Companies:Activision, Inc. | Take Two Interactive Software Inc | Electronic Arts Inc | Sony Corp, SNE | Microsoft Corp

The doors to E3 on the floor of the Los Angeles convention center just opened and the video game giants are trying to one-up each other and attract consumer dollars.

The themes are motion sensor, portability, and convergence. The console makers, Microsoft's XBox 360, Sony Play Station, and Nintendo, are all looking to serve hard-core gamers with complex controllers and shoot-em-up games while also expanding to a broader demographic of casual gamers. Motion control sensors, popularized by the Nintendo Wii, is now a must have. Meanwhile video game makers Electronic Arts, Activision, Take-Two Interactive and THQ, are are competing to generate high-quality graphics and varied virtual environments.

After Microsoft stole the spotlight yesterday with a star-studded presentation of a new Beatles Rock Band Game and 3-D sensor that eliminates the need for a controller, Nintendo made some headlines Tuesday. Building on the success of its Wii Fit, Nintendo released the "Wii Fit Plus" with more flexibility and six new strengthening exercises. It's building on its motion-sensor expertise with "Wii Motion Plus," which is designed to accurately reflect your movements. Nintendo also buzzed about a ton of titles for its portable Nintendo DS, including a new 3D game due out next year. The company also catered to fans of its old-school games by updating Super Mario for the Wii.

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Sony recently wrapped up the announcements for its PlayStation gaming system. Jack Tretton, CEO of Sony Computer Entertainment of America is optimistic, saying the company projects a 30 percent increase in PS3 sales this year, to 13 million. And as expected the company announced the new PSP "Media Go," a $250 handheld device with a sliding screen. It allows gamers to transfer their data from their PC to their PSP and with a "Sense Me" application that produces different music playlists, it's designed for a lot more entertainment consumption than just gaming. Web access is key to Sony's strategy for distributing games and all other content; now all PSP games will be available both in stores and through direct download.

And, as expected Sony made a big splash in the motion control market, introducing the PlayStation Motion Controller, which tracks the movement of the controller in the room on the screen, with 1:1 tracking. A demo shows how this technology can be used as a sword, flashlight, tennis racket, or shooter. Moving around in 3-D space in a video game is the next frontier. Microsoft X-Box made news with its upcoming technology that uses ONLY your body's motion to control a game. But Sony is sure to flog the fact that its new PlayStation Motion Controller is available now. Nintendo Wii had an early take on this, for a less tech-y audience. Can Nintendo hold onto those casual gamers as these new gadgets come out on other platforms? And can these innovations from Microsoft and Sony grow the category?

CORRECTION: The PlayStation Eye is an existing camera accessory for the PS3. The new wandlike motion-sensor controller is a prototype; it will go on sale spring 2010.

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