/ 8 December 2005

Microsoft ready for Xbox rematch

When Microsoft brought the first Xbox game console to the home turf of its Japanese arch-rivals in 2002 it was nearly two years behind Sony’s PlayStation 2 and it has trailed behind ever since.

This time the United States software giant is doing its utmost to prevent history from repeating itself.

On Saturday it will launch the next-generation Xbox 360 some months ahead of the PlayStation 3 and Nintendo Revolution, and in time for the Christmas rush. Neither of its two rivals plan to launch their new products until next year.

In a country where brand image is everything, the new sleek, silver Xbox 360 design should prove a plus compared with the chunky black box it replaces.

Even so, analysts expect Sony to fight back with a powerful new console of its own next year.

They believe Microsoft will still struggle to make a significant dent in the Japanese icon’s share of the game console market.

”No one — consumers or software makers — has been talking about the Xbox 360 lately although we only have a couple of days before the release,” said Nobuyuki Kawamata, an analyst at Tokai Tokyo Research Centre.

”Given also the fact that basic functions of Xbox 360 are inferior to Sony’s next-generation machine, and that there are not many newly-developed titles ready for the Japanese launch, Xbox 360 is not likely to become a must-buy console here in Japan,” Kawamata said.

The first Xbox, which was launched in 2001 and came to Japan in February 2002, flopped here in part due to a lack of games that appealed to local tastes, analysts say.

Although it only has a handful of games ready for the Xbox 360 launch, this time the US software behemoth has turned to local firms like Square Enix to create titles specifically for Japanese gamers.

Since the Xbox 360 went on sale in the United States on November 22, Microsoft has said it is on track to meet its target of shifting three million of the consoles by the end of February.

Despite its initial sales success, however, Microsoft faces a lawsuit in the United States alleging that the Xbox 360 was rushed on the market with a design flaw that causes it to overheat and freeze up.

Microsoft’s Japan unit said on Thursday the number of reported defects was very small and the computer giant was ”very surprised” to see the lawsuit.

Microsoft is hoping that being first into the market with next-generation consoles will help it penetrate the home base of its two arch-rivals for home video game sales.

”Unless we achieve meaningful success here, we cannot say we are a winner in the next-generation console battle,” Yoshihiro Maruyama, who heads the Xbox division for Microsoft in Japan, acknowledged to reporters earlier this year.

The price tag in Japan is ¥39  ($330 ) including tax.

The Xbox 360 comes equipped with a DVD player capable of handling CDs and digital photographs through a built-in Windows Media Centre — the same bundle of applications found in Microsoft’s Windows XP PC operating system.

It also has an ethernet port to enable high-speed internet connections for the popular ”Xbox Live” subscription service and other ports to hook up digital cameras or MP3 players.

Despite all this, analysts are doubtful of Microsoft’s chances of even coming close to usurping Sony as the industry leader.

”Given declining enthusiasm for the Xbox 360 by Japanese players and software makers, it would be almost impossible for Microsoft to overtake Sony or even Nintendo,” said Shinko Securities analyst Yuichi Kobayashi.

”Even from the global viewpoint, unless Sony fails to bring the next-generation PlayStation 3 consoles to the market on time, Microsoft appears to have almost no chance to be the industry leader,” he added. – Sapa-AFP