Nintendo Wii U

Game changer?
It was easily the most newsworthy and creative offering at E3 yet, surpassing the news from yesterday's Microsoft and Sony briefings. And even though there were few specifics about the console for the public, Nintendo partners lined up to rave about it for the company's presentation.

The chief executive of Electronic Arts, John Riccitiello, joined Nintendo executives on stage--the first time he's done that at E3, he noted.

"What brings us together today is a breakthrough in our relationship based on a stunning new breakthrough in game play," Riccitiello said.

He envisions gamers using the Wii U to call plays in football on the small controller while playing the game itself on the larger TV screen. And he expects to use the online features to let EA gamers connect to online content and extend their play to social networks.

In April, Nintendo announced plans for the new console. The company put out a three-paragraph statement, offering few details.

Money matters
Much is riding on Nintendo's new hardware. The game company has suffered financially of late, posting a 29 percent drop in revenue to $12.3 billion in its fiscal year that ended March 31. Earnings slid 66 percent to $946.7 million.

Those problems start with the lagging performance of the Wii. Even though it's the reigning console champ, having sold 86.7 million units worldwide compared to 54 million Xbox 360s and 50.6 million PlayStation 3s, according to independent analyst VGChartz.com, the Wii's sales have been in decline.

In the last fiscal year, the once ground-breaking console sold slightly more than 15 million units, down from 20 million sold a year earlier. By comparison, Microsoft's Xbox 360 sales continues to grow year-over-year. Sales of Nintendo's DS handheld slid to 17 million units, down from 27 million.

And Nintendo doesn't expect improvement this current fiscal year. The company has said it expects to sell 13 million Wii units and 11 million DS units worldwide in the period.

Even its newest hardware, the 3DS, a handheld that offers 3D images without the need for special glasses, has underperformed. Nintendo missed its target of selling 4 million 3DS units in the last fiscal year, selling just 3.6 million devices.

Last week, Nintendo announced plans to update the software running the 3DS on June 6. The upgrade includes a new Web browser and Nintendo's eShop content-downloading service.

At the briefing, Nintendo of America President Reggie Fils-Aime showed a handful of new titles for the 3DS including Nintendo mainstay Mario Kart.

"It's a game you've enjoyed for years, but it's a tricked-out version you haven't seen before," said Fils-Aime.

Nintendo will also offer Luigi's Mansion and Kid Icarus games on the 3DS as well.