Last week's rumor that Microsoft is planning to license the 360 hardware out for use in other electronics has yet to be officially confirmed or debunked, but a key industry analyst reckons such a plan just doesn't make sense. Speaking to GamesIndustry.biz, Wedbush Morgan's Michael Patcher says that it would ultimately prove "too expensive" to licensees to make for good business.

Patcher does feel that a move like this might benefit Microsoft "as a way to penetrate more difficult markets like Japan," but that he doesn't see it being beneficial in other territories. The licensing of 360 tech would cause electronics makers to incur additional cost per device, which "would place the hybrid device at a disadvantage" in terms of retail pricing, he explains.

EGM's Quartermann has been in the business of rumor mongering for 20-odd years, but his latest tip-off has to be one of the more interesting we've seen yet. According to the Q-Man's most recent EGM column, Microsoft is set to announce that it will be licensing the core Xbox 360 tech to other companies. Meaning that they can then build their own 360 consoles, or other home electronics (TVs, Blu-ray Disc players) with "360 inside."

In setting up their E3 appointment with MS, New Zealand gaming blog Geekpulp reports that the company listed time on the itinerary to discuss two "surprise games" and one "surprise thing." That last one could be anything – 360 avatars, motion-tracking controllers, a scent-emitting peripheral – but the Geekpulp gang reckons it could be the hardware licensing deal.

If true, this wouldn't be the first time console makers have allowed other companies access to their technology. We've seen Aiwa's Mega Drive (Genesis) / Mega CD / boom box combo, a Pioneer Laserdisc player that ran TurboGrafx-16 games, and arcade machines that accepted Neo-Geo cartridges. Oh wait ... that was something totally different.

[Via X3F]

With Microsoft remaining officially mum on the reasons behind the wave of Xbox 360-killing red rings of death, owners and experts have speculated on causes ranging from cheap heat sinks to bad soldering to power surges. Now, Gartner Research Vice President and Chief Analyst Bryan Lewis thinks he's honed in on the real reason behind the system failures: cheap, Microsoft-designed graphics processors.

Speaking at the Design Automation Conference, Lewis said Microsoft tried to save a few million dollars by designing the Xbox 360's GPU in-house, rather than farming the design out to an experienced, approved application-specific integrated circuit vendor. Lewis chalked the high failure rate to Microsoft's inexperience designing such chips. "How many ASICs per year does Microsoft design? Not many.," Lewis said. "The ASIC vendor could have been able to design a graphics processor that dissipates much less power."

The irony is that Microsoft is widely believed to have gone to experienced ASIC-designer ATI for a redesigned Xbox 360 graphics chip in the middle of 2007. So, in addition to spending over a billion dollars on a warranty extension, Microsoft probably still ended up having to spend the few million dollars they were trying to avoid in the first place. Smooth move, ex-lax.

[Thanks copa.]

PS3 sales for FY08 were up a whopping 156% over FY07, which saw only 3.61 million systems leave the warehouse. Despite the impressive upturn, Sony's current-gen box continues to trail behind PSP and last-gen's champ, PS2, which sold 13.39m and 13.73m units during the same period, respectively. Still, Next-Gen reports that SCE has managed to make a significant dent in its losses over FY07 (￥124.5 billion [US$1.18b], down from ￥232.3b [US$2.21b]) and predicts that it will finally be back in the black by this time next year.

We're getting pretty sick of the money-printing jokes so we're just going to avoid it. Famitsu owner (and trusted sales data tracker) Enterbrain reports (via IGN) that Nintendo has sold six million Wii units in Japan, bringing the worldwide total to 25 million. Other fun statistics (assume exactly 6 million as of the start of May 13):

• With a population of 127.4 million, that's approximately 4.71 percent of all the people in Japan.
• The Wii launched midnight on December 2, 2006, exactly 527 days ago. That amounts to 11,385 per day, 474 per hour, and 7.9 per minute (in Japan).
  
• Nintendo passed the 5 million mark as of January 20, or 113 days ago. So specifically, the 5 million went at an average of 503 per hour, with the latest million going at about 369 per hour (again, in Japan). That doesn't mean the Wii is slowing down, given the higher rate includes a launch and two holiday seasons.

In terms of software, Mario Kart Wii has become the sixth game to pass the one million mark, while Wii Fit has passed the two million mark as of May 13. Only two other games have gone double platinum: Wii Sports (not bundled with console in Japan) and Wii Play.

