Microsoft's Xbox division is not taking the launch of the PlayStation 3 lying down. Last week senior Xbox executives toured Europe putting on a demonstration of Sony's new games console and home entertainment centre, running head-to-head against Microsoft's competing offering, the Xbox 360.
Launched in November 2005, the Xbox 360 has had a significant head start on the PlayStation 3, which made it into European shops only last month. Sony has, of course, been able to avail of the latest technology introduced in the intervening period.
Despite this, Microsoft's feature-by-feature comparison of the two consoles was telling. Running on similarly calibrated widescreen LCD televisions, Virtua Tennis 3 and Call of Duty 3 - titles available for both consoles - performed and looked almost identical on both machines. Any differences were subtle and would suggest that those considering paying the approximately €150 differential for the Sony console would want to be sure of getting value from its additional features, such as the Blu-ray DVD player.
Scott Henson, director of platform strategy for Xbox, also pointed out that while Sony positions the PlayStation as a home media centre, the Xbox is a home amplifier.
Microsoft has concentrated on providing links to PCs, iPods and other portable devices so that digital content can be accessed on the console, but it has scant tools for manipulating and creating content. A web browser is one surprising omission given Microsoft's dominance of the PC browser market, but Henson points out that, in tests with gamers, it's a feature that ranks low on their wish list.
"We believe the Xbox 360 will be in the living room and that the PC will be in other rooms," says Henson. "And whether we believe that or not, that's what's happening. If that's the case let's embrace it and make the most of it. The best scenario is when you have an Xbox 360 and PC and not trying to replicate each other's features for nebulous benefit."
But does the technical specification of a console really matter at all? The surprising success of Nintendo's Wii suggests that factors such as an innovative, easy-to-use controller and a wide selection of games - both classics and new releases - are more important to buyers. And Henson himself concedes that "developers are still learning how to get the most out of multi-core and multi-threaded systems" and it could be a number of years before they do.
Last week's demonstration showed that the gaming experience is closer on the two machines than their technical spec might suggest. For most game players, the availability of top game titles for the console they buy is still the crucial factor.
"This generation versus the last generation, we are in a much different situation," says Henson. "With the games portfolio we have now, the advantage is starting to shift in our direction. A lot of that has to do with the investments we have made in tools and technology to make it simple [ for developers]. It also has to do frankly with the price point of the PS3 and the belief that it's not going to have the same installed base that the PS2 had." Henson claims the number of games available for Xbox 360 will double to 300 this year, and two of its biggest-selling franchises - Halo and Grand Theft Auto - will be exclusive to Xbox.
Developers will also be swayed by the number of consoles sold, giving them a significant installed base to sell their titles to. Microsoft says it will have sold 12 million consoles worldwide by next June. Sales figures for the PlayStation 3 are not yet available.
"We are extremely happy with the initial take-up. The numbers sold to date prove this to have been the biggest ever console launch in the Irish market," says Niall O'Hanrahan, managing director of Sony Computer Entertainment Ireland.
