Mon, Jun 08, 2009 | 13:32 BST
Pachter: Microsoft had the most impactful E3 presentation

Wedbush Morgan’s Michael Pachter has issued a note hailing Microsoft as the winner of this year’s E3 claiming that Microsoft had the most “impactful presentation of the three console manufacturers.”
“Much of the big news of E3 had been leaked well before the event, with many stories previewing motion technology introduced by Microsoft and rampant leaks in advance of Sony’s new PSP Go,” says the research note. “Nintendo managed to keep most of its big announcements a secret ahead of the show.”
“We thought that Microsoft had the most impactful presentation of the three console manufacturers, with an expanded offering of traditional games (Halo Reach, Final Fantasy XIII, Metal Gear Solid Rising) and the new motion controller Project Natal. The company also showcased the new Rock Band Beatles game, and trotted out several big name celebrities.”
“Sony’s presentation was full of content, although somewhat long, with major announcements of the new PSP Go and a new Final Fantasy XIV game exclusive.
“We were surprised at the $249.99 and €249.99 price points, and think that after a rush of fanboy purchases, sales of the device may stall. Sony did not cut the price for the PS3 or for the existing PSP 3000.”
Full thing after the break.
WEDBUSH MORGAN SECURITIES
Michael Pachter (213) 688-4474
Edward Woo, CFA (213) 688-4382
Entertainment Software: E3 2009 Review: Glitz and Glamour Showcase a Vibrant Industry
o We attended the E3 Expo last week in Los Angeles, CA, and met with over a dozen companies presenting products at the show, including Sony, Nintendo, Microsoft, Activision Blizzard, Electronic Arts, Take-Two Interactive, THQ, and Ubisoft.
o Non-traditional game software and technology was the popular theme of the show, with many companies working on new games for the casual market and new motion technology in order to expand the video game demographic beyond young men.
o Much of the big news of E3 had been leaked well before the event, with many stories previewing motion technology introduced by Microsoft and rampant leaks in advance of Sony’s new PSP Go. Nintendo managed to keep most of its big announcements a secret ahead of the show.
o We thought that Microsoft had the most impactful presentation of the three console manufacturers, with an expanded offering of traditional games (Halo Reach, Final Fantasy XIII, Metal Gear Solid Rising) and the new motion controller Project Natal. The company also showcased the new Rock Band Beatles game, and trotted out several big name celebrities.
o We think that Nintendo had the least impactful presentation, with only one new hard core Wii game this year (a new Mario). Nintendo also previewed another Mario game and a Metroid game for next year, and later announced a new Zelda game. Nintendo’s content offering is quite broad, with a balance of hard core and casual games for both the DS and the Wii.
o Sony’s presentation was full of content, although somewhat long, with major announcements of the new PSP Go and a new Final Fantasy XIV game exclusive. The PSP Go is a download-only device with 16Gb of flash memory and a memory stick slot that allows for unlimited game, movie and music downloads. We were surprised at the $249.99 and €249.99 price points, and think that after a rush of fanboy purchases, sales of the device may stall. Sony did not cut the price for the PS3 or for the existing PSP 3000.
o There were few surprises on the software front, with most of the publishers showcasing games that had previously been announced. Activision had the most impressive presentation (and party) of the publishers, in our view, showing highly polished content. We were impressed by Tony Hawk Ride and Modern Warfare 2. We were similarly impressed with Ubisoft’s showing, focused on a mix of hardcore and casual games. Electronic Arts also impressed with Dragon Age and Dante’s Inferno.
o We viewed demonstrations of several games at the show, and were most impressed with Rock Band Beatles, Tiger Woods Wii, Avatar, Assassin’s Creed 2, Blur, Modern Warfare 2, Super Mario Bros. Wii, and Bioshock 2.
o The show was much larger than the past two years, and we believe that the former spectacle of E3 is back. The Los Angeles Convention Center hosted over 40,000 attendees (as compared with 5,000 the past two years and 80,000 three years ago) and attracted a lot of media attention. E3 2010 is scheduled for June 15 – 17, 2010.
o We expect modest share price appreciation for the major video game publishers to come out of E3, given that most in attendance were favorably impressed with the publishers’ showing. We recommend that investors add to positions of Activision, Electronic Arts, GameStop, Nintendo, Take-Two, THQ, and Ubisoft.


