We fully expected Dragon's Lair to show up on XBLA sooner or later, so that PEGI listing wasn't much of a surprise. However, publisher Digital Leisure managed to surprise us anyway -- with Kinect support.

You can play Dragon's Lair normally, or you can respond to on-screen prompts with the correct motion. Examples shown in screens include jumping away from a crumbling floor or reaching up to grab a rope.

That makes Dragon's Lair an unlikely technological trailblazer: according to PlayXBLA, it'll be the first XBLA game to support both the Kinect and the traditional controller. Assuming it arrives before Steel Battalion, of course.

If you're still trying to finish the fight against the Reapers, the Microsoft Store is offering a pretty sweet deal on Mass Effect 3 for Xbox 360. While the game is listed there for $59.99, adding it to your shopping cart reveals a much cheaper price: $39.99, complete with free shipping.

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With the HBO Go app for Xbox just weeks away, HBO has released a teaser. The clip reveals the app's required Kinect functionality, which unsurprisingly includes gesture and voice control. It sounds like a great idea, until you realize you'll only use it once. "Xbox, Boardwalk Empire, play, forever."

Having held the top NPD spot for the past 14 months straight -- and with the introduction of Kinect -- the old Xbox 360 still has some life in it yet. "For us, 2012 is all about Xbox 360," Xbox spokesperson and Group Manager of PR David Dennis told Bloomberg. "There will be no talk of new Xbox hardware at E3 or anytime soon."

A few sources close to news outlet Bloomberg insist that Microsoft will introduce a new console in 2013 at the earliest. Next year's E3 could hold an unveiling of the Xbox 360 successor, says the report, with a potential same-year launch to follow. Now doesn't that sound familiar?

[Note: Image taken from our Microsoft E3 2011 keynote liveblog.]

The Gunstringer is bringing the heat to the West with its new DLC installment, El Diablo's 'Merican Adventure, available now on Xbox Live for 240 Microsoft Points. The 'Merican Adventure has players inhabit the body of El Diablo, as is suggested by the title, to hunt down his perfect pinup queen through four levels.

The release of El Diablo's 'Merican Adventure in part celebrates The Gunstringer's launch on Xbox's Games on Demand, where it's currently holding other titles at gunpoint for $30.

Gallery: The Gunstringer - El Diablo's 'Merican Adventure DLC

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We've officially turned on the theme song to Welcome Back, Kotter and started growing a lustrous mustache in honor of Phil Harrison's return to Game Industry Executiveland. This morning, reports from Europe indicated that Harrison would head to Microsoft -- Microsoft clarified the news later, which named him corporate vice president of Interactive Entertainment Business "with an emphasis on growing the division's European business."

Microsoft corporate vice president of Studios Phil Spencer welcomed Harrison in a press release. "We are honored to have Phil join a team that boasts a wealth of talent from across the industry," Spencer said. Harrison is charged with "overseeing UK-based developers Lionhead Studios, Soho Productions and Rare Ltd.," a role he'll likely warm to quickly given past work as head of worldwide studios for Sony Computer Entertainment.

Harrison's most recent employer is game industry venture capital firm London Venture Partners, where he served as general partner. He continues on as "special advisor." Harrison will not be replacing former Microsoft Studios Europe head Peter Molyneux (who recently left Microsoft), though he will be overseeing Lionhead. Molyneux's role at Lionhead as studio manager is currently occupied by COO Mark Webley, according to Microsoft.

Update: Microsoft announced Harrison's appointment this morning to corporate vice president of Microsoft's "Interactive Entertainment Business" arm, with a focus on European markets. See the full presser just below the jump.

[Image credit: Flickr user 'jontintinjordan']

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Ahead of the NPD officially revealing its February numbers, Microsoft is already tooting its own horn. The console manufacturer claims to have sold 426,000 consoles in February, more than any other console. That makes for 14 consecutive months with the Xbox 360 maintaining the top sales position among consoles. Microsoft also notes that the console has maintained more than a 40 percent market share in the current generation of consoles for 12 straight months.

Additionally, consumer spending on hardware, software and accessories bested other consoles as well, totaling $383 million. According to Joystiq's resident financial analyst, the figure is "a lot." We'll have complete NPD numbers shortly.

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Fabled game developer Peter Molyneux has left Microsoft and Lionhead Studios for startup 22 Cans. In a statement to Kotaku, the creative lead of Microsoft Studios Europe said he will conclude his work on the latest Fable before going off on the next great adventure.

"It is with mixed emotions that I made the decision to leave Microsoft and Lionhead Studios, the company that I co-founded in 1997, at the conclusion of development of Fable: The Journey," Molyneux said in the statement. "I remain extremely passionate and proud of the people, products and experiences that we created."

Molyneux expressed the departure was amicable and Microsoft noted the ever-quotable developer "has made an indelible mark on the games industry and we wish him all the best of luck in his future endeavors."