The Japanese will no longer be able to purchase 20GB and 60GB models of the PS3, as Sony has decided to cease production of those models to focus on the cheaper 40GB model, which sells for 39,980 yen (approximately US$360) in the country. This model does not feature backwards compatibility support; this void has been filled by Sony which now offers many PS1 games in the PlayStation Store.

It can also be noted that Sony “will launch new models to respond to end-user preferences,” though no exact timeframe was given.

Nintendo is back in the business and kicking ass, as reports have come in that the sales of the WIi till now has surpassed the lifetime sales of the Gamecube. Apparently, the Wii’s predecessor sold 4,179,963 during the five years it was in the market. The Wii has officially sold 4,231,044 units in Japan, outselling its older brother.

French publisher Ubisoft announced that it has acquired Japanese developer Digital Kids. Established with offices in Nagoya and Osaka, DK currently has a team of 20 developers specialized in games for the DS. The studio has worked for a number of Japanese publishers and has developed Ubi’s Petz line of games.

Although Microsoft is doing quite well in North America and Europe, sales of the Xbox 360 in Japan have been nothing but abysmal. To show how desperate they are, the company announced a price cut of the console in the country by about 13 percent. The Xbox 360 will be sold for 34,800 yen (US $304) starting November 1, down from 39,975 yen (US $348). That’s the price for the premium model, with the Core model going for 27,800 yen ($240).

This comes after Sony cut prices on the PS3 by $100, marketing two $399 and $499 models in all regions. The Wii currently sells for around 25,000 yen ($219) in Japan.

From Japan comes word that Nintendo has announced Kirby Super Star for the DS. Set for release sometime next year in the country, the 8-in-1 Super NES funpack will be ported to the handheld, with a couple of additions, though those weren’t detailed.

The game, as expected, lets players take on the role of Kirby, who is partnered with a foe-turned-friend sidekick for the majority of the game. It will allow a second player to join in as a buddy, with each player having a different move-set.

In an interview with Gamasutra, Japanese rhythm game developer iNiS co-founder Keiichi Yano revealed that the studio is working on a Xbox 360 title, though he would not offer any details.

“Yeah. We are currently working on a title,” he said. “I can’t really get into it more than, ‘Yes, we’re working on something!’”

The studio is popular for many rhythm games including Gitaroo Man and Elite Beat Agents. It is expected that the Xbox 360 title will also be a rhythm game.

You can thank Gamers-Creed for letting the world know that there IS a GameSpot Korea, which they cite as a source for the following juicy phrase: Ninja Gaiden 2 at TGS.

Apparently, the game was confirmed by an insider in the Japanese games industry, who claims that the game will be shown on the Xbox 360 at the show though there might be a PS3 version in development. According to their source, this is being done because of the good relationship with Microsoft and the franchise’s developers. He also notes that this move is necessary to Microsoft to increase sales of their console which is ailing far behind the PS3 and Wii in the region.

Japanese gaming publication Shonen Jump has revealed that remakes of Dragon Quest IV, V and VI are headed to the DS. According to the article, the games will feature 3D graphics and an isometric perspective. The DS version of Dragon Quest IV is expected to hit Japan this Winter; no release dates for North America and Europe were revealed.

Already released in Japan, Sony has announced details of the v1.90 firmware that will be available in other regions tomorrow. The major feature in this update is the ability to set custom backgrounds (wallpapers) in the XMB menu interface and the ability to add bookmarks in the built-in browser. Here’s the full list of changes and additions:

• Ability to rearrange games on the XMB
  
• Option menu now includes “eject disk”
  
• Press triangle to eject games/CDs/movies in the XMB
  
• XMB backgrounds
  
• Change the folder classification
  
• Emoticons
  
• Change CD output to 44.1/88.2/176.4kHz
  
• Force 24Hz output for Blu-ray over HDMI
  
• Change PS3 video settings in-game
  
• “Bit Mapping” in the “Music Setting”
  
• Save AVCHD type animations from a Memory Stick
  
• Change settings like upscaling while playing PS and PS2 games
  
• Add bookmarks
  
• Web browser security function in the browser’s tool section
  
• Avatar moves during audio visual chat

Reuters reports that PS3 sales has surpassed one million units in Japan since its launch, though it lags far behind the Wii at this point. According to the article, Sony has sold 1.01 million units as of July 15, while the Wii has sold 2.9 million till July 8; the Xbox 360 is desperately behind at 420,000 units although it debuted at least a year before both consoles.

Also announced at the PlayStation Premier event was Dynasty Warriors 6 by Koei. In development for the PS3, the game will get a graphical overhaul for the system, new weapons and the ability to perform practically unlimited combos. It is also said that the game will offer players more freedom.

The game will reportedly hit stores in Japan this Fall, with a playable version debuting at the Tokyo Game Show this September.

IGN carries word that the PS3 sequel to Loco Roco was shown at the PlayStation Premier event and that it is coming soon to the PlayStation Network.

Dubbed Buu Buu Cocoreccho! By LocoRoco, the game is said to be more than a “peculiar extra chapter,” according to Sony. “Even if you don’t play it [as in control the game], the world and the LocoRoco will play [as in both playing amongst themselves and as in playing back like a video] on their own.”

According to the report, the PS3 version of the game will feature 200 LocoRoco characters and gamers will be able to use the SixAxis for motion-based controls. The game is also to be expected soon, as it is being listed by Sony as being 95% complete.

Word came out from the Tokyo PlayStation Premier event that the preview version of Gran Turismo 5 will be available for dlownload from the Japanese PlayStation Store this October. Dubbed Gran Turismo 5 Prologue, the game will feature online play and a number of different vehicles, including some unrevealed concept cars.

No details regarding pricing have been divulged yet. It is also not known whether it will be released in other regions as well.

At a Japanese press event, Sony announced that the redesigned PSP will launch in the region on September 20 at the price of 19,800 yen (around $160 US). It also announced additional new colors for the console - these light-colored models are being called “Bloom Series” and will come in rose pink, lavender purple and Felicia blue shades.

The company also announced a TV tuner (pictured) which users can attach to the new PSP via the USB port. The portable 17gm add-on will allow users to watch TV on their PSP thanks to the 1seg technology, which is only available in Japan. It will be released around the same time as the new PSP and will retail for 6,980 yen (around $60 US).

Japan will be graced by more PSP, too: a limited-edition Crisis Core: Final Fantasy VII bundle. It will include special silver PSP, the game, and a keychain shaped like the sword of the game’s hero. The bundle will be released on the same day as the game - September 13 - and will be limited to 77,777 units selling for 25,890 yen (around $210 US) a piece.

Japanese developer and publisher Nippon Ichi Software has announced Disgaea 3 for the PS3. Scheduled to hit Japan this Winter, the game is sure to follow in the steps of its predecessors, though no information was made available except for these two screenshots.