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Microsoft to Enter Handheld Market?

Posted by Zonk on Thu Jan 26, 2006 12:54 PM
from the banner-day-for-portable-gamers dept.
eldavojohn wrote to mention that, via Joystiq, he read an article over at BusinessWeek that indicates Microsoft may be working on a portable media device. The article states that, if they are, they're not just going after the iPod. The plan would include a way to leverage a powerful part of the Microsoft empire: games. From the article: "Microsoft would probably use the Xbox brand to market the gadget. 'I think the brand is an opportunity,' Moore says. True, perhaps, but also risky. If the new device comes with the Xbox brand, most consumers will view it as a game player, like Sony's PlayStation Portable. That might limit its appeal, since the portable gaming market is much smaller than the one for digital media." A funny comment, considering the success of the DS.
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  • A Third Portable? (Score:5, Informative)

    by Excors (807434) on Thursday January 26 2006, @12:56PM (#14568957)
    This subject was on Gamasutra a short while ago: A Third Portable? [gamasutra.com]

    Last week Gamasutra asked our professional audience, "What hardware capabilities and software would be needed for a third company to create a competitive rival to the Nintendo DS and Sony PSP, and which companies might be capable of doing so? Should they try?"

    [...] Of the cited companies who might possibly compete in this area, Apple and Microsoft were by far the most mentioned, with many readers citing Xbox Live and iTunes as superior distribution mediums.

    • For me, the main point of this should be to interface with Windows Media Center. I still have to go through a two or three step process to get recorded TV onto my iPod. I guess I don't see much point to such a device, but maybe someone would.
  • by Musteval (817324) on Thursday January 26 2006, @12:57PM (#14568969)
    XBox Portable. Only two cubic feet. Weighs less than twenty pounds. A whopping megabyte of RAM.
    • Damn. You beat me to it. I was going to joke that it will weigh in at 10 pounds (it's an uber-convenient luggable!), take full size DVDs, have a 17" screen, and will be marketed by Microsoft as the next step in "Portable" (*cough*) entertainment. Millions of fan-boys will line up outside Best Buy for days for a fleeting chance to grab one. Instead, they'll be laughed at by the counter-person because there weren't enough units in stock to supply more than the first three people in line. Yet Microsoft will co
    • by Anonymous Coward
      You've got it all wrong, the portable will be regular size, it's just going to take three lantern batteries.
    • >A whopping megabyte of RAM.

      You mean 640kb.... after all that is enough.
  • Go for it (Score:5, Funny)

    by minginqunt (225413) on Thursday January 26 2006, @12:58PM (#14568990) Homepage Journal
    I mean, it worked out so well for Sony. They'd be mad not to go for it.

    1. Release desirable, powerful handheld games console.
    2. Subsidize it up the bottom.
    3. Fail to release any games other than pointless ports of console games I already own.
    4. ???
    5. FAIL TO PROFIT!!!

    By the way, the '???' there was caused by my playing a spot of Mario Kart DS. I really should focus more when bleating at Slashdot.
    • Re:Go for it (Score:5, Insightful)

      by clontzman (325677) on Thursday January 26 2006, @01:16PM (#14569235) Homepage
      Fail to release any games other than pointless ports of console games I already own.
      ...

      By the way, the '???' there was caused by my playing a spot of Mario Kart DS


      In other words, the flagship game for the DS is a port of a console game you probably own on four other platforms already? ;-)
        • Except for the fact that Mario Kart DS isn't a port.

          Neither is GTA, neither is SOCOM, neither are any of the PSP games the OP had broadly suggested were "pointless ports."

          But that was a good try. Go reward yourself with some UMD movies.

