The Electronic Entertainment Expo — E3 2016 — starts next week. Video game industry giants like Microsoft Corporation (MSFT) will be kicking off this year’s edition of E3 with press conferences starting on June 13.
There is a lot of more speculation than usual this year with E3 rumors flying about the possibility of unprecedented mid-cycle game console upgrades. Here’s a quick rundown of what we think we might see from the big three at E3 2016.
E3 2016: Microsoft
Microsoft will be one of the first out the gate with its E3 announcements, starting at 9:30 am (PT) on Monday.
The company is looking to make a big splash, after finding itself in the unexpected underdog role with the Xbox One continuing to lag sales of Sony Corp (ADR)’s (SNE) Playstation 4. It seems likely the company will release a slimmer Xbox One (E3 rumors have it at up to 40% smaller than the current box), but there is also speculation it will include a hardware bump that allows it to support 4K video playback.
If the UltraHD bump pans out, that will make life interesting for video game developers — who will be faced with demand from buyers for games that support the higher resolution — and create a divide among Xbox One owners. If those who bought the original Xbox One decided to upgrade, that wouldn’t hurt Microsoft’s bottom line.
Other E3 2016 rumors about Microsoft include the possibility of Xbox-branded set-top streamers (one of which may be equipped for casual gaming) to take on the likes of Alphabet Inc’s (GOOG, GOOGL) Google Chromecast and Apple Inc.’s (AAPL) Apple TV. We may see more about Microsoft’s plans for VR or augmented reality in gaming as well. Oh, and the Xbox One will be getting Cortana this summer, so expect MSFT to show that off.
The elephant in the room is Scorpio, the code name for Microsoft’s more powerful Xbox console that’s expected to arrive in 2017, hardware that’s expect to pack six-times the processing muscle of the Xbox One. If the E3 rumors hold true, Microsoft is planning to give a glimpse at an upgradable box that follows the PC model, with the goal of disrupting the 7 to 8 year video game console refresh cycle that has been in place for decades.
E3 2016: Sony
It looks as though Sony is not content to sit back and enjoy the lead its Playstation 4 has built in the current generation of video game consoles.
Although an upgraded version of the box, code-named PS4 Neo, was rumored to be making its debut at E3 2016, Sony recently issued a statement that it will not be making an appearance at the expo. Still, Sony acknowledged that an upgraded version of the console is indeed in the works.
The new hardware would more than double the processing power of the current Playstation 4, enabling 4K support and providing the extra horsepower needed for Sony’s Playstation VR virtual reality system — due for release later this year.
Even if PS4 Neo won’t be making an appearance, there may still be a few Playstation VR demos at E3.
According to Polygon, starting this October, video game titles will be required to be compatible with both the existing “base” PS4 hardware as well providing upgraded graphics for PS4 Neo consoles.
Developers have already been briefed on the PS4 Neo plans, so this rumor definitely seems to have substance.
E3 2016: Nintendo
Nintendo Co., Ltd (ADR) (NTDOY) took a gamble with the Wii U and has been paying for it ever since, becoming the “also ran” in the current video game console cycle.
The company has been dropping hints about a new console coming in 2017, called the Nintendo NX. However, the company has also gone on record as saying the new console will not be making an appearance at E3 2016.
Letting the cat out of the bag this early would all but guarantee sales of the Wii U — and possibly Nintendo’s 3DS portable game system (if the NX combines console and portable functions as predicted) — would tank even further. Better to hope they move more Wii U’s this holiday season.
Helping that cause is what has to be the most eagerly anticipated game of the year, and one that has made an appearance at previous E3 conferences. Nintendo’s new Legend of Zelda title for the Wii U (it will also be released next year for the Nintendo NX) is the open-world Zelda game Nintendo fans have been waiting for, seemingly forever.
Nintendo will be showing off live gameplay at E3 2016 and should finally announce the release date. Expect it to be in time to boost those Wii U sales going into the Christmas shopping season.
E3 2016 runs June 14 to June 16, with press conferences starting on June 13.
As of this writing, Brad Moon did not hold a position in any of the aforementioned securities.
