In this week's Famitsu, three major Japanese developers discussed this year's E3 and how they feel about the various motion technology displayed. Grasshopper Manufacture's Suda 51, Q Entertainment's Tetsuya Mizuguchi and Level-5's Akihiro Hino all somewhat agree on what they see as the future of gaming. "Hardware-wise, it was all about Project Natal," Mr. Suda said, as translated by 1UP, noting his excitement on the possibility of creating a game specifically based around its technology.

"It's not a shift from 2D to 3D or in the number of polygons, but it's games trying to open up an entirely new door," Mizuguchi agreed, continuing, "I thought it would take longer, but it's happening faster than I expected." Ironically, when the trio chose the most exciting games at E3, the list quickly filled with Western-developed games, from Splinter Cell: Conviction and Assassin's Creed 2 to The Beatles: Rock Band. Could they resist the ubiquitous Final Fantasy name drop? No, no they could not. "The visual quality was so impressive that I doubted it was even a game," Hino said of AC2, adding, "Final Fantasy XIII is the same way." Impressed/interested by the motion technology but still loving AAA-franchise sequels? Sounds like the whole game industry right now.

If you were jealous that we got our greasy, unworthy hands on a 4-player co-op demo of Lost Planet 2 during our ransacking of E3 2009, you can now cool your jets -- according to producer Jun Takeuchi during an appearance on Famitsu's "Midnight Live 360," the same demo is coming to Xbox Live "soon." Actually, Takeuchi's exact words were, "soon, I guess," a sentiment that doesn't exactly fill us with optimism regarding the actual soon-ness of the demo's release.

Takeuchi showcased a number of new features during the Famitsu program, such as computer-controlled bots, custom weapon sets and character customization, which he explained can be done using items you unlock in tandem with certain achievements. We don't know whether any of these features will be present in the demo -- but if it's as similar to the E3 demo as Takeuchi says, it should be radical enough without them.

The latest Famitsu issue, in addition to some stuff about Metal Gear or whatever, also features a blowout article about the latest game from Kojima's friend and colleague Suda 51, No More Heroes 2: Desperate Struggle. The article shows that the UAA assassin's organization and its liaison, Sylvia Christel, have returned, along with (necessarily) new assassins like the #50-ranked Nathan Copeland. Desperate Struggle occurs three years after the events of the first game, and Travis Touchdown has been called back into action after Bishop from Beef Head Video is captured by gang members, according to IGN's translation.

To take on these new assassins, Travis Touchdown has developed new techniques -- like dual wielding beam sabers, as seen in the scans. It may just be because the scans are tiny, or because we're insane for No More Heroes, but it seems the graphics have been refined for this adventure. We'll find out on the 30th when a new trailer debuts!

Japanese video game mag Famitsu has an interesting ad as part of its "We Support Xbox 360" campaign. The games mentioned are Magnacarta 2, Bayonetta, Dream C Club, Time Leap, Memories Of 6: Next Relation, Tayutama: Kiss on my Deity and Gears of War 2. Quite a different selection from the games we'd likely see recommended in any other region.

As Siliconera points out, half the games on the list are visual novels -- the site can't decide if that's "a good sign since it shows niche Japanese developers are taking an interest in the Xbox 360," or a bad sign because there was nothing else for Famitsu to recommend. Somebody order more JRPGs like Eternal Sonata, Infinite Undiscovery, Star Ocean and Tales of Vesperia!

Unsurprisingly, there's a brand new Metal Gear game coming out. No, Kojima Production's countdown isn't over yet (that's later today!). A listing at a Japanese 7-Eleven product database reveals that an upcoming issue of Famitsu PSP+PS3 will feature a brand new Metal Gear game. The magazine is scheduled to ship next week on May 30.

We're pretty certain the upcoming Kojima Productions reveal is somehow tied to this upcoming Famitsu story. Considering the game will be featured in a PlayStation-exclusive magazine makes it a pretty safe bet that the game will arrive on either PS3 or PSP. Perhaps handheld players will get a chance at a new Metal Gear Solid Portable Ops experience -- Konami indicated its interest in a sequel over two years ago.

[Thanks David B.! Via IGN]

In the latest issue of Famitsu, Namco Bandai revealed nine more characters for its Tales of based fighting game, Tales of VS, via 1UP. The PSP-exclusive title will feature a roster of characters comprised completely of Tales of alumni across all 13 games in the series. Since announcing the title last month, Namco Bandai has revealed 20 of its 35 characters.

Tales of VS is slated to hit Japanese stores on June 6; no North American release plans have been announced at this time. Japanese gamers who pre-order the title (beginning May 21) will receive a special edition DVD with content from the game's voice cast.

A listing of all currently revealed characters is available after the break.

According to the latest issue of Famitsu (via PSPHyper), From Software plans to follow up its port of Tenchu: Shadow Assassins with some more PS2-to-PSP ports, so we hope you like games about silent, deadly ninjas, and gigantic, destructive mechs.

First, From Software plans to port Tenchu 3 (also known as Tenchu: Wrath of Heaven) to Sony's handheld as Tenchu 3 Portable in August in Japan. Following up that title will be Armored Core Silent Line Portable, destined for a November release, and Tenchu Korenai Portable, which is scheduled for a January 2010 release. Finally, From Software plans to finish off its porting spree with, yep, you guessed it, some more Armored Core, with Armored Core Last Raven Portable set to release in March 2010.

