The Microsoft chairman visited the largest video game exhibition of the year to promote the idea of “Play Anywhere,” where gaming devices, mobile phones, and computers are interconnected.
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| Source: Reuters |
Gates introduced an ambitious plan named “Live Anywhere,” using the success of the Xbox Live service as a springboard to penetrate a market of over 150 million Windows PC gamers. This is in addition to more than 1 billion mobile phones ready for gaming.
Elevating “Live”
Microsoft is currently a leader in online gaming services with Xbox Live, which allows players worldwide to compete against each other, download new games, and chat. Similar features will be integrated into the upcoming Vista operating system.
“This is an opportunity to elevate ‘Live’ to a new level. We will move from ‘Live’ to ‘Live Anywhere’,” Gates stated.
The giant entered the video game hardware business in 2001 with the original Xbox. However, the Xbox division operates independently from other parts of the company, including Windows.
Gates’ appearance at this year’s Electronic Entertainment Expo, abbreviated as E3, underscored the growing importance of the global video game industry (valued at nearly $30 billion) to Microsoft and the highly anticipated Windows Vista operating system.
However, launching a new gaming console is very costly—the entertainment and devices division of Microsoft reported a loss of $388 million in the last fiscal quarter, compared to a loss of $175 million a year ago.
Returning to “Live Anywhere.” This service will allow users to compete against each other in certain games, regardless of whether they are sitting at a computer, on an Xbox, or using a mobile phone. Additionally, it will enable users to start a game on Xbox and then continue playing it on their mobile phone or computer.
Although Microsoft was late to enter the video game market, it outpaced competitor Sony by releasing the Xbox 360 console last November, exactly one year ahead of Sony’s PlayStation 3.
What is the next-generation game?
Nonetheless, the cost of this advantage is not cheap. The production costs of Xbox surged last quarter as Microsoft ramped up its Xbox shipments to the market.
Sony officials remain optimistic and unfazed by Microsoft’s early moves. In fact, the director of Sony’s gaming division in the U.S. stated yesterday that “Next-generation games cannot take shape until Sony makes an announcement!”
“I think they were too bold in declaring next-generation games will only emerge with the PS3, while 10 million users have already voted for the Xbox 360,” Microsoft retorted.
Analysts believe that Sony, which holds nearly two-thirds of the global console market share, will face significant challenges ahead.
“Microsoft is an extremely formidable competitor. Sony needs to take Microsoft seriously and with caution,” noted Van Baker, vice president of research at Gartner.
At this year’s E3, Microsoft also showcased a short video clip of “Halo 3,” the latest installment in the renowned “Halo” series. Halo 3 is scheduled for release in 2007.
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