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The Effect of E3 on Computer Gaming

by Jason Bednarik

If you're at all interested in computers or gaming, you just might have noticed a little something called the E3. The E3, or Electronics Entertainment Expo, which was held this year in Atlanta showcases the newest and most promising technologies on the horizon. The E3 represents all aspects and types of gaming; everything from consoles like the Nintendo 64 and Sony Playstation, to PC gaming, and even Amiga gaming. Most of the major vendors appeared this year, one of the largest booths belonging to Nintendo. However, former gaming giant, Atari, failed to show up, which further illustrates the latest trends in gaming and technology over the past 15-20 years.


I like to think of the E3, along with similar expos, to be the "stock market" of the gaming industry. The Dow Jones Industrial Average (DJIA) is the driving forces behind the U.S. economy. The DJIA has analysts with PE (Profits/Expectations) ratings for all sorts of companies and industries. This PE ratio is announced, and then a company reports its earnings to either be above, below, or equal with this speculated earnings number. The results of company's actual PE number can increase or decrease its value on the market. The gaming industry is similar. Everyone has an expectation for how a certain product will fare. The actuality of this speculation can "make or break" that product or that company.

With so much riding on the impression a company makes at the E3, it is essential that any company wishing to make a lasting presence in the gaming market should put on the "marketing blitz" at the E3. Atari, for one, is a company that crumbled under the aforementioned "PE ratings" at the E3. A few years ago, everyone was eagerly awaiting the release of the first 64-bit console system, the Atari Jaguar. At first it did well, but with a high price, very few games, and little customer support or satisfaction, the Jaguar failed miserably. Now, brand-new Jaguar systems that have been sitting at a warehouse are down to $39. Cheap, compared to the $650 starting price only a few years ago.

So, what effect will the E3 have on companies this year? At this point, it is difficult to say for sure, but I have a few predictions. LucasArts' Dark Forces 2 : Jedi Knight will be a big seller when it comes out in a few months. Nintendo is sure to have a winning year with the N64 and a new batch of even more advanced games. Sony will try to compete with the N64 by releasing a new iteration of the Playstation, although it won't be able to top the N64. Sega Saturn will end up like the 32X add-on and the Magnavox/3DO M2 will fail horribly. This is only speculation, but it looks like the gaming industry as a whole will have a successful year.

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