41 comments
#1
tenthousandgothsonacid
08/06/09, 1:44 pm
‘impactful’ ? And americans wonder why we hate them so much.
Okay, so the president’s improved but the use of english hasn’t.
#2
Mike
08/06/09, 1:46 pm
Impactful is an American English word. You do know that British English and AmE are two similar, but different languages, right?
#3
Prof Power Glove
08/06/09, 1:46 pm
I think I hate Michael Pachter – who’s with me?!?
Not surprising Microsoft got the most stories out of their announcements, they probably had double the budget (and whooping) then both Nintendo and Sony combined.
I gringed when Ringo Starr and Paul McCarts were up on stage. Heather Mills next time, please.
#4
blackdreamhunk
08/06/09, 1:47 pm
they are also saying that micro soft has the biggest somke and mirrors
http://gamer.blorge.com/2009/06/07/exposed-natel-milo-smoke-and-mirrors-by-peter-molyneux/
#5
tenthousandgothsonacid
08/06/09, 1:55 pm
“You do know that British English and AmE are two similar, but different languages, right?”
We have English. They have a bastardized rip-off they call american-english.
You know that if you give up your english passport and get an american green card the queen doesn’t officially recognise it and you’re still legally english in the uk ?
Well, in the same way, that language they speak is not english. It’s american.
#6
DrDamn
08/06/09, 1:57 pm
Considering who they had I think double the budget is an understatement.
I actually thought that Sony had the louder “whooping and hollering”. Lots of pause for applause in parts of the MS conference met with silence and a bit too much self clapping going on too. Not that “whooping and hollering” is a proper indication of goodness – most of it seemed largely inappropriate and badly timed. Bit like the bloke who follows Tiger Woods around shouting “Get in the hole!” at every opportunity.
#7
No_PUDding
08/06/09, 2:00 pm
Mike agrees with Pachter:
http://www.strategyinformer.com/editorials/4506/e3-2009-why-microsoft-won
Seriously, you should read this.
#8
tenthousandgothsonacid
08/06/09, 2:01 pm
“Bit like the bloke who follows Tiger Woods around shouting “Get in the hole!” at every opportunity.”
I love that guy.
Is he implemented in the EA Tiger games or would I have to shout it myself ?
#9
Quiiick
08/06/09, 2:03 pm
Like “Shue” said in yesterday’s episode of GT’s “Bonus Round”:
Microsoft made a better presentation, but Sony had more substance.
So PR-wise Microsoft surely won but Sony’s offering of games was slightly superior.
#10
XDamage
08/06/09, 3:44 pm
Houdini would have liked the MS presentation.
#11
Goliath
08/06/09, 5:01 pm
@ blackdreamhunk
Please don’t ever link another article from Gamer.Blorge.com. They’re the biggest PS3 fanboy site on the web and that’s a hard title to claim. Milo was demoed behind closed doors by numerous other gaming media who had nothing but glowing reviews of the currently in development tech. Shane Satterfield is an idiot who exposed his own close minded expectations of what Milo was.
#12
theevilaires
08/06/09, 5:49 pm
goliath you’ve just painted yourself as an xbot, Satterfield is one of the most non bias person in games media. i’m sure if garratt tried out milo, it would be like hearing jesus speak right. you dumb ass noob stfu.
