Last week we managed to catch the Venture Capital panel at the Virtual Worlds Forum, an event set inside a nightclub situated within a rather eerie warehouse district behind Kings Cross train station. Plenty of black leather sofas with bloggers and attendees basked in purple lights, a glitter ball, and three bars provide an odd backdrop for discussions about monetizing the latest WoW wannabe. The overall atmosphere of this panel was very businesslike -- £995 a head means most attendees were on their respective company's ticket -- so if you want to continue believing that video games are solely a creative medium designed to further society through creation of fun, look away now.

If you're interested in this subject, make sure to check out ex-Joystiq editor Vlad Cole's newly relaunched blog on video game venture capital. Now keep reading.

Apparently the blue laser diode shortage that has delayed the PAL launch of the PS3 will also be affecting the North American and Japanese launches of the console. Sony Computer Entertainment Chief Ken Kutaragi told reporters that far fewer units will be available for the U.S. and Japanese launches, with the U.S. to be allocated 400,000 units, and Japan getting 100,000. As a result, Sony has now lowered its estimate of 4 million PS3s shipped by the end of 2006 to a more realistic 2 million.

Kaz mentioned this exact estimate reduction a couple of weeks ago in a Gamespot intervew (which was quickly retracted), so it appears as if the company has known about the production issues for a while. Thanks to these production issues, trying to bag a PS3 at the suggested retail price before Christmas is going to be game in and of itself.

Sony has officially confirmed that the European launch of the PlayStation 3 has been delayed, citing "production issues with the blue laser diodes needed for the Blu-Ray drive". Originally planned for a simultaneous global release in November, the PAL territories of Europe, Russia, the Middle East, Africa, and Australasia will now have to wait until March 2007 to get their hands on a PS3. Plans to launch the PS3 in North America and Japan this November remain unchanged.

According to the announcement, "the PAL market is the most complicated region in which to launch the system, and is therefore the most pragmatic choice to bear the brunt of a shortage of components". Everyone outside North America and Japan is used to getting a bum deal when it comes to console launches, so this broken promise is certain to leave a bitter taste in the mouths of gamers everywhere. That price premium pill just got a little harder to swallow, too.

[Thanks to everyone who sent this in!]

[Update 4: The ESA has issued a press release addressing the situation. Read more here.]

Next-Gen has the scoop: Doug Lowenstein, the president of the Entertainment Software Association is expected to announce within the next 48 hours that E3, the Electronic Entertainment Expo, the definitive video games show, has been cancelled. Industry sources have told Next-Gen that the reasoning behind this move is primarily one of cost versus return. Publishers aren't getting the media attention that they expect from the large amounts of cash that they're putting down to exhibit at the show.

Apparently publishers believe that the multi-million dollar budgets allocated to E3 would be better used on smaller, specific shows where publishers get all the limelight. There's the possibility of a smaller show taking place in May next year, but as Next-Gen puts it, "it's clear that the days of an industry event attended by all the major publishers, spending big money, are gone."

Check out our commentary on the cancellation at the continued link below.

Around one in ten males and one in two hundred females are unable to discern the difference between some or all colors that other people can distinguish. Like most other people with the disability, I've been colorblind (or, to use the politically correct term, have had color sight deficiency) since birth. I find it hard, and sometimes impossible, to tell the difference between shades of red, green and brown, blue and purple and oranges and yellows. As my optician told me when I was young, this disability means that I can't work in a paint factory or be a pilot. What he didn't tell me was that I'd have trouble playing friggin' computer games!

As you probably know, the Xbox 360 features several colored buttons. Usually I can tell the difference between these buttons (the problem isn't so bad that I can't tell the difference between the equivalent of red and green at traffic lights). However, there's one game that has caused a problem: Rockstar's Table Tennis. A fundamental part of the gameplay is being able to respond to the opposing player's spin on the ball. This is represented by one of the colors which are also found on the gamepad. Blue for left spin, red for right spin, green for forward spin and yellow for back spin. Unfortunately, I can barely tell the difference between the red, green and yellow on a standard definition display. On a high definition screen the green and yellow are still nearly identical to my eyes.

This isn't usually much of a problem during normal play (besides, I can always just press the green button), but on the training levels where you are taught how to spin the ball, I found the task physically impossible. I literally had to guess which spin the computer was giving the ball! Table Tennis has the hardest training level of any game, at least for me. Since completing the training levels is an Xbox 360 achievement, it's also possibly the hardest achievement there is. It took me around 3-4 hours and dozens of reattempts to get the 5 points given to you after you complete training.

Recently there have been some rumblings that Bungie won't make another Halo game after Halo 3 which appear to be centered around a statement that Marty O'Donnell made in an interview with the BBC. In this interview, Marty says, "We all want Halo to be the great ending to an epic trilogy. We look at what Peter Jackson did with the Lord of the Rings films - which each film bettering the previous one and that is what we are aiming for." Does that mean we won't be seeing another Halo game in the future? To people who understand that making video games is a business, the rumors (which are already half-disproved) that Bungie would end the Halo franchise anytime soon are ridiculous.

