Thoughts on Microsoft in the Video Game Industry

[IntvGene]

Here's an article on whether Microsoft should stay in the video game industry or not. They suggest that Microsoft should leave the market:
http://www.fool.com/News/mft/2003/mft03041601.htm

Please note that this is an editorial, so there will be bias. (I am just writing this because the last article I posted turned into a media literacy debate! :) )

I still think that Gates is here for a while longer. I expect a X-Box 2 before they give up on the market. Any other comments?

[Sylentwulf]

I didn't read the article yet (have to leave soon) But I don't see any reason at all for microsoft to leave the market.

[omnedon]

That editorial is from a shareholders point of view. I wonder if the shareholders views matter in this case, or will Bill just plow through and MAKE it happen with $heer br$te f$rce.

I love my Xbox. It's a great region free DVD player, and full blown multimedia PC on my LAN... oh wait...I did those things to it. never mind.

[udisi]

I rread the article, but still don't see a reason to bow out. Technologicaly the xbox is still the best system out there. By staying in the market they show that they have staying power, and with the aquisistions of Rare, bungie, and probably more 3rd party developers(sega maybe ?) Microsoft is just starting to build a deleloper base. They need to refine their in house development, but I don't see that as a huge priority as sony has seemed to make it 8 years without a bunch of blockbuster 1st party hits. If microsoft can put out some really good games from the 3rd parties they've aquired and will aquire, they will get some of the sony market share, and once they start making a dent, I believe that some of the 3rd party games that have been ps2 exclusive may end up going multi-platform and furthering the microsoft cause.

[geelw]

er, i *HOPE* you were being sarcastic about sony not having any "blockbuster" hits in 8 years... :roll:

[Pente]

To me the Xbox is 100% going the way of the Sega Dreamcast. Why? RAMPANT PIRACY.

I mean who buys Xbox games anymore? Just like what happened with the Dreamcast, everyone just downloads the games and gets them free. And with more and more people modding their Xbox's it will just get worse.

It's the Sega Dreamcast story all over again. Xbox is cracked.. and will soon be at the point of no return.

[Sylentwulf]

Well, Sony hasn't really had too many first party hits. Not compared to any other console ever made anyways :)

[zmeston]

Well, Sony hasn't really had too many first party hits. Not compared to any other console ever made anyways :)

I agree that without Rockstar's GTA franchise, the PS2 is much more vulnerable, but c'mon, now... Sony has had many, many first-party hits. Just for the PS2 lately, there's been SOCOM, ATV Offroad Fury 2, and The Getaway, all top-ten best-sellers. If you go back to the PS1, Sony has had dozens of first-party hits.

-- Z.

[zmeston]

To me the Xbox is 100% going the way of the Sega Dreamcast. Why? RAMPANT PIRACY.

I mean who buys Xbox games anymore? Just like what happened with the Dreamcast, everyone just downloads the games and gets them free. And with more and more people modding their Xbox's it will just get worse.

It's the Sega Dreamcast story all over again. Xbox is cracked.. and will soon be at the point of no return.

Sorry, but the Dreamcast didn't die because of piracy; it died because of Sega's buffoonish management and several other factors (which have been touched on in other threads in this forum). You're looking at the situation from the ultra-hardcore perspective as opposed to the mainstream perspective, and it's the mainstream/casual gamer that ultimately determines the success or failure of a console. Joe Blow doesn't fathom how to download Dreamcast games and burn them onto CD-ROMs; Joe Blow buys four or five games a year and plays the shit out of them. Many, MANY more people purchase Xbox games as opposed to downloading them.

-- Z.

[zmeston]

Here's an article on whether Microsoft should stay in the video game industry or not. They suggest that Microsoft should leave the market:
http://www.fool.com/News/mft/2003/mft03041601.htm

Please note that this is an editorial, so there will be bias. (I am just writing this because the last article I posted turned into a media literacy debate! :) )

I still think that Gates is here for a while longer. I expect a X-Box 2 before they give up on the market. Any other comments?

I don't see the bias in the article, unless it's a bias for dumping unsuccessful ventures.

You're right, though; there'll be an Xbox (no hyphen, no capital B) 2.

-- Z.

[Zaxxon]

To me the Xbox is 100% going the way of the Sega Dreamcast. Why? RAMPANT PIRACY.

