ten41

Xbox 2 + PC = ?

Microsoft thinking about a machine that would play both console and PC games.
May 27, 2004: 10:58 AM EDT
By CNN/Money staff writer Chris Morris

NEW YORK (CNN/Money) - Two months ago, Microsoft spoke glowingly of bridging the gap between the PC and Xbox. Now the company is considering erasing that gap completely.

While Microsoft has publicly avoided discussing its next generation machine, it has been quietly conducting studies on the consumer appeal of a hybrid device that would play both PC and Xbox games.

"We would be remiss if we didn't look at consumer scenarios that take advantage of our strengths," said Peter Moore, corporate vice president of worldwide marketing and publishing for Microsoft's home and entertainment division. "[But] this is one amongst many, many other consumer scenarios that we're looking at."

The B/R/S Group, a California-based market research company that lists Microsoft and the Xbox division specifically as clients, has been gathering consumer feedback on a device it refers to as Xbox Next PC – "a videogame console system with a hard drive and a built-in fully functional PC." Mention of the device came on one of several slides shown to focus groups.

One slide describes the unit, which would require a PC monitor or high definition television, as being backward compatible with current and next-generation Xbox titles. It would also play PC games and include a fully functional version of Windows, CD burner, DVD player (with remote control), built-in access to Xbox Live and a hard drive. Control-wise, the system would come with both a keyboard and mouse and a standard Xbox controller. The price point this particular study tested was $599.

B/R/S officials declined to comment for this column, citing a strict confidentiality agreement with Microsoft.

The point of the study that included the Xbox Next PC was to determine what consumers want to see in next generation machines – and what they're willing to pay for those features. Gathering pricing sensitivity data for products is one of the most challenging market research projects for hardware developers.

It's important to note that any product looked at in these sorts of studies is conceptual and may undergo dramatic feature changes before hitting the market – if, in fact, it manages to emerge from the doors of the R&D labs.

"If you put two and two together, there's no doubt there's a great opportunity to put the two platforms together," said Moore. "Obviously with a company like Microsoft this is something we have to look into and ask about. Is it actionable today? Probably not, but it's something we need to look at."

There is, of course, a greater question of whether consumers would have any interest in a console/PC hybrid. Game machines, historically, have evolved rather slowly. Large leaps haven't been rewarded. Sony learned this lesson with the introduction of the PSX, a combination PlayStation 2/Digital Video Recorder, which sold poorly in Japan and has yet to receive a U.S. launch date.

Microsoft first showed interest in bringing the PC and Xbox closer together in March at the Game Developer's Conference, when it unveiled XNA, a software development platform meant to allow developers to skip writing boilerplate code that often bogs down the time it takes to create a game.

The same platform would open up cross-platform integration opportunities, letting PC and Xbox owners play in the same world, though each would have different experience. (PC gamers, for example, could act as virtual generals in a strategy game, coordinating troop movements, while Xbox players playing an action version of the same title would fight the battles.)

"There will come a day – in the not too distant future – that [PC] games will be interchangeable between Windows and the Xbox," Moore told me at the recently completed E3 trade show.

Should Microsoft (MSFT: Research, Estimates) move forward with a hybrid machine, it will likely come after a standalone Xbox 2 unit is released. As for when we'll see next generation Xboxes on store shelves - officially, Microsoft isn't commenting, but it has been giving publishers guidance to plan for a 2005 launch.

That's a short time frame, which might raise some questions about why the subject of Xbox 2 is being so studiously avoided. The answer's simple. Xbox has momentum right now – and its holiday line-up of games (led by titles such as "Halo 2") is strong. Talking about Xbox 2 would distract consumers, which could significantly cut into sales across the board.

"Xbox has got so much going for it as we go into the holidays that anything that disturbs the ecosystem for us is bad for business," said Moore.

http://money.cnn.com/2004/05/26/comm...ming/index.htm

el_jer

Did anyone not see this coming. They have tried to get into the hardware PC side for awhile and the XBOX has been that vehicle. Eventually, set top PC's managing entertainment will be mainstream. It will be like getting a VCR or dvd player.

Who else but MS has the guts (and cash) to do this with some concerted effort.

I am not just being an MS fan but it seems but some company has got to get the hometheater pc/entertainement thing going so it is around before I croak. I do not have time to build an HTPC but I have seen them in action and they are pretty slick. I builty a hometheater in my last house and put the new one in my new home at the end of the home remodeling priority list because I am waiting for this convergence to move in a progressibe forward direction for once and all.

For $599 I would definately indulge. I would sign up if they need a home to test this out.

wildcatlh

I'd have to see what the specs look like. But all this would really mean is that the developers wouldn't have to bother porting all their PC games to XBox.

Dan Average

There aren't anywhere near enough details for me to get excited about this. Assuming MS does in fact go ahead with it, what kind of PC are we talking about here? How much RAM would it have? Would it have more RAM than a standard Xbox 2? After all, PCs require a hell of a lot more RAM than a console. Would the PC be emulated or would it have its own processor (since PCs are x86-based and the Xbox 2 is PowerPC-based)? If it is emulated, how good will the emulation be? Will the Xbox 2 and the PC share the same video card, thus making it impossible for me to upgrade unless MS puts out there own upgrade card? Will I be able to upgrade anything at all? Can I install Linux on it? Not that I'd really want to, but I find it hard to believe MS wouldn't put at least some restrictions on the kind of software you can run on this machine. Forgive me if I sound paranoid but I do have certain issues with putting both my OS and my hardware in the hands of MS.

Anyway it's all purely hypothetical at this stage.

Josh H

I think it would be a good idea as on option, but it shouldn't be the only one, as it would keep people like me who don't play PC games from buying it (assuming that it would cost more).

