Analyst expects new Zelda/Mario at E3

Also a slim PS3, MS camera controller and a new PSP.

According to Macquarie Research analyst David Gibson, next week's E3 conference will deliver a number of high profile announcements from all the current platform holders.

Gibson believes Sony will use its E3 conference to announce the much rumoured new PSP - sliding touch screen and no UMD slot - and will also unveil a slim PS3 which will carry a $399 price tag. A price cut is expected to be made closer to the holiday season.

Microsoft is also expected to announce new hardware, showing off its new motion camera controller along with new software to take advantage of the technology.

While a new hardware announcement from Nintendo is said to be unlikely, Gibson does predict new Mario and Zelda titles for the Wii. Wii Fit Plus is also expected to be announced.