The games industry it seems, despite continuing growth following the launch of three next-generation consoles over the past year, is not immune to the pressures faced by its counterparts in the IT industry.

Former megaliths such as the IT industry’s flagship Comdex in Las Vegas and CeBIT in Hanover have shrunk to shadows of their former selves in the case of CeBIT, or retired altogether, in the case of Comdex.

The Electronic Entertainment Expo (E3), held earlier this month in Santa Monica and still thought of by many as the jewel in the crown of the gaming industry calendar, was described as a ‘more intimate’ event this year by its organisers – the Entertainment Software Association (ESA).

Douglas Lowenstein, president of the ESA, said before the event: “The world of interactive entertainment has changed since E3 Expo was created 12 years ago. At that time we were focused on establishing the industry and securing orders for the holiday season. Over the years, it has become clear that we need a more intimate programme, including higher-quality, more personal dialogue with the worldwide media, developers, retailers and other key industry audiences.”

Another reason for a smaller scale show is the emergence of other regional shows and company-specific events held by the major vendors throughout the year.

“It is no longer necessary or efficient to have a single industry megashow. By refocusing on a highly targeted event, we think we can do a better job serving our members and the industry as a whole,” Lowenstein said.

However, despite the cosy atmosphere, the big three were out in force, with Sony, Microsoft and Nintendo making some bold announcements and revealing their fourth-quarter software and hardware line-up to whet gamers’ appetites over the summer months.

Sony was particularly busy at E3, parading its new slimline PlayStation Portable (PSP) (see picture, right) and ending months of speculation about a redesign.

The new PSP features a host of tweaks and additions including a video-out port and the ability to charge the unit via PlayStation 3 (PS3) or a PC using a USB cable during data transfer. On top of that it is 33 per cent lighter and 19 per cent slimmer than its predecessor and will be available in the UK from September.

Other Sony announcements included a line-up of 120 new PS3 software titles developed both in-house and in partnership with third-party developers, set for release over the remainder of the financial year, including first-party titles such as Heavenly Sword, Ratchet and Clank Future: Tools of Destruction and Uncharted: Drakes Fortune.

The PS2 console also plays a major role in Sony’s future plans with more than 160 titles set to launch on the format, including more titles from the Buzz! and SingStar franchises.

To top it off and to put pay to continuing rumours of a PS3 price cut in Europe over the summer, the firm unveiled its PS3 Starter Pack – comprising a console, two games and two wireless controllers at a price of £425. The Starter Pack was rolled out in UK stores on 18 July, with the rest of Europe scheduled for 1 August.

Jack Tretton, chief executive of Sony Computer Entertainment America, said: “These announcements lay the groundwork for what we are confident will be accelerated momentum for the PlayStation brand throughout this fiscal year.”

Close rival Microsoft also chose E3 to take the wraps off its Christmas line-up for its Xbox 360 console, with Halo 3 – the long awaited sequel to Halo 2 – one of its key announcements. Other new titles included Madden NFL ’08, Project Gotham Racing 4, Tom Clancy’s Splinter Cell Conviction and Virtual Fighter 5. Football fans were promised Fifa 08 and PES 2008 in the autumn.

Microsoft also unveiled a raft of new titles for the Xbox Live marketplace including Bomberman Live, Sonic the Hedgehog and Golden Axe.

In terms of hardware, Microsoft was not to be outdone by Sony, with the launch of Xbox Elite – a revamped Xbox 360 that can store downloadable high-definition TV programmes as well as games and music. The Elite console is available in the UK from next month.

Peter Moore, corporate vice-president of the interactive entertainment business at Microsoft, said: “We have a monumental library of titles for Xbox 360 due to hit the stores by the end of this year, which will strike an emotional chord with every type of customer.”

Nintendo, riding high in the gaming charts by massively outselling both Microsoft and Sony due to its strategy of appealing to people outside the core gaming market, revealed some of the treats to come from its camp in the Christmas run up.

Popular character Mario featured heavily in the Wii console line-up, with titles such as Mario Kart Wii (currently a working title), Super Smash Bros. Brawl and Super Mario Galaxy. Another title that Nintendo is banking heavily on is Wii Fit – which is a full-body workout disguised as a game.

Nintendo also revealed that it has almost 100 new titles in the works from every major games publisher in the industry.

On the hand-held Nintendo Dual Screen (DS) side, the firm is releasing Brain Age 2, The Legend of Zelda: Phantom Hourglass and Flash Focus: Vision Training in Minutes a Day, among others. Again there are about 140 titles in third-party development for the DS, Nintendo said.

Reggie Fils-Aime, president of Nintendo of America, said: “Games such as Wii Sports and the original Brain Age proved that anyone can pick up a video game system and have fun. We are building on that foundation with games and accessories appealing to our fan base and drawing in even more new players.”

Sony reveals plans to win Christmas battle