Episode 605: Microsoft At It Again

After announcing most Zenimax games will be exclusive to PC and Xbox, now the rumors are swirling that Microsoft will buy Discord, the mammoth VOIP that is rivaling Twitch and Facebook for active users.

The news includes:

  • Report: Microsoft in talks to buy Discord
  • PS3, PSP, and PS Vita stores to reportedly shutdown this year
  • Serious Sam 2 surprises fans with substantial new update

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Right now we’re still working through what the strategy’s going to be here. But we think that there’s huge untapped potential for the DS Lite. Because when you’ve got only one in every five households in the U.S., compared to one in every two in Japan, it says there’s potential.

You’ve seen some of the work we’ve done this year with celebrities, that we’re bringing a lot of new consumers in to the DS. So I think there’s opportunity for both of them to coexist for some period of time. (kotaku)

We all though the DS was taking over the market, apparently it’s going a long way to go. Nintendo probably feels the DSi may take some of the market share for the original hand held so they’re going to keep them both in the market, initially. No doubt, the DSi will eventually out-live the DS over time, but there is no reason to take the DS out of the US market until the market dominance dies off.

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Microsoft recently announced their price cuts on the Xbox 360, effective today, but what is motivating them? Microsoft’s not going to make much additional money by passing off the savings to the customer but they will, more than likely, sell a bunch of great new Xbox 360‘s to a new crowd of gamer.

Motivation? Sony.

“I’m not at a point where I can say we’re going to beat Nintendo,” says Don Mattrick, senior vice-president of Microsoft’s Interactive Entertainment Business. Indeed, Nintendo is likely to run away with the lead in the current generation of console gaming, leaving Microsoft and Sony to battle for second place. (businessweek)

Who would have thought Sony and Microsoft would be battling out this generation for second place while Nintendo breezes through with their Wii console and a handful of games with mediocre game reviews? Don’t answer that, it’s a rhetorical question. If you saw this coming and you’re not on the marketing or project planning for one of these console makers you better prep your resume!

The battle isn’t cooling, Microsoft drops their price to compete with their big competitor Sony which also brings it closer to the price tag on the Wii getting two bird with one stone. The reason Wii is winning is clearly due to its broad demographic of grandpa and grandma non-gamers along with hardcore gamers who have to collect all the consoles and younger gamers that want to fit the trend.

Microsoft’s clearly shooting for second place by installing more units into the consumers home as possible. They’ve got a great library of first person shooter titles, a few RPG’s and RTS titles and the typical contraversial titles like GTA and Saints Row with more hot blockbusters (read: Gears of War 2) arriving soon.

I see this as a great opportunity for casual game developers to get into the Xbox Live Arcade market and start making themselves (and Microsoft) some money off the new gamers that will buy their first Xbox 360 for $199 and up. Microsoft’s getting closer to the low-budget gamer crowd with their price cuts so it would be great if they can take advantage of that market with lower cost titles as well.

If you’re a game developer looking for console stick time and you want to grab the attention of a large pool of gamers, the Xbox 360 isn’t a bad start!

While Microsoft isn’t aiming at Nintendo just yet, there is no doubt Nintendo will be in their sights if they can smoke the pants off Sony in the near future (by this holiday).