Videogames may be nothing more than evening diversions to most Americans, but the industry as a whole is a multi-billion dollar heavyweight. Microsoft broke ground in the business when the Xbox launched in 2001, and came back swinging last year with the Xbox 360. The war for the seventh generation of game consoles has barely begun, and it's hard to know the score without a scorecard. We can get a good look at the odds, though, thanks to the reporting of Dean Takahashi. The author of the definitive book on the original Microsoft console, Opening the Xbox, offers the complete story of their next-gen offering in the recently published The Xbox 360 Uncloaked. A sometimes exhausting read that could have been more concisely edited, Uncloaked still highlights the human side of a complicated technical and business endeavor. Read on for my impressions of Takahashi's new look behind the curtains at Microsoft.

simoniker writes "The recently launched Serious Games Source website, which deals with games created for training, health, government, military, and educational uses, has an interview with the Serious Game Initiative's Ben Sawyer, in which the non-profit director, looking back at E3, comments controversially: 'I believe that every company in the games space will have a serious games related business position in the next ten years.' Sawyer especially referenced Square Enix's recent announcement that it has created a subsidiary to 'develop and distribute edutainment style software'. How many of our traditional education and training courses will be taken over by games over the next few years?"

Castar writes "Prior to E3, Famitsu readers were interested in the PS3, and Final Fantasy. Post E3, while there's still some excitement over Final Fantasy, they seem to be very interested in the Wii, and concerned about the PS3's high price. It certainly seems that in Japan, at least, Nintendo and Sony's fortunes have reversed. Will this hold through the launch and the succeeding years?" From the article: "Nearly 70% of readers said they are most looking forward to Wii. 21% voted for PlayStation 3, while the others voted for systems already released. 88.4% of readers believe PlayStation 3 is too expensive, while 10% believe it's 'about right'."

kukyfrope writes "Reggie Fils-Aime, Nintendo of America's Executive VP of Sales and Marketing, talks about what went wrong with GameCube and how Nintendo will not make the same mistakes when launching Wii. Reggie admits that the initial software lineup for the GameCube was simply not 'diverse and strong enough from a first and third-party perspective,' and by Nintendo's showing at E3 2006, the Wii will launch with a wide variety of games for may types of gamers."

Via Gamasutra, the announcement of the E3 Critics Award nominees. From the list: "Best of Show - Assassin's Creed (Ubisoft Montreal/Ubisoft for PlayStation 3), Bioshock (Irrational Games/2K Games for PC and Xbox 360), Gears of War (Epic Games/Microsoft Games Studio for Xbox 360), Spore (Electronic Arts for PC), Wii (Nintendo). Best Original Game - Assassin's Creed (Ubisoft Montreal/Ubisoft for PlayStation 3), Bioshock (Irrational Games/2K Games for PC/Xbox 360), Gears of War (Epic Games/Microsoft Games Studio for Xbox 360), LocoRoco (SCEJ/Sony Computer Entertainment for PSP), Spore (Electronic Arts for PC), Wii Sports (Nintendo for Wii)."

kukyfrope writes "Peter Moore recently led an intimate round-table discussion at E3 where journalists were allowed to pluck his brain on current industry issues. His comments cover PS3's high-price announcement, downplay rumors surrounding a portable Xbox, and actually admits he would like a Wii! 'Look, it's not partisan; I love what Nintendo is doing. They're in a different space.'"

Joystiq sat down with Epic designer Cliff Bleszinski and talked about the much anticipated Gears of War, the news that Epic is in talks with Nintendo to do games for their new console, and his impressions of Sony's showing at E3. From the article: "We're currently talking with Nintendo. It's not really my department to pontificate on other people's system and comments that the wonderful Mark Rein will make occasionally to upset the fans. Again, I reserve judgment of the Wii until I get hands on with it. I was very judgmental about the DS until I actually got to play hands-on with it and I love Trauma Center and stuff like that. You know what, Nintendo is zigging while everyone else is zagging and they'll be just for it. I give them props for doing something different." For more on Gears, MTV Overdrive has the 'Road to E3' special they aired on MTV2 last week available for viewing. IE is the preferred viewer, of course.

