Microsoft in game market beyond Xbox 360

by Blake Snow { Nov 22nd 2005 at 8:30AM }

Bill Gates, speaking to Reuters, said his company will continue to develop console hardware even if the Xbox 360 doesn't lead in worldwide market share. This obviously would be the case given Microsoft's desire to control the living room either with a PC or an Xbox. But what if the 360 sells below expected targets and amounts to losses? (see Xbox lost Microsoft $4 billion (and counting))

Mr. Gates goes on to say in the article: "In terms of how we've balanced technology in the [Xbox 360], we feel certain we've done a better job than Sony. You won't really know that until a year from now, when people are talking about how the games on our machines compare to the games on Sony's machines."

Strong words although expected. But who will blink first?

Reader Comments (Page 1 of 1)

L @ Dec 18th 2005 9:02PM

How much money will MS lose in the console market until their shareholders start to get annoyed? I mean, MS still has a *LONG* way to go before they turn a profit on their video game division (being something like 4 billion dollars in the hole?). X360 is still sold at a loss, but not nearly as much as the original Xbox was... but if it doesn't catch on, I'm not really that sure if you're gonna see MS risk trying again...

(Disclaimer: I happen to enjoy my original Xbox and will be most assuredly picking up a 360 soon after first price drop)

Rymix @ Dec 18th 2005 9:02PM

"But who will blink first?"

Microsoft already did.

g @ Dec 18th 2005 9:02PM

classic bill gates, trying to bash others when everybody know everything microsoft meakes is utter shit.

360 is the new dreamcast (except for the fact the dreamcast was actually pretty good)

Christopher7xii @ Dec 18th 2005 9:02PM

X360 blows. Seriously, what is all the hype about? I've been gaming with similar graphics for over a year now(and all their titles are/will be available for PC I bet). What a waste of their headstart on the next gen... If PS3 turns out the same, I really hate to say it, but I may be going over to the Revolution's playground

Scythe @ Dec 18th 2005 9:02PM

I felt so bad I was with a buch of my friends last night and all they talked about was how excited they are about getting the 360. I asked one which game he was getting for it and he said PDZ. I wanted to tell how bad a choice he was making but it didn't matter it was to late and he wouldn't belive me anyways.

The truth is that when everyone burns out over the hype and excitment they will see the mistake they made. When they look at the TV and say this doesn't look so next-gen but it has to be it's the 360.... Then when the PS3 comes out they will say yeah well those games are out for the 360 too. The only difference is that the PS3 Launch Titles will have awhile longer in the development.

Which mean that the crappy games the 360 has now won't be wasted on the PS3, the reson your getting these games is that the publishers havn't had enough time to make better games.

By time the PS3 is out all these defects and bugs will be worked out and you won't see many of these B-Games. Sure the 360 will have some nice games and I know it's all Launch titles but still to claim next-gen and give us last-gen quality... Shame on you Mr. Gates.

And if I see that Sony isn't living up to it's so said Next-gen games then a Nintendo Rev. will be my choice. I like that new Zelda, looks pretty sweet.

Truth @ Dec 18th 2005 9:02PM

See thats what I am talking about! Sony won't be in the lead anymore. To all you Sony lovers:
You Suck. Sorry ;) You are what you play. Do you get it? SONY sucks so whoever plays it sucks. Thanks Thanks, you all are welcome.

JPRacer @ Dec 18th 2005 9:02PM

"and all their titles are/will be available for PC I bet"...

So? I was planning to upgrade my PC but why spend $500 on a video card when I can get something better and get all the best PC game ports and the exclusives?

PC gaming is dead, there's like 3 titles a year max. I want on the PC and 4x that on consoles.

And g, I think MS makes very good products.

Truth @ Dec 18th 2005 9:02PM

I don't see why so many many people hate MS. Here are some reasons why MS is better than Sony:

1. They are a American born company.
2. They live up to what they tell us.
3. Better engineering/design on hardware.
4. There best at manipulating the consumer.lol
5. Last but not least, MS has Bill Gates. ya

R @ Dec 18th 2005 9:02PM

And why does being American make MS better?