The first two Halo games combined have sold 14.3 million units. That puts the Halo franchise within the top 30 best-selling game franchises of all time. Without Halo, Microsoft might as well not have bothered with the Xbox; Halo and Halo 2 sold more units than the next six best selling games on the Xbox combined (if you're wondering, these games are Tom Clancy's Splinter Cell, Fable, GTA: Double Pack, Project Gotham Racing, and Need for Speed: Underground 2). With a Halo movie on the way, and the facts that Halo 2 sold more units than the first and is still the #1 game played on Xbox Live under Bungie's belt, it wouldn't be wrong to say that the Halo franchise is increasing in popularity.

The bottom line is that Bungie and Microsoft would have to be stupid to end their most lucrative franchise ever after #3. We don't claim to have any insider information, we don't dispute Marty's statement and we don't deny the possibility that Bungie will create new franchises, but based on pure business logic we'd expect to see at least another two games based on the Halo universe. From a business perspective, for Bungie to dump the Halo franchise after 3 would be sheer stupidity.

[Source for sales figures, Image from 1001 Fonts]

Microsoft has confirmed the existence of Zune, a brand-name that will eventually come to represent an entire line-up of portable media devices. The first device is said to be shipping this year, with more to come in 2007. At the moment, Microsoft seems to be attempting to draw attention to Zune's music and movie capabilities, which is no doubt an attempt to position the brand as a direct competitor to the iPod. This announcement (and the media blitz surrounding it) is intended to put a maximum amount of pressure onto Apple; mentioning Zune's gaming capabilities would dilute the "iPod killer" message that Microsoft is trying to plant in people's heads. Despite this, there are certain tidbits that we can extract from this official announcement that could influence how Microsoft's entry into portable gaming will play out.

Rumors about J. Allard's disappearance were true; he's emerged as one of three people heading the project, alongside Robbie Bach and Bryan Lee. Don't be surprised if J. Allard turns out to be the "face" of Zune, just like he was the "face" of Xbox 360. The drive-based and integrated WiFi aspects of the design as well as the community orientated software strongly suggest that the gaming device will feature Xbox Live Anywhere. What's still unclear is how Microsoft will market their portable gaming machine. With the introduction of a new brand name representing portable entertainment, how will this link to Microsoft's established Xbox brand? Are we talking "Zune w/Xbox" or will the portable gaming device be distinctly associated with one of the two brands, to the exclusion of the other? One way the two brands appear to share a connection is through their respective viral campaigns: they both feature rabbits (Origen, Coming Zune).

The overriding message conveyed by this announcement is that Microsoft is going out of its way to tackle the different portable entertainment markets on an individual basis. This approach contrasts sharply with Sony's entry into portable gaming. With the PSP, the company simultaneously took on the likes of the iPod, the Nintendo DS and more expensive video-only devices. As a result, the PSP has suffered from a degree of brand dilution which has resulted in the near failure of the UMD format and has limited the device's popularity as a gaming machine. By ignoring the gaming capabilities of the Zune (for now) and singling out the iPod and other portable media players, Microsoft is attempting to learn from Sony's mistake. Currently the Zune's immediate target is the iPod, and to some extent, future video-centric iPods, but when Microsoft finally decides to reveal the gaming capabilities of Zune, expect gaming to be singular focus.

Wanna see a hype fest? Do you? You do?! Well just head over to Eurogamer, where the site decided to give Peter Molyneux a free license to hype up his unannounced projects.

In an "interview" that in fifty years will be regarded by scholars as the definitive example of hype creation, Eurogamer asked Molyneux "what's your next game, and when are we going to find out about that?" The rest of the interview consists of Molyneux spouting hyped, fluffy nonsense about how he can't tell us what the game is about, but that it'll definitely be awesome+1 to the max!

I just can't blame Molyneux for this mess -- if you give one of the game industry's most savvy game developers/marketers an open microphone, it's practically a law that he will use it to hype his product. Since Molyneux didn't actually say anything about his next game that might not be included in the game (like what happened with Fable) Molyneux is totally covered. The real blame lies with Eurogamer. This goes way beyond them failing to rein him in; they've gone out of their way to construct hype out of the interview. The accompanying article is dedicated to encouraging readers to guess the word that defines Molyneux's next project. Do they think that the average Eurogamer reader is five years old?!

As Winston Smith says in 1984, "if there is hope, it lies in the proles gamers", so it's encouraging to see commentators calling Eurogamer out on this trash. Stoatboy says "Oh ffs - that was a terrible interview. Love him or loathe him - that interview said NOTHING above any beyond "it'll be GREAT", which is the very least anyone would say about any game they happened to be working on."

