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X-Box
to Deliver Ultimate Console Gaming Experience
SAN JOSE, Calif. -- March 10, 2000 --At
a Microsoft executive retreat last March, a suggestion that the company
develop its own video game console coincided with a similar idea already
being explored by Microsoft’s DirectX team. The proposal quickly made
its way up the ranks of approval and, one year later, has become reality. Today, at the annual Game Developers Conference,
Microsoft Chairman and Chief Software Architect Bill Gates revealed that
Microsoft is entering the video game scene with the introduction of a new
game console, code-named X-Box. Capitalizing on its software expertise,
experience in maintaining MSN Gaming Zone (http://www.zone.com/)
-- the most popular gaming community on the Internet -- and advances in PC
technology, X-Box is a game console that will deliver the most realistic,
intense and action-packed game experience available. "Building on our strengths as a software company,
X-Box will offer game developers a powerful platform and game enthusiasts
an incredible experience," Gates said. "We want X-Box to be the
platform of choice for the best and most creative game developers in the
world." "Our success in PC games has afforded us the
opportunity to invest more into PC game and extend our efforts into the
entertainment hub of the home -- the living room," said Robbie Bach,
vice president of Microsoft's Home & Retail division, referring to the
fact that the company's PC-based games had four titles on the top 10
bestseller list this last holiday season. Does the introduction of X-Box mean that Microsoft is
moving away from PC-based games? Not according to Don Coyner, director of
marketing in the newly formed Microsoft Games division. "The PC and X-Box are complementary devices. Each
has very distinct audiences," Coyner said. "PC games are more
cerebral, while console games are more visceral. If you look at the top 10
games lists for these two platforms, you'll see that they don't really
match up." The most popular PC games of 1999 include Age of Empires
II, Half-Life, and SimCity 3000, while the most popular console games of
1999 include Pokemon Snap, Gran Turismo Racing, and Final Fantasy VIII. Currently, there are about 29 million console players,
11 million PC game players, and 7 million who play with both, Coyner said.
There is limited customer overlap, and there are clear differences in
content. And the consumer pool is large enough to allow for multiple
companies to do well. "X-Box is expected to offer the most advanced
graphics, the most flexibility in Internet gaming, and the most realistic
play of any game console on the market," said Rick Thompson, vice
president of Microsoft's Games division. A "Future-Generation" Device Microsoft is not concerned with its status as a
"newcomer" to the games console industry. There are always
opportunities for new leaders to emerge, and the company recognizes that
the video game business is all about the games. From Atari to Nintendo to
Sega to PlayStation, it has historically been shown again and again that
gamers are loyal to the games -- not to the hardware. Microsoft is
determined that X-Box will be the next success story in this market, by
advancing video games through innovative new technologies.
As a "future-generation" device, X-Box will
deliver rich, compelling graphics, and will enable a user's playing
experience to be better and faster than any other games console available.
It will push about 300 million polygons per second -- more than three
times the graphics performance of its closest competitor, Sony PlayStation
2, which was recently released in Japan. Perhaps the most significant difference between the two
consoles is the hard drive built into X-Box, supporting 8GBs of hard disk
space; PlayStation 2 does not have a hard drive. The hard drive will give
X-Box gamers more realism, speed, expandability and storage, providing for
richer game experiences. Fans of sports games, such as basketball, will no
longer have to wait for their console to catch up to the action. "He
shoots, he scores!" will be in real time. "Subtleties like that really make games come to
life," Thompson said. A Superior Gaming Machine Though X-Box is first and foremost a superior gaming
machine, and like traditional game consoles will run through a TV set, it
will have additional capabilities for a consumer's convenience. Out of the
box, the console will come standard with four game controller ports, a DVD
player, a hard drive, and broadband Internet access (it will be able to
support a modem as an add-on), with a keyboard and mouse as optional
peripherals. As a dedicated, locked-down games system, it is not an
all-purpose machine. It is designed specifically to provide the best
console game experience available, and its add-on features support that
goal. Broadband access will enable users to play with thousands of other
gamers on the Internet, and will provide the ability to download the
latest updates to games. In a basketball video game, for example, a user
will be able to download the most current status of teams in the NBA, so
the game will accurately reflect that information. "We're taking the best of the PC and putting it
into a console," Coyner said. Although X-Box is Microsoft's initiation into the
console arena, the company is not in unfamiliar territory. Microsoft has
always recognized that games are a popular form of home entertainment. As
a category, games represent 50 percent of consumer PC software sales, and
Microsoft has recently delivered best-selling PC games to meet this
demand. Consumers are becoming more and more comfortable with technology
-- more than half of U.S. households now own a PC -- and Microsoft wants
to take those technology advances into the living room, where 86 percent
of U.S. families with teens have one or more game consoles. Microsoft is dedicating significant resources in
technology, developer support and marketing to make X-Box successful. As
an example of this commitment, Microsoft Games was recently reorganized
into a separate, dedicated division. Its staff comprises the former PC
games team, experienced game developers, software engineers and designers,
and others with experience in game consoles. "Because the platform will be familiar to
developers who have used PC architecture in the past, working with
technology such as Direct X, X-Box reduces the learning curve normally
associated with developing for a new console, and enables better
first-generation games," Coyner said. To some, the introduction of X-Box may seem like a
departure for Microsoft, whose energies have historically been devoted to
the PC. However, it is an extremely logical step to take, Coyner said.
"There has been a generation change, and Microsoft recognizes that.
People are expecting more from their devices, and that's as true for
entertainment as anything else. And we at Microsoft have the experience to
help by innovating with new technologies." Over the past few months, the technology industry has
been witness to this refocus. Microsoft recently changed its company
vision statement from "a PC in every home" to "empower[ing]
people through great software - any time, any place and on any
device," and in that vein has made strides in wireless communication
with the Pocket PC, and in interactive television with WebTV. The
introduction of X-Box is an expansion of that vision, ultimately providing
more value to the consumer. Making Better Games, Faster Consumers aren't the only ones who will benefit from
X-Box. Microsoft is encouraged by the number of high-profile retailers,
game developers and publishers that have responded positively to X-Box.
Gamers have expressed excitement about the console, and developers are
enthused as well, knowing they will be able to make better games and
faster. About 30 percent of X-Box games will be developed by Microsoft,
while the other 70 percent will be developed by third parties. "We are very impressed with the technology and are
looking forward to creating games that will leverage the power of the
system," said Gregory Fischbach, co-chairman and CEO of Acclaim
Entertainment, Inc. "We view the advent of the next generation
consoles -- such as X-Box -- as a tremendous opportunity to grow our
business." Mitch Lasky, executive vice president of Activision,
Inc., expressed similar sentiments. "We are excited about Microsoft's
entry into the console business, and X-Box is positioned at the leading
edge of next-generation technology," he said. "In particular,
X-Box provides us with a familiar tool set for development, which will
give us an advantage in delivering state-of-the-art game experiences to
consumers." While exact pricing has not yet been determined, the
X-Box console and games will be competitive with other next-generation
console systems already on the market and in development. "It makes sense for us to take the recent advances
in technology and put them to use in this new and exciting way,"
Thompson said. "Microsoft has the technical and game expertise to
unlock the future of entertainment."
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