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Yesterday, in Part 1 of Metue coverage of the E3 gaming convention we highlighted some of the new products and software revealed by Nintendo, Sony, Harmonix, Atari and Disney.  Here, in Part 2, are summaries of what’s in the works at Microsoft, Electronic Arts, Konami, Take Two and Activision Blizzard.

MICROSOFT
Unlike in recent years when hardware was center stage, this year’s convention seems to be focused largely on two themes: networking entertainment and the software pipeline.  Microsoft’s collected press announcements and product demonstrations largely fit that bill.

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A lot of industries have trade shows, some more than one. Most are usually meet and greet events, gatherings where people schmooze, where new products are introduced, and where the press and the public informed. The events provide a platform for marketing and a forum for companies to take a closer look at what their competitors are doing.  For the $40billion dollar video game industry, the annual E3 Media Summit is the biggest of these shows (The broader annual Las Vegas Consumer Electronics Show notwithstanding) and its happening this week in L.A.

For 14 years, gamers and game makers have flocked to Southern California to browse the booths and presentations.  In 2006, the audience peaked at more than 60,000 visitors.  Last year, however, members of the Entertainment Software Associate voted to change the format.  The public was excluded.  E3 went from a open big top to an industry only event.  Now about 5,000 retailers, analysts, press and industry representatives are invited to attend.

The smaller scale has turned the event into what amounts, largely, to a media showcase.  E3 has become an opportunity for each company to reveal their prototypes and products, or to plug their performance.  It’s a week of overlapping press releases, announcements and proclamations. 

Going through the list of major companies here in part one of two parts are some of the highlights – the new products and the new software gamers can look forward too.  

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When Netflix first revealed their strategy to bring their streamed video service software to consumer electronics by licensing their software, they promised the licensing partnerships would be broad reaching.  When the next earnings conference calls comes around, executives at the company will be able to say they have kept their word.  After first announcing a deal with LG to tie into consumer electronics (DVD players and Set-Top boxes), then offering a standalone player in partnership with Roku, Netflix is now tackling gaming hardware.

Monday, using the E3 gaming convention in LA as a forum, Netflix revealed a plan to bring their Watch Now on-demand video service to Xbox 360 owners.

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Wrapping up a week where tech news was largely dominated by iPhone related hype, and financial news committed to turbulent markets, three of the video game industries top ten publishers (and arguably top 5 depending on the method of ranking) moved ahead with acquisition related activities.  Leading the way, Activision and Vivendi games completed their merger.  Additionally, Electronic Arts made a small forward step in their battle to acquire Take Two Interactive and French publisher, Ubisoft, fortified their film industry foundation with the purchase of a special effects shop.

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Aerosmith has sold more than 150 million albums (66m + in the U.S.) over four decades of Rock but they haven’t released a new one since 2001.  In today’s music world, that may not matter much when it comes time to receive royalty checks.   Guitar Hero: Aerosmith, the first single-band specific version of Activision’s bestselling video game, released Sunday.  If it does well, the band stands to draw a sizable income without having to hit the studio anew.

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In January, Bill Gates took the stage at the Las Vegas Consumer Electronics Show and for the last time mused on the future of computing.   One of three things he predicted was an eventual change in user interfaces.  There will be more touch.  More motion.  More gestures.   In the future, he said, we’ll migrate away from our dependence on keyboards mice and trackballs; we’ll have more natural interfaces.

In the gaming world, that future is already here.  It began a decade ago with the introduction of a range of Japanese arcade games – virtual skiing machines and dance pads.  These new peripherals then jumped to video game consoles.  Now they’ve been carried in a new direction and lifted to new heights with Nintendo’s motion control systems in the Wii and the introduction of rhythm games like Guitar Hero (Activision) and Rock Band (EA/MTV).

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With all the back and forth over the last five months, keeping track of Electronic Art’s attempt to acquire Take Two has gotten confusing. At times, it seems like just about anyone you ask is bound to have a different take, or different facts to relay: "The offer is too low and undervalues the company." "It’s just a matter of time." "EA will have to up their offer to $28 to $30." "it’s a stalemate."

In March, we put together a "Deal Diary" to track things. That first effort rapidly became outdated with all the twists and turns. An update was long overdue, so here, covering all the gritty details, even historical stock prices, is the remake. All in one place: The Exhaustive EA and Take Two Deal Diary from Metue.com.

[Note: This Deal Diary will be updated when more news develops. This version was last updated September 14, 2008. For related articles and analysis about the merger please see the links at the end of this Deal Diary].

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