“Wallace & Gromit” are going on a new adventure.

Telltale Games is creating an episodic video game based on Aardman Animations’ Oscar-winning animated film series titled “Wallace & Gromit’s Grand Adventures.” The popular stop-motion clay animated franchise stars the cheese-loving, hair-brained inventor Wallace (voiced by Peter Sallis) and his long-suffering loyal pooch, Gromit.

“Grand Adventures” will allow gamers to play as both Wallace and Gromit, engaging in zany entrepreneurial schemes and tinkering with kooky contraptions. Connors said “Grand Adventures” will feature more physical and situation-based comedy and would likely follow the distribution model of Telltale’s episodic video game series “Sam & Max.”

The Wii Remote is getting in touch with its sensitive side.

Nintendo unveiled Wii MotionPlus at the E3 Business and Media Summit on Tuesday. The new accessory plugs into the base of the Wii Remote and will provide more intuitive motion controls. Wii MotionPlus is scheduled for release in spring and will come packaged with “Wii Sports Resort,” which will feature beach-themed activities such as frisbee throwing and jet skiing.

Microsoft Corp.’s Xbox 360 video game console will be able to stream thousands of movies over the Internet, thanks to a deal announced Monday with Netflix Inc. that highlights the way gaming devices are expanding into all-purpose home-entertainment hubs.

The arrangement, revealed at the E3 Media & Business Summit in Los Angeles, will let Netflix subscribers stream 10,000 movies and TV shows to Xbox consoles for viewing on television sets, beginning this fall. Xbox had movies and shows available for download before, but only half as many.

“This generation of consoles will change the face of home entertainment more than any other generation before,” said John Schappert, corporate vice president of Microsoft’s interactive entertainment division.

As Microsoft vies for a stronger foothold in the living room, so is rival Sony Corp., which has tried to make its PlayStation 3 into a broader entertainment device by including Blu-ray high-definition DVD players in the consoles.

The deal with Microsoft also marks an important expansion for Netflix, whose 18-month-old streaming service - which supplements its DVD-by-mail program - has been available on computers instead of TVs, unless consumers had bought a small streaming device from a Netflix-backed startup called Roku Inc.

Microsoft already has sold more than 10 million Xbox 360 consoles in the United States. More than half of Xbox 360 owners pay $50 a year for a “gold” membership, which will be required for access to Netflix’s “Watch Instantly” library. They also must subscribe to Netflix, which charges $9 per month for the least expensive plan that includes unlimited streaming.

In partnering with Microsoft, Netflix may be building the streaming service to prepare for the day when the convenience and widespread availability of video downloading kills its DVD-by-mail service.

Yahoo Inc said on Thursday it would offer its users hundreds of popular casual online games as free downloads backed by revenue from advertising integrated into the games.

More than 400 ad-supported games from top casual games publishers like Anarchy Big Fish Games and Sugar Games will be available to users before year-end, Yahoo said.

The company is working with technology providers Double Fusion and NeoEdge to sell and integrate video ads into the Yahoo! Games catalog.

Sony has released a fix for a PlayStation 3 firmware update that caused some customers’ systems to stop working.

Version 2.41 corrects defects in v2.40, released about a week ago, that caused some PlayStation 3 screens to go black. Sony pulled the older version from its servers and released the corrected version Tuesday.

E3, the video-game industry’s big trade show, is next week, and you’ll be hearing a lot about all the new software coming between now and Christmas. But there’s a bit of a lull until Aug. 12, when “Madden NFL 09″ unofficially marks the beginning of the fall game season. July is a good time to catch up on some of the games you may have missed. Here are the best of the year so far:

1. “Grand Theft Auto IV” (Rockstar, for the Xbox 360, PlayStation 3): The latest episode of “GTA” has its flaws, particularly in the storytelling department. But living a life of crime has never been more fun, thanks to much tighter gameplay and an exquisitely detailed vision of a decaying metropolis.

2. “Lost Odyssey” (Microsoft, for the Xbox 360): The epic tale of immortal mercenary Kaim is a delight for fans of classic role-playing games.

3. “The World Ends With You” (Square Enix, for the Nintendo DS): This adventure set in modern Tokyo is the most innovative RPG in years.

4. “Metal Gear Solid 4: Guns of the Patriots” (Konami, for the PS3): It may be more of a movie than a game, but it’s a dazzling finale for one of gaming’s most fascinating sagas.

5. “Professor Layton and the Curious Village” (Nintendo, for the DS): Charming characters wrestle with clever puzzles in this beautifully written and illustrated gem.

