The gaming world has been abuzz with the news that one of the industry’s biggest players, Microsoft’s Xbox, will be taking a break from the Electronic Entertainment Expo (E3) in 2023. Being held annually since 1995, E3 has become the go-to place for game makers and publishers to show off their latest and greatest titles. Xbox’s absence at the show will no doubt be felt, as they have been one of the major attractions at the event, but it should also be noted that the move makes a certain amount of sense given the changes that have been taking place in the gaming industry.
The main driver for Microsoft’s decision is the growing popularity of cloud gaming and streaming services. With the advent of services such as Google Stadia and Project xCloud, Microsoft is making a bet that the future of gaming lies in streaming and not physical console hardware. Holding a large, expensive press event such as E3 to promote the Xbox product, while understandable given its status as a major player in the industry, is no longer a smart investment from Microsoft’s perspective.
The issue of cost is also an important factor here. As anyone who has attended an E3 event can attest to, putting on a conference or show this size is an expensive undertaking. Even for a large company like Microsoft, the cost of presence at E3 could be better spent elsewhere. With gaming continuing to move away from physical console and towards streaming, Microsoft could focus their money on developing better streaming platforms and services to boost their online presence.
Regardless of the reasoning behind the decision, the fact remains that Xbox will not be gracing the show floor at E3 2023. Microsoft has not ruled out the possibility of attending future E3 events, but they have made it clear that they want to focus on other avenues like their own conferences in the meantime. It’s a brave move, and one that could prove to be particularly successful in the long run if Microsoft’s bet on streaming pays off. In any case, the gaming industry will be watching closely to see how well Microsoft manages without the presence of their signature console brand at the biggest gaming event of the year.