Sony has finished the list of tracks that will take place in the North American soundtrack for Gran Turismo 5 Prologue, the fifth installment of the billion-dollar selling racing franchise developed exclusively for PS3 by Polyphony Digital Inc. The official Gran Turismo 5 Prologue soundtrack will include an edgy soundtrack that mixes an aesthetic audio blending of indie dance rock, electronica, classic rock and brand new remixes by some of today's hottest recording artists such as Weezer, Mars Volta and DJ Shadow, among others. Gran Turismo 5 Prologue will be available in April for $39.99 SRP on Blu-ray Disc and as a download via PLAYSTATION Store.

Sony released the latest firmware 2.20 for their PLAYSTATION 3 (PS3) console this morning. In case you haven't read what's new in this update, please check our previous story here. Some of the new features include, support for Blu-ray Disc Profile 2.0 (BD-live), the ability to copy PS3 Music and Photo playlists to a PSP system, as well as playing DivX and WMV format files that are over 2 GB. All owners, may now proceed to their PS3 System Update menu.

Sony previewed yesterday on its official PS3 blog the next PLAYSTATION 3 system software update which is due to be out in the next few days. Firmware v2.20, will introduce a number of features to further enhance your PLAYSTATION 3, but most notably the update will enable the PS3 to support Blu-ray Disc Profile 2.0, also known as BD-Live. BD-Live allows you to obtain additional content and special features through Internet on BD discs that support this feature. On April 8th Sony Pictures Home Entertainment will release The 6th Day and Walk Hard on Blu-ray; these titles will be among the first to take advantage of BD-Live.

Sony has updated the PS3's firmware taking it to version 2.17. Unfortunately there are very few improvements with this update - under the main features in this version Sony lists only "The operating stability of some PLAYSTATION 3 format software has been improved." The simplest way to update the firmware is via the PS3's system menu.

Sony Computer Entertainment's UK boss, Ray Maguire, has confirmed rumours that Sony plans to include in-game messaging in one of its upcoming PS3 firmware updates. Sony initially sparked rumours when it uploaded a "Friends & Messaging" icon onto its website, which commented about using a USB headset or Eye Camera to engage in voice and video messaging. Maguire told MCV:

Our momentum will continue with the introduction of in-game communication in the summer [and] firmware update 2.4.

Maguire also revealed that Sony has managed to sell over one million of the consoles in the UK.

In addition to the Metal Gear Solid 4 PS3 released in the US and Canada, Sony has two new PS3 bundles being readied for the European market. These include a special Gran Turismo 5 Prologue version which will launch alongside the game in the Spring. The pack includes the game, 40GB console and one Sixaxis controller. The second bundle is a Movie Pack, with a 40GB console, single controller and three Blu-ray movies replacing the usual game: Spiderman 3, 300 and Casino Royale. Both bundles are expected to come in at the current price points.

To coincide with the much-anticipated North American launch of Metal Gear Solid 4: Guns of the Patriots in late Q2 2008, SCEA will introduce a special PS3 bundle. The Metal Gear Solid 4 PS3 will include an 80GB PS3, the upcoming blockbuster Metal Gear Solid 4: Guns of the Patriots, and a DUALSHOCK 3 wireless controller for $499.99 (MSRP). Followed by the introduction of this limited version Sony revealed another much-requested release date: SCEA will introduce the DUALSHOCK 3 wireless controller for the first time in North America in April 2008 for $54.99 (MSRP). Compatible with more than 100 PS3 games, DUALSHOCK 3 has both rumble and motion-sending SIXAXIS technologies. Of course Metal Gear Solid 4: Guns of the Patriots will be 100% compatible with the DUALSHOCK 3.

Well, really, the title says it all. Sony is no longer offering any version of the PlayStation3 console that can actually play games that were released for the previous two Playstation consoles. At this time, the only PlayStation3 model available in stores is the 40GB model, which is not backwards compatible with anything. However, the future is not bleak in Playstation-land. Sony has long been planning a successor, which more than likely will have a larger hard drive and one or two other surprises/goodies. Unfortunately, backwards compatibility will not be among those goodies. If you're into playing PlayStation classics on next-generation hardware, you'd best get yourself an 80GB PS3 before stock completely runs out.

IBM Cell BE PS3 Processor Shrunk to 45nm

At an ISSCC session yesterday afternoon, IBM announced details of a smaller, lower-power version of the Cell BE processor that powers Sony's PlayStation 3 entertainment system. The Cell BE is currently fabricated on IBM's 65nm SOI process, but IBM will soon move the console chip onto the company's next-generation 45nm high-k process. The 45nm Cell will use about 40 percent less power than its 65nm predecessor, and its die area will be reduced by 34 percent. The greatly reduced power budget will cut down on the amount of active cooling required by the console, which in turn will make it cheaper to produce and more reliable. Also affecting Sony's per-unit cost is the reduction in overall die size. A smaller die means a smaller, cheaper package; it also means that yields will be better and that each chip will cost less overall. All this will help Sony to slash the production cost of every PLAYSTATION3 console. Will this affect end users, only time will show. New price cuts or new PS3 models, haven't been officially announced yet.

