The E3 Gaming conference (Electronic Entertainment Expo) in Los Angeles this week is ushering in the next generation game consoles packed with new technology, but “ubiquitous connectivity” may well be the real play as new scenarios are introduced broadening the depth and scope of the very meaning of gaming. The landscape is turning into a battleground between powerhouse Sony and newcomer Microsoft as they reveal their next generation plans to dominate the game market.

Steve Sechrist
Senior Analyst and Editor
of Projection Monthly &
Microdisplay Report

Sony for example, announced its PS3 player rife with new technology including a Blu-ray player with a whopping 50Gb capacity, a new CELL microprocessor and RSX graphics engine, on-line networking capabilities with a wireless game controller interface and a new MEMS-based six-axis sensing system that detects the position and movement of the controller by itself.

What’s most notable is the price; while single function stand-alone Blu-ray players will fetch $1000, these technology packed devices are set for $499 for the low-end 20Gb drive model and $599 for the higher priced 60Gb version. This could be considered a bargain for the Blu-ray player, but it is also $100 more expensive than the Microsoft Xbox 360, launched last November. So, your perspective on the price depends upon you point of view.

The game space is very important for Microsoft too. Bill Gates claimed his company has a game console head start and will have sold 10M units by the time the PS3 ships. That estimate may be low according to some analysts who note Microsoft could gobble up almost half of the market, with Sony dropping down to one third as the Xbox has already sold 3M units and are predicting up to 12M units by November 2006. Sony dominated the previous generation of consoles where PlayStation 2 claimed 64% of the US market share to Microsoft’s 16%.

Blu-ray and CELL technology aside, Microsoft is shifting the battlefront from speeds and feeds to ubiquitous connectivity and play-anywhere networking. The company announced plans to take gaming to the next level by creating a new online entertainment network with its flagship Xbox at the hub. Microsoft can do what no other can - leverage its dominance in the PC world and connectivity from the Internet with a "new vision" of gaming that the company claims will connect millions of Xbox 360 gamers with hundreds of millions of Microsoft Windows-based PC and mobile gamers from around the world.

Dubbed "Live Anywhere," the company claims the initiative "puts gamers at the center of a ubiquitous always-on world where their digital identities, games, friends, and digital entertainment are always accessible through the familiar Xbox Live interface, regardless of location or device." The plan also clears the way for groundbreaking cross-platform gameplay scenarios, with participants using Windows-based PCs, mobile phones and Xbox 360 consoles to play together simultaneously.

Gates’ plan is to leverage the online game communities with powerful new tools that tie back into the Xbox Live network. Currently 25M casual gamers are playing games on MSN Messenger and MSN Games-by this time next year, Microsoft expects more than 6M gamers to be connected to the Xbox Live network.

"By opening the Xbox Live entertainment network to the entire universe of Windows and mobile gamers, we’re creating unparalleled gameplay opportunities that will drive incredible growth of the online community," said Gates.

Microsoft will leverage its new Vista OS, and interface with its Windows Mobile offering as well as Java and BREW-based handsets. In a year or so, users will be able to send messages, access friend’s lists, download the best of mobile game content, and sample, purchase and play as part of the integrated gaming world at any time, from any location.

A broad vision indeed that may trump Sony as the company seeks to not only ride the next wave in digital entertainment - but drive it through these empowering cross platform scenarios. Things are really heating up and Sony now has a whole new list of connectivity issues on its plate before the November launch of PS3. -SS