There is a rumor on the net today which stems from Kotaku that Heaven Sword 2 has been canceled by Sony. Not only that, but the team behind the game, Ninja Theory, decided to move and is more or less no more under Sony. CVG is reporting that Sony is mum on the issue, with the standard "no comment" response. The game is supposedly "not commercially viable" any longer.

In case you have not visited the PSP Blog today, there is some updated info on the new 4.00 PSP firmware. The update will be released soon, and it will add Google Internet searching directly to the XMB. The update will also add playback viewing speed adjustment controls for videos played off the Memory Stick PRO DUO. What purpose this serves is unclear, but it may be fun for a few minutes.

Apparently there are some interesting bits of copy floating around the internet from a leaked document. In this document is some supposed info on Forza Motorsport 3, and a new Skateboard Peripheral that works with Tony Hawk and is slated for PC, Playstation 3, and Xbox360.

Forza 3 will apparently include over 400 cars and 100 tracks, "limitless" customization options, and a new assist mode to help new players get into the game. The Tony Hawk peripheral is very similar to the Wii Balance Board, and will detect player's movements and translate them on-screen. As you can see by the images, the information seems like it could be real, but rumor mill for now until we have more info.

In the most recent update it seems Sony has raised the prices on some of their PSP downloads from the PSN store. The price increases range from $1 to $6 USD, with one even jumping $11 (Gangs of London). For a full list of the price changes, click read more or check the link.

It seems that all three of the console makers claimed victory for the month of May in terms of sales. According to NPD though, Nintendo was the biggest winner with the Wii and DS in first and second in the hardware charts. Nintendo also dominated the software chart with 7 out of 10 spots held by DS or Wii games. Microsoft responded with how GTA IV on Xbox360 outsold PS3 by about 2:1, and how the console continues to be a revenue generating machine for third party software companies. Sony, then, was quick to point out that "more than 32 percent of U.S. PS3 owners have purchased a copy of Grand Theft Auto IV, a 6 percent higher attach rate than Xbox 360." The company also noted that PS3 hardware sales grew 155 percent in May. The NPD numbers can always be interpreted in a number of ways folks, remember that.

SCE is apparently working on a new controller for the PS3 which will feature the ability to separate into two parts. Each part will contain an accelerometer and motion detection hardware, just like the Wiimote. According to GI, there is no word yet when the pad will be available, or if games will support it retro-actively, but GI does not even call this one a maybe. It is apparently a done deal already, if you take GI at their word.

For those of you who went to bed without any PSN because of more Sony delays, you can rest assured, the store has finally been updated as of this morning. The games, demos, and new "Qore" video magazine are all available now.

Ars Technica originally reviewed the 60gb PS3 when it was first released. Now, they have revisited the console, and gave it a second chance at a review. Of course, this time around, the unit fared a bit better than it did at its 2006 launch. Read for yourself.

SCE Japan has announced a new slew of Playstation products for Japan only (for now). First, a Cinnabar Red PS2 unit, complete with matching Dual Shock 2, will be available July 3. later in the month, a Metallic Blue PSP with a 32MB memory stick and an AV cable will be released. There will also be a "1 Seg Pack" PSP released which will feature the 1 Seg tuner and a 1gb memory stick. Finally, a Playstation 3 Eye Pack will be released on July 24. It will feature the PS Eye, a PS3 unit, and the Memoushon software, which is a collection of six casual gaming titles for the camera.

According to PlaystationLifestyle.net, a new Ps3 controller was recently put to the test in a focus group. The controller was reportedly very Wii-esque, with motion control the main focus of the peripheral. The selected PS3 owners were shown to a location in California, and then what looked like a black PS3 Wiimote was unveiled. They worked in conjunction with a "tripod" that had to be setup in the room. Rumor mill for now, stay tuned.