Engadget & Joystiq live from Sony's E3 2009 keynote

We've teamed up with Joystiq for live coverage of E3, and Sony's keynote is rounding out the big three. The event is scheduled to start at around 2PM ET / 11AM PT.

10:27AM PT: We're live at the Shrine Auditorium, waiting to take our seats and begin the ritualistic dance we both know as a "liveblog." Will there be a PS3 price cut? Will it be "PSP Go!" or "PSP D'oh!"? We don't know yet, but you will as we cover Sony's presser live. Follow along with your bingo card and make your Sony predictions in comments!

1:07PM Tretton finishes the show and we're out of here. Thanks for reading along at home, everyone!

1:07PM "We're actually cutting the demo here" but they promise we can finish it off on the show floor. Unfortunately, it'll miss the holiday season. You won't be ripping out organs in God of War III until March 2010.

1:06PM Yet another creature appears, this time a red-eyed three-horned beast that claws at Kratos. The ESRB won't be too happy about how Kratos rips off one of the beat's horns and uses it to stab it in the brain.

1:05PM Whilst fighting a centaur (it's two things, y'know), Kratos uses a pair of metal gloves to pummel the enemy. The franchise iconic QTEs appear yet again to allow Kratos to perform a finisher. He slashes at the torso of the beast, and we can see some organs and innards fall out. Good thing we didn't eat lunch yet.

1:04PM The visuals do look significantly enhanced over the previous demos we've seen of the game so far.

1:02PM Yet another towering boss appears, this time made of what appears to be magma. For the most part, this looks exactly like God of War II, red orbs, combo meter, finishers and all.

1:02PM The demo shows Kratos already wielding a bow & arrow. He shoots one at a flying enemy, and lures it closer, using it to climb to higher distances. Yes, he still stabs them brutally, just like in the last trailer.

1:01PM The demo immediately begins with a group of skeletal enemies rushing towards Kratos, which he dispenses with ease.

1:00PM The title screen has Kratos' face on the right side of the screen. It's very detailed -- you can see all sorts of wrinkles there. Looks like Kratos hasn't aged very well! Also, he's still very angry. But you expected that, right?

1:00PM The God of War III demo is now projected on the big screen.

1:00PM The visuals look good, but let's not forget that GT5 Prologue looked pretty good as well. It's hard to tell if this is a revolutionary jump or not.

12:58PM The new trailer highlights various dirt tracks in a new rally-style racing mode. The trailer briefly shows a crash, but it happened so quickly we couldn't see if there was a damage model in place.

12:57PM Jack is back: "Please feast your eyes on this short tease of Polyphony Digital's Gran Turismo 5." A "short tease"? Really? We suspect that all of Forza Motorsport 3 was developed in the time it's taken to make this tease.

12:56PM Alright, now we've got some new footage! Enemy soldiers, some stealth gameplay, and a peaceful shot of the little boy and his kitty dragon resting in a field. Yes!

12:55PM There's definitely been some graphical improvements – will be great to watch these two side-by-side. We're thrilled to see that the kitty-dragon is still intract and cute as ever. Geneticists, you've got your work cut out for you. We want a kitty dragon, pronto!

12:54PM A little boy is running down a hall, a giant beast is chasing him. So far, this is identical to that leaked trailer.

12:52PM By "new glimpse" we're expecting to see an updated version of the video that was leaked some weeks back. Sure enough, it begins focusing on the well with the chain.

12:51PM Jack is back: "Now it's my pleasure to give you another sneak peak" at a PS3 exclusive. This is a "new glimpse" at Fumito Ueda's latest game, "The Last Guardian."

12:51PM The game will be released in 2010.

12:51PM Seemingly everything can be manipulated: the water level, the angle of the sun, the number of sheep on the side of the road. You can take these tracks and upload them to PSN, download them again, and even remix them. Sorry BigPark, looks like ModNation Racers has piqued our curiosity a bit more.

12:49PM The developers are populating the track with various props, such as weapons pick-ups, trees ... and sheep.

12:48PM The fact that this is so quick makes it far more appealing than LBP's Create mode, which as many have found out, isn't the easiest thing to use.

12:48PM Interestingly, those of you that visit Sony Wonder Labs in NYC will be able to see a tech demo that's remarkably similar to the creation tool showcased today.

