1:20PM - Sakaguchi is playing Lost Odyssey, though apparently "playing" is arguable considering the amount of non-interactive cutscenes. The screen shows: "B: Cancel; A: See the Dream." We'll assume he pressed 'A'. Like most UE3 games, Lost Odyssey looks great, but the battle system appears to be quite dated (or traditional depending on which you prefer). Even better: Sakaguchi lost a battle and thus ended the demo.

1:30PM - They show off box art for the game featuring a manga-style painting by Inoue. It will be released on December 6th in Japan, but will not be playable at TGS. Instead, they'll be showing off a new trailer and they'll host another event for the press in November. Sensui is back on stage and says North America will get the game in February 2008, and the rest of Asia in January 2008. He says the game "is already beyond movies."


1:37PM - What's that music ... is that ... Halo? They're showing off the E3 trailer, and we're reminded to prowl for Cortana cosplayers at TGS. There are about 50 Xbox 360 fanboys screaming and shouting at each announcement and trailer, while Sensui explains how great Halo 3 is for the Japanese gamer (something tells me they're not listening). PGR4 is coming to Japan on 10/11 (we already knew that) and Viva Pinata Party Animals is coming in 2007 (we're thrilled, I assure you).


1:42PM - And now the third-party games. Kicking it off with Namco Bandai, showing off a new trailer of Ace Combat 6 (which is an Xbox 360 timed exclusive if you'll recall). Applause. The game will hit Japan on November 1st, and will be playable at TGS (that that, Lost Odyssey!).

1:50PM - Koei is showing off Dynasty Warriors 6, which will launch for PS3 and Xbox 360 at the same time this November, and will also be playable at TGS. They show a trailer for the no-longer exclusive Devil May Cry 4, and say it will be on the Xbox 360 "early next year." It's unclear if the PS3 version has been delayed from its expected Q4 release or if both versions are coming out next year. After the trailer, Sensui calls the game "Devil Maker 4." Hey, don't sweat it, that name makes more sense than "Devil May Cry."


1:55PM - SURPRISE! Ninja Gaiden 2! Our good buddy Tomonobu "Tekken sucks" Itagaki takes the stage and says this is the world premiere of the game. "We, Team Ninja, don't think the last Ninja Gaiden on Xbox was a masterpiece or such." What about Sigma on the PS3? Did you get it right by that point? He continues, "Many compromises there, ten or twenty features we could not implement then. This time, we can finally present those original ideas." It only took what ... four iterations?


The ever humble Itagaki barely squeaks out, "The Xbox 360 is the best game console on the earth and this game is gonna be the best on the console." To prove it, he's showing off some real-time footage of the title. He mentions the leak today (he calls it "the accident") so he's going to show off a new stage.


2:05PM - As you can see (well, you can't, but believe us anyways) the title is jam-packed with gore, handily earning it a Z (that's like an M/AO to us) rating. The screen says, "Rengenge begins 2008" ... in blood. Nice touch. Itagaki says, "Thank you so much. I'm very happy to announce it here today. Thank you." Sensui is back on stage saying, "Sugoi desune!" over and over again. It means "really awesome."


2:10PM - They move onto the broader Microsoft games biz, like Games for Windows. The "platform" now has 250 titles, including Live, in 2007. And a Z-rated platinum collection featuring Dead Rising and Gears of War for about $40 US (what a deal!).


2:20PM - They're showing off new pink and light blue wireless controllers, just like the ones we saw at E3. some ladies are on stage in matching shirts to show off the lovely new controllers. They're also introducing the chatpad for the Japanese market, but there's no release date just yet. The pink and blue controllers will be available on 11/1 or 12/1.


2:25PM - In terms of downloadable contenst, Idol Master is the 3rd best selling game on Live, by numbers sold. For Xbox Live Arcade, they're bringing Rez, Ikaruga, Every Extend Extra Extreme, EXIT, Omega Five, and Trigger Heart Exelica! Wowza!


2:30PM - Square Enix's Kojima Hajime takes the stage to talk about Infinite Undiscovery, the fantasy RPG being developed by Tri-Ace and published by Square Enix. They show a trailer. Hajime is followed by now Kawazu Akitoshi, executive producer for Square Enix's other Xbox 360 bound RPG project, Last Remnant. They show off some real-time footage; unfortunately, the game won't be playable at TGS.


2:45PM - Sensui is back on stage. Says, "The 360 is the most fun, most exciting platform now." They show off a little recap movie for those folks in the audience who may have dozed off for a little bit, and that's it! Sensui says, "See you at TGS!" You bet your behind you will.