Gaming and Culture

(Credit: Engadget)

A few days ago, we reported on a rumor going around that there would be a new, upgraded Xbox 360 in 2010 that would incorporate Microsoft's Project Natal technology. Well, we didn't expect Microsoft to come right out and tell us a new one was coming--and a few Microsoft execs did indeed deny that a new 360 was in the works. But a few blogs are reporting that CEO Steve Ballmer let word of new Xbox 360 slip out in a speech he gave Tuesday at the Executives' Club of Chicago.

TG Daily was the source for the original story, and I have to say the quote sounds pretty dubious.

"Rumors can be confirmed," the article declares, "as Ballmer stated openly during a speech on the recession to those in attendance at the Executives' Club in Chicago, a new Xbox 360 will hit the store shelves in 2010."

The only problem is the quote that follows this quote is rather ambiguous.

"The new device will be equipped with technology that is 'really, really close' to an actuality. The console, which was described as having a 'natural interface,' will have a built-in camera with the ability to recognize movement and voice."

Read it a couple of times and it's really pretty unclear whether Ballmer was talking about a new console or just the concept of Project Natal. We're betting he was talking more about the new technology coming to fruition in 2010 and not necessarily a whole new Xbox 360.

But that didn't stop both CrunchGear and Gizmodo from posting entries with the headline, "Ballmer confirms Project Natal Xbox 360."

Now, there's nothing wrong with a good, attention-grabbing headline (I'm a sucker for them). But we're going to proceed a little more cautiously with this one and await word on whether Ballmer really let it slip--or whether something got jumbled in the translation.

Comments?

(Source: TG Daily)

Update: While Microsoft reps are still trying to figure out just what Steve Ballmer said (they've requested a transcript of the event), Aaron Greenberg, group product manager for Xbox 360, said there would be no new XBox 360 for 2010 and he reiterated that Project Natal would be compatible with all existing XBox consoles (no new hardware except the camera will be required). However, that doesn't mean Microsoft won't continue making tweaks to the XBox 360's components, upgrading chips and other parts as it's already done.

Microsoft passed on this statement to me regarding this post:

"As the Xbox team stated at E3 two weeks ago, we are not even halfway through the current console generation lifecycle and believe Xbox 360 will be the entertainment center in the home for long into the next decade. Project Natal will be an important part of this platform, but we have not confirmed a launch date at this time."

The new motion-control system from Sony was announced at E3 on the heels of similar new technology from both Microsoft and Nintendo.

(Credit: Gamespot)

LOS ANGELES--Forget the console wars. We're in the motion-sensitive controller wars.

That much became clear Tuesday when, following on Monday's announcement by Microsoft that it was working on Project Natal, an impressive and complex full-body, hands-free motion-sensitive control system, both Nintendo and Sony revealed plans for new, advanced systems of their own.

Of course, Microsoft is the only real newcomer to this party. After all, Sony introduced the Eye Toy, a system that incorporated users' body movements into some games, years ago, and Nintendo's Wii vaulted to huge popularity on the strength of the innovative controls of its now-famous Wii-mote.

But over the last two days here at E3--the video game industry's most watched trade show--we've seen the three major video game hardware makers each up the ante in the race to provide consumers with much more intuitive ways to play games. And it's abundantly clear that what's really going on here is an aggressive play by each of the three companies to make their offerings more palatable to mainstream audiences, people who have traditionally not considered themselves gamers.

Microsoft's Project Natal is a hands-free, full-body sensing control system that can be used to play games, watch movies, do virtual painting, and much more. It appears to be easy to use, and quick to get going on. It's not known yet how much it will cost, or whether it will be bundled with the Xbox or sold as an accessory.

Nintendo's newly announced improvements to Wii Motion Plus (see video below) is the most incremental of the three new systems. It takes the successful Wii-mote and adds a physical feedback system that lets users feel what they're doing, and it also allows for rotational motion in 3D space, such as spinning a skydiver's body around, which someone could do in "Wii Sports Resort," one of the games that Nintendo said would benefit from the new control system.

And Sony's new system is a set of wands with glowing orbs on top, that allow one-to-one motion like Nintendo's original Wii-mote, and which also give tangible physical feedback like the new Nintendo system.

With its massive success with the Wii, Nintendo would seem to have a leg up over its competitors. That's only because it doesn't have to work very hard to market its motion-sensitive control regimen at this point: everyone knows that the Wii controller is simple, easy to use, and responds to users' hand and arm gestures.

On the other hand, Nintendo's new technology also represents the smallest incremental change, meaning that it will actually be more difficult to convince would-be customers that its new offering is much different than what it had before.

By comparison, both Sony and Microsoft are offering something entirely new, and will certainly have little trouble building marketing campaigns around them once they're ready to go on sale. The answer to the question of when those technologies actually will go on sale is not yet known, and it's certainly a big question. Whoever is last to this game will probably have a hard time selling their technology as new and innovative.

Based on this new arms race, however, it's clear there is exactly one guaranteed winner: consumers. Until now, people who wanted a true motion-sensitive controller had only one choice: the Wii. Now--or rather, when the technology hits the market--people who are considering buying a video game console will be able to choose whichever system they want. Their choice, in the end, may well be able to come down to which games are on offer.

And one would have to expect, since it's very obvious that all three companies are now going after the truly mainstream audience, that all three will be pushing their developer partners hard to come up with more casual gaming experiences, and fast.

I really liked what I saw from all three companies, even though all three technologies are somewhat different.

I actually think that Microsoft's Project Natal (see video below) is the biggest leap forward, and offers consumers the widest user experience. And given that Microsoft has been making huge strides in developing its Xbox Live service in such a way that there are plenty of things for casual gamers, or even non-gamers, to do, I suspect that Natal will end up being a real winner for the Xbox platform.

That said, the Xbox is also seen in the wider world, I think, as a much harder-core gaming console, as is the PS3. So, it was crucial for both Sony and Microsoft to come up with something for the casual gamer, and now. Whether they can change the perception of their consoles as geared to the hard-core is something I think will take some time. On the other hand, both companies are surely willing to throw a lot of marketing dollars at the problem, so I have faith those non-gamers out there will be seeing a lot of advertising geared at them.

Nintendo, meanwhile, has the opposite problem: it has to find a way to convince core gamers it has something to offer them. So I would imagine the company will be pushing its developer partners to incorporate its latest technology into more games geared to the "Halo" set.

Everyone wants to know about winners and losers, and I don't think we have any losers here. Whether we can crown winners yet is also unclear. I would have to say it's too early for that. But my sense is that there is plenty to be excited about here. And one thing that strikes me is that the technological innovations we've now seen from all three companies suggests that we're not about to see the next generation of consoles any time soon.

And why would we? With the new technology each company keeps putting out, we've already got three new systems, and we don't need to spend several hundred more dollars to get there.

LOS ANGELES--About halfway through a closed-door demo I was in this afternoon of Microsoft's just-announced full-body motion-sensitive control system, Project Natal, another reporter told our host that he was skeptical of what he was seeing.

A minute later, after taking the virtual controls himself of the game "Burnout Paradise" and giving Natal a test, the reporter walked back over to where I was standing and when I asked him if he was still skeptical, he gave me a chastened look and said, "It's interesting."

In other words, he was won over.

Project Natal, as you probably know by now, was Microsoft's big announcement at its E3 press briefing here. It has gotten a lot of attention because of its promise to make it possible to incorporate all kinds of hands-free control into a wide variety of games: racing games, painting games, shooting games, sports games and so on.

(Credit: Daniel Terdiman/CNET Networks)

But until now, I hadn't seen the technology close up. I was part of a small group that got the demonstration deep inside Microsoft's cavernous E3 booth. We were allowed to ask whatever we wanted, but we weren't able to take video or photos of the technology.

One thing that came out of the presentation: Tsunoda said unequivocally that the software behind Natal was developed entirely in-house at Microsoft. But he wouldn't address the question of where the hardware came from, or specifically, if it came from 3DV Systems, a company that has been working on this kind of technology, and which Microsoft recently acquired.

Having seen the 3DV technology a couple of years ago, I can say that what Microsoft is showing today is very much the same but with a much more user-friendly front end. In other words, I would bet that 3DV is the source of that hardware.

Here's my quick impression: Natal is for real, and it may well change the way people experience video games, as well as anything else that is run through an Xbox 360.

Tsunoda began our demonstration by explaining the problem Microsoft had set out to solve: To make the gaming experience fun for everyone, while not alienating the core Xbox 360 fans.

"The control system is simple," Tsunoda said of Natal. "People can just jump in and have fun. (But there's) an extra layer of fidelity for core gamers."

Project Natal (see video below) is designed to be a one-to-one avatar control system, Tsunoda said. Wherever you move your hands, your body or your legs, the system captures it and mirrors it on the screen and in whatever game you're playing. "No (other) controller in the world allows you to control your whole body," he said. "Every part of the body is in play."

One interesting thing that came up in the demo is that when a woman stepped up to use it, the system recognized she was female and represented her on-screen as a female avatar with long hair. Tsunoda said that ideally, Natal will recognize users and be able to grab their existing Xbox avatars, but that in such a demo environment, it simply represented her the best way it could, given what it could see of her skeletal structure.