#13
Mike
08/06/09, 5:54 pm
Look at top of page: http://www.eurogamer.net/articles/eurogamer-best-of-e3-2009?page=2
#14
Goliath
08/06/09, 6:19 pm
@ theevilaires
Shane Satterfield is the furthest thing from unbiased. This is a guy who openly admitted to giving a game a low review score because he was not a fan of the genre even though he could find nothing wrong with the game’s gameplay mechanics or story. That’s an idiot. Every episode of Invisible Walls he never fails to surprise me with the “ass”inine things he lays claim to. The fact remains, many had the opportunity to demo Natal behind closed doors and many, many in the gaming media spoke highly of the tech, its implications and possibilities. Milo isn’t artificial intelligence, it’s scripted with reactions based on auditory recognition. This was made pretty clear so to have expectations that it was anything else makes him misinformed. Now please crawl back into your hole troll.
#15
theevilaires
08/06/09, 6:55 pm
how was that made pretty clear? did M$ say this at the beginning of the milo presentation, i don’t think so. They came out with the truth when real people (not M$ employees) tried out milo just to see it was smoke and mirrors.
Plus this is being developed by the same guy who begged gaming sites to give Fable2 a good review score. I called it when i first saw it. P. Natal is just like a McDonalds commercial, when you go to buy the burger it looks nothing like it does on tv HA!
and to Mike about best tech, give me a fucking break. Sony showed eye pet where you make a drawing of a car on a blank piece of paper. Then the playstation eye scans it (sounding familiar now) and it shows up in the game and you can control the drawn car with you DS3. All this M$ Natal bullshit is technically old because sony showed it first just in a different way.
You forget the xbox vision camera is shit compared to the playstation eye, unlike the vision camera it has a mic with better sound quality and a higher resolution for better visual quality. M$ had nothing to compete with it.
Have you played Eye of Judgment? The camera scans the cards and a 3d character appears on the screen.
You people who think Natal is the future need to give Sony its recognition for starting this kind of gaming interaction, like M$ started online gaming on consoles with xbox live.
#16
Mike
08/06/09, 7:12 pm
But the people who liked Natal are the ones who actually experienced it first hand. So I’m sorry, I’m gonna trust them for now.
#17
theevilaires
08/06/09, 7:18 pm
all i’m going to say is time will tell, lets just wait a year so they can perfect the “milo script”
#18
Mike
08/06/09, 7:20 pm
It’s not just Milo though. It’s the whole thing.
Anyway, you’re not convinced. That’s cool.
#19
Goliath
08/06/09, 7:21 pm
@ theevilaires
Dude, you’re the most consistent anti-Microsoft poster I’ve come across on this site so I don’t expect anything less from you. Natal is an evolutionary step from accessories such as the PlayStation Eye Toy and XBox 360 vision camera but I shouldn’t expect you to give credance to its potential over your own biases now should I? Need to give Sony credit?! You’re basically saying the technology should be dismissed because Sony experimented with the technology first, even though they chose to follow rather than pioneer. Natal opens many possibilities for the non-gamer by eliminating the controller, one of the biggest hinderances to an accessible experience for the casual gamer. What people see and applaud is it’s potential. Seems to be a bit of, “wished we’d thought of that instead of the MiiStation Sex Toy” in your post.
#20
willamallu
08/06/09, 8:19 pm
Can someone please point out what it is Natal can do that the PSeye cannot (don’t know enough about either) and what the hell is Milo and what is its purpose?
#21
Mike
08/06/09, 8:21 pm
Facial and voice recognition tech. Or does PSEye have that?
#22
Shatner
08/06/09, 8:31 pm
It’s all fucking useless.
Good games are NOT about gimmicky controllers. It’s like judging the qaulity of someone’s ability to write based on the font they’ve chosen.
It misses the point by miles. And, thanks to Nintendo’s propaganda for the last few years (and a desire to ignore the consistently low review scores for software on their platforms) too many people forget what *gameplay* is.
Arguing about fucking facial recognition is really, REALLY missing the point. Jesus.
#23
Gekidami
08/06/09, 8:45 pm
Yeah, you’re missing the point Jesus.
Couldnt resist.
#24
Mike
08/06/09, 8:50 pm
Jesus is love.
