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With only a couple weeks to go before the 2008 E3 Media and Business Summit, video game publisher Electronic Arts is giving the press a sneak peek at its new video game lineup, including products resulting from its partnership with Hasbro.

Mr. Potato Head hosts EA's game Hasbro Family Night.

(Credit: Electronic Arts)

In the forefront is the Hasbro Family Game Night video game for the Nintendo Wii and Sony PlayStation 2, a result of the 2007 teaming of the board game company and the video game company. With Hasbro's Mr. Potato Head as host, EA said families can partake in classic versions of Connect Four, Boggle, Yahtzee, Sorry!, and Battleship, as well as versions of these games with new twists.

The game publisher will also debut a digital version of Sorry! Sliders, a board game that Hasbro will be selling this fall.

NCAA Football '09 is just one of the new "All-Play" games for Wii.

(Credit: Electronic Arts)

Other games displayed by EA at recent coast-to-coast press events include Wii- and PlayStation-adapted games Boogie:Superstar, Littlest Pet Shop, a new Monopoly game, and Nerf N-Strike, which comes with a Wii remote and Nerf gun duo.

All the above titles will hit shelves during the fall of 2008.

Casual gaming aside, last week EA also announced a new lineup for its "EA Sports All-Play" series, which is introducing games specifically designed for the Wii. EA said the new games will level the playing field between advanced players and new users, because players won't have to remember complicated series of button combinations.

The five All-Play titles will debut starting this month, including '09 versions of Tiger Woods PGA Tour, Madden NFL , NCAA Football, NBA Live, and FIFA Soccer.

The two-day E308 conference kicks off in Los Angeles on July 15.

Update: Sony has suspended the 2.40 upgrade, following reports that it has fouled up some PS3 systems (see Joystiq for more). While the two PS3s we have here at CNET were able to install the update with no adverse effects, it appears that some users were considerable less fortunate.

The 2.40 firmware update for the PlayStation 3 is now available. The free update, which Sony has been talking up for the past several days, adds a smattering of new features, including in-game access to the XMB (Cross Media Bar) home screen, custom soundtracks, a new trophy system, and a shortcut to Google searches.

The new features carry a host of caveats: the in-game XMB, customized soundtracks, and trophies aren't supported on all games; in-game XMB features are fairly limited; and the trophy system (with the a few exceptions) won't be retroactive to already-accomplished goals.

Trophies, for instance, are better viewed as a feature that will begin becoming more useful as future games begin supporting the feature. That said, both the trophy system and in-game XMB help the PS3 better compete with the achievements and Xbox Live or Xbox Dashboard features offered by the Xbox 360.

PS3 users will also notice a handful of other simple but useful touches with this update, including an on-screen clock, a quick shutdown icon, and a shortcut to Google searches. And speaking of the PS3's browser: while it's not new for 2.40, it's worth noting that the Web browser splash screen now includes shortcuts to YouTube, Flickr, and Facebook.

So what do you think? Does the 2.40 update add some worthwhile features to the PS3, or does the Xbox 360 or Nintendo Wii still have an edge? And what other features would you like to see come in future PS3 software upgrades?

PlayStation.com: Firmware 2.40 walk-through, part 1 (embedded above)
PlayStation.com: Firmware 2.40 walk-through, part 2
PlayStation.com: Firmware 2.40 FAQ

The chatter for a July price chop gets louder.

(Credit: Microsoft)

With Metal Gear Solid 4 finally available for the PlayStation 3, it doesn't take a genius to predict that the PS3 is going to get a boost from having a hit console-exclusive title under its belt. Nevertheless, analysts are boldly proclaiming change is asunder. Sony's got the Big Mo--as in momentum--while Microsoft's got the big Slo--as in demand for its Xbox 360 is slowing down. Which inevitably means the price-cut rumors are getting the Big Sto--as in stoke those flames, baby.

Joystiq is reporting that EEDAR analyst Jesse Divnich, "Believes the PS3 is going to keep increasing its sales and Microsoft will announce a price cut for the Xbox 360 at E3" next month. And in another shocker, Divnich, "Foresees the PS3 gaining momentum and claims Metal Gear Solid 4 will actually have a greater impact on the console's hardware sales than Grand Theft Auto IV did." God, these guys are good.

The post goes on to note that the "Xbox 360 could also get a new hardware SKU with added features" (Blu-ray anyone?) and that Divnich claims that "if Microsoft does cut the price, Sony will respond with a drop of its own within two months." Unfortunately, Divnich doesn't predict exactly what the price cut will be, but I'm saying $50 across the board, with the XBox 360 Elite dropping to $399.99, the Premium (20GB) to $299.99 and the Arcade (no hard drive) hitting $249.99 or even less. It's about time someone matches the Wii's pricing, right?

Anyway, feel free to predict your own pricing scenarios and new models in the comments section.

Sony Computer Entertainment announced Tuesday that it is again delaying the launch of its 3D social-networking gaming service, "Home," for the PlayStation 3.

