Formed by ex-Blizzard developers, Red 5 Studios has managed to raise $18.5 million in funding from Benchmark Capital and Sierra Ventures. Scoop:

“Red 5 is a creative mecca for the world’s best game development talent to realize their own vision,” said Mark Kern, president and CEO of Red 5 Studios. “With the financial backing and operational advice of Benchmark and Sierra, our uniquely talented team will have the resources to create the most exciting massively multiplayer titles for a worldwide audience.”

Benchmark Capital has invested in dozens of successful consumer-technology companies, including Second LifeTM, mobile entertainment leader JAMDAT, and eBay. Sierra focuses on investments across all areas of the information technology sector, and works with entrepreneurs and management teams to originate and build new companies into large, profitable businesses.

“Historically, the winners in the gaming space have been publishers rather than independent studios. However, World of Warcraft® is no ordinary game title and Red 5 is no ordinary team,” said Bill Gurley, general partner, Benchmark Capital. “With the track record, talent and vision behind Red 5, it is positioned to become a unique creative powerhouse in the online games space.”

“Sierra invests in world-changing ideas, and we believe that MMOs are poised to become a dominant form of entertainment on a global scale. Red 5 Studios’ mission is aligned perfectly with our goals of building the premiere independent development studio in the online gaming market,” said Jeff Loomans, partner, Sierra Ventures. “Future MMOs need to combine great gameplay and social networking - giving players the ability to reach beyond borders both virtually and globally, and Red 5 Studios is designing the company and its games around this premise from the beginning.”

Red 5 Studios is already working on a MMO title which is being financed and distributed by Webzen.

The long-in-development Age of Conan MMORPG is now also headed for Xbox 360, as Funcom has received the “green light” from Microsoft, allowing them to start official development for the platform.

Age of Conan: Hyborian Adventures won great praise at E3, garnering many ‘Best of E3′ awards, and is dubbed one of the most anticipated PC titles by many US publications. As per this announcement, the game will also be released on Xbox 360, though information about publisher, release date and potential console specific features are still under wraps.

SCEA has officially announced MLB 07: The Show for the PS3, PS2 and PSP. The next entry in the series will be available in Spring 2007 and is the only first party game licensed by MLBP, MLBAM and the MLBPA.

Adding to its already robust online feature set, the MLB franchise will now include Online League Play, which gives gamers the ability to set up leagues with up to 30 teams, complete statistical tracking, point benefits and full customization, while the My Sliders feature allows users to create their perfect game settings and upload them to the MLB 07 The Show server for others to try out.

For fans attempting to master the timeless art of pitching, MLB 07 The Show introduces some innovative new features such as Adaptive Pitching Intelligence (API), which allows users to either shake off the catcher, or trust the calls he makes which are based on batter tendencies and the pitcher’s strengths. Additionally, the Pitch Command System (PCS) delivers authenticity and strategy to pitch selection by offering players a predetermined pitch comfort level based on a best to worst pitch scenario. Providing an even more authentic feel to the game, the new Umpire Personalities feature provides a new challenge to pitchers as each umpire has their own version of the strike zone, unique tendencies and animations.

As developers begin to harness the power and potential found within PS3, MLB 07 The Show showcases its abilities with additional innovative features such as crowd interaction, which can be seen like never before with a vast array of new ambient elements including fans reaching for foul balls, the seventh inning stretch, the wave, standing ovations and much more. Also making the game more realistic, gamers will now be able to detail the different pitch grips and arm angles that a pitcher has when throwing each pitch. Scouting these details in Replay Mode shows players what to look for in release point and pitch arm angle from 15 different pitches. These new subtleties deliver an unrivaled virtual experience on PS3.

Returning key features for the MLB franchise include the popular Career and Season Modes, Career Spotlight and Exhibition Mode. In addition, MLB 07 The Show provides fans with the features they expect in an unrivaled simulation, such as advanced batting and base running controls, interactive hot and cold zones, player-scaled strike zones, release point pitching and the most comprehensive commentary ever produced for a sports videogame, featuring the three-man booth of Rex Huddler, Matt Vasgerian and Dave Campbell.

Along with all the key franchise features, returning gameplay favorites for PlayStation 2 include Rivalry Mode, which allows fans to set-up, track and maintain heated rivalries, King of the Diamond Mode, the classic playground duel where a pitcher and batter from opposing teams will square off head-to-head, Franchise mode, where players take control of the entire team, the Home Run Derby and EyeToy™ functionality. MLB 07 The Show for the PSP system continues to be a fan favorite with its core features and ability to play anytime, anywhere, on the go. Plus, sports fanatics can utilize the PSP system’s online news service to get the latest MLB news feeds online or save them to the Memory Stick Duo™ and review them offline at their convenience.

Atari announced that Dragon Ball Z: Budokai Tenkaichi 2 for Wii is scheduled for release in Europe during March 2007. It will feature over 100 playable characters, 15 arenas and nine different game modes, including single and multiplayer modes. Additionally, the European version of the game boasts six extra new characters and a new battle arena that is not present in the US version.

The PS2 version of the game is already available in stores throughout the region.

Coming as no surprise is word that the PS3 has already overtaken the Xbox 360 in Japan. This comes from Spong, who reports that the PS3 has sold 10,000 more units during November and December than Xbox 360 succeeded to do in a year - 180,000. The Wii is obviously the early champion, having sold more than a million units worldwide.