Microsoft Corp, which has built a software empire around its Windows operating system, now aims to dominate the game market by creating an online gaming network exclusive to its Xbox console.
Hirohisa Ohura, managing director of Microsoft's Japan subsidiary, said inbuilt access to the Internet should give Xbox the edge over Sony Corp's PlayStation 2, the world's leading game console, and Nintendo Inc's GameCube.
PHOTO: BLOOMBERG
"We are drawing up a scheme to convince people that Xbox is the one, not PlayStation or GameCube, when playing online games," Ohura said on Wednesday.
His remarks came in the wake of an announcement at the end of August that Microsoft would delay the Japanese launch of Xbox to Feb. 22 next year from a planned debut late this year, although it is sticking to Nov. 8 this year for the US launch.
The GameCube, meanwhile, is expected to hit shelves on Sept. 14 in Japan and Nov. 18 in the US.
As Microsoft will miss the key holiday season in Japan, the home turf of electronic game giants Sony and Nintendo, analysts have questioned Xbox's chances of winning over game players.
Ohura said the delay would have little impact on the company's business strategy, adding that Xbox should woo many players with its Ethernet port for broadband connection, Intel Corp's fast processing chip and an internal hard drive with massive storage space.
Both PlayStation 2, which also boasts a fast processor and eye-popping graphics, and GameCube need extra software and outside modems to connect to the Internet.
Nintendo has not announced any specific plans to allow GameCube users to access the Internet, and Sony has not revealed details of its broadband network strategy in Japan.
In July, Sony started selling hard drives that store game information needed for playing interactive online games.
But the company said Japan's infrastructure for broadband Internet access was not mature and it has not provided modems.
Microsoft meanwhile is already taking steps to create an online game network in Japan dedicated only to users of its game console, a square box featuring a sporty green "X" logo.
In March it formed an alliance with NTT Communications Corp, the long-distance carrier of Japan's dominant telecommunications firm, Nippon Telegraph and Telephone Corp.
Microsoft will set up servers in the NTT Communications network and offer online games using NTT's asymmetric dedicated subscriber line (ADSL) service, which transmits data over the Internet at 10 to 100 times the speed of conventional services.
Ohura said by building an exclusive network, Microsoft would provide Xbox users with a stable connection and a gaming environment free from viruses.
"I always compare this with Disneyland ... No matter when you visit or whoever guides your tour, you always have the same environment," he said.
Microsoft has said the online service will likely start six months after the February launch, but Ohura declined to give a specific date.
Xbox is set to cost US$299 in the US, but the company has not announced the price for the Japanese market, where game consoles racked up ?200 billion (US$1.66 billion) in sales last year.
Ohura said consumers will likely compare the eventual price of Xbox with the combined price of PlayStation 2, sold at ?35,000, and its separate hard disk, which is sold at around ?18,000.
"We want to set a price that reflects the performance of Xbox," he said.
Ohura also said the company would initially target hardcore game players in Japan, who are more likely to adopt new games.
"These are the influential people for the rest of the game market, so from them, we would like to expand our user base."
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