XBOX Live Video Marketplace Outperforming Competition

[Chris Gohlke]

http://www.variety.com/article/VR1117956232.html?categoryid=1009&cs=1

"In a topsy-turvy year for the digital download biz, a videogame service in just a few million homes is ending 2006 with more momentum than the world's biggest e-tailer. The relative success of video downloads on Microsoft's Xbox Live and disappointment of Amazon.com's Unbox point to two factors that differentiate Xbox from Amazon and its many other competitors -- consumers who download a movie want a simple way to watch it on their TV, and those with high-def TVs want high-def content. Thanks to the Xbox 360's direct connection to a TV and the console's focus on HD content, Microsoft can deliver both. Though exact sales figures aren't available from any Web site or studio, insiders agree that it's the most, and maybe only, positive story in digital movie downloads this year."

Microsoft's performance in this area is especially impressive when you consider the size of the installed base of 360's versus PC's. The article does not mention it, but as the 360's use as a media box grows, it will necessitate a bigger hard drive since 20 GB is nowhere near enough when we start talking about HD content. Hopefully the rumored price cut for next year will be accompanied by a bigger HD option, or better yet, the option to plug in any USB external hard drive.

[Chris Gohlke]

http://www.variety.com/article/VR1117956232.html?categoryid=1009&cs=1

"In a topsy-turvy year for the digital download biz, a videogame service in just a few million homes is ending 2006 with more momentum than the world's biggest e-tailer. The relative success of video downloads on Microsoft's Xbox Live and disappointment of Amazon.com's Unbox point to two factors that differentiate Xbox from Amazon and its many other competitors -- consumers who download a movie want a simple way to watch it on their TV, and those with high-def TVs want high-def content. Thanks to the Xbox 360's direct connection to a TV and the console's focus on HD content, Microsoft can deliver both. Though exact sales figures aren't available from any Web site or studio, insiders agree that it's the most, and maybe only, positive story in digital movie downloads this year."

Microsoft's performance in this area is especially impressive when you consider the size of the installed base of 360's versus PC's. The article does not mention it, but as the 360's use as a media box grows, it will necessitate a bigger hard drive since 20 GB is nowhere near enough when we start talking about HD content. Hopefully the rumored price cut for next year will be accompanied by a bigger HD option, or better yet, the option to plug in any USB external hard drive.