Microsoft have released demos (well video's) from their XNA development platform -- The technology that will empower future Xbox2, and Windows games. XNA is supposed to take away developers having to spend so much time on cross platform development and focus more on whats important, well at least for windows and xbox anyway. These stunning videos, which i recommend you take a look at are available at Microsoft's official XNA website., I daresay Xenomorph (3rd vid) looks the best. More on the Xbox, they have also said the black and white buttons on the controller are likely to be either relocated or removed from the Xbox 2 controller. This is in response to surveys which claim that these buttons are used the least by far.

Valve have also released plans on a Half Life 3 title, and in it they are considering making Gordon Freeman's female side kick a playable character.

Meanwhile, Id software have said the next game they will be releasing will have a really short development time and re-use models from Doom3. They said they will be looking into their portfolio, and something along the lines of a possible Quake 2 Remix. They also mentioned Doom3 is really close to shipping now.

Lastly, Sony have released footage of the PSP's first game title, Death Jr, at the GDC (Game Developers Conferrence)