Beating Sony to the Punch?
Sony beat Microsoft to the console punch last time. Will they make the same mistake this time?
With a third generation system on the way, it will be interesting to see where Microsoft, the junior of the three main systems war, will take their system. Rumors flying left and right, with Microsoft hoping to take a lead this time.
" I don't care if this system see black the first time around, we just need to get our name out there," was quoted Bill Gates on the release of the system. For all of its ups and downs, it made it into the top two for a long time. The system had to compete with Sony's 'instant library' of games, upon making the older games backwards compatible. Will Microsoft do the same?
All eyes will be on the CES (Consumers Electronic Show) on Janurary 5th, 2005, where is is rumored that Bill Gates himself will reveal the Xbox 2. This is a clear battle line drawn, since both Nintendo and Sony have their systems releases in the last quarter of the year.
The second surprise was that Microsoft had decided that the war between Nvidia and ATI was too much for them. While officially released in the press last year that ATI had won the GPU contract for the next system, it seems that Microsoft is taking a hand from Sony. *at this time , unsubstantiated*
Nvidia had made a sweet killing off the Xbox, having seen record share prices with the news and release of the Xbox. The problem was that Nvidia didn't want to drop price, and that bothered the software giant. I'm sure there were other problems, but that is one of the official stories.
THe cost of buying out, as it were, of the GPU, tends to keep the console price high. In its resolution to keep the price of the next onsole down, and become less reliant on the x86 manufacturers, Microsoft has develed into chip developement. With the acquisition of Silicon Graphics patents, Microsoft can tailor make their own chips and add, basically, whatever they want.
The CPU, that is what it all comes down to at this time. Wil the Xbox play older games? The answer is yes.
In addition to programming instruction in MSIL ( Microsoft Intermediate Language), they will also write instruction in x86 code so that the old library can be played, offering what Sony did with its PS2 system, and that is a 'instant' library.
While saying that the Xbox underpreformed in the sales arena is a understatement, the price drops from the competition didn't make it any better. When the price drop for the PS2 was introduced at $179, the calculated lose of each Xbox sold was about $100. The plan is to subsidise this with increased software sales, but this calculation may only provide positive resuls in years to come, and perhaps only with Xbox 2. Not unlike Sony's drive to develop a "home station" that would function as the center of a home entertainment system, Microsoft plans to make the Xbox 2 the machine that will take over our living rooms, providing not only video game entertainment, but also online functions, and direct-to-disk digital TV recording. Microsoft has deep pockets and may venture on undeterred of the moderate success of Xbox 1, but it may take Xbox 2 or even Xbox 3 or 4 before Microsoft's plan for global domination of our living rooms becomes reality.
It is interesting to point out that Microsoft had interesting plans for their home console back in the developing stage. They wanted to make it the everything console then, and probably could have. Microsoft wanted to include Web TV, which was acquired back in the day, as a incentive to buy the system. While Web TV held some fame in the States for awhile, the idea was ultimately scrapped, for finacial reasons. The cost of the system they wanted to make was ranging out of the price ranges of the people they wanted. Videogames, still in the realm of 'kids toys', were not something that most adults were willing to buy. The feature that made the Xbox somewhat of a advantage was the HDD installed, which made extra content available through the pay subscription service, Xbox Live.
While the system was underrated, and sales were less than to be desired, the holdover is that Microsoft is still in the game. With a rumored $230 million in the red from lack of sales, the company is hopeful that the software sales and the new system will prove to be better, especially with the jump in the market before their competition, will give them the edge that they need to take back some of the market share.