Microsoft execs comment on PlayStation Portable

[Readykilowatt]

Rob Fahey 15:23 08/11/2004

Xbox supremos unconvinced by Sony's handheld ambitions

Senior executives from Microsoft's Xbox division have commented on Sony's plans for the PlayStation Portable, with Peter Moore dismissing the console's launch as being similar to a company trying to challenge the Windows operating system.

Nintendo's dominance of the handheld market makes Sony's launch "like developing your own little operating system and saying, 'Well, I'm going to challenge Windows'," Moore told questioners at a Halo 2 Backstage Pass event in Seattle late last week, according to a report in the Seattle Post-Intelligencer.

Chief Xbox officer Robbie Bach was less dismissive of the system, but he argued that the launch was largely irrelevant to the Xbox business. "I think, in general, it's different than our [console] business," he told the audience.

"We've yet to see anybody make a meaningful connection between having a console and having a handheld," he continued, although he did acknowledge that Nintendo had attempted to do so with the GameCube and GBA link-up.

However, Bach did suggest that the launch of PSP might actually have an upside for Microsoft, by dividing Sony's attention and making them lose focus on the main home console race. "If Sony is distracted by way of a war with Nintendo, that's fine with us," he concluded.

While Nintendo has largely failed to leverage its huge Game Boy Advance installed base in the home console race, despite continuing to promote the link-up features of many key titles, Sony is thought to be hopeful that the PSP will help to drive consumers to the PlayStation brand in future.

The PlayStation 3 is expected to feature wireless LAN functionality which will allow it to communicate with nearby PSP units, and may potentially be used to transfer media such as music, movies and pictures as well as for game functions - although whether consumers will respond positive to such functionality remains to be seen.

Moore's comments, meanwhile, are liable to raise eyebrows in many quarters - not least since it comes from a company which itself challenged a hugely dominant market leader when it launched the Xbox against Sony's PlayStation 2.

http://www.gamesindustry.biz/content_page.php?aid=5363

 

[one]

Microsoft can always buy out Gizmondo and join the portable market.

 

[j^aws]

Instead of faffing around with the Gizmondo, they could make a nice tidy sum, just bite the bullet and release Halo and Halo 2 on the PSP! ...Of course they my have sneaky portable aspirations of their own...

 

[cthellis42]

Funny. I wonder if Moore realizes how many people think "Sony's dominance in the console market make Xbox's launch "like developing your own little MP3 player and saying, 'Well, I'm going to challenge the iPod.' " Of course that didn't stop them from bringing out the Xbox (which it of course shouldn't) and talking about Sony in terms of "a challenge" but one they had every confidence in eventually surmounting.

The amount of people who talk about this market in terms online having room for one player is silly... It doesn't apply to regular consoles, and it certainly doesn't apply to other portable devices in general, else they wouldn't be bothering with those Media Center portables as well. Silliness...

I'm certainly glad companies DO look into new markets and try to deliver that broaden their appeal, bring in a new set of consumers, or create stronger appeal on their own right... It would be entirely boring (not to mention horrible for the consumer) if they didn't.

 

[Qroach]

Funny. I wonder if Moore realizes how many people think "Sony's dominance in the console market make Xbox's launch "like developing your own little MP3 player and saying, 'Well, I'm going to challenge the iPod.' " Of course that didn't stop them from bringing out the Xbox (which it of course shouldn't) and talking about Sony in terms of "a challenge" but one they had every confidence in eventually surmounting.

A bit of a different story with the consoles. Sony wasn't the only competitor in the console market. Nintendo is the "only" competitor in the handheld market.

 

[jarrod]

Not much of a surprise Microsoft's looking to downplay PSP early on... they've already got DS games in the works.

 

[jvd]

it be nice if they launched a xbox portable based around a more advanced mbx .

God i can think of it now. Dreamcast games and xbox games on 1 portable system.


Thats like heaven .

 

[wco81]

Well the first batch of PSP titles look like they're not much connectivity with the PS2.

Maybe the Japanese games will feature more of this.

But the EA PSP games won't even have online support, just wireless competitors or basically LAN play.