Sony to Split PlayStation 3 Into Several SKUs

While Sony has all but confirmed that they are killing off the 80GB PlayStation3, there has been little news as far as what will be replacing it. Fortunately for the consumer, rumor has it that Sony has a plethora of options as far as what to replace the 80GB PlayStation3 with. Unfortunately for the consumer, nothing is final yet, as far as what Sony will be replacing the 80GB PS3 with. Sony does, however, acknowledge that 2 PS3 models is not enough. Hence, we are likely to see two or three new PlayStation3 models when the 80GB model is officially dumped. However, knowing Sony, the only thing separating SKUs might be something as simple as colors.

Japan looks set to get its third PS3 color with news that Sony plans to launch a silver version of the 40GB console. Dubbed 'Satin Silver', the console will go on sale on 6th March for ¥39,800 (about $360). The new PS3 will ship with a matching silver controller using the SIXAXIS technology, but will not feature rumble. Japan already has the standard black console along with a Ceramic White version, although there is no news of whether this silver model will be coming to North America or Europe.

Less than a year after the project originally came to the console, the total number of PS3 owners contributing to Folding@home has surpassed one million users - and they're still registering at a rate of 3,000 a day. Vijay Pande, who is in charge of the project, said:

Since partnering with SCEI, we have seen our research capabilities increase by leaps and bounds through the continued participation of Folding@home users. Now we have over one million PS3 users registered for Folding@home, allowing us to address questions previously considered impossible to tackle computationally, with the goal of finding cures to some of the world's most life-threatening diseases. We are grateful for the extraordinary worldwide participation by PS3 and PC users around the globe.

The PS3 now accounts for around 74% of the total teraflop computing power of the project. For those who don't know, the Folding@home program runs simulations in protein folding and misfolding, helping scientists understand (and hopefully cure) diseases such as Alzheimer's, Huntington's, Parkinson's and certain forms of cancer. If you are looking to get involved in the project, you may be interested to hear that techPowerUp! has its own folding team - all you need is an internet connection and a computer.

Industry giant Electronic Arts is predicting much greater success for Sony's PS3 console over the next year, following disappointing sales in 2007. Last year the PS3 lagged well behind the Wii and Xbox 360 in terms of sales, with the Wii coming out significantly ahead of both. However, EA is predicting that the coming year will see Nintendo sell between 12m and 14m Wii consoles, Sony between 9.5m and 11.5m PS3s and Microsoft just 6m to 8m Xbox 360s. The PS2 is still expected to sell in its millions, with estimated figures of 3.9m to 4.9m units. Meanwhile EA reckons the DS will continue to dominate the handheld market by selling 14m to 16m units, with the PSP struggling to compete on 6m to 8m. That said, Xbox 360 sales figures can be expected to drop gradually, as the market is likely to become saturated sooner given its much earlier release date.

Lately, most people don't know what to think about the PlayStation3. There's rumors going around that it's getting smaller, and there are rumors that a model with an enormous hard drive is going to arrive. A conference call leaked from GameStop via IGN confirms the latter rumor. It would seem as though Sony is no longer making 80GB PS3s, and is instead focusing on making a PlayStation3 with a larger hard drive. A 120GB PS3 is coming to replace it, and will ship with a Dual Shock 3 controller standard. Considering that two independent retailers and a reliable "tipster" all confirm the same thing, we may be looking at a 120GB PS3 soon after all.

After cutting prices, Sony managed to sell 4.9 million PlayStation 3 video game consoles during the last quarter. Combining this with the lower manufacturing costs, and more and better games, Sony's gaming division has finally made a profit. After many quarter of repeated losses, Sony has managed to turn things around and total profit rose by 25% for the last quarter. Sony also lowered its sales goal for the PlayStation 3 from 11 million for the whole year, to 9.5 million because of the poor start, a fiscal year which ends in March.

SCEA announced today the April 17 North American release date for Gran Turismo 5 Prologue, available exclusively for PS3. Developed by famed Polyphony Digital, Gran Turismo 5 Prologue will be available for $39.99 on Blu-ray Disc (BD) and as a download via the PLAYSTATION Store. The BD version will offer added value with an exclusive behind-the-scenes High Definition (HD) video feature called "Beyond the Apex". You can also visit the US PlayStation.Blog here and check out the new Gran Turismo 5 footage.

SCEA already announced plans to discontinue the 20GB and 60GB PS3 SKUs from the Japan market. Two days ago we also reported that a ceramic PS3 is coming to the US. Now a rumour has it that Sony is also discontinuing the 80GB version of PS3. It all starts with an anonymous Best Buy employee scan of an internal letter, which notifies employees that the 80GB system is being discontinued. "The 80GB version of the PS3 is going closeout and won't be replaced at this time," it reads. "It will come off the planogram on Jan. 28. The 60GB version should already be gone from stores. Only the 40GB version of PS3 will be sold in Best Buy stores at this time." The 40GB model currently costs $399, and is the cheapest PS3 available. However, it does have a few limitations: it lacks memory card readers, features only two USB ports, and most importantly, loses backwards compatability, as noted in the memo. "This means that there currently isn't a version that is PS2 compatible,".