Another interesting point was the way Natal recognizes people's skeletal structure and analyzes how we move. Tsunoda made the point that Natal will continue to work even if someone walks in front of a player because it knows how the human body works. So, if a player had his or her arms blocked, but Natal's cameras could still see part of their arm, it can fill in the rest based on algorithms that tell it how that arm should look.

And it's the software, Tsunoda said, that's the "magic" behind Natal, and that allows the technology to "extract the human skeleton."

Natal is designed to work whether someone is standing up or sitting down, and can recognize users very quickly. We saw that in action when, one-by-one, we were invited to step up and play either a kickball game or a driving game. With a couple of exceptions where the player didn't stand in the right place, Natal did seem to almost instantly recognize that a new person was playing and, then, respond to their movements.

This may have been most impressive during game play of the racing game, "Burnout Paradise," when it was clear that Natal was doing a fine job of translating the player's hand movements--mimicking holding and turning a steering wheel--into moving the car on-screen.

Tsunoda said the technology behind Natal includes an RGB camera, an infrared camea, a multi-array microphone and a depth map. These features allow the system to track a player in 3D space, as well as to capture spoken commands from multiple people, none of whom have to wear a headset.

Asked how Natal differs from the many other motion-control cameras that have come along over the years, Tsunoda simply said that nothing that has ever come along before has been able to instantly work when a new player steps up in front of it, or when the lighting conditions change, or when someone else steps in front of a player.

"Ours, you can play any way you want," he said. "This just works the way you want it to."

Clearly, Microsoft is banking heavily on software developers--who are just now getting development kits--being able to utilize Natal in their games in such a way that players don't have to do any kind of configuration or tinkering in order to get it to work. Absent that instant-workability, the system loses a lot of its allure. But Tsunoda was insistent that that is Natal's value proposition and that developers will have no trouble making it work that way in their games.

If that's true, then it would seem that Microsoft has a real winner on its hands. As I wrote Monday, any success depends, though, entirely on price point, and how users get their hands on it. But right now, having seen Natal close up, I have to say I'm a believer.

A new PlayStation Portable is expected to be announced at E3 Tuesday.

(Credit: Jennifer Guevin/CNET)

LOS ANGELES--Question: if everybody already knows what you're going to announce at a press conference, can you still surprise people?

Microsoft proved on Monday that the answer is yes; everyone knew that the company would be releasing some kind of motion-sensitive control system, yet no one was prepared for how polished the product, Project Natal, actually turned out to be.

Now, Sony is getting ready for its own moment in the spotlight at E3 here, and the pressure, as always, is on. Almost certain is a newly redesigned PlayStation Portable, or PSP Go, as it's being called. And there's also been talk of Sony having some kind of new motion-sensitive controller, as well.

For more on what Sony actually does announce, stay tuned to this page. We're live-blogging Sony's press briefing, which started shortly after 11 a.m. Pacific. Sister site Gamespot has posted video from the live stream of the Sony keynote here.

11:14 a.m.: Sony Computer Entertainment America President and CEO Jack Tretton begins by joking, "given this industry's ability to keep secrets, I was worried there wouldn't be any reason to come to this press conference."

11:16 a.m.: Tretton, in his introduction, touts the strength of the entire PlayStation platform--PS3, PS2, and PlayStation Portable--and said that 30 percent of the industry's sales in 2008 were from Sony's combined platforms.

11:19 a.m.: He adds that with the PS2 selling for $99, it continues to be the Sony standard bearer. There are currently more than 2,000 games for the PS2, and will be an additional 100-plus new games this year.

As for the PS3, there have been 22 million units sold globally so far, and Sony predicts sales of 13 million more in fiscal 2010.

Evan Wells shows off Uncharted 2

(Credit: Gamespot)

11:21 a.m.: One of the biggest games coming to PS3, Tretton says, is Naughty Dog's "Uncharted 2: Among Thieves." Starting tonight, the game will go into open beta. The game is one of 35 titles that will be exclusive for PS3 this year, Tretton added. Another he touted excitedly, and which got a loud reception from the audience, is InFamous. One thing is clear from that audience reception: Sony has its own passionate fans, much like Nintendo does.

Evan Wells from Naughty Dog comes onstage to show a demo of "Uncharted 2: Among Thieves."

An ear-splitting demo of "Uncharted 2" gets very loud, excited applause.

11:27 a.m.: Next up, Zipper Interactive comes up to show off its forthcoming PS3 game, "MAG," which can support 256 simultaneous players, including people playing remotely.

Jack Tretton introduces Mag

(Credit: Daniel Terdiman/CNET)

11:37 a.m.: Tretton is back on stage, talking about the functionality of the PSP. Last year, he says, Sony sold 15 million PSPs, pushing the device to more than 50 million units sold in its lifetime.