Yes having the PS2 and PSP connect to each other through the Internet doesn't sound like connectivity but if developers don't have ideas for connectivity now, why would that change when the PS3 comes out?

I really don't see that PSP will make people any more or less likely to buy a PS3 unless games do leverage some of these connectivity features which are just abstract until they implement. So the handheld and console markets are separate except in the sense that there's a certain segment of the market which will buy one or the other, meaning handheld and consoles compete for a certain amount of the gaming dollars.

 

[Phil]

lol,

but of course they're "unconvinced". Seriously, did anyone expect Microsoft applaud their biggest competitor, one they're bowing to this generation by multiple millions short and still incuring losses?

This IMO just shows how anxious they are in the first place on what kind of an impact PSP could have on 1.) the handheld market 2.) the console market as Sony's dominance grows and the PlayStation brand increases its mindshare and name recognition to the mass market!


DISCLAIMER: The "lol" and the " " wasn't ment as a dish, rather to put forward the point on how predictable this was and that Microsoft is acting in their best interest when they make comments on what the other competitors are doing.

 

[GwymWeepa]

Funny. I wonder if Moore realizes how many people think "Sony's dominance in the console market make Xbox's launch "like developing your own little MP3 player and saying, 'Well, I'm going to challenge the iPod.' " Of course that didn't stop them from bringing out the Xbox (which it of course shouldn't) and talking about Sony in terms of "a challenge" but one they had every confidence in eventually surmounting.

A bit of a different story with the consoles. Sony wasn't the only competitor in the console market. Nintendo is the "only" competitor in the handheld market.

Nintendo used to be the only competitor in the console market, Sega changed that.

 

[Sonic]

Exactly how did SEGA change that GwymWeepa and with what console? Ther ehave always been multiple competitors in the console business since the 70's so SEGA didn't change that.

Moving onto the statements made my MS executives it would appear that MS is afraid of the PSP. They wouldn't have commented on it if they weren't scared of the business the PSP could potentially bring for Sony. It could be a source of revenue that MS has overlooked and that in itself is something that would scare MS. I doubt anyone really thinks that Sony will lose focus on the console side of things in order to make PSP successful. They can do both at the same time, and they'll also have the help from millions of consumers while htey're at it.

I'm starting to become concerned for Microsoft in the next generation. While they have a great track record so far, minus not having reporting a profit, they have come into the console race very nicely. If Nintendo manages to leverage its handheld business and gets its act together in the home console business and Sony manages to do the same but leverage the home console business in the portable market then that could be a lethal combination against Microsoft.

Nintendo's handheld following is something that I have overlooked for a long time now. They have millions of consumers in handheld market and if they were able to utilize the Revolution in a way that could bring home and portable together then the big N might just have a way of coming back big time! But that is a big IF and Sony may try to do the same.

But judging from the comments of MS execs, MS is scared.

 

[-tkf-]

Rob Fahey 15:23 08/11/2004

Xbox supremos unconvinced by Sony's handheld ambitions

Hmm maybe they do fear it will steal some XBOX2 thunder afterall..

Well, Microsoft have had the Portable XBOX for some time now so they don't have to worry.

Since this prototype:

They have improved it quite a bit:

 

[Spidermate]

Wait a second, doesn't Sony have several electronics divisions? I would assume their focus would have been lost in those areas as well.

Concerning the handheld competition to Nintendo, I believe there was once a handheld called the Atari Lynx, NEC Turbo Express,Game Gear,etc... that were also competing with the Game Boy.

 

[jarrod]

Wait a second, doesn't Sony have several electronics divisions? I would assume their focus would have been lost in those areas as well.

Heh, Sony Corp & "focus" are like oil & water. Synergy!!

concerning the handheld competition to Nintendo, i believe there was once a handheld called the Atari Lynx, NEC Turbo Express,Game Gear,etc... were also competing with the Game Boy.

Yep, and Game Gear actually did fairly well amassing a 10 million base wordwide (not counting the Majesco rerelease) and signing on a variety of respected 3rd party publishers (EA, Namco, Acclaim, Taito, Williams, Takara, THQ, US Gold, etc). Besides, handheld gaming is far more casual and varied than just dedicated handheld gaming platforms... the console market really doesn't having to face anything comparable to the massive cell/mobile games industry.