I mean who buys Xbox games anymore? Just like what happened with the Dreamcast, everyone just downloads the games and gets them free. And with more and more people modding their Xbox's it will just get worse.

It's the Sega Dreamcast story all over again. Xbox is cracked.. and will soon be at the point of no return.

Sorry, but the Dreamcast didn't die because of piracy; it died because of Sega's buffoonish management and several other factors (which have been touched on in other threads in this forum). You're looking at the situation from the ultra-hardcore perspective as opposed to the mainstream perspective, and it's the mainstream/casual gamer that ultimately determines the success or failure of a console. Joe Blow doesn't fathom how to download Dreamcast games and burn them onto CD-ROMs; Joe Blow buys four or five games a year and plays the shit out of them. Many, MANY more people purchase Xbox games as opposed to downloading them.
-- Z.

I agree completely. I have a PC with a cd-r burner and broadband. I could've dl'ed and burned DC games but for the most part, what's the point. All I had to do was wait a little while and the games were all selling for $5-$15 new. Why go through all the hassle of finding the right ISO's and the right version of Disc Juggler and the right header to make it self-booting and the Utopia disc. Fuck that. Also if you're any kind of collector why would you want a cd-r of a game. If you're any kind of a Sega fan or videogame fan why would you want to work so hard to screw over Sega knowing there's a very real possibilty it could put them out of business when it's so easy to support them.

[Zaxxon]

Here's an article on whether Microsoft should stay in the video game industry or not. They suggest that Microsoft should leave the market:
http://www.fool.com/News/mft/2003/mft03041601.htm

Please note that this is an editorial, so there will be bias. (I am just writing this because the last article I posted turned into a media literacy debate! :) )

I still think that Gates is here for a while longer. I expect a X-Box 2 before they give up on the market. Any other comments?

I don't see the bias in the article, unless it's a bias for dumping unsuccessful ventures.

You're right, though; there'll be an Xbox (no hyphen, no capital B) 2.

-- Z.

I can't really get enthusiastic about any of the new consoles. They all have a lot of the same games. They all look nearly identical. The graphics aren't that much better than DC IMO. Things still look very "polygony". The graphics hardware is developed by PC graphic card companies, either Nvidea or ATI, or Sony. It feels like I might as well just play a PC as it would be the same experience.

[NE146]

Screw the Xbox games.. the emulation on it is where it's at :D

And yeah yeah we all know "I can play the same games on the pc" etc.. But a pc is much harder to transfer between tv's and long distances in general. :P And besides, the dual analog xbox controller works great for so many things (Robotron / Crazy Climber anyone?) 8-)

[Zaxxon]

My Pc video card has S-video output. I don't need to move the Pc, just run a cable to the TV.

[NE146]

My Pc video card has S-video output. I don't need to move the Pc, just run a cable to the TV.

Yeah but how about to another house? :P

Like I always say, if anyone loves pc emus it's me. But again, it gets hard to lug it to other places during weekend trips :D Xbox works great for that 8-)

[IntvGene]

I can't really get enthusiastic about any of the new consoles. They all have a lot of the same games. They all look nearly identical. The graphics aren't that much better than DC IMO. Things still look very "polygony". The graphics hardware is developed by PC graphic card companies, either Nvidea or ATI, or Sony. It feels like I might as well just play a PC as it would be the same experience.

I agree that the new games are over-hyped generally... But, I do have some problems with playing things on the PC:

1) I prefer playing games on my TV. Multiplayer isn't the same huddled around my monitor.

2) Getting anything old to run on the new OS. XP sucks rhino dick. Everytime a new OS comes out, there are compatibility issues with the old software, and if I want to play something ten years from now, chances are getting slimmer and slimmer that I will actually be able to do it.

So, here's where the DC (and soon to be modded Xbox) are wonderful. I can emulate tons of stuff on them, and use my TV. Ten years from now (assuming that one of my DCs work), I'll just have to plug it in and I'm all set. Plus, there are great emulators, like SCUMM for the DC where I can play old PC stuff on my DC too.

[geelw]

Well, Sony hasn't really had too many first party hits. Not compared to any other console ever made anyways :)

I agree that without Rockstar's GTA franchise, the PS2 is much more vulnerable, but c'mon, now... Sony has had many, many first-party hits. Just for the PS2 lately, there's been SOCOM, ATV Offroad Fury 2, and The Getaway, all top-ten best-sellers. If you go back to the PS1, Sony has had dozens of first-party hits.

