According to a statement from senior executive, Sony will cut back on future chip spending and may not produce advanced "cell" microchips used in its PS3 game gear in-house as it seeks better returns on its investments, and improve profitability.

Sony has released a new v3.11 PSP firmware update, and while details are still sketchy, it adds a Game Reset feature fixing compatibility issues for certain PlayStation Network titles (such as R-Type). Of course this update currently only applies to North America and Asia, as the PS3 is not out yet in Europe.

During last night's DICE 2007 keynote speech, Sony Digital Pictures President Yair Landau revealed a yet-unannounced Sony Online title, codenamed Vista, which is a snub at Microsoft, since the game was recently delayed. Taking elements from various movies such as James Bond and Bourne Identity, Vista is spy/action game featuring cooperative, team-oriented objectives and PVP, showing lots of Bond-esque gadgetry, including a tricked-out BMW-like car, where agents were battling it out with a slew of street thugs. No further details were given, but now that the cat is out of the bag, more info should follow shortly.

The PS3 has now received a new update, optimizing compatibility for unspecified PlayStation 2 titles. If you read Japanese, here's the full fix list...

Sony has released a new v3.10 PSP firmware update, adding an optional Conserve Memory feature for your Internet browser when viewing a Web page with a larger amount of data, as well as a Dynamic Normalizer providing automatic volume adjustment. Sony is also promoting a new PSP download service currently offering the Killzone demo but in next few weeks Syphon Filter: Dark Mirror and SOCOM: U.S. Navy SEALs Fireteam Bravo 2 are expected.

Sony released its 3rd quarter results revealing it has shipped 1.8 million units, and while revenue was up nearly 10%, its overall income dropped 5%. PS2 and PSP hardware sales dropped, and overall software sales also declined, although the sale of PSP titles in particular was up. As a results Sony Games division recorded a $455 million loss, compared to $570 million income last year.

A few PS3 firmware revisions in rapid succession! The PS3 has now received a new update, adding compatibility for the Sony-developed Edy payment system, allowing users to hook up a magnetic scanner through USB and use their credit card for online purchases. A few other minor tweaks, such as additional security, have also been implemented. If you read Japanese, here's the full fix list...

Yesterday Sony sent out a media blast to the press touting that it had just won an Emmy for its SIXAXIS wireless controller in the Peripheral Development and Technogical Impact of Video Game Controllers category. Apparently Sony deceived the press en masse as it not only did NOT win an Emmy for the PS3 controller, but rather for its old Dual Shock analog controller, it is also sharing the Emmy with Nintendo for its D-Pad.

While the CES in Las Vegas is mainly a technology and peripheral convention, it decided to cash in on the E3 demise and add a gaming section, so did SCEA's senior vice president Peter Dille's keynote speech, revealing that the electronics giant has now shipped, not sold, more than one million PS3 units. SCEA's VP put the bar even higher for early next year claiming that it would ship 6 million PS3s once the new console launches in additional markets such as Europe, Australia, Africa, Russia and the Middle-East.

The attorneys general of Los Angeles County and the state of California have reached a settlement agreement with Sony BMG which pay $750,000 in penalties, costs and reimburse California consumers whose computers were harmed by antipiracy software, aimed at limiting the number of copies they could make, on some CDs sold by the record company. Texas filed a similar agreement with the courts on Tuesday and it is expected that the FTC and other U.S. states will do the same over the next year.

As with the PSP, Sony seems to be releasing new PS3 firmware revisions in rapid succession. In its mere 3 weeks of existence, the PS3 has now received its fourth update, addressing an issue with PS2 titles requiring access to the HD (Final Fantasy XI for instance), as well as updating various PSOne and PS2 backwards compatibility titles. If you read Japanese, here's the full fix list...

As with the PSP, Sony seems to be releasing new PS3 firmware revisions in rapid succession. In its mere 3 weeks of existence, the PS3 has now received its third update, addressing various issues such as 1080i problems, support for more USB devices, a restore system setting option, an HD backup utility, HDMI output format setting added, and now supports Bluetooth media remote. If you read Japanese, here's the full fix list...

Sony has released a new v3.00 update for its PSP firmware, removing the UMD game auto-loading, but most importantly adding the ability to play PSOne games on your PSP, but only downloadable through the PS3s PlayStation Store. Nine titles will be available later today, including Resident Evil: Director's Cut, Hot Shots Golf 2 and Tekken 2. You will also be able to use the PSP to control the Blu-Ray and remote access media on your PS3 (music and photos).