What you write is global ya jingoistic, ethnocentric, nationalist fool!

Truth @ Dec 18th 2005 9:02PM

Hey R,

What I meant by that is all the other big companies like Sony and Nintendo are outside of the US. With MS in the works we now have a American console company.

J (The other one) @ Dec 18th 2005 9:02PM

It makes it better if you happen to be american b/c you are buying american but then again where are these being assembled. Overseas no doubt. But still nothing wrong with wanting to support your own. God knows we spend a crap load of money on foreign goods. Besides it may give a nice balance to things. If you only bought Japanese consoles and Japanese made games then wouldn't you be a ethnocentric nationalist fool also? Didn't think so.

Joe @ Dec 18th 2005 9:02PM

1. They are a American born company. (Ask GM and Ford what this is worth. Better yet, ask Toyota what it means.)
2. They live up to what they tell us. ( Wow! Thats a first. I guess you didn't use WinME, Win98, Win95 huh?)
3. Better engineering/design on hardware. (Wow! Here is another first. Where the heck have I been the last 20 years.)
4. There best at manipulating the consumer.lol (I'll give you this. They know how to get a monoploy and hold it. No question from me here.)
5. Last but not least, MS has Bill Gates. ya (Enough said.)

Scythe @ Dec 18th 2005 9:02PM

Sorry but it looks to me Japan is going to be getting more outa this then the USA, M$ is wanting them to be on with the 360 so bad they limited our consoles so they can give them more and even better bundles. So who loves you? Not M$ or Happy Bill Gates.

Art Guy @ Dec 18th 2005 9:02PM

As an owner of consoles by all three companies, I'm an equal opportunity basher. As an Apple user, I don't care for MS outside of the Xbox. I don't care for the GameCube controller and the removal of the progressive scan features.

However at the moment Sony is acting oddly anti-consumer, more than MS and Nintendo. Sony is using a DRM that makes the PS3 unplayable in high definition on MOST HDTVs. In case you are unaware, Sony is requiring HDTVs to support HDCP in order to watch Blu-Ray movies, and most HDTVs owners do not have this. What's the point of using Blu-Ray when most HDTV owners wont be able to watch movies in high definition because they crippled the system?http://www.drmadness.com/

People are going to be shocked when they learn that the only game system that can play on all HDTVs is the 360. Lets just hope that Sony will change their stance.

8Ball @ Dec 18th 2005 9:02PM

But it also look like microsoft wasn't the only one to drop that ball http://www.computerandvideogames.com/r/?page=http://www.computerandvideogames.com/news/news_story.php Sony is loosing proffit through research also.

Mojo @ Dec 18th 2005 9:02PM

UM, guys... Did any of you early recievers (like myself) notice? The Xbox 360 is really quite shit.

Lined up - starved, plugged it in, played for a few hours, and am really quite unsatisfied. the graphics aren't very good, the system interface is not very userfriendly, and the price tag is unjustified with anything you get on it.

I'm probably going to sell mine off on ebay now.

P.S. PDZ is the only game worth it right now, but even that is not good enough to justify buying it yet. Wait for the PS3 and N-Rev. Both will be similarly priced or less and will have alot more support or innovation.

Truth @ Dec 18th 2005 9:02PM

#15

Thats funny! How can you say the 360 is sh*t when it just came out today. How can you judge the console just off of the launch titles an claim it is sh*t????? It has plenty of time to show off its power and when it does you will feel very stupid for selling it. I bet you will buy another one once you see that the PS3 can't match up to the 360 experience.

Truth @ Dec 18th 2005 9:02PM

I meant # 16 ;)

apoc06 @ Dec 18th 2005 9:02PM

#14. HDCP is not a REQUIREMENT for the ps3. it may end up as the default, but not a requirement. besides the blu-ray technology spec isnt even wholely complete... sounds like FUD to me.

Simon @ Dec 18th 2005 9:02PM

#17 and #18,

The Xbox 360 is not impressive as I've witnessed it for about 12 hours now. It had promise, but it did not live up to what it should if it is to compete with the PS3.