-- Z.

and some of those first-party ps one games have changed what we're seeing now, if you do enough homework... ;)

besides, NO "modern" (1985-present) cd or cartridge based console has survived soley on first-party software, and that's a given. if you compare the first wave of say, playstation one games to the first wave of xbox games, c'mon- there's NO comparison as to the initial inpressions. the first couple of weeks into the ps launch were insane with good titles (as far as stuff that had been bettered over previous 3D console attempts). on the xbox, halo was all everyone talked about (with good reason), followed by dead or alive 3 and project gotham, from what i recall... n64 owners had what, 3 titles for a few months, and the dreamcast launch was impressive, but many of the games released were rushed somewhat (soul calibur more than made up for the junky games, though)...

i know you've beef with sony, 'wulf, but the ps one didn't become #1 because sony published shitty games for it, period. they hit people over the head with ads until they bled, and the only way to patch up the wounds was to cover them with a system and some shiny black discs... ;)

[Evil E]

All I can say is Xbox RULES!!! It is so much better than PS2 or Gamecube for that matter!!!! I see Xbox getting stronger, not weaker!!! All you have to do
is compare specs between Xbox, GC, and PS2, and it tells it all!!! If you still don't believe, play all three systems--Xbox truly mops them up!!
E.--

[zmeston]

All I can say is Xbox RULES!!! It is so much better than PS2 or Gamecube for that matter!!!! I see Xbox getting stronger, not weaker!!! All you have to do
is compare specs between Xbox, GC, and PS2, and it tells it all!!! If you still don't believe, play all three systems--Xbox truly mops them up!!
E.--

We're not talking about system specs, though -- we're talking about system sales and marketplace share, where the Xbox is a very distant second to the PS2. And we won't even get started about the number of good/great games for the PS2 as compared to the Xbox.

-- Z.

[Sylentwulf]

My problem has always been availablility with Emulation. I don't like learning how to burn things, hunting down roms, and figuring all that crap out. 100% truth right here:

If someone were to give me all of the CD's with working emulators, and roms and instructions on EXACTLY how to install them, I would go out and buy an Xbox Tomorrow. But since I don't have 60 hours to figure out how to do all of the above, I doubt I'll even own an xbox once it's under $100.

[Evil E]

All I can say is Xbox RULES!!! It is so much better than PS2 or Gamecube for that matter!!!! I see Xbox getting stronger, not weaker!!! All you have to do
is compare specs between Xbox, GC, and PS2, and it tells it all!!! If you still don't believe, play all three systems--Xbox truly mops them up!!
E.--

We're not talking about system specs, though -- we're talking about system sales and marketplace share, where the Xbox is a very distant second to the PS2. And we won't even get started about the number of good/great games for the PS2 as compared to the Xbox.

-- Z.

I know, I know what we are talking about!! PS2 has a nice lead over Xbox, (saleswise) because it has been out longer!!! Xbox is coming out with great games at an alarming rate!! I guess my whole point is that I see Microsoft (Xbox) sales growing and growing, narrowing the gap and eventually overtaking Sony!! I am not knocking PS2 or GC, just stating the facts--Xbox is THE best system avaliable right now, hands down!!! Sales have, and will show that more and more. I know some of you will say "well PS3 is gonna come out"--well so will Xbox2!!! And the trend will continue.....
E.---

[zmeston]

All I can say is Xbox RULES!!! It is so much better than PS2 or Gamecube for that matter!!!! I see Xbox getting stronger, not weaker!!! All you have to do
is compare specs between Xbox, GC, and PS2, and it tells it all!!! If you still don't believe, play all three systems--Xbox truly mops them up!!
E.--

We're not talking about system specs, though -- we're talking about system sales and marketplace share, where the Xbox is a very distant second to the PS2. And we won't even get started about the number of good/great games for the PS2 as compared to the Xbox.

-- Z.

I know, I know what we are talking about!! PS2 has a nice over Xbox, (saleswise) because it has been out longer!!! Xbox is coming out with great games at an alarming rate!! I guess my whole point is that I see Microsoft (Xbox) sales growing and growing, narrowing the gap and eventually overtaking Sony!! I am not knocking PS2 or GC, just stating the facts--Xbox is THE best system avaliable right now, hands down!!! Sales have, and will show that more and more.
E.---

Um... actually, sales are showing that the Xbox is falling further and further behind. I think the current ratio is like 5 or 6 PS2s sold for every Xbox sold. If Sony never sold another PS2, the Xbox wouldn't overtake it in overall sales, such is the size of the lead.

