USA: E3, the video game convention, seen returning to glitz

Record ID: 577277

  • Title: USA: E3, the video game convention, seen returning to glitz
  • Date: 4th June 2009
  • Summary: BEATLES ALBUM COVER SIGN ATTENDEES SINGING ALONG TO "BEATLES ROCKBAND" GAME
  • Embargoed: 19th June 2009 13:00
  • Keywords:
  • Location: Usa
  • Country: USA
  • Topics: Arts / Culture / Entertainment / Showbiz,Science / Technology
  • Reuters ID: LVA3D5DCZPTAN6B3PERUCKAM7FRP
  • Story Text: The interactive videogame industry's biggest convention has convened in Los Angeles returning to its glitzy past with big presentations from industry giants like Microsoft and Sony.
    The interactive videogame industry's biggest convention has convened in Los Angeles returning to its glitzy past, but on the heels of weak sales and the slumping economy, the future of this fun and games business is no laughing matter.
    A wave of fitness games, an expanded lineup for Nintendo's popular Wii console and, possibly, hardware price cuts, are all expected to be major themes at the Electronic Entertainment Expo, or E3.
    To be sure, the industry is doing well, even as the economy shrinks and unemployment in the United States swells. Analysts have pegged videogame sales for the fiscal year ending in March at $28.7 billion, up 13 percent, and bigger than the $27 billion movie business.
    The president of the Academy of Interactive Arts & Sciences, Joseph Olin says that the gaming industry will adapt to the changing market.
    "The challenging economy that is on a global basis at this point, does effect the entertainment industry, usually not as much," said Olin. "Even though we've had some soft numbers in the past 30 days in America, I think in reality we have some unprecedented growth in the number of players in America. We have unprecedented number of players playing more games than ever before and I think that fuels the gaming makers to want to make more opportunities for these people to play."
    The challenge is to keep growing as consumers think twice about discretionary spending, particularly on game consoles that cost up to $500 and top games priced at about $60.
    April U.S. sales of videogames fell 17 percent, after sliding 23 percent in March, according to research group NPD. The decline is somewhat skewed by a tough comparison, since two of the biggest games of 2008 were launched at the same time one year ago.
    But don't cry for the industry, whose global sales -- including hardware -- could top $98 billion this year and $110 billion in 2010.
    In addition to a host of new videogames from the likes of Electronic Arts Inc, Activision Blizzard Inc, and Take-Two Interactive Software Inc, the crowd of 40,000 game enthusiasts were treated to an updated portable game player -- call "PSP GO" -- from Sony, and an accessory for Microsoft Corp's Xbox 360 that senses motion similar to remotes made for Nintendo's Wii remotes, allowing people to play controller-free.
    Al de Leon, a public relations manager at Sony, said that the PSP Go will appeal to the people who love getting their hands on the latest gadget.
    "A lot of the consumers, particularly gamers, are on the cutting edge of technology and they're used to consuming digital media whether it's movies or music or photos," said de Leon. "So games is really the next frontier for that. We believe PSP Go will get us there because it's a fully, 100 percent, digital product. No disc drive for the content."
    Nintendo, whose Wii console has sold more than 50 million units and dominated the market in recent years, is likely to unveil new versions of its own bankable franchises, including Zelda, and Wii Fit, as well as more games from third-party developers, and a new peripheral.
    As Nintendo has shown, video games can appeal to all types of people. Many of the companies are cashing in on the youth market by creating easy-to-play games for kids. Disney's blockbuster franchises of Hannah Montana and The Jonas Brothers each have their own game made for Nintendo's portable player the DS.
    MTV Games and Harmonix have teamed up to make a game that will likely appeal to all ages of gamers. The Beatles Rockband allows players to be their favorite Beatle and play dozens of classics Beatles songs. Microsoft pulled out all the stops to promote the new game for Xbox. The two surviving Beatles, Paul McCartney and Ringo Starr made an appearance at the opening press conference.
    The Beatles are not the only celebrities to attend E3. Steven Speilberg was touring the Microsoft Xbox exhibit and speaking with the Microsoft Xbox CEO. Also on hand to promote his latest game and controller, skateboarding legend Tony Hawk. He took the stage to demo his latest game.
    The show, which once drew crowds estimated as big as 80,000, downsized to about 5,000 in the last two years, seeking a less stressful, more personal focus with industry insiders. The idea was a bust. This year the show was opened up to gaming fans once again. Crowds are expected to reach about 40,000.
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