E3 2010 Industry Report

The E3 Expo is a convention and tradeshow for computers, video games and related products. The convention, now in its fifteenth year,  took place at the Los Angeles Convention Centre from June 15-17. Owned by the Entertainment Software Association, the goal of the expo has always been to serve the needs of exhibitors and industry companies and to publish and create dynamic video game opportunities on consoles, mobile and computers.

There was a lot of publicity and coverage surrounding peripherals and after-market products prior to E3 this year. This year's expo was more focused on the inclusion of the casual gamer market, evident by the products that were being showcased such as Kinect, Move, 3DS and the Playstation Plus.

A number of emerging trends were well received at this year's E3, and their potential implication bodes well for the future of the industry.

The following is a summary of some of the major products, brands and news from the event.

Sony
To capitalize on Sony's line of 3D televisions, the company spearheaded a campaign to increase the catalogue of 3D games. The 3D gaming industry is younger than the 3D film industry. Sony's commitment to the technology so early in its shelf life shows the direction the company hopes to take in the coming months.

Sony has created a new peripheral for the Playstation 3; The Move, Sony's answer to a slipping casual-gamer fan base. The peripheral functions as a digital hand.  It allows you to interact with objects on the screen as you move your hand in real time.  Sony's long-term goal is to pair the Move with 3D gaming will result in an industry first when they join forces later this year, or early 2011.

Sony has been in the midst of discussion to bring a paid-service to the PSN (Playstation Network) since the system has been online. Playstation Plus, a subscription-based service for Playstation Network members, provides monthly free games, discounts from the Playstation Store, full game demos, as well as the promise of advanced-beta testing and cross game voice support.

3D gaming technology, a hand-held peripheral and a non-mandatory, paid service has embodied Sony's commitment to expansion this year.

This year, Sony has been able to approach different demographics of gamers and give them reasons to invest in Playstation. By having a platform that supports hardcore, casual and the in-between gamers, Sony is working towards a monopoly over the industry that lasts at least until the next generation of consoles come into play.

Microsoft
Microsoft revealed their new peripheral, Kinect with flourish. Cirque Du Soleil contortionists took to the front stage. A lengthy display followed. The entire performance was to unveil the Kinect and capture the moment. It was certainly one of the most interesting events at this year's Expo.

During the Kinect press conference, there were several games showcased which spoke against Microsoft's core demographic of action and adventure followers. As soon as the big names in the first person shooter categories were announced, the conference opened up to the casual market, showcasing the new line of dance, sport and pet-simulation games coming to the Kinect.

After the press conference, as attendees were getting ready to leave, a new Xbox model was announced, a new slimmer Xbox that was currently being shipped to stores and everyone in attendance was getting one for free.

Microsoft is now setting their sites on a more casual market. While current fanatics of Microsoft and Xbox may see this as negative, the potential for a casual gaming system with full HD and online capabilities is unprecedented.  

Nintendo
Aside from some technical difficulties preventing Shigeru Miyamoto from highlighting the new Legend of Zelda game, the unveiling of the 3DS, a 3D hand-held gaming device that you didn't need glasses to play, surpassed critical expectation. Even though the 3DS was shown directly following the technical delays with Zelda, everyone in attendance was considering the potential of a true personal 3D experience.  The technology alone was an important announcement, but Nintendo also announced upcoming remakes of numerous classic games from their catalogue for both the 3DS and the Wii.

The implications that a hand-held 3D console could have on the industry are unknown. Giving fans a new Golden Eye, Zelda, NBA Jam, Donkey Kong and Bomber Man are more than enough reasons for Nintendo to stay firmly at the top of the casual and family gaming market in the near future.

Nintendo will continue to draw games that look for familiar fun activities; by not over stepping their market, they can direct their intention onto their loyal customers.

The mobile gaming market has yet to achieve penetration in the E3 Expo, the only notable news about mobile gaming was the announcement of two or three interesting titles, including Sonic 4 and Castlevania Puzzle: Encore of the Night.

This is a trend that is likely to change in the coming years. As Nintendo and Sony continue to integrate themselves into the family and casual markets, it is a possibility we may even see licensed games on mobile phones in the future.
Some other notable companies at the event were:

• Bethesda- They continue a trend of being tightlipped and secretive this year by being one of the only exhibitors to offer an exclusively private-booth.Unless you had a pre-scheduled meeting, you had no idea what you were missing. But they still had displays for RAGE, Brink and Fallout: New Vegas. Bethesda seems to be relying on hype and word-of-mouth tactics to promote their new games at this point in their cycle.

• Disney Interactive- They set up a large display for the new Tron: Evolution game, turning a hall way into a glowing blue walkway that led towards hands-on opportunities with Epic Mickey.  There were even live cartoon artists drawing authentic Mickey sketches while players watched. To top it off, there was a three storey wooden tower that reached to the top of the Conference Centre. At the top was the Toy Story 3 demo room.

• THQ- they created an atmosphere in their booth this year. Robots from Warhammer patrolled the perimeter of the booth, giant asteroids lay all around to simulate the Martian terrain and strange figures with rifles were seen all around. Red Faction: Armageddon and Homefront brought an interesting feel to the booth, making it stand out in a crowd

Conclusion and Recommendations

I would recommend this event to any Ontario companies that are interested in emerging trends and networking opportunities. An Ontario company that was close to completion in their development cycle would get the most out of showcasing their projects at E3, due to the large number of competing organizations in the space.

E3 2010 key findings and focuses:

• A strong push for new technology
• Embracing motion controls across all platforms
• A smaller number of original games compared to the numerous sequels
• Each console is working to find their place in the market
• Mobile games are slowly beginning to take on a larger role in the game community

Ontario-based companies in the video game industry have a lot to gain by attending conferences like E3 due to the conference facilitating:

• Product expansion
• Producer/Developer relations
• Media coverage