http://dailynews.yahoo.com/h/nm/20011111/tc/tech_videogames_dc_1.htmlBy Ben Berkowitz
LOS ANGELES (Reuters) - In the purple corner: a short, squat plumber with suspenders and a mustache. In the black corner: the world\'s richest man, a geek with glasses. It\'s Mario versus Bill Gates (news - web sites) in a battle for a $20 billion industry.
The next seven days mark the most anticipated and hyped week in the 29-year history of the video game business: the Thursday launch of the Xbox (news - web sites), a sleek black console from software giant Microsoft Corp. (Nasdaq:MSFT - news), and next Sunday\'s debut of GameCube, a colorful next-generation platform for Mario and Nintendo (news - web sites) Co. Ltd.\'s (7974.OS) other famed characters.
Analysts expect the twin launches, combined with sales of the year-old PlayStation 2 (news - web sites) from Sony Corp (news - web sites). (6758.T), to ignite a five-year growth cycle in the video game industry, which already outranks Hollywood movies as a magnet for entertainment dollars.
The anticipation for the product launches, which come just ahead of the year-end shopping season, has turned the video game industry into ``Donkey Kong,\'\' the big gorilla to beat.
Shares in game publishers, such as Activision Inc. (Nasdaq:ATVI - news) and THQ Inc. (Nasdaq:THQI - news), which create software for all three next-generation platforms, have more than doubled in 2001 even as the Nasdaq has lost more than a quarter of its value.
By year-end, no fewer than 225 video games will be available for the next-generation platforms, which feature faster processors and richer graphics.
\'UNPRECEDENTED TIME\'
``This is an unprecedented time for the industry,\'\' Peter Moore, president of video-game publisher Sega of America, told Reuters.
The $199 GameCube, which comes in purple and black, is a compact and colorful bundle designed to appeal to children and younger gamers that make up Nintendo\'s core audience for games such as the classic Super Mario series.
Microsoft\'s $299 Xbox, by contrast, looks like a mean machine -- black and heavy, with a signature green plastic gem embedded on top and a claim to faster chips, more memory and other features designed to appeal to the 18- to 30-year-old men who favor high action and fast fun.
The new game consoles will compete with Sony\'s PlayStation 2 at a time when economic indicators all point to a recession but there is no evidence that it has touched the $20 billion video game industry. Analysts expect both units to sell out fast.
``We pre-sold our entire initial allocation for both units,\'\' said Peter Roithmayr, vice president of the video games division at game retailer Electronics Boutique (Nasdaq:ELBO - news). ``On day one we will not have any Xboxes or GameCubes available.\'\'
The holidays might be even better than the already-high expectations, since people are traveling less and spending more on stay-at-home entertainment since the Sept. 11 attacks, said Michael Wallace, an analyst at UBS Warburg who follows the industry.
Microsoft initially said it would ship around 600,000 units at launch but is now expected to have about 300,000 units on day one, and 1 million to 1.5 million by year-end. Most analysts and industry executives expect to see the low end of the range.
Nintendo will have 700,000 units at launch and 1.1 million by year-end, although some analysts say the Japanese company might ship as many as 200,000 extra in a bid to keep up with demand.
SONY READY TO RUMBLE
Sony is not doing more than usual to sell the PS2 and has held the line against calls for a discount to its $299 price tag. Microsoft and Nintendo, meanwhile, have unleashed marketing blitzes.
Even so, retailers appear to be staking more on Sony rather than risking much on the two newcomers.
A survey of 25 top specialty toy and video game retailers ranked PS2 as the likely best-selling console this holiday season, and Konami Co Ltd.\'s (9766.T) ``Metal Gear Solid 2\'\' as the likely best-selling game.
Two GameCube titles made the top-10 game list; not a single one of the 30 Xbox games expected this year made the top 10.
``Metal Gear Solid 2,\'\' the most anticipated game of the year, also launches on Friday with an estimated 2 million customer pre-orders at a retail price of $49.99.
As the rookie in the $20 billion-a year gaming arena, Microsoft has earmarked $500 million to generate buzz for the Xbox, unleashing teaser television ads and serving up promotions in some 7,000 Taco Bell restaurants.
Advertising and promotions are also key to Nintendo\'s $75 million marketing plan, which included setting up ``Cube Clubs\'\' -- a kind of a street party for gamers --in 12 major cities.
Sony\'s approach is quieter, and analysts say it can afford to be because it has already sold more than 5 million boxes.
The Japanese company is looking to broaden its audience, bringing more women to the PS2 with campaigns in magazines such as Elle, Shape and Better Homes & Gardens.
All three game machines represent a quantum leap from the platform widely recognized as the first home-game console, the Magnavox Odyssey, which was released in 1972.
The Odyssey, now a collector\'s item, lacked a central processor and relied on plastic screen overlays to generate game backgrounds.
Holy Crap!!!!!!!!!! 2 million mgs2 preorders in the U.S. only?!?!!?!?! Most unbelieveable numbers I;ve ever heard. I\'m ready for next week picking up da box along with project gothem, halo, and mgs2.
:thepimp: :fro: :fro: :fro: :fro: :fro:
