The Xbox is a whole new world.  According to the Microsoft website, the Xbox is a world where extraordinary graphics and lightning fast processing speed live together.  The Xbox is the latest and most powerful videogame console on the market.  According to the Techencyclopedia, a video game console is a specialized desktop computer used to play video games.  Videogames are now either on cds or dvds.  Video games used to be on cartridges.  Although consoles may be powered by cpu chips that are similar to those that are found in desktops, the hardware is under control under the console manufacturer.  Therefore, the manufacturer's software is geared directly to the console's capabilities. 

Market:
       According to the Dreamstation webiste, Zanthus, a research company, found that teenagers drive the video game market.  Teenage males between the ages of 14-17 generally makeup the heavy gamer market.  Of course, the main application of the Xbox is to play video games.  But, video gamers also buy and use the Xbox for its many features.  According to the Microsoft website, the Xbox has the most powerful graphics processor.  This graphics processor allows the Microsoft manufacturers to make powerful games only available on the Xbox.  The Xbox also has built-in broadband capability.  The Xbox was designed to allow gamers to play over the internet.  The Xbox also has a built-in hard disk.  Just like a computer, this allows saving directly to the hardrive.  Therefore, a memory card, which can be expensive, is not needed.  However, memory cards are needed with the competition, the Playstation 2 and the Nintendo Gamecube.  The Xbox also has Dolby Digital 5.1 surround sound support.  Finally, the Xbox has DVD capability.  You can watch DVD movies on your Xbox.  These are the features the draw videogame users to the Xbox.




Major Manufacturers:
    The manufacturer of the Xbox is the giant corporation Microsoft.  Microsoft has their hand in many different fields.  Of course, Microsoft invented Windows, the computer operating system.  Microsoft also makes different types of software, like computer games and different types of programs.    Microsoft also developed MSN, which includes the MSN Network,  MSN internet access, and other web-based services.  Microsoft has developed the Xbox, which is the actual console or computer.  As far as the games, or software, goes, there are many developers.  Microsoft does make its own games exclusively for the Xbox. The branch of the company that makes these games is named Microsoft Games Studios.  Some of these games include NFL Fever 2003, Mechassault, and the popular Odd World: Munch's Odysee.

NFLmechOdd
         
         Some other manufacturers of Xbox games include EA, Acclaim, and Konami.  Some popular games by EA include the popular sports titles, James Bond 007: NightFire, and SSX Tricky.  Some popular Acclaim titles include All-Star Baseball 2004, NBA Jam, and Legends of Wrestling: Showdown.  Airfoce Delta Storm, ESPN NFL Primetime 2002, and ESPN Winter X Games Snowboarding 2002 are games made by Konami for the Xbox.  The signature game for the Xbox is Halo.  Halo arguably earned the highest reviews that any game as ever received and gamers play it throughout the world.  Halo was developed by Microsoft Game Studios. 
halo
Microsoft also makes their own hardware for the Xbox, such as controllers, steering wheels, and carrying cases.  Microsoft faces competition in these areas from companies such as Mad Catz and Thrustmaster. 
wheelcontroller

Specifications and Features:
       According to the Microsoft website, the specs for the Xbox are as follows:
Cpu:   Intell Pentium III 733 MHz processor
Graphics Processing Unit: 233 MHz custom 3D graphics processor by nVidia
                                          300 million micropolygons/particles per second
                                          150 million transformed and lit polygons per second
                                          100+ million polygons per second sustained performance
                                          4 simