This year's downscaled E3 video game expo drew about 4,500 gamemakers, analysts, retailers and journalists to L.A. last week — less than a tenth of E3's size two years ago — even as the industry grew from $10.5 billion in 2005 to $18 billion in 2007.
And the inviting nature of Nintendo's Wii and games such as Guitar Hero have transformed the market.
"No longer is there a stereotypical gamer," says Michael Gallagher of the Entertainment Software Association, which runs E3.
Displays targeted new gamers as heavily as hard-core players. USA TODAY reviews the highlights of E3 2008.
Xbox 360: Singing (and acting) along
Several games unveiled by Microsoft cater to the casual crowd, including the karaoke game Lips, which comes with a wireless, motion-sensitive mike, and You're in the Movies, which uses the Xbox webcam to insert players into a modern spin on charades. (Both due later this year, no prices set for games unless mentioned.)
A refurbished Xbox 360 "dashboard," due this fall, will deliver a cleaner, Windows Vista look to the system's interface. And players can create realistic avatars (observers compare them to the "Miis" used on Wii) that will show up in new games such as the card game Uno Rush, out later this year. With that update, Xbox Live Gold level subscribers ($50 annually) who also belong to Netflix will be able to watch many of their Netflix requests — at least 10,000 of the service's catalog of 100,000 DVDs — over the Xbox 360 online service.
Also this fall, a new Primetime TV channel will let Xbox Live members compete in (and watch) live game shows for real prizes, the first being a version of NBC's 1 vs. 100. "A totally new Xbox experience will be delivered through the magic of software," said Microsoft's Don Mattrick.
And the entry-level price, for an Xbox 360 with a 20-gigabyte hard drive, dropped $50 to $299; a new model with a larger hard drive (60GB) will be out next month for $349.
Wii: Earning a resort vacation
Nintendo aims to fuel the frenetic buzz around the Wii, which has sold 10.9 million — and has overtaken the Xbox 360 (10.5 million) — according to June data just out from The NPD Group. Last month, Wii became the system to hit the 10 million mark the fastest, surpassing the previous-generation PlayStation 2 by about month.
A sequel to Wii Sports, Wii Sports Resort (due spring 2009) will have several new activities including a wave rider game, sword fighting and Disc Dog, in which you toss a Frisbee and your cute furry friend chases and catches it. Included is a new Motion Plus accessory that more accurately interprets arm, hand and wrist movement.
Social and family play is also part of Animal Crossing: City Folk (due later this year), a cartoony simulation that lets you build a home, create goods, be part of a community and connect with others using a WiiSpeak conference-call-styled microphone.
Mario creator Shigeru Miyamoto demonstrated Wii Music (out later this year), which uses the remote, nunchuck and Wii Fit balance board to virtually play drums, horns, guitar, violin and even cowbell. Up to four players can join up to play jazz, rock and other genres. "There is no need to closely follow any music notes or rhythm guide to play," Miyamoto said. "All that you have to do is hold the remote and move your hands like you would playing a real instrument."
PlayStation 3: Action and oddities