Nintendo emerged victorious in the latest round of its legal battle with exergaming equipment manufacturer IA Labs (aka InterAction Laboratories) over alleged patent infringement.

The United States Court of Appeals for the Federal Circuit upheld Nintendo's victory in a lawsuit claiming that the Nintendo Wii and its peripherals violated IA Labs' patents for exercise equipment. As part of the ruling, IA Labs must pay Nintendo over $236,000 in attorneys' fees.

The decision follows up on another recent courtroom victory for Nintendo, in which Ohio-based hardware and software company Motiva alleged that Nintendo's Wii Remote controller violated its patents for a "Human Movement Measurement System."

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The latest Indie Royale bundle is a re-run, chosen by fans, and it features the triumphant return of Really Big Sky, Eufloria, Runespell: Overture, Cthulhu Saves the World and Breath of Death 7. It's available for five more days for whatever the minimum price is (usually less than $5). Those who pay $7 or more can snag Disasterpeace's chiptune album Rise Of The Obsidian Interstellar.

Indie Royale is a pay-what-you-want bundle system with a twist – there is a minimum price, and the only way to knock it down for subsequent buyers is to pay more than that. Bonus, paying more also helps out the developers who provide the games that you want to play in that bundle.

The growing Sega Genesis collection on the 3DS is expanding once again, with Sega announcing a 3D edition of the original Ecco the Dolphin. During the 16-bit generation, Ecco was known for its unique gameplay, high difficulty and unbridled terror. Like other announced 3DS Genesis games, Ecco will feature save states, graphics filters and, of course, 3D. It will also allow players to try out different international versions of the game. Ecco is expected on the Japanese eShop on June 26 for ¥600 ($6.30).

Sega's website also revealed that Galaxy Force 2 is planned for the 3DS. There are also two empty slots, suggesting that we can expect at least two more re-released Genesis games before Sega finishes its 3DS promotion.

Thus far, we've seen Super Hang-On, Space Harrier, Altered Beast and Sonic the Hedgehog released on 3DS in Japan. Space Harrier, Altered Beast and Sonic the Hedgehog have all been rated by the Australian Classification Board, suggesting the 3DS lineup will head west before too long.

Joe Danger and Joe Danger 2: The Movie are set to pop wheelies on Steam on June 24, and the sequel port will come with additional Minecraft and Team Fortress 2-themed goodies. You'll be able to play as the Team Fortress 2 cast – don't tell Joe you're racing without him! – and Minecraft Guy, plus pull from a whole suite of Minecraft items, objects and environments in the level editor.

Joe Danger and Joe Danger 2: The Movie on Steam both benefit from Big Picture mode and will incorporate Steam Workshop into their level editors. Keyboard and mouse controls, as well as game pads, are also supported.

We had a chance to speak with Xbox Chief Product Officer Marc Whitten this evening, following the company's DRM policy changes on Xbox One, and figured if we're already talking about changes, how about that $499 price?

"We really believe deeply in the value that we're delivering. Not just for the first day of launch, which we think is going to be amazing, with amazing games and entertainment experiences, but what this architecture can deliver over the long term." said Whitten. "We feel good about our price."

What about changing the price by removing the Kinect?

"We still absolutely believe in Kinect. It's a core part of the architecture. Frankly, it's really critical that you build it as something that's always there, always part of the platform. So that game creators, experience creators can know they can rely on it. And you, the user, that there's always a consistent experience. That it's not just an accessory."

Consumers aren't the only ones happy with today's changes. Both GameStop and rental service GameFly have applauded Microsoft for today's Xbox One policy shift.

Though Microsoft has changed its stance on the digital rights management-based requirements for the Xbox One, the company remains committed to cloud computing.

"Our vision around Xbox One and what you can do because of the power of both the architecture of the console, and also the cloud and the Xbox Live service, remains unchanged," Xbox Chief Product Officer Marc Whitten told Joystiq.

When asked why Microsoft would not simply offer an offline mode akin to the one featured on Steam, Whitten said "that's absolutely" what Microsoft is doing.

Whitten listed a host of examples of how cloud computing still exists as part of the Xbox One plan, noting players will "see great games like Titanfall take advantage of the cloud processing power" as well as have the ability to get games from the online marketplace and use them on any console.

"We're going to continue to really invest in how those experiences work," Whitten added.

During E3 2013, Fairfax "Mackey" McCandlish, lead designer on the always-online Titanfall, told Joystiq that cloud computing on the Xbox One allows Respawn to "spin off dedicated servers" whenever it wants. "Instead of having everything prepared ahead of time, or misallocate different areas, or have some places be too slow or too much, we can just say 'cloud, find us the right number of computers,'" he added.

Gamestop is pleased with Microsoft's announcement that the Xbox One will allow games to be traded in as usual, a spokesperson tells Joystiq. On June 6, Microsoft announced a system for Xbox One that would allow games to be shared only once, and only to someone the player has known for more than 30 days on Xbox Live. Under this system, retailers would have to sign up with Microsoft to resell Xbox One games.

Today, Microsoft reversed this decision.

"Gamestop welcomes today's announcement from Microsoft about changes in functionality for its next-generation console, the Xbox One," Gamestop says. "This is great news for gamers and we applaud Microsoft for understanding consumers and the importance of the pre-owned market."

Gamestop makes the majority of its profit from used game sales, and following reports that the Xbox One wouldn't support used games, GameStop's stock fell 5 percent. Currently, Gamestop's stock is up 2.5 points in after-hours trading, almost 6 percent.

GameFly is happy that Microsoft will keep things "business as usual" in the next console generation, following today's stunning reversal of its Xbox One digital rights management policy, which will now allow rental games again.

"I always felt good about the future of GameFly, but I feel better today," said Sean Spector, GameFly co-founder and SVP of business development and content. "Today is a win/win for consumers, as well as GameFly. I think choice is always important and now consumers have more choice. And I give [Microsoft] credit for listening to their consumers."

Spector was unable to share what he knew about the console's previous plans, but he notes there were discussions with Microsoft. He said, "I think the original proposal would have been detrimental to lots of people's [business] systems. Not just GameFly. And, most importantly, gamers. Based on what I've read today, which is all I know today, it's business as usual for Xbox. Their statement is really cut and dry."

GameFly plans to have Xbox One and PlayStation 4 listings up on the rental site sometime towards the end of the summer.

Asked if he had anything else to add about today's events, Spector concluded, "It's a good day for gamers!"

There's a pretty massive Sega sale going down on Xbox Live right now. Many games and DLC packs are $5 or less. In the $5 camp are Virtua Fighter 5: Final Showdown, Sonic Adventure 2, Jet Set Radio, Nights into Dreams and Crazy Taxi. Other downloads, such as Guardian Heroes, the Sega Genesis Sonic games (including Sonic CD) and Space Channel 5 Part 2 are only two bucks each. You'll also find a number of $10 Games on Demand titles, including Sonic Generations, Condemned, Sega Superstars Tennis ... and Sonic Unleashed.

Finally, if you haven't tried out Ron Gilbert's latest adventure, you can pick up The Cave for $7.50.

This summer, Square Enix will launch a vampire-hunting app on iOS called Bloodmasque. Set in 19th century Paris, Bloodmasque tasks players with ridding the town of vamps in this Unreal Engine-powered game anchored by a "photo-based character customization experience."

Square Enix snatched up domains for Bloodmasque back in January, tipping us off to the new iOS game and sadly ignoring our most excellent suggestion for an Edgar Allan Poe game. It's okay, Square Enix; we're just going to put on our Crymasque and go sit in the corner for a while.

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This is Portabliss, a column about downloadable games that can be played on the go.

XCOM: Enemy Unknown seems like it was built for iPad. The touch-screen controls on the iOS port are so good that the game feels like it was lovingly crafted specifically for touch devices from the get-go.

These controls are easily the highlight of the iOS version of XCOM (which also runs on the iPhone, by the way). With a redesigned HUD full of chunky buttons, completing actions in the game is a cinch. I actually prefer the touch scheme to wielding a controller. It's a simpler, more intuitive process, and the meat of the game is every bit as good as its console and PC counterparts.

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Australia's government-sponsored media funding body Screen Australia announced its support for local indie game developers, promising to pay out a $6 million grant over the next three years.

The stimulus arrives in response to a sharp decline in industry income and employment. According to the Australian Bureau of Statistics, local game industry employment dropped from 1,431 to 581 people between 2011 and 2012. Screen Australia announced its funding in the hopes that local developers will "grow the business, retain intellectual property, keep a skilled workforce and raise the necessary finance."

The following ten indie studios will share the grant:

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Microsoft has announced an almost full reversal of the controversial digital rights management features built into the Xbox One. The console, launching later this year, will no longer require an online connection, or need to ping the Microsoft servers every 24 hours to hang on to life. It will also now play discs like any regular console and no longer place restrictions on trading games. There will also be no regional restrictions.

"The sharing of games will work as it does today, you will simply share the disc. Downloaded titles cannot be shared or resold," said Xbox division president Don Mattrick. "Also, similar to today, playing disc based games will require that the disc be in the tray."

Microsoft previously addressed concerns about Kinect's always-on, always-listening monitoring of your living room.

Why the reversal? Um, if you paid attention to E3 last week, you observed one of the greatest pummelings in industry history. Sony's PlayStation 4 presented itself as the other side of the coin to Microsoft's restrictions and stole the show.

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This week's Steam deals are headlined by ex-Valver Kim Swift's first-person puzzle game, Quantum Conundrum, available for $4.50 until June 24 at 10AM PT. Anodyne, a 16-bit adventure game from Sean Hogan and Jonathan Kittika, is also on offer, discounted to $5 for the week.

Worms developer Team17's arcade shooter Alien Breed Impact, an expanded version of Alien Breed Evolution, is also $5 for this promotion; physics-based puzzler Obulis is down to $1.25 and manic side-scrolling shooter Ares: Extinction Agenda is $2.50.

While we were given a quick description of the cloud computing at work in the Xbox One version of Titanfall, we weren't able to get an in-depth answer. So we took to a back room at E3 and asked Respawn Entertainment's Fairfax "Mackey" McCandlish, lead designer on Titanfall, to elaborate.

