E3, the Electronic Entertainment Exposition or, as we like to call it, the lollapalooza of video game trade shows, wrapped-up its 10th anniversary show this month in downtown LA. With more than 400 exhibitions in 540,000 net square feet of exhibit space, the LA Convention Center was a gamers' Mecca. We did our best to navigate through the record-breaking number of attendees, all the while trying to protect our eardrums from the amped-up cacophony of sounds in order to bring you the following E3 highlights.

There was little in the way of ground shaking news announced at this year's E3 except from the realm of handhelds, which we'll get to in a minute, and a little announcement from Microsoft and EA Games. The two companies have teamed up to finally bring EA Sport's games to the Xbox Game System. At last, Madden on Xbox! The Madden franchise is probably the most successful video game of all time, a crown jewel in the sports category. And you've got to hand it to Microsoft and EA. Even though the partnership was announced only a few days before E3, the booth was all tricked out with the right logos, games and so forth. So, how long do you think this sweet deal was in the works?

And now for the handheld news, we go first to the PlayStation booth where we were truly impressed by the new PlayStation Portable (PSP), a full-scale entertainment device that fits in your pocket. This stylish device features an incredibly crisp display screen that plays games, movies and music. Consistent with all things Sony, the design is awesome, and while all the PSPs were under glass, the device has the kind of sleek look and cool accessories that make you want to get you hands on it. Hundreds of people were waiting hours in line, just to get a look. It was probably the most photographed item at the show (even including the booth babes), by the ubiquitous digital cameras.

Speaking of PlayStation, keep an eye out for even more games and accessories that can be used with the PlayStation EyeToy. The innovative device, released last November, was all over this year's E3 as tons of developers have successfully integrated its camera and motion detection capabilities into their games.

Next door to the massive PlayStation booth was the equally impressive Nintendo extravaganza! The buzz in this booth was all about the DS (Developers' System). We finally got to see Nintendo's much-talked-about DS System and we like it…a lot. With its two screens and innovative touch-screen input, the DS opens up a new world of play patterns. The DS will also support several wireless functions including linking to other devices for multi-player action and a chat feature for transmitting text messages, handwriting and doodles. We also love Nintendo for making the DS backward compatible to play all our GBA (Game Boy Advance) games.

The design of the DS left us a little unimpressed however. It looks like a GBA SP model wedged into an old school handheld system. But the positive aspects of the DS far outweigh the only negative we could see.

Now, as to the issue of which is going to be the dominant handheld? Our Magic 8-Ball is being a little cranky right now, but the two devices are likely to take different pieces of the market, at least initially. The more serious gamers are going to want the DS, despite the fact that the screen resolution is about the same quality as the current GBA SP. It has a lot of robust gaming features as well as the additional screen. (This is consistent with Nintendo's positioning that everything they do is about the games.) The PSP is likely to be a more all-in-one entertainment device so what it loses in gaming power it gains in versatile use. Kids, of course, are going to want both, but the real determinant is going to be the initial price. Nintendo and Sony were mum -- and that's a big unknown that will make a tremendous strategic difference when the items are launched…which we also don't know. The DS is coming this year, and PSP in the U.S. in 2005. Stay tuned on this one.

If you wanted to see just how far this business has come, this year's Classic Gaming Expo was sporting an interactive museum display, showcasing a timeline of video games. The "History of Gaming" exhibit was laid out in two sections with one dedicated to home and handheld systems. This area included the very first home system, Magnavox Odyssey, the now defunct Sega Saturn and just about everything in between.

The second area allowed gamers to kick back in a 1980s living room and play an old Atari 2600. Surrounding the patterned couch and simulated wood grain finish TV were 34 classic coin-operated video game machines and they were all free to play. It was an '80s childhood dream come true.

Back to the 21st century, we've got a lot to look forward to by way of new games coming out this year. Following is a look at some of our favorites.

We start our tour with the Buena Vista Games booth. One of the first booths on the main exhibit floor, Buena Vista immediately grabbed our attention with its giant Nightmare Before Christmas display, showcasing two new games based on the Tim Burton movie.

Another movie going from the big screen to game system is Tron in Tron 2.0: Killer App. This action adventure digitizes the player into the famous computer-based universe led by the evil "user."

We can also expect several Disney sequels including Kim Possible 2 and Lizzie McGuire 2, both for Game Boy Advance. In other sequel news is the follow-up to the hugely successful game Kingdom Hearts, from Square Enix.

Across the isle from Buena Vista, we met with EA Games for a first look at Harry Potter and the Prisoner of Azkaban. Based on the next Harry Potter movie, this game features stunning environments and incredible detail that immerses you in the magical world of Harry Potter and friends. Potter fans will love the ability to play the game as Harry, Ron and Hermione. Kids consistently love the Potter games, not just for the power of the story of Harry et al, but for the robust and engaging game play.

Also from EA, two new Sims games, Sims Urbz and Sims 2. Urbz takes the Sims to the city, where reputation is everything. In Sims 2, you direct your Sims over a lifetime and mix their genes from one generation to the next.

Working our way through the show floor, we came across the Activision booth and Lemony Snicket's A Series of Unfortunate Events, based upon the unfortunately successful book series and the upcoming feature film starring Jim Carrey.

Next, we followed the sound waves over to one of our favorites. We're really looking forward to THQ's upcoming releases, which include more from their Nickelodeon properties, SpongeBob SquarePants and Fairly Odd Parents. Also in the works is an original game entitled Destroy All Humans, a quirky game featuring an alien sent to Earth to clear the way for an invasion.

On the concourse level we stopped by to say hello to SEGA. This year SEGA launches the highly anticipated game debut of Astro Boy, as well as the return of Sonic the Hedgehog and Virtua Fighter.

SEGA Sports has teamed up with ESPN to form the new ESPN Videogames unit. New titles from this group include an impressive roster of games that blur the lines between an actual ESPN broadcast and a sports video game.

We left SEGA and headed over to our childhood sweetheart, Atari! Although Atari is no longer in the console business, it is one of the largest game publishers and continues to develop games for all platforms. Check out their TransFormers game, available now, and watch for Marc Ecko's Getting Up: Contents Under Pressure, an urban culture game from the creator of the clothing and lifestyle line, Ecko Unitd. Atari has also introduced a great game for the Game Boy Advanced based on the hit trading card game Duel Masters. It's out next month and well worth a look.

Here at the ToyGuy.com, we've mentioned before that as long as game time is well-balanced with physical activity, video games can be a rewarding and positive influence on a child's development. There are also a growing number of companies developing educational games with the sole purpose of teaching while playing. One such company we met at E3 is Kutoka Interactive. Their successful Mia series and the new Didi & Ditto grab kids' attention with bright and colorful animated game play filled with activities related to various subjects.

It's been just over a week since we returned from E3 and although the ringing in our ears has finally subsided, the longing for game playing continues to pulse. Stay tuned to TheToyGuy.com for full reviews of the games mentioned here as they become available, as well as any other games that we can get our hands on.