Sony Vs. MS from AP.
 

http://www.azcentral.com/business/ar...eOnline28.html

Sony vs. Microsoft in online gaming war
Jonathan Sidener
The Arizona Republic
May 28, 2002

LOS ANGELES - Nothing comes closer to the heart of the video game industry than a good slugfest between titans. Picture a lean, mean figure in Eastern garb emblazoned with the trademark X, O, triangle and square of the Sony PlayStation 2 controller. And then imagine a hulking Western competitor wearing the green stylized X of Microsoft's Xbox.


Watch the PS2 character jump to an early start, racking up points and taunting the Xbox player, saying the game is over.

The Xbox figure remains unswayed and leaps to an online mode, daring the PS2 guy to follow.

That game scenario comes close to the real life events at last week's Electronic Entertainment Expo, the gaming industry's biggest trade show. Kaz Hirai, president of Sony Computer Entertainment America Inc., gloated over the 30 million PlayStation 2 consoles it has sold, declaring Microsoft and Nintendo video game consoles dead.

"The console war is over," Hirai boasted.

Microsoft cannot be happy with the 4 million to 5 million Xboxes sold worldwide since November, about the same number as Nintendo Gamecubes. But the Redmond, Wash., company laughs off the Sony boast.

"Is that what they said?" Xbox content Vice President Ken Lobb quipped.

Analysts and toy retailers say the Sony boast is more trash talk than substance. Like good video game warriors, both Sony and Microsoft are far too strong to be felled by a few early kicks to the head.

Part of the reason Lobb can afford to laugh off the Sony boast comes from Microsoft's announcement that it would spend $2 billion over five years in support of Xbox Live, an online, broadband subscription service set to launch in North America, Europe and Japan before the end of the year.

Sony is taking a less committed approach to online gaming. The company announced few details of its online plans. The PlayStation 2 online startup kit is scheduled to ship to retailers in August. It will include a network adapter, game demos and a coupon for the game Twisted Metal: Black Online. The kit will retail for $39.99. Sony did not say when a hard drive accessory will ship to U.S. retailers. Nor did it announce details of the subscription services.

Nintendo has previously announced a modem for its Gamecube and launched an interactive game, Phantasy Star Online. The game will operate over a Sega network. Sega is not yet talking about the subscription price or any other network details.

Microsoft said Sony and Nintendo seem to have missed the starting gun for online console gaming.

"Who's winning the online gaming war and who's not yet ready?" Lobb asked. "The next year will determine a lot of the future of online gaming."

Sony declined to be interviewed, but a Nintendo spokeswoman said her company is taking a cautious approach to online gaming.

"We know it's going to happen, but right now, there are still a lot of unknowns," Beth Llewelyn said. "We see it as more of a niche today. There's still a question of how you're going to make money from it."

Microsoft has built all Xboxes to be ready for online gaming, which is part of the reason its console is more expensive that the Gamecube and more expensive than the PlayStation 2 outside of the United States.

The Xbox comes with an Ethernet card for high-speed Internet connections and a hard drive to facilitate online gaming.

Microsoft does not have a modem for dial-up Internet users. The company is offering Xbox Live only to high-speed users because it doesn't believe the slower connection can deliver quality suitable to subscribers.

The company says 50 percent of Xbox owners already have broadband.

Officially, Microsoft says it will not be surprised to see as few as "tens of thousands of subscribers" in the first year. But at the same time, it has aggressively priced the subscription service and probably expects far more to sign on.

Microsoft will charge $49 for the first year of service, including a microphone and an introductory online game. After the first year, the service will cost $9.95 per month.

The service allows users to build a list of friends similar to instant messenger lists. When friends are online at the same time, they can invite one another to play a game.

Lobb said the system will debut with enough network capacity to handle 600,000 simultaneous users.

Microsoft hopes to have 50 games on the service by the end of next year, including LucasArts' multiplayer Star Wars Galaxies and the online version of the Xbox's top-selling game Halo.

I don't see how the article could ignore Nintendo like it did. Nintendo's got the best exclusives by far and they're going to be a force to be reckoned with for a long, long time.

After reading this so called article I'm a bit suprised that this journalist did not mention that Electronic Arts was not going to support the Xbox with any online support very odd indeed. :confused:

Perhaps because the article's title is Sony vs. Microsoft in online gaming war? :)

I saw that. Despite the title it does mention Nintendo, it just doesn't say much about them.

That's not definite yet. They are still in negotiations.

Anyway, as much as EA dislikes the idea, Sega is on board and Microsoft will of course have Fever online. I doubt they will want either of them to have an advantage.

Well that's super, but none of those exclusives are online. In fact, Nintendo doesn't have any online 1st party games and they only have 1 3rd party game in the works.

