Microsoft's super-soldier Master Chief, from the venerable Halo game series, will have a busy schedule on Monday.
That's because the software company and video game console maker will kick off Electronic Entertainment Expo, the game industry's largest annual trade show, with a press conference dedicated to Xbox. The company will devote much of the show to Halo 5: Guardians, one of the most anticipated games of the year. It launches in October.
E3 serves as one of the best opportunities for Microsoft to grab gamers' attention for the next Halo game, as well as set the tone for its Xbox One game console. The Xbox One has finally found its footing with consumers over the last year thanks to aggressive price cuts and a more robust game lineup. Much of that progress has been making up for time lost against the competition.
Tune in: CNET's live blog of Microsoft's E3 event on Monday
Before launching the console in November 2013, Microsoft faced heavy criticism for shifting away from game playing and toward television, with a large focus on cable box integration and other media capabilities. It didn't help when the company attempted to impose new restrictions on how players connected the console to the Internet, requiring a sign-on once a day to play games, and limiting how people could lend games to a friend or sell them back to a retailer. Many of those policies were nixed leading up to the launch.
Microsoft has spent the time since rebuilding the Xbox's image under the leadership of Phil Spencer, the former head of Microsoft's in-house game production team. Spencer shifted the Xbox division back to more serious game-playing, even as he made tough decisions about the platform itself, such as making the Kinect motion camera a separate accessory. He's also been candid in outlining where the Xbox One has needed to improve -- including such as making it easier for developers to create games -- and where the company had strayed from its mission.
It's been quite the turnaround.
After Sony's PlayStation 4 handily beat the Xbox One in US retail sales for more than 12 straight months, Microsoft managed to inch ahead in December 2014 thanks to a $50 price cut that put the console at $350. That effort has paid off: Sales of Xbox hardware in May were up 81 percent from the same time a year ago, according to market researcher NPD Group.
But maintaining that momentum isn't a given. Sony remains an industry leader in promoting the best and most promising games from independent developers, like the highly anticipated No Man's Sky, a space exploration title, and the upcoming puzzle game The Witness from indie superstar Jonathan Blow. While Microsoft is expected to give more airtime on Monday to indie developers, it still lags behind Sony.
Sony has also secured high-profile deals with game makers to bring exclusive game add-ons to the PlayStation. These include special maps and weapons for the space shooter game Destiny, which Xbox owners still don't have access to. These exclusive deals remain a powerful force in the console industry, where deciding which platform to choose often boils down to which one your friends play and what platform delivers the most for your money.
Microsoft also seemed to be on the sidelines of the virtual-reality race. That changed Thursday, when it announced a surprise partnership with Facebook-owned Oculus VR that will bundle Xbox One controllers with the Oculus Rift when the headset ships next spring. Xbox One games will be also playable in a virtual home theater thanks to Windows streaming technology now being developed to bridge the PC and the Xbox platforms.
Microsoft will talk about these and other developments Monday when it gives us a snapshot of Xbox's present and future. Heading into the event, here are key themes to look out for.
Halo 5: Guardians front and center
This year's E3 marks the moment Microsoft can flaunt Halo as the biggest strength of the Xbox One platform.
The sweeping epic space opera remains the closest analog to Star Wars in the video game world. The exploits of Master Chief as he participates in intergalactic warfare still rank among the most iconic gaming experiences in the industry, alongside the likes of Nintendo's Super Mario, Electronic Arts' Madden football and Take-Two Interactive's Grand Theft Auto.
Halo 5: Guardians marks the second major Halo installment made by Microsoft's in-house studio, 343 Industries, instead of series' creator Bungie. The studio delivered a hit with Halo 4, proving it can develop successful Halo games and setting the franchise up for another trilogy of titles.
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