Post by dkennedy on May 4, 2005 5:23:54 GMT -5
Xbox Morphs into Media Center
Looking past Sony, Microsoft hopes to replace TiVo in the living room with its game platform.
May 3, 2005
When it unveils its next-generation Xbox gaming console later this month, Microsoft will be looking past its immediate battle with Sony for game supremacy and more toward taking a spot at the center of the home entertainment universe.
Microsoft co-founder Bill Gates told an audience at the Society of American Business Editors that the new console will sport a menu similar to that of the company’s Media Center edition of Windows, which is designed to accommodate photos, music, and video, among other things.
“It’s going to be a lot more like a PC than the Xbox is today. He is talking about chatting and blogging so I suspect we are going to see a keyboard,” said Geoffrey Mogilner, a senior analyst with Decatur Jones Equity Partners. “It’s an attempt to displace TiVo and incorporate more TV functionality. Expect wireless controllers with a firewall along with DVR capability.”
In a deftly timed move, Microsoft plans to release details of its new Xbox, which is code-named Xenon, on an MTV special on May 12, just ahead of the start of E3 Expo, a major gaming trade show that will kick off in Los Angeles on May 17. At that conference, Sony is expected to release more details about its successor to PlayStation2.
“Sony has basically the same game plan as Microsoft. They are looking at making PlayStation3 the Trojan Horse that takes on many of the functions of the PC,” said Mr. Mogilner.
Both Microsoft and Sony may be looking beyond the game console, but that market is growing at a very good clip, according to the NPD Group.
In the first quarter of 2005, U.S. retail sales of video games, which includes portable and console hardware, software, and accessories, were over $2.2 billion, a 23 percent increase over the same period last year. Total unit sales increased 18 percent over first-quarter 2004, to nearly 63 million units.
“While we expected to see impressive sales in the portable categories, the fact that all categories saw positive sales in terms of both dollars and units is a real testament to the broadening appeal of video games as a form of entertainment,” said Anita Frazier, an entertainment industry analyst for Port Washington, New York-based NPD Group.
“Manufacturers, developers, publishers, and retailers continue to deliver quality products and services that attract a wide range of audiences, and consumers are responding positively,” she said.
Looking past Sony, Microsoft hopes to replace TiVo in the living room with its game platform.
May 3, 2005
When it unveils its next-generation Xbox gaming console later this month, Microsoft will be looking past its immediate battle with Sony for game supremacy and more toward taking a spot at the center of the home entertainment universe.
Microsoft co-founder Bill Gates told an audience at the Society of American Business Editors that the new console will sport a menu similar to that of the company’s Media Center edition of Windows, which is designed to accommodate photos, music, and video, among other things.
“It’s going to be a lot more like a PC than the Xbox is today. He is talking about chatting and blogging so I suspect we are going to see a keyboard,” said Geoffrey Mogilner, a senior analyst with Decatur Jones Equity Partners. “It’s an attempt to displace TiVo and incorporate more TV functionality. Expect wireless controllers with a firewall along with DVR capability.”
In a deftly timed move, Microsoft plans to release details of its new Xbox, which is code-named Xenon, on an MTV special on May 12, just ahead of the start of E3 Expo, a major gaming trade show that will kick off in Los Angeles on May 17. At that conference, Sony is expected to release more details about its successor to PlayStation2.
“Sony has basically the same game plan as Microsoft. They are looking at making PlayStation3 the Trojan Horse that takes on many of the functions of the PC,” said Mr. Mogilner.
Both Microsoft and Sony may be looking beyond the game console, but that market is growing at a very good clip, according to the NPD Group.
In the first quarter of 2005, U.S. retail sales of video games, which includes portable and console hardware, software, and accessories, were over $2.2 billion, a 23 percent increase over the same period last year. Total unit sales increased 18 percent over first-quarter 2004, to nearly 63 million units.
“While we expected to see impressive sales in the portable categories, the fact that all categories saw positive sales in terms of both dollars and units is a real testament to the broadening appeal of video games as a form of entertainment,” said Anita Frazier, an entertainment industry analyst for Port Washington, New York-based NPD Group.
“Manufacturers, developers, publishers, and retailers continue to deliver quality products and services that attract a wide range of audiences, and consumers are responding positively,” she said.