PS2 didn't beat (we might as well refer to it in the past tense) Xbox simply because it came out earlier. It beat the Xbox for a multitude of reasons: GTA3/VC, much better and broader software lineup, etc., etc.

Games such as Kakuto Chojin and Tao Feng are alarming, although probably not in the way you mean. Heh.

Xbox is the most powerful system at the moment, but so what? Then it'll be the PS3, then it'll be the Xbox 2, then it'll be the GameCube 2, etc., etc. The videogame industry has demonstrated a dozen times over that the most powerful system is rarely, if ever, the most successful system.

-- Z.

[Evil E]

Well, I know you are trying to be funny naming less than impressive Xbox games ( Kakuto Chojin, and Tao Feng) but you know as well as I, that all 3 "next generation" systems are pumping out great games at an alarming rate!! You also know that PS2 has it's fair share of crap titles!!!! Again I am not knocking any of the systems currently out, they are all great in their own, but the things that Xbox can do that the others can't is obvious!! I still feel as more and more people realize this, the gap will narrow!!
E.--

[omnedon]

AROOOOGA!! AROOOOGA!!

FanBOI alert!! FanBOI alert!!

[ventrra]

1) I prefer playing games on my TV. Multiplayer isn't the same huddled around my monitor.

I guess that it depends on your TV and your monitor. My TV and monitor have the same size of screen (19") and the same size of viewability (18").

[Zaxxon]

I have a 21" Pc monitor and plan on getting a 26" monitor for my new computer. Playing games on my PC isn't the headache it is for you guys with 13"-15" monitors.

[NE146]

My monitor is 21" :P

There's just so much more nostalgia and fun (imho) to playing on a tv lying on a couch or in bed or lounging on the floor. And there's tv's all over the place.. not planted in a single location on a desk where I have to sit in a chair (and where I also do work.. bleh).

You can't knock one or the other. We ALL here obviously play games on our pc's and our tv's. But there's no doubt which one wins out.. it's lounging comfortably, gamepad-in-hand with a console on the TV! :D It's the classic console way 8-)

[Sylentwulf]

I wa actually pretty let down with my 21" actually. When I went from a 15 to a 17, it seemed HUGE, then I went from a 17 to a 21, and I barely noticed the difference (Bseides the WEIGHT, my GOD! I can't believe my desk is still standing)

[digdug]

First off, I have ALL 3 systems (along with almost all the classic ones) and each system has its strong points and weak points. For Microsoft to succeed, and close the gap with Sony it will have to continue to make great games like HALO, and other good online games. However, what Microsoft lacks is a good base of RPG's, and Adventure games. Sony and somewhat Nintendo have a descent amount of RPG's. Nintendo has cornend the younger crowd, Sony has cornered the world with high visibiility marketing strategy. Microsoft has the $ and the know how but lacks in the experience to overtake Sony in the console world. Yes I know they have gobbled up a lot of 3rd part companies but without a VARIETY of software to broaden there audience they will continue to be and fall further behind Sony.


On a side note I feel the best system is the system that has the games that person wants to play at that time, and whoever, makes those games will win the console wars.


Dig Dug

[zmeston]

Well, I know you are trying to be funny naming less than impressive Xbox games ( Kakuto Chojin, and Tao Feng) but you know as well as I, that all 3 "next generation" systems are pumping out great games at an alarming rate!! You also know that PS2 has it's fair share of crap titles!!!! Again I am not knocking any of the systems currently out, they are all great in their own, but the things that Xbox can do that the others can't is obvious!! I still feel as more and more people realize this, the gap will narrow!!
E.--

There are indeed great games for all three systems, but the PS2 has the considerably majority of them (at least, that's what the sales charts indicate). And if you break it down by percentage, the Xbox has more straight-up awful games than the PS2.

Feel all you want, my friend, but every meaningful statistic indicates that the gap between the PS2 and Xbox will continue to widen. For this generation of systems, at least, Microsoft will be fortunate to finish in second place, not first.

To reiterate: yes, the Xbox is the most powerful console at the moment; the power of a game console has never determined its success or failure; the Xbox will never overtake (or even close in on) the PS2. Sony declared victory at last year's E3, to give you an indication of how mightily Microsoft is struggling to compete.

