Microsoft's Larry "Major Nelson" Hryb has settled it. "It" being the question of whether Xbox 360 Dashboard themes downloaded (and even purchased) before the upcoming New Xbox Experience rolls out later this year will be rendered useless with the switch to a different UI. The answer's a welcome one: they'll work just fine with the new Apple TV-esque interface.

To (literally) illustrate the point, Major Nelson uploaded images of the NXE with an existing theme applied to his flickr gallery. It isn't explicitly stated in the accompanying captions, but we'd venture a guess that the background image will change as you page through the new category "frames." With this mystery solved, you can now go back to complaining about all of the things you actually wasted money on.

[Via X3F]

When it comes to porting Final Fantasy XIII to Xbox 360, Square's of the opinion that it's not the size of the disc that matters; it's how you use it. FFXIII producer Yoshinori Kitase says that his team will "work on trying to find ways to compress the pre-rendered movies and voice that take up a lot of data in ways that don't affect the final product."

Kitase is also looking to the arcane arts of graphics programming "to ensure that the quality [of in-game visuals] remains the same between the two versions," as well. We suggest he trademark the name "Squeaze" for whatever method the team eventually settles on for cramming a Blu-ray based game onto (a number of) DVDs. Such a catchy name will certainly make the tech more marketable to other developers bringing their PS3 exclusives to 360.

[Via X3F]

We somehow managed to get Gran Turismo creator Kazunori Yamauchi to slam on his brakes for a moment today and talk to us about his flagship racing franchise. According to the Polyphony Digital boss, his studio is focusing a majority of its efforts on Gran Turismo 5 Prologue. In fact, he confirmed that the proper, disc-based Gran Turismo 5 might not even roll out before 2010.

In the meantime, Polyphony will continue to expand Prologue with additional cars, tracks, and features. Yamauchi couldn't speak to specific plans, but mentioned that an new update is planned for the near future.

With all of the work his company is putting into the next console GT installment, Yamauchi tells us that it hasn't forgotten the long-delayed Gran Turismo 4 Mobile for PSP. He confirms that the game – originally announced at E3 2004 – is still actively in development, although it isn't planned for release until after GT5. That would be 2011 for those with pen and calendar in hand.

Even the L.A. Times is caught up in Bungiegate – and it's getting (some) answers. The paper spoke with Xbox senior VP Don Mattrick, who told its writers that Microsoft decided to omit the announcement of the next Halo universe game from its pre-E3 press conference ... to save time.

As the story goes, Microsoft's presser was originally planned to run two-and-a-half hours, but Mattrick wanted to get it down to under 90 minutes. For some reason, a Halo game was cut to make way for such content (what Mattrick is quoted as calling "an embarrasment of riches") as the needlessly long (and silly) live demo of You're In The Movies. We're sure it wasn't cut because it would have taken attention away from Final Fantasy XIII for 360. Oh no. Never.

When do we get to see it, then? "We felt we could do this game more justice with a more dedicated event," Mattrick said in the L.A. Times piece. Given that Bungie was ready to rock with an announcement on Tuesday, we're guessing that it would prefer ... soon.

Why do we rarely see PSP games raking up huge sales numbers, despite the fact that the hardware itself is selling so well? SCEA CEO Jack Tretton has three answers.

Answer one is the most praising of the handheld. "Multimedia functionality," Tretton says. "There are more things to do with it, so you're not just turning it on to play games, which isn't the case with the DS."

The next one caught us off guard. "Quality of games," Tretton confides. "People will go out and buy a God of War or a SOCOM," he remarks, "but they're not necessarily as interested in buying a PS2 port." So ... people like good games that are original for PSP. Luckily there are some on the way.

Tretton says the "third and almost biggest reason as of late" is piracy. "We have been able to track with releases like God of War that hundreds of thousands of units in potential sales are walking out the door through piracy on day one," he reveals. PSP Fanboy reported on this back in March.

So, is there a solution is in the cards? Tretton says that Sony "has remedies moving forward," but that they won't help with systems already on the market, adding: "That machine is already out there." That machine? Is there a new pirate-proofed PSP revision on the way? Is that even possible? Doesn't Sony realize how popular pirates are these days?

