Microsoft makes a play for Sony fans

A CONSUMER feeding frenzy is expected this week as software giant Microsoft attempts to seize control of the lucrative games console market at the expense of rival PlayStation. Microsoft's Xbox goes on sale on Thursday and already 'tens of thousands' of British customers have paid up to £50 to reserve theirs, according to High Street retailer Dixons.

The Microsoft box will go head-to-head with Sony's PlayStation 2, already a huge success with more than 1.8m British owners, and from 8 May with Nintendo's GameCube.

These new consoles offer the most lifelike games yet and the launch of Xbox and GameCube are expected to add 30% to the £1.6bn-a-year British market for boxes and games software.

Ian Livingston, executive chairman of Lara Croft creator Eidos, said: 'Technology has reached a stage where looking at a computer game is not so different from looking at TV. The mass market is being drawn in, so it is not surprising that it is the second-largest entertainment industry in the world.'

The launch is also likely to lead to a bonanza for the many small companies that develop software for the systems. 'Britain's position in the games industry is a bit like that in the motorsport or film business,' said Stuart Dinsey, publisher of MCV, a games industry specialist-magazine. 'We don't own the film studios or fund the race teams, but we supply the production expertise and the gifted people who make films or racing cars successful. The industry already generates more cash for Britain than the film industry.'

Dinsey said the launch of new consoles was good news for the software development industry. But other experts said there were risks. 'Game developers have a bit of a dilemma,' said Jez San, founder and chief executive of Argonaut Games. 'Do they try to develop games for all machines or just back one?'

San said that Argonaut had the scale to develop for all three popular machines, but the choice may be tougher for others.

One British company, Rare, is partowned by Nintendo and specialises in producing titles for its machines.

Eidos appears to be backing Sony. Livingston said: 'History dictates to me that PlayStation 2 will be the winner in the consoles game market. There are 70m PlayStation1's in the world, so mums and dads trust Sony. That's a strong starting point.'

Dinsey agrees - for the short term, at least. 'Sony has a huge head start,' he said. 'In its heart, I think Microsoft admits it has lost this battle, but it knows that this is just a single round in a much more protracted war.'