Betting on New Consoles 

At the same time, Sony, Microsoft and Nintendo all are gearing up for the much-awaited battle of the next-generation living room video consoles. With their current console models now several years old, all three companies are preparing to introduce more advanced versions of their popular gaming machines sometime within the next year. But, as of mid-April, it was not yet clear which manufacturer would launch when.

Industry analysts generally expect Microsoft to go first with its second-generation Xbox. Microsoft previewed its next-generation console, known alternatively as the Xbox 2, Xbox Next, Xbox 360 or Xenon, on May 12 and 13, 2005 with special half-hour broadcasts on MTV Networks channels around the world. Elijah Wood, star of the “Lord of the Rings” trilogy and a big gaming fan, will host the special.

Microsoft presented more detailed information about its new Xbox at the annual E3 games conference in mid-May. The company said the new console will feature such gaming enhancements as “high-definition graphics, extraordinary benefits of constant connectedness and exceptional personalization abilities.” The new machine is expected to retail for somewhere between $249 and $299.

But industry analysts don’t think that Microsoft, which now has sold more than 20 million of its original Xbox consoles around the world, will bring Xbox 2 to the stores until October or November. In a report to clients, Goldman Sachs predicted that Microsoft will ship around 3 million units of the new console by year-end.

Sony also took the wraps off its forthcoming PlayStation 3 box at the E3 conference as well. Company officials showed off the PowerPC-derived “cell” processor, on which the new console will be based, in February.

Unlike Microsoft, though, Sony isn’t expected to start shipping any PlayStation 3 boxes to the West until the first quarter or second quarter of 2006. The company now has sold more than 82 million of its PlayStation 2 consoles worldwide, including more than 30 million machines in the U.S.

Less is known about Nintendo’s plans for its GameCube successor, the “Revolution” console. But the company has announced that Broadcom Corp., a semiconductor maker, will supply wireless technology for the new gaming console, enabling it to offer wireless Internet connectivity and other “cutting-edge” features.

Like Sony, Nintendo isn’t expected to start shipping its new Revolution box until sometime in 2006 either. Nintendo has sold more than 10 million GameCubes around the world.