Michael Bluth
02-16-2003, 04:18 PM
http://www.nytimes.com/2003/02/16/business/yourmoney/16XBOX.html
Here are some quotes from the article:
On a micro level, investors "don't like it because they lose money on every piece of hardware they sell," said Michael P. Wallace, a video game industry analyst at UBS Warburg. But, he added, "on a macro level, they're in the No. 2 spot."
In addition to overtaking Nintendo, which makes the GameCube console, as the second-place console maker, Microsoft has put itself in a position to compete with Sony for years to come, Mr. Wallace said.
When Microsoft introduced the Xbox in January 2001, it promised to put $2 billion into the product — $500 million in advertising alone. It may well need to spend it all. In 2002, according to UBS Warburg, Sony sold 18.3 million PlayStation 2 consoles, while Microsoft sold 5.2 million Xbox machines and Nintendo sold 4.7 million GameCubes. These figures reflect consoles sold to consumers, not consoles that the manufacturers ship to wholesalers or retailers.
Electronic Arts also projects that Microsoft will beat Nintendo in Europe, the second-biggest market after the United States. Still, Microsoft is particularly struggling in Japan, where it has been virtually shut out of the market, selling a mere 300,000 consoles, according to the company. Throughout all of Asia, Microsoft has sold only 500,000 Xbox consoles, according to UBS Warburg, compared with Sony's sales of 3.67 million PlayStation 2's.
"If Xbox has any chance of closing the gap against PlayStation, Microsoft is going to need a better Japanese strategy," said Michael Gartenberg, an analyst at Jupiter Research. He said it needed to have better games and to burrow into the Japanese distribution channel.
Microsoft said it was already making progress on games, introducing in Japan a game called DOA Xtreme Beach Volleyball. The 80,000 games sold out within two days.
Analysts said Microsoft must also persuade video game makers to produce versions of their products for the Xbox. According to figures provided by Microsoft but compiled by NPD Funworld, an industry research group, there are 458 games available for the PlayStation 2, versus 207 for the Xbox and 168 for the Nintendo GameCube.
Some big game makers have made versions only for the PlayStation 2. Most notable has been Grand Theft Auto, the most popular game the last two years. Microsoft said it is in discussions with the game's maker, Take Two Interactive, to persuade it to produce a version for the Xbox.
To bolster its game portfolio, Microsoft has been in discussions to buy Vivendi Universal Games. Microsoft would not comment on the issue.
In the meantime, Microsoft has quietly begun to make inroads with a feature that cuts across individual games: Xbox Live. This is a $50 attachment that lets console owners play games against one another over the Internet. Microsoft, citing figures from NPD Funworld, said it sold 350,000 Xbox Live kits since introducing the service in November. Sony has sold 438,000 of its own online kit, said Microsoft, citing NPD Funworld figures, but Sony has been selling its kit for almost twice as long, since August.
http://www.nytimes.com/2003/02/16/business/yourmoney/16XBOX.html
GTA on XBox? I don't think I'd buy it unless it were online, even then I'd wait for a price drop.
Here are some quotes from the article:
On a micro level, investors "don't like it because they lose money on every piece of hardware they sell," said Michael P. Wallace, a video game industry analyst at UBS Warburg. But, he added, "on a macro level, they're in the No. 2 spot."
In addition to overtaking Nintendo, which makes the GameCube console, as the second-place console maker, Microsoft has put itself in a position to compete with Sony for years to come, Mr. Wallace said.
When Microsoft introduced the Xbox in January 2001, it promised to put $2 billion into the product — $500 million in advertising alone. It may well need to spend it all. In 2002, according to UBS Warburg, Sony sold 18.3 million PlayStation 2 consoles, while Microsoft sold 5.2 million Xbox machines and Nintendo sold 4.7 million GameCubes. These figures reflect consoles sold to consumers, not consoles that the manufacturers ship to wholesalers or retailers.
Electronic Arts also projects that Microsoft will beat Nintendo in Europe, the second-biggest market after the United States. Still, Microsoft is particularly struggling in Japan, where it has been virtually shut out of the market, selling a mere 300,000 consoles, according to the company. Throughout all of Asia, Microsoft has sold only 500,000 Xbox consoles, according to UBS Warburg, compared with Sony's sales of 3.67 million PlayStation 2's.
"If Xbox has any chance of closing the gap against PlayStation, Microsoft is going to need a better Japanese strategy," said Michael Gartenberg, an analyst at Jupiter Research. He said it needed to have better games and to burrow into the Japanese distribution channel.
Microsoft said it was already making progress on games, introducing in Japan a game called DOA Xtreme Beach Volleyball. The 80,000 games sold out within two days.
Analysts said Microsoft must also persuade video game makers to produce versions of their products for the Xbox. According to figures provided by Microsoft but compiled by NPD Funworld, an industry research group, there are 458 games available for the PlayStation 2, versus 207 for the Xbox and 168 for the Nintendo GameCube.
Some big game makers have made versions only for the PlayStation 2. Most notable has been Grand Theft Auto, the most popular game the last two years. Microsoft said it is in discussions with the game's maker, Take Two Interactive, to persuade it to produce a version for the Xbox.
To bolster its game portfolio, Microsoft has been in discussions to buy Vivendi Universal Games. Microsoft would not comment on the issue.
In the meantime, Microsoft has quietly begun to make inroads with a feature that cuts across individual games: Xbox Live. This is a $50 attachment that lets console owners play games against one another over the Internet. Microsoft, citing figures from NPD Funworld, said it sold 350,000 Xbox Live kits since introducing the service in November. Sony has sold 438,000 of its own online kit, said Microsoft, citing NPD Funworld figures, but Sony has been selling its kit for almost twice as long, since August.
http://www.nytimes.com/2003/02/16/business/yourmoney/16XBOX.html
GTA on XBox? I don't think I'd buy it unless it were online, even then I'd wait for a price drop.