It's day two of the annual video game convention and some new themes have emerged as the whole industry battles the rise of games on smartphones and tablets.
For the first time in years we're seeing major device announcements out of E3, as hardware makers look to give gamers new reason to play games on gadgets other than their smartphones and iPads , Tuesday Nintendo unveiled a new console, the "Wii-U" with a motion sensor touch-screen controller, which has the feel of an iPad. It drew oohs and ahhs from the audience but the jury's still out on what it'll do for Nintendo: there's no price tag yet and it's not launching until next year.
Handheld players are upping their game against smatphones
Sony's making it pretty clear it wants its new "Vita" handheld player to hold its own against smartphones by including optional cell phone service. And Nintendo, with its living room console not launching until 2012 Nintendo is making a big push for its 3DS, introducing a slew of new games for its 3DS which launched in March.
But Wedbush Securities analyst Michael Pachter warns these device makers are chasing an ever-shrinking market. He predicts that 70 percent of people who now play on dedicated hand-held devices will switch to play games on smartphones.