He says there are a series of hot games coming to the PSP, including "City of Final Fantasy" on August 25, and "Assassin's Creed: Bloodlines" on November 10. Sony is also working with Disney to introduce a Hannah Montana bundle, complete with a colored PSP. It will be available this July.

Next up, Kaz Hirai (CEO of Sony's Networked Products and Services Group) comes on stage to introduce the much-anticipated the PSP Go, also known, he joked, "as the worst-kept secret" in the video game business. (Watch video of Kaz Hirai introducing the PSP Go on CNET TV.)

"The PSP Go is 50 percent smaller" than the existing PSP.

Kaz Hirai introduces PSP Go

(Credit: Daniel Terdiman/CNET)

PSP Go from the back

(Credit: Daniel Terdiman/CNET)

11:41 a.m.: The PSP Go, Hirai says, will feature 16 gigabytes of internal Flash memory; built-in Wi-Fi; integrated Bluetooth and a new system, Media Go, which will be the application used on the PSP Go to access the PlayStation Store.

PSP Go has slideout controls

(Credit: Gamespot)

The PSP Go will be available on October 1, simultaneously in North America and Europe. It will cost $249.99. Hirai says "All PSP titles going forward will be digitally distributed on the PlayStation store, as well as at retail on (the UMD format).

11:42 a.m.: He also says that Sony's video service will be available natively on the PSP Go, making it easier than ever to download video to the device.

11:43 a.m.: Video content will be available from leading providers like Showtime, G4, E, Starz, and others. One big game that will be available on the PSP, will be "Gran Turismo."

11:50 a.m.: Hirai says "Gran Turismo" will be released for PSP on October 1.

Resident Evil comes to PSP with the Go

(Credit: Gamespot)

11:51 a.m.: Next up, Hideo Kojima from Kojima Productions comes onstage to introduce "Metal Gear Solid: Peace Walker" for the PSP.

11:52 a.m.: Kojima says the new game takes place 10 years after the events of "Metal Gear Solid 3." So it takes place in the 1970s.

11:59 a.m.: After a rousing video demonstration of the new "Metal Gear Solid" PSP game, Hirai thanks the audience and brings Tretton back on-stage. Tretton then introduces "Resident Evil: Portable," the latest title in a long-standing franchise. It will be available next year, and will be the first time the franchise will be available on PSP. Tretton says "Little Big Planet," "Hannah Montana," "Harry Potter," and a few other franchises will also be coming to PSP for the first time.

The PSP Go will also come in lavender

(Credit: Daniel Terdiman/CNET)

12:05 p.m.: Tretton says the PlayStation Network now has more than 24 million users who have collectively downloaded more than 475 million pieces of content. There are more than 200 titles available on the PlayStation store, 90 of which are exclusive.

He also says Sony is bringing almost 50 PlayStation 1 classic games to the PlayStation store this year, including "Final Fantasy VII," which is available as of today.

12:06 p.m.: Next up, Tretton talks about Sony Home, the company's online virtual world. He says Home now has more than 6.5 million users worldwide, and that the service is adding more than 100 virtual items each month.

Assassin's Creed demo

(Credit: Gamespot)

12:08 p.m.: Now, Tretton rolls a video to show the audience "what's on tap for PlayStation 3 this year." It includes clips from "Uncharted 2," "Infamous," "Madden NFL 10," "Final Fantasy XIII," "MAG," "Overlord II," "Batman: Arkham Asylum," "Brutal Legend," "Ninja Gaiden 2," "Mafia 2," "Karaoke Revolution," "Heavy Rain," "Battlefield 1943," "Hustle Kings," "Trash Panic," "Critter Crunch," "Tekken 6," "Red Faction Guerrilla," "Tiger Woods PGA Tour 10," "Dark Void," "G-Force" (The guinea pig movie, not Gatchaman), "Planet 51," "Gravity Crash," and others.

12:13 p.m.: But perhaps the biggest cheer of all came when "God of War II" came up on the video screen.

12:15 p.m.: Tretton announces a new PS3 exclusive: "Agent," from Rockstar Games, the creator of the "Grand Theft Auto" franchise. And then it was time to introduce "Assassin's Creed II."

12:21 p.m.: A long video played, showcasing the game's beautiful graphics and its innovative new weapons. The game will be available this holiday.

12:22 p.m.: Tretton then introduced a video showing some tidbits from Square Enix's forthcoming "Final Fantasy XIII."

Final Fantasy XIII demo

(Credit: Gamespot)

Final Fantasy XIV

(Credit: Daniel Terdiman/CNET)

Final Fantasy XIV demo at E3

(Credit: Gamespot)

12:26 p.m.: After the video, Tretton elicits shouts from around the Shrine Auditorium of "what?" when he announced that Square Enix would be releasing "Final Fantasy XIV" exclusively for the PS3 in 2010. He then introduces a video of "Final Fantasy XIV" and adds, jokingly, "So there's one that didn't leak out, huh?"

