This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

Microsoft's Mission Implausible

Microsoft (MSFT - Get Report) aims to blow away Sony (SNE - Get Report) in the video console universe with the new Xbox 360, scheduled to land on store shelves Tuesday.

But it'll take more than the largest consumer launch in Microsoft's history -- which will include a Burning Man-style gamers' mecca in the Mojave desert -- to succeed. Despite all of the build-up, industry observers doubt that the world's largest software maker will be able to take down the second-largest electronics maker in this latest clash of the titans.

"For me, there is no doubt that Play Station 3 will be the clear winner, hands-down, even in this next generation," says James Lin, managing partner of Los Angeles-based video game consultancy Simba Group.

( TheStreet.com this week also looked at how Microsoft's rivals will weather the ballyhooed rollout; how far Microsoft will make it into consumers' living rooms ; what all the new game machines mean for investors ; and what a game is worth .)

However, that doesn't mean Microsoft won't reap rewards. Lin, a former analyst, says, "There's no question that Xbox 360 will likely do better than the Xbox 1."

A main reason is that Microsoft has had a lot more time to strategize this time around. The company has been planning Xbox 360 since the original Xbox launched in 2001. Microsoft has used that time to create a sleeker box and put more thought into hardware specs, says David Reid, director of marketing for Xbox.

"We feel like we can win this generation," he says. "We feel like we're very much on par -- and we're out there earlier."

Further adding to the Xbox 360 buzz are expectations of shortages, since Microsoft has said it won't immediately flood retailers with supply but will instead use a "rapid replenishment program" to provide steady inventory.

The strategy has prompted speculation about production constraints -- or Microsoft trying to make itself look better. "I would say either way it's brilliant marketing," quips Wedbush Morgan video game analyst Michael Pachter.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

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