The PlayStation Home Open Beta service is expected to begin in the fall, nearly a year after its expected launch date. Sony unveiled the concept of its Home service more than 12 months ago and had anticipated at the time a full launch of the service at the end of last year.

Sony, in delaying the service launch, noted it wanted to expand its closed beta program to more PS3 users. The pending Home service is targeting its virtual community of PS3 users.

"We have come to the conclusion that we need more time to refine the service to ensure a more focused gaming entertainment experience than what it is today," Kazuo Hirai, Sony Computer Entertainment president, said in a statement. "Our overarching objective is to provide users with new gaming experiences that are available only on PlayStation Home."

Sony wasn't kidding when it said the next PS3 system update was coming in mid-April. Just in time to take the edge off tax day, the version 2.30 of the PlayStation 3 system software is now available for download. As revealed last week, the software update adds DTS Master Audio decoding (to deliver the best audio from compatible Blu-ray movies), as well as a major overhaul of the interface for the PlayStation Store (as explained in the Sony video walkthrough shown above).

The question is: what do you think? Does the DTS upgrade make the PS3 an even better Blu-ray player? Does the PlayStation Store makeover finally put Sony's online offerings on par with Xbox Live? Is all of this irrelevant compared with the forthcoming releases of Grand Theft Auto IV and Metal Gear Solid 4? Let us know what you think.

(Credit: CNET)

Sony has announced the details on the next PS3 firmware update--version 2.30, coming mid-April--and the big news for home theater fans is that the PS3 is getting onboard DTS-HD High Resolution and DTS-HD Master Audio decoding for Blu-ray movies. Home theater fans have long lamented that the PS3 could not decode the new DTS soundtracks at their highest resolution, especially since movie studios like Fox have opted for DTS-HD Master Audio on many Blu-ray releases. Without getting too technical, DTS-HD Master Audio offers 7-channels of lossless audio at 96K sampling frequency and 24-bit depths--which means that the sound sent to your receiver should be identical to the studio master.

While some sticklers will point out that the PS3 can't output Dolby TrueHD and DTS-HD Master Audio in bitstream format, it's definitely a non-issue. Decoding the audio at the source is actually better than having the ability to bitstream high-resolution soundtracks, since it means even people with older HDMI-capable receivers can enjoy the high quality audio. Sure, your receiver won't light up the pretty DTS-HD Master Audio logo, but who cares--you still get the same great sound.

We have ranked the PS3 as the best Blu-ray player for quite some time, and this only sweetens the deal. Almost all of our major complaints have been addressed, except for the fact that it still doesn't work nicely with a universal remote. Some diehard home theater fans will cringe at the idea of using a game console as their main disc player, but they should get over their hang-up as the PS3 is currently the best Blu-ray has to offer and it also happens to be the cheapest. And you can play high-def games and stream music, movies and photos.

The new firmware will also include a much-needed overhaul to the PlayStation Store. The official PlayStation Blog posted a walkthrough of the new store, and we have to admit it looks pretty good. Check it below.

The world's first 2.0-compatible Blu-ray player.

(Credit: CNET)

The PlayStation 3 is the first Blu-ray player to support BD-Live functionality, thanks to a firmware update available today. Officially announced just last week, the update (version 2.20) was released right on schedule, and is now available as a free download to PS3 owners directly through the console's onscreen interface. Once installed, it allows the PS3's to access Internet-connected BD-Live content available on some discs. The list of compatible discs is currently minimal--just War and Saw IV available now, plus The Sixth Day and Walk Hard following on April 8--and the first round of BD-Live content doesn't seem to be very diverting. But as the list of supporting titles grows--and, ideally, the BD-Live content becomes more compelling--look for players that don't support Profile 2.0 compatibility to be confined to the clearance shelves. The PS3 remains the best bet for Blu-ray shoppers, even if they have no interest in using its gaming capabilities.

The PS3 is about to become an even better Blu-ray player.

(Credit: CNET)

The next firmware update to the PlayStation 3 will add full Profile 2.0 compatibility to the game console's Blu-ray player. Sony hinted that the update would be coming during January's Consumer Electronics Show, but today's announcement confirms that it will arrive before the end of March. If it goes according to plan, the update would make the PS3 the first Blu-ray player to offer Profile 2.0 (or BD-Live, as it's also known). Profile 2.0 will add online features to compatible Blu-ray discs, the first two of which--The Sixth Day and Walk Hard--are scheduled to hit store shelves in April. Its addition to the spec finally brings Blu-ray's feature set in line with HD DVD players, all of which were built from the start to be able to access online content (though, to be fair, the feature wasn't widely employed on many HD DVD movies).

While most Blu-ray players can be updated to address bug fixes and disc incompatibilities, the PS3 is alone among current players with its ability to be upgraded to the Profile 2.0 standard. (That's why it remains the most highly recommended Blu-ray player on CNET--even for prospective users who aren't gamers.) The only other 2.0 players that have been announced are the Panasonic DMP-BD50 (due in April) and the Sony BDP-S550 (coming this autumn), both of which are expected to cost at least $100 more than the entry-level PS3.

In addition to enhanced Blu-ray support, the PS3 2.20 firmware is expected to include a number of other enhancements, including better DivX and WMV file support, better integration with the PSP, and improved Web browsing. Full details are available at Sony's PlayStation Blog.

Tuesday's announcement from Toshiba that it is pulling its support of the HD DVD format and ceasing production of the video players effectively stamps Sony as the new standard bearer of high-definition video.

Sony has long been associated with the Blu-ray Disc format, but HD DVD's demise brings new opportunity for the Japanese electronics maker to effectively take control of the future of high-definition in consumers' living rooms.

The fall of HD DVD gives Sony a chance to really extend its high-definition strategy with the pieces it already has in place: It's the only major consumer electronics player with a real presence in every high-profile consumer market: HDTVs, cameras, notebook PCs, gaming, and even a film studio that creates high-definition content. It has positioned itself so well that it would have to really screw up to not seamlessly ascend the throne as king of HD.

It's a change in fortune for the company whose gaming and electronics divisions were struggling throughout the past year. Suddenly the company's PlayStation 3 strategy appears smarter than previously thought.

One of the key's to Sony's success is undoubtedly the royalty structure--Sony, Philips, Panasonic, and Warner Bros. all own patents on Blu-ray technology and they get paid when anyone manufactures a Blu-ray player or disc. But it's not the only thing. The company's brand legacy and the most important weapon in its HD arsenal, the PlayStation 3, mean Sony has a leg up on all other participants in the world of high definition.

Sony already owns the largest chunk of market share of Blu-ray devices, but it's not because millions of people are buying Blu-ray Disc players as replacements for standard DVD players.

"The majority of Sony's success in the Blu-ray Disc market hasn't been because of their standalone player business--it's been the PlayStation 3," noted Paul Erickson, director of DVD and HD market research for DisplaySearch.

Sony's strategy of seeding the market with PlayStation 3 game consoles that came with Blu-ray Discs playback ability looks fairly prescient now, though it didn't at the time.

After a boffo market entrance--fans queuing up for days to buy the next-generation consoles--in late 2006, Sony had to deal with a lot of bad press for product shortages and the success of the Xbox 360, and the sudden popularity of the Wii from Nintendo. Blu-ray's inclusion in the PS3 was a major reason for product shortages and was responsible for the high price of the console.

Sony was able to claim in January 2007 that it had 1 million Blu-ray players sold. But those were largely PS3 sales. At the time, since the battle with HD DVD was still in full swing, it wasn't clear that Sony's strategy on Blu-ray had worked.

HD DVD's demise gives new perspective. Sony doesn't break out how many standalone players it has sold from the number of PS3s, but according to DisplaySearch shipment estimates, in the third quarter of 2007, Sony accounted for nearly 96 percent of Blu-ray devices worldwide. In conjunction with point-of-sale data collected by the NPD Group that shows Sony and Samsung collectively accounted for 87 percent of Blu-ray Disc standalone player sales in December alone, Sony is already the dominant player. Samsung is its closest competitor, but the royalties earned on manufacture of the discs and players give Sony much more room to be competitive.

Sony won't comment on any future business plans for the company, but it can now move full-speed ahead on its HD strategy in the living room, which it's been laying out over the last year or so.

It said as much in this statement it issued Tuesday: "We believe that a single format will benefit both consumers and the industry, and will accelerate the expansion of the market.

"Blu-ray has been and will continue to be a core part of Sony's HD strategy. We will continue to promote the benefits of HD throughout the value chain including Blu-ray products, Bravia LCD TVs, PlayStation 3, Vaio PCs, camcorders, entertainment content, and broadcast and professional."

Pricing of Blu-ray players is what is most up in the air. So far, it's the biggest reason that most consumers have not purchased high-definition video players.

Toshiba had a lot of success last fall lowering its prices dramatically on HD DVD players, but Sony faces different challenges. Unlike Toshiba, which was the sole producer of standalone players in its format, Sony is not the only producer of standalone Blu-ray Disc players. Samsung, Philips, Panasonic, and others will now begin to compete with Sony, and each other, over features and pricing of Blu-ray players.

But just because HD DVD is dead does not mean Sony will automatically make its standalone player prices more competitive, said DisplaySearch's Erickson.

"I'm not sure Sony is going to be as aggressive on player prices because they're attacking the market on two fronts (PS3 and standalone players)," he said. "PS3 pricing is not going to be governed by Blu-ray Disc (player) prices; it's judged by competitiveness with Xbox 360...There's not as much impetus for them to be hyper-competitive on standalone player prices."

Whether they will do that or not remains to be seen. Now with HD DVD out of the way and Sony's game console strategy vindicated, what will be interesting in the months to come is where it goes with standalone players.

Ross Rubin, an analyst with the NPD Group, doesn't anticipate any major moves by Sony quite yet. "I don't suspect we'll see any imminent price drops, but there could be this holiday season."