15. Online Services Level Up

With the evolving roles of game consoles, in 2008 the "battle for the living room" turned from an oft-talked about mythical skirmish into a genuine ever-escalating war.

New Xbox Experience and Sony's Home open beta added significantly updated community features in the middle of a console cycle. Home's virtual world, among other aspects, has added the ability for gamers to virtually congregate around their favorite games, and Xbox Live improvements upped the overall entertainment appeal of the Xbox 360 with streaming Netflix support. Sony marketing has also begun to put a heavy emphasis on the movie downloading capabilities of the PS3, which are continually expanding.



14. Final Fantasy XIII Comes to Xbox 360

Sure, it's not the first time that a Final Fantasy game has come to an Xbox platform, but few were expecting Final Fantasy XIII to come to the 360. Originally announced by Square Enix for PS3, the title was supposed to be an exclusive feather in Sony's cap, a definite system-mover. After all, Final Fantasy had been coziest with Sony since FFVII.

But with the July E3 announcement of FFXIII on Xbox 360, it solidified in broader terms that the days of third-party console exclusives are essentially over, and Japanese game makers must take into serious consideration the buying habits of Western consumers.



13. The Beatles Have a Music Game

The Beatles have been highly resistant to releasing their songs digitally, so it came as a surprise that they caught on so quickly to another growing music trend, the music/rhythm game genre. Reportedly bidding for the Fab Four's material against Guitar Hero publisher Activision, Rock Band and MTV Games owner Viacom wrestled away exclusive rights to the music.

Announced in October, Harmonix Music Systems is currently working on the unnamed Beatles game, which will explore the group's catalog from Please Please Me to Abbey Road--all with the full blessing of Sir Paul McCartney, Ringo Starr, Yoko Ono Lennon and Olivia Harrison.



12. Blu-ray Wins Format War

The games industry found itself in the middle of the high-definition format war when Sony decided to put a Blu-ray player in the PS3. It wasn't until February this year that Toshiba decided to finally wave the white flag and drop support of rival format HD-DVD, as major Hollywood studios and retailers jumped ship for Sony's format.

The PS3's installed base played an integral role in sealing the format victory, but with digital distribution of high-def movies becoming more prevalent, even on Sony's machine, we must ask if this hard fought war was worth fighting in the first place. In any case, Sony game developers have plenty of space to work with on the high-capacity Blu-ray discs--and that's what gamers should really care about.



11. Big E3 Is Back

Most will agree that the neutered E3 of the last two years was a spiritless affair. Even top execs from the biggest game publishers were ridiculing the once grand conference. EA CEO John Riccitiello likened E3 2008 to "a pipe-fitters show in the basement."

The Entertainment Software Association canned that pipe-fitters show in October, announcing that E3 would re-expand when it is resurrected in June 2009, welcoming a wider array of "qualified" industry types into the L.A. Convention Center and promising more "fireworks" deserving of a multi-billion dollar industry

But will we yearn again for the mundane E3 in five years when we're sick of the noise and the crowds?