LOS ANGELES, Nov. 20 (Reuters) — Microsoft Corp. hopes to gain an advantage over rivals Sony Corp. and Nintendo Co. Ltd. by being first to launch a next-generation video game console when its Xbox 360 debuts Nov. 22.
While the strategy is not fail-proof, it is essential for Microsoft, which would risk being eclipsed by market leader Sony if the Japanese rival beat it to stores with its upcoming PlayStation 3 gaming system, analysts said.
The current-generation PlayStation 2 owns the $10-billion US video game market and has outsold the Xbox by more than 2 to 1, with more than 30 million units purchased to date, according to market researchers NPD Group.
"Beating Sony to market in this generation is probably the most important thing (Microsoft) could have done to have a chance at taking the lead," said Matt Rosoff, analyst at Directions on Microsoft, an independent research firm.
Unlike hard-core players, many mainstream gamers are likely to settle for just one of the expensive new consoles, Rosoff said. Most US Xbox 360 buyers are expected to purchase a $400 package that plays current-generation games.
