Gamespot has retracted all mention that Beautiful Katamari will release on Xbox Live Arcade and "regrets the error." Screw-up or cover-up? You decide. Gamespot now says that the game will be released as a "full retail package and not a download." Gamespot is typically on the ball, it's very out of character for them to just make a major statement like Beautiful Katamari would be on XBLA without reason.
Beautiful Katamari has had a very odd public trip so far. First it popped up when Orange Lounge Radio discovered it in retail computers. Then Namco Bandai strong-armed the independent podcast to pull the story, but then the game also ended up on GameFly with a fall release. Then it was confirmed for all systems and finally became a possible Xbox 360 exclusive, which led to the XBLA announcement. Heck, we've still got another four months or so before the game comes out, what other things can be picked up in this beautiful katamari of crazy gaming news?