Your opinion is outweighted by the fact that the PS3 will obviously lead the market again regardless of what you may think as there is an overwhelming advantage on almost all fronts and even in support as they have atleast loyalties from companies that believe in Sony's success of the PS2 to be carried on. This is just saying at the minimum level of support don't forget. The PS3 also has every advantage of technology and potential. Don't downstate the PS3 because you like the Xbox 360. The PS3 will surely be a better console, and with the Xbox 360 not impressing many new fans, the people behind the PS3 will be smiling from ear to ear.

Oh, and if you even look around, you'll see that hardly anyone is "really" impressed with the system. It's not quite a "sham" but it fails to bite into the PS3's dominant stance.

Truth @ Dec 18th 2005 9:02PM

Thanks Rog & Simon. I really can see the "Truth" now. If you would like to compare 360's launch titles with PS2's back in the day 360's titles are great. All I hear anymore from you people is blah blah blah about how PS3 with be better. The ones always talking down on MS, you poeple are afraid of change. MS will rule over Sony.

Truth @ Dec 18th 2005 9:02PM

An again Rog27, I am pretty sure that the world trade center was not destroyed because of me comparing MS to Sony. Thanks for hurting my feelings. :( lol

Christopher7xii @ Dec 18th 2005 9:02PM

PC Gaming is dead...? What the hell? 3 titles a year? Even if you think PC exclusive games, the line up is quite solid. I remember one day this week had three must have titles for PC... Quake 4, FEAR, and Ages of Empires 3. Then PC gets console ports too, which look WAY better. Not to mention controls are superior(considering you can buy ANY controller you want, with PS2/Xbox controller plug ins, as well as mock ups, then TONS of custom gaming mice and keyboards... it's delicious).

3 games? Here's what I've picked up this year.

-Quake 4
-Path of Neo
-Gun
-The Movies
-Call of Duty 2
-Doom3 + expansion
-Baldur's Gate(it's an oldy goldy)
-Ages of Empires 3
-Civilization IV
-Serious Sam 2
-X3: The Reunion
-Lord of the Rings: Battle for Middle Earth
-Pro Evolution 5(import)
-D&D: Dragonshards
-Star Wars: Battlefront 2
-Battlefield 2(and getting the expansion today)
-FEAR
-Fahrenheit
-Bard's Tale
-Warhammer 40k: Dawn of War
-Dungeon Siege 2
-Half Life 2/Counter Strike: Source
-and World of fucking Warcraft, quite possibly the most popular game out right now.

Tell me how PC gaming is dead again? Oh yeah, you're poor.

Art Guy @ Dec 18th 2005 9:02PM

apoc06 - "Mandatory HDCP encrypted output"
http://www.engadget.com/entry/1234000623059130/

Without a HDCP compatible HDTV you will NOT be able to watch programming in high def, that is old news. Sony has adding a ton of DRM into Blu-Ray because they are afraid of piracy.

Here is the scary question...will games be playable in high def if you don't have a HDCP compatible HDTV? I have a bad feeling that they wont. The reason being if Sony came out with component cables that could connect to an HDTV, people would be confused as to why they can play games in high def but not movies. I fear they are going to make HDMI cables a requirement for all high def output, not just movies. A requirement that will alienate most of the HDTV owners out there today. However with the recent DRM backlash we can hope this wont be the case.

Joe @ Dec 18th 2005 9:02PM

Of course PC gaming isn't dead. You have plenty of PC games you can play with the Xbox and Xbox360 The 360 will keep PC gaming alive all by itself. You can easily port PC games to the better selling 360.

Joe @ Dec 18th 2005 9:02PM

Christopher7xii @ Dec 18th 2005 9:02PM

"You can easily port PC games to the better selling 360."

---LOL, wtf? How can you even count PCs sold for gaming? I'd say a solid 90%+ of PC gamers build their own. Explain to me the logic in the X360 being "better selling" than PCs again?

Yes, the Xbox/X360 will play the same games as a PC... In a watered down form. That's like comparing DVD to VHS. If you could watch something on DVD, why would you bother with the VHS version?

