Dressed in the trademark technicolor clean-room suite Intel uses in its Pentium II ads, CEO Andy Grove literally danced onstage for his keynote address Friday at the Electronic Entertainment Expo (E3) The music that accompanied his dramatic entrance? "Stayin' Alive," of course.

"The PC is the vehicle for future growth of the interactive entertainment industry," Grove said, and he told the crowd that PCs are now competing evenly for the "eyeball time" of people all over the world. And the market for entertainment software isn't just 17 year old boys: the largest group of gamers is 18 to 24 year olds and almost half of them are women.

Grove used his keynote to showcase the Pentium II running a variety of futuristic entertainment applications, including games with real-time voice and video. Pop star Beck beamed in a jam session from a home PC. Grove also announced that numerous arcade game manufacturers have licensed Pentium II systems for their games. The Pentium II allows numerous multimedia events to occur simultaneously: one demo showed a home PC-based flight simulator with multiplayer capabilities that allows players to talk to other players in their virtual squadron and see them in a video window as they attack a target together. 3D sound positions audio realistically as well.