Xbox Updates, Xbox 2 Rumors

Facing renewed competition from Nintendo in the game console market, Microsoft is expanding the number of markets in which Xbox Live is available and is introducing new bundles and console designs. For the longer term, the company is counting on the next generation of the console to become profitable and is lining up suppliers and briefing some developers.

Driving Interest with Bundles, Updates

Nintendo’s GameCube, reduced to US$99 in Sept. 2003, saw 2003 sales leap 40%, according to industry tracker NPD, while Xbox console sales were slightly down. In addition, GameCube software sales grew more quickly than Xbox software sales in 2003, and none of the 10 best-selling console games in 2003 were Xbox titles, while GameCube had two, Nintendo’s portable GameBoy Advanced had two, and Sony’s PlayStation 2 (PS2) had six. These results show that Microsoft cannot concentrate solely on taking market share away from Sony, its competitor at the high end, as low-priced competition from Nintendo remains a threat.