War: Chains of Olympus for the PSP and God of War III for PS3."

It's unknown if Barlog and Sony will continue to collaborate, as former SCEA Santa Monica developer and God of War (PS2) creator David Jaffe will with Jaffe's new Sony endorsed studio Eat, Sleep, Play. In an interview with Shacknews earlier this year, Barlog indicated he was happy at SCEA Santa Monica, saying the God of War team was "one of the best teams I've ever worked with" and that he'd like to "continue to make many, many games" with his fellow developers there.

The upcoming God of War: Chains of Olympus for PSP is in development by Daxter (PSP) developer Ready at Dawn Studios and will retail in spring 2008.

Sony Computer Entertainment of America's senior director of corporate communications Dave Karraker today announced he will leave the company this Friday for a position at vodka distiller Skyy Spirits.

"I will be leaving SCEA on September 7 to pursue a global opportunity closer to my home and in another industry where I have extensive experience," Karraker told Shacknews in a sobering e-mail.

Karraker has been the lead PR manager at SCEA over the past year, overseeing the launch of the PlayStation 3. A replacement for his position has not yet been announced.

"I have enjoyed immensely my tenure at SCEA and think the company and its brands are very well positioned to have an exceptional holiday and a very bright future," continued Karraker. "I appreciate all the support of the media and analysts I have worked with and look forward to following the industry as a gamer."

Confirming earlier rumors, Sony Computer Entertainment America has announced that acclaimed God of War and Twisted Metal creator David Jaffe has founded a new Utah-based game development studio with Incognito Entertainment founder and now-former president Scott Campbell.

The new studio, which goes by the moniker Eat, Sleep, Play, has signed a multi-year deal with Sony to create games exclusively for PlayStation platforms. The first announced game is Twisted Metal: Head On for PlayStation 2--presumably at its core a port of the 2005 PSP title--which will contain new material in the form of previously-unreleased Twisted Metal Black levels and a series documentary about which Jaffe recently blogged.

Further unspecified games from Eat, Sleep, Play will follow in 2008. According to the wording of today's press release, the company seems to be an independent studio despite its PlayStation exclusivity... Read more

Update: According to a post made by David Jaffe on the NeoGAF forums, the designer has no plans to leave SCEA or start a studio in Utah. "I can promise you guys I am still part of SCEA...I just got a paycheck from them!" wrote Jaffe. "I am still 100% a Sony employee and unless I got fired today and they didn't tell me, I'm still working for them. Also, I love working with the guys at Incog and hope to work with them for a long, long time but I sure as shit ain't moving to Utah."

1UP followed up on the story, claiming that Jaffe is indeed working with Campbell on the new Utah-based studio, but that Jaffe will remain in San Diego and will work remotely.

Original story: David Jaffe, director of many titles in the acclaimed Twisted Metal series and the creator of God of War (PS2), has left his long-time post at Sony Computer Entertainment of America, according to a story by 1UP. Jaffe is apparently departing the company to form a new studio with Incognito Entertainment president Scott Campbell.

Campbell is presently overseeing production on SCEA's... Read more

During its Gamers Day held this week in San Diego, Sony Computer Entertainment America made a number of announcements covering the debut of SOCOM on the PlayStation 3, the sales model and beta test plans for Incognito's multiplayer-only PlayStaton 3 flight combat game Warhawk, and an eventual online store for the PSP.

Sony confirmed that the multiplayer-only Warhawk will see a simultaneous release both at retail and and via the PlayStation Store. In addition to the game itself, the Blu-ray Disc sold at stores will include a Bluetooth headset for ... Read more

Sony Computer Entertainment America held its Gamers Day 2007 event this week, and along with various announcements the company released new screenshots, artwork, and movies drawn from numerous upcoming first-party PlayStation 3, PSP, and PlayStation 2 games. ... Read more