E3 is a trade show, like a car show. And like a carshow the only people going there and covering it are fans, and the people covering it are doing so for the fans that cannot be at the show to see. Like also a car show it is a place for investors to be reassured with their investments into a company, thats why the big 3 at E3 have to talk about sales, growth, and revenue to keep investors or stock holders happy. But also like a car show it's also a place to get hype and praise. Showing the new Gears of War or FF13 for 360 is like showing the newest Lexus ISF or Austin Martin. Stuff like that is nowhere in the radar of peoples minds except for fans and people able to buy it. Hence you should only show stuff like Gears of War and the newest FF13 for 360 because thats all people are caring about. The people playing Wii Sports and Wii fit are not the people demanding IGN and Gamespot to brodcast this show live and have round the clock coverage of the show. E3 is clearly directed to the hardcore in mind, so while that eye toy ripoff is certainly interesting, it's not the kind of game that the audience is looking for.
The reason why Nintendo's E3 conference was a complete failure to people was because they were going in a direction with no apperent audience in the vicinity. Any preformer or director knows that the audience is the people who matter. They watch your show, they talk about the show, and they evaluate your show. It doesn't matter how well they presented their casual games because the casual audience was not at E3.
In the end the purpose of E3 is for hardcore gamers to get annoucments and hyping potential game of the year games, and stock holders to be assured for their company's future.
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