Don't get me wrong; as a game journalist, it benefits me for every game company and game console to succeed. And in fact, Microsoft treats me much better than Sony or Nintendo. But the cold, hard facts are that Sony has won the hardware wars for the second generation in a row.

-- Z.

[geelw]

AROOOOGA!! AROOOOGA!!

FanBOI alert!! FanBOI alert!!


tell me about it... LOL ...this reminds me of writing sega consumer service back in '94 with some pressing questions and getting a form "golly gee, we're sega, and we're so great!" letter back a few weeks later and no answer to my questions... x_x

[Captain Wrong]

To me the Xbox is 100% going the way of the Sega Dreamcast. Why? RAMPANT PIRACY.

I mean who buys Xbox games anymore? Just like what happened with the Dreamcast, everyone just downloads the games and gets them free. And with more and more people modding their Xbox's it will just get worse.

It's the Sega Dreamcast story all over again. Xbox is cracked.. and will soon be at the point of no return.

Umm...the first Playstation was about a MILLION times easier to pirate games for and it did really well inspite of that fact. I hardly think Dreamcast or Xbox piracy is rampant because it's not something you can go to Funcoland, buy a Goldfinger and be burning discs tonight.

The Xbox is struggling because they just don't have the games. Period. I think MS tried an "if you built it they will come" approach with making the Xbox more powerful than anything else. Problem is, they only ones who came were Oddworld, and really that's a niche company.

MS needs to start making better sweetheart deals than Sony. That's what it boils down to. I really doubt all the developers are staying with Sony because they like the comapny so much or the machine is easy to work with (why am I still seeing jaggies in recent games?!?) It's all about the money and what they're getting from Sony to stay on board.

Trust me, if MS could get Rockstar just for the next GTA to be Xbox exclusive, they'd be in business.

[zmeston]

Trust me, if MS could get Rockstar just for the next GTA to be Xbox exclusive, they'd be in business.

Yep. That's why Sony paid Rockstar God only knows how much money to keep GTA a PS2-exclusive franchise. I've heard that the Xbox version of GTA3 was all but completed (since it was essentially the PC version) when Sony and Rockstar struck their deal.

The dominance of GTA3/VC can't be understated. Rockstar is now the second- or third-largest publisher in the industry, thanks to TWO GAMES. Admittedly, they're two of the greatest games ever made, but still.

-- Z.

[Captain Wrong]

Trust me, if MS could get Rockstar just for the next GTA to be Xbox exclusive, they'd be in business.

Yep. That's why Sony paid Rockstar God only knows how much money to keep GTA a PS2-exclusive franchise. I've heard that the Xbox version of GTA3 was all but completed (since it was essentially the PC version) when Sony and Rockstar struck their deal.

The dominance of GTA3/VC can't be understated. Rockstar is now the second- or third-largest publisher in the industry, thanks to TWO GAMES. Admittedly, they're two of the greatest games ever made, but still.

-- Z.

That's what I'm saying. It would have been worth Bill Gates not adding another wing to the Gates mansion to get GTA on the system. MS has the cash, I'm sure they could outspend Sony if they wanted.

[odysseyzine]

Potential conflict of interest here, I am employed by Microsoft, but in a completely unrelated line of business. I have nothing to do with XBox, so I'm simply talking about this as a video game fanatic. I'm not devoted to any one system, but I do like the XBox quite a bit. It's up to you to decide if I'm biased. I just felt wierd posting my opinion on this without exposing that.

I don't know if anyone has read it yet (maybe it's been discussed in a forum already), but did anyone read Wired's article on Doom III? Apparently, Microsoft is bugging them to release it as an Xbox exclusive! The first Rare game hasn't hit the shelves yet. Fable still looks to be pretty cool. Plus there are other anticipated games that haven't arrived yet. It would only take one or two (huge) successes to turn the picture around for the Xbox. In the video game business, that's not such a crazy thing to expect.

I'm not saying that Microsoft will beat out Playstation 2 (because they won't at this point). But they probably have enough in the pipeline to make it profitable in the long run. I'm not sure that a game as big as Doom III could even do it, but it's sure to be a hit if it arrives as an Xbox exclusive, and it woudn't hurt things for them.