Then Tretton moved on to motion-control, and said "We're working to create an experience that's much closer to real life than anything you've experienced."

12:35 p.m.: Two demonstrators come up on stage to show how the system--still very much a prototype, they said--works. The controller can be used to direct game play including the wielding of swords, shooting darts, or in a first-person shooter mode. It can also be used to write with a high level of precision, and to paint as if with a paintbrush, or a spraypaint can.

It can also be used for subtle touch, such as carefully trying to knock over a series of dominoes.

12:39 p.m.: The controller has a real one-to-one relationship between the person wielding it and what is seen on-screen. And it also offers tension-based control, such as pulling back the string on a bow to shoot an arrow.

Sony shows off motion-sensor controls where a real person controls the avatar of a knight.

(Credit: Gamespot)

ModNation Racers

(Credit: Daniel Terdiman/CNET)

12:40 p.m.: With this system, Sony quickly joined Nintendo and Microsoft with an advanced motion-control system, and set off an arms race with this technology. Tretton says the system should be launched in spring of 2010.

12:42 p.m.: Then, touting the success of "Little Big Planet" on the PS3, and the fact that it's coming to PSP, Tretton announces that an entirely new "play, create, share" franchise would be coming to PS3: "ModNation Racers." (Watch the video of ModNation Racers' introduction on CNET TV.)

12:49 p.m.: The game features a wide range of creation tools, a high degree of physical realism and a lot of real-time physics. It also allows players to quickly add physical features to a racetrack, such as trees, water, even little sheep. All of that happens simply by dragging a pointer along the screen where players want to add the features.

And that means that players can build fully playable race tracks from scratch in a matter of minutes.

ModNation Racers will be released in 2010.

ModNation Racers demo

(Credit: Gamespot)

12:57 p.m.: Tretton then introduces another PS3 exclusive, "The Last Guardian," a beautiful-looking game from Masashi Kudo.

Next up, a video from "Gran Turismo 5," for the PS3, the latest iteration of the venerable franchise, and by the looks of the promo video, a very full-featured racing game.

Tretton says the game will be exclusive to PS3.

1:00 p.m.: Another big crowd-pleaser is next, a demo of "God of War III."

1:03 p.m.: A long video of "God of War III" showcases its impressive graphics and it seems the many passionate fans of the franchise will be impressed when the game is released.

God of War III gets introduced at E3

(Credit: Daniel Terdiman/CNET)

1:06 p.m.: "God of War III" is scheduled for release in the spring of 2010. In the meantime, the full demo and an additional 20 minutes of game play are available on the E3 show floor.

1:07 p.m.: And that's going to do it for Sony's presentation.

Check here for all our E3 coverage.

Johnny Chung Lee, the former Carnegie Mellon researcher known for finding creative ways to adapt the Wiimote, has revealed himself as one of the minions behind Project Natal, Microsoft's effort to add motion-sensing capabilities into the Xbox 360.

Lee, who is now a researcher at Microsoft, said in a blog posting that he has been working on the motion-sensing project.

"Now, I should preface by saying I don't deserve credit for anything that you saw at E3," Lee said in the blog, which he posted on Monday night. "A large team of very smart, very hard-working people were involved in building the demos you saw on stage. The part I am working on has much more to do with making sure this can transition from the E3 stage to your living room - for which there is an even larger team of very smart, very hard-working people involved."

Microsoft demoed Project Natal on Monday as part of its press conference at the E3 trade show. The technology allows a person to act as their own remote, with a depth-sensing camera capturing their motion, and software then translating it into actions.

Lee notes that he can't reveal anything beyond what Microsoft shared, but does talk a little about the technology that underlies Natal.

"The 3D sensor itself is a pretty incredible piece of equipment providing detailed 3D information about the environment similar to very expensive laser range finding systems but at a tiny fraction of the cost," Lee wrote. "Depth cameras provide you with a point cloud of the surface of objects that is fairly insensitive to various lighting conditions allowing you to do things that are simply impossible with a normal camera."

The hard work, he said, is then converting that cloud of points into human actions, something which requires some pretty sophisticated algorithms. That said, the work could lead in some even cooler directions.

"At times, working on this project has felt like a miniature 'Manhattan project' with developers and researchers from around the world to coming together to make this happen," Lee wrote. "We would all love to one day have our own personal holodeck. This is a pretty measurable step in that direction."

Before joining Microsoft, Lee gained attention for his projects using the sensor bar and remote of the Nintendo Wii to work as head-tracking devices, a multitouch user interface and more.

Lee has continued showing off his Wiimote projects since joining Microsoft, presenting at this year's Mix09 event in Las Vegas. (There's a video below, but it requires Silverlight.)