And the worst? So many terrible games have been rushed out for Nintendo’s Wii that it’s hard to pick on just one. I’ll go with Konami’s “Target: Terror,” which combines repetitive gameplay, hideous graphics and laughable acting in a package that’s so bad it’s almost … well, no, it’s just awful.

Microsoft Corp plans to cut the price of its best-selling Xbox 360 Pro model by $50, to $299 in the next few weeks, the Hollywood Reporter reported citing anonymous sources.

The price cut for the Xbox 360 model with the 20 gigabyte hard drive will come before the video game industry’s biggest trade show, E3, taking place in Los Angeles on July 15-17, the report said.

Rumors of the Xbox price cut swirled on popular gaming blogs Joystiq and Kotaku last week. The two sites received snapshots of Kmart and Radio Shack flyers advertising the $299 price.

A Microsoft spokeswoman declined to comment on the report.

Microsoft’s June security updates were bad news for online criminals who make their living stealing password information from online gamers.

The company’s Malicious Software Removal Tool– a program that detects and removes viruses and other bad programs from Windows machines– removed game password-stealing software from more than 2 million PCs in the first week after it was updated to detect these programs on June 10.

One password stealer, called Taterf, was detected on 700,000 computers in the first day after the update. That’s twice as many infections as were spotted during the entire month after Microsoft began detecting the notorious Storm Worm malware last September.

“These are ridiculous numbers of infections my friends, absolutely mind-boggling,” wrote Matt McCormack, a spokesman with Microsoft’s Malware Response Center, in a Friday blog posting.

Between June 10 and June 17, Microsoft removed Taterf from about 1.3 million machines, he said.

Google is heading to the PlayStation Portable and will have a place on the handheld’s Cross Media Bar (XMB) menu, Sony said Tuesday.

It will appear when users upgrade their PSPs to the version 4 firmware, which will be available “soon,” according to Eric Lempel, director of the PlayStation Network, who was posting on Sony’s PlayStation Blog.

“This new upgrade replicates the Google Internet search experience, delivering the same search results that you’d get at www.google.com. And with a search history recall of 20 items, Web searches couldn’t be easier,” he wrote.

Google will appear in the network section of the XMB. Also new in the version 4 firmware will be the ability to change viewing speed when playing back videos from Memory Stick cards.

Disney is bridging the gap between gaming and virtual worlds.

Disney Interactive Studios on Thursday formally launched DGamer, a free avatar-based community for U.S. buyers of games the company developed for the handheld Nintendo DS.

Beginning with Friday’s release of “The Chronicles of Narnia: Prince Caspian” in tandem with the theatrical release of the fantasy sequel, all Disney Interactive DS games will come with DGamer-added content like customizable avatars. DGamer members also will be able to use the WiFi connectivity of the DS to communicate with other members with either a DS or a PC.

Although it features avatars and text chat, DGamer can’t really be described as a true virtual world such as Disney Online’s Club Penguin or Fairies.com — at least not yet.

But as Paul Yanover, executive vp and managing director of Disney Online, noted, “DGamer is our opportunity to work with Disney Interactive to make sure we have this connected environment and to make sure we reach our guests wherever they are, including a player on a Disney Interactive DS title talking to a player in ‘Pirates of the Caribbean Online.’”

Microsoft Corp said on Wednesday its Xbox 360 game machine beat Nintendo Co Ltd’s Wii and Sony Corp’s PlayStation 3 to reach 10 million units in U.S. sales.

“History has shown us that the first company to reach 10 million in console sales wins the generation battle,” Don Mattrick, a Microsoft senior vice president who heads the company’s Xbox business, said in a statement.

The Xbox 360 was the first of this latest generation of game machines to launch in the United States when it was released in November 2005. The PS3 and Wii were launched in the United States a year later.

The Wii is closing in on the Xbox 360, with 8.8 million units sold as of the end of March, while Sony has totaled 4.1 million PS3 units sold, according to market research firm NPD.

Thanks to a new software driver Nvidia is cooking up, any PC game can be played in 3D, with no extra work on the part of game developers.

Beginning this summer, any PC with an Nvidia graphics processor will have the ability to run a game in normal mode, or in 3D, with the aid of 3D glasses.

The software driver will enable the ability to have two views–left eye and right eye–which, at the push of a button, appear blurry and pixelated to the naked eye. When viewed through 3D lenses though, the game pops into three-dimensional mode.

The important part is that game developers won’t have to do anything differently. They just continue to make their games the way they want, and Nvidia will take care of the rest. It’s just an option for gamers though–it doesn’t mean all games have to be three-dimensional.