At any rate, I'm sure Xbox won't be thrown in the junk heap any time soon. I was surprised that Motley Fool would publish such a knee-jerk reaction to the losses in Home and Entertainment. They can afford to lose many times over until they get it right. [/i]

[zmeston]

Potential conflict of interest here, I am employed by Microsoft, but in a completely unrelated line of business. I have nothing to do with XBox, so I'm simply talking about this as a video game fanatic. I'm not devoted to any one system, but I do like the XBox quite a bit. It's up to you to decide if I'm biased. I just felt wierd posting my opinion on this without exposing that.

I don't know if anyone has read it yet (maybe it's been discussed in a forum already), but did anyone read Wired's article on Doom III? Apparently, Microsoft is bugging them to release it as an Xbox exclusive! The first Rare game hasn't hit the shelves yet. Fable still looks to be pretty cool. Plus there are other anticipated games that haven't arrived yet. It would only take one or two (huge) successes to turn the picture around for the Xbox. In the video game business, that's not such a crazy thing to expect.

I'm not saying that Microsoft will beat out Playstation 2 (because they won't at this point). But they probably have enough in the pipeline to make it profitable in the long run. I'm not sure that a game as big as Doom III could even do it, but it's sure to be a hit if it arrives as an Xbox exclusive, and it woudn't hurt things for them.

At any rate, I'm sure Xbox won't be thrown in the junk heap any time soon. I was surprised that Motley Fool would publish such a knee-jerk reaction to the losses in Home and Entertainment. They can afford to lose many times over until they get it right. [/i]

My take is that it's not so much the financial impact of the Xbox's financial losses as the psychological impact; it's the weak link in Microsoft's armor, the one that makes shareholders ask, "So, uh, why are you doing this again?" Microsoft tries to project an aura of invincibility, but they can't do that when the Xbox is hundreds of millions in the hole.

I don't know that the decade-old DOOM franchise still has the juice to move the masses, and FPSes, with their keyboard-and-mouse control schemes, aren't an especially popular console genre (although Metroid Prime hit the best-seller charts for a while). Also, I wonder what DOOM III will be like without the contributions of designer John Romero; id essentially became a 3D middleware company when he left.

The Rare games, I'm somewhat excited about, although Rare's most talented GoldenEye-era designers and artists have long since departed for Free Radical Design (TimeSplitters), and Rare's wonky recent output frankly justified Nintendo's loss of confidence. Starfox Adventures, in particular, was extremely formulaic and very blah.

-- Z.

[odysseyzine]

I don't know that the decade-old DOOM franchise still has the juice to move the masses, and FPSes, with their keyboard-and-mouse control schemes, aren't an especially popular console genre (although Metroid Prime hit the best-seller charts for a while).

If they did as nice a job on DOOM as they do on Halo, I think that the FPS genre works out pretty well on the XBox. Actually, Halo 2 might have more potential for Xbox than Doom III.


Also, I wonder what DOOM III will be like without the contributions of designer John Romero; id essentially became a 3D middleware company when he left.

No argument there, but the game does look very cool.


The Rare games, I'm somewhat excited about, although Rare's most talented GoldenEye-era designers and artists have long since departed for Free Radical Design (TimeSplitters), and Rare's wonky recent output frankly justified Nintendo's loss of confidence. Starfox Adventures, in particular, was extremely formulaic and very blah.

Nice point. I think my favorite Rare games were actually Wizards & Warriors and Marble Madness for NES. But they have been a good hit factory. They could come back.

I've said it in the past, but the one major setback that XBox has had, is the fact that it doesn't really differentiate itself from PS2. It does have features that are really cool. For example, I'd fork over some extra cash to be able to download the MechAssault levels and mechs without the Live subscription (I don't have broadband). That could be done for a lot of different games.

In the end, though. XBox needs at least one or two big, fat, congress-rattling hits to be profitable.

[Evil E]

