At E3 gaming event, Microsoft teases sci-fi epic Starfield while Ubisoft shows off new Avatar title - CNBC

The video game industry's annual trade show went virtual this year, giving publishers a new format to show off upcoming titles.

Still, E3 is often used as a platform for major video game companies to drum up hype for their new blockbusters.

But a big surprise from the Ubisoft showcase was a game based on James Cameron's 2009 sci-fi film "Avatar." It's called Avatar: Frontiers of Pandora, and features colorful creatures and environments from the Avatar universe.

The game was initially going to be called Rainbow Six: Quarantine, but Ubisoft changed it due to controversy amid the coronavirus pandemic.

Another big reveal was a new mashup of Nintendo's Mario and Ubisoft's Raving Rabbids, called Mario + Rabbids Sparks of Hope.

A sequel to 2017's Mario + Rabbids Kingdom Battle, the game comes out next year on Nintendo Switch.

Meanwhile, on Sunday, Square Enix revealed a new game based on Marvel's "Guardians of the Galaxy." It will be a single-player title, unlike another game based on the Marvel Cinematic Universe, Marvel's Avengers, which got a mixed reception when it released in September.