Nintendo Is Star of E3 Show as Rivals Scramble to Catch Up
The annual Electronic Entertainment Expo, commonly known as E3, takes place this week in Santa Monica, Calif. The summit, which in the past has had tens-of-thousands of participants, was scaled back this year and is an opportunity for game makers and industry leaders to announce their latest technology and products.
Nintendo's competitors, meanwhile, are playing an expensive round of brinksmanship with each other to win back some of the attention. This week Sony cut the price on its PlayStation 3 console by $100. Microsoft recently announced an expanded warranty program for the Xbox 360 console, which could cost the company more than $1 billion.
Neither Microsoft nor Sony is making money in the game industry, since both are selling their consoles at below cost in their attempt to boost interest. Nintendo, meanwhile, which introduced the $249 Wii six months ago, can barely keep up with demand for the profitable product.
Microsoft and Sony even scaled back their annual parties at the E3 show. In years past, Microsoft held events at such glamorous Los Angeles venues as the Orpheum Theater, the Shrine Auditorium and Grauman's Chinese Theater. This year, its event was at a Santa Monica high school. Sony, which previously held events that featured such concert acts as Macy Gray and Beck, settled for a low-key sushi shindig this year.
