Microsoft might have a handheld console on the market by 2008. At least that’s what industry analysts are betting on.
A report released by The Diffusion Group says that Microsoft is ready to create its version of a handheld console to go up against the PlayStation Portable and Nintendo’s DS and GameBoy.
From Information Week:
It makes perfect sense for Microsoft to enter the portable gaming market by 2008," said Thomas Wolf, TDG analyst and co-author of the report. "There's no point in the past 15 years where the industry has sustained this type of competition we're seeing today, and Microsoft has the brand power and marketing budget to pull it off."
The logic behind the conclusion is the fact Microsoft isn’t part of the fierce handheld competition. And since leaving a door unopened doesn’t seem to be in the company’s nature, the move only makes sense.
Plus, there’s the money.
U.S. software sales for the Sony PSP are estimated at $546 million in 2006. Nintendo’s DS has sold an estimated $375 million in 2006, while the GameBoy Advance has soared in sales to $783 million, according to industry reports.
That’s just too much money for Microsoft to leave on the table, they conclude.
Still, analysts admit Microsoft hasn’t made a final decision. "Microsoft has thought about it, but the ultimate decision isn't conclusive," said Lazard Capital Markets LLC senior research analyst Colin Sebastian.
Microsoft entering the handheld market makes sense, but it’s my guess the company would (or at least should) wait until the Xbox 360 is a more stable player on the market. With bugs still needing to be worked out with this console, a rush job could lead to a disaster when pitted against the tested and true Sony and Nintendo products. But, if a decent handheld were put out, more competition is always a good thing and it would give gamers another choice, also a good thing.
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