A lot of the big sites have given out their awards for various 'best in show' categories. Bioshock got the nod for 'Game of the Show' from Gamespot, Gamespy, and IGN. From Gamespy's coverage: "I was completely captivated with BioShock like no other game at E3 2006. Is it an RPG? Is it an action game? Is it an adventure? BioShock looks like it has a little of everything: a captivating story, beautiful environments to explore, gorgeous graphics, gameplay that crosses multiple genres... it's hard for me to imagine anyone not seeing the haunting images of a protector escorting that little girl through the unique underwater setting of Rapture and not being immediately hooked. Considering Irrational's history with Looking Glass and the System Shock titles, what I saw of the game at E3 this year vaulted it to the top of my wish list. " 1up gave the nod to Spore.

kukyfrope writes "Nintendo's PR Manager, Matt Atwood, has confirmed accusations that Wii demo stations at E3 were not running inside the Wii case and instead were running inside Gamecube housing using Wii-spec hardware. 'The Wii hardware we exhibited at E3 2006 was made specifically for the E3 show and is not the final mass-production version. Some of this hardware was cased in Nintendo GameCube housing.'" Update: 05/19 21:08 GMT by Z : Changed 'hardware' to 'housing' in title.

Thanks to the 'E3 at Home' initiative, Xbox Live has served up 24 million pieces of content, and connected 1.5 million gamers. From the article: "Over 600 terabytes of data were transferred over the network during the week, a figure which represents 30 times more data than is found in all the printed material in the US Library of Congress, according to Microsoft games boss Peter Moore, who thankfully did not go on to provide the standard British comparison of telling us how many double decker buses it equates to."

fistfullast33l writes "John Carmack's new cell phone game Orcs and Elves, which debuted at E3 to some fanfare, has led the famous developer to think about expanding his mobile gaming presence. Carmack said in an interview with CNN that he is interested in a massively multiplayer sequel. 'I have absolutely no interest in going and competing with Blizzard in the high end of that market, but a cell phone version might be interesting,' Carmack is quoted as saying. Even more interesting is his comment in the interview that game engines really overlook security. The article indirectly quotes him as saying 'while id Software is especially careful to lock down its game engines, companies that license and make changes to those engines often aren't as focused, which could open the door to disaster.'"

jchenx writes "One of the biggest questions remaining after the Sony press conference and E3 last week was whether or not the core PS3 package could be upgraded to the premium one. It looks like that question has been answered. GI.biz reports that the core version can upgraded with WiFi and memory card adapters, as well as a higher capacity hard drive. However, HDMI output will be non-upgradeable."

To put things in perspective, the Curmudgeon Gamer has created graphs showing inflation-adjusted console costs. The PS3 is far from the most expensive console in history (that would be the Neo Geo, at almost $1000 adjusted price), but that hasn't stopped analysts, publishers, developers, and gamers from grumbling about it the week after E3. ABI Research has publicly stated that Sony may have 'hamstrung' itself with the console's high price. Publishers and developers are worried because (despite Sony's protests to the contrary), developers just don't have the kits to make the games. From the GameDaily article: "'A lot of developers have not gotten the kits,' said Sega of America president Simon Jeffrey while attending E3 last week. 'There certainly will not be a lot of titles available.' The result is that publishers that do want to take part in the PS3 launch will have to release games that don't fully take advantage of the power of the Cell processor, added Jeffrey."

kukyfrope writes "Nintendo shares have jumped over six percent since the Wii's unveiling at E3 last week." Despite both Peter Moore and Phil Harrison recommending you should get a Wii, the future of Nintendo and the Wii aren't assured. Next Generation reports that third party developers may not really 'get' the ambitious console.

