CVG's source "close to the platform holder" says that sales of action-adventure eyesore Kameo: Elements of Power are largely to blame for the decision to stop development on a follow-up. According to NPD data, sales of the original Xbox 360 launch title totaled a little more than 300,000, less than half the sales of launch peer Perfect Dark Zero, so that decision may have been a wise one.

(On the bright side, Kameo: Elements of Power sales over the course of four years outperformed two other Rare titles, Viva Pinata: Trouble in Paradise and Banjo Kazooie: Nuts & Bolts.)

But it appears that Microsoft's first-party needs for Project Natal software is taking precedent. Rare is said to be hard at work on a handful of unannounced games for the controller, now under the watchful eye of Microsoft Game Studios creative director Peter Molyneux.

Kameo 2 canned by Microsoft [CVG]

One of the things that I always find funny is when people always quote Kameo and Perfect Dark Zero as being flops at the launch of the 360. In the industry if you break even you're lucky, you're in the minority. If you make a decent amount of money you're really in the minority. You're in the top percentile. Those two games made a lot of money. For the install base they sold phenomenally well. Kameo is still selling now.

Who the hell is still buying Kameo?

Rare: Perfect Dark and Kameo 'sold phenomenally well' [Videogamer]

Computer and Videogames reports that Edge reports that...um, oh right, that Nick Burton, who helped develope Kameo and Starfox Adventures, is working on a original game for Xbox Live Arcade.

Burton is working with ten others on the title, according to Edge, but nothing else is known about the game. I expect nothing short of a title staring cannibalistic elven women and anthropomorphic men. It will be, I'm sure, disturbingly hot. Brian Crecente

Rare working on original XBLA game [CVG]

Kotaku reader Marcelo turned us on to this Reuters piece, detailing the upcoming Brazilian launch of Microsoft's Xbox 360. What I thought was going to be a run of the mill launch in a territory that no one cares about... oops, I mean is largely ignored... turned out to be an eye-opening bit of news.

Microsoft will be the first manufacturer to sell direct to the market in Brazil, where importers reign supreme. But this privelege will come at a price: 2999 reias, which currently exchanges at $1400 US. That's a lot of reias! Tough to swallow, as importers will bring a 360 to you for close to half that price.

The premium console package will be bundled with a few games, Project Gotham Racing 3, Perfect Dark Zero and Kameo: Elements of Power, which makes the steel-booted kick in the wallet a little easier (games retail for close to $75).

The real lesson to be learned here, is that we must be thankful for the low, low prices the God of Consoles has provided for us this generation. No more whining, Americans! Michael McWhertor

Microsoft bets on fast Xbox growth in Brazil

Today Xbox 360 Uno gets a Kameo flavored deck of cards.

The deck, which sells for 100 Microsoft points, comes with a slew of themed pictures for the card and one special swap power-up card. By playing this card you get to swap hands with another player. The best part is that only one of the players needs to have the Kameo deck for everyone to play. Brian Crecente

A Gizmodo reader tipped us off to more bundles coming to the Great White North due to hit the great state of Canada this November. According to our retail insider, these bundles are:

• Core Package bundled with Project Gotham Racing 3 and Kameo: Elements of Power
• Premium Package bundled with Amped 3 and Ghost Recon: Advanced Warfighter

No prices were given, nor were any solid release dates, but our tipster did let us know that we should expect more black Xbox 360 info very soon. Our northern neighbors may want to hold off on any rash Xbox 360 purchasing for a couple weeks until Microsoft or your local retailer provides more information.

Those of you in the continental United States? Ask grandma to snag you one when she crosses the border for her cheap prescription medication. Michael McWhertor

Rare sends word that new Kameo content is coming via 'Operation Power Pack'. Better yet, it's not just another fruity outfit for Kameo to wear.

Kameo DLC coming soon to Xbox Live Marketplace. The Power Pack contains not just new achievements and leaderboards but three entire gameplay modes, as follows:

Expert Mode ups the challenge of six carefully chosen levels, each revamped until it's ready to kick your arse all over again. Open for both solo and co-op play, complete with a spanking new set of Armour skins for all the Elemental Warriors.

Time Attack Mode pits you against an unforgiving clock but lets you team up with another player (via split-screen, System Link or Xbox Live) to help tip the odds back towards you, if not by much. The pressure's on, fools! Let's start building some hurtin' bombs! Speaking of which...

