Video Game Expo Scores a Hit With Version 3.0

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It used to be too big and glitzy. Then it was too small and boring. Now it’s just right.

The Electronic Entertainment Expo colloquially known as E3 was back at the Los Angeles Convention Center last week in a third configuration.

The Electronic Software Association’s trade show had started out as an event that grew so crowded and distracting that no one could do business there. But a scaled-down version proved too dull.

So organizers have found a middle ground. Last week’s E3 let companies show off their upcoming titles without preventing executives and analysts from doing real work, several chief executives of local companies said.

“The old format, three to six years ago, was too crowded and we couldn’t conduct business,” said Brian Farrell, chief executive of Agoura Hills-based THQ Inc. “This is perfect. We get to meet with press, and there’s enough space down there to show products.”

Loosened restrictions allowed game companies to build impressive exhibition booths this go-round and they did. Grapevine, Texas-based Southpeak Games built an elaborate two-story booth full of flat-screen TVs and game consoles. Glendale-based Disney Interactive Studios built a giant white dome covered in hexagons where they displayed games for an invitation-only group of analysts and insiders.

Warner Bros. Interactive Entertainment, based in Burbank, brought out a Batmobile from the “Batman” and “Batman Returns” movies to promote its new “Batman: Arkham Asylum” game. The monstrous car was parked near its game booth, and yes, it does work, a Warner Bros. security guard confirmed. “They drove it in here,” he said, nodding toward the car parked on lush carpet. “And they’ll drive it back out.”


Costume Drama

Another returning feature to this year’s E3 were the so-called booth babes, scantily clad models who draw attention to exhibitor booths. But there were other types of costumed characters, too. KOEI Corp. from Japan had a person dressed in a metallic dragon costume in front of its games. Ubisoft Entertainment of France trotted out four costumed Ninja Turtles to pose with fans to promote its new “Ninja Turtles” game.



David vs. Goliath

While big game companies dominate E3, there are also a lot of small businesses that attend with the goal of building buzz for their products.

505 Games of Agoura Hills is one of those. Founded in May 2008, the company was participating in its first ever E3. It didn’t have a booth, though. The 12-employee publisher booked an out-of-the-way meeting room on the Convention Center’s second floor to showcase its small but growing library of titles to analysts, journalists and other companies.

505’s business strategy is to license well-known brands to integrate with its games. For instance, it is working with Rolling Stone magazine to develop and market its new “Drum King” video game. With that type of license deal, 505 gives its games a recognizable brand to appeal to consumers and retailers, while also splitting some of the game’s marketing costs with the license-holder.

But building game portfolios predominantly of licensed properties also carries risk. Licensed properties are usually less profitable than original titles because revenue from the games has to be split with the license-holder. And, ultimately, it’s the quality of the game not necessarily the name on the cover that propels titles to success.

Jeremy Barnett, 505’s vice president of marketing, conceded it’s a challenge to break into a video game market dominated by behemoth publishers such as THQ and Santa Monica-based Activision Blizzard Inc.

“It’s a little bit of a David vs. Goliath story,” Barnett said. But 505 executives are confident in the future. Barnett pointed to some of the company’s partners, such as Olympian Michael Phelps, who was just signed to develop a swimming game.

“We’re a new, unknown, small publisher with some big brands,” he said.


Star Power

Video game companies were eager to trot out stars to show off new titles. Director Steven Spielberg helped Microsoft Corp. present a new motion-capture system for its Xbox 360. Soccer star Pele showed up at Ubisoft’s press conference for a new soccer game.

Tennis legend Pete Sampras was on hand for the unveiling of an Electronic Arts Inc. tennis game. Sampras played as a virtual version of himself, with a wicked virtual forehand.

While he was playing, an EA executive asked Sampras how the game compared to the real thing.

Without taking his eyes off the screen, Sampras replied, “It’s easier,” and blasted a virtual ace.

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