Kenji Matsubara, the president and CEO of Tecmo Koei Holdings, has resigned citing personal reasons. Matsubara is also stepping down as president and CEO of the Tecmo Koei Games label. He will reportedly be replaced in all four positions by Yoichi Erikawa, co-founder of Koei.

While no one has pressed further as to what those “personal reasons” could be, GameSpot reports that Tecmo Koei saw sales fall 27.5% over the last six months, and the company’s operating loss more than tripled to a whopping $13.6 million. The company’s game division was the biggest money loser, reporting a loss of $19.7 million that took away profits made by the company’s other sectors, including amusement facilities and merchandising. Company officials blame the shortfall on development costs for future titles and the delay of Trinity: Souls of Zill O’ll.

The Trendy Entertainment Forums now include an Official Game is Delayed Thread that discusses the delay for the release of Dungeon Defenders, their upcoming action/RPG/tower defense hybrid.

“Sorry for the wait on this. We have just been in lockdown mode internally to do some critical development, and figure out a few things. The short of it is, while the game is essentially completed, it has to be delayed on PC and console until January, with the demo on all platforms in January as well. Why is this? Let’s just say, certain parties requiring platform launch windows & requirements to do a simultaneous launch.”

Before Media Molecule decided to end Sackboy’s life in a puff of smoke, LittleBigPlanet‘s creators had other, more gruesome ideas in mind. In the Media Molecule blog, the developers detail the evolution of Sackboy from a 2D placeholder graphic called YellowHead to the little knit critter we know today. Sackboy was originally meant to die in some pretty horrible ways. Check out the Sackboy Death Reel.

PlayStation has announced that a new version of the official PS3 Bluetooth Headset will be available later this month for $49.99.

The headset boasts that it offers “the same unparalleled gaming experience as the previous model,” and offers a dual-microphone design. Additionally, those that employ system software upgrade 3.50 or later will be able to utilize automatic pairing via USB cable with the PS3, an in-game headset status indicator, and a charging cradle which also functions as a desktop microphone. The new headset is 30% smaller than the original and includes built-in noise cancellation.

Joystiq reports that Killzone 3‘s beta is looking for more soldiers to test out the game. Yes, that does involve dying repeatedly, but consider the greater good of improved gameplay. PlayStation Plus members in North America and Europe should check their PSN accounts, as 5,000 more recruits have been invited in recent days.

Killzone 3 will launch in North America on February 22.

Sequels to Wet and Naughty Bear have been confirmed today as developer Artificial Mind & Movement announced a return to its original name – Behaviour Interactive. There’s no word yet on when both Wet 2 and Naughty Bear 2 are due to be released nor which platforms they’re being made for, but Xbox 360 and PlayStation 3 releases seem likely.

Behaviour is also working on the XBLA advert/game Doritos Crash Course, a movie adaptation of Rango, several unannounced games for the Xbox 360, a Facebook game to be launched in November, and a casual MMO that arrives early next year.

ShackNews reports that Battlestar Galactica Online, the massively multiplayer browser-based game from developer Artplant, has begun its initial public beta testing. The closed beta will be offered to “thousands of hand-selected players from Europe and the United States” and gives players the opportunity to command space as either a human or Cylon fighter. In order to be considered for a position as a closed beta tester, potential players need to register at Bigpoint and fill out a detailed survey. For those willing to wait, an open beta is planned for December.

This winter, Capcom is bringing some of its classic arcade titles to the Nintendo Wii’s Virtual Console Arcade. As previewed at Comic Con in New York this year, six titles will be released in all: SONSON, 1942, Ghosts’n Goblins, Black Tiger, EXED EXES, and Commando: Wolf of the Battlefield. These old-school classics were chosen to challenge and bemuse veteran gamers and introduce a new generation to Capcom’s arcade roots. All six titles will be available through the Virtual Console download service in both the US and Europe.

EA has announced that Battlefield Play4Free will go live this spring, and will support 32-player online warfare. Those that find that they can not wait until then may enlist early and test out the closed beta which begins November 30. The title will combine maps from Battlefield 2 with the classes and weapons found in Battlefield: Bad Company 2.

Square Enix has launched its first two Facebook games, Chocobo’s Crystal Tower and Knights of the Crystals.

In Chocobo’s Crystal Tower, players raise and breed Chocobo, the giant bird-like creatures featured prominently in the publisher’s Final Fantasy games. The game challenges users to raise a Chocobo that can venture off to Towers, fight monsters, and earn Gil (currency) and treasures. Along with the ability to customize Chocobo and their ranches, this “rearing RPG” features social elements that allow players to care for others’ Chocobo, send virtual gifts to friends, and even propose mating their Chocobo with those of other users.

Knights of the Crystals, which features art from character designer Ryoma Ito, is a more standard fare RPG in which players level up heroes, change jobs to acquire different special abilities, and challenge or cooperate with friends to complete quests.

Gasyukal is a beautiful and explosive dimension between worlds that is rife with monstrosities. In Crescent Pale Mist, you are the sorceress Yunou, the only magician capable of wielding the powerful and deadly magic known as Pale Mist in Gasyukal. Toxic Pale Mist is leaking from Gasyukal into the outside world, and Yunou is determined to stop those responsible – her former comrades.

As Yunou, you’ll have to explore, but curiosity can kill you here. Take risks, leaps of faith, and battle the monsters that block your already uncertain path. When you find your way, clash blades and lethal spells with powerful magicians that you once called countrymen, and turn the dreadful flow of Pale Mist against itself.

Crescent Pale Mist is due to premiere on the PlayStation Network next week.

Develop reports that the world’s largest library is looking to preserve decades of video game history. Paul Wheatley, a specialist in digital preservation at the British Library, says the library wants to build on the work already done by the National Video Game Archive.

“The games publishing industry recognizes the value in preserving its computer games,” Wheatley said. “Many in the industry that I’ve talked to could relay horror stories about old material disappearing or being left to gradually decay in a box under someone’s desk.”

It looks like ZeniMax Media has added one more company to its growing gaming empire. Gamasutra reports that it has acquired MachineGames, the new studio of Starbreeze founder Magnus Hogdahl. Following a Twitter rumor earlier this week, a look into some Swedish business records for ZeniMax revealed that MachineGames was listed under ZeniMax Sweden. ZeniMax announced last week that it had purchased Tango Gameworks, following October’s news that it had secured $150 million in investments to fund further expansion.

City Interactive has announced that their first-person shooter, Sniper: Ghost Warrior, is coming to the PlayStation 3 during the first quarter of 2011. Following its release for PC and the Xbox 360, the PlayStation 3 version includes all of the updates from its predecessors, as well as several new features.

This new release of Sniper: Ghost Warrior features the non-linear, strategic gameplay and mission variety of the other platforms, and adds a little more to the package. The PS3 version will incorporate upgraded gameplay and graphics, and sport some new single-player missions that are exclusive to the platform. Additionally, bonus multiplayer maps, two more multiplayer modes and enhanced weaponry will make their debut.

Cryptic Studios already enabled City of Heroes players to create their own missions from scratch successfully, and now it’s planning on adding the feature to the rest of its MMO catalog. Star Trek Online players can now apply to beta test the toolset, which allows them to create entire Episodes, customizing mission objectives, characters and scenery, which other Captains will then be able to play through.