Wednesday, March 28, 2007

Gaming and Microsoft

Microsoft at last stopped further rumors by announcing XBOX Elite today.This came days after Sony PS3 European launch.Microsoft is NO.2 player in Game console market and controls around 20% share with Sony and Nintendo controls 70%,10% respectively.Microsoft entered in Gaming market back in 2001 and steadily made progress though it will not turn profitable till 2008.They already burned more than $3bn and it started paying dividends and today it accounts for 8-10% of Microsoft's revenues.Microsoft entered into this 'coz they thought Game consoles can be threat to Windows PCs 'coz traditionally PC is not known for rich gaming experience and Sony's success further pushed them into this.XBOX was the vision of Robby bach,President of Microsoft's Devices and Entertainment division.

Microsoft's weapon was online gaming and it became huge hit and today it boasts more than 6mn XBOX live users.Off late Sony and Nintendo started online gaming service,but lacks the following of XBOX live.Nintendo's Wii proved a big success for it's innovative virtual controller and it continue to be leader in portable gaming market with 60% market share and sony complements with 40%.Microsoft recently opened XBOX live gaming service to Windows Vista PC users also to attract more people to gaming.Microsoft last Nov started introducing Movies and HD content download service for XBOX users and this move mainly aimed at countering Apple TV threat which made debut in the market recenlty.Microsoft also pursuing its IPTV dream in XBOX 360.

Today,XBOX360 is the best selling Game console in US and Europe but it lacks appeal in Japanese market.Sony,Nintendo both Japanese companies giving XBOX a run for its money on home turf.It’s also common for video-game console makers to lose money on hardware, and make up for the loss via video game-title sales.According to iSuppli Sony looses more money on hardware than Microsoft,though it boasts Powerful and advanced processor.Microsoft already shipped more than 24mn consoles and boasts more Game titles than any other.According to Jupiter research Sony will loose 20% share in the coming years which will benefit Microsoft.I admire XBOX 'coz Microsoft shown some innovation,it didn't link windows with XBOX and it created new online gaming market.It's good to see Microsoft competing like any other as it took many things for granted in PC S/W market.

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