CYBER HOUSE RULES ELECTRONIC EXPO SHOWCASES THE WAVE OF THE FUTURE.

Byline: David Bloom  Staff Writer

It's a challenge for mere humans to make sense of all the craziness of the Electronic Entertainment Expo, which blew through town last week, but now that the ears have stopped ringing and the retinal spots have faded, it's clear that new technology is creating new ways to play video games.

And though the PC gaming business is struggling financially, the graphic and cinematic differences between high-end games and movies are shrinking steadily toward zero. And beneath the eye candy lurks more sophisticated computer opponents, more fully realized worlds and new ways to take on the toughest challengers of all - other humans.

Sony had the most to say, with its next-generation PlayStation 2 coming out Oct. 26 at a pretty good price, $299. It's a powerful machine that will have dozens of great-looking titles by year's end and will also play CDs and DVD movies.

Among the most-promising PS2 titles was Gran Turismo 2000, sequel to the two best driving simulators ever. GT2000 is a stunning showcase for the new console, with such tricks as showing how sunlight reflects through clouds and off a moving car's curved rear window.

Two other eye-catchers were historical adventures from Koei that are set in feudal Japan and China, Dynasty Warriors 2 and Kessen. At the risk of cinematic heresy, they give you some sense of the sweep of a movie by Japanese director Akira Kurosawa.

And Squaresoft showed off several handsomely cinematic new role-playing titles for either PlayStation or PS2, including an online-oriented Final Fantasy IX and a sequel to the gorgeous ghoulfest Parasite Eve.

But the PS2 was hardly the show's most fascinating feature, despite its omnipresence and admirable good looks. For that matter, many observers said Sony didn't go far enough in responding to Microsoft, which will roll out its own Xbox console in late 2001.

Sony offered a detail-free technological response, saying it will sell an optional hard drive and Internet connection that will slide into a bay carved into the back of the U.S. PlayStation 2.

But optional means few games will take advantage of the add-on, because developers can't justify the production expense. That's a strategic mistake when Sega touts the Dreamcast's online gaming capabilities, since the Xbox will offer built-in broadband and an 8-gigabyte hard drive, and Nintendo can certainly do the same for its own next-generation machine, the Dolphin.

Microsoft only showed Xbox demonstrations to journalists and developers in a back room, using a chrome-plated machine that looked like something Mulder and Scully might use on ``The X-Files.''

The demonstration was impressive, with a cloud of many-colored butterflies fluttering about and a pond covered with lily pads. But the demonstration was hard to evaluate because the company said it showed only 15 percent of the eventual machine's expected power.

Among PC titles, Steven Spielberg has joined with Lego to create the MovieMaker Set, which will combine a specialized Lego block collection with an inexpensive computer-connected videocamera and simple software that simply creates movies and animation.

Max Payne is a noirish adventure that borrows heavily from the ``bullet- time'' visual tricks of ``The Matrix,'' while relying on beautiful cut scenes literally straight out of a graphic novel.

Black & White also enchanted with its good-looking ``God game'' that comes in two flavors for good or evil. Choose yours and you choose your deities' path.

The Only in Asia award for the show goes to Oh! My Baby, out of Seoul. Scan in a picture of you and your spouse, and the program generates a computerized kid that looks like the two of you, and requires daily attention on screen. The rest of the planet's 6 billion residents will have to find other ways to generate babies who look like their parents.

The show's biggest surprise was Sega and its Dreamcast, which are perking along with a series of excellent-looking new titles. The company is benefiting so far by being the only company with a next-generation machine in America.

Sega announced a slight price cut, and a deal to give away its machine to people who sign up for its online service, for which it is now creating several interesting titles, such as the role-playing Phantasy Star Online, a first for consoles.

Gathering of Developers also showed another first, an off-road racing game, EVO Evolution 4x4, that will allow users of the Dreamcast, PC and Macintosh versions to play each other.

Nintendo gave virtually no information about Dolphin and its next-generation hand-held, the Game Boy Advance, but had plenty of promising new titles for the Nintendo 64 and Game Boy, primarily from Nintendo's primo in-house game makers.

First to arrive will be Rare's Perfect Dark, from the same team that created the massive James Bond-based hit, Goldeneye 007, followed by a cart-racing game with Disney characters, and another sequel to The Legend of Zelda.

And of course there's Pokemon, with four new titles, including the Gold and Silver sequels to Pokemon Red and Blue. They'll also bring two new creature classes, Steel and Dark, and 100 new Pokemon.

Among the gadgets were floormat controllers for music- and dance-oriented games, which will put the aerobic back into the decidedly anaerobic process of mashing buttons.

It's an excellent addition for a growing subgenre, and one that the fitness-minded might find a fun alternative to the latest Jane Fonda exercise video.

There was lots more, of course, but with 2,400 titles on display from more than 400 companies, evaluating them all was impossible. But it was obvious that the next generation of technology is allowing developers to make remarkable new kinds of interactive entertainment.

There is still a way to go before the technology can truly create movie- quality images that players control, but at this year's E3, you could finally see that it's not that far away.

CAPTION(S):

5 photos

Photo: (1 -- cover -- color) The Next Generation Games!

New technology transforming video world

(2) Steven Spielberg and Lego have created the MovieMaker Set, which makes simple movies.

(3) Black & White's new ``God game'' allows players to choose between good and evil.

(4) no caption (PlayStation)

(5) NHL Face-Off 2001 from PlayStation2.