Joe @ Dec 18th 2005 9:02PM

Christopher7xii,

Lets see numbers to back this up. How many copies of Path of Neo sold for the PC, Xbox, and PS2. Hell. I'll give you home court advantage. How many copies did Doom 3 sell on the PC and Xbox.

Only difference with using the DVD to VHS analogy is that people buy more console games then PC games. People aren't buying more VHS tapes then DVDs.

Walk into any Ebgames, Gamestop, Compusa, etc. and you'll see PC gaming is dead.

Joe @ Dec 18th 2005 9:02PM

Christopher7xi, actually your right. I take it back. PC gaming isn't dead. I can always play a mean game of Bejeweled or Soliture on my PC. LOL.

Scythe @ Dec 18th 2005 9:02PM

Microsoft dropped the ball this gen, I'm sorry but for them to release so soon before Sony only proves they want to sell as many 360's they can before the PS3 is out.

For 2 reason

1. If timmy just got a 360 for $500 this christmas from "Santa" do you think "Santa" is going to bring him another new system next christmas? No! So M$ Pulls ahead slightly.

and

2. M$ knows that the 360 is going to be out gunned and that they have to do whatever it takes to make money. They are scared of the PS3 and the potential it has over their system.

As of right now the 360 is done it's finshed no more upgrade or better GFXs. The PS3 can easly be updated as technolgy gets better in the coming months.

Sure we havn't seen what the 360 is really able to do for the next few months but the fact is that what it can do now is the same thing it can do when the PS3 comes out. The PS3 on the other hand can do more then the 360 since it won't have anything to compare to after it gets through the first few months or year.

See when the PS3 comes out everyone wil be comparing it to the 360, but after the launch titles the 360 will shine after it proves it can go futher then the 360.

Joe @ Dec 18th 2005 9:02PM

To be honest PC gaming isn't completely dead. I've actually purchased a few PC games in the last year or so. generally I'll get some FPS games since you can't beat the WASD setup. I also buy my stratgey games there since they won't work with a gamepad. I love Freedom Force Vs Third Reich. I'm also planning on getting The Movies. I also like to support the indie developers. So to me, PC gaming isn't dead.

I will say this. If there is a "watered down" console port I'll generally buy it over the PC version. I prefer the gamepad and I don't want to deal with the hassle of installing PC games due to those damn copy protection schemes. I want to pop the disc in and play.

I think Microsoft will keep pluggin away even if the Xbox360 doesn't get them 1st place. It may take them 5 or more versions, but they keep going until they are on top. Hell, look at what they did to Netscape and Palm.

cap @ Dec 18th 2005 9:02PM

"Posted Nov 22, 2005, 9:51 AM ET by Truth
I don't see why so many many people hate MS. Here are some reasons why MS is better than Sony:

1. They are a American born company.
2. They live up to what they tell us.
3. Better engineering/design on hardware.
4. There best at manipulating the consumer.lol
5. Last but not least, MS has Bill Gates. ya"

And here are the reasons why sony are better than MS.
1. they are not an american company.
2. they live up to what they tell us more than MS.
3. not only better engineering/hardware but actual NEW technology.
4. do not manipulate anyone but let people make their own decisions.
5. Last but not least,sony does not have bill gates.

James @ Dec 18th 2005 9:02PM

Xbox360 may be sold at a loss but they are sure making a killing on accessories. "They" include Sony and Nintendo too.

$40 for a 64 MB Memory unit.
$40 for a Xbox360 controller.
$50 for a wireless Xbox360 controller.
$100 for the wireless Xbox360 adapter.
$20 for the wireless play and charge pack.

If the markups on the accessories are any indication, money made on the accessories would offset losses on the console itself. Maybe not all, but definitely some.

Joe @ Dec 18th 2005 9:02PM

#33. I agree that these companies have always ripped you off with the accessories, but Microsoft is seems to be taking it to the extreme. PS2 and Gamecube wired controllers cost $24.99. Hell, the Wavebird costs $34.99.

