Source: UK-based gaming site CVG.

What we heard: Microsoft is expected to launch its camera-based motion-sensing device currently known as Project Natal in 2010. As software support will factor heavily into the success of the Xbox 360 add-on, the publisher has already signaled its intent to have its internal studios heavily back Project Natal. Last month, Peter Molyneux confirmed that Fable III will make use of the device, and Microsoft has indicated through a host of job listings that it is building out an all-new studio dedicated to Project Natal development.

Of course, Banjo-Kazooie developer Rare, which Microsoft purchased in 2002, is also at work on Project Natal software. However, according to CVG, the studio's Natal development has apparently come at the expense of a sequel to the Xbox 360 launch title Kameo: Elements of Power. Citing unnamed sources, the site reports that Microsoft also ceased Kameo 2 development due to disappointing sales of the critically praised original.

It looks like things aren't all sunshine and rainbows for Kameo.

CVG's sources went on to note that Kameo 2 was taken out of the development pipeline around the time that the publisher restructured Rare earlier this year. At that time, Microsoft Game Studios reps declined to comment on whether the restructuring effort would affect any in-development projects. However, the publisher did indicate that it would be "implementing a new approach to current projects in the pipeline."

The official story: Microsoft had not responded to a request for comment as of press time.

Bogus or not bogus?: Looking not bogus. According to the NPD Group, the original Kameo has sold just over 300,000 units in the US since its November 2005 launch despite being offered at a lower price point than normal 360 titles. That figure is markedly lower than even Rare's other launch title, Perfect Dark Zero, which has moved some 655,000 units over the same period of time, according to NPD.

Source: See below.

What we heard: An increasing number of gamers paging through the manual of the critically acclaimed Grand Theft Auto: Episodes from Liberty City are noticing something eye-catching in its third-to-last page. It's a small mock ad (pictured) for the fictional film, Liberty City, It's Over, an apparent parody of the metropolis-focused short compilation movies Paris, J'taime and New York, I Love You.

In its center, the ad shows the cover art from Grand Theft Auto IV inside a torn-asunder heart--a sign some are taking to mean that the Ballad of Gay Tony is the last title of this GTA generation set in Liberty City. Then, below the title, are the words "Next Stop" above a rip in the poster--a phrase some are taking as a cue to the franchise's future direction.

Random joke or hint at GTA's future?

Inside the rip is part of a blue-gray and yellow image that somewhat resembles the color palette of Los Santos, the Los Angeles facsimile in Grand Theft Auto: San Andreas. It could also be that of Vice City, the Miami clone featured in Grand Theft Auto: Vice City. The fact that the poster also mentions the film is "coming in March" has some people wondering if that's the date when the next GTA will be announced.

Yes, the leap is pretty tenuous, and could just be another example of the random, wacky humor that is the GTA series' trademark. However, it has been shown that Rockstar loves to hide clues of its future plans in advance. One example is the Impossible Trinity achievement in Grand Theft Auto IV, where the protagonists of the two Xbox 360 expansions--Johnny Klebitz and Luis Lopez--meet the main game's protagonist, Niko Bellic.

Another reason the ad is getting so much attention is that Wedbush Morgan Securities analyst Michael Pachter said he expects the next installment in the GTA series next year. In a note sent to investors in early September, he said he expects the next full GTA game to arrive by the 2010 holiday season. He also expects Episodes from Liberty City to sell between 1 and 1.5 million units domestically, a prediction that--if realized--shows that demand for GTA games is as strong as ever.

The official story: Rockstar did not respond to requests for comment.

Bogus or not bogus?: Too little to go on. However, there's no doubt Rockstar is making a new GTA. And with San Andreas and Vice City being two of the best-selling games of the decade, Rockstar founders Sam and Dan Houser would be foolish not to revisit those locales as they did Liberty City.

EDITOR'S NOTE: This story has been updated at the bottom.

SPOILER WARNING: The story below contains information that reveals major plot details about Call of Duty: Modern Warfare 2. The game's developer, Infinity Ward, is recommending a total media blackout for those who wish to play the game without any prior knowledge of its story.