          I was making a joke, hence the wink. I do think I'll play a little MLB 06 though...
  • by szembek (948327) on Thursday January 26 2006, @12:59PM (#14568994) Homepage
    At the same time the mp3 player market and video game market are completely different. While somebody who buys a portable game system might use built in mp3 player functionality, somebody looking for an mp3 player would not be interested in the overhead of a gaming system.
  • by vjmurphy (190266) on Thursday January 26 2006, @12:59PM (#14569003) Homepage
    Not only will it be able to play games, music and movies, but like its larger sibling, it will also be a portable heater.
  • by th1ckasabr1ck (752151) on Thursday January 26 2006, @01:00PM (#14569016)
    I'm pretty sure it's just going to be a laptop.
  • by binaryDigit (557647) on Thursday January 26 2006, @01:04PM (#14569080)
    It would appear that Steve's Reality Distortion field is effective even against the evil empire! [slashdot.org].
  • by truthsearch (249536) on Thursday January 26 2006, @01:05PM (#14569087) Homepage Journal
    When their big push was portable music players a large percentage of their own employees used iPods. Even an executive said the iPod was better then what their hardware partners offered. If they can't get their own employees to use their portable products why would anyone else? Let's see if they repeat their last failure.
      • I bought an archos player for $250 that plays xvid movies, mp3s, games, displays photos, can link up to other USB devices, records wav files from line in or built in microphone and has RCA out capability (comes complete with cables). The ipod has hardly any of these features and retails for almost double the price. People buy ipods cuz they are hipsters.

        And I bet that archos is really easy to use, right? And it ties in tightly with a really slick music, photo and video jukebox/store? And it automatically
        • Mod this guy up, grandparent simply Does Not Get It, and that mentality is why Apple's competition consistently fail to make a dent in the iPod's market share. I'm as far from a hipster as you can get (dumpy nerd, of course) but no way would I trade my iPod for some Rube Goldberg wonder toy like this archos player mentioned. The iPod does its job very well - plays music - it is reliable and elegant. People are tired of feature creep and the iPod's sales numbers show it.
  • This could work (Score:3, Insightful)

    by the computer guy nex (916959) on Thursday January 26 2006, @01:07PM (#14569115)
    What if Microsoft made a handheld gaming machine that only played games from Xbox Live Marketplace? What if they removed in-store purchasing of games alltogether?

    They would use the same business model for the 360 (buy a card at Best Buy, enter the code and download games). They could offer demos of each (same as the 360) and have all of the same competitive high score/leaderboard functions.

    The only way Microsoft would successfully enter the handheld market would be NOT to clone the PSP (which is a POS anyway).
    • You automatically assume that everyone in America (or the world) who would purchase one of these has a high-speed internet connection. In the real world, that doesn't happen.

      Plus, this would eat into the profit margins of the big retail stores. They will never allow that to happen.
  • Do Less (Score:4, Insightful)

    by CastrTroy (595695) on Thursday January 26 2006, @01:13PM (#14569208) Homepage
    I think that microsoft should try to narrow what it does instead of trying to do everything that it can. By narrowing it's views, the products it produces will be better.
  • by Churla (936633) on Thursday January 26 2006, @01:13PM (#14569218)
    Leveraging Xbox live as a networking system to game against others, put in all the PsP goodies like local wireless access.
    Slap a derivative of Windows Mobile on it for the OS so you also have a PDA capable device. And make it look and feel like other OS products people know (windows and media center)
    Give it a touchscreen to nudge in on the PDA market futher.
    Enough storage capacity out of the box to be a small MP3 jukebox of viable portable drive.

    Not to mention the ways to integrate it and tie it in as the device which moves between your media center, xbox, and windows machine.... Lots of possibilities to leverage work they've done in other areas.

  • Possible designs (Score:5, Interesting)

    by Eightyford (893696) on Thursday January 26 2006, @01:18PM (#14569267) Homepage
    Here are a few possible designs:

    xbox [yafro.com]
    xbox [pipex.com]
    joke [estarland.com]
    xbox [aeropause.com]

    And, a portable gamecube:
    gamecube [btconnect.com]
  • I can't see them pissing off a whole bunch of media player mfgs who already have product on the market by going head to head with them. I can see them doing a reference design like they did with a cell phone.
  • November 2nd, 2006
    Microsoft Unveils New Portable Gaming Station
    via Reuters

    In the wake of the success of both Sony's PS3 and Nintendo's Revolution and dwindling XBox 360 numbers, Microsoft has stepped up to the plate to challenge both companies in another gaming market: handhelds.

