Console Battle Heats Up Between Wii and XBox: Netflix, ESPN Rumors Up the Stakes
by Natania Barron
on January 19, 2010
While games themselves certainly influence the console competition—notably with the XBox 360 making big news last week with the top-selling game of 2009 in spite of the Wii's heavy presence in the top ten—as we turn the corner into 2010, the situation is heating up in new and intriguing ways.
Both the Wii and XBox have generated a good deal of buzz so far this week, but not with game titles as you might expect (though XBox's Rock Band Network has gone into beta). It appears that both companies are making strides toward re-imagining their consoles as multi-media gadgets, pushing their usability far beyond the game realm. While initially the Wii and XBox have influenced very different demographics—the Wii for family-oriented gaming and a certainly advanced approach to gameplay, and the XBox to the more hardcore gamers—the line between the two is starting to blur.
First up, the Wii. From the outset, one of the biggest complaints about Nintendo's Wii has been that--though it can simulate a variety of sports, help trim your waistline, and even tackle classics like Mario Kart--it has no DVD playing capabilities to speak of. As a result, consumers have been forced to view the device primarily for games. And it's good at games, which is not a bad thing.
XBox, however, does not appear to be chasing the tail of any other console, although the New York Times does report they're planning to release motion-based gaming technology akin to the Wii in the near future. Instead of following trends, the XBox is making them, and taking on bigger competition than ever. According to the New York Times, Microsoft is working to make XBox Live, their online subscription service, closer to "entertainment on demand" rather than just games. Netflix has already proved a successful partnership with the console, but how about streaming TV to sweeten the deal? The buzz is that Microsoft is already in talks with the Walt Disney Company about streaming ESPN through XBox Live.
The rumors aren't surprising. The XBox has recently added Twitter and Facebook support, as well as streaming music from Last.fm. That it would stream videos and television, like any PC can with Hulu, seems like a good tactical move. It certainly shows what the console is capable of, moving far beyond a simple gaming device and to something more akin to a multimedia center.
Says Marc Whitten, general manager of XBox Live: “I don’t think there’s a real difference between a game and ‘Lost.’ Or a game and ‘American Idol.’ They’re all ways we spend our leisure time… these narrow swim lanes — games, music, movies, etc. — will dissolve.”
Both the Wii and XBox have generated a good deal of buzz so far this week, but not with game titles as you might expect (though XBox's Rock Band Network has gone into beta). It appears that both companies are making strides toward re-imagining their consoles as multi-media gadgets, pushing their usability far beyond the game realm. While initially the Wii and XBox have influenced very different demographics—the Wii for family-oriented gaming and a certainly advanced approach to gameplay, and the XBox to the more hardcore gamers—the line between the two is starting to blur.
However, in spite of its 3-year presence as a gaming console and subsequent success in sales, Nintendo announced today that it's partnering with Netflix to offer streaming video on the Wii, much the same was as the XBox has done since 2008. The service will be free for Netflix subscribers with $9 or more monthly plans, and will require a CD update. It's definitely a new direction for the company.
Speaking to the Times, Reggie Fils-Amie, president of Wii America, indicates that new ventures such as the Netflix partnership have always been a part of the long-term plan, however, and that it's "a continuation of an effort to bring more and more entertainment to consumers who interact with the Wii."
But there are a few drawbacks, and skeptics are already voicing their trepidation. The Wii doesn't support high definition, unlike both the XBox and the Playstation 3. And while Nintendo has seen impressive sales numbers, it's unclear if people will be willing to sacrifice better quality for accessibility. To get an expert opinion on the subject of adoptability, IndustryGamers.com went to Michael Pacher of Wedbush Morgan, and he is far from optimistic:In our view, only a small percentage (likely fewer than 20%) of Wii owners have connected their consoles to the Internet, which is required to activate the Netflix service. In contrast, we believe that more than 75% of Xbox 360s are connected to the Internet, and more than 80% of PS3s are connected.Pacher expects a gradual growth, but nothing astronomical. In spite of the fact that the Wii is the number one selling gaming console, with over 26 million in the U.S. according to IndustryGamers, it's likely that consumers simply won't make the jump from gaming to media center, especially with the lackluster standard definition option.
The rumors aren't surprising. The XBox has recently added Twitter and Facebook support, as well as streaming music from Last.fm. That it would stream videos and television, like any PC can with Hulu, seems like a good tactical move. It certainly shows what the console is capable of, moving far beyond a simple gaming device and to something more akin to a multimedia center.
Says Marc Whitten, general manager of XBox Live: “I don’t think there’s a real difference between a game and ‘Lost.’ Or a game and ‘American Idol.’ They’re all ways we spend our leisure time… these narrow swim lanes — games, music, movies, etc. — will dissolve.”
Either way, it looks like if the Wii is going to compete as a multimedia platform, it's got a lot of laps to make before it can catch up.
--Natania Barron
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