Microsoft to launch Zune service in Europe on Xbox 360

Microsoft is expanding its Zune music and film download service to Europe in an effort to overtake Apple’s iTunes. The software, which can be downloaded for free online, will be available in France, Italy, Germany and Spain this fall and targets users of Windows computers, Xbox consoles, and smartphones with the forthcoming Windows Phone 7 operating system: “The integration between Zune, Windows Phone 7 and Xbox LIVE is an exciting expansion in our entertainment offerings. Zune enables users to access the entertainment they want, wherever they want it — and now, more people than ever will be able to enjoy the freedom and flexibility that the Zune service offers”, said Craig Eisler, Corporate VP Interactive Entertainment Business Group at Microsoft. Chris Lewis, Microsoft’s VP for Interactive Entertainment in Europe added: “The Xbox is going to be a critical element of our strategy. But we want consumers to be able to digest this on the product of their choice”.

Zune services in Europe will not be available on the media player of the same name, which Microsoft sells in the U.S. as a competitor to Apple’s iPod. Microsoft will partner with local content producers such as Vivendi SA’s StudioCanal unit and Germany’s Constantin Film AG to provide offerings targeted at individual European markets, said Chris Lewis.

Catch up TV channels to come to Playstation 3

Sony Computer Entertainment Europe (SCEE) revealed announcement for Gamescon, held in Cologne from August 18 to 22. Andrew House, President and CEO of SCEE, announced Playstation sales, with 38 million units of PS3 worldwide, including 16 million in Europe.

SCEE also announced new software and services; with a streaming music service VidZone, which delivered almost 500 million videos throughout the SCEE region; an onscreen discussion software called PlayTV; and additional Catch up TV channels. SCEE has signed agreements with channels across Europe : Animax in Germany, TV3 in Spain, ITV in UK, Yahoo!7’s Plus7 service in Australia, YLE in Finland and NOS in Netherlands.

With these announcements, the Playstation 3 wants to bo at the heart of the living room.

Record loss for Nintendo in Q2 2010

Japanese Video game giant, Nintendo, has just recorded a Q2 loss of 25.22 billion yen ($288 million) compared to a net profit of ¥42.32 billion during the same 3-month period a year earlier. Sales also dropped 25.6 percent to 188.6 billion yen.

“The foreign-currency fluctuation exposure and sluggish consumer demand in the U.S. add up to a rather bleak outlook for the company,” said Kiyoshi Ishigane, a Tokyo-based senior Strategist at Mitsubishi UFJ Asset Management Co.

Nintendo said the euro weakened to 107.81 yen in the quarter, from 124.92 yen as of March 31, while the dollar fell to 88.48 yen from 93.04 yen. A stronger Japanese currency reduces the value of Nintendo’s overseas sales.

Furthermore, Nintendo, the maker of the Wii game console and the DSi handheld game console, faces more competition than when it began sales of the Wii in 2006 and was the only major producer of motion- sensing personal-gaming machines. Sony Corp. and Microsoft Corp. plan to introduce their own motion-sensing accessories for their video-game consoles, while Apple Inc.’s iPhone and iPad devices are increasingly being used for gaming.

The sharpest decline was in demand for the Nintendo DS, of which global sales dropped by almost half, to 3.15 million units during the period.

Sales of the Wii console were up overall, but demand varied by region. Sales more than doubled in the Americas, but were down in Japan, Europe and Australaia. Globally, the strong American sales helped push total Wii sales up by a third to 3 million units.

Nintendo introduces 3DS

Nintendo introduced its new 3D capable portable device, the 3DS. The 3DS is glasses-free 3D, enabling to watch 3D without special additonnal device. The new Nintendo console has also built-in cameras which enable to snap digital photos in 3D.

The console features a 3.53 inch widescreen 3D LCD display and a 3.02 inch touch screen. In addition to offering 3D video games, Nintendo has signed agreements with major movie companies like Disney, DreamWorks and Warner Bros to offer 3D movies.

Nintendo did not reveal the price and release date but it would be before March 2011.

Microsoft launches Kinect to boost videogame sales

Microsoft officially launched its new system for the Xbox 360 dubbed Kinect. The Kinect, which was originally named Project Natal, plugs directly into the XBox 360 and contains a built in camera and audio sensors that enable users to log onto Xbox using facial and voice recognition. In addition, the motion-sensing technology tracks 48 points of movement on the human body which enables users to choose games or services by simply reaching our and pointing toward the screen selection. Video chat lets Xbox 360 homes connect and the smart camera widens when another person enters the room.

Craig Flannagan, Xbox Canada’s platform group manager commented: “We really transformed the gaming experience with Kinect… What Kinect is specifically all about is inviting new audiences, audiences that would never have considered a gaming platform before; maybe because it was a little bit intimidating for them or they didn’t want to practice to get good at games”.

