Microsoft Unveils New Virtual-Reality Gaming Console
June 13 2016 - 4:30PM
Dow Jones News
Microsoft Corp. is developing a new videogame console for
virtual-reality and 4K resolution gaming, the company said Monday
at a media event in Los Angeles ahead of the gaming industry's
annual E3 conference. It also is planning a slimmer version of the
Xbox One.
The new console, dubbed "Project Scorpio," is due out next year
and "will be the most powerful console ever built," Phil Spencer,
head of Xbox, said on stage at the Galen Center. The beefier
machine will provide "true 4K gaming and premier VR experiences,"
he said.
The unveiling of the new console comes after Sony Corp. on
Friday said it is developing a more powerful PlayStation 4. Both
moves signal a marked change in gaming in which consoles are no
longer released once every six or seven years.
The more frequent cadence of console releases is similar to the
regular computer upgrades that PC gamers are used to for keeping up
with improvements in performance and graphics. It reflects the
increasingly competitive gaming landscape, as gamers gravitate
toward mobile devices and take up new virtual and augmented reality
technologies.
"The challenge for Microsoft and Sony is providing something
commercially meaningful without fragmenting the user base," said
c.
Investors have poured $1.7 billion in augmented reality, or AR,
and virtual reality technology over the past 12 months, according
to Digi-Capital, a mergers-and-acquisitions advisory firm. By
2020, it projects AR to generate $90 billion in revenue and VR to
reach $30 billion.
Microsoft is developing HoloLens, an AR device that works with
PCs. It is unclear which VR headsets will be compatible with
Project Scorpio, though Facebook Inc.'s Oculus Rift could be a
candidate as that device already is sold with an Xbox controller.
Sony already has unveiled its PSVR headset, which is scheduled for
release in October.
With the current generation of consoles, Microsoft trails Sony
by a significant amount. Sony in May said it has sold more than 40
million PlayStation 4 units, outpacing all of its predecessors.
Microsoft last said in fall 2014 that it had sold more than 10
million units but hasn't updated that figure since. Analysts
estimate it is now around 20 million.
Nintendo Co. in April said it has sold 12.8 million Wii U
consoles as of March 31. The company has said it is working on a
new gaming platform code-named NX due out in 2017, stopping short
of disclosing any details about the machine.
Microsoft also said Monday the slimmer Xbox One is 40% smaller
and will be released in August for $299. Called Xbox One S, it
features 4K resolution for enhanced gaming graphics as well as
streaming video and Blu-ray discs, the company said.
Write to Sarah E. Needleman at sarah.needleman@wsj.com
(END) Dow Jones Newswires
June 13, 2016 16:15 ET (20:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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