A First Look Into E3 '16: 'Publishers Emerging As Winners'

It's day 3 of the event, and the research firm has come out with a note stating the strategy of Microsoft Corporation MSFT to make Xbox Live a social platform and offering game play across PC and console is good for the industry.

"We see this move as a way to lower barriers for gamers and to make it easier for them to have a customized experience," analyst Andrew Uerkwitz wrote in a note.

The analyst highlighted that Microsoft, for the first time, announced two new consoles: the Slim and Project Scorpio.

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"We believe the gaming industry is growing such that it can now support a good, better, best hardware model. We see this broadening the market and bringing more consumers to the game space — backward capability further helps," Uerkwitz noted.

In addition, Uerkwitz said all companies he met discussed the opportunities to engage with gamers beyond the initial purchase; ideally, these engagements would provide monetization opportunities, perhaps including expansion packs, virtual currencies, level-ups and companion apps.

"We don't view this as a one-sided transaction — we believe the return for gamers is a more immersive, personalized experience," Uerkwitz elaborated.

Further, the analyst wants KPI (key performance indicator) to shift away from downloads/units sold to number of regular players as continued cross-platform integrations would make little difference between console/PC/mobile over the long term.

"There seemed to be more buzz this year than in years past despite the current mid-cycle positioning. We may look back at this year and realize it was the turning point for both hardware makers and video game publishers alike," Uerkwitz concluded.