Unless Nintendo releases a plan about online play, they won't be considered a competitior to Sony or Microsoft in the online arena.

Well to be fair, Nintendo only has 1 game set up for online play so far. I also thought the funny thing about this article is that they say sony is less committed to the online gaming and then say that when you buy the adapter you get a coupon for twisted metal black online. That will probably be one of the best online games to have and you are getting a friggin coupon! How is that less committed than MS giving away a crap game nobody will play? Also, no mention of Socom here.

I agree Re-Volt is pretty crappy, but you do get it immediately. If Twisted Metal Black is in coupon form, you probably won't see it for 4 to 6 weeks. I don't see why Sony can't bundle the game with it.

Of course, Xbox owners get the communicator for free. PS2 owners will need to buy a keyboard, if they want to communicate in every game besides Socom, which is the only PS2 game to use a voice headset so far. And you will be paying extra for the headset in Socom's price.

If they make the price change official on Sony games then I think Socom will drop in price also. Probably not as low as the other games but lower still. As for the keyboard, I would welcome that as long as games can also use the headset. I would much rather talk and type while playing. Not sure when TWB-Online will come out but I will have it when it does. I'm not really sure what the significance is of getting a game right away is if you think it is pretty crappy.

I still think MS and Sony are going to be disappointed with the lack of interest over online gaming this year. I think it'll be another couple of years before online gaming really takes off. Maybe it will do well enough to convince companies to continue to pursue it, but I don't think it's going to be huge this year. Nintendo may end up the winner in the online gaming war, considering that they seem reluctant to jump into it.

That is your opinion, not a fact. I have zero interest in nearly all of Nintendo's exclusives (the exception being Resident Evil) and you don't hear me saying "Nintendo has the worst exclusives hands down"... I'd be more likely to say "Nintendo's exclusive titles don't interest me". Try to be a little more diplomatic about expressing your opinions next time maybe? :)

When you buy the Network adapter, you get a demo disc with 5 games on it, so you can start playing right away. And SOCOM is priced most everywhere I look for the standard PS2 game price of $50, so how are you paying more?

From Flay: "And you will be paying extra for the headset in Socom's price. "


Umm...josh, it seems pretty clear that Flay said the Headset was extra money, not SOCOM itself.

I was talking about 1st party games. Exclusivity deals can change, in house stuff is forever.

That's very true. The article makes it seem as if online gaming will decide the winner of this generation though and I just think that couldn't be further from the truth.

That's pretty much how I feel about this issue too.

finbogg

The headset is bundled in with SOCOM.

Then I stand corrected. Sorry

My sentiments exactly. Sure hardcore gamers are excited about online play and will pay the fees and buy the extra hardware where needed. However, I don't think the average casual gamer is going to shell out the money for Broadband (if it's even available in their area), subsciption fees, and hardware (PS2, GCN). And the fact is it's the casual gamers determine what systems win the hardware war, not the hardcore gamers. Afterall most hardcore gamers own at least 2 of the 3 systems anyway, and they are much smaller in number than the casual gamers.

The system(s) with the best games and best marketing will farewell this generation. Online play may do ok, but it's not going to sell many consoles IMO, and as a result it won't have an affect on the outcome of the console war.

$59.99 Socom bundle > $49.99 PS2 game.

http://www.gamestop.com/product.asp?product%5Fid=280266

It doesn't matter... that still doesn't make your statement a fact. I personally feel Nintendo has weak first party games... I have no interest in any of them. :)

Good for you. You must know your opnion is in the minority though.

I guess it's in the minority depending on who you ask... nobody I know gives a rat's about Nintendo games, so 100% of the people I survey agree with me. I'm sure all your friends like Nintendo games though so we obviously have different perspectives on the subject. I'm sure there's people out there who think Sony has the best exclusive games... makes sense since the PS2 is outselling both Xbox and GCn.

Hmmmnn, so you have to pay $50 for the online gaming service, PLUS another $50 for a high speed DSL internet connection.

Uuuuuhhh no thanks.

:whofart:

Most of my friends don't like Nintendo games either. I don't think even a single one of my friends liked Mario 64. Still though, Nintendo's games always sell well and are highly regarded by everyone in the industry and media.

As opposed to paying $40 for a modem PLUS another $50 for a high speed DSL internet connection.

Also, the XBox Live starter pack comes with the Headset.

Remember to add in that communication device for the PS2. Buy a keyboard for around $20. Plus if you want BB only Socom, you will be paying an extra $10 for the headset.

nm

If Microsoft is counting on online gaming to get them over the top I'm afraid they are in for a rude awakening.

I honestly don't see online gaming being a factor anytime soon.