SCEA president Jack Tretton has aired his feelings on Square Enix's decision to nix PS3 exclusivity for Final Fantasy XIII. During a roundtable chat this morning, Tretton said that he was disappointed by the decision, but not exactly caught off guard.

"Am I disappointed by it? Yes," Tretton told us, adding: "Am I surprised by it? No." He was quick to stress that the game remains a PS3 exclusive in Japan, but that "seeing as there isn't that big of a [PS3] installed base in [there], I don't know how big of a coup that is for us."

Speaking to the concept of paying third parties for exclusives, Tretton said that Sony has "invested so much money in the [PS3] hardware" that it simply "can't write checks for exclusive software."

Echoing statements made by Sony Worlwide Studios head Shuhei Yoshida prior to E3, Tretton said that Sony's is more focused on exclusive titles from its own teams. "You've got to create platform-defining franchises that you own," he said. "It's the only way you're going to guarantee exclusivity going forward."

GameTrailers has posted a very nice direct-feed walkthrough of the new Apple TV Xbox 360 Dashboard refresh, "hosted" by Xbox Live chief of staff Steve Willett. Every little detail is covered, including the new Guide, which looks like a super-condensed, zippy way to navigate all of the Dashboard features introduced since the system's launch. That includes everything from the games library to viewing active downloads. We like what we've seen so far, although it's a far cry from what some people were hoping for.

Hot on the (wolf?) tail of the ever-so-brief debut trailer for the game, Activision has unleashed a pack of first-ever Wolfenstein screens. Well, technically, they're of the new Wolfenstein ... not the original, although they share the same title (minus a "3D"). But we figured you'd guessed that after taking a gander at it above.

Oh, and to clear up any confusion, Activision has confirmed that the game will hit PCs as well as PS3 and Xbox 360. The only thing we need now is a date. (Our eagerness to crack some nazi skulls remains more than sufficient, thankyouverymuch.)

The sequel to PS3's bippity-boppity-blazingly-fast off-road racer, Motorstorm, was shown only a wee bit of love at Sony's E3 press conference. Thankfully for it, Pacific Rift is being promoted much more vigorously on what's left of a show floor. It's getting dirt and palm fronds everywhere. While we can't promise anything, we think it's reasonably safe to watch the video above devoid of fear that the game will make a mess of your personal space. Reasonably safe.

Uncharted: Drake's Fortune developer Naughty Dog tells us that a patch to add PlayStation Trophy support to the game will be available by mid-August. Company co-president Evan Wells says that the update has already been submitted for quality assurance testing and could hit sooner.

According to Wells, the patch was "incredibly easy" to implement because the game already contains preliminary support for Trophies via its Medals reward system. He further revealed that these hooks were actually included because Naughty Dog thought Sony would roll out Trophies before Uncharted's November 2007 launch.

As with other PS3 titles getting retroactive Trophy support, Uncharted will require those who've already completed the game to play through again in order to unlock Trophies, even if they had previously earned every Medal. Wells says this is primarily to prevent people from simply using someone else's save data to artificially bolster their Trophy collection. Shame on you for even thinking about it.

We've known about it for a while years, but it was nonetheless nice to see the next Wolfenstein formally announced for PS3 and Xbox 360 tonight. Activision, id, and Raven Software have finally shown a trailer showcasing the fruits of their collective labor – one that's over rat-a-tat-tat fast.

It was revealed that the game's most intriguing hook will be the ability to enlist the aid of underground resistance in combating a nigh-endless flood of nazis. Nazis who are attempting to rip open a hole between our dimension and one called "Shrell," which we assume is Raven's way around officially licensing "Hell."

id's Todd Hollenshead, who was on hand to introduce the quick clip, announced that more footage (and, we hope, details) will be dished out at QuakeCon on July 31.

Grab your welding goggles – that there's a video of the XBLA-exclusive Galaga Legions, the latest update of Namco's coin-op classic. This one's being handled by the team behind Pac-Man Championship Edition, which equals eye-searing effects that are the graphical equivalent of spirit fingers.

Keep reading after the break for another salvo of videos showcasing incoming XBLA titles including Uno Rush, South Park, and Word Soup. You can take your welding goggles off for viewing those. We promise it's safe.