Electronics, E3 | featured news

For Apple and Zynga, this E3 was a magical event. Microsoft, Sony and Nintendo all retreated within the crumbling walls of aging franchises and spin-off sequels. Under attack from mobile and social games, the Big Three console vendors are stumbling through the year 2012. Nintendo had a notably disappointing Wii U showcase and Sony’s Vita lacks the powerful slate of new titles it needs. We may be drifting towards a scenario where Nintendo shrinks to a rump company focusing only on portable gaming – and knocks out Sony’s PS Vita in the process.

Nintendo is taking the idea of the "second screen" to a new level. The company on Tuesday showed off a prototype gaming system called Wii U, which consists of a smartphone-like remote control that works with its existing Wii gaming system to let gamers play on two screens at the same time.

Today at its Xbox 360 media event in Los Angeles, Microsoft dropped a big piece of news: the launch of a slimmer version of the Xbox 360,…