Showtime: A Look Ahead to not-E3 2023

Key insights

7 takeaways

01
Embracer Group's stock price plummeted by over 45% following the collapse of a $2 billion strategic partnership that had been in development for seven months.
02
Ubisoft plans to increase the headcount of its Assassin’s Creed division by 40% over the next few years, building on an existing team of 2,000 employees.
03
PlayStation Studios head Hermen Hulst has confirmed that Sony currently has a dozen live-service games in development.
04
China has officially approved Microsoft’s proposed acquisition of Activision Blizzard, further isolating the UK regulator's opposition to the deal.
05
Sega has implemented layoffs affecting 121 staff members at Relic Entertainment, the developer behind the Company of Heroes franchise.
06
Sony’s current first-party release slate for 2023 is limited to Spider-Man 2, following the previous releases of God of War: Ragnarok and Horizon Forbidden West.
07
A forthcoming Windows 11 update will integrate RGB lighting control directly into the operating system, allowing users to manage hardware from various manufacturers without third-party apps.

Summary

This analysis examines the industry landscape leading into the 2023 summer showcase season, commonly referred to as not-E3. The primary objective is to evaluate the strategic positioning and expectations for major industry players—specifically Microsoft, Sony, Ubisoft, and the Summer Game Fest—as they prepare to present their upcoming software pipelines and corporate narratives to a global audience.

Microsoft faces a complex challenge, struggling to balance its recent acquisition ambitions with the reputational fallout from underperforming titles like Redfall and Minecraft Legends. The analysis suggests that the company must pivot away from vague corporate messaging and instead demonstrate a concrete, near-term release cadence to satisfy its Game Pass subscriber base. Similarly, Sony is urged to move beyond its reliance on safe, western-focused blockbusters. While the company has established a strong foothold with established franchises, there is a noted need for creative diversification and a return to the unpredictable, varied output that characterized its earlier console generations.

Ubisoft’s outlook is heavily centered on the Assassin’s Creed franchise, which remains its primary pillar. However, the success of the publisher’s near-term strategy rests significantly on the performance of Ubisoft Massive, which is managing high-profile projects like Avatar and Star Wars. Finally, the Summer Game Fest is identified as the central hub for the industry’s summer announcements. The analysis concludes that the event faces heightened pressure to deliver a high-quality, well-curated experience, as it now occupies the space formerly held by E3. The overall industry outlook is tempered by recent economic volatility, including significant layoffs at major studios like Relic Entertainment and Brace Yourself Games, as well as the collapse of a major strategic partnership involving the Embracer Group.