12:48PM Using TrackStudio, they're going to make a brand-new track in under five minutes. This is another component of the "Create" model. So, he quickly creates a loop, but it's boring, so we're adding in details. He's pulling mountains out of the ground, and then adding a lake to the other side. Also, he's laying down some dirt on the surface, adding some trees. This is applied like a paint brush – it looks very intuitiver.

12:45PM While the characters are cartoony, the tracks are surprisingly realistic, akin to some levels from Pure.

12:45PM Like LittleBigPlanet, ModNation Racers focuses on implementing physics into the gameplay design.

12:44PM Right now, the two developers are showing off the avatar selection screen. The animation is absolutely adorable. One character has its costume changed to a dress, and it tries to hide, embarrassed.

12:43PM ModNation Racers is a "thorougly modern take" on the classic Kart Racer. "We empower you to express yourselves and become superstar designers yourselves."

12:42PM "I'd like to introduce a new franchise today" that is also exclusive to the PlayStation 3, and part of their "Play. Create. Share." genre. United Front Games is out, showing off ModNation Racers.

12:42PM Additionally, you'll be able to buy a Jack Sparrow costume for LittleBigPlanet as Disney Interactive Studios joins the LBP world.

12:41PM Tretton notes that LittleBigPlanet now has over 900,000 user created levels played over 2 million times.

12:40PM Jack is back. "See, not everything got out. This is going to be a really exciting part of PlayStation's future. ... Prepare for a launch in Spring of 2010."

12:40PM "We're looking forward to sharing more with you in the near future. Thank you everyone!"

12:39PM A sword and shield demo (again, this is totally 1 to 1!) shows an incredible level of precision. He takes his sword and tickles the armpit of the dummy, before flipping his limbs around. The same arena has morphed, and he's throwing ninja stars. And now: archery. The bow and arrow functionality is very slick – for our money, this already looks comparable to Wii Sports Resort.

12:37PM A demo of a real-time strategy game – of course the RTS is the first thing everyone thinks of when considering an mouse-accurate input device.

12:36PM We're being shuffled through a series of demos showing off the possibilities of the wand. The latest: writing. "The pencil shows off the precision really well." We're trying art – using analog buttons, he can apply more or less paint with his brush, and the spray paint can (which gets shaken up) is affected by the angle of application.

12:33PM The wand is now being used in a primitive, but fluid, FPS mock-up.

12:32PM We're seeing a live playback from the PlayStation Eye camera, watching the wand replaced with ... well, anything. Tennis racket, baseball bat, fan, stop sign, sword, flashlight. The tracking looks perfect.

12:32PM The demonstrator now has a virtual racket, fails at hitting a ball and then admits "it's still hard" to the laughing audience. He finally hits the bouncing ball with a stop sign and says "yes!"

12:31PM The live demonstration shows a rendered (and dull looking) living room that moves around to follow the wand. "This is true 1 to 1 tracking."

12:30PM Richard Marks was here to show off the first PlayStation motion controller, the PS2 EyeToy. The latest camera will enable "a completely new set of experiences" using a new controller. "It has a variety of buttons" and sensors. He cautions that the controller in his hand is a prototype, and will most likely change.

12:28PM "So there's one that didn't leak out, huh?" Jack quips. Alright, Tretton. We'll give you that one. "We're not just here to talk about what's coming out this holiday season" but also what's going to be occupying gamers for the next several years. "We're working to create an experience that's much closer to real-life than anything you've ever seen." The PlayStation motion controller.

12:28PM Looks like Square Enix finally has a proper follow-up to Final Fantasy XI, their last online-exclusive Final Fantasy game.

12:27PM The all CG trailer asks heroes to "take their blades" and "answer the call of destiny." Final Fantasy XIV is ... real? And online! It's an MMO! Final Fantasy XIV Online.

12:27PM And he just announced Final Fantasy XIV! "And PlayStation 3 will be the ONLY console" that XIV will be available on when it launches in 2010. Wait, what? Final Fantasy XIII and XIV are launching in 2010?

12:26PM Jack is back: "We're very excited about Final Fantasy XIII, but Square Enix isn't stopping there."

12:25PM FFXIII's main character, Lighting has a few quotables in the trailer. Squenix fans can figure out their significance: "I can barely keep myself alive!" "Humans are tools; I'm not going to die for one of them."'

12:23PM Jack is back on stage introducing Square Enix. "You all know Final Fantasy XIII will be coming to PlayStation 3 in the spring and I'd like to show you a video they prepared to whet your appetite." Cue the obligatory FFXIII trailer! A new trailer for Final Fantasy XIII appears on screen with full English voice acting. There's a lot of CG, unlike the gameplay shown at Microsoft's conference.

12:22PM Assassins Creed II and Assassin's Creed Bloodlines on PSP will be on store shelves this holiday season.

12:21PM The trailer ends with Ezio diving into the water – nice to see a killer assassin can swim this time around.

12:20PM AC PSP will unlock additional weapons in the PS3 version of AC II. The connectivity is casually referenced, but it's good to see some synergy between the various PlayStation brands again.

12:19PM zio casually runs up to two people standing atop a roof, and just smashes his palms into their faces. Looks like having blades embedded in your sleeves is a good trick for an assassin.

12:18PM AC2 starts right where AC1 ended, with Desmond using the Animus machine to enter the memories of another ancestor. His new ancestor is "Ezio" – they pronounced it "ET-ZEE-OH" if you were curious. Ezio will need the help of some of this friends, and Leonardo Da Vinci is one of those friends. The "Flying Machine" is one benefit of that friendship. This thing is going to make the world of Assassin's Creed 2 far easier to navigate.

12:17PM The visuals are remarkably improved over the first game. Of note, the lighting looks far more natural. The water shimmers under the moonlight, with fireworks bursting in the sky.

12:16PM Ubisoft now takes the stage to showcase Assassin's Creed II, which was mysteriously absent from the Microsoft keynote.

12:16PM "Agent will take the player across the globe" in the shadowy world of espionage. "You're all aware of the impact GTA had on our platform and we expect Agent" to do the same. Sony announced an exclusive collaboration with Rockstar two E3s ago. Unfortunately, they didn't show any footage from the game.

12:14PM Tretton now introducing a "new property from Rockstar North" called Agent. That will be exclusive to PlayStation 3.

12:14PM Tretton is back and just included Lost Planet 2 in his mentions – so, definitely coming to PS3.

12:13PM Another video to show us "what's on tap for PlayStation 3." Uncharted 2, inFamous, Madden, Final Fantasy XIII, MAG, Batman: Arkham Asylum, Brutal Legend, White Knight Chronicles, Ghostbusters, Ninja Gaiden Sigma 2, Buzz, Saw, Tekken 6, Red Faction Guerilla, Dark Void, Guitar Hero: Van Halen, Heavy Rain, Battlefield 1943, PixelJunk Shooter, Katamari, Fat Princess, Zombie Apocalypse, DC Universe Online, LBP (?), BioShock 2, Ratchet & Clank, Fight Night, AND God of War 3.

12:09PM Tretton jokes that he has a mohawk in Home, and that his tag is "MrT." We somehow doubt that. Why don't you PS3 users try and add him?

12:07PM He's giving us a rundown of all the publishers they're working with on Home – lots of big names in there. Some stats meant to encourage us that Home is gaining traction with gamers. Now a trailer meant to show us "how far the platform has come since we launched it six short months ago."

12:05PM Home is "only possible on PlayStation 3." Guess that rules out a possible PSP version, right?

12:05PM "In addition we're adding more than 50 PlayStation One classics to the PlayStation Store" this year including Final Fantasy VII, available today.

12:04PM 24 million registered users in 55 countries; more than 475 million pieces of content downloaded; more than 90 exclusive titles.

12:03PM "PSN comes to E3 with momentum on its side."

12:03PM The audience claps all the new girl-oriented games, like the Miley Cyrus game and a new dog simulator that looks a lot like Nintendogs.

12:02PM A brand new 2D echochrome made a brief appearance in the montage. And somehow Fat Princess appears in the PSP montage. Let's hope that wasn't a mistake like last year's Valkyria Chronicles.

12:01PM And so we've got a montage of PSP games ... what? We thought they'd be showing some Resident Evil PSP footage.

12:01PM On screen is a white PSP Go! confirming multiple system colors.

12:01PM Footage of LittleBigPlanet PSP takes the big screen, in addition to the new Jak & Daxter game.

11:59AM "Ever since Resident Evil first brought gamers to the fictional town of Raccoon City in 1996" the series has enjoyed great success on the PlayStation platform. "We're very proud to welcome Resident Evil to the PSP at this time." It'll be a "whole new game" made specifically for the portable.