Maybe this is the next-gen prices. I for one hope that Microsoft isn't starting a trend. I hope nitendor and Sony can keep their accessory prices under control. I am a little worried though.

Maybe this what they mean buy next gen. I will give Microsoft this. You really are basically geting to controllers for one with the Xbox360 controller. Its also compatible with PCs. Hell, I'm thinking about buying one just for that. Most PC controllers are garbage.

I just wish fanboys would stop saying that Microsoft, Sony, and Nintendo listen to and love the gamer. They love the dollars in your pocket.

Kirtan @ Dec 18th 2005 9:02PM

PC Gaming is dead?

Tell that to the 4 Million Paying Subscribers to World of Warcraft.

Truth @ Dec 18th 2005 9:02PM

Thanks Cap that was funny. But number's 2,3, & 4 are very wrong. Sony's lies to us everytime they release a console. I thought PS2 had Toystory graphics???? What happened???? And their technology is horrible. I have so many friends that have had a PS1 or PS2 break due to bad engineering and the rush of development. When it comes to the Xbox & Xbox360 they gave us what they said.

Vince @ Dec 18th 2005 9:02PM

"". Posted Nov 22, 2005, 9:51 AM ET by Truth
I don't see why so many many people hate MS. Here are some reasons why MS is better than Sony:

1. They are a American born company.
2. They live up to what they tell us.
3. Better engineering/design on hardware.
4. There best at manipulating the consumer.lol
5. Last but not least, MS has Bill Gates. ya""

fuckin fanboys...
1.It doesnt make a difference where the company is coming from you racist fag
2. So does sony for the most part but they keep us in the dark becuz there tryin to make it best for us as possible and dont want any fuck ups like ur beloved 360/xbox 1.5
3. Graphically ps3 is better then the 360 we all know this come on people.
4. OK? and wuts that have to do with gaming and fun?
5. Bill Gates is a total nerd hes scared becuz he knows ps3 will do better.

plz just stop with the fanboy nonsence

Nabs @ Dec 18th 2005 9:02PM

Not to be a hater...I don't not necessairly dislike or do not use Microsoft products, but people have to admit that Microsoft has no sense of innovation whatsoever.
All they do is "pirate" other companies products in whatever field they're in without adding much but market share; no original ideas.

A few examples...
1) Netscape vs Internet Explorer
totally took the concept and incorporated in the operating system to gain more users.
(not that netscape came first, there was Mosaic, but the web for the masses was Netscape)
2) Mac OS vs Windows
Many ideas were pillaged from Apple. Windows only has a recycling bin because Apple already came with the concept of a trash can.
3) Java vs C#
Sun has their own language, we don't like Sun, let's make our own
4) AOL instant messenger (ICQ) vs MSN Messenger
we need one of that too.
5) Google vs MSN Search
Google has a great search engine, we need one too. (MSN search was first, but it sucked)
6) Google Print vs Microsoft's Book plan
Another case of outright theft of someone else's idea.
7) Google Maps vs Microsoft maps -
Microsoft maps sucks.

That's what I came up with in thinking for one minute...I bet there's plenty more I can come up with.
In fact the only thing I can think of that Microsoft "innovated" was coming up with AJAX and all that is is a merging of xml with javascript; two things they didn't come up with.

I looked at their website to try and find something innovative....and all I found was that the only way they ever obtained anything original was by buying other companies.
i.e. Hotmail

Someone Please tell me something that Microsoft has truly been the first to develop and innovate instead of just ripping others off. It's like they're a parasite. They are very good at having a good legal team to defend all these actions. I'll give them that

Vince @ Dec 18th 2005 9:02PM

nabs i agree with u thats like the ps2 controller look at the xbox controller it almost looks similar in ways like button locations and form. They knew in 2000 sony was a big hit with consoles so they probaly needed a idea to make some more fuckin money with xbox. No matter what Playstation will always be orginal and known as the best consoles in console history continueing to raise the bar.

mk @ Dec 18th 2005 9:02PM

OMG the playstation the best console in console history??? are friggin kidding me. Sorry the greatest console of all time the Orginal NES. Nintendo revived a dying industy and all because of one little console.

and as for this
1. They are a American born company.-Who Really gives a Damn if it's a Japanese or American company???

