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The business doesn't support enough studios making big first party efforts to keep people happy as it is. If they announced more stuff at PSX, it would mean less stuff ready to premiere at E3, and then everyone would say that their E3 sucked. Nobody makes enough new stuff in the AAA category to fill even 2 conferences, let alone 3 or 4. Hell even E3 has a bunch of filler and indies to fill the time.

Considering that, I think they should cancel any live coverage of PSX and make it purely a gaming convention/fan engagement event.