11:59AM After encouraging us to check out the Go on the show floor, Kaz is off the stage and Jack is back. (Why no mention of Raiden? Perhaps Kojima will make yet another appearance once the PS3 content is featured.)

11:58AM Kaz is back on stage. "So, all of us have been going through a little bit of Metal Gear Solid withdrawal ... we now have the antidote we all needed."

11:58AM Wait, another trailer? No, this trailer just forgot to end.

11:57AM "Worldwide anticipation becomes reality!" it says. I think our anticipation turned to annoyance after the third or fourth countdown for this title. "Monstrous foes incapable of feeling pain." Shockingly, we see four clones of Big Boss all taking aim at a giant Metal Gear-esque mech. Clearly, Kojima is preparing a mind-frak with this one again, folks. The trailer ends with two Snakes entering a box labeled "Love Pack."

11:55AM The first in-game footage takes place in Costa Rica. "A nation without a military" must turn to a "nation without a government." In this game, Big Boss is already seemingly in control of Outer Heaven. The visuals are notcieably improved over the first Portable Ops game, with improved lighting.

It's called "the legendary missing link" of the Metal Gear saga.

11:54AM The Peace Walker trailer starts with live film footage, reminiscent of the first Metal Gear Solid game.

11:53AM "And since it's on the PSP I will not forget to add all the features and the specs that the PSP offers." It will have all the Metal Gear franchise features and the PSP features. "Please enjoy the new trailer, Peace Walker."

11:53AM "When it comes to Metal Gear Solid, there is no substitute for the incomparable Hideo Kojima" – Kojima-san is pulling keynote double duty! First Microsoft, and now Sony. You cad! "Peace Walker: the setting is 10 years after Metal Gear Solid 3, the 1970s"

This is a "true sequel" to Portable Ops. "I will be deeply involved in this title, including writing the script" – it's not a spin-off and it's not a side-story.

11:52AM Looks like yet another PlayStation leak was revealed early. We caught wind of this yesterday. It uses the same image of Big Boss from the pre-E3 Kojima Productions site to promote it.

11:52AM Metal Gear Solid: Peace Walker.

11:51AM Kaz is back on stage. This fall, October 1, to help celebrate the launch of the PSP Go. Really, no GT5 on PS3?

11:50AM The footage is unbelievable. As in, we don't really believe it. The visual fidelity matches GT4 on PS2 easily. We'll have to see it on the show floor ourselves.

11:49AM And Yamauchi is off the stage, replaced by a flashy video of GT PSP, running on the Go of course.

11:48AM "And finally, I'd like you all to take a look at a video we've prepared of Gran Turismo PSP"

11:48AM To have people meet with others and meet in Ad-Hoc mode" is important to GT PSP. Sounds like they got a lot of inspiration from Monster Hunter.

11:47AM "Another feature that is also geared specifically for PSP is the trading and sharing of cars" from your garage to your friends.

Because there are 800 cars in the game, it'll be difficult to get it by yourself. If you work with your friends, you'll have a much easier time.

11:46AM Game will use Ad-Hoc mode for races. No mention of online infrastructure?

11:45AM "Single player mode contains standard races, time trials, and drifting." You can also earn your licenses, in GT fashion. "Though it is running on such small hardware, Gran Turismo offers a full-size" experience.

11:45AM "It's running at 60fps," he says. "Gran Turismo PSP contains 800 cars, 35 tracks" and multiple variations of each track.

11:44AM "I am very honored today to be given this opportunity to announce Gran Turismo PSP" – wait, wasn't this "announced" about three years ago?

11:44AM "Ladies and gentlemen, pleaase welcome the founder of Polyphony Digital and the father of Gran Turismo, Kazunouri Yamauchi!" The screen announces "Gran Turismo for PSP" (That's probably a working title.)

11:43AM You'll now be able to download videos from the PlayStation Store directly onto the PSP. Before, you could only download games on the PSP directly.

Today well be launching content from Showtime, G4, HDNet, and a ton more. "There will be more content that is easier to get onto your PSP"

11:42AM The PSP Go will be available in stores in North America for $249 and 249 Euros, the same price the original PSP launched. In Japan, it's ¥268,268 (??)

That's the same price as when the PSP launched in the US.

11:41AM "All PSP games going forward will be digitally distributed via the PLayStation Network" but also delivered to retail via UMD as well.