Update 2:25 p.m. I had a chance to chat with Lee briefly by phone.

For his part, Lee said he thinks Microsoft doesn't get the credit it deserves in the consumer arena.

"It's sort of a bummer that Microsoft gets kinds of a bad rap," Lee said. "It's a lot of very ambitious groups trying to do big things. Not everything makes it out the door."

Lee, who works in an applied science group that sits between the research and product arms at Microsoft, says that the company is working on some very cool stuff, though he could not go into a lot of details.

"I played a little bit with the depth cameras before Microsoft," he said. "The technology I have been able to play with since coming to Microsoft is a lot better."

Nintendo prepares for its annual E3 press conference.

(Credit: Daniel Terdiman/CNET)

LOS ANGELES--Microsoft on Monday set the tone for a newly revitalized E3 with the announcement of its Project Natal, a hands-free motion-sensitive controller for the Xbox. Now, on the heels of some less-than-stellar sales numbers, Nintendo has a chance to steal back the attention of the world's video game press, many of whom are on hand this week for the industry's most famous trade show. But can Nintendo do it?

This is our live blog of Nintendo's E3 press briefing, which kicked off shortly after 9 a.m. PDT at Club Nokia in Los Angeles. Sister site Gamespot will post a video of the presentation here later today.

9:02 a.m.: Nintendo is a little late starting. And Sony's briefing (which is scheduled for 11 a.m.) won't start until they get everyone bused over there from Nintendo.

9:09 a.m.: Nintendo of America executive vice president of sales and marketing Cammie Dunaway: Shigeru Miyamoto has been thinking about one new way to let you play a Mario game that has never been possible before.

9:12 a.m.: Nintendo starts its press briefing off with what may be its most anticipated new game: Super Mario Bros. for the Wii, a four-player version of the classic game.

It allows players to play major parts of the game in single-player mode, but then allows them to call friends over if they need help with a particularly hard level.

"We're happy to announce (the game will be available) worldwide holiday 2009," said Dunaway. "We know players will be lining up to play with and against each other in Mr. Miyamoto's newest masterpiece."

9:16 a.m.: Dunaway announces a new version of the 15-million-plus-unit selling Wii Fit. Called Wii Fit Plus, it is designed to help people design better workout routines. She said it featured 15 new balance games, and offers 6 new strength and yoga routines. "The key is how you mix and match different elements. You can combine it in any order you want."

She adds that Wii Fit Plus will be available this fall, and be offered as a bundle with the Wii Balance Board.

9:22 a.m.: Next, Nintendo of America CEO Reggie Fils-Aime takes the stage to announce the next version of the company's Wiimote, the Wii Motion Plus. A video shows a martial arts expert "chopping" a stalk of bamboo by slicing down with the controller, and an archer pulling back on a bow and shooting arrows.

Cammie Dunaway touts Nintendo DS sales.

(Credit: Gamespot)

9:30 a.m.: Nintendo showcases the way its Wii Motion Plus interacts with one of the games it announced at E3 last year, "Wii Sports Resort." The idea behind the new version of the controller is that it offers enhanced feedback, what they called "physical reality."

The idea is that the controller allows for much more precise, feedback-oriented motion. So, for example, a video that they showed demonstrated that players can, for example, slice bamboo with a slicing action, or shoot an arrow by "pulling back" on the bow. And the game itself begins with players skydiving from an airplane. Players use the controller to orient themselves in the air.

9:34 a.m.: Fils-Aime says, speaking about the new controller, "Every little mistake you make in the real world when you currently bury your backhand into the net...will be faithfully re-created in the game."

He adds, "We will have you muttering the same bad words you (usually say) in real life."

Fils-Aime says that "Red Steel 2" will be playable only with Wii Motion Plus control, and then, speaking about third-party support for Nintendo, says that last year, more third-party games were sold for the Wii and Nintendo DS than any other platform.

9:40 a.m.: Fils-Aime also talks about new integrations with traditional partners. He talked about Square Enix's forthcoming "Final Fantasy: Crystal Bearers" and another former hit, "Golden Sun DS."

He says that franchise "went dark" six years ago. This, as fans in the audience clearly were excited by, is a franchise that had been popular on Nintendo in the past, but had been put on the back burner.

9:42 a.m.: Dunaway comes back on stage and announces that mystery writer extraordinaire James Patterson is collaborating with Nintendo on "Women's Murder Club: Games of Passion," which will be released on October 13, by THQ.

It will "usher casual gamers and passionate readers into wider world of video games," Dunaway says.

Dunaway talks about Mario and Luigi franchise

(Credit: Gamespot)

9:48 a.m.: Moments earlier, Fils-Aime touted the next Mario and Luigi game for DS, "Mario and Luigi: Bowser's Inside Story." He said it would be available this fall.

