Microsoft will acquire BigPark Inc., formed in 2007 by veterans of EA Canada and Distinctive Software. The acquisition will bring BigPark’s developers into Microsoft Game Studios, where the team will continue development on an exclusive Xbox 360 game.

Beginning in May, the $399 Xbox 360 Game of the Year Bundle provides 120 GB of storage, a wireless controller, a wireless headset, an HDMI cable, a free Netflix trial, Lionhead's RPG Fable II and Bungie's FPS Halo 3. With the broadest selection of blockbuster games and a robust catalog of TV shows and movies available from Netflix, now is the best time to own an Xbox 360.

It's no secret that Microsoft has been plagued by a slew of hardware failures on its Xbox 360 console. In the past, the warranty had been extended, enhanced, extended even more, and now it seems another error has prompted the Redwood software giant to alter its policy. Gamers who experienced the E74 error on-screen are now covered under the latest three-year warranty plan, and if you were charged before the change, you will get a refund.

At last week's GDC's Luminaries Lunch, Blizzard's Rob Pardo claimed that they were having preliminary discussions with Microsoft about the next Xbox console, which it now has denied, saying that "we aren't in discussions with Microsoft regarding any future consoles" and that "Microsoft occasionally bounces ideas off of us, with no specific reference to any possible future consoles."

While analyst Michael Pachter claimed earlier this week that this round of consoles will be the last one, Blizzard's Rob Pardo revealed at GDC's Luminaries Lunch that they are in contact with Microsoft and having preliminary discussions about the next Xbox console. The main talking points seem to be the input device and ways of making it easier for users to interact with games, particularly MMOs and RTS titles. It's one of the reasons Blizzard is not currently supporting consoles.

Chair Entertainment announced that Howard Phillips, a 28-year veteran of the interactive entertainment industry, has been appointed studio director for the Utah-based game development studio.

U.S. District Court judge Leonard Davis has dismissed a patent-infringement lawsuit against Nintendo (and similarly against Microsoft) brought by Fenner Investments, which alleged that the Wii and its controllers, as well as the GameCube, infringed on one of its patents.

At a UK press event Microsoft unveiled that is has signed an agreement with NBC Universal International, making films from Universal Pictures the latest content from a major Hollywood studio to join the Xbox Live roster.

Beginning today, Xbox Live Gold members will receive deep discounts (25 – 50% off) each and every week on the hottest Arcade titles, Game Add-ons, Xbox Originals, and other great content. This adds to the incredible value Gold members already receive from their Xbox Live Gold membership.

Laura Fryer, former Executive Producer at Microsoft Games Studios, has been appointed General Manager, Seattle Studios, Warner Bros. Interactive Entertainment, overseeing the company’s internal development studios based in Seattle.

The Get Game Smart Video Contest is a search for parents and teens to serve as Get Game Smart Ambassadors -- a new set of messengers that will help educate their peers on making smart media choices.

Yesterday Microsoft's latest financial results revealed that the software giant would be laying off 5,000 people over the next 18 months, starting with 1,400 immediate dismissals. While rumors are that the entertainment division will be hit hard (Zune and Xbox) it has been confirmed that ACES, the internal studio responsible for the long-running Flight Simulator series, will be shut down. However, Microsoft also said that this does not mean the end of the franchise; it will continue, but no specific details were disclosed.

Late last year, Microsoft revealed that in light of the weakened economy it would be laying off up to 17% of its workforce (15,000 employees), and now that the numbers are in (2% increase in revenue, but an 11% decrease in net income) the Redmond powerhouse announced that in order to reduce the company’s annual operating expense run rate by approximately $1.5 billion it will be laying off 5,000 jobs in R&D, marketing, sales, finance, legal, HR, and IT over the next 18 months.