This policy has already been largely implemented in Japan for a few months.

11:41AM "Launching on PSP and PSP Go this Fall, SenseMe" is going to deliver custom playlists from your PSP straight to your earholes.

The PSP has been largely critized for its lackluster music support in the past. Considering it's one of the most used features on the platform, this is an important step. Will it be available on PSP-3000?

11:40AM "MediaGo has replaced the current version of Media Manager." "It makes content transfer of pictures and movies that much easier." This thing sounds PC-only. (Sony has a history of never supporting Mac.)

11:39AM "Its size is really built for the digital consumer." 40% lighter than the original PSP-1000. You'll be able to download straight from the PSN Store straight to the Go, as expected (read: leaked).

11:37AM "Let me be clear": The PSP Go will not replace the PSP-3000 or UMD.

11:37AM "For those who live a more digital lifestyle" and people who don't want physical media. "And I have it here right in my pocket. And here it is." Kaz pulls the PSP Go outof his pocket. "We have a couple names for this device. First we call it the 'Worst Kept Secret of E3'"

11:36AM "We went on the road visiting with publishers, developers" and players to ask them "How can we make the PSP better?"

11:36AM President of SCE, Kaz Hirai is taking the stage. I'm really excited to be back here on stage at E3."

11:35AM "Dissidia Final Fantasy will be launching on August 25." A Hannah Montana PSP bundle is hitting as well – the audience sarcastically applauds!

11:31AM A ton of soldier's on the player's team are charging a bunker, which serves as an enemy spawn point. The HUD looks somewhat crowded, but with 256 players, what do you expect? The team commander is staying out of the fray, establishing new spawn points and setting up air raids.

11:31AM Graphics seem a bit low quality for the current generation, but you certainly can't argue with the scope of things.

11:30AM An aerial view again really drives the scale of the presentation home. Now we've zoomed into first-person, looking through the eyes of just one of those blue dots.

11:28AM "We're going to see a live 256-player MAG battle."

11:21AM Evan Wells takes the stage to show off Uncharted 2 for PS3.

11:20AM Tretton suggests that we're tired because we're playing inFamous, which released inconveniently before E3. It's true. It's very good. (Read Joystiq Review)

11:17AM Reiterates the validity of all three platforms: PSP, PS3, and yes, even PS2. "In 2009 if you want to have the ultimate gaming experience, you need PlayStation."

11:16AM "You'll see why 2009 will be our best year ever, even better than the record year we had in 2008."

11:15AM The screen is 40x80' "and only the PlayStation 3" can push that many pixels Jack assures us.

11:14AM As industry leaders, Jack considers that to include press leaks, and they won't be beaten by anyone. Good one, Jack! The crowd loves it. "364 games coming to the PlayStation platforms this year."

11:14AM "Wow, thank God you guys showed up. Given this industry's inability to keep confidential information" Jack didn't think anyone would want to show up. We're surprised that Sony is acknowledging the leak. Guess PSP Go! is totally real.

11:13AM "Ladies and gentleman, please welcome your host Jack Tretton."

11:12AM We've got a montage of PS3 games – not all exclusives, mind you, but all things PS3. We're seeing Dark Void, Call of Juarez, and more. Now it's exclusive time! Footage of LittleBigPlanet, MotorStorm and a Star Wars Battlefront game appear on screen for PSP.

11:12AM Exclusive titles include previously-revealed Uncharted 2, MAG, God of War 3. Crowd cheers at sight of Kratos.

11:11AM The screen is up and we've got an enormous three-panel video of a PlayStation-fans dream.

10:57AM "We should begin very shortly." Same old routine – cell phones off; please take your seats request; us trotting out the "where should we take them" joke. Good times.

10:53AM So, we've got our seats – front and center. A mellow electronic jam is getting us in the mood for ... well, we've no idea. Right now, we're really just in the mood for another video game keynote.

10:43AM We just want you to know that we've holed up in a corner to bring you these updates. Other options included: free food and drinks; playing one of the eight PS3 game stations; or napping.

10:27AM PT: We're live at the Shrine Auditorium, waiting to take our seats and begin the ritualistic dance we both know as a "liveblog." Will there be a PS3 price cut? Will it be "PSP Go!" or "PSP D'oh!"? We don't know yet, but you will as we cover Sony's presser live. Follow along with your bingo card and make your Sony predictions in comments!