Source: Leaked video viewable (for now) on CNN's user-submitted iReport section and on Mapmodnews.com. The same video has been pulled from YouTube "due to a copyright claim by Activision Games Inc," indicating its authenticity.

What we heard: In every trailer released for Modern Warfare 2--including the almost image-free teaser released at the 2009 Game Developers Conference--one event has loomed large. Each trailer depicts a group of Russian ultranationalist terrorists massacring civilians at an airport with assault weapons.

Now, footage has leaked that appears to show the game will indeed depict the massacre, reminiscent of last year's mass killings in Mumbai, India, which left nearly 200 people dead. In a move sure to ignite controversy, the footage indicates the game will cast players as one of the killers, having them shoot civilians en masse from a first-person view.

Several sites have posted footage showing the same group of five terrorists (including the player), wearing body armor over business suits, as has been shown in every trailer for the game. (See screen comparisons, which have leaked, lower-resolution footage on the bottom.) The killers first emerge from an elevator, as the sound cues in the very first trailer portrayed. Once out, they open fire indiscriminately into a crowd by the security lines before moving up a series of body-draped escalators shown in the "Infamy" trailer released earlier this month.

From there, the terrorists move through a shopping level--with the player dispatching wounded civilians squirming on the ground--before moving down another escalator. Then, the scene shifts to the airport's tarmac where they encounter a group of security personnel under a large passenger jet with red, white, and blue stripes. The same jet appears to be shown in the "Infamy" trailer but from the opposite viewpoint of the security personnel moving to stop the killings.

At that point, the leaked footage ends. However, despite being of low quality, the footage bears several telltale signs that indicate it is authentic--or an extremely elaborate mod. First is the fact the terrorists shown look identical to those in the last two official Modern Warfare 2 trailers. Second is the fact the blurry subtitles appear to show the name "Makarov"--the last name of the game's primary antagonist, Vladimir Makarov.

Third is the onscreen heads-up display, which appears to be the same as that in preview versions of the game shown to the press. Fourth are indications that the footage came from the same European source that posted video of a third-person multiplayer mode in Modern Warfare 2. Reflections on the screen showing another monitor and PlayStation 3 menu cues are the same as footage that appeared on YouTube before being pulled.

That same yanked third-person footage was confirmed as being legitimate in Twitter postings by Robert Bowling, director of communications for Modern Warfare 2 developer Infinity Ward. In a tweet today, Bowling also indicated that footage from the game's campaign had leaked out. In response to a message from a user asking "Do you think the leaked SP footage is too much?" he responded, "I know man. Media Blackout! I'll keep this Twitter feed and the official Infinity Ward YouTube spoiler free. Singleplayer leaks suck."

Interestingly, the footage shows a multiplayer icon over another terrorist's head, indicating the level could be played in the game's Special Ops co-op mode. One rumor circulating is that the player will be an undercover operative who is forced to participate in the massacre or blow his cover.

The official story: Reps for Modern Warfare 2's publisher, Activision, had not responded to requests for comment as of press time.

Bogus or not bogus?: Not bogus. Infinity Ward is known for taking major risks to surprise its audience, and comparisons between official Modern Warfare 2 trailers and the leaked footage leave little doubt of the latter's legitimacy.

The bigger question is will the sequence impact Modern Warfare 2 sales? Sure, players can commit similar mass killings at any time in almost every Grand Theft Auto game. However, the brutal nature of the airport massacre and the ever-sensitive subject of terrorism might prove a toxic mix, in terms of publicity, if the mainstream media decides to pounce on it.

[UPDATE] Though US Activision reps remain mum on the matter, a UK spokesperson confirmed the leaked footage as authentic to game site VG247. The spokesperson also offered the following statement from Activision:

"The scene establishes the depth of evil and the cold-bloodedness of a rogue Russian villain and his unit. By establishing that evil, it adds to the urgency of the player's mission to stop them."

"Players have the option of skipping over the scene. At the beginning of the game, there are two 'checkpoints' where the player is advised that some people may find an upcoming segment disturbing. These checkpoints can't be disabled."