See also: Joystiq's interview with Peter Molyneux

The concept: During the 'Game Design Room 101' session at Develop, several developers brought out props to represent their pet peeves from games. If you've read the novel 1984 by George Orwell, you'll know where the concept comes from. In the UK, Room 101 is a weekly game/talk show presented by Paul Merton, who invites a guest to come on the show who then attempt to convince him that a certain annoyance in their lives should go in the bin, and never be seen again. This seminar (and series of posts) takes a look at certain elements of games that were nominated by the panel to go in the games designer's bin. Jen and I are going to take opposite positions in the debate.

The point: Jonathan Smith of TT Games brought out a pair of scales to represent his nomination -- balance. Balance, according to Smith, is where a developer expressly sets out to tell the player "you can have this much fun", rationing the pleasure out piece by piece.

My stance: Balance should stay.

Jen's stance: Balance should go.

You decide.

On the second day of Develop, Jen and I got into a conversation with Darren Waters (right), the new Technology Editor over at BBC Interactive. In the middle of the conversation I mentioned The Guardian, and then the dude on the left piped up and said "I work for them". Turns out it was Greg Howson, a writer for The Guardian who blogs at The Guardian's GamesBlog. We spent most of the time talking about blogging: how the BBC wants to do it, how The Guardian is very brave to already be doing it and how we don't know anything else.

Read - Greg's write-up of Develop
Read - Darren's interview with Bungie legend Marty O'Donnell (quaint picture)

If, like me, you have your Xbox 360 placed near your wifi-enabled computer, but away from your wireless router or modem, then you'll want to take advantage of the Xbox's ability to "borrow" your computer's internet connection. For Windows users, this process is simple; it's just a matter of "bridging" your computer's wifi connection to your PC's ethernet port which is plugged into your Xbox. For Mac users, the process ain't so easy. What follows is a guide for getting your Xbox 360 to accept Mac OS X's internet sharing option.

In our final interview from the Develop Conference, Jen and I had a quick chat with Tetsuya Mizuguchi from Q Entertainment (and Rez fame) about the problems western developers face in trying to tackle the Japanese market, Rez 2 (he regrets never making it) and the issue of games that are critically successful, but don't sell so well (Rez again).

Earlier on in your career you worked on titles like Sega Rally, Channel 5 and Rez. These are all very different genres and styles of game. What's inspired you to create such varied styles in your games?

I don't care about the genre. Somebody once told me that I'm "hopping genres", but I've never really cared about genres. I always think about the human being, the wants that I think people have. Their basic instinct. So my games speak a universal language, so everybody can feel what is fun.

You know that old game you loved but can't seem to find anymore? The one you think you may have lent to a friend, but your memory isn't clear enough to accuse them of anything? Well don't yell at your best mate just yet. We think we may have found your lost game, along with every other person's lost game ever.

A used game store in Japan has such an insanely large collection of used video games on sale that I can only assume that the owner has a super-large magnet in his basement that can pick up loosely place NES carts by the thin metal connection strip and transport them from as far away as Brazil. You're thinking, "but CDs are made out of plastic, how does he manage to collect them with a magnet?" He doesn't.

Two words: Oompa loompas. Trillions of them.

[Via Insert Credit; thanks linus]

For the Develop Conference in Brighton, Sony (who was the primary sponsor of the conference) set up a booth equipped with multiple PSP "pods" and a couple of large widescreen LCDs showing PS3 tech demos. One of the demonstrations was a large shoal of different types of fish swimming around a large space, and the other was a 3D water simulation with semi-realistic waves.

I spent a few seconds playing with the surprisingly light Dual Shake controller -- my first time, I didn't attend E3 -- and pressed select. For whatever reason, and this is why development kits are generally never shown to the public, the demo slowed to a halt, with the nice blue picture jerking away at 3fps continuously in the frame. In a technical sense this isn't a blue screen of death, but it did die displaying a blue screen, so therefore I proudly claim the title of "world's first non-developer to cause a PlayStation 3 to display a blue screen of death". It's certainly the most pretty pseudo-BSOD that I've ever seen.

In our second interview from the Develop Conference in Brighton this week, Jen and I sat down with Rob Kay of Harmonix. Rob was project lead on the cult classic Guitar Hero, a game which is part of a new wave of hyper accessible games that is all about catching the mindset of the mainstream, as well as addicting millions of hardcore gamers. We talked with Rob about song licensing, Konami's recent "Guitar Revolution" trademark and the possibility of a Trombone Hero.

You talked about clones of Guitar Hero in your seminar. Specifically you talked about how other companies are being inspired by the premise of games like Guitar Hero. I don't know if you heard about Konami trademarking a Guitar Revolution game?

Yeah, I read that on the internet. To give Konami props, they started this whole instrument simulation in games thing when they did games like GuitarFreaks which they released in Japan. We worked with Konami on Karaoke Revolution and Karaoke Stage as well. So, I think it's great actually. I'm kind of the opinion that whoever is making these games with us then we're exploring this new ground together. I've got friends who have played Karaoke Revolution, and they wanted more songs so they've gone out and bought SingStar. So I think great, more people are out there playing these types of games.