) is expected to unveil the fourth PlayStation during an event
next week, but Microsoft (NASDAQ:
) is choosing not to comment about any future hardware
developments. "All I'll say about our current and future
investment is [that it is] about doing things that are big and
premium," Yusuf Mehdi, head of Microsoft's interactive
entertainment business, told
at the D: Dive Into Media event. "Other people will try some
lower-end things; what we will do is things that are big and
When asked for any details regarding the company's next Xbox,
Mehdi said that he will "politely decline any comment."
While some might take this as Microsoft's way of bolstering an
existing item in the face of a new competitor, his words are
likely more of a tease for the third Xbox than people may
realize. The "big and beautiful" things he spoke of could be
executed on the current platform, but why would the company limit
itself to an eight-year-old machine? Microsoft will need a number
of catalysts to inspire consumers to make a purchase this
Fresh concepts are nice, but they are
to inspire massive sales. Consumers want
. A variety of "big and beautiful" content items could also be
Microsoft has sold
76 million Xbox 360 units
since the console was released in November 2005. Xbox Live, the
company's online gaming and entertainment service, has acquired
46 million subscribers -- that's 16 million more than Netflix
). The company said that U.S. Xbox Live account holders use the
device for an average of 87 hours per month.
Additionally, Microsoft has sold 24 million units of Kinect,
the company's hands-free, motion-based controller attachment.
Shares of Microsoft are up nearly four percent over the last
30 days. Sony has fared even better, rallyingg 35 percent over
the last month.
More recently, however, Sony has not been performing very
well. The company has lost more than six percent of its value
over the last five days. Sony dropped another two percent this
Investors have been much kinder to Microsoft, which has risen
more than one percent during the five-day period.
Will the tables turn after Sony's event (scheduled for the
morning of Wednesday, February 20)? Both investors and consumers
will be watching closely to find out.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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