PS3 becomes the first game console to offer VoD from premium cable network HBO

Sony has become the first gaming system to offer original on demand programming from premium cable network HBO on its PS3 starting May 25^th. The new deal enables PS3 console owners to pay to download episodes from 11 HBO series as soon as they become available for sale in the DVD format, roughly 11 months after premiering on the network. Sony plans to add new HBO material every Tuesday to expand the offering. Henry McGee, HBO Home Entertainment President, said: “We can use this platform to reinforce the premium positioning for HBO”.

Peter Dille, SVP of marketing and the PlayStation Network for Sony Computer Entertainment America added: “The HBO library of premium original content is a perfect example of how PS3 has become the most content rich entertainment platform in the living room. When you combine the iconic programming from HBO with the existing TV, film, live sports and original programming available on PlayStation Network, our customers have access to the content they want, when they want it, at home or on the go with the PSP”.

It has also been reported that Sony’s competitors like Microsoft and Nintendo have  agreed a series of similar distribution deals with leading media providers, major films studios, Netflix and major League Baseball.

The new deals could position videogame consoles as a new threat to cable and satellite companies.

Micrososft to restructure Entertainment and Devices division

In its attempt to catch up with the lead taken by Apple Inc. and Google Inc. in the market for consumer devices, Microsoft Corp. plans to restructure the management of its division focused on mobile phones,  videogames, and other devices.

In a news report about the company, the Wall Street Journal mentioned “major organizational changes”, among which there is the departure of J Allard, the chief experience officer and chief technology officer of the division and one of the driving forces behind Xbox, Xbox Live and the recently aborted tablet PC project.

The Entertainment and Devices unit generated $1.67 billion revenue, or 11% of the company’s sales, and accounted for 3% of operating profit in the first quarter of the year.

Sony: mixed results for the Games Division

Sony has just released its quarterly result that saw an increase in net profits to 79.2bln Yen ($871mln) from 10.4bln Yen a year earlier. Sales rose 4% to 2.24 trillion Yen generated mainly from movies, personal computers and financial services. The company’s game division, however, has seen mixed results with an increase in PlayStation 3 sales set against a decline in sales of PlayStation Portable.

The PS3 worldwide sales have increased by 40% to 6.5 million units compared to 4.5 million in the same quarter last year. This increase is attributed to the introduction of the slimmer and cheaper model of the PS3 console. PlayStation2 hardware and software, on the other hand, have seen a decrease in sales with 2.1 million units of PS2 sold compared to 2.5 million a year earlier and 4.2 million units of PSPgo sold compared to 5.1 million in the same quarter last year.

Even though the games division remained stagnant, Sony still recorded its first profitable quarter in over a year: “despite a decrease in PS2 hardware and software unit sales, as well as PSP hardware unit sales, profitability was relatively unchanged mainly due to an improvement in the cost of PS3 hardware”.

Australia: PS3 sees a strong growth in hardware unit sales

In the Australian video game market, Playstation 3 saw its y-o-y hardware unit sales for 2009 grow rapidly (+27%), according to the lastest data released by GfK. PS3 installed base reached 770,000 consoles at the end of the year, with 318,000 units sold in 2009.

The console maker’s sales growth for the year was much higher than the total industry’s growth.

When you combine all hardware, software and peripheral sales, PS3 revenues account for $394 million in total industry revenue, ie. 19%.

Roughly 30 per cent of all PS3s have been installed since Sony released its new slimmer and cheaper unit on 3 September 2009.

“2009 was really the year that PlayStation 3 hit its stride. These results clearly show a positive response from Australian consumers to the new PS3 model, available at a more affordable price, resulting in a massive uptake as the ultimate game and interactive entertainment system for the home,” said Michael Ephraim, managing director SCE Australia and New Zealand.

“2009 was also the year when more families began to enjoy the value entertainment offering of PS3, where gaming is just the start of the PlayStation experience. From the successful launch of PlayTV and catch up TV services, to driving the continued growth of the Blu-ray format, consumers were drawn to PS3 for a whole variety of reasons this year and we expect this to continue in 2010 as we diversify and evolve as the entertainment hub of the living room.”

Portuguese IPTV on Xbox360

Vodafone offers its IPTV service Casa TV on the Xbox360 in partnership with Microsoft. The offer does not involve any additional cost on top of the Vodafone IPTV service, customers also need to install the Casa TV software, priced at €9.90.

Casa TV offers over 100 television channels including premium channels and many services like VoD, PVR service or Catch Up TV.

Antonio Margato said “The launch of this service – a world first – offers our customers a unique television viewing experience which further enriches our television service. With the expansion of Vodafone Casa TV to the Xbox 360, Vodafone is taking another important step towards the convergence of a growing number of devices and is reinforcing its leadership role in the development of its service.“