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TheStreet Open House

'Halo 3' Could Be Godsend Xbox Needed

"Microsoft is pretty happy with where they are since they are getting close to their goal of breaking even on the hardware," said Rosoff. "And going forward, I don't know if Sony's hardware costs are going to come down as quickly as Microsoft."

Meanwhile, Nintendo's Wii has topped sales charts since its release but gamers are buying few games for the console. Some of the upcoming season's most awaited games including Rock Band and Call of Duty 4 will not be released for the Wii.

"The Wii does not offer the same kind of advanced technology for fast action games or graphic intensive game that the PS3 or the Xbox 360 does," said Rosoff.

Experts said that though the Wii currently enjoys higher sales, sales of the console may eventually languish as gamers opt for hardware that can actually help them play games the best.

Todd Greenwald, an analyst with Nollenberger Capital, said in a recent report that independent publishers are gravitating to the Xbox 360 and PS3. "In September, Halo 3 helped drive a significant acceleration in the Xbox 360 base, which should help publishers like EA, Activision and Take-Two this holiday season," he said. Nollenberger does not own shares or have an investment-banking relationship with Microsoft.

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