Page 252 - GLOBAL STRATEGIC MARKETING

2001 with its new XBox games console. Priced at $299, each console
contains a hard disk, DVD drive and Internet connection. Microsoft

believes that the introduction of broadband technology will change the
nature of the games market,

In particular, individuals who play games with each other over an Internet
connection will be able to talk directly with each other rather than typing

messages to each other. In order to facilitate online gaming, Microsoft has
formed an alliance with the Japanese Internet and Telecommunications
Company, NTT communications.

Microsoft aims to have 15-20 games titles available by the time Xbox is

launched; also all the major software programming houses such as Sega
and Electronic Arts have agreed to produce games for their console. The
company aims to sell 1.5 million units over the Christmas period of 2001.

Sony launched the PlayStation in 2000 and had already achieved sales of

9 million units and plans to sell another 20 million units by the end of 2001.
At the time of its launch, 33 games were available and a further 63 are

available. The console can also operate many of the games originally
designed for the first PlayStation console, so that individuals can upgrade
to the new console without having to replace all their games software.

In response to the impending increase in competition Sony has taken

several initiatives. It has formed alliances with American Online (AOL) to
enable fast Internet access through its games console. It has also linked
up with the software company RealNetworks to allow its software product

RealPlayer 8 to be installed on the PlayStation 2 to allow access to video
on the Internet. A Netscape browser for the console is also under

development along with other developments such as a hard disk drive,
LCD display, keyboard and mouse. PlayStation 2 will be able to offer
instant messaging, chat and e-mail.