Warcraft fans abuzz You might think that after creating a title
that has over 12 million customers happily paying a monthly subscription fee, Blizzard Entertainment would be immune to some of the fears circling the video game industry.

But Frank Pearce, co-founder of the development giant, says he's just as worried about the impact of Facebook and iPhone games as everyone else.

"It's really tough to compete against free," he says. "No matter what level of quality you hit, there are a lot of people who are willing to sacrifice that for a cheaper version...The industry is changing in terms of the business model."

That's a thought that has been on a lot of people's minds at this week's Game Developers

Red Tide - Photo: Andrea Swenson Dunlap A publicity stunt intended to advertise upcoming shooter Homefront ended up backfiring this week when 10,000 red balloons, released by publisher THQ into the San Francisco skies, wound up in the waters of the Bay itself, angering local environmentalists.

Scheduled for release on March 15, Homefront takes place in 2027, and sees a belligerent and heavily armed North Korean army invades the mainland of the United States. The balloons were released in a mock protest against the game's fictional North Korean regime, and coincided with this week's Game Developers Conference taking place in downtown San Francisco.

But what goes up, must come down -- and thanks to San Francisco's notoriously

Compelling actor performances make you forget that you’re playing a game as cutting-edge motion-capture technology tracks every look askance of 1940s Hollywood murder suspects.

What really is the next step for videogames? It’s truly hard to imagine, unless you’re content with familiar scenes transformed by 3D. Well, how about decent acting and strong cinematic direction – captivating drama that doesn’t just involve driving fast or shooting your way out of trouble? What if sublime characterisation didn’t take a backseat but was your primary reason for taking part?

Journey into the mind of a killer
This is where ‘L.A. Noire’ steps in; the latest from Rockstar Games, creators of console

SAN FRANCISCO - With retail video game sales smacked down by the rough economy and ever-growing competition in the crowded social and mobile game marketplace, it seemed like attendees at this week's annual Game Developers Conference were more frustrated than birds catapulted at pigs.

Game designers, programmers and executives from around the world converged at the Moscone Convention Center in hopes of figuring out how to become the next "Angry Birds," the silly top-selling mobile game that pits birds against pigs. Yet many attendees dismissed the mobile platform as The Next Big Thing, noting that selling 99-cent games isn't a dependable way to generate revenue.

Nintendo president Iwata at GDC - Nintendo "Downloadable games are the

Scientist at work. Within days of its retail release, hackers were already finding some innovative ways to use Microsoft's Kinect motion controller. Now they're going to get their chance with the PlayStation Move. Sony has announced plans to make the software development application for Move available to students, researchers and enthusiasts later this spring. The company says it's hoping the action will lead to increased innovation in gaming and other fields.

"PlayStation Move's camera-plus-controller combination allows for the most precise and immersive gaming experiences," said John McCutchan, senior engineer, SCEA Developer Support. "Now we're formally taking that advanced technology ... and offering it

Fight Night: Champion

Platforms: X360, PS3

Fight Night: a knockout

Already an established brand with many fighting game fans, the latest Fight Night game, Champion, launches this week, with the addition of a bold innovation for a fighting game: a storyline. It follows protagonist (and
pugilist) Andre Bishop as he struggles through the boxing ranks, going from chump to champ in a five-hour tale that's captivated many critics. Praise for the plot of a fighting game? You better believe it.

It's enough to earn it top marks, from Game Revolution, for one. Despite coming in a sceptic, Jesse Costantino says Fight Night Champion's storyline "succeeds where so many other sports games before it have failed." It blends