The 12th Annual Electronic Entertainment Expo (E3), the major computer and video game trade show that recently brought more than 60,00 industry professionals to the Los Angeles Convention Center, emerged as an important battleground in the competition for the next generation of DVD technology.
“We are entering an era where games and other forms of entertainment technology will fuse together even more tightly, and where the full potential of online and mobile will come more sharply in focus,” said Doug Lowestein, president of the Entertainment Software Association, which owns and operates E3.
In the home entertainment market, there are currently two incompatible new DVD formats vying to be the next generation of DVD technology offering high definition capabilities: Blu-Ray Disc, supported by manufacturers including Sony, Panasonic and Apple; and HD DVD, supported by technology companies including Toshiba, NEC, Sanyo and Microsoft. Players for both formats are rolling out this year in the home entertainment market, and major studios are preparing to release titles for these new formats. But only one is likely to emerge as the high definition successor to the popular DVD format, and many believe the competition for that title will result in a fight not unlike the one that occurred roughly 20 years ago between Betamax and VHS.
This time around, many industry pundits believe an important round in the competition will be played in the video game arena, with new video game platforms that have incorporated these technologies and offer HD graphics.
These two prime new consoles were a focus of the E3 exhibition: Sony’s PlayStation 3 (PS3) and Microsoft’s Xbox 360. At E3, Sony Computer Entertainment America (SCEA) previewed its PS3, which is capable of playing back content from Blu-Ray Discs at a bit rate of multiplex 48Mbps, the maximum bit rate defined in Blu-Ray standards. Equipped with basic input/output ports, PS3 also supports a broad range of displays from conventional NTSC/PAL standard TVs to the latest HD (1080i/1080p) flat panel displays–meaning that the players would be used to show content on HD capable sets. In fact, during E3, Sony showed HD trailers of soon-to-be-released titles including Sony Pictures’ The Da Vinci Code and Click playing on a high definition television in 1080p off a PS3. PS3 is scheduled to launch worldwide on Nov. 17.
Meanwhile, Microsoft announced that an HD DVD player would be available as an accessory to its now shipping Xbox 360 this holiday season, enabling consumers to view movies in high definition through the Xbox 360 system. Microsoft also reported that Xbox 360 would support more than 160 games by the end of the year.
Indeed with the profound influence of gaming on the entertainment market at large, it’s understandable why the launch of these new game consoles is viewed by many experts as pivotal in the HD battle. How large is the influence of the games sector? According to ESA’s Lowestein, research suggests that the gaming industry has an $18 billion annual impact on the U.S. economy.