Canis Firebrand

It could be a good idea if game developers didn't come out with games that have increasingly high system requirements.

Unless the xbox hybrid would be upgradable.

It would give people more games to play as some pc games are never ported over to a console, and some that are lose something in the porting.

I'll wait and see what happens, but I think I agree that we all had to see this coming.

John Spartan

Why would MS do this? How the hell would they make money? Developers could just publish a PC version and never have to pay anything to MS.

Dan Average

That's the problem I'm having. Now that consoles have analog controllers and online support the main distinction between PCs and consoles are incremental upgrades. A console stays the same for four or five years, then you buy a new one. But in that same period a PC can go through three or four generations of video cards. That's why companies like id and Crytek and Epic can keep pushing the bleeding edge of technology (have you seen those screenshots from the Unreal 3 engine? I mean, HOLY ****) -- they have a steady stream of new technology to take advantage of, they don't have to wait for the next console to come out four years down the line. Yes, it's expensive, but often you can get watered-down versions on consoles (both Doom 3 and Half-Life 2 are coming to Xbox, although at this rate HL2 could end up on Xbox 2). Sometimes you can't, but a hell of a lot more PC games get ported to consoles than the other way around and that's life. If the folks who make PC games start making them for a locked-down spec instead of utilizing the newest video cards and faster processors and ever-growing amount of RAM you can get for a PC, why bother making it a PC game at all? Why not just make it a console game?

But then people who own regular Xbox 2s and not this super-duper Xbox 2/PC combo would be shut out. I mean, look at that price tag, this thing is definitely going to be a niche item. These days a top-selling console game sells far, far more than a top-selling PC game, so even once royalties to MS are factored in they potentially stand to make a hell of a lot more releasing it for a console than for PCs.

el_jer

See I am more calculated. I think it has less to do with cross platform gaming and more to do with getting Windows into your livingroom. I read between the lines here and see "fully functional PC with CD and DVD" which starts down the path of total media control. A DVR is just a software program away at that point.

The whole PC/console gaming thing is odd to me since most PC gamers know about the maintenance it takes to play the latest games. If this machine is not fully upgradeable then that audience would be left hanging in a year. It is more for the console gamer who wants to get onto the net or check email without putting down the controller.

How can you ask how MS would make all the money when every box will have windows. How about all the royalties for windows compatible programs.

Bruce_S

I think, MS just backrupt the two upcoming companies that just introduced their consoles at E3, the Phathom and Apex Discovery, w/this latest news. I believe, it's a good idea of MS to bring out hybrid machine to compete w/Sony. The only problem I see is the price is too high at $599. Unless, they are considering to release to models of the Xbox 2 like Sony is doing w/the PS3.

For those that aren't aware of Sony two version of PS3. One is supposed to be for gaming only. The second one is considered to be like the PSX version in Japan.

John Spartan

Since when do developers pay royalties to MS for Windows-based games?

Captain Harlock

I'm not sure what to make of this news. It's still too early and there's not enough details. One thing I do know is that the $599 price point they are gunning for would be too much for me.

Also, this whole thing about being able to play PC games on a console. I think there's a line in the sand between PC gamers and console gamers. I'm not sure how many ardent PC gamers would plunk down $599 to play a PC game on a console machine when they would already have a $1,500- $2,000 computer to play them on.

Dan Average

You don't need a PC/console hybrid to do that. Even the Saturn could do that. MS could integrate a web browser and e-mail functionality into Live if they wanted to and it's a pretty good bet they will sometime within the next few years.

Even though a) there's a fair chance this system will never come out and b) if it does come out it will probably won't be until 2007 or so? And Apex isn't exactly an "upcoming company."

How is this like Sony's hybrid? Aside from the fact that Sony's hybrid is a console/DVR hybrid and this is an console/PC hybrid, this seems pretty clearly pitched at the U.S. market (the Japanese will probably have no interest in this whatsoever, seeing how miniscule the PC gaming market is over there) and Sony's hybrids are aimed primarily at the Japanese market (the PSX hasn't even been released in the U.S. or Europe yet and some are speculating that they may cancel the U.S./European release altogether). I don't see how this is going to directly compete with Sony's hybrid -- assuming Sony does in fact decide to do another hybrid, seeing how the PSX hasn't exactly enjoyed awe-inspiring success.

BizRodian

The only thing this could mean for me would be my PC games would be watered down even more in order to play on a console...

Yippie...

Michael Corvin

$599? Wow. I know they are just testing, but talk about shooting themselves in the foot. They spend this generation losing money to get the console gamers. Then they turn around and alienate them to lure the PC gamers.

Gallant Pig

Well if they are offering one stripped down version and one hybrid version for more, I think that's cool. I'd definitely consider getting the spendy one if it has enough features I want.

BizRodian

Except it wouldn't work. PC Gamers have their own machines anyways, and wouldn't need to spend 600 bucks to get another one to play X-Box games... they could... just get an X-Box.

Now if they want to make X-Box games playable also on PC, that's another story though.

gcribbs

I agree.


Also if you can upgrade the machine which would be necessary for most PC gamers then it loses the standardization it needs to be a console.

Upgrades=

I can imagine the calls by parents complaining that their $599 console no longer plays console games because compusa put in a new video card for them.

No Upgrades=

Or the calls by parents whose kid wants to play Doom 4 on their XBox PC only to find it does not have the power and finding out they can not upgrade the Xbox PC so that it can play future console games.

A major no win situation.

I do not see the point. why not just make games for the pc and have Live be PC compatible and just move away from the console model.

Ralph Wiggum

I have almost no interest in the uniquely PC genres (FPS, RTS), so I wouldn't bother with the hybird.