On the heels of yesterday’s agreement to partner with NTT Communications to
put the celebrated Xbox on broadband in Japan, Microsoft Corp. Friday
expanded on this and all but vowed to corral the gaming market in Japan.
As the keynote of the 2001 Spring Tokyo Game Show, Microsoft Chairman
Architect Bill Gates outlined a strategy to entice game makers to build
content for the device. Gates’ said he has secured commitments from more
than 70 Japanese game companies, including powerhouse Sega Corp, which he
said would furnish 11 titles on the device. Xbox is slated to hit stores in
fall 2001.
“With Xbox, our goal is to create the future of video gaming, and our work
in Japan will play a key role in achieving that,” Gates said.
Microsoft’s pledge is no small undertaking; the software giant has pledged
to pump $500 million in the first 18 months of the Xbox’s launch on
marketing. One of the company’s main selling points is to tempt developers,
and ultimately consumers, that the game console would yield three times the
graphics of current game systems, including the vaunted Sony PlayStation 2.
With tough competition from mainstays Sony and Nintendo, securing Sega,
which boasts a net worth of $2.5 billion and is acknowledged as the industry
leader in interactive digital entertainment media, is a quality score. Sega
will premiere “Jet Grind Radio Future” (tentative title), the latest version
of “Panzer Dragoon,” “GUNVALKYRIE” and the latest version of “Sega GT.” Sega
also agreed to consider harnessing the Xbox Ethernet port and hard disk
drive features to create new online games.
Jefferies & Company analyst James Lynn told On24 Friday that having Sega
games made exclusively for the device could attract more users to the
console.
On the flipside, the deal is highly positive for Sega, which desires to beef
up its game software development.
In Thursday’s deal with giant telco NTT Communications, Microsoft said the
two firms would work together to build a broadband online gaming service for
Japan. Gates also touched on a plan for online video games, in which Xbox
gamers can connect to a high-speed, always-on game network. This new
service, slated to launch in 2002, will offer gamers in Japan a new way to
experience game play and potentially evolve the idea of connected gaming
from a novelty to a standard method.
NTT Com, Japan’s leading telecommunications company, will provide Microsoft
with access to ADSL through OCN’s broadband services.
Microsoft has also said it would create an Xbox Division in Japan to
facilitate the online gaming services. The division is responsible for
managing third-party relationships with Japanese games companies, and for
managing Xbox operations, marketing, research, sales and support in Japan.
Gates said he envisions scenarios for Xbox online game play in the future,
including the notion that Xbox gamers will be able to connect with online
gaming communities to compete in social environments.
Earlier this week, Microsoft announced changes to the pending game console,
including an upgrade from an 8-gigabit (GB) hard drive to a 10 GB device. It
may be used to save games, download add-ons and new games, and support other
functions.
The company has also promised to use an encoder chip made by Conexant
Systems to hook up the Xbox to digital and traditional analog TV sets.
*Clint Boulton is Assistant Editor, InternetNews.com, a property of Internet.com.
