Reuters – Lenovo, the world’s No. 4 PC maker, has set up a unit to develop a video game console for the China market, a newspaper reported on Friday, pitting it against rivals such as Microsoft and Sony.

AP – Britain’s defense secretary says a video game that allows players to adopt the role of the Taliban is a “tasteless product” and is calling on retailers to show their support for troops by not selling it.

AP – U.S. retail sales of video game systems, software and accessories slipped 1 percent in July according to market researcher NPD Group. A lackluster summer game launch schedule partly offset strong sales of the Xbox 360.

AP – The Entertainment Software Association, a trade group for video game companies, spent $1.1 million during the second quarter to lobby on the regulation of video game content, First Amendment protection, parental control technology and other issues, according to a recent disclosure report.

AP – Market researcher NPD Group says U.S.