The news means that recently-surfacing concept images of a new PSP model may be close to the handheld’s actual redesign.  The PSP-4000 may look a little like the Game Boy Advance SP when the controls are exposed during gameplay and may, presumably, be closed for video playback.

Sony has been adamant that it isn’t working on a PSP2 console yet, and the news that the next PSP model will be a drastic redesign explains that statement — Sony wants to focus on the updated model (and its sales) before marketing the next big handheld.

The new PSP model is rumoured to be due out sometime in 2009, although Sony has yet to make any official announcement about the model’s design or release.

The announcement comes alongside news that Sony plans to take on Latin America by releasing its PS3, PS2 and PSP systems there.

The company’s phased approach involves eventual expansion to thirteen countries in the area, beginning with Argentina, Chile, Columbia and Peru in the first phase.  Sony also plans to set up a localized PlayStation Network in the area.

Ian Jackson, VP of sales at SCEA, has high hopes for the region.  “Long-term it has a very good opportunity to be bigger for SCEA than the Canadian market was,” he says.

The Nintendo DSi is 12% smaller than the DS Lite, but features slightly larger screens.  The new package also boasts dual cameras — inside and out — as well as an SD memory card slot and new music playback features.

The Japanese market has been enjoying the DSi since November.

Naturally, no other details are known, but many wonder if the game falls under Bethesda properties like the recently revived Fallout or their famous The Elder Scrolls series.

The news is certainly good for Apple, whose iPhone and similar iPod Touch have  been pushing their way into the gaming market.  The device already has many casual games available, but has the capability to present more to gamers.  Big name developers like Square Enix (who have released a Final Fantasy Tactics spin-off Crystal Defenders to the device) and now Bethesda paying attention to the iPhone certainly lends it some credibility.

The bundle includes the branded 160 GB PS3, as well as the new Final Fantasy VII: Advent Children Complete movie set.  The Advent Children Complete set also contians a PS3 demo of the upcoming Final Fantasy XIII.

The Final Fantasy PS3 bundle goes on sale on April 16, 2009 in Japan for 49,980 yen, about $550 U.S.  There are no known plans to release the bundle outside of Japan.  The Advent Children Complete set goes on sale the same day, also containing the FF13 demo.

In an interview with G4TV, Microsoft’s Aaron Greeberg indicated that he expects the Xbox 360 to stick around for quite some time.

I think we absolutely have a very long life ahead of us. I think what we’re seeing this generation is that we have a console that is no longer limited by hardware. … We see a very, very long future ahead of us as we think about the platform and we’re not even thinking about the next generation at this point.

Greenberg indicates that the power of connectivity through its Xbox Live system is partially responsible for the lifespan of the Xbox 360.

I think that what we did with the New Xbox Experience, and many people said that it was essentially like launching a new console and we did that through the power of software.

Sony had made similar remarks about its PlayStation 3, but theirs seemed, in part, a defense of the console’s slow adoption compared to its competition.  Apparently the company didn’t expect its leading-edge console to really catch on until 2009-2010 anyways.

Microsoft has promised that it’s “just getting started” with the New Xbox Experience, and that more updates and goodies are on the way for the Xbox 360.

“No, there are currently no plans for a PSP2,” David Reeves of SCE Europe tells MCV. “I go to Tokyo quite a lot, and no one there has referred to it. I think they have their hands full at the moment.”

No PSP2 quite yet.

The sales of Xbox Live Arcade titles tripled during the week that the new Experience was released, with preference given to some of the Avatar-enabled titles.  Uno, which has been out for years, saw a 650% increase in downloads the day Avatar support was added.

For the week after the launch, movie downloads went up by 49% and TV show downloads went up 30%.  The New Xbox Experience brings these to the forefront, turning the Xbox 360 into a media hub. (Hey, we thought that was Sony’s thing…)

There are over 14 million users on Xbox Live.

On the matter, Molyneux was only able to say, “I think it would be a great thing for this studio to work on.”

“I can’t say anything else on it – I would be killed to death.”

Microsoft has not revealed official plans to begin distributing full games digitally, but the company could easily be preparing for it.  Xbox Live Arcade games and Netflix movies, the company has been pushing digital distribution.  With the failure of HD-DVD, which Microsoft had been backing over Blu-ray, it may be that digital distribution is the way for them to go.

Some analysts even speculated that Microsoft only backed HD-DVD in order to keep the market confused until it could introduce digital distribution as a superior option.  Fable II may be the first game to test the waters, although it’s already experienced high sales on physical media.

Speaking with Kotaku, an Aaron Greenberg, an Xbox 360 product manager, says that he isn’t impressed with the service:

“What Home to me feels like is Second Life for hardcore gamers … It doesn’t feel like it broadens the experience and invites people in. When they unveiled it, it seemed innovative. I think what’s happened is now here we are a couple of years later and we feel beyond that … It feels like 2005 tech in 2008″

One of the biggest points that PlayStation Home tries to make is that it’s a free service, while Xbox Live Gold members have to pay in order to play their games online.  Greenberg insists, though, that no price drops are in Xbox Live’s near future, and that the cost of Live is justified by the service:

“I think we have seen people are willing to pay for the premium experience. When they compare Live, even to Home, there is still a huge gap.”

Greenberg also insists that Xbox Live is prepared for the holidays.  The service, which experienced difficulties last Christmas after an unexpected number of people went online, has reportedly been improved since.  “We are well prepared for the type of growth we expect this holiday,” says Greenberg.