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Edition: U.S. Article Comments (0) Editor's Choice China paper warns Google may pay price for hacking claims Four suspected U.S. cases of E.coli linked to Germany U.N. says climate talks will miss Kyoto deadline Gas to pass coal in 15 years, equal oil by 2035: IEA Hackers attack Nintendo's servers in United States Cancer costs put treatments out of reach for many Facebook blunder leads crowd to teen's birthday Comment: Activision’s brainy toys take over Video: Tiny eco-home demonstrates big energy savings Slideshow: Marijuana merchandise Follow Reuters Facebook Twitter RSS YouTube Read Five U.S. troops killed in Iraq attack 7:57am EDT Missouri River levee breach near Iowa town seen inevitable 2:23pm EDT China paper warns Google may pay price for hacking claims 7:42am EDT Expert links samples from Casey Anthony's car to human decay 2:53pm EDT UPDATE 1-Cancer costs put treatments out of reach for many 1:46pm EDT Discussed 78 150 economists back U.S. Republicans in debt fight 67 ”The world is getting warmer”: Romney 65 Moody’s sounds alarm over U.S. debt limit and deficits Watched Transsexual model takes Rio Fri, Jun 3 2011 Latvian blondes prove they have more fun Thu, Jun 2 2011 Bodypainters apply their skill Mon, Jul 19 2010 Videogame heavyweights seek fresh start at powwow Tweet Share this Email Print Factbox A look at the $65 billion video games industry 2:22pm EDT Analysis & Opinion Activision’s brainy toys take over EA cuts out middleman, launches video game download service Related Topics Technology » Media » The new game Kinect Star Wars is shown on screen at the Microsoft E3 XBOX 360 media briefing in Los Angeles, California June 6, 2011. Credit: Reuters/Fred Prouser By Liana B. Baker NEW YORK | Mon Jun 6, 2011 2:22pm EDT NEW YORK (Reuters) - Comeback stories will be the unofficial plotline of next week's Electronic Entertainment Expo, the annual event where the videogame industry shows off a dizzying display of new games, consoles and assorted gadgets. About 45,000 reporters, industry types and analysts will converge on Los Angeles for the E3 conference, sprawled across a space the size of eight U.S. football fields. This year's conference, running June 7-9, comes as the industry tries to cope with the rapid growth of online and mobile gaming -- and as two of its stalwarts find themselves on unsteady footing. Nintendo, once a leader in hardware sales, is struggling to win users from Microsoft Corp and Sony Corp and is coming off a disappointing launch of its 3DS handheld device. In a bid to return to the top, it will be unveiling a new video game console designed for the home. Sony, meanwhile, will try to erase the black eye caused by a data breach that exposed the personal information of more than 100 million of its video game users. Both Japanese companies will be hosting press conferences ahead of Tuesday's official start of E3. Nintendo so far has released few details about its new device, but it is widely expected to feature HD graphics, a special controller, motion sensors and technology that allows it to run old Nintendo games. The introduction of a new home console -- the first in five years -- could jump-start the struggling $65 billion global video game business, industry executives said. "I see the coming of a new Nintendo device as a positive for the industry because it's pushing everybody to perform," said Yves Guillemot, chief executive of French video game publisher Ubisoft. "It is going to push Sony and Microsoft to act," he said. Sony launched its PlayStation 3 home console in November 2006 while Microsoft's Xbox 360 console, launched in November 2005. Both consoles have been selling steadily and neither hardware maker has said they have immediate plans for new systems, unlike Nintendo. To refreshen their consoles, Sony and Microsoft each introduced new motion controllers that let users watch themselves play sports and dance on their TV screens. SONY MOVES ON Sony faces a different sort of hurdle following a major data hacking incident in April. Since the attack, critics have slammed Sony for failing to protect its networks and then waiting up to a week before alerting its customers. Sony's online gaming system, the PlayStation Network, was offline for about three weeks and some parts of it are still not working in certain countries. There is little chance Sony can avoid fallout from the crisis at E3. "Sony's presentation is going to have to deal with mea culpa of the hacking and reassuring consumers that their information is safe," said MKM Partners analyst Eric Handler. "You can't just brush it under the rug." When it manages to turn talk away from the attack, Sony will focus on plugging its not-yet-released handheld device, called the NGP, or Next Generation Portable. The sleek 5-inch touchscreen device has Wi-Fi and 3G network connectivity, and front and rear-facing cameras. Sony is expected to release details of the NGP's pricing, launch date and games at the conference. "We think our security is as strong as ever," said John Koller, Sony's director of Hardware Marketing. "Consumers are going to come back in droves and frankly we have strong offerings at E3." ONLINE GAMING Another dominating topic at E3 will be everything and anything having to do with online gaming -- the wide range of games played over the Internet, including on Facebook, via home computers, consoles, and on mobile devices. Online and digital games will generate sales of $18 billion this year, up 15 percent from a year ago, according to DFC Intelligence. Ahead of the show, Electronic Arts Inc said on Friday it was launching an online games service called "Origin," which lets consumers buy and download PC games directly from the publisher online, as well as track all of their games across different platforms. The company's high-profile titles "Battlefield 3" and "FIFA 12" will be available on the service when they come out. EA said the new service will be the only way to download one of its most hotly anticipated games "Star Wars: the Old Republic" due out later this year. Given the success of upstarts like Zynga, simpler social and mobile games can no longer be ignored by E3, an event that typically has been a showcase for the industry's major players. This year, a number of the traditional game publishers are expected to make announcements about social or mobile games. "This new tendency of having more social games that are played with friends and family will tremendously impact the existing business," said Ubisoft's CEO Guillemot. But some parts of E3 cannot be predicted, said Mike Gallagher, chief executive of the Entertainment Software Association, the trade group that puts on the show. Technology Media Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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