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Xbox 360 Winning the Battle for the Television, Research Reveals

The popular media apps are helping Microsoft t edge ahead in the battle for television.

It’s no surprise, but Microsoft’s strategy to own the living room is working according to the latest research

The battle for television is important because it’s the most used form of media available, and generates an annual revenue between $140 and $160 billion just in the U.S. That’s pretty incredible, and getting Kinect and the Xbox 360 on top of TV undoubtedly attractive to Microsoft.

It’s also an advantage over Sony’s PlayStation Move and the Nintendo Wii, which don’t offer the same depth of media content that the Kinect does. The difference is that the Wii has an install base, so are families really going to choose another device to put around the TV?

The analyst, James McQuivey, of Forrester Research, said Microsoft owns nothing right now. Apple owns consumer devices, Google owns search, Amazon owns online shopping and Facebook owns social. No company owns gaming, and I don’t think they ever will, so betting on the living room is perhaps something Sony and Nintendo aren’t thinking about outside of gaming.

Pushing aside competition

McQuivey said that Microsoft’s console is the most-watched Internet-connect system in the U.S., and is approaching that status in the rest of the world. 70 million Xbox 360s have been sold, and around half are connected to the Internet, so Microsoft has the install base to rapidly introduce new media services on the console. We’ve talked plenty of times about the Kinect-centric conference at E3 2012, and it’s looking more likely by the day to be the focus.

18.4 million people are watching the TV through a console, and the majority with an Xbox 360. Competition in Internet-connected set-top boxes are being blown away due to a lack of connectivity. The advantage Microsoft and, to a lesser extent, Sony have over Nintendo is external parties providing services. It’s not enough for the Wii to offer the BBC iPlayer; that’s hardly a niche service, and the Xbox 360 and PS3 higher resolution video and better audio.

Google has tried to break into the television market with Google TV, but failed to do as criticisms against the servers were poor performance and even the need for built-in browser while watching television.

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Published: Friday, May 25th, 2012 Last Modified: May 25, 2012

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