G5 for Xbox development
Microsoft is moving on the IBM
technology
Microsoft leaks details on Xbox
Next
PLANS REFLECT
HARD-FOUGHT BATTLE WITH SONY FOR GAMERS'
DOLLARS
By
Dean
Takahashi
Mercury
News
Microsoft has quietly circulated
the specifications for its next-generation Xbox video-game console, indicating
how the company plans to carry on its war against dominant player
Sony.
The details suggest Microsoft is
far more concerned about keeping the cost of its Xbox Next console low than it
is with including dazzling technological features or driving its rivals out of
the business, according to a variety of industry
sources.
People familiar with Microsoft's
strategy say the company apparently believes it can capture a much larger share
of the market if it launches its machine before Sony fields its PlayStation 3
console in 2006.
A Microsoft spokeswoman
declined to comment on strategy
details.
The new Xbox reflects some tough
lessons learned in the current console battle, in which Sony has outsold
Microsoft 5 to 1. The Xbox has put Microsoft on the map with a generation of
gamers. But it has also been a money loser, albeit a relatively small one for a
company with $53 billion in
cash.
Microsoft launched its Xbox console
20 months after the PlayStation 2 debut. By the time Microsoft sold 1.5 million
consoles, Sony had sold more than 20 million PlayStations. To date, Microsoft
has sold 13.7 million Xboxes, while Sony has sold more than 70 million. In the
United States alone, console sales amounted to $3 billion in sales last
year.
For gamers, the new Xbox will be
impressive, giving them the ability to play fast-action, realistic 3-D games on
a high-definition TV set. Microsoft's emissaries have told industry developers
and publishers that the next Xbox will be ready to launch in fall 2005 with the
following
specifications:
• Three
IBM-designed 64-bit microprocessors. The combined power of these chips means the
Xbox Next will have more computing power than most personal computers. The chips
are used in Apple Computer's high-end G5 PowerMac machines
now.
• A graphics chip
designed by ATI Technologies with speeds much faster than its upcoming R400 chip
for the personal computer. This chip will help the next Xbox to display games
with the resolution of high-definition
TV.
• Compatibility with the
original Xbox, which is based on Intel and Nvidia chips, isn't guaranteed.
Microsoft is concerned it would cost too much money in hardware or in licensing
fees to enable the Xbox Next to play old Xbox games. This is risky in part
because Sony's strategy has been to maintain compatibility with its old
consoles.
``I can't imagine that
Microsoft would be so insanely stupid as to make it incompatible,'' said Jon
Peddie, an analyst at Jon Peddie Research in
Tiburon.
Microsoft is leaving itself
wiggle room to react to competitive moves by Sony and Nintendo. A few details
are to be decided. In contrast with the current Xbox, the next one will have no
hard disk drive -- unless Sony puts one in the PlayStation 3. Instead, the
console will rely on flash memory to store saved games and permanent data, much
like the current PlayStation 2.
The
machine also will have about 256 megabytes of dynamic random access memory. But
Microsoft will upgrade that to 512 gigabytes if Sony puts in more. The previous
Xbox had 64 megabytes. And lastly, it isn't clear if Microsoft will include the
current DVD video technology or Blu-Ray, its successor. Blu-Ray will hold much
more data, but it's unclear when it will be ready for
market.
The current Xbox has an
eight-gigabyte hard disk drive. That drive is useful for online games and
storing game art, but many developers chose not to make use of it. As a result,
Microsoft seems to have decided that saving the $50 the hard drive costs
outweighs its benefits.
In telling the
developers what will be in the box, Microsoft is helping them get started on
games that will be ready when the console launches. But it is also soliciting
feedback, and some developers are pushing Microsoft to make
changes.
``I would really like to see a
hard disk drive in the box,'' said Tim Sweeney, chief executive officer of Epic
Games in Raleigh, N.C., who has made his opinions known to Microsoft. ``For a
console to really have a useful online component, it has to have the hard drive
to store downloaded maps and other
data.''
Sweeney says it is dangerous for
Microsoft to wait until Sony reveals the details of the PlayStation 3 or to pay
too much attention to cost issues.
``Sony
isn't as motivated to launch a new console because it is No. 1,'' he said. ``If
Microsoft waits for them, it is in effect allowing Sony to design Microsoft's
box.''
Regarding cost issues, a Microsoft
spokeswoman would only say, ``Microsoft is in this for the long
term.''
Developers like Sweeney say they
are pleased it will be apparently easy to develop games for Microsoft's new box.
That was one of the main advantages that Microsoft has had over its rivals.
Current information about the PlayStation 3, sketchy as it is, indicates that it
could be extremely difficult for developers to
master.
The top executives of both
Electronic Arts and Activision said this week that they have not received formal
``software development kits'' from Microsoft yet, but they did say they have
begun creating next-generation games. Internally, Microsoft has begun developing
game prototypes, and it is using G5 systems to do
so.
The same developers who have seen the
Microsoft specifications say Sony hasn't shared as much data with them. Sony
appears to be willing to wait until 2006, in part so that it can milk the
profits from the current generation PlayStation 2. In the meantime, Sony is
launching an all-in-one PS 2/video recording box dubbed the PSX and the
PlayStation Portable.
Microsoft's
schedule may change -- it has a big meeting coming up for developers this month.
But for now it appears it will release information about the new box at both the
Game Developers Conference in San Jose in March and at the Electronic
Entertainment Expo in Los Angeles in May.
Posted: Mon - February 2, 2004 at 09:24 AM
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