This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Xbox Chief Talks Up Games Mass Appeal

Microsoft (MSFT - Get Report) may be a behemoth and a monopolist, but when it comes to video games, it's just an upstart.

In the latest round of the video-game wars, the company lost billions of dollars while being crushed by industry giant Sony (SNE - Get Report).

Corporate Vice President J Allard, who heads Microsoft's video-game efforts, is promising a different result this time. Under his leadership, Microsoft has unveiled its next-generation console, the Xbox 360, which the company promises will appeal to everyone from core game geeks to nongamers. Indeed, Allard has boldly predicted that a billion people will eventually play games on the new console.

But the company again faces a challenge from Sony, which is introducing its own next-generation machine. And it still has many questions left to answer that will likely determine the fate of the 360, which in turn will affect the companies developing games for it.

At the E3 conference in Los Angeles last week, I spoke with Allard about the challenges for the 360.

Q: Why do you expect the Xbox 360 to do better in the marketplace than the Xbox did?

A couple of factors: Xbox -- not only did we enter the market, what, 19 months behind Sony -- so we got a very, very late start -- but we were a brand-new team. The day we approved this project, we had never sold anything directly to Target and Wal-Mart.

We didn't have a business relationship with Electronic Arts (ERTS). We didn't have our online service developed. We had never shipped a console game before as a company. So we were developing a lot of new competencies as a company and assembling a new team. As talented as the team was that we pulled together, we hadn't really jelled as a team yet. So we had a lot of work to do.

This time with Xbox 360, we've got the experienced team, we've shipped a lot of console games and built some incredible franchises. And we've got the relationships that we need and built out partnerships. The other material thing, obviously, is we're not going to give the 20-month head-start to our competitors.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
MSFT $43.85 0.00%
SNE $28.32 0.00%
AAPL $128.46 0.00%
FB $78.97 0.00%
GOOG $558.40 0.00%


DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs