As part of last August's dashboard update, Microsoft added the Games on Demand feature, allowing you to download full X360 games instead of having to purchase physical copies. In Oct. Microsoft is expanding the downloadable portfolio with Rainbow Six Vegas 2, Grand Theft Auto IV, Army of Two, Dead Space and several others.

Check out the following new screens and trailers from Microsoft's Tokyo Game Show 2009 lineup:

• Alan Wake [X360] - Screens
• Crackdown 2 [X360] - Screens & Trailer
• 0 Day Attack on Earth (X360) - New Screens
  
• Joy Ride (X360) - New Screens
  
• Toy Soldiers (X360) - New Screens & Trailer
  
• Snoopy Flying Ace (X360) - New Screens
  
• RayStorm HD (X360) - New Screens
  

At the Tokyo Game Show Microsoft revealed that developers around the globe have embraced its controller-free technology and have begun work on titles to support the Project Natal which was unveiled at this year's E3.

Five new action-packed titles headline the Xbox Live Arcade line-up at TGS, with Snoopy Flying Ace, Toy Soldiers, 0 Day Attack on Earth, Bomberman Live Battlefest and RayStorm HD, as well as new details on the free-to-play Joy Ride, and South Park Let’s Go Tower Defense Play!

Well here's some food for thought. If you thought this morning's rumor that various parties, including EA and Warner Bros., were interested in buying THQ was unbelievable, then how about the fact that, according to options strategist Frederic Ruffy over at New York based WhatsTrading.com, Microsoft might be interested in acquiring Electronic Arts. Shares for both companies jumped up earlier today when the rumor started spreading, with Reuters claiming "a London-based trader also cited similar talk as making rounds in Europe."

Last night Microsoft revealed that it would be pushing live a minor firmware update for the Xbox 360, which in the meantime is already available for download. There are no new features or changes in this update however, it is merely in preparation for additional system enhancements (Facebook/Twitter/Last.FM) that will arrive later this year.

Even though Microsoft recently dropped the price of its Xbox 360, beginning today through Oct. 5, when you purchase an Xbox 360 Elite for $299, Xbox 360 will put $50 back into your pocket with a limited-time rebate.

Usually Microsoft does not comment on rumors but with an Italian ad for the Gears of War 2 Game of the Year Edition clearly showing a Wireless N Networking Adapter, there was not much point in denying anything, so we received the following statement, "We can confirm that Xbox 360 will offer a Wireless N Networking Adapter that will enable Xbox 360 owners to seamlessly connect with their home network with the highest wireless ‘N’ technology. The Wireless N Networking Adapter will provide another choice to consumers and creates an easy way for Xbox 360 owners to fully enjoy the added benefits of Xbox LIVE. We look forward to sharing more details on this product soon. Stay tuned."

Modern Warfare 2 continues the gripping and heart-racing saga with an unprecedented level of action as players face off against a new threat dedicated to bringing the world to the brink of collapse.

Microsoft announced its lineup of titles it will be showing off at Tokyo Game Show 2009 (Sept. 24 - 27), such as Alan Wake, Halo Reach, Forza 3, Fable III, Halo 3: ODST, Crackdown 2, but also a slew of 3rd party titles such as Assassin's Creed II, Modern Warfare 2, Borderlands, Lost Planet 2, Splinter Cell Conviction and plenty more...

As we predicted a week or two ago, Microsoft has officially lowered the prices of the Xbox 360 Elite to $299 (previously $399) and is phasing out the Xbox 360 Pro, which now costs only $249.99 (previously $299).

Check out the following new screens and trailers from Microsoft's GamesCom 2009 lineup:

• 'Forza Motorsport 3 ' (X360) Manufacturer’s Showcase Vol. 1 - Screens
• 'Lips: Deutsche Partyknaller' (X360) Announced - 50 New Screens
• 'Alan Wake' (X360/PC) - New Screens & Trailer
• 'Fable II' (X360) Downloadable in Episodes on Xbox Live
• 'Fable III' (X360) Announced - Trailer

While rumors of a PS3 price drop at next week's Gamescom keep swirling, an anonymous publisher source confirmed to WorthPlaying today that the rumors of an Xbox 360 price drop are real. The Xbox 360 Pro will be eliminated from the retail lineup at the end of the month, and the Xbox 360 Elite will drop in price to $299.

Havok announced that Microsoft Game Studios Europe has licensed the Havok Spectrum software bundle (Havok Physics, Havok Animation, and Havok Behavior) for use by its developers across projects moving forward.

Alan Wake places gamers in the role of the best-selling suspense author, Alan Wake. He escapes to this small town to recover from the mysterious disappearance of his fiancée and comes face to face with his darkest nightmares. An online petition (endorsed by Remedy) has been started asking Microsoft to explain why it suddenly decided to halt the PC development, and strongly urges them to reconsider.

Last year Microsoft launched a new initiative, the Summer of Arcade, going all out with big new titles for Xbox Live Arcade. With two titles down and three more to go Microsoft is offering people who purchase all five Summer of Arcade titles before Aug. 31 an 800 Microsoft Points rebate.

Microsoft revealed its Comic-Con International 2009 lineup, including season three of the Web series The Guild and the new show Girls Go Geek, as well as spotlight its universe of pop culture icons, from hilarious characters like Stan and Cartman of South Park, to the fearless troopers of the Halo universe and the gritty renegade spy Sam Fisher from Splinter Cell Conviction.

Later this summer, Microsoft plans to roll out a major dashboard update for its Xbox 360, improving aspects such as the Netflix streaming video experience, video display options, but also adding new items like premium avatar clothing (with a marketplace), user ratings, and Games on Demand (in August). Microsoft is looking for feedback on the upcoming dashboard update early, so if you want to try it early, sign up here ...

If you never heard of Popfly before, fret not, you are not alone. Launched two years ago, Popfly was one of Microsoft's attempts to get into user-generated content. It launched with little public awareness, which is probably what led to the current decision of shutting it down. With XNA on the forefront and more recently its promising Kudo platform, Microsoft did not need an unknown service for aspiring game developers. On August 24, 2009, the Popfly service will be discontinued; all resources will be taken down; and access to account, games and mash-ups will cease.

EA announced that John Schappert, founder of EA Tiburon and Microsoft's Live Software Division, has been appointed Chief Operating Officer, responsible for Worldwide Publishing, the Online Platform Group, EA Interactive, Central Development Services and other divisions of the company.

During Microsoft's E3 2009 Media Briefing, it not only revealed that Facebook, Twitter and Last.fm are coming to Xbox Live, new Netflix and HDTV features and controller-free gaming, but also showed off a slew of titles such as Splinter Cell Conviction, Crackdown 2, Forza Motorsport 3, Halo: Reach and a bunch more.

Today, Microsoft opened the Electronic Entertainment Expo (E3) with a historic Xbox 360 briefing. In addition to premiering 10 exclusive new games, revolutionizing the way we watch TV, and making it easier to connect to friends, Xbox also welcomed filmmaker Steven Spielberg to introduce "Project Natal" and full-body, controller-free gaming.

Microsoft today announced that the Xbox 360 would deliver instant 1080p movies and TV with 5.1 surround sound — direct to consoles connected to compatible HD TVs through Xbox Live.

Gazillion Entertainment announced that former Microsoft Game Studios Executive Stuart Moulder has joined as Vice President of Studios, and be responsible for the overall management of Gazillion’s game development efforts across the its studios.

Jerry Bruckheimer and MTV Games announced two executive appointments that officially mark the producer's entrance into the video game industry, Microsoft/Halo producer Jim Veevaert and Ubisoft VP Jay Cohen.