Microsoft seems to be going down the same failed road Sega already traveled. They thought online capabilities would save them as well.

I would say MS is looking at this in the long term and thinking about such things as VOD and having a key advantage to online when the Xbox 2 rolls around.

I flat out do not believe most gamers will put their credit card numbers in and subscribe to one of those services.

Even Microsoft is trying to tone down expectations, saying subscribers in the first year may only total "tens of thousands."

They clearly think there's a long term benefit to dominating online gaming, but they don't seem to have much of a chance of actually dominating much of anything, considering the way XBox has been selling.

Sony has made a brand out of Playstation. They were the company that brought games to the mainstream, and most people don't look at the specs when they buy a console. Sony was right when they said the console war is over. It is now impossible for Nintendo or Microsoft to unseat Sony in this generation of systems, and it's unlikely they'll do it in the next.

You're exactly right Scandal. The masses have spoken, mediocrity has won yet again.

Enjoy your online gaming system after you buy a modem and a hard drive. I know I'll enjoy mine. :D

I like the idea of the Xbox Vioce Communicator. That will attract more customers than a silly little keyboard.

BTW What is Sony gonna call this keyboard?

answer: The Mis-Communication Station :D

I don't think it's anything to do with mediocrity. I think Microsoft's hardware could have made it the premier online gaming console, but they got greedy.

They blew the benefit of having built in broadband by requiring an additional purchase to get the thing online, and they drove away a big chunk of the audience by requiring a subscription. The prospect of having to enter one's credit card into the console is an amazing deterrent for a big chunk of potential market.

I know I won't pay a monthly fee to play any game online.

Can I borrow that time machine you are using to get that info? I'd really like to pick up a copy of KOTOR.

Quote:

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The prospect of having to enter one's credit card into the console is an amazing deterrent for a big chunk of potential market.

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You may like prospects, but I prefer actual facts.

You won't have to use a credit card at first. You will buy the Starter pack from a retailer for $49.99. Go to Gamestop or EB. You can preorder it now. That means you will be able to lay down the greenbacks at your local gaming store instead of the plastic if you so choose.

Anyway, after the first 365 days are up, I'm sure MS will have an alternate payment plan for people without credit cards.

Quote:

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I know I won't pay a monthly fee to play any game online.

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Well, I guess you won't be playing online too much on any console.

Let's look at a potential online Xbox gamer in late 2002/early 2003... the machine itself cost him either $200 or $300. New games have cost him $50 each. He might be one of a decent-sized minority of Xbox owners who own an HDTV and/or 5.1 home theater setup. And since he's considering online, he either has/will soon have broadband service for, what, $40 or $50 per month?

The idea that a $4 per month fee will put him off is ludicrous. And the thought that entering a credit card is a deterrent is only amazingly laughable.

What percentage of Xbox owners would you say are in this category? I'd be amazed if it's not the teeniest little fraction of a percent.

I had in mind that it is "a decent-sized minority" when compared to the adoption rate of either of those two products by the general population. I know HDTVs and home theater are starting to appeal to a wider audience now that DVD has been thoroughly accepted, but I have no idea of the actual numbers. But if I was forced to guess, I'd say perhaps 5% of early-adopted Xboxes could be hooked up to either.

Of course I could be way off, but that's pretty much irrelevant to the point of my previous post.

Visit the HTF. Adults with Xboxes have 480p and DD 5.1 going on like crazy. :)

Maybe there's some sales figures somewhere showing how many Advanced A/V Packs were sold for the Xbox. I bought one. :) Sony on the other hand came with an optical out for audio right on the box. They have yet to put it to use in a game as far as I know (I'm sure I'm wrong, and I expect a flood of people listing off games that use 5.1 surround on the PS2), but nearly all the Xbox games I have are in 5.1 surround goodness.

It's not the money, so much as the notion of having another bill to pay. I think, also, that a lot of XBox owners may be under 18, or may not have credit cards.

What's more, a very large percentage of broadband gamers are dedicated PC gamers. They're already playing online, and they're playing for free. I don't think most gamers will go for a subscription. Further, by not offering free content, Microsoft may be detering potential XBox buyers.

I think Microsoft believes they're creating the market for a future online set-top box with applications beyond gaming. They think XBox live is the replacement for cable TV. They might be right, but now is not the time, and XBox is not the product. They're targeting a market that skews too young and is averse to paying bills.

Maybe you've stumbled onto something Scandal. For some reason I have a feeling the average age of the Xbox owner is higher than the overage age of the PS2 owner. So for that reason, maybe Sony is smart in thinking online free would be better while if an Xbox owner is older and can afford a better system, then their pay system will work just as well.

If not, I'm sure MS will adjust to suit the market. No biggie, eh? ;)