"Modern Warfare 2 is a fantasy action game designed for intense, realistic gameplay that mirrors real life conflicts, much like epic, action movies. It is appropriately rated 18 for violent scenes, which means it is intended for those who are 18 and older." (The BBFC 18 rating in the UK is the equivalent of M for Mature in the US.)

[UPDATE2] Activision US has now issued the following statement. "The leaked footage was taken from a copy of game that was obtained illegally and is not representative of the overall gameplay experience in Modern Warfare 2. "

"Infinity Ward's Modern Warfare 2 features a deep and gripping storyline in which players face off against a terrorist threat dedicated to bringing the world to the brink of collapse. The game includes a plot involving a mission carried out by a Russian villain who wants to trigger a global war. In order to defeat him, the player infiltrates his inner circle. The scene is designed to evoke the atrocities of terrorism. "

"At the beginning of the game, players encounter a mandatory 'checkpoint' in which they are warned that an upcoming segment may contain disturbing elements and they can choose not to engage in the gameplay that involves this scene. Consistent with its content, the game has been given an "M" for Mature by the Entertainment Software Ratings Board. The rating is prominently displayed on the front and back of the packaging, as well as in all advertising."

Source: The Who lead singer Roger Daltry told Massachusetts paper The Republican that The Who will be getting its own Rock Band. When an interviewer brought up the recently released The Beatles: Rock Band, Daltry said, "The game, yeah, yeah, they're going to be doing a Who one next year. There is one planned."

Who's next in line for a dedicated Rock Band game, what's on second, and Idunno's on third.

What we heard: It makes some sense that The Who would be next in line for the Beatles treatment. In addition to being one of the biggest classic rock acts out there, The Who has been tied to the Rock Band franchise almost since day one. When Harmonix originally announced full album downloads, The Who's Who's Next was the first one revealed, even if technical difficulties forced it to be scrapped in favor of a sampler of the band's hits. And in a promotional push for the sequel, the legendary British rockers played a surprise set at Harmonix and MTV Games' big E3 2008 Rock Band 2 party.

On the other hand, the report contained no more details about the game, leaving some question as to whether Daltry spoke of a stand-alone title like The Beatles: Rock Band, a retail-exclusive offering like the AC/DC track pack, or simply another round of downloadable content. A dedicated Who Rock Band game would also raise questions as to which songs would be included in the setlist. Versions of many of the band's biggest hits are already available in existing Rock Band games, including "Won't Get Fooled Again," "Pinball Wizard," "Baba O' Riley," "My Generation," "Who Are You," and "Behind Blue Eyes."

There's a long history of loose-lipped musicians breaking Guitar Hero and Rock Band news in advance of official word, and a slightly shorter history of them flubbing the details in the process. When Joe Perry spilled the beans on Activision's plans for Guitar Hero: Aerosmith, he said it would be Guitar Hero IV, not a stand-alone spin-off to the series. Then there's the Guitar Hero Jimi Hendrix and Rock Band Green Day downloadable content packs, which were initially reported to be full games by Slash and Billie Joe Armstrong, respectively.

While Daltry's statement about the game left room for interpretation, his endorsement of rhythm games was more concrete.

"Anything that gets nonmusical people interested in music is wonderful," Daltry said. "In my opinion, music is our last true great freedom. They can burn our books, they can burn our paintings, but they can't stop us singing and making music."

The official story: A Harmonix representative declined to comment.

Bogus or not bogus?: Plans change, and interviews with musicians are often as open to interpretation as the songs they perform. Another wave of downloadable content for The Who is a possibility. However, given some analysts' disappointment with The Beatles: Rock Band's sales and the numerous Who songs already available in Rock Band, the idea of a stand-alone game for the band looks less appealing than it once might have.

Source: A support page on Nintendo.com spotted by several outlets, including UK-based game site CVG.

The DSi is about to get chatty.

What we heard: Last November, Nintendo launched the Wii Speak peripheral both solo and bundled with Animal Crossing: City Folk. The peripheral incorporated a microphone to allow Wii owners to chat with up to three friends via the Wii Speak Channel, which features participants' Miis lip-syncing their conversations.

Though Animal Crossing: City Folk sold nearly a million units domestically, Wii Speak was not the sensation that Nintendo had hoped it would be. However, that appears to have not stopped the company from readying a portable version of the service. This week, several outlets spotted something strange on the Nintendo.com support page for an error encountered while using prepaid points cards on the DSi Shop.

The page read, "To redeem a Nintendo DSi Download Ticket number, such as for the Nintendo DSi Speak Channel, enter the number off the Nintendo DSi Download Ticket in 'Settings and Features' off of the main Nintendo DSi Shop page, then select 'Nintendo DSi Download Ticket.'" (Emphasis added.) Nintendo has since removed any mention of the DSi Speak Channel from the page.

The DSi Speak Channel might use the DS's headset.

The official story: US Nintendo did not respond to requests for comment, but a UK rep told CVG that "It's rumor, as nothing has been announced."

[UPDATE] "There are no plans for a Nintendo DSi Speak Channel at this time. The text for the error message in question was incorrect and has been removed." -- US Nintendo rep.

Bogus or not bogus?: Looking not bogus, given the number of reports and the clarity of the language. Given that the PSP has Skype, adding a VoIP service to the Wi-Fi enabled DSi seems like a no-brainer. Hopefully it won't force gamers to use the DS's notoriously uncomfortable headset, currently used for in-game chat on select titles.

Source: The Australian Classification Board, which rates game software Down Under in advance of its full release.

What we heard: Much has been made of Splinter Cell: Conviction's MIA status, but Ubisoft's Ghost Recon franchise has been off the reservation for what's quickly becoming just as long. With 2007's acclaimed Ghost Recon Advanced Warfighter 2 being the most recent installment in the franchise, Ubisoft said in January that a new Ghost Recon would arrive by the end of March 2010. However, it didn't take long before the publisher pushed that game to its next fiscal year, which ends March 31, 2011.

Not all Ghosts are the friendly Casper types.

However, it now looks as if Ghost Recon's delay may not follow the long and winding road of its Tom Clancy cousin. Yesterday, a listing for "Tom Clancy's Ghost Recon Predator" on multiple platforms appeared in the Australian Classification Board's online database.

Ghost Recon Predator received an MA 15+ rating from the Australian board, the strictest rating allowable before classification is refused and the game is banned. Australian's software rating board has developed a reputation for being notoriously strict with its ratings guidelines, having denied classification to a number of high-profile titles upon initial submission, including Left 4 Dead 2, Fallout 3, and F.E.A.R. 2. (Only films can reach the board's maximum R18+ rating.)

Beyond the subtitle, the Australian classification offers few clues as to the nature of Ubisoft's latest Ghost Recon effort. Thus far, the publisher has been mum on what gamers can expect from the new first-person shooter, saying only that it would not be a continuation of the Advanced Warfighter arc. The rating also did not specify which platforms Ghost Recon Predator would appear on.

Ubisoft had not responded to requests for comment on the Australian classification as of press time.

The official story: Ubisoft had not responded to requests for comment as of press time.

Bogus or not bogus?: Looking not bogus, unless of course Ubisoft has a second new multiplatform Ghost Recon installment lurking somewhere in the shadows.

Source: A camera-equipped NeoGAF forum-user, operating under the handle goldsoundz.

What we heard: That Insomniac Games would be working on a new PlayStation 3 title isn't a particularly big shocker. After all, the Burbank, California-based independent developer has made its bones exclusively through Sony's PlayStation platforms from its inception, establishing such franchises as Spyro the Dragon, Ratchet & Clank, and, most recently, Resistance.

In tandem with being named the fifth best place to work in California, Insomniac revealed in March that it had another PS3 exclusive in the works. And judging by a billboard emblazoned with "Resistance 3" spotted on a Shreveport, Louisiana, film set over the weekend by a NeoGAF forum-goer, it appears that said title will be a new installment in Insomniac's alternate-history first-person shooter series.

The billboard in question will purportedly appear in Battle: Los Angeles, which, belying its name, is set to begin filming this fall in the Shreveport-Baton Rouge area. While a release date for the film has yet to be confirmed, industry sources such as IMDB.com list the movie with an early 2011 premiere. Should this date hold true, the marketing campaign indicates that Resistance 3 will see release sometime during the first part of 2011.