Then Dunaway talked about the success of Nintendo's DSi handheld. All told, the DS line has sold more than 100 million units. She said that when the company put out the new DSi, "We predicted it would naturally complement DS Lite. So far, that's exactly what's happening. As of today, total DSi sales in North America have surpassed 1 million units. (And consumers) have purchased another 400,000 DS Lites."

9:51 a.m.: Dunaway says that starting this summer, DSi owners will be able to upload and share their photos on Facebook.

She then shifts directions and says the game that Satoru Iwata announced at the Game Developers Conference in March, "Legend of Zelda: Spirit Tracks," would be playable on the show floor at E3 this week. She does not give a release date, however.

9:53 a.m.: Iwata takes the stage to talk philosophically about Nintendo's advances in video gaming.

Satoru Iwata at E3

(Credit: Gamespot)

9:55 a.m.: Iwata says that Nintendo has been examining how to expand the video game audience. He says that in Japan, the United States, and six European countries, there are currently 295 million game players. But he says there are also 149 million people who "say they might be interested in getting involved."

"For every two people now playing, there's now one more just waiting to jump into the game. Imagine the opportunity if the number of players were 50 percent larger than it is right now. (It shows) we still have a long way to go in expanding the gaming population."

10:03 a.m.: "Most of the games we talked about today are familiar even to non-gamers," said Iwata. "So, what's next? I thought, I should give you at least one potential answer. So today, as a sneak peek, I'd like to show you another entirely different way of thinking about games. With Brain Age, Nintendo proposed training your brain. With Wii Fit, using balance to train your body."

Nintendo's Wii Vitality Sensor

(Credit: Gamespot)

Then, he offers the first look at Wii Vitality Sensor, which collects signals being broadcast by our bodies.

"For example, how nervous am I up here on this stage today?" Iwata joked. "How focused am I on remembering my script? Just as we enable you to center your body with Wii Balance Board (with) Vitality Sensor (we can) see information relating to inner world of your body. People will be able to use the product we're developing with (this)...to achieve greater relaxation.

10:03 a.m.: Dunaway announces another full Mario game, "Super Mario Galaxy 2."

10:09 a.m.: Fils-Aime is back on stage to announce a series of new third-party titles.

First, he talks about a Sega title created just for Wii, called "The Conduit." Next up is Capcom's top-selling "Resident Evil" franchise, and announced that in "Resident Evil: The Darkside Chronicles," Wii players will "see familiar characters in a new light."

And he says Electronic Arts has been working on "Dead Space: Extraction," the latest version, for Wii only, of the "Dead Space" franchise.

10:11 a.m.: "And what about Nintendo?" Fils-Aime says. "Could a new, edgier game be coming from us? Absolutely."

He explains that Nintendo has commissioned Team Ninja to work on a new Nintendo title, "Metroid: Other M," which will be available in 2010.

A new Metroid game for the Wii is considered "edgy" by the company.

(Credit: Gamespot)

10:13 a.m.: And that's it for Nintendo's press briefing.

We're heading over to Sony's presentation now. You can follow our live blog of that event, scheduled to start at 11 a.m., here.

Microsoft stunned the video game world on Monday with the announcement of its forthcoming 'Project Natal' technology, full-body motion-sensitive technology that should allow gamers to do what they want without holding on to any hardware.

(Credit: Daniel Terdiman/CNET)

LOS ANGELES--For those of you who have been waiting for some really big news to come out of the video game industry, Microsoft answered your call Monday with its innovative "Project Natal," a hands-free motion-sensitive controller system.

Announced during Microsoft's annual E3 press conference, Project Natal seems almost certainly to be the culmination of several years of work by an Israeli start-up called 3DV Systems, which Microsoft recently acquired.

The technology, as demonstrated (see video below), appears geared toward allowing users to control games, movies, and anything else on their Xbox system with their hands alone, and without touching any hardware.

A prototype of 3DV Systems' motion-sensitive video camera, the technology that is most likely behind Microsoft's Project Natal, which it announced at E3 on Monday.

(Credit: Jared Kohler/CNET)

Now, in what is clearly an attempt by the Xbox maker to significantly broaden the potential reach of the console and its Internet component, Xbox Live, Microsoft is betting that it can finally impress many of the millions of people who would never, ever consider themselves gamers but who somehow ended up with a Nintendo Wii in their homes.

How did Nintendo manage to break that barrier? By building a new-style motion-sensitive controller system that allowed users to direct game action by waving the controller around. To swing an in-game tennis racket, you swing the so-called Wii-mote like a tennis racket. To play a bowling game, you swing the Wii-mote in a bowling motion.