Clark Hall writes "Is it 1983 all over again? E3 is over and millions of gamers are realizing they can't afford a PS3, or an HDTV. Is it time for a steep and painful correction in the gaming market? Pointlesswasteoftime has been tracking what is looking like a Hindenburg voyage for console gaming, with HDTV playing the role of Hydrogen." From the article: "There's going to be a lot of money lost the next few years, a lot of articles written, a lot of panic, a lot of changes. And when gaming comes back, it will hopefully be different and innovative and based on something other than eye candy and the shock value of blood and guts and hookers. Hopefully it will allow for creativity from the players, and room for small, independent game makers to create content. Hopefully it will be something every working person can afford. "

simoniker writes "Having just finished the glut of gaming goodness that is E3, GameSetWatch has dug out the E3 show plans from 1995, the first ever iteration of the massive video game show, revealing, among other things, that 'Sega had the largest booth of the show (larger than any first-party's today)', and that 'John Wayne Bobbitt made an appearance at a Petree booth'. Pretty much business as usual, then!"

jammmma writes "Before even launching the PS3, Sony is ready to self destruct." From the article: "PS3 is doomed, thanks to Sony's ignorant attitude. None of us had the chance to seriously evaluate PS3 and the experience it has to offer. It's impossible without a series of titles and an official product at hand, but from where we stand, Sony's damaging attitude is all it takes to diminish the value of PS3. Kutaragi may be right in defending PS3; after all, he can't criticize his own product, but instead of exciting users with valuable features and winning them over so they can start saving, Kutaragi makes bearish statements in response to Nintendo's announcement and Microsoft's take on Sony. Last I heard companies were at E3 to impress media personnel, which yielded positive publicity, not make childish remarks when chances were against them."

Red Herring is covering an indie game panel held this week at E3, at which Warren Spector essentially told independent game developers to just give up now. From the article: "Fellow panelists echoed Mr. Spector's sentiments, telling a room full of game company representatives, industry consultants, and members of the media that the path to entering the $7-billion market is fraught with more pitfalls than Tomb Raider. While opportunities do exist, small companies and startups find it difficult to secure funding and distribution for their work. They often have to deal with past projects that pigeonhole them and potentially hamper future expansion."

The 360 is playing host to some non-traditional titles in the near future. Huxley is an MMO, one of the first on the console, and combines MMORPG elements with FPS shooting. From Gamespot's Huxley hands-on: "We saw a residential area that has room for 5,000 players, and told that you'll be able to purchase your own housing in the game." Meanwhile, Mass Effect is Bioware's next great opus, an RPG with energy weapons. From 1up's Mass Effect hands-on: "Everything for the E3 demo was in-engine, and the graphics are impressive. The dialogue scenes revealed characters with lifelike eye movements that conveyed real emotion. Excellent voice acting, distinctive music, and a beautifully formed world with rich, detailed environments show real promise."

Jay Cruise writes "The world's first 3D gaming mouse was unveiled at the 2006 E3 Expo. The Game O' 3D gaming mouse offers PC gamers an 'unfair advantage' by allowing them to execute moves that are not possible using just a keyboard and a traditional 2D mouse. For example, in FPS, Game O' offers gamers a way to move forward, backwards, sideways, jump, crouch, pitch, yaw and roll without using the keyboard." For a more cynical opinion, I submit to you Ars Technica's take on the device. From that piece: "Your head just explodes. It's a terrible thing, and the nub on the side for some reason randomly makes you crouch. The man showing me the product was quick to add that you could set up the controls however you wanted. The software to do this even looked nice. This doesn't help the fact that playing a first person shooter with one hand is a bad idea. You'd still need a hand free to like, you know, reload? You could probably use those buttons, but in the demo they were set to look up and down. What if you're playing a game where you can peek around corners? You simply need the keyboard."