Companies like Microsoft, Sony and Nintendo are going to unveil new game titles, and also their projections for the year, which seems to have a dipping graph in the wake of new gaming consoles from the three major players. History has shown that each such move has resulted in a freeze in the market, and the industry is going to suffer a decline of 5% in terms of game sales this year.
"Whenever we go through these transition periods -- there’s a pretty well-documented history of this -- it tends to freeze the market," said Doug Lowenstein, president of the Entertainment Software Association, which organizes E3, as the convention is commonly called.
This year Japan’s two game-hardware powerhouses will occupy center stage. Sony Corp. and Nintendo Co. for the first time will show functioning versions of their new consoles -- called PlayStation 3 and Wii, respectively -- which are expected on store shelves by this fall.
Nintendo’s Wii might become one of the trendsetters of the year, with the company doing away with traditional controller and offering gamers a tv-remote kind of control which can be used with one hand and senses motion, which means user can wave the remote around to control the action on the screen. The company announced the new name for its console just a week back, and has faced a lot of criticism from media and gaming community alike on the choice of name, "Wii" in place of Revolution.
Sony is also expected to unveil a more sophisticated EyeToy camera for PS3 to maintain its ownership of the casual gaming audience and aid new experiences such as the espionage adventure Eyedentify.
Other big PS3 titles expected at E3 include Metal Gear Solid 4, Killzone 2, Motor Storm, Resident Evil 5 and perhaps the next Grand Theft Auto.
Microsoft has already established its Xbox 360 console, and it will be difficult for others to catch up in spite of their claims that their consoles are superior to Xbox. Microsoft faced severe shortages when it launched the console last fall.
Publishers such as Electronic Arts are also betting heavily on PC during the difficult transition between current and next-generation consoles.