MS to Invest 2 Billion Dollars into Game Machine Market

World big 3 game machine makers are entering into keen competition in game machine market, as Nintendo along with Sony and Microsoft (MS) discounted the game machines, and MS announced to launch the global online game network.

The competition of the game machine makers has reached the peak that around 450 companies from 100 hundred countries will show every kind of games at `E3 2002 Game Show` to be held in Los Angeles, America during 22nd to 24th.

MS announced on the 20th that it would offer `Xbox Live` service from this summer, in which Xbox console users can enjoy online games with each other. Yearly fee for the game service is 49 dollars. Monthly charge rate also will be fixed said Reuter.

Bloomburg News reported that Roby Batch vice president concerned with Xbox business said, “we will invest 2 billion dollars from coming 5 years for the strengthen the functions of Xbox, development of new products, and the service of Xbox Live. ” MS troubled by poor sales of game consoles launched a game network service earlier than other companies.

Japanese Nintendo following MS is likely to open the strategy of online game service with its game console `Game Cube` at E3 Show.

Experts explained that MS had a plan to develop Xbox as a home entertainment server by connecting it with computer, TV set-top box, audio, and DVD player. Previously, Sony of Japan had announced the plan to make its game machine `Playstation 2(PS2)` a center of home entertainment.

The competition of discounting ended its first round with the announcement of Nintendo on the 20th.

Who started the competition was Sony. It lead the move to discount by cutting the price of PS2 in U.S. to 199 dollars from 299 dollars on the 14th and making the price of PS2 in Japan open price from fixed price (29,800 yen).

Not to be outdone, MS lowered the price of Xbox to 199.99 dollars from 299 dollars 2 days later on the 16th, and discounted it for the foreign market by 100 dollars.

Nintendo will reduce the price of GameCube to 149 dollars from 199 dollars from 21st.

konihong@donga.com