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Sony Computer Entertainment boss Ken Kutaragi has confirmed that the PlayStation 3 will feature backwards compatibility with the PS2 and PSone, ensuring continued support for older software formats in the new hardware.

A late 2005 launch date for the PlayStation 3 looks increasingly likely today, with confirmation from Elpida that it will be beginning production of memory chips for the console early that year.

Namco has revealed the reasons behind its decision to make Soul Calibur III a PS2 exclusive, according to a report on IGN.

Following recent announcements that gaming legends Yoshiki Okamoto, Tetsuya Mizuguchi and Hironobu Sakaguchi are developing games for Microsoft's next-gen console, they've gone and revealed a few more details of what we can look forward to.

Majescos has announced a deal to publish The Darkness, the latest game from Chronicles of Riddick creators Starbreeze. It's based around the comic book series and forthcoming film of the same name and is slated for release in 2006.

Speaking in a videoed segment during J Allard's keynote, legendary filmmaker James Cameron has revealed that his next film - thought to be anime adaptation Battle Angel - is being developed in tandem with a videogame project.

Activision has revealed that it plans to release a new Call of Duty title "for consoles" this autumn, but will be doing so without the help of Spark Unlimited, the developer behind Call of Duty's only console release to date, Finest Hour.

SEGA and Monolith are planning to launch a psychological thriller in which the player tracks down serial killers on next-generation console platforms and PC this winter.

SEGA is constructing a new UK development studio to focus on next-generation racing titles based on some of the publisher's most successful IP, including Crazy Taxi and SEGA Rally, according to a report in UK trade mag MCV.

Midway has struck an agreement with Epic Games to use Unreal Engine 3 for its next-generation console and PC development - something the company says is not only "instrumental" in the progress of its major franchises and the creation of new IP, but "also underscores Midway's commitment to the premium PC games market".

Elixir Studios is working on a sequel to its Bond villain-'em-up style strategy game Evil Genius, in addition to an as-yet unannounced project being developed under contract for a "market-leading" US publisher, the British developer has revealed.

With Xbox exclusive Blinx 2: Masters of Time & Space well and truly complete - and released across Europe today - Japanese developer Artoon is turning its attention to new projects, and one of those, it would seem, will be a next-generation role-playing game.

Swedish developer Starbreeze Studios has signed a letter of intent with an American publisher to develop a new action game for next-generation console formats within the next two years.

The next-generation home console from Nintendo is codenamed "Revolution," company president Satoru Iwata has revealed at a conference in Tokyo where he once again championed the firm's focus on innovation rather than technology.

Japanese publisher Square Enix could be on board as a developer for Microsoft's next console, according to company president Yoichi Wada, who says the next-generation Xbox "would fully deserve consideration."

THQ has announced financial results for the fiscal year ended March 31st 2004, and while GamesIndustry.biz digests the corporate ramifications we've been busy scouring the subsequent investor conference call webcast for notes on upcoming games. Which is a bit like fishing for diamonds in a vat of tar, but hey.

EA Canada general manager John Schappert has warned developers not to rush into creating titles for next generation consoles, admitting that EA missed "hundreds of millions of dollars" of revenue by abandoning PSone too soon.

Kung Fu Chaos developer Just Add Monsters has been rescued from administration by its former directors and reborn as Ninja Theory Ltd., the company announced this week. The small Cambridge-based team will now continue to work on next-generation fighting game Heavenly Sword.

2006 will see the release of Xbox 2, Microsoft CEO Steve Ballmer confirmed yesterday in an interview with Japanese journalists.

The Nihon Keizai Shimbun has withdrawn statements attributed to Microsoft chief executive Steve Ballmer in which he said that the next-generation Xbox would arrive in 2006, stating that they were not made by Ballmer after all.

ATI will provide custom, leading-edge graphics technology for use in "future Xbox products and services," the Canadian hardware company has announced this afternoon.

Developers Rainbow Studios and Volition, Inc. are working on early next-generation projects for PS3 and Xbox 2, while owner THQ is expecting to start work on PSP-related product within the next month and a half, president Brian Farrell has revealed in a financial conference call. GameCube 2 was not mentioned.

Microsoft has signed up IBM to manufacture chips for the "future" generations of its Xbox console.

Climax has a working prototype of a PlayStation 3 and Xbox 2 online game up and running at its Brighton studio, the MotoGP developer announced this week. We're not sure if it's a racer or not, but the game, codenamed Avalon, is said to include vehicles on land, sea and in the air, and makes use of the company's recently announced cross-platform Blimey 2 engine.

A job advertisement which has appeared on Microsoft's careers website suggests that the company may be considering moving to a proprietary disc format for its next console, in an effort to make piracy on the device more difficult.

Xbox Japan chief Yoshihiro Maruyama has ruled out a 2005 launch for the successor to Xbox, speaking in an interview with Japanese magazine Famitsu.

A senior source at Microsoft has revealed that its next-generation console is set to use multiple PowerPC processors in parallel - while the hard drive may not be shipped as standard, being supplied as an optional extra instead.

Flash memory maker M-Systems has been signed up by Microsoft to provide a high capacity memory unit for the next-generation Xbox console, adding weight to reports that the system will not include a hard drive.

Dov Moran, CEO of M-Systems, the company which has been contracted by Microsoft to provide flash memory storage for Xbox 2, has told an Israeli newspaper that the next-generation console will not have a hard disc drive.

As widely expected, Microsoft's chief Xbox officer Robbie Bach will take to the stage at the Game Developers Conference to discuss the next Xbox console - but the presentation may not include details of the system's hardware.