Microsoft's Xbox 360 Console Launch Signals New Battle for Control of Digital Entertainment

Strategic Insights -

The launch of Microsoft's Xbox 360 console marks a significant turning point in the battle for control of digital entertainment, as the company seeks to expand its audience beyond hardcore gamers and establish a foothold in the booming industry. With the Xbox 360, Microsoft is positioning itself as a leader in the development of next-generation consoles, boasting powerful hardware and a range of innovative features that are expected to attract a wide audience.

Key Takeaways:

  • Microsoft sold over 22 million Xbox consoles since its release in 2001, but the company has also lost more than $2 billion in its attempts to establish a foothold in the industry and compete with market leader Sony.
  • The Xbox 360 is designed to offer something for everyone, with features such as online multiplayer gaming, video streaming, and the ability to connect to a Windows XP computer using a wireless network or Ethernet cable.
  • More than 30 games are available for the Xbox 360 launch, including driving simulators, fantasy adventures, and shooting and fighting titles.
  • The console's design is a huge improvement on its predecessor, with input from a sculptor and industrial designers in Japan and the US.
  • The Xbox 360 is the first game console to support high-definition TV, with games looking spectacular on widescreen High Definition displays.
  • Microsoft has joined with Samsung to promote HD, installing over 1000 demonstration units in Australian stores.
  • The Xbox 360's online service, Xbox Live, is now integrated into every game, offering users the ability to download extra game levels, characters, and tracks, as well as sell customised items to other gamers.
  • The console's "ring of light" glows after receiving an invitation to join a game or chat, facilitating online play with mates.
  • The Xbox 360's DVD drive has limitations that will force developers to supply games filled with HD video on multiple discs.
  • Microsoft has already announced that a HD DVD add-on is in development, but it will be limited to movies only.
  • Sony's PlayStation 3 will be launched in November with a higher screen resolution than the 360 and the use of high-capacity Blu-ray discs.
  • Nintendo's new console, codenamed "Revolution", will also be released later this year and will offer DVD movie playback, an online service for downloading classic games, and web browsing.

Statistics:

  • The Xbox 360 is set to launch in Australia with over 30 games available.
  • More than 22 million Xbox consoles have been sold since its release in 2001.
  • The industry turns over $30 billion a year globally and games are the third most popular form of entertainment behind films and music.
  • Australia spends $1 billion annually on games.
  • The Xbox 360's DVD drive has a capacity of 20GB.
  • The console's wireless joypad and remote control are included in the more expensive $650 package.
  • Sony's PlayStation 3 will use high-capacity Blu-ray discs capable of storing 54GB.
  • The Xbox 360's online service, Xbox Live, has over 150 games in development.

Sources:

  • Microsoft's Xbox 360 Console Launch in Australia
  • Microsoft's Xbox Live Online Service
  • Sony's PlayStation 3 Console
  • Nintendo's Revolution Console
  • Australian Industry Association
  • Samsung Electronics