Microsoft may modify Xbox game console

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Dean Takahashi, author of the book, Opening the Xbox, ($24.95, Prima Publishing) reports in a recent edition of Red Herring, a technology magazine, that Microsoft is developing a new version of the Xbox game console. The hybrid device not only plays video games, but it will be able to record TV programs on the device's built-in hard disk.

Takahashi said the Xbox with digital video recorder will sell for about $500 and could be on store shelves in 2003. The Wall Street Journal and technology Web site ZDNet also have reported on the Xbox project, which is code-named "Freon." Microsoft hasn't commented on it officially.

Takahashi also said that Microsoft's internal estimates show the company could lose as much as $750 million on Xbox this fiscal year, which ended June 2002, and as much as $1.1 billion in the next fiscal year. It has been widely reported that Microsoft is absorbing losses on the Xbox hardware in the hopes its software sales will drive future revenue.

News source: USA TODAY

Video-savvy Xbox forecast

According to a report by British research firm Informa Media Group, the video game industry is on track for a record 2002, with global sales projected to increase 12% to $31 billion.

The spike is largely attributed to the success of the Sony PlayStation 2 (more than 30 million units have been sold worldwide) and the two new consoles: the Nintendo GameCube and the Microsoft Xbox. Recent price cuts on all three game machines also are expected to boost sales.

Console hardware and software are expected to make up for about 70% of the entire gaming market.

While consoles and related games are booming, Informa predicts computer games and handheld games, such as those for Game Boy Advance, to dip slightly by a combined 8.5% to $8.5 billion this year.

(2 replies) #1 Tager on 10 Jul 2002 - 11:43

uhh... is microsoft planning to release newer versions of the xbox every [other] year like they do their OS's?

come on... if i'm gonna buy a console, I want it to last maybe 5 years before getting a new one. i'm still playing on the snes, n64 and ps1.

#1.1 radixvir on 10 Jul 2002 - 13:02

i believe the nes is superior to the xbox in every way.

#1.2 Martog on 10 Jul 2002 - 14:52

Actually it will still be an original Xbox, like it can play the current Xbox games. I do not think it will have a new set of games that will only run on it. Oh well, it is just a Tivo and Xbox together. =P

#2 limited inc on 10 Jul 2002 - 15:08

Tager has a point on how long a console should last And not really a smart move on the part of M$ if they really wish up the revenue on the Xbox they should first look to thier game developers to create a larger selection of good games as they hurt there now. and do we really need a game console that works like a vcr? I think not IMO

(1 reply) #3 Electronic Punk on 10 Jul 2002 - 15:30

5 years? lol, thats never gonna happen again. Tech is moving too fast now

#3.1 jago6498 on 11 Jul 2002 - 07:24

Just because technology is moving fast, it doesn't mean that developers will be able to utilize the full power of the systems any faster. With all 3 machines being very powerful, developers will find new things to do with the systems. And if you think about it, the insides of each system are powerful. But by the time they are actually released, the system specs aren't as amazing as they were originally were on paper.

#4 Smifffy on 10 Jul 2002 - 15:41

Microsoft are FOOLS

#5 Smifffy on 10 Jul 2002 - 15:43

why would we want a game console with microsoft on it dont they alread monoplize the whole world in one way are another

#6 Smifffy on 10 Jul 2002 - 15:45

I mean dont they monoplize the world enough with out haveing a games console with there name. when will they stop world domination, being god...

#7 o_87 on 10 Jul 2002 - 16:16

Smiffy, You sound like s PS2 fanboy.. lol

#8 TDQuiksilver on 10 Jul 2002 - 18:06

the ones who refer to others as "fanboys" are the fanboys themselves.. all I can say about this article is big deal.. My PS2 is going to be fully online this summer and I can't wait. Keep on losin' money MS.