Essentially, cloud computing helps matchmaking, allowing dedicated servers to be spun up on a moment's notice to handle multiplayer matches and find you the most local option when searching for a game. McCandlish also answers other burning questions – like what exactly powers these titan mechs.

Vlambeer is going to live-stream development of its next game. This wouldn't be notable for many other indie developers, but Vlambeer's history makes this strategy appear, for lack of a stronger term, absolutely illogical.

"At this point, all of our big games have been cloned," Vlambeer co-founder Rami Ismail tells me at E3.

He goes down the list: Super Crate Box, Ridiculous Fishing, Luftrausers and Infinite SWAT all have clones. The only acceptable one is the Infinite SWAT "homage," Broforce, from South African team Free Lives, Rami said – it's an example of developers taking inspiration from a game and creating their own world with it. The other ones, though. Those are straight-up clones.

These clones caused major problems for Ismail and Vlambeer's other half, Jan Willem Nijman. The Ridiculous Fishing clone affected the team so strongly that they almost stopped developing their own game completely. Ridiculous Fishing almost didn't exist. Because of a clone.

Hence, Vlambeer live-streaming development of its next game sounds like a pretty terrible idea. Until Ismail explains his reasoning:

"If you look at Ridiculous Fishing, one of the reasons the clone was such a nightmare was because nobody knew that we were working on Ridiculous Fishing. We had to rapidly announce Ridiculous Fishing while the clone story was going down, so people knew that it was our idea first and they stole it from us. With Luftrausers, when SkyFar hit, it was much better, because everybody already knew that Luftrausers was a Vlambeer thing and that SkyFar was a clone."

That makes sense, actually.

"No, it doesn't," Rami says. But Vlambeer is doing it anyway.

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Publisher Bethesda is "unhappy" with Prey 2's current state, company vice president of PR and marketing Pete Hines said during an interview with IGN during E3.

"We appreciate that folks are displeased that we haven't had any update or any info on Prey 2, but whatever your displeasure is, you can't even be remotely as unhappy about it as us," Hines said. "We spent years and millions of dollars and a ton of effort trying to help [developer] Human Head make a great Prey 2 game. What we said the last time we said anything was that it's not up to our quality standards."

Human Head is rumored to have encountered numerous setbacks during Prey 2's development. Anonymous sources claimed that development stalled in late 2011, and rumors from last month indicated that Dishonored developer Arkane Austin might be taking over the troubled project.

Hines' frank comments during IGN's interview suggest that Prey 2 is either on the verge of cancellation or a major shift in development. "You don't just keep throwing money at something or going down a path that you're not happy about," Hines explained. "You have to make tough choices. Again, when we have more info on it, we'll be happy to talk about it. That's what I can say for now."

Android micro-console GameStick will now ship to its Kickstarter backers at some point in August, the start-up hardware manufacturer announced yesterday in an update. Originally slated to release back in April, GameStick was then delayed until June after changes in the manufacturing process were required.

This latest delay stems from the fundraiser's $300 "DESIGNED BY ME!" donation level, which promises 50 backers exclusive early access to development kits for the purpose of beta testing and refining the system's user interface. Getting these devices to the backers took longer than expected, and so has implementing their feedback into the GameStick's UI.

"We have therefore taken the decision to push back the whole project by one month to ensure we can fit this process in," the update reads. "We appreciate that this will frustrate backers keen to get their hands on their device but we did not feel it was fair to bypass this step as it was a key pledge and the feedback will be really welcome."

Nintendo is currently battling the chicken and the egg of the video game business. The Wii U isn't selling at levels to make it a "rational" risk for third-party developers, but how does a console sell if it doesn't have games? We spoke with Charlie Scibetta, Nintendo of America's head of corporate communications, last week at E3 about the House of Mario's business and future.

Nintendo's current strategy is to get some high-profile first party games out the door and grow the Wii U's install base that way. Scibetta tells us in the interview, "We're confident that once some of these games come out that we have planned between now and the holiday and into 2014, that it will help drive the install base and when that happens the platforms will look more enticing to third parties."

We also discuss the recent Wii U recall, which Nintendo is calling a "rebalance," as well as the rising scene of independent games and the future of Nintendo Direct.

Ubisoft has shed a little light on its new Tom Clancy open-world RPG for Xbox One and PS4, The Division. First and foremost, the game has no predefined classes. Players are allowed to assign skills to their characters as they see fit and those skills are "totally changeable." So, you're able to spec your character as a healer or tank or whatever the situation demands.

The publisher also detailed The Division's second screen experience, which allows players to join games via a mobile device. Joining a game via a tablet allows players to take on the role of a drone that can provide a number of benefits to players on a console. The drone is able to heal and provide buffs to players, tag and debuff enemies, and it can even summon a missile strike. Drones have their own progression system as well.

As did many of the games shown at E3, The Division will employ a seamless multiplayer system, allowing online squads to play cooperatively or engage in PVP without leaving the game world. A "black-market economy" system will allow players to create weapons and items and trade them with others.