The weekend is over, let the next-gen console wars begin! Nintendo rolled out its Wii on Sunday, selling out allotments in numerous occasions, but the craze was nearly not as bad as Friday when people got mugged, stabbed or even shot at while waiting in line for a PS3. While a mere 400,000 units were shipped to stores across North America, USAToday claims Sony will airlift up to 600,000 more units by the end of the year, though it hasn't announced where and when.

SCEA announced the launch of its next generation PlayStation 3 entertainment system, for sale ($499-$599) throughout North America. In addition to the PS3 hardware, a software line up of more than 20 first- and third-party titles will be available at retailers nationwide.

Sony Computer Entertainment America and Ziff Davis Game Group announced today the companies have mutually agreed to discontinue production on the Official U.S. PlayStation Magazine (OPM) in North America, January 2007 being its final issue.

Sony Europe today announced that they've sold 40 million PlayStation 2 units in Europe and PAL territories, surpassing the PS1's 39 million mark. PlayStation 2 has over 2,000 titles available throughout Europe, with another 50 due for release in time for Christmas. In the previous month, over 100,000 units were sold per week, according to SCEE President David Reeves.

PS2 in time for the year-end peak-selling season. The new model is in stores now for a suggested retail price (SRP) of $129.99/$139.99 CND while supplies last.

Sony issued financial results for its July-September quarter which revealed that net profit dropped 94 & (from 28.5 to 1.7 billion yen) compared to same period the previous year. Main reason are the major setback due to the massive 9.6 million Sony laptop battery recall, a big investment in the upcoming PS3 console, resulting in yet another $366 million loss, and less than expected PSP sales.

Playlogic announced that its in-house studio extended its first-party development agreement with Sony Computer Entertainment Europe Limited (SCEE) from earlier this year. One of the two in-house teams will continue to work on an undisclosed project.

Hong Kong gaming retailer Lik-Sang.com announced that it is forced to close down due to multiple lawsuits brought against it by Sony who claims Lik-Sang infringes its trade marks, copyright and registered design rights by selling PSPs from Asia to European customers.

SCEA today announced its debut game titles and unveiled the online strategy for its PS3 system. More than 20 first- and third-party titles will be available, with most titles expected to retail under $60.

Check out the following new screens from Sony's TGS 2006 lineup:

• Ape Escape Racer [PSP] - Screens
• Chotto Shot [PSP] - Screens
• Everybody's Golf 5 [PS3] - Screens & Trailer
• Everybody's Golf Course [PSP] - Screens
• The Eye of Judgment [PS3] - Screens
• Fl0w [PS3] - Screens
• Formula One: Championship Edition [PS3] - Screens & Trailer
• Gran Turismo HD [PS3] - Screens
• Heavenly Sword [PS3] - Screens
• Jeanna d'Arc [PSP] - Screens
• Kingdom of Paradise 2 [PSP] - Screens
• Lair [PS3] - Screens & Trailer
• Monster Kingdom: Unkown Realms [PS3] - Screens
• Motorstorm [PS3] - Screens & Trailer
• Parappa The Rapper [PSP] - Screens
• Ratchet and Clank: Size Matters [PSP] - Screens
• Resistance: Fall of Man [PS3] - Screens & Trailer
• Talkman Lesson [PSP] - Screens
• WarHawk [PS3] - Screens
• White Knight Story [PS3] - Screens & Trailer

Many people were looking forward to Ken Kutaragi's keynote speech to fill in the many blanks, and with only 2 months to go until launch, give details. Unfortunately most of the speech was filled with technical details on GPS, GMS, shopping, banking, networking, and so forth. A few noteworthy things, demos will cost $1, you will be able to download 16bit games (MegaDrive Genesis, and PC Engine TurboGrafx) over the network, and share them with friends. During a short Q&A it was revealed that the 20gig version will now also feature HDMI, and will receive a price reduction (from 535 to $430) in Japan, as a result of consumer complaints about the high price.

SCEA today announced that, starting Sept. 13, the PSP Entertainment Pack, will include a PSP system along with off-road racing game ATV Offroad Fury: Blazin' Trails, the "Lords of Dogtown" UMD movie, and a Sony 1GB Memory Stick Pro Duo, all for $249.99.