Xbox Live could miss top spot

Sony's two-month start on Microsoft in launching an online gaming system might prove crucial in maintaining its lead, writes Danny Penman.

Microsoft's long awaited Xbox Live - the online gaming service for its console - is to be launched in the US on November 15. A European launch is expected in early 2003.

The launch will be exactly one year after Xbox was unleashed on America. Xbox Live will require a £35 starter kit, which includes software, a headset that allows gamers to talk to each other, plus a 12-month subscription to the service. Six games are expected to be available on launch day.

Although Microsoft has committed $2bn (£1.3bn) to the new system and content, it will be launched two months after the online debut of Sony's Playstation. The delay could prove vital in maintaining Sony's lead in the console wars.

Sony also has another crucial advantage. Xbox Live will only allow broadband access whereas Sony's offering will also permit a dial-up connection. Only about 1% of British households have broadband, whereas about one-third have a dial-up connection to the net. Although a higher proportion of American households have broadband, Sony's use of analogue modems instantly gives it a far higher number of potential users.

For the most part, Sony will be leaving the infrastructure of PS2 Online to publishers whereas Microsoft has opted for complete control. The company believes control of the entire system from basic infrastructure to game titles will enable it to provide a more seamless and enjoyable experience for players. Sony hopes it can recruit far more developers by sharing resources and potential profits.