Reports are out today that Microsoft is working on a handheld device that it expects to challenge both the iPod and the PSP. To achieve this, it will need to offer superior audio abilities, gameplay and video. The expectation is that the device will launch in one to two years.
The project is being spearheaded by a group of veteran employees that worked on the Xbox as well. And while the Xbox has had decent success, they would seem to have a more difficult challenge in the portable market. What is it they are going to offer, and how is it going to differentiate itself in a positive way to drive consumer acceptance and thus market share?
All I can imagine they are doing is to enter a market that they see with potential with an eye towards the future. That is their plan with the Xbox franchise, and in order to gain market share in the portable market I think it will take a similar amount of patience and time in order to become a major player. Not that they can’t do it, but being a challenger to dominant brands is never an easy road to take.
Posted by Jeff