Sony bets on PlayStation revamp
Hiroshi Suzuki Bloomberg News Tuesday, April 15, 2003
TOKYO Sales of Sony Corp.'s PlayStation 2 have slumped at Yodabashi Camera, a chain of electronic retailers in Japan, according to Makoto Seita, who oversees console purchases at the chain store.
.
To stimulate sales without mimicking rival console maker Microsoft Corp., which slashed the price of its Xbox by a fifth in Europe last week, Sony said Monday it would sell a new version of the video-game console. The difference: the new machine's DVD player will let users play their own home-made movies.
.
"Sony must be concerned about slowing sales," said Seita. "The new PlayStation 2 version is evidence that they're trying to broaden the console's user base."
.
Slower sales at Yodabashi Camera and other retail stores highlight the task facing Sony as it tries to stoke the appeal of the three-year-old machine and the fortunes of its video-game business. PlayStation 2 sales in Japan fell 16 percent to 3.4 million in the year ended March 31, the first yearly decline since the console's debut, industry researcher Enterbrain Inc. said.
.
What Sony does with PlayStation 2 is of no small concern since the game unit accounted for 36 percent of the company's operating profit in the quarter that ended Dec. 31. PlayStation 2, which has shipped more than 50 million units, outpaces sales of rival consoles from Microsoft Corp. and Nintendo Co. by about six to one in the $20 billion a year video-game industry.
.
Yet, PlayStation 2 in some ways has already been overtaken by the Xbox console, which features a more advanced graphics chip, a hard drive and an Ethernet connection for high-speed Internet access. The PlayStation 2 does not have a built-in hard drive and needs an adapter for Internet play.
.
Moreover, Sony executives will not say when the successor to PlayStation 2 will be on the market. Most analysts, including Satoru Oyam of Lehman Brothers Japan, say they do not expect the PlayStation 3 to go on sale for another two years. And there are good reasons why Sony might not be in a hurry to introduce the new machine.
.
Because it takes time to recoup development costs, console makers usually lose money on each game box they sell in the first few years after the machines hit the market. The makers reason that sales of game software, where margins are higher, will offset hardware losses. Sony's original PlayStation, which debuted in 1994, took a year and a half to be profitable. Sony began making a profit on its PlayStation 2 console after seven quarters, said a spokesman, Koichiro Katsurayama.
.
Thus, analysts say Sony could respond to Microsoft's move with aggressive cost cutting. If it were to raise margins by lowering production costs, it could match Microsoft's retail price cuts without sacrificing profit.
.
Sony's game unit now makes about ¥3,000 ($25) on each PlayStation 2, estimates Soichiro Fukuda, an analyst at Nikko Citigroup. Fukuda figures Sony was able to turn a profit on the PlayStation 2 by increasing its yield rate on chips used in the device and relocating production to lower-cost areas like China.
.
Microsoft loses about $70 on each Xbox it sells, according to Bob Austrian, an analyst at Banc of America Securities. Xbox will have been on sale for two years in December.
.
"It usually takes about five years for a game maker to collect all development costs for a game console," said Hideaki Kurimoto, a fund manager at Meiji Dresdner Asset Management Co.
.
Last month, Sony said it would move all PlayStation 2 production this year to plants in China run by the Taiwan companies Hon Hai Precision Industry Co. and ASUSTeK Computer Inc. Prior to the announcement, Sony Computer Entertainment Inc. made half of its PlayStation 2 units at two plants in Japan.
.
Lower production costs will give Sony options to bolster sales such as cutting the console's retail price or offering a new model with added features for the same price, said Kenichi Fukunaga, a Sony Computer spokesman. "We want to expand the PlayStation 2 user base," he said.
.
In February, Sony Computer started selling the game console in three different colors - silver, pink and blue. The colored models sell at a recommended retail price of ¥25,000, about the same as existing models.
.
The PlayStation 2 with the improved DVD playing function and a new remote control goes on sale May 15 in Japan. The new DVD player will conform to the rewritable DVD standard; the new remote controller will be able to turn the console on and off and open and close the DVD tray.
.
Nintendo, whose GameCube sales fell 44 percent short of its target in the last business year, said last week it would not cut the price of its console in response to Microsoft. Nintendo will instead give away one of its newest games with each GameCube it sells, the company said Friday.

[cheesystick]

You know, the reason I come to the DP message board is to get away from all these freaking newbie fanboys who argue and bitch about which is better of the 'big three'. Then here I am, surfing the board, and I run into this crap. I dont need to hear this, I dont wanna see this. I Know that it was my choice to read this thread, and if I dont like it that no one if forcing me to read it, I just thought the people on this board would be a little more mature with their debate.
Please, let us all admitt, that this discussion is lame, hella lame. Games are fun, all the systems have good games, so whats the problem?
There shouldnt be a problem, there shouldnt be an issue. I think we should all stop bitching about this, cuz its freaking stupid. If you wanted to do this all day, you should take your butt over to the gameFAQs message boards, you find plenty of other dellow immature childish fanboys there to play with.
-crispy

[Anonymous]

Granted there is some um zealous talk in this thread, but I think there is a lot to be gained talking about the introduction of a third 'power' into the console police action. Something like this has a very real effect on the industry and can be very harmful (or helpful) from an economic standpoint. If people think that Microsoft's (or, 6 years ago, Sony's) move into the game market could bring about another crash or 'recession' in the video game industry, then it's totally worth talking about.