2. They live up to what they tell us.- hahahahahaha live up to what they tell us now thats funny MS,Sony and Nintendo have all at some point not lived up to their hype.

3. Better engineering/design on hardware.-Where in the world do you get this from??

4. There best at manipulating the consumer.-i'll give this a tie with Sony since it's seems so many people are blinded by the brand name thinking just because it has Sony or Microsoft means it's good.

5. Last but not least, MS has Bill Gates. OMG Bill Gates is a big reason i don't like Microsoft.

truf @ Dec 18th 2005 9:02PM

wow the PS3 isnt going to get better simply cos its coming out later. Sony are going to be taking a real hit with it as it is, the specs are for the most part set, unless something just doesnt work and needs changing. They need to leave themselves time to manufacture the thing too.

Id expect PS3s graphics to be round about the same as 360s, why? well developer comments, and PS3 is harder to develop for.

More than any other gen sony dont have this won till they have it won. And theres no such thing as loyal developers, ask nintendo, ask sega, heck ask sony. Developers are controlled by publishers and publishers will go where they THINK they can gain the most profit.

Publishers, followed by developers, follwed by consumers are the ones who truly decide who wins a console war.

Ah yeh and MS and Sony both dont know how to design APPROPRIATE hardware for games, they both got bamoboozled by IBM as far as i can tell. Though sony got what it wanted a powerful HD player disguised as a console. It remains to be seen if nintendo were cleverer than their competitors.

g @ Dec 18th 2005 9:02PM

#23 should def. get out a bit more.

Sony and M$ are just meat-heads. 'POWER! POWER! I can do so much graphics power and MHz and Framerate and Polygons!!!!"

Who gives a shit? if the games are shit, no-one's gonna want to play em. M$'s 360 units in the UK are so shit, 2 playable demoes!!!! 2!!!!! one is call of duty with only looks nice cos its on a HD tv, graphics didnt blow me away, and the other is King Kong which was FUCKing shit.

Nintendo will enrich ur lives so much more with the revolution, its going to be amazing. All u PC geeks just want to frag people online at a better framrate. whoopi

Christopher7xii @ Dec 18th 2005 9:02PM

"All u PC geeks just want to frag people online at a better framrate. whoopi"

Thanks, G! Appreciate comments from such amazing scholars as yourself. Nintendo didn't do much to "enrich" my life. If anything, just as all consoles, it sort of wastes time and prevents you from doing anything creative or bettering yourself as a human being. But back to your awesome comment about PC gamers...

Half of what I listed were Real Time Strategies. Then I had the Movies which is closer to Sims on crack than FPS, World of Warcraft/EverQuest are MMORPGS... Then I listed a space simulation/colony game, a soccer game, an RPG, some action games, then a few FPS's. Its not about the better framerate, its about the game that looks 4x better than the X360(so about 20x better than what the revo will look like), with variety of controls, genres, as well as custom mods. It's about how fun they are to play. Try FEAR single player and TRY to tell me that it isn't one of the most exhilirating game experiences you've had in a LONG time.

Truth @ Dec 18th 2005 9:02PM

You guys are so nice to me! Thanks for the slam. lol

P.S. I don't give a sh*t. Sorry MS is better than Sony. I am not racist. I just thought it would be nice to have a American console company. I support my country.

Christopher7xii @ Dec 18th 2005 9:02PM

"I support my country."

You support your own kind and discourage others. Way to think global community.

Steve's iBook @ Dec 29th 2005 8:58AM

Amazing how nothing at all has changed in 20 years. Nintendo still do the best games, Apple still make the best PC's and Microsoft still make third rate shit for people who aren't very bright. The really scary thing is, despite the massive losses MS have made in their laughable attempts at a console, there are still literally thousands of people who actually went to a shop and bought this thing!!! Instead of security cameras outside of stores, maybe we should have snipers!!!