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September 23, 2002 12:00 AM

Microsoft Making New Xbox Push

Windows IT Pro
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In a bid to rescue its flailing Xbox video game console, Microsoft is pushing the system's upcoming Xbox Live online gaming strategy this week in Japan, where the system has fared the worst because of competition from Nintendo and Sony. Japanese Xbox shipments are so low that even some Microsoft officials have commented that the system's best chance to survive will come in 2005, when the second generation Xbox will arrive. But because the Japanese market makes up such a disproportionate amount of the overall video game market, and is home to so many video game developers, the company is using this week's Tokyo Game Show to push Xbox there once again. And though Microsoft hopes that its unique approach to online gaming will win over converts, it has other tricks up its sleeve as well.

To date, the company has sold less than 275,000 Xbox consoles in Japan, compared to 10 million units sold for Sony's popular PlayStation 2. This sales discrepancy comes despite continually lowered Xbox prices and has caused many Japanese developers to focus solely on the PS2, even though the Xbox is doing well in the US. To help prevent a total collapse of its non-US developer base, Microsoft bought Nintendo's 49 percent share in Rare, the British video game maker that made Donkey Kong Country. Microsoft is also considering purchasing a Japanese video game maker, though Sony has countered its most obvious move by investing in Square, which makes the Final Fantasy games.

Microsoft also announced some new Xbox games this week, including Blinx, which features a green-eyed cat character that's vaguely reminiscent of leading characters on other systems, such as Sega's Sonic the Hedgehog and Nintendo's Mario. Blinx takes advantage of unique Xbox features, such as its advanced graphics and hard drive, making it impossible to port to other systems.

But Microsoft's online service, lower system prices, developer deals, and Xbox-only games can only prop up the system so much. For the Xbox to be successful, it needs to sell well in all three major gaming markets--the US, Japan, and Europe--and so far, it's only a runaway success in one of the three, the US. As Ives Guillemot, president of French game publisher Ubi Soft told the Wall Street Journal last week, if Microsoft can't improve its Xbox sales dramatically by the end of the year, most developers will simply reduce support for the Xbox and work on more lucrative PS2 titles. And a lack of third party support would be an insurmountable obstacle, even for a company as powerful as Microsoft.

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Comments
  • Shasty McNasty
    10 years ago
    Sep 29, 2002

    I am a developer that works with Microsoft products, and they treat me fantastic. I do not think that this is the issue. I think that the issue is simply 2 things. First, if you are a developer, where are you going to spend your time and effort: on a game system with 20 million units in the marketplace, or a game system with 2 million units (numbers NOT to scale)? Secondly, if you are a customer out to buy a game system, which system are you going to buy? - the one with 200 games available, or the one with 30 games available? This is a chicken and egg situation, and if Microsoft can solve that problem, then Sony is in BIG trouble. Not until then, though.

    I am a beta tester for XBox Live, and all I will say is that Sony is definitely going to be the loser in this area. Live, like the XBox, is much superior to anything that Sony has to offer. Microsoft needs to market it properly, and then use it to sell XBoxes. Microsoft knows this, and the quality of Live reflects how important that this market is to them.

  • Todd Kinney
    10 years ago
    Sep 26, 2002

    Xbox is clearly superior. Looks like the Japanese prefer home cooking. Don't know how MS can overcome that.

  • Matt Burgess
    10 years ago
    Sep 24, 2002

    The Xbox console is great, and microsoft's internal support for it is great. Third party support is taking off too, with E3 showing that most games for most consoles and even PC will have an Xbox version. That's only one part of the puzzle, though. They are short on major exclusive titles, though the few that exist, such as Blinx and Splinter Cell, look awesome, and they need something to counter the Mario effect, and Sony's insane installed base.

    While the Xbox is technically superior in every way, the PS2 outsells it, in consoles, games, and any other way. Technically is not enough. Sometimes games aren't enough either. The Sega Dreamcast, for example, was an impressive bit of hardware, outstripping the PSOne in every way, in obvious ways.

    If you want my opinion, and I know you do, MS need to do the thing sega failed to do and sell on games. Sega had very few ads anyway. But when did we see game footage of Sonic flying through the levels? Or a particularly good fight in Soul Calibur. That's what sold me a Dreamcast.

    Why don't Microsoft show people Halo, and make damn sure they know where to get it? Why don't they show video of DOA3 running? Newer games would be better, but you know what I mean.

    The baby-grave ad was cool and all, but really doesn't show us anything about why we should buy one.

  • Thomas Frey
    10 years ago
    Sep 23, 2002

    First of all, Sega is nolonger in the console business and Play Station is already a second generation console. Hence the name of the Sony console PS"2".

    Microsoft is failing because it's past business tactics are coming back to haunt them. They have been un-friendly to developers since their inception. Why would any developer want to do business with them, escpecially considering their past treatment of developers.

    This is going to be a harsh business lesson for Microsoft, and one that they have been due for a long time.

    Editor's note: I'll fix that. I meant Sony, not Sega. --Paul

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