#9 Eldoen on 10 Jul 2002 - 18:13

Ok, So a console should last longer than a PC?? Average life span of a PC is 3 years. and you are saying a console should last 5 years. Remember at the current rate of advancement in the pc world. processing power doubles every 18 months. so in 5 years a console would be about a quarter as powerful as the top of the line PC at that time. Even less since most Consoles are already less powerful than the pc world when they are introduced for cost reasons. Not to mention graphics technology changes on a annual bases. While I don't see a console every 12 months, but one every 3 years is about right. if they introduce new Higher graphic resolutions and processing speeds. But it should be done like the Playstation has done. Older games should run on the new console (at least within reason) El

#10 s0ldats on 10 Jul 2002 - 18:22

well....consoles [i]should[/i] last ~ 5 years...examples are the playstation (original) and n64 which came out ~ '96 and died around 2000

(1 reply) #11 atomoverride on 10 Jul 2002 - 18:24

the maximum lifespan of one of my pc's is 6 months to 8 months tops. then I need to upgrade. But I have had my ps2 and dreamcast for over a year. love them both. Also I have my old atari 2600 and thats just keeps working and no worries there its probly the best console.

#11.1 Eldoen on 10 Jul 2002 - 20:48

The issue is that the PS/2 and xbox etc are closed consumer boxes. It doesn't mean that they can't be upgraded. But here is what it offers game programmers. Each and every PS/2 (or insert your favorite console box here) has the same hardware. They only have to program for one hardware group periold for the life span of the device. While on a General Purpose PC. they have to target the largest install base as the primary target, (which is about 2 years behind the latest technology) And also program for a large contention of harware configurations. Now while on the PC you can upgrade every 6 months if you wish, I was talking about the point at which Upgrading isn't really an option, it is time to replace the system. (to compare it on a console level that is) The main point I was making that a Console is loss leader put out by different manufactors to Sell software, which is licensed to run on it. Every PS/2, Xbox, Nintendo System is sold at a loss to generate Software Sales. And that is where they make the money. Over the life span of the system they get better at manufactoring and they may have the system entirely paid for in the cost of the hardware. So the reason for a 5 year life span is to balence the Loss felt in initial hardware sales. With competetion again, I imagine that the 5 year cycle will drop to a 3 year cycle, as there are already rumors of Sony working on a new PS. and Xbox having a new system(not the technology integration mentioned in this article) in the next year or so. I tell you what I would rather see, And it would save money in the long run, Is a modular system. The ability to change out modules of the componets. the Game manufactor could still limit what could be put on the system. But it would be cheaper to have a cpu/gpu module that could be swapped out every 3 years than to build an entire new system every 3 to 5 years. the DVD unit could be upgradeable etc. etc. The main disadvantage would be the same issue that occurs in PC's (well even consoles as they are first released) and that is the saturation point at which development of games is profitable. and there will be a differences in what the games would have to work with in hardware. IOW there wouldn't be that discrete drop point of what a New game supports. as a release a new console brings. El.

#12 baumsquad on 10 Jul 2002 - 18:35

As a response to those saying this is an "new version" From a gamer's standpoint, it really isn't. This is more analagous to the Playstation One than to the Playstation to PS2. Essentially this is just going to be an XBOX with one added feature. The games portion will be essentially unchanged, all they are doing is adding Tivo-like capabilities, as are found on the ultimate TV boxes Microsoft makes for a certain Satelite TV firm. Anyway, I feel this is a good move, as this would allow people who wish to own a Tivo, can get an Xbox as well. The main cost of both systems is often the Hard drive, so combining the two, and sharing the hard drive shares some of the cost. If MS can do the software on the Xbox hardware, needing only a cable converter to get the TV signals, then they could have a great upgrade, that potentially current Xbox owners could enjoy. If the price is right (I would say around $350 - $400 bucks) then it could be a pretty big hit. But this is more for the Tivo crowd than the gamers. Will be very interesting to see how this pans out, though I am more interested in the move towards the Freestyle UI for XP in order to use a PC for Home theater and Tivo somewhat natively. We'll see what happens though...

