From "Call me e-mail: the novel unfolds digitally", Adam Baer, New York Times (April 15, 2004)
"My younger employees say they don't have time to read books and instead focus on e-mail and Web writing," he [Eric Brown, creator of DEN] said. "There's this huge group of readers in our office - a communications company! - and they're reading snips and pieces.
...
A small community of so-called hypertext writers, many of them affiliated with academia, have been publishing more experimental work in online journals like The Iowa Review Web (www.uiowa.edu/~iareview) and BeeHive (beehive.temporalimage.com) for more than a decade. Such writing includes texts with animation and works created by using rules and random processes to generate something different for each reader.
...
What will take electronic literature to the next level, Mr. Wardrip-Fruin suggested, are multimedia projects involving so many inventive procedures that they cannot be reproduced or mimicked on paper. "Think of the textual analogue to video games," he said. "You can't really capture the way a video game works by printing it out; that's what will have to happen with electronic literature for it to become popular."
P.S. Now that the New York Times is making it very difficult to view older articles for free, I will be a lot more sparing in my links to them, and will only provide them with some excerpt.
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