Oh, and one last game that is surprisingly neither Tenchu nor Armored Core -- Fu-un Shinsengumi: Bakumatsu-den Portable, which is planned for a December release. There's no word if any of these titles will be available outside of Japan, but we'll be sure to keep you posted.

Xbox Japan boss, Takashi Sensui, recently sat down with Famitsu [via 1UP] to discuss Microsoft's successes and failures in the Japanese market since launching the original Xbox in 2002. Unlike other carefully worded and positively spun interviews given when discussing complete failures, Sensui leaves no stone unturned when outlining Microsoft's initial mistakes in the region.

One of the major issues discussed was Microsoft's decision to price-cut the original Xbox, three months after it launched in Japan -- offering early adopters games and accessories as a consolation. "I was like 'Whoa, we're dropping the price already?!'," Sensui told the magazine. "We called it the 'Thank You Campaign,' but it was really more of a 'Sorry About That Campaign.'"

Today the Xbox 360 isn't exactly lighting up the sales charts in Japan, but a steady stream of titles catered to the market have helped spike sales at times throughout the last year -- a plan Microsoft continues today. "I really feel like we're expanding now," Sensui said. "Seeing how the 360 has expanded its sales every year makes me very happy. I truly appreciate the support of the users and the perseverance of all the game developers that made it possible."

They say that the Japanese are known for their impeccable respect of timeliness. So why is it that leading Japanese mag Famitsu is revealing its 2008 Game of the Year winners now? Here are some highlights:

• Person of the Year -- Hideo Kojima
  This is a man that not only has time to pen the complex and convoluted script behind Metal Gear Solid 4, but will star in weird videos meant solely for fanboys. That's a man you can respect.
• Rookie Title Prize -- The Last Remnant
  Perhaps "rookie" is a good word to use for Square Enix's RPG that almost played at a respectable framerate on a system that almost sold well in Japan.
• Innovation Prize -- Wii Music
  This game innovated by being the first Nintendo-developed Wii game that didn't sell billions of copies.
• Game of the Year & Best Seller Prize -- Monster Hunter Portable 2nd G
  We love it when "best selling" means simply "the best." In America, the best game of 2008 is Wii Play.

For the complete list of Famitsu's 2008 winners, visit 1UP.

File this under the "unsurprising" category. After years of silence, it looks like the PSP version of Devil May Cry has been canned, indicated by the latest issue of Japanese mag Famitsu finally removing the title from its release list and noting the title's demise. IGN notes that Famitsu has been wrong about these kinds of things in the past, but we're inclined to believe it this time.

The news is disappointing, especially considering the incredible popularity of PSP in Japan. A Devil May Cry game for the handheld would've made quite a bit of cash, we think.

We've got exciting news for the three of you that bought Sega's surprisingly wonderful strategy-RPG Valkyria Chronicles -- in the latest issue of Famitsu, Nonaka Ryutaro, the game's producer, said he was pleased with Japan's reception of the war-torn title, and expressed interest in creating another installment in the franchise. However, considering the game was a commercial flop in North America and Europe, but absolutely beloved in Japan, where the title has spawned an anime series and reached Sony's Japanese Greatest Hits status, it's not certain that any prospective Valkyria sequels would find their way beyond Japan's borders.

Still, while this isn't exactly a cold, hard confirmation of Valkyria Chronicles 2, but it should be enough to pique your interest, provided you bought the game, which Vegas odds would dictate you did not.

Hey, remember Koei's PS3-exclusive action title, Ni-OH? You don't? Well, maybe that's because it all but vanished after making a brief, non-playable appearance at TGS in 2006, never to be heard from again -- that is, until the latest issue of Famitsu confirmed that Koei is, in fact, still working on the title. Admittedly, we'd probably be more excited about this development if we'd have heard anything about the game over the past three years. You don't call, you don't write, and now you expect us to let you just walk right back into our lives? It's not that easy, pal.

According to research conducted by Famitsu publisher Enterbrain, the Japanese gaming industry's year-to-year sales dropped in 2008. Total industry revenue reached ¥552.42 billion last year -- an 18 percent decrease from ¥676.95 billion in sales during 2007. Hardware sales dropped 27 percent from the previous year to ¥231.52 billion, while software sales only fell 11 percent, ending up at ¥320.91 billion.

Flamewar-fueling financial figures were also revealed in Enterbrain's study -- the DS reigned supreme in 2008, with 3,983,205 units sold. In addition, Pokémon Platinum was the year's highest grossing game, with 2,372,336 copies purchased. Second place went to the PSP with 3,230,563 units sold. Trailing behind, the Wii moved 2,257,575 consoles, the PS3 sold 999,903 units, and the Xbox 360 ended with a total of 398,633 consoles sold -- effectively doubling Microsoft's Japanese hardware sales figures from 2007.

What's with the slowdown, Japan? Did you guys collectively take up knitting or something? Don't get us wrong, knitting is awesome, but letting it interfere with your ludological purchasing habits is just plain irresponsible.

[Via Kotaku]