Notably, the billboard also gives a small clue on the plot of the title. In the past, Insomniac has used the "A" in Resistance's titles to display a landmark from some pivotal location in the game. The original Resistance: Fall of Man featured London's Big Ben, while Resistance 2 showed San Francisco's Bay Bridge and Resistance: Retribution for the PSP displayed Paris' Eiffel Tower. As for Resistance 3, the A in the billboard clearly depicts the Statue of Liberty, indicating New York City will be a prominent locale.

The official story: "To date, we have made no official announcements regarding the Resistance franchise."--A Sony representative.

Bogus or not bogus?: Looking not bogus. Insomniac's Resistance franchise has been a commercial and critical success for Sony, so it seems to be a foregone conclusion that the studio would return for a third console installment. However, considering that Resistance 2 shipped at the end of 2008, a 2011 release window seems a bit longer than a normal development cycle would call for.

Source: Joystiq reports that Microsoft is looking into creating a virtual arcade for players' Avatar characters, citing a consumer survey sent in by a tipster.

What we heard: There isn't much to go on in the Joystiq report, aside from a couple of pictures of the supposed Avatar arcade and a question asking users to pick a name that would most encourage them "to purchase the product."

Fortunately, the pictures themselves offer some clues as to what's going on. They show a handful of Avatars standing at Atari-branded arcade cabinets, similar to the virtual game parlors in PlayStation Home. However, instead of containing joysticks and buttons, the control panels on each of the cabinets have been replaced by Atari 2600 machines. All but one of the marquees on the cabinets are unreadable, with the lone legible title being Baseball.

It isn't just Atari on display in the Avatar arcade, however. Partially obscured banners hanging from the wall suggest that Intellivision games like Shark! Shark! and Star Strike will also be available for play in the Avatar arcade. (A version of Star Strike was also released for the Atari 2600.)

Along the bottom of the screenshots are a series of nearly unreadable button prompts, apparently indicating that players will be able to customize their own arcades, change themes, and edit which machines are in the room.

The significance of an Avatar arcade is debatable. Even if everything in the Joystiq article is accurate, this could be something as mundane as a shell from which players can buy other games (like Hasbro Family Game Night), or as big as a virtual space for Avatars to congregate, Microsoft's answer to PlayStation Home.

The official story: An inquiry to Atari wasn't returned as of press time, but a Microsoft rep said the company "can't comment on rumor or speculation."

Bogus or not bogus?: Looks a little complex to be completely bogus. The fact that Sony is already doing something in Home provides motivation for the move, as does the chance to remonetize old Atari 2600 games. (With its listing revenues, the publisher could use the cash.) And with Microsoft already selling Avatar toys, a virtual arcade would be a logical next step down microstransaction lane.

Source: See below.

What we heard: Sony's decision to remove the UMD disc media reader from the PSP Go has provoked its fair share of controversy. On the one hand, by eliminating the UMD drive, Sony was able to substantially reduce the size of its device, as well as improve battery life, among other enhancements. However, without the drive, PSP Go purchasers will be unable to use their previously purchased PSP games, and they won't be able to rent new games, either.

While Sony has stated that it does not plan on offering a way for gamers to digitize their PSP libraries, the publisher may be cooking up a solution for those looking to rent PSP games. First spotted by gaming blog The Retail Gamer and confirmed by GameSpot, Sony has added "Starts," "Expires," and "Hours Left" options to the information pane within games (pictured, top).

Notably, Sony floated just such an idea earlier this year. In May, a confidential Web survey surfaced online indicating that Sony was considering a subscription service that would let gamers rent PSP games. "The service will enable you to download a fixed number of games during your subscription period...[which] might renew weekly, monthly, or for some other time period," read the document.

Further, the menu fields are identical to those found in PlayStation Store video content (pictured, bottom), which can be purchased or rented through the PlayStation Network. With video content rentals, the start date is generated at the time of purchase and gamers have two weeks to watch the content before it expires. However, once a piece of content is activated, gamers only have a 24-hour window before the content expires.

The official story: Sony had not responded to requests for comment as of press time.

Bogus or not bogus?: Looking not bogus.