Nintendo and Microsoft are making the right moves to cut into Sony's lead in video games

Beware Sony, the competition is closing in.

At E3, the annual video game trade show that's taking place in Los Angeles this week, the big three console makers - Microsoft, Nintendo and Sony - each touted their visions for the near-future of video games. After all three had wrapped up their press briefings, it was clear that while Sony may have a sales lead now with its PlayStation 4, its rivals are making smart moves that could help them cut into that lead.

Of course, the competition has a lot of ground to make up. Sony has sold more than 60 million PlayStation 4 consoles, which is more than double the number of Xbox One machines Microsoft has sold.

Sony has also left Nintendo in the dust. Though it's off to a good start, Nintendo's new Switch console has only been available for a few months, and its previous game machine, the Wii U, was a bust.

And Sony's also having a lot of success getting PlayStation 4 owners to buy other things. Nearly 30 million of them are paying for PlayStation Plus, Sony's online service.

Still, things can change quickly in the games business - something Microsoft and Nintendo are counting on.