    In an MTV2 event held yesterday, Micrsoft revealed their "XBox Z", the tentatively named portable gaming station. "We aim to do it all," a spokesman commented. "The XBox Z, known internally as the ZBox, will be a one-size-fits all handheld device, capable of playing anything, from video to music to games."

    The unit, which is a bit smaller than a regular computer keyboard, weighs in at about two pounds. Controls are made up of four analog control sticks and six buttons, as well as three buttons on each shoulder. When asked about how gamers are supposed to use four analog sticks with only two thumbs, the spokesman replied "They'll think of something."

    A 5" LCD screen sits in the middle and slightly up, amidst the controls. The unit takes regular sized CDs and will also support the new HD-DVD format, playing anything from XBox games to CDs to DVDs. Mentioned briefly was an attachment to play turntable-style records, to pull in the music enthusiast crowd.

    Initial accessories were also announced at the unveiling. A small packpack, used to hold the system and its three required power sources, will be offered in various colors, as well as a clear mesh form. A utility-like belt will be used to hold various media to play in the device.

    When asked about battery life and size, the Microsoft spokesman replied "I'll admit, right now it's a bit of a drainer, with a large size. We're working on the battery life, and expect to have it last two hours on 16 AA batteries. As for the large size, we're looking into shrinking it, but complete hard drives are hard to replace. Besides, gamers will be able to show their handheld with pride, belittling the other so called 'gaming handhelds'."

    No release date was announced, though Microsoft plans to use "Bringing gaming to a new dimension" as their slogan.

    More information is expected by the end of the month, as long as the Korean-Canadian war does not interfere with ongoing plans.
  • Risky at best (Score:3, Insightful)

    This same question came up in a forum I frequent, and just like I said there, I'd wonder if Microsoft really wants to fight a two front war in the console and handheld markets. I think they should focus on achieving profits with the XBox 360 before they create another potential money sink.

    Of course, they could just say "Look how much of a success Sony has had in just over a year of entering the market!" Well, depending on whose numbers you trust, Sony's PSP could be a good example of a true challenger to the king of the handheld world. By some accounts Sony owns roughly 25% of the market. I think that 25% is only compared to the market it shares with the Nintendo DS, because I don't think the PSP owns 25% of the global handheld market when you consider all the people who still have the older Gameboy Advances, SPs, etc., which numbers in the tens of millions.

    Also, there is still the Japanese market. As the last two Microsoft console launches there have shown, reception by the Japanese was lackluster at best. I think for a true challenger to Sony and Nintendo, a Microsoft handheld would really have to succeed in Japan. Sure, many people will say "But Europe and the Americas are Microsoft's main market," but I think this is a limited view. Microsoft does see Japan as a market it must penetrate successfully, which is why they began courting more Japanese companies to create games that cater more to the Japanese people.

    Also, Japan is a significant market for games. Over there, the Nintendo DS sold 4 million units in 2005, twice that of the PSP for the same year. If you look at the sales charts for the past several months, every week was basically 6 - 7 DS games in the top 10 sales chart. On the other hand, it was incredibly rare to see a PSP game crack the top 10 of the chart.

    And that is also something that Microsoft should learn from. The PSP sells well in the States and Europe probably because it is seen as cooler, more stylish, and it has more capabilities than the admittedly plain-jane DS. However, in my very humble opinion, its game selection is more limited than the DS's. Microsoft could really make an impact if they deliver with a steady stream of good, quality games and not rely on whatever other features their handheld would have (i.e. Sony's UMDs being more popular than the actual games).

    Microsoft should also learn that having the most powerful parts does not make a system inherently better than another. At its core, the PSP is more powerful than the DS (dual MIPS 300 MHz processors (locked at 200 Mhz max), more powerful graphics engine), but the DS, at least in Japan, has sold more. Why? Even with a relatively weaker system, the games being developed for it are fun and appealing to more than just the 18-35 demographic. That's why games like the Brain Training games have been so successful and continue to stay on the charts.

    Microsoft can make this work, but they might have to shift some of their views.