We've heard about various reports of the technical problems with Grand Theft Auto IV. We're conducting a network-wide poll with our friends at X3F and PS3 Fanboy to see how the Joystiq community has been afflicted with the issues. After voting, please let us know your specific problems in the comments below.

Are you having problems with Grand Theft Auto IV?
	Yes, and I use the Xbox 360
	Yes, and I use the 60GB PS3
	Yes, and I use the non-60GB PS3 (please specify in comments)
	No problem (Xbox 360)
	No problem (60GB PS3)
	No problem (non-60GB PS3; please specify in comments)
	Don't own the game, I just felt compelled to click something

Making up for last week's barren edition, today's Ask Joystiq is a little heftier. Topics covered include He-Man and Day of the Tentacle, Chex Quest, PS2 boxes, broken Xbox 360 controllers and region downloading (again). If you have any burning questions, unsolved gaming mysteries, or just a desire for musings from our knowledgeable cadre of writers, drop us a line at ask AAT joystiq DAWT com (and yes, we write it that way for a reason).

Q: Do any of you remember the 1997 PC game "Chex Quest"? When I was 9 I got it in a box of chex cereal and thought it was amazing. Recently my 5 year old cousin came over to my house and told us about a game with chex and cheerios and "zorch". Amazingly enough he had been playing Chex Quest on his friends computer! What ever happened to quality games being released in cereal boxes?
- Curtis C.

The question here is more rhetorical than anything, but once we learned more about this game we absolutely needed to post about it. In 1996 a small newmedia company called Digital Café created Chex Quest, a Chex-themed first-person-shooter that has the esteemed honor of being the first video game ever distributed for free through cereal boxes.

If that alone wasn't cool enough, Chex Quest was actually a total conversion of id's Ultimate Doom, meaning that cereal-munching munchkins were playing a re-skinned version of the violent revolutionary series just two years after the height of its controversy. According to the Chex Quest wiki, the inclusion of the game helped increase sales of Chex cereals by over 200%, and it won several awards for promotional achievement.

Chex Quest has since been made freeware (PC only), and can be found for download here. As for releasing quality games in cereal boxes, we're all for it. If indie games can be distributed along with trendy t-shirts, we see no reason why indie developers can't strike similar deals with Kellogg's. Get on it, guys!
- Scott Jon Siegel

All you jerks out there who are used to lording your shiny new DS Lites over Phat-owning early-adopters might have to get used to playing second fiddle soon. In the latest issue of Japanese gaming rag Famitsu, publisher Hirokazu Hamamura speculates that a new version of Nintendo's best-selling handheld may be revealed at this summer's E3 trade show.

As detailed in a Bloomberg Japan report (sketchy machine translation), Hamamura's comments seem based on nothing more than industry chatter and pure conjecture on his part -- Nintendo predictably offered up a no comment. The timing does seem about right, though -- going back to the Game Boy days, Nintendo has released a new portable hardware revision roughly every two years since 1996's Game Boy Pocket (1998: Game Boy Color; 2001: Game Boy Advance; 2003: GBASP; 2004: Nintendo DS; 2005: Game Boy Micro; 2006: DS Lite). What would you like to see on a potential DS upgrade? Let us know in the comments.

[Via DSFanboy; picture source]

The brouhaha over Microsoft's ever-present Red Ring of Death is sooooo 2007. The "Red Light of Death" is the new Xbox 360-breaking craze for the oh-eight ... if a Consumerist post is the front end of a trend, that is.

Unlike the distinctive three red lights of the RRoD, the "E74" error is characterized by a blinking red light in the lower-right corner of the ring and graphical problems on the television. The problem has been known for a while but is currently not covered by Microsoft's extended three-year Xbox 360 warranty, which only applies to traditional Red Ring problems -- E74 sufferers have to shell out the money to ship their system in for repairs.

Taiwan's Acer computers is looking to expand past its image as a budget notebook maker with a planned gaming-centric PC, according to a recent interview. Details are scarce, but company VP James T. Wong touted the planned gaming machine's basis in "open standards," compared to closed, proprietary systems of the likes of Microsoft and Nintendo (perhaps Mr. Wong has not heard about the system-opening efforts of XNA and Wii Ware).

