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Consumer electronics industry

Microsoft Launches Xbox 360, Entering Bitter Competition with Sony

Strategic Insights

— 1 min read

Microsoft's latest entrant in the console market, Xbox 360, marks a significant shift towards internet-connected gaming and digital media centers. Despite reportedly incurring losses on over 20 million Xbox sales since 2001, Microsoft is optimistic about the potential of its new console. Xbox 360 boasts enhanced capabilities, including internet connectivity, DVD and music CD playback, and video chatting with other Xbox users.

Key Takeaways:

  • Microsoft has sold over 20 million Xbox consoles since its entry into the market in November 2001, with most of the losses in its home and entertainment products division totaling $US3.5 billion ($A4.4 billion) attributed to Xbox.
  • Sony has sold more than 87 million PlayStations since 2000, significantly outpacing Microsoft's sales.
  • Xbox 360 is a "third-generation" console, more powerful, internet-connected, and closer in concept to a digital media center than a pure games console, with a 20-gigabyte detachable hard drive and support for wireless connectivity to home computers or digital music players.
  • The new console uses IBM's PowerPC microprocessor, which may not be compatible with the existing Xbox games portfolio, requiring developers to adapt their titles.
  • Microsoft has not set a price for Xbox 360, with US reports suggesting it will be close to Apple's iPod Photo, costing $499.

Statistics:

  • Microsoft has sold over 20 million Xbox consoles since 2001.
  • Sony has sold more than 87 million PlayStations since 2000.
  • Xbox 360's 20-gigabyte detachable hard drive is a significant upgrade over previous models.
  • The console's IBM PowerPC microprocessor is used in Apple Macintosh computers, offering enhanced performance.

Sources:

  • "Byline: GARRY BARKER... Microsoft has lined up for another billion-dollar joust with Sony,..." - The Australian
  • Microsoft's press release announcing the launch of Xbox 360
  • Interview with David McLean, Microsoft's marketing director for Xbox
  • US reports citing the likely price of Xbox 360 at $499

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