E3: hardware, software in spotlight

[HenryTo]

Don't forget that MSFT will unveil the Xbox2 by the end of this year. I believe the processor will be a tri-core PowerPC chip processor. It will also offer support for High Definition television sets. Very important given that the gaming industry is now bigger than the movie industry.
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E3: hardware, software in spotlight
Electronic Entertainment Exposition beyond hardware
By Scott Banerjee, MarketWatch
Last Update: 12:01 AM ET May 16, 2005


SAN FRANCISCO (MarketWatch) -- The annual video game industry conference that takes place in Los Angeles this week will focus heavily on next-generation console announcements from Microsoft, Sony and Nintendo, while new software releases battle for the spotlight.

On Thursday, Microsoft (MSFT: news, chart, profile) pre-empted the usual buzz surrounding E3 by splashing details of its Xbox 360 game console during a nationally televised special on MTV. Microsoft's strategy is to be "first to market" with its new console, hitting the shelves in time for the 2005 holiday season and potentially usurping the Sony and the PlayStation's console hegemony. See full story.

With most Xbox 360 hardware details out of the bag, the move sets the tone for this year's convention, which traditionally serves more as a platform to trumpet video game publisher's software slates for the coming year.

Analysts expect Sony (SNE: news, chart, profile) , which is set to hold its press conference Monday afternoon, to counter Microsoft's strategy by announcing new products for its PlayStation Portable (PSP) handheld device, which represents the newest major stream for video game publishers.

Since few expect Sony to launch the next version of its PlayStation before the end of the year, they could announce new tools and chipsets that make developing for their next-generation platform easier -- all the while prolonging the official transition to its next-generation console due out in 2006.

Microsoft holds an official press conference Monday evening, where it is expected to further demonstrate the power of its new console, as well as detail the games slate for the current generation Xbox.

On Tuesday Nintendo Ltd. (NTDOY: news, chart, profile) holds its official press conference, bringing a wild-card element to event. The Japanese company is expected to reveal details of its next-generation "Revolution" console, which will be less of a multi-media device than those promised by Microsoft and Sony. The company is seen focusing on the console's improved game-play of its first party titles such as the stalwart "The Legend of Zelda."

Games, games and more games

E3 opens it doors after NPD Group after reported on Thursday that its U.S. video games sales were up 9% to $342 million in April, despite a 6% falloff in hardware sales. Top sellers for the month were Take-Two's "Midnight Club 3: Dub Edition" and Activision's "Doom 3."

While video game publishers will display beta versions of souped-up video games for the next generation consoles -- including graphical leaps that take advantage of HDTV and approach the photorealism of the film industry - the bulk of the title on display will focus on the current generation.

Electronic Arts

Industry leader Electronic Arts (ERTS: news, chart, profile) is expected to preview new games from well-traveled franchises such as "Need For Speed," "The Sims," "Battlefield" and "Burnout."

Additionally, the Redwood City, Calif.-based behemoth will show "SPORE," the next project from The Sims creator Will Wright's studio.

In an attempt to increase its share of the first-person shooter category, EA is showing its new "BLACK" title behind closed doors.

The emerging theme of games based on licensed entertainment properties brings a version of Francis Ford Coppola's "The Godfather" to Xbox 360 and current consoles. EA will also offer demos of titles such as "Batman Begins," "From Russia with Love," "Harry Potter and the Goblet of Fire" and "Marvel Nemesis: Rise of the Imperfects."

And of course, the EA will have versions of its "NCAA Football," "Madden NFL," and "NASCAR" on hand. In a first for EA, the company will have eight new mobile game titles, including adaptations of flagship franchises "FIFA," "Madden," "Tiger Woods," "The Sims" and "Need for Speed."

Ahead of E3, Electronic Arts announced it currently has 25 videogames for next generation consoles in development. The line-up is to be announced on Wednesday.

Take-Two Interactive Software

The company behind the smash-hit "Grand Theft Auto: San Andreas" has been quiet about its plans for a next-generation version of the title, though Take-Two (TTWO: news, chart, profile) has announced its will come to market with a new version for the PSP.

This year, it introduces "Bully," a game in which players assume the role of a schoolyard bully at a make-believe reform school called Bullworth Academy.

In keeping with the company's bad boy image, its 2K games studio announced "Snow," a strategy game based on narcotics trade. Take-Two also comes armed with the fourth installment of its "Conflict" series called "Global Terror."

The New York-based publisher has taken efforts to create games based on licensed film classics like "The Warriors" and "Reservoir Dogs."

THQ Inc.

THQ's (THQI: news, chart, profile) original 2005 titles will include names like driving-game "Juiced," and the sequels to role-playing game "Destroy All Humans!" and action title "Full Spectrum Warrior."

Other titles on display will include "Warhammer 40,000 Dawn of War -- Winter Assault," "MotoGP 3," "Tak: The Great Juju Challenge," and licensed adaptations from Pixar including "SpongeBob SquarePants: Lights, Camera, PANTS!" and "The Incredibles: Rise of the Underminer."

Activision Inc.

The Santa Monica-based publisher (ATVI: news, chart, profile) is expected to preview title like "Fantastic Four" and "Madagascar" as well as sequels to "Ultimate Spider-Man," "Shrek Superslam," "Call of Duty 2,"and "True Crime 2."

Ahead of the show, Activision announced it is developing 3 titles for Xbox 360, including "Call of Duty," "Tony Hawk's American Wasteland," and a yet-to-be announced title from the Neversoft Entertainment Studio.

Majesco Entertainment, Ubisoft

Majesco Entertainment, which recently changed its ticker on the Nasdaq exchange, has also been active in the licensing field, creating titles "Taxi Driver" and "Jaws Unleashed." The Edison, NJ-based publisher (COOL: news, chart, profile) is also showcasing "Aeon Flux."

Ubisoft Entertainment (UBSFF: news, chart, profile) , which is 20% owned by Electronic Arts, is expected to show a title based on the "King Kong" remake due out in theatres this holiday.

[HenryTo]

A more detailed look at Sony's Playstation 3 - for folks who are interested:

http://www.anandtech.com/tradeshows/showdoc.aspx?i=2417

[HenryTo]

Sony's response to MSFT's Xbox2. Notable Quote:

Sony said the PS3 would have twice the processing speed of the Xbox 360, the console Microsoft is expected to release in November with up to 40 software titles.

"Sony's console looked like a next-generation game machine and in comparison to the graphics of the PS3, Microsoft's looked like Xbox 1.5," said Takashi Oya, analyst at Deutsche Bank.
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Game Expo-Sony to launch PlayStation 3 in 2006
Tue May 17, 2005 01:24 AM ET

By Daisuke Wakabayashi and Yukari Iwatani Kane

LOS ANGELES, May 16 (Reuters) - Sony Corp. (6758.T: Quote, Profile, Research) unveiled its PlayStation 3 video game console on Monday and pledged that its high-definition graphics and broadband connectivity would ensure its spot atop the $10 billion a year video game industry.

The electronics and entertainment conglomerate said the new machine, due for launch in the spring of 2006, will feature a graphics chip with 300 million transistors.

That is more than the combined processing power of the current-generation Microsoft Corp. (MSFT.O: Quote, Profile, Research) Xbox, Nintendo Co. Ltd. (7974.OS: Quote, Profile, Research) Game Cube and the PlayStation 2 combined.

Having led the worldwide console gaming market for the last decade, Sony is counting on the new machine to dominate in all aspects of networked home entertainment -- games, movies, music and more.

"PS3 truly is the system to be placed in the center of living rooms in homes around the world," Ken Kutaragi, the head of Sony's game unit, said at a press event ahead of the start of the E3 annual industry trade show.

Kutaragi, known as 'the father of the PlayStation', beamed as he stood next to a display of the curved PS3 offered in three colors -- black, silver and white -- and a boomerang-shaped game controller.

Sony said the PS3 would have twice the processing speed of the Xbox 360, the console Microsoft is expected to release in November with up to 40 software titles.

"Sony's console looked like a next-generation game machine and in comparison to the graphics of the PS3, Microsoft's looked like Xbox 1.5," said Takashi Oya, analyst at Deutsche Bank.

But speed in games is often as much a function of the way the games are written as it is the capacity of the hardware, and Sony's drive to leapfrog the Xbox 360 technology comes as the Japanese electronics giant concedes what could be a valuable several-month head start to Microsoft.

CELL-POWERED

The PS3 is powered by the "Cell" chip, which aims to be significantly more powerful than Intel Corp.'s (INTC.O: Quote, Profile, Research) Pentium 4, the most common chips for today's PCs, and any other existing game machine processors.

Sony developed the microprocessor with International Business Machines Corp. (IBM.N: Quote, Profile, Research) and Toshiba Corp. (6502.T: Quote, Profile, Research) and its super-powerful "RSX" graphics chip with Nvidia Corp. (NVDA.O: Quote, Profile, Research) .

With a built-in Ethernet port for high-speed Internet access, PlayStation 3 allows gamers to surf the Web while playing games.

"In addition to games, PS3 will, of course, be able to perform non-gaming functions such as digital music, movies and photographs even during game play," said Kutaragi.

The PS3 will feature Blu-ray, a next-generation DVD format backed by Sony. Blue-ray discs have far more capacity than current discs but their commercial development has been bogged down in industry standards debates reminiscent of Sony's lost battle in the 80's to promote its Betamax videotape standard.

It supports the simultaneous use of up to seven control pads, which can connect wirelessly via the Bluetooth standard to the console.

A patent suit over the PlayStation 2's controllers, in which Sony was ordered to halt U.S. sales of its consoles and pay nearly $91 million infringement damages to a California company, would have no impact on PS3, analysts said, because the new machine was so completely different from the old one.

Sony has said it plans to appeal the March decision.

PS3 also features wireless Internet access, a removable small hard drive, and will be compatible with games from the earlier PlayStations. The console is about the size of a standard mid-size laptop computer.

Sony's PS2 seized control of the current generation of game consoles by beating Microsoft and Nintendo to market by about a year, winning over many game publishers to secure exclusive rights or initial releases to popular titles.

Game publishers Electronic Arts Inc. (ERTS.O: Quote, Profile, Research) and Square Enix Co. Ltd. (9684.T: Quote, Profile, Research) both said they plan to fully support PS3. EA is the world's largest video game publisher and its full support is crucial to the success of any console.

A number of details about the PS3 are yet to be announced, including the price of the console and the number of games that will be available at launch. (Additional reporting by Ben Berkowitz)