Of course, an "open standard" gaming PC could be anything from a simple PC Gaming Alliance-approved system to a full-on Phantom-style set-top box that can run any PC game. We're certainly hoping its the latter -- headline writing hasn't been nearly as fun without the Phantom to kick around.

[Via Engadget]

Those who've been visited by the Xbox 360's infamous Red Ring of Death will be heartened to hear Bill Gates feels your pain. In a video interview with the BBC, the Microsoft chairman responded to a viewer question about console reliability. After apologizing for the problems and patting himself on the back for Microsoft's free replacement and warranty program, Gates points to what he calls "incredible reliability on the new work that we've done. Our commitment is it will be the most reliable video game box out there."

It's a nice sentiment, but if we're measuring lifetime failure rates, the 360 has a long way to go to get that "most reliable" mantle. Regardless, we can all probably agree with Gates' sentiment that "we've got to make sure the hardware never stands in the way of [enjoying games]." Amen to that.

[Via GameDaily]

Watch - BBC Interview with Bill Gates

Quick, grab your loved ones and head to that bomb shelter you built in the backyard just for such an occasion. (Apartment dwellers, find a local church or Wal-Mart and get nestled in.) Sony's PlayStation 3, after seeing its ego deflated a few weeks back when the Xbox 360 trumped it, has leapfrogged into third place for last week's hardware sales in Japan, dropping Wii to a meager fourth place by a margin of approximately 21,000 units (55,924 vs. 34,546).

In its acceptance speech, Sony thanked the newly-released 40GB model and assured the attending audience that upon arrival the Four Horseman will no doubt hail the PS3 as their console of choice.

But wait! Perhaps we spoke to hastily about this being a sign of imminent apocalypse. The Xbox 360 has moved back to its normal slot, between the PS2 and Game Boy Micro. "Phew," you say as you wipe the sweat from your brow, "that was a close one." Those with an ever-vigilant and watchful eye should look out for the following scenario:

• PlayStation 3 beating Wii
• Xbox 360 beating PS3 (and therefore, by chain rule transitive property, the Wii as well)
• Nintendo DS in any position other than first

We have averted crisis thrice before today's scare, although the occurrences have happened more frequently as of late. We'll have more information later today.

[Image credit: roland]

A report from German site Computer Base reveals that consumers giving up backward compatibility on their 40GB PS3s are at least getting something in return. The new systems utilize the new 65nm version of the Cell processor, reducing the power usage from 200 watts to 135 and further limiting the heat and noise the system gives off.

With both the Xbox 360 and PS3 now having the cheaper, more efficient 65nm CPUs integrated into their designs, the race to 45nm can truly begin. After that? We're predicting microscopic quantum CPUs.

[Via Engadget]

Thanks in no small part to a price drop and a new model, Microsoft's Xbox 360 scored a 260% sales increase in the United Kingdom from two weeks prior, according to ChartTrack (via MCV). The Elite model was released in the territory August 24 for £299.99, while the Pro and Arcade models received price drops to £249.99 and £179.99, respectively. The momentum is also likely to be helped by a certain Covenant-crushing behemoth set to deploy later this month.

Though Microsoft may be having its (VH1) Best Week Ever, Sony's PlayStation Portable had its worst. ChartTrack is reporting the PSP had its worst week of sales since its launch September 1, 2005. Both SCEE and ChartTrack blame the sales drop-off on the impending launch of the PSP-2000 model, coming September 14 (sans ceramic white) and believe the redesign will boost the PSP's sales.

Chart-Track did not provide specific numbers for either console's sales.

Read -- 260% sales jump for Xbox 360
Read -- SCEE looks forward after worst week ever for PSP

Sources close to Inner Bits reportedly tell them that Sony unsurprisingly has been working for the past few months on engineering the Sixaxis controller to shake and rattle (it already rolls). The problem currently lies with battery life.

"Between the rumble and the wireless support, the batteries are draining too fast to be acceptable for consumers," said the report. The project has been going on for months and Inner Bits believe (as do we) that Sony will manage to find an efficient solution.

One point the report brings up is Sony public relations, as they have in the past cited rumble as "not next-gen" (pending a now-settled Immersion lawsuit) and then getting those who already have rumble-less Sixaxis pads to upgrade. Rumble has rarely been used as an integral feature to gameplay (one exception includes finding hidden objects in Psychonauts).

[Via PS3 Fanboy]