Natal, by comparison, provides much of that same functionality, but without having to hold on to the controller. Want to kick a ball in a game? Then make a kicking motion. Want to buzz in in a game show setting? Smack your fist into your hand. Want to share a drawing with an in-game avatar? Draw it and then hold it up to the Natal camera. As seen on-stage at E3, at least, it's all very simple, and very seamless.

So is Project Natal Microsoft's answer to the Wii-mote?

"And beyond, yeah," said Forrester principal analyst Paul Jackson. "Obviously, we've all got, in the game industry...a huge debt to pay to Nintendo for shaking things up a bit with the Wii, and for moving beyond the 37 button controller. This is taking things to the next extreme. Because even with the Wii, you still have (several) buttons, start and select. It's still a physical controller."

Added Jackson, Project Natal looks likely to "remove that final barrier between you sitting in your room and...what's on your screen."

Even given all that, however, a successful Natal launch is unlikely to knock Nintendo from the top of the next-generation console perch. The Wii's install base is huge, loyal and, in many cases, wary of Microsoft. And at the same time, one would have to expect that Sony, too, will be trying to get on the board with a full-scale motion-sensitive system.

Too early to tell
While there's no doubt that Microsoft caught everyone's attention with the Project Natal announcement, it's by no means certain that it will be a business success. For one, the company gave no indication of when the technology would be in users' hands. Nor did Microsoft say whether it would be sold as an Xbox accessory or be bundled with the console.

Microsoft Xbox Senior Vice President Don Mattrick did state that Project Natal would be compatible with every Xbox 360. But he didn't address how much it would cost, or whether it would be backward compatible with older Xbox 360 games. And afterward, Microsoft could not provide any additional details about the technology.

What this all means, then, is that while it's very clear Microsoft has some seriously cool technology on its hands, there's no way to judge--based on what we know right now, at least--whether Microsoft can successfully integrate Natal into its larger Xbox ecosystem. Still, given the company's deep pockets, and its traditional dedication to making new technology dominant, no matter how long it takes, I'd bet on Bill Gates & Co., having a winner with this one.

For one thing, Microsoft will finally have a response to the question of whether it can truly reach the mainstream. At the same time, however, it must find a way to attract that new audience while not alienating its core audience.

That's why Jackson said that no matter what happens with Natal, Microsoft is unlikely to abandon its traditional controller. It has to keep those core gamers, the ones who simply have to have their regular "Halo 3" gaming sessions, happy.

Jackson predicted that initially, Microsoft will sell Natal--or whatever it's called upon its release--in the $99 range. He pointed out that traditional controller systems come in the $50 range, but that Microsoft is going to have to pack some serious high-tech into Natal--a motion sensor, sophisticated directional microphones and video cameras.

SDKs begin arriving
On-stage at E3, Mattrick said that the Project Natal software development kits had just gone out. This means that while most of the video game world is in Los Angeles this week for the show, few people have had a chance to see it.

One who did get a sneak peek at Natal is Epic Games Design Director Cliff Bleszinski, the visionary behind "Gears of War."

"I had a chance to be hands-on with (Natal) a couple weeks ago," Bleszinski told CNET News, "and it was damned fun." But even Bleszinski said he hadn't gotten his hands on a SDK yet, and wasn't able to say anything about the development process.

Director Steven Spielberg came on-stage during the press briefing to praise Microsoft's approach to the mainstream audience with Project Natal.

(Credit: Daniel Terdiman/CNET)

And while one should always take what is said during a press conference with a grain of salt, one would think that someone like legendary film director Steven Spielberg wouldn't heap praise on anyone or anything unless he really meant it. And when he came on-stage during the briefing Monday, heap praise on Natal is exactly what he did.

"I've been asking the crucial question: how can interactive entertainment become as approachable as other forms of entertainment?" Spielberg said. "The vast majority of people are just too intimidated to pick up a video game controller...Despite the size of (the video game) industry, still 60 percent of households do not own a video game console...The only way to bring interactive entertainment to everybody is to make it invisible."

So now we wait. Jackson said given the time frame of the SDKs and how long it takes developers to bring games to market, it would be unlikely that we would see Natal in gamers' hands before the middle of next year. In fact, given that time frame, E3 2010 may be a perfect place for Microsoft to formally launch the technology.

And whether it chooses to do so, it seems guaranteed that when Microsoft takes the stage for its E3 2010 press briefing, it will have some very big news in its pocket.

The big news from Microsoft' E3 press conference was clearly its "Project Natal" motion sensing technology.

We're pretty sure that it is based on technology from 3DV systems, an Israeli start-up that we wrote about some time ago. I'm hearing that Microsoft has in fact, acquired the company, as has been reported. I have yet to get that 100 percent confirmed, however.

In any case, here's a video from Microsoft showing the technology in action.