 

[Qroach]

concerning the handheld competition to Nintendo, i believe there was once a handheld called the Atari Lynx, NEC Turbo Express,Game Gear,etc... were also competing with the Game Boy.

Well yeah there has been lot's of handheld to try and compete with nintendo in the past, but that was the PAST. Currently nobody is competing with nintendo in this area, and that was the entire point being made... right?

 

[GwymWeepa]

Exactly how did SEGA change that GwymWeepa and with what console? Ther ehave always been multiple competitors in the console business since the 70's so SEGA didn't change that.

Moving onto the statements made my MS executives it would appear that MS is afraid of the PSP. They wouldn't have commented on it if they weren't scared of the business the PSP could potentially bring for Sony. It could be a source of revenue that MS has overlooked and that in itself is something that would scare MS. I doubt anyone really thinks that Sony will lose focus on the console side of things in order to make PSP successful. They can do both at the same time, and they'll also have the help from millions of consumers while htey're at it.

I'm starting to become concerned for Microsoft in the next generation. While they have a great track record so far, minus not having reporting a profit, they have come into the console race very nicely. If Nintendo manages to leverage its handheld business and gets its act together in the home console business and Sony manages to do the same but leverage the home console business in the portable market then that could be a lethal combination against Microsoft.

Nintendo's handheld following is something that I have overlooked for a long time now. They have millions of consumers in handheld market and if they were able to utilize the Revolution in a way that could bring home and portable together then the big N might just have a way of coming back big time! But that is a big IF and Sony may try to do the same.

But judging from the comments of MS execs, MS is scared.

Name me the competitors to the NES, go ahead, who even approached Nintendo's marketshare? No one. When it was time to transition to the next-generation, Sega popped in with the Genesis, their second major foray into the console realm, and they stole a good bit of marketshare from Nintendo. Its not impossible to usurp a monopoly if the company can't change with the times.

 

[GwymWeepa]

concerning the handheld competition to Nintendo, i believe there was once a handheld called the Atari Lynx, NEC Turbo Express,Game Gear,etc... were also competing with the Game Boy.

Well yeah there has been lot's of handheld to try and compete with nintendo in the past, but that was the PAST. Currently nobody is competing with nintendo in this area, and that was the entire point being made... right?

N-gage, Zodiac, who are they? Competitors. Its not like Nintendo hasn't had competition just about every year in the handheld market, its just that they were not serious competitors, Sony is a serious competitor, and they will not have any harder a time in capturing market share than Sega had when it broke up Nintendo's monopoly on the console market back in the 16 bit days.

 

[Spidermate]

concerning the handheld competition to Nintendo, i believe there was once a handheld called the Atari Lynx, NEC Turbo Express,Game Gear,etc... were also competing with the Game Boy.

Well yeah there has been lot's of handheld to try and compete with nintendo in the past, but that was the PAST. Currently nobody is competing with nintendo in this area, and that was the entire point being made... right?

What about the Swan? Isn't that a handheld,too? :?

 

[Qroach]

N-gage, Zodiac, who are they? Competitors.

Ngage = cell phone that can play games (just like all those other cell phones out there.)
Zodiac = handheld that can play ports of PC games.

I don't think you can really call those two competitors. Ngage is a phone targetted at gamers from nokia. It not strictly a game system. Zodiac is even worse IMO. As it doesn't have any developer support and can only play ported emulators/arcade games.

in reality, these are different beasts compared to the GBA. Btw, the wonder swan is officially dead now, is my understanding.

 

[jvd]

I have to agree with GwymWeepa


ONce upon a time nintendo had the lions share of the market .

Sega came and split the market.

Then sony came and dominated that market.


The moral of the story is that at any point in time a console can come out that will topple sony .

Perhaps the psp will be the very reason sony is toppled .


Perhaps the psp will topple nintendo.


Perhaps because of the psp , nintendo will loose its grip on the hand held market but in doing so sony looses its grip on the console market.


So many possibiltys . Guess we will find out soon enough