Tokyo Game Show packed amid next-generation console hype

CHIBA, Japan (AP) - Japan's biggest gaming event, the Tokyo Game Show, was packed this weekend, a sure sign the battle among Sony, Microsoft and Nintendo to woo fans to their games consoles is heating up. Sony Corp.'s PlayStation 3 and Wii from Nintendo Co. are both set to go on sale later this year, joining Microsoft Corp.'s Xbox 360 which hit Japanese stores last year.

But analysts said the year-end shopping season may be too early to declare a winner and price might be the key weapon in the three-way console war.

"It's not going to happen overnight. This is a five-year-battle," said Hiroshi Kamide, director of research department at KBC Securities Japan in Tokyo, saying at least 18 months are needed before a likely market leader emerges.

Like thousands of others thronging the annual industry event that runs through Sunday, Satoshi Yamakura was hoping to get his hands on one of the next-generation consoles and a slew of new gaming titles.

But after a day spent trawling the stalls and trying out the latest technology, he is still undecided. And price seems to be the biggest factor.

"If I decide to buy one, I'll probably buy the PS3," the 21-year-old student said.

"But it's still too expensive."

And it seems console makers are listening to their customers.

At the gaming show, Ken Kutaragi, head of Sony's video-game business, announced a 20-per-cent cut in the price of the 20-gigabyte PlayStation 3 model to the equivalent of about C$460.

That puts the PlayStation 3 in the same price range as a combined basic Xbox 360 and external high-definition DVD player, which Microsoft recently announced it's introducing for the Xbox.

It is the first time Sony has ever announced a pre-release price cut. U.S. and European prices are unchanged.

Even at the new price, PS3 may be a bit steep for some game fans. Yamakura and his friend said they would wait until the price drops by at least 20 per cent. PS3 will arrive in Japanese stores Nov. 11.

"The PS3 has absolute graphics quality and absolute pricing," said Hirokazu Hamamura, president of video games magazine publisher Enterbrain Inc.

"Just because people say they want it doesn't mean they're going to buy it. Most people are going to buy it when the price comes down."

Microsoft's bare-bones Xbox 360 - available in Japan in November - will retail for the equivalent of C$285, about $95 cheaper than its standard version. The external HD DVD player for the Xbox 360 has roughly the same capabilities as PS3's Blu-ray disc.

Nintendo is offering Wii at a relatively cheap US$250 in the United States and 249 euros in Europe.

Kamide, the analyst, believes Wii could emerge the surprise winner because of its pricing, as well as its potential to appeal to gaming novices with its wandlike remote control that's swung around like a tennis racket or fishing rod.

Nintendo lost out in the earlier home console battle with its GameCube, although the Kyoto-based manufacturer has scored success with handhelds, including Game Boy Advance and the more recent Nintendo DS, which comes with a touch-screen panel.

Analysts said initial shipments of the next-generation consoles are likely to sell out because supply isn't sufficient to keep up with demand from hard-core gamers.

Sony, which is planning to ship six million PlayStation 3 machines by the end of March 2007, has said it will only have 400,000 PS3 machines in the United States and 100,000 in Japan for their launches.

Nintendo plans to sell six million Wii consoles during the fiscal year ending March 2007 but has declined to say how many machines will be available on the first day.

Software manufacturers are also waiting for the shake-down, as consumers have held off on buying new games until they waited to see what was in the works with next-generation consoles.

Big names in the software business, including Electronics Arts Inc., reported slumping earnings, while others such as Namco in Japan, of PacMan fame, were forced into mergers.

"Each console is so unique, allowing consumers to pick and choose their way of enjoyment," Takashi Sensui, who heads Xbox operations in Japan, said.

"This is going to lead to a revitalization of the entire gaming industry."

Sensui said Microsoft is serious about pushing Xbox 360 in Japan, Sony's home turf, where Microsoft has long struggled and is investing heavily in role-playing games by star Japanese game designers, including "Blue Dragon."

Adam Sessler, a game expert with U.S. cable network G4 who was in Japan for the show, believes PlayStation 3 no longer has the leadership position it once had and is likely to face a tough job fighting rivals this time.

The pricing could hurt PS3 sales, Microsoft is planning attractive games for Xbox 360 and Wii is offering innovative entertainment, Sessler said.

"If you still don't know which console to get, wait and see," he said.

"Give it another year."

© The Canadian Press, 2006