According to the NPD Group's December sales numbers, the industry grew 9%, making for an overall 19% growth in 2008 (amounting to $21.3 billion). Not surprisingly 2008's big winners are Nintendo's Wii (10.2 million units) and NDS (9.9 mill. units), followed by Microsoft's X360 (4.7 mill. units) and Sony's PS3 (3.6 mill. units). Software-wise, Wii Play took the crown with over 5 million copies sold in 2008, followed by Mario Kart Wii, Wii Fit, and Super Smash Bros. Brawl, all selling more than 4 million copies. GTA IV (X360, 4.2 mill. copies), Call of Duty: World at War (X360, 2.7 mill. copies) and Gears of War 2 (X360, 2.3 mill. units) are next, with the only PS3 title in the top 10 being GTA IV with 1.8 mill. copies sold.

Microsoft's Get Game Smart Campaign is public service campaign takes a first-of-its-kind approach to educating and engaging American families by helping parents and kids maintain an ongoing dialogue around balanced and age-appropriate media use and, more specifically, video games, in their homes.

Xbox revealed sales data showing Christmas 2008 was the biggest sales period ever in the brand’s six-year European history, with sales of Xbox 360 almost double those of Christmas 2007. Eight million Xbox 360 consoles have been sold in Europe, the Middle East and Africa up to the end of 2008.

The games industry has weathered the bad economy for quite a bit now, and while games are still selling well the past few months have shown that developers and publishers a like are bracing for the inevitable impact. A few weeks back Sony announced big layoffs, as did EA, various developers have merged or shut down, and now Microsoft announced that it will be laying off 17% of its workforce, a total of 15,000 employees will get the pink slip in the new year.

Resident Evil 5 is the forthcoming installment in Capcom's survival/horror series, promising to revolutionize the series by delivering an unbelievable level of detail, realism and control. Last week we reported that the Japanese RE5 demo suddenly became inaccessible and corrupted, and while Capcom US claimed innocence, Microsoft did not provide us with a statement until today ...

NPD has released its sales numbers for the month of Nov. and it comes as no surprise that the NDS and Wii wiped everybody off the map with 1.57 and 2.04 million units, respectively. As mentioned, Microsoft outsold the PS3 2 to 1, moving 836k units compared to Sony's 378k. Software-wise, it was all about Gears of War 2 with 1.56 million copies, with Call of Duty: World at War hot on its heels with 1.41 million, although if you add both the PS3 and X360 platforms together, it sold a combined 1.88 million copies.

Resident Evil 5 is the forthcoming installment in Capcom's survival/horror series, promising to revolutionize the series by delivering an unbelievable level of detail, realism and control. Last week, Capcom Japan released a RE5 demo, and handy gamers could easily download it by signing into a Japanese XBL account. But a week after its release, non-Japanese gamertags were suddenly forced out of XBL when running the demo, and then upon return, the demo magically became corrupted.

This week Xbox 360 is kicking off two global 30-day specials to bring great deals on select Xbox Live content (every monday a deal on either a movie rental, a map pack or even an XBLA game) and even free multiplayer for a list of great XBLA titles.

Now that Black Friday and Cyber Monday are over, Microsoft is quick to tout its victory over Sony, claiming the Xbox 360 has outsold the PS3 by a 3-to-1 ratio. Compared to last year, sales are up 25% in North America, and since the price reduction in September, European sales have skyrocketed as much as 400%. Microsoft VP Don Mattrick claims the Xbox 360 now has a global install base of 25 million and an online community of more than 14 million Xbox Live members.

Announced way back in 2003, Microsoft Train Simulator 2 provides the opportunity to command a 200-ton modern diesel locomotive or operate a steam-breathing behemoth from the past.

The New Xbox Experience will give X360 owners a new experience that is fun, social and simple to use, and puts more entertainment at their fingertips than any other device connected to the TV. Last month Microsoft rolled out its new dashboard update/revamp but a limited amount of users have since experienced issues with sound output, mainly on older devices. A short statement was issued basically saying, "we are aware that a handful of Xbox Live users are experiencing audio issues, and are diligently monitoring this issue and working towards a solution."

Xbox Live Arcade is providing an even greater incentive to log-on and load-up: discounted best-selling titles! Download a trio of hit Xbox LIVE Arcade games, including Feeding Frenzy, Ultimate Mortal Kombat 3 and Worms for only 400 Microsoft Points each.