#13 Dead Messiah on 10 Jul 2002 - 19:23

Sony is releasing a TiVo-like program device for the PlayStation 2 sometime next year, after the Sony PlayStation 2 40GB hard drive is released. Just so you know a 40GB hard drive TiVo can 35 hours of TV shows, so much do you think the Xbox's 8GB hard drive will be able to hold?

Just some food for thought...

#14 Dead Messiah on 10 Jul 2002 - 19:26

[b]Originally posted by USA TODAY:[/b] [i]"Takahashi also said that Microsoft's internal estimates show the company could lose as much as $750 million on Xbox this fiscal year, which ended June 2002, and as much as $1.1 billion in the next fiscal year."[/i] That's so funny! What comes around goes around, huh Micro$haft!!!

#15 Sub on 10 Jul 2002 - 19:29

[quote]"Takahashi also said that Microsoft's internal estimates show the company could lose as much as $750 million on Xbox this fiscal year, which ended June 2002, and as much as $1.1 billion in the next fiscal year."[/quote] You really think they are losing money? HAHA Thanks for the laugh.

#16 NeoMoose on 10 Jul 2002 - 21:28

Xbox ROCKS!

#17 Mav Phoenix on 10 Jul 2002 - 22:16

O, but they are losing money. MS said themselves that they loose about 100 dollars on every console they make, and that was back when it was still $299. Now they are loosing about 200 bucks for everyone made. MS said that they make their money in the sale of games, not on the hardware (similar to every game console manufacturer). And now that people are able to pirate Xbox games, similar to the way people did it for the Dreamcast, MS is seeing even less revenue. In my opinion the Xbox will be a failed attempt at getting into the living room, but with the ability to record TV it has become something more than a console and (or PC?) appeals to a broader range of people. Then all of those people who just LOVE the Xbox will still be clutching their copies of Halo, and remembering the good old days.

#18 fizik3 on 11 Jul 2002 - 02:36

gayness...

#19 Osiris on 11 Jul 2002 - 03:35

lolyeah I think MS are getting O'S[software] mixed up with their consoles. Not everyone likes to buy new hardware every damn 6 -12 months.

#20 zi0nx5 on 11 Jul 2002 - 07:26

wow... M$ is trying to monopolize again with Freon. Just how they stuck IE/MediaPlayer into Windows now they're doing it to their own consoles. They're probably saying, "Hey why dont we stick our Ultimate TV concept into the XBOX and see what happens!!"

It'd be funny once they make the decision to make Windows XB(o

and Windows Media Player X (10) (or something) and then Internet Explorer X Edition... THEN provide MSN Xplorer for an addon for the MSN X High Speed Internet Edition (exclsuive to gamers) coupled with a "FREE" Hotmail X Edition which would then cost $20.00 annually to get more Hotmail X email space ON TOP OF the cost (whatever they might charge) for playing XBOX games online in the first place.

hehehe oh yeah... and then there's the .NET initiative

(1 reply) #21 Beta on 11 Jul 2002 - 21:03

microsoft should definatly go and produce another xbox console. xbox will dominate every house in the near future same as with their windows os. i think that xbox will be everyting from tv, vcr, windows, pc, game console. game business is dying down and it needs to progress to another level. playstation is way behind in technology development and microsoft are basicly one step ahead. do you really think that games consoles will stay just as consoles. i think not. thinks are intergrating slowely and i mean the electronicaly stuff anyway. at the end of the day you will have to admit microsoft have did it again.

#21.1 Tager on 12 Jul 2002 - 14:50

problem is, I don't want everything to be integrated into one box. if the hard drive goes, then you're SOL; no more tivo or game play. plus, I don't have the cashflow to fork out $300-500 bucks every 8 months for a new console. forget that.

#22 Yazoo on 18 Jul 2002 - 09:28

Don't worry about it this project was shelved indefnitaley, due to poor sales of the XBos. Also rumours are there maynot be another XBOX. (Disclaimer) The above may or maynot be true I am have no connection with M$.

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