As E3 methods, video game market is at a turning point

Posted on 11 June 2016 by Admin   |   Filed under Computer GamingComments (9)

“E3 will have a definitely different feel to it this year," says Michael Pachter, managing director of equity research study for Wedbush Securities.

E3 in 2015 was everything about huge games. "Fallout 4," "Star Wars: Battlefront," "Halo 5," and the long-awaited return of "The Last Guardian" (which was very first presented in 2009 and has been MIA ever since). This year, the program will be more centered on hardware.

Sony and Microsoft are both expected to present updated variations of their console systems. Pachter states it's uncertain whether Microsoft's brand-new hardware will be considerably more powerful than current variations of the Xbox One. He does, however, expect Sony to present an updated PS4 that's optimized for virtual truth and 4K pc gaming, both of which would need significantly stronger computer and graphics processing chips.

In addition, Sony will showcase its PlayStation VR headset. And Oculus, HTC and Samsung will likewise have an existence at the program for their recently-launched virtual truth headsets.

"Virtual truth is still several years far from being something that's mainstream," says Eric Handler, senior equity analyst at MKM Research. "I think companies are going to lay the groundwork at E3. It's still in the phase of trying to show people what the possibilities are."

Instead, the company is taking an all-or-nothing method to E3 this year, focusing on a single playable video game: "The Legend of Zelda". The Wii U variation of the awaited online game will control Nintendo's existence.

E3 itself will be a various looking show this year, as Electronic Arts and Activision, the market's two greatest publishers, have actually both opted against hosting booths. EA, instead, will host a competing, open to the general public show throughout the street. Those moves have actually raised questions about the future of E3 and whether it is losing its position as a tentpole event for the video game industry.

Experts are divided.

"I do not want to downplay E3," says Handler. "There are still going to be a variety of games that people will wish to see."

Pachter, though, says he's worried EA's separate occasion, along with others hosted by publishers beyond the E3 time window, and might hurt the industry.

"EA is aiming to have the very best of both worlds, but as one of the industry's biggest gamers, its desertion of the E3 floor threatens the wellness of the market itself," he says. "If EA's option creates a design template that others follow, E3 will suffer mightily in future years."

Pachter said he's less concerned about Activision's choice to mostly bypass the show, stating the company has a lighter lineup of titles this year and he anticipates them to return to E3 "in force" in 2017.

Of the video game publishers at the program, Take-Two Interactive Software and Ubisoft will likely get additional interest with EA and Activision mostly absent. Take-Two has actually moved into EA's prominent floor space, greeting show goers as they enter the Los Angeles Convention Center's South Hall. That company will showcase "Mafia III" and "Sid Meier's Civilization VI".

Ubisoft, which remains in a continuous battle for control of the company with Vivendi, will showcase the sequel to "Watch Dogs," "Tom Clancy's Ghost Recon Wildlands," "South Park: The Fractured but Whole" and a new intellectual property. The company will likewise shine a spotlight on "Eagle Flight," its PlayStation VR title.

While the E3 show floor does not open until Tuesday, June 14, E3 unofficially begins two days prior. On Sunday, Bethesda and EA are holding media occasion to reveal new online games (EA is expected to showcase its next Star Wars game at its occasion). On Monday, Microsoft, Sony and Ubisoft all hold interview.

There may be issues about the health of E3 itself, experts say they stay bulling about the industry in basic.

"I think the industry is in an extremely excellent location," stated Handler. Today, it's about people investing $100 on the video game rather than $60 on the game."