It now looks almost certain that Sony is planning to release the Ceramic White PS3 in the US sometime soon following a recent filing with the FCC. The model number differs to that of the console being sold in the Asian market, so it looks like it will be a slightly different version, and the controller number suggests a standard SIXAXIS controller rather than the DualShock 3 being sold with the Ceramic model in Asia. No official pricing or launch dates have been revealed, although an announcement is expected on 28th January which could potentially lead to the console going on sale as early as next month.

The games industry managed record sales of $17.9bn in 2007, up 43% from $12.5bn in 2006. The Wii, Xbox 360 and PS3 all saw their most successful sales figures in December, shifting a total of 1.4m, 1.3m and 800,000 units respectively, meaning that the Xbox 360 has now sold 8.5m units since its launch, the Wii 6.3m and the PS3 2.8m. However, the best selling console over Christmas was actually the Nintendo DS, which achieved sales figures of 2.5m in December. Meanwhile, the most successful game last year was Halo 3, which sold 4.82m copies, with Wii Play in second place on 4.12m and Call of Duty 4 in third on 3.04m.

Sony Computer Entertainment Europe has announced a new PlayStation 3 bundle for UK consumers retailing at GBP £349.99. As well as the 40 GB console, the deal allows consumers to pick two first-party titles from a list which includes the following games: Resistance: Fall of Man, Genji: Days of the Blade, Formula One, Ridge Racer 7, Heavenly Sword, Lair, Folklore, Ratchet & Clank: Tools of Destruction, Warhawk (including headset), SingStar (including microphones) and Uncharted: Drake's Fortune. The offer begins this Friday, January 18.

A Pennsylvanian company called Copper Innovations Group has filed a lawsuit against Sony and Nintendo for the wireless technology used in their PS3 and Wii consoles respectively. The firm is arguing that the controllers infringe on a "Hand Held Computer Input Apparatus and Method" patent filed in 1996, which covers a method for connecting devices to a system and sorting their inputs by means of hardware identification numbers tied to each transmission. The devices in question are the Wii Remote, the Wii Nunchuk, the Sixaxis controller and the Blu-ray Remote. Copper Innovations is seeking damages plus interest, legal fees and an injunction prohibiting Sony and Nintendo from infringing on the patent.

BusinessWeek is reporting that Sony has managed to halve the production costs of the PS3 since November 2006, suggesting that the company could now be making a profit on each 80GB console it sells. In an article analysing Blu-ray, the website comments that the cost per machine is now around $400, compared to $800 when the console was launched. This would mean that Sony could be making a profit on the 80GB model, which retails for $499, and would be making much smaller losses on the $399 price tag of the 40GB model. Despite the lower production costs, which are being largely attributed to a reduction in the parts count, Sony's games division is still expected to see overall losses of $1.4 billion this fiscal year, although that's down from $2.1 billion last year.

Sony is making all potentioal PS3 buyers choice easier by discontinuing the 20GB and 60GB PlayStation 3 SKUs from the Japan market, leaving only the new 40GB slimmed down version. Sony's game unit said it would end shipments of PlayStation 3s with 20- and 60-gigabyte hard disk drives by the end of this month. Sony is pinning its hopes on the cheaper PS3 with a 40GB HDD that was introduced in Japan in November last year. Unlike the two original versions, which were launched in November 2006, the newest PS3 model lacks PlayStation 2 support, has two high-speed USB ports instead of four and has no super audio CD system. The company will "vigorously promote the expansion of the PS3 platform by further concentrating on the 40GB hard disk drive model," Sony Computer Entertainment said in a statement. The move comes as rival Nintendo continues to enjoy strong demand for the Wii, known for its motion-sensitive controller, outselling the PS3 three-fold in its domestic market last year.

It's been no secret that Sony has been losing money on each PS3 it sells, but the firm has now revealed that it is hoping to be making a profit from PS3 sales within the next fiscal year. Sony Computer Entertainment's chief executive, Kaz Hirai, said:

We want to get to the positive side of the equation as quickly as possible. The next fiscal year starts in April and if we can try to achieve that in the next fiscal year that would be a great thing. We are going through the budgets right now. That (profitability) is not a definite commitment, but that is what I would like to try to shoot for.

Hirai is hoping that lower production costs due to fewer components in the 40GB model will be the main factor in helping the console achieve profitability. The PS3 managed to sell 1.2 million units in North America over the Christmas period, which accounted for about 40% of total yearly sales.

Publisher Ubisoft has announced Far Cry 2 for PlayStation 3 and Xbox 360. Set in Africa, the exploration-heavy first person shooter is slated to arrive within the 2008-2009 fiscal year, which begins in April. A PC version of the game was first revealed last summer. All editions of the game are being developed by Ubisoft Montreal, which previously handled the Xbox, Xbox 360, and Wii spin-offs of the first Far Cry (PC). Original Far Cry creator and developer Crytek is not involved with the project, as Ubisoft acquired the Far Cry and Crytek Engine rights in 2006.