#25
Cort
08/06/09, 8:57 pm
Even Kotaku (well-known anti-XBox PS3 fanboys, NOT) said that a developer was manipulating Milo while they were ‘playing’ it. The thing was bullshit. The bit where she handed over the paper with a drawing she pretended to do? She presented it to the camera at an angle and the software immediately knew it’s exact size and shape as well as what was on it? Bullshit. It didn’t even track her hands in the pond properly. Natal recognises colour and Milo has scripted lines to respond? Wow, decades old tech.
Another thing revealed by several journalists: you can only talk to Milo when prompted on-screen.
Give it up. Yes, it looks awesome, but what was shown was pre-programmed and scripted. My ten year old sister could see that. People bitched non-stop for two, three years about Sony’s KZ2 target renders and we’re expected to ignore this?!
And voice or facial recognition is not done by hardware Mike, I’m sure PS Eye could do both if the software engineers wanted it to. People said the PS Eye would never be able to do any depth perception but they’ve got it working in EyePet.
#26
Mike
08/06/09, 9:00 pm
Oh ok. I didn’t know.
#27
Gekidami
08/06/09, 9:02 pm
You mean software Cort.
#28
Cort
08/06/09, 9:07 pm
Sorry Gek, you’ve lost me.
#29
Gekidami
08/06/09, 9:09 pm
Oh sorry, i thought you said “IS done by hardware” didnt see the “Is not”.
#30
theevilaires
08/06/09, 9:10 pm
the miistation sex toy thats funny, every one knows we could call the xbox a lot of names so i won’t waste my time going there and are you really calling sony copy cats. You need to check M$ history “buying other companys inventions” track record. Trust me its longer than your buddy between your legs.
Wheres the bias in my post, i fail to see any. the xbox vision cam is shit compared to the playstation eye: FACT, look up that meaning. List something bias i said, i’m going by what i have seen and experienced in the past.
I came at you because you felt the need to tell blackdreamhunk he should’t be allowed to report someone’s opinion. Who the FUCK ARE YOU! Then you say “Shane Satterfield is an idiot who exposed his own close minded expectations of what Milo was.” Does close minded expectations mean he thought he would be able to walk up to milo and say anything like M$ was trying to put off during E3 to make their conference seem that much better? It was smoke and mirrors get over it.
If it wasn’t it would have been on the show floor, think about it. Never mind don’t think about it i’m being closed minded with that expectation.
My last thing to you, Don’t ever in your life time think you can come at me with your bullshit. You want to make a name for yourself on this site, talk shit to someone else.
Your screen name may be Goliath but my real name is DAVID. I will rip off your head and shit down your throat dude. I will own your noob ass so bad every time you see a xbox360 you will cry.
As far as Mike goes i’m not saying the whole P. Natal is a waste of time. I’ve said it before and i’ll say it again the tech is just eye toy 2009. Whats the big deal. You people act like this is going to replace hand controllers WTF. It will be nice to implement certain aspects of it in games like i know M$ will. But really its just eye toy next. And when sony does it everyone will say they copied.
Milo is another thing. i saw the Milo video when the girl interacted with the demo. My point is during that video at certain points the vid would cut to Peter and he would say “now look at this, the character is blah blah blah, but one thing he didn’t mentioned was that milo is a very well scripted program not super A.I. like they tried to put off at E3. http://www.youtube.com/watch?v=4Z_lYuX_nz4
He keeps talking about the girl, oh look at the girl she caught the goggles, give me a fucking break, who is he trying to fool. She felt the need to reach out and grab the goggles LMAO…only M$ comes up with this stuff.
another great M$ quote: “things break”…LMAO. sorry for jumping off topic but man, someone speaks the truth about Milo and they are considered bias? well your buddies at euro gamer are bias mike. I’m not saying you called Shane bias, I’m saying assholes like goliath are calling your friends bias as well as shane.
Many people have said M$ was doing something behind the scenes when they demoed Milo including the good folks over at GiantBomb. If you’d have tested Milo out for yourself Mike then I would have believed in this ground breaking game changer but you haven’t yet so I believe Shane. He’s got more pull in the industry and has a lot of face to lose if he was lying on the matter. As far as the other stuff its cool but its just eye toy 2009 stuff.
