Xbox 2: Microsoft Becomes Own Customer
Reports indicate that Microsoft is actively building Xbox 2 components with licensors such as ATI - improved manufacturing performance assured.
Microsoft recently let slip that its hyper-gaming-media-delivery successor to Xbox will be built with bespoke components licensed from suppliers. The strategy will see Xbox 2 hardware outperform Microsoft's current console in terms of manufacturing efficiency, with a chipset designed purely for gaming.
Microsoft will actively work with ATI and IBM to build the bespoke components for Xbox 2.
It is said that the approach will allow Microsoft to better control hacking problems as well as sell component derivatives, effectively positioning the company as a chip company for the first time and opening a new revenue model. However, its biggest customer in such a scenario will be itself - for Xbox 2.
Those appearing in the growing list of licensor partners for the hardware include ATI Technologies for graphics, IBM Corp for processing, Silicon Integrated Systems for the chip set. According to reports, Microsoft will actively work with these firms to build the bespoke components.
How this places Microsoft in terms of timing the release of Xbox 2 remains to be seen - but with Sony essentially in the same boat, creating the enigmatic 'Cell' technology with IBM and Toshiba - nobody is prepared to put big money on who will actually come to market first. '2005' is still the timeframe - but hardly worth its digits in pennies.
It is thought that next year's E3 will see Sony pushing PSP harder than anything else, with Kutaragi and friends banking on PlayStation 3 initially carrying itself in terms of publicity against clear rival Microsoft. Stay tuned for all the most exciting next-gen ramblings.
Adam Doree
Director, Kikizo.com
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