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Adam Creighton, Computer and Video Gaming (Subscribe) |
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Thursday, January 26, 2006Microsoft should enter handheld gaming, what they should do, and how they should pwn itIs Microsoft going to own the handheld market?Maybe, but let's figure out if they're going to even enter it, first. The rumor's been out there before, but well-thought-out connectivity of the Xbox 360 raised the possibility again -- but not as much as a recent Business Week article, with Xbox boss Peter Moore. Though not confirming anything, Moore talked about the device needing to be more than "our version of the iPod." He also mentioned it could logically leverage the Xbox brand for gaming (in addition to audio and video) to push itself into consumers' hands. Makes sense, since the digital media market is an exponentially larger opportunity than the handheld gaming market. And, with the recent Microsoft re-org that created the "Entertainment & Devices Division" (under Xbox boss Robbie Bach, and combined the "Home and Entertainment Division" with the current "Mobile and Embedded Devices Division"), this seems to be a no-brainer. But there's some huge risk. Though last year's launch of Sony's PSP significantly eroded Nintendo's stranglehold of the industry, that vertical market is littered with the bodies of other early competitors (Atari Lynx, Sega Game Gear, NEC TurboExpress, Neo-Geo Pocket/Color, Wonderswan Color), and recent competitors (Gamepark 32, Nokia N-Gage, Tapwave Zodiac, and arguably the Gamepark Holdings GP2X and Tiger Telematics Gizmondo). In addition, marketing a handheld just as a "gaming" handheld could limit the appeal to gadget junkies. Also, Microsoft is in its second iteration of an uphill battle against Sony's PlayStation, which absolutely dominates the console market. That said, Microsoft wasn't supposed to even be a contender, and they're a solid #2 now, with Nintendo's a distant third (and likely to remain so in the next round. And now, with the launch of the Xbox 360, Microsoft has upped it's industry smack talk from "aggressively increasing market share", to "becoming #1" (though, to be honest, who trumpets 'We're #2!' as a battle cry?). What Microsoft should not do if they enter the market is make an "everything device" that sucks at one or more of those things. Look at the Treo 600, with the 650 not much better, and the 700 looking to take a step backwards in at least screen technology, the only real benefit of the 650 over the 600. Microsoft could make an amazing handheld gaming machine, with sucky (or only proprietary-supported) video handling, and it could kill the system. Or, they could make an amazing audio/video device to compete with the video iPod, but but an Xbox 360 connectivity effort similar to their first-gen Xbox/Windows MCE connectivity, and kill the device there. Do one thing well versus a bunch of things half-assed. The iPod is so successful exactly because it does very limited things extremely well. What Microsoft should do is pick discreet functions and do them incredibly well. Given the above, that may seem obvious. But what would set them apart is picking one or more small, discreet functions that neither Sony's PSP nor Nintendo's DS has -- so rule out VoIP, Web browsing, Wi-Fi, or touch screen (though except maybe for this last one, a Microsoft portable should have these features). They should think more along the lines of GPS, gyroscopic motors, and motion capture. So, going back to the list of recent failures, what should Microsoft do (besides learn from their demise)? They should buy, rebrand, and market the Gizmondo. We'll get to the technical features and needed opportunities in a second, but from a business opportunity perspective, it makes sense:
So, the acquisition pickings may be good (and I hope the Austin guys are OK), but the technical match is really good, too. I've been thinking about this match since reading a preview article about the Gizmondo in the UK's Edge Magazine last year, where they played up many of the Gizmondo's features, and made an allusion to it being a "handheld Xbox".
Share: | | | TinyUrl | Twitter SOURCES: Gamespot.com, joystiq.com, kotaku.com, Xbox.com, IGN, GameInformer, Official XBox Magazine, CNN, gamesindustry.biz, and others. 0 Comments: |
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