#31
Cort
08/06/09, 9:17 pm
There’s some good analysis here. Yes, it is at a PS3 site, but it is no anti-360 rant.
http://www.thesixthaxis.com/2009/06/05/milo-mini-man-or-massive-myth/
http://www.thesixthaxis.com/2009/06/04/project-natal-deconstructed/
#32
David
08/06/09, 9:27 pm
I just want to sigh, anyone with half a brain could tell that nearly everything that was shown of natal was mock up or at its very early stages.
I think if Microsoft can get it to work like how its shown to work in the mock up videos it will be pretty dam sweet and a welcome change.
Even without Project Natal Microsoft had a pretty awesome E3.
#33
Shatner
08/06/09, 9:36 pm
You’re still missing the point girls. But don’t worry. You can cry about it later when your ridiculous expectations are not met and the games still suck in spite of such excitingly gimmicky controls!
Tee hee! Flippant remark followed by whiney bullshit! Giggle!
#34
Mike
08/06/09, 9:44 pm
Yeah, David. Agreed. Most people I know of who’ve experienced Natal first hand weren’t “fooled” by it.
But it wasn’t just MS that had a great E3. Sony and Ninty too.
#35
fearmonkey
08/06/09, 9:52 pm
@cort – said that a developer was manipulating Milo while they were ‘playing’ it.”
The software on the laptop was doing the body and joint recognition, the developer wasnt Manipulating Milo in any way. The actual demo was mostly, if not all, PC based.
Im not defending it, just saying what I have heard.
This was stated on a few websites, I think Kotaku or Gizmondo.
On a side note.
Im personally excited about the head tracking options for games like the TrackVR for PC has.
http://www.youtube.com/watch?v=nElijjwP2L0&feature=related as an example.
I don’t care who has the better technology, it’s what they do with the games. I thought the PS3 stuff was neat, the bow stuff was awesome. I would love to play an RPG game where I could use that.
What has been amusing is watching all the fanboys lash out in favor of their favorite. If Sony has the best tech, good for them, i hope it sells more PS3′s. IF the Xbox works better, good for them, I would like to see more uses for the natal than just Wii game clones.
I have been waiting for a reason to buy a PS3, and with that demo, and the last guardian video, Im alot more interested now.
I’m an RPG person, not really a JRPG fan though, and the Xbox has been better for those style games. The PS3 has some good ones coming now, it’s looking more and more interesting to me.
#36
David
08/06/09, 10:00 pm
“The actual demo was mostly, if not all, PC based.”
Games are developed on PC’s
#37
Mike
08/06/09, 10:00 pm
Good point: apart from Dragon Age and Mass Effect: were any new RPG’s announced for PC/360/PS3?
I don’t remember seeing any.
#38
fearmonkey
08/06/09, 10:18 pm
Yeah, The PS3 has a promising title, though the name escapes me.
Arcania was shown at E3, coming to the 360 and PC, and I believe the PS3. It’s the next title in the Gothic series, they have dropped the Gothic name for this one.
I didn’t see anything regarding Two Worlds:The Temptation, I hope it’s on track. I liked the first one quire abit, though the reviews were terrible.
I’m really enjoying Sacred 2 right now. The Blind Guardian Appearance – Quest lines are awesome. Since I’m a fan of them, it’s really cool
After you complete their quests, you get their instruments as weapons. As a bassist, it’s kind of cool for my character to wield a flaming bass guitar axe lol.
#39
Ingenu
09/06/09, 6:53 am
Haha looks at the playgirl and xbot fanboi rage and tears on this little thread. Lol, just lol.
#40
Ingenu
09/06/09, 6:54 am
The gaming console you bought is different than the next guy. Get the fuck over it ‘tards.
#41
Mike
09/06/09, 7:12 am
Nice one fearmonkey. I’ll look them up.