Microsoft hoping to get back in the game at E3

Microsoft comes to this year's Electronic Entertainment Expo (E3), the video-game industry's annual conference, seeking to reset the clock and put behind it a series of missteps over the past 12 months.

With both the company and its games unit under new leadership, it will focus on recovering from pricing the Xbox One $100 (€73) above Sony’s PlayStation 4 and a rollout that gamers felt slighted them. This enabled the $399 PS4 to grab the early lead.

From its games policies to its Xbox Live subscription, Microsoft has made significant changes in its bid to compete with the PS4. The most recent was the decision to unbundle the Kinect motion controller from the Xbox One, giving those who do not want the controller the option to buy a cheaper console.

Lower-priced Xbox One

The lower-priced model goes on sale today as the company makes its E3 presentation in Los Angeles. "There's absolutely a renewed focus on the gamer and our fans for Xbox that have prioritised gaming," said Yusuf Mehdi, vice-president for Xbox marketing and strategy.

“We are very much coming to this E3 with a great story to share and tell.”

In addition to selling at least two million fewer consoles than Sony, Microsoft has lost $1 billion in future sales, based on how much gamers spend over the life of a console, according to Michael Pachter, a Wedbush Securities analyst who predicts the company will bounce back.

Although games publishers have already teased their upcoming titles, E3 is usually the chance for them to reveal a little more, showing off demos and giving attendees hands-on time with selected titles.

There are bound to be one or two surprises up their sleeves.

With Microsoft expected to show more of its upcoming Halo title, known as Guardians, and the potential for a rerelease of Halo 2 for the current console, the company will come under scrutiny to deliver compelling games. There is already speculation that there will be at least one big exclusive game, but Microsoft has been playing its cards close its chest.

Although Sony has been outselling its rivals with the PS4, it too will face scrutiny as it unveils its games plans for the year. HD remakes of some PS3 games are expected, with The Last of Us already confirmed.

Nintendo also needs to get back in the game. Sales of the Wii U have not been what the company was hoping, with the console lacking a killer exclusive to tempt games fans.

A strong line-up of games could give Nintendo the edge in a market where it has fallen behind its rivals in terms of third-party support. With Mario Kart 8 already released, the Japanese firm is expected to showcase Super Smash Bros for the Wii U, which is rumoured to link up with NFC-enabled figurines.

Mobile gaming, which has become more prominent in recent years, will also play a role at the event.

More than 40,000 people are expected to pass through the doors at E3 this week. – (Additional reporting: Bloomberg)