Microsoft revealed its first new gaming console in eight years yesterday, when it took the wraps off the Xbox One.
At the launch of the Xbox 360's successor, president of interactive entertainment business at Microsoft, Don Mattrick, introduced the Xbox One as an all-in-one gaming and entertainment system. "Xbox One is designed to deliver a whole new generation of blockbuster games, television and entertainment."
Microsoft launched its gaming brand more than a decade ago, with the original Xbox console introduced to the US market in 2001. The next-generation Xbox 360 was unveiled in 2005 and competed with Sony's PlayStation 3 and Nintendo's Wii.
The Xbox One will face competition from Nintendo's new Wii U and Sony's upcoming PlayStation 4.
At the official unveiling at Microsoft's headquarters in Redmond, Washington, Mattrick said the living room has changed radically over the past eight years, with the addition of cloud-powered Internet, voice and gesture and more devices.
"To continue to lead, we must provide compelling answers to new questions. Can we improve a living room that has become too complex, too fragmented and too slow by harmonising your experiences? Team Xbox is on a new mission to design and build an all-in-one system to light up a new generation of games, television and entertainment."
Microsoft did not reveal too much detail about the device's availability and pricing, only that it would be released later this year.
New generation, new features
The Xbox One was demonstrated to respond to voice commands to switch between television, watching a movie, games and apps. It also has a Skype group video calling feature.
According to Microsoft, console gaming is still a lucrative industry, accounting for close to 42% of the world's $65 billion gaming market. With the growing demand and migration to everything mobile, gaming publishers and developers have had to integrate games with PCs and other mobile device.
Microsoft's SmartGlass app will enable gamers to connect to the Xbox One with their smartphones or tablets.
The device will also showcase a live-action video series based on the popular game "Halo", which will be produced by Steven Spielberg.
While Microsoft did not give clarity on backwards compatibility, Xbox Live VP Marc Whitten later confirmed to The Verge that the console would not be compatible with Xbox 360 games.
Gaming rebound
A report released by the International Data Corporation (IDC), in January, outlining the outlook for gaming consoles up to 2016, indicates gaming consoles are not dying a slow death in the mobile and digital revolution. The worldwide video game and entertainment console hardware and packaged software forecast 2012 to 2016 shows gaming consoles are making a comeback
Research manager of IDC's gaming service, Lewis Ward, says the console ecosystem is in a state of flux. "These platforms need to support an ever-growing array of non-gaming features and services at the same time that game distribution and monetisation is moving in a digital direction."
He adds that, at the same time, it doesn't appear that alternative platforms like set-top boxes from cable companies and Web-connected smart TVs are positioned to disrupt the trajectory of the "big three" console OEMs in 2013 or 2014. "Discs will remain the console game revenue mainstay for years to come."
The IDC does, however, take the impact of the digital revolution into account and predicts the volume of packaged game discs shipped will decline an average of roughly 3% per year through 2016, as console spending shifts into digital channels.
"2011 and 2012 were tough for many console game disc developers and publishers. With the advent of eighth-generation consoles, starting with the Wii U, historical norms strongly imply that game disc revenue will stop bleeding in 2013 and rise substantively in 2014," adds Ward.
The report also reveals that in December last year, Sony's PS3 overtook the Xbox 360 as leader in the gaming console market, shipping an estimated 77 million units.
Verdict
Taking the bad publicity around the Microsoft's Windows 8 release into account, online community manager at digital communications agency Retroviral and editor of superherostuff.co.za, Kirsty Sharman, says the Xbox One reveal did some damage control.
"I think the launch of the Xbox One has made people see the Windows 8 interface in a different light, and I think this will help people understand Microsoft's vision. Also, they had Steven Spielberg doing a demo during the #XboxReveal - if that doesn't do wonders for your image then what will?"
She adds that while Xbox has a good reputation with South African gamers, the One comes with its own set of complications. "Most of the gamers in SA that I know are brand champions for Xbox and Xbox Live. Although the reveal created loads of hype on Twitter last night, it also created some doubt among the serious gamers. The entertainment hub angle seemed to raise a few eyebrows and I'm not sure how it would work in SA."
As for the growing concern about the rush to mobile, Sharman believes consoles will hold their own. "Gaming consoles give you an experience you can't have on a smartphone. The surround sound, big screen, advanced controllers and highly detailed graphics are things that gamers want. Personally, I see mobile gaming and console gaming as two completely different things - they cater for different needs."
Tech commentator John Gruber also responded to Microsoft's unveiling of the new Xbox One on his Daring Fireball blog: "Xbox is Microsoft's foothold in the post-PC world."
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