Microsoft CEO Steve Ballmer has expressed concern over Xbox’s broadband future, stating that the current climate could result in diminished demand for Microsoft’s super-console
“We’re not about text, we’re not about browsing, we’re not about email – we’re about online gaming.” Thus spake Robbie Bach, senior vice president and chief Xbox officer for Microsoft, during his declaration of intent at last month’s E3. The entire conference underlined Microsoft’s main focus – online gaming. At the very heart of this was the company’s commitment to broadband and the speed it would bring to network gaming. “It’s gonna be fast because it’s gonna be broadband,” trumpeted Bach.
However, in an interview on the Financial Times’ Website, Steve Ballmer, Microsoft CEO, has raised doubts as to the attainment of Xbox’s main aim. Speaking about Microsoft’s planned broadband revolution, Ballmer stated, “We have grown more pessimistic about this than we were a few years ago... It has proceeded more slowly than we expected."
Furthermore, in a comment that would seem to undermine Microsoft’s E3 rallying call, he stated bluntly: “Xbox allows for broadband connections. But the fundamental reason people will buy Xbox is to play games locally.”
Believing it could take over five years before broadband even reaches half of the market, Ballmer expresses his fears that this could affect Xbox sales: “The strategy for Internet gaming is dependent on broadband capability. It is possible that some won\'t buy the Xbox because they don\'t have broadband capability."
Having made such effort to express the importance of online gaming, the admission that gamers prefer to play games offline suggests that Microsoft may have made an error of judgement, and instead of effortlessly linking up to play super-fast network games, people will be sat around, scratching their heads and wondering what happened to broadband: “You won\'t be waiting for the box. You\'ll be waiting for the speed of the telecoms providers,” Ballmer added.
Microsoft has already invested $15 billion to advance the growth of broadband connections, and these comments certainly cast a shadow of failure to bring the service to the masses in the near future. According to investment firm Merrill Lynch, Microsoft will lose around £90 per Xbox unit, compared with only £14 for Nintendo’s Gamecube console. If Microsoft believes that a failure to provide a comprehensive broadband service will harm sales, the company could suffer huge losses. Indeed, Ballmer went on to state that Xbox would only become profitable “Within a few years.”
CVG expects to receive official word from Microsoft soon.
http://www.computerandvideogames.com/story.cfm?sid=2861Interesting.