Rune Battle Mode is co-op as you've never played it. For a start, you're fighting against rather than alongside the other player. You've also got Trolls to deal with as you struggle like a mentalist to hoard the most Runes. This one's for those of you who said the game didn't have enough collecting in it.

Good for Rare for offering downloadable content that's not just micro-content. More Xbox Live content like Kameo's co-op, please. Florian Eckhardt

Operatiopn Power Pack [Rare]

Over at Powet.tv, they've combed YouTube to find as many pictures-in-motion as possible of Gamecube games that never were, or were, but ignominiously cancelled. For example, the above promo video, 'The Nintendo Difference', which details games like Raven Blade, Donkey Kong Racing, Kameo and many pre-rendered concept footage of Mario Kart and Metroid Prime. Florian Eckhardt

GameCube: A Video History That Never Was [Power.tv] (Thanks, Yab!)

Microsoft Game Studios is kicking off a pretty cool contest. The Kameo: Elements of Power Design Your Skin Contest, may not roll off your tongue, but it will give fans a chance to have their own skin design for the Xbox 360 heroine end up as a downloadable game pack.

Starting April 19 through May 24, budding artists can submit their original skin designs for Kameo or any of her elemental warriors to Microsoft Game Studios. the contest is opened to anyone 13 or older and the entry must include the art, a title and a brief description.

The finalists will be judged by a panel of Xbox and Rare team members and one winner for Kameo and one for each of her warrios will be chosen. (That's a total of 11 winning entries.) Sounds like a pretty cool idea. Hit the link for the full contest details.

Design Skin Contest [Xbox]

Even though we mentioned the fruity Kameo outfits yesterday, we somehow missed that Kameo co-op had come. This is the first Live product download that actually seems worth the price: free! Just pop in the disc and you'll be told there's an update available.

The decline of co-op in games outside of tactical team shooters and MMOGs is absolutely depressing and we're thrilled that a developer took the time to patch it in. Many of our best gaming memories are of co-op play: System Shock 2, Diablo 2 and Doom. Glad to see devs haven't forgotten us co-op fans entirely.

It seems like Xbox 360 Marketplace is starting a nasty trend. While I love the general idea of mico-transactions, I hate the idea of a developer charging for stuff that doesn't really add anything to the game experience.

First Bethesda decided to charge to let you dress up your Oblivion horse in fancy armor, now Microsoft Game Studios is charging to let you dress up Kameo.

The Kameo Masquerade Pack is 200 points and includes 10 new costumes for Kameo. They include outfits from classic Rare titles. The Fright Warrior Pack is also 200 points and includes "fantastic and scary fright-themed costumes" for Kameo and her warriors.

While I understand that Microsoft is leaving it up to the publishers to decide what to charge for, I think they need to exercise some control because every time I see an pay-for-play add on pack that is essentially just a silly mod I partially blame Microsoft.

Kameo Downloads on the Way Very Soon [Active Win]

It's about time. Prodigious Gaming reports that Rare's Kameo will get its online co-op update. The information comes from the letters section of Rare's website. The response also says to expect some new maps for Perfect Dark Zero at the very least.

Kameo Online Co-Op Available Soon [Prodigious Gaming]
Rare: Scribes [Rare]

A few schoolgirls crowd and sneaker in the DS aisle, but the lanky guy in a 360 vest has plenty of space in which to work. He takes a Kameo disc from the plastic green pouch in his hand and slides it into the machine. Carefully, he places the clear case over the 360. He then locks down the kiosk and scribbles something in his notebook.

I feign flipping through this newest issue of the Famitsu 360 mag and watch Lanky go into the backroom. He puts the green case on the table, scribbles something in his notebook and stares into what I assume is space. That's unconfirmed, however.

He breezes by on his way back out. Pulls out his notebook again and scribbles something. It looks like he's checking inventory. He arranges the boxes. Then rearranges them. Then arranges them again.

"Pardon me, I was wondering if you were an employee of Microsoft or Bic Camera?"
" Microsoft."
"Oh really. What do you do?" I ask.
"I answer any questions customers might have. I handle posters, check the kiosks and change the promotional disks. Things like that."
"Are there other 360 reps in Kansai?"
"No. Just me."
His teeth are riddled with silver fillings.
"So, for the entire Kansai area, you are the only person to handle in store customers."
"Yes."
Wow.

(Please note: The Kansai area, which is comprised of Osaka, Kyoto and Kobe, accounts for 20 percent of Japan's total population.)

"What about Kantou?" I continue.
"There are two in Kantou. One in Nagoya. Another in Hokkaido."
"Five for the entire country?"
Lanky pauses, thinking for a moment.
"And there's one in Kyuushu."
Can't forget Kyuushu.
"So six."
"Yes, six."

We stand there awkwardly for a minute. I'm not sure if I should say, "Wow, six is a lot" or "Geez, that's not very many." Maybe, I should ask him if Microsoft has these in-store helpers at US outlets. I've never heard of that. Lanky seems refreshingly affable and friendly, more than willing to talk about upcoming, announced titles. A perfect ambassador.

"Is that an original Xbox?"
"Yes."
"Are they still being sold?"
"Not here, no."

I excuse myself and apologize for interrupting. He's got work to do and takes out his notebook. As I head towards the escalator, I turn to see Lanky scribbling and rearranging the boxes. Microsoft Japan winning one customer at a time.

Xbox Japan [Official Site]

A Microsoft mole tells us that the original (beta) version of Kameo featured a two player version that could be played over system link or Live. The mode was Co-op and apparently featured a different ending. Rumor has it that Rare is going to be putting out a free update for the game down the line that will add or unlock the feature.

Check out the four shots after the jump.

Of the four 360 games I received, one of my favorites was Kameo: Elements of Power. (PGR 3 is my top pick, but that's for another review.) This surprised me as much as I'm sure it's going to surprise you.

I had absolutely zero interest in the game through E3 and even leading up to the day I received a copy. I sort of saw it as another Bubsy: Too cute for its own good and not nearly enough play elements to keep me interested. Boy was I wrong.

The basic premise of the game is that you're a fairy of sorts that has the ability to morph into 10 different elemental warriors. Each warrior has special abilities and different types of attacks and you have to use them to solve puzzles and take down the bad guys.

The first thing I noticed about the game is that it is just stunningly beautiful. Microsoft is obviously using this game to show off the muscle-power of their 360. The game uses a sort of detailed animation that ends up almost looking like you're controlling very detailed action figures.

The backgrounds in the game are teeming with action from explosions and flying dragons to floating bits of dust or pollen. The overall effect is a feeling that you are more a part of the world than just playing around in front of an animated backdrop.

Another spectacular bit of graphic ingenuity allows you to see Kameo morph into your warrior of choice in a split-second, in the middle of a battle. I'm not talking about some mini cut-scene, you can actually morph as you play. It's as easy as jumping or attacking.

The controls taking a little getting used to, but once you master them they turn out to be the best way to use Kameo's unique abilities in combat.

To morph into a creature you push one of the colored buttons, a diagram floating in the top right corner shows you which button turns you into what. Attacking and special moves are controlled by the triggers or trigger combinations.

For example, if you're playing as Kameo pulling the right trigger lets you jump, pulling the left lets you hover and pulling both lets you do a flip kick. But if you are playing as the living rose plant Pummel Weed then pulling the right trigger lets deliver a right hook, pulling the left lets you pop someone with your left and pulling both lets you drop into the ground. In this mode you can then pull a trigger to deliver an upper cut or other special attack. Other warriors, like the armadillo-like Major Ruin, use the triggers to both attack and move in special ways.

As you play Kameo you can upgrade attacks and warriors, giving the game a bit of a Gauntlet feel to it at times.

And don't think this is just a game of graphics and button mashing, there quite an intricate plot involved, which I won't go into. I'd hate to ruin the experience for you. I'll just say it centers around Kameo's elemental powers.

Instead of just relying on awesome graphics and the morphing gimmick to churn out another action adventure game, Rare has managed to create a game that blends the best elements of action, adventure, puzzler and even platformer into one great experience.

I'd give this game 4 out of 5 stars.

The ever-informative Major Nelson points out that Kameo's official site is hosting some podcasts that will get gamers up to speed in the coming weeks before the game is playable (it could be showing up in stores any day now, according to a variety of reports, you'll just have to wait to play it until Nov. 22, unless you're Crecente). The podcasting sounds to me like I would expect the Harry Potter books on tape to sound, with a British voiceover and the sounds of the world in the background with some light music scoring. Whatever, it's a nice backstory supplemental for those dying to get into the world of Kameo.

You may not be able to land an Xbox 360 today (or at launch), but you should be able to run down to your local game store to pick up 360 accessories and a copy of Kameo. Which is worse, getting a 360 without any games or getting a 360 game without the console?

[Thanks Ryan]