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Thursday, September 15, 2005

Microsoft Xbox 360 aims at Sony's hold on Japan

Microsoft Xbox 360 aims at Sony's hold on Japan

"Microsoft Corp. is making an unprecedented effort to woo Japanese gamers with its new Xbox 360 game console, but analysts say it will be lucky if it can put a dent in Sony Corp's PlayStation following.

Even before the release of the Xbox 360, Sony has created more market buzz in Japan for its next-generation PlayStation 3 console, due in the spring.

Microsoft Chief Xbox Officer Robbie Bach dismisses surveys showing interest in his new console is still low.

"None of that is worth anything," he said at the Reuters Technology and Telecoms Summit in Tokyo on Wednesday.

The lack of success in Japan with the first Xbox was due to lack of compelling games for Japanese, not relations with retailers or even the bulky design of the first Xbox.

"Ultimately if we had great games, people would have put a big, black Xbox in the living room," he said. This time, he says, Microsoft has laid the groundwork for just that.

Analysts expect the Xbox 360 to sell better than its previous version, but they don't expect it to seriously challenge Sony's dominance of the gaming market in Japan.

"There is no way it will come close to the PlayStation," said Tokyo-based Deutsche Securities analyst Takashi Oya. "Microsoft will have done well if it gets 10 percent market share in Japan."

U.S.-based research firm IDC estimates that Microsoft will sell 3.5 million Xbox 360 units in Japan by 2009, compared with 8 million PlayStation 3 units.

Microsoft and Sony dominate the $25 billion video game hardware and software market." [more]

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