Retailers can count on at least one must-have gift for the holidays with Microsoft's new Xbox 360 due out in stores by November. But how much the system will cost and how many will be available at launch remain a question.
Microsoft unveiled its new console at the Electronics Entertainment Expo in Los Angeles May 17-19. More than 70,000 people turned out for the show, a turnout that obliterated the old attendance record of 60,000 set last year.
While both Sony and Nintendo unveiled their new game consoles at the show--the Playstation 3 and Nintendo Revolution--neither company plans to have its new system in stores until 2006, giving Microsoft a jump on the competition. Sony will have Playstation 3 in stores by spring 2006 and Nintendo has not announced a time frame for the launch of Revolution.
In a post-show report, industry analyst David Cole noted that having the holiday season to itself could help Xbox 360 "gain an insurmountable lead" on the competition but also noted that Sony could "make it obsolete with a technologically superior Playstation 3."
Microsoft isn't likely to set a price on Xbox 360 until late summer or early fall, but early indications are it will be in the $300 range. Games for the new system will likely cost about / $59 each compared to the current price of $49. The new Xbox will be able to play DVDs and will be backward compatible with most current Xbox games.
Microsoft's plan to launch the system worldwide during the holiday season has raised concern about availability at retail. New consoles typically launch in Japan then roll out months later to North American and Europe. "It's hard enough when they do staggered launches so I expect there will be some supply-constraint issues during the holidays," said Cole.
By then, even major players like Wal-Mart and Target may find it hard to get an adequate supply. That's because the merger of GameStop and Electronics Boutique should be finalized by this fall, giving the chain a 25% market share and more power with manufacturers.
But, overall, the bulk of holiday sales in video games will come from the three current game platforms along with sales of portable game systems from the Sony PSP and the Nintendo DS.
Some of the hundreds of new games unveiled at the show included Ubisoft's "King Kong," which is based on the new film by Peter Jackson, Electronic Art's military action sequel "Battlefield II" and a game based on "The Godfather" that features the voice of the late Marlon Brando.
Show sponsor Entertainment Software Association also released a report that said the industry's player base is growing older. The ESA report estimates the typical avid game player isnow 30 years old and that 43% of players are between the ages of 18 and 49.