[YoshiM]

You know, the reason I come to the DP message board is to get away from all these freaking newbie fanboys who argue and bitch about which is better of the 'big three'. Then here I am, surfing the board, and I run into this crap. I dont need to hear this, I dont wanna see this. I Know that it was my choice to read this thread, and if I dont like it that no one if forcing me to read it, I just thought the people on this board would be a little more mature with their debate.
Please, let us all admitt, that this discussion is lame, hella lame. Games are fun, all the systems have good games, so whats the problem?
There shouldnt be a problem, there shouldnt be an issue. I think we should all stop bitching about this, cuz its freaking stupid. If you wanted to do this all day, you should take your butt over to the gameFAQs message boards, you find plenty of other dellow immature childish fanboys there to play with.
-crispy

Yer gonna get some kind of fanboyism no matter where you go. I only really saw one or two people making fanboyish posts. The rest were pretty mature, IMO.

I agree this is something good to talk about. Sure we've had other companies jump into the industry but not as big and as determined as Microsoft. The hardware has a lot of potential but the system is becoming home to a ton of ports rather than a great selection of good exclusive software. Personally I like the Xbox (for some reason "Xbox" doesn't read nearly as well as "XBox") and am hopeful that we'll see some different genre busting things come from this console.

Oh, by the way, the 90's called. They want their "hella" back. :P

[zmeston]

You know, the reason I come to the DP message board is to get away from all these freaking newbie fanboys who argue and bitch about which is better of the 'big three'. Then here I am, surfing the board, and I run into this crap. I dont need to hear this, I dont wanna see this. I Know that it was my choice to read this thread, and if I dont like it that no one if forcing me to read it, I just thought the people on this board would be a little more mature with their debate.
Please, let us all admitt, that this discussion is lame, hella lame. Games are fun, all the systems have good games, so whats the problem?
There shouldnt be a problem, there shouldnt be an issue. I think we should all stop bitching about this, cuz its freaking stupid. If you wanted to do this all day, you should take your butt over to the gameFAQs message boards, you find plenty of other dellow immature childish fanboys there to play with.
-crispy

My apologies for feeding the fanBOI. Won't happen again.

-- Z.

[Evil E]

You know, the reason I come to the DP message board is to get away from all these freaking newbie fanboys who argue and bitch about which is better of the 'big three'. Then here I am, surfing the board, and I run into this crap. I dont need to hear this, I dont wanna see this. I Know that it was my choice to read this thread, and if I dont like it that no one if forcing me to read it, I just thought the people on this board would be a little more mature with their debate.
Please, let us all admitt, that this discussion is lame, hella lame. Games are fun, all the systems have good games, so whats the problem?
There shouldnt be a problem, there shouldnt be an issue. I think we should all stop bitching about this, cuz its freaking stupid. If you wanted to do this all day, you should take your butt over to the gameFAQs message boards, you find plenty of other dellow immature childish fanboys there to play with.
-crispy
Waa Waaa!!! Booo Hooo--You cry like a little bitch!!! This list is to talk about ummm, let's see, video games and systems, and voice opinions!! America is freedom of speech fool!!

[Cmtz]

You forget even though everyone can post anything they would like on the net. Not everyone is from America.

I too think that you are trying to hard to convince yourself that the xbox will over take sony. Sony is the number one company and will continue to be it for a couple more years. I dont have a ps2 I have a GC and I love it. But, I still see the truth. You have to be blind to not see sony as number 1.

[Mr Mort]

As far as I'm concerned, the more consoles, the better.

More consoles means more competition, which means better products and more innovation so that console manufacturers can get your attention.

Besides, if one was to think that MS does not belong in the business with Sony and Nintendo, never foget this:

Back in the day, Sony was the new kid on the block against Sega and Nintendo.

To say that MS has no business in the video game industry is just as ludicrous as saying Sony had no business in the industry in 1994.

It makes me sick when people say, "I hope 'this or that' system dies". Because when a console goes belly up, we get one step closer to mediocre games, more complacency, and less innovation...