E3: Do or Die for Nintendo, Sony, and Microsoft
UPDATE: Microsoft at E3: Forget Games - Hey, Here's Live TV on Your XBox!
Sony at E3: Its New Vita Handheld May Make Nintendo Cry
Nintendo at E3: Awkward Wii U Mates the Worst of Tablets and Consoles
The Electronic Entertainment Expo begins today with Nintendo (NTYDO), Sony (SNE), and Microsoft (MSFT) all in precarious positions. The three console makers have a lot to lose, which makes this year's E3 more important than any in recent memory.
Nintendo showing Wii 2 for 2012
At E3, Nintendo has to show it still matters. The Wii was once the hottest system out, but competitors are catching up to the five-year-old system. Proof: Nintendo's net profits dropped 66 percent in Q1 2011 and overall sales dived in April despite the new Nintendo 3DS handheld.
No wonder Nintendo cushioned the sales info by announcing the Wii 2 well before E3. The long-rumored (and long-needed) Wii update will be shown at Nintendo's keynote event on Tuesday. Not much is known about the device except that it may use a touchscreen controller and that it probably won't be out until 2012.
If it is waiting until holiday 2012 to release the Wii 2, Nintendo better put on an amazing event tomorrow.
Sony fighting for survival
If Nintendo is fighting for relevance, Sony is trying to resurrect itself. The online PlayStation Network has been battered by hackers and was offline for nearly a month. Developers have lost thousands, if not millions of real and potential dollars from customers, and more than a million customers have had their passwords, personal information, and other details exposed.
Meanwhile, Sony has launched a mobile phone that plays games and a game system that makes phone calls. It's unclear which is more important to the company.
At its keynote this evening, Sony will have to build up consumer and industry confidence by giving:
- Games to get it out of third place: The Microsoft Kinect is selling about 50 percent more than Sony's motion-based Move controller. Sony needs a better reason to get gamers back.
- A better security plan: Saying the PlayStation Network is more secure than other online networks isn't enough, especially if millions of customers are now compromised. Sony better dedicate a healthy portion of its keynote to addressing PSN issues.
Microsoft trying to keep the pace
Microsoft is the strongest of the three E3 heavyweights, though it still has much to prove. Its Wii-trumping Kinect motion controller has sold more than 10 million units as of March -- doing much better than critics (including myself) predicted.
At this morning's keynote, Microsoft will now have to convince users that their Kinect money was well spent. The new games shown during March's Game Developers Conference were decent, but there were no must-have games -- in other words, a Super Mario or Angry Birds-level title that will make current Kinect owners happy and potential customers eager to buy the device.
Microsoft also needs to discuss how the XBox 360's XBox Live will integrate more with Windows Phone 7. Just last week my BNET colleague Constantine von Hoffman talked about Microsoft turning the XBox into an "entertainment center", and those lofty ambitions include connectivity between PC, XBox, and phone. This week, Microsoft must show that their recent statements are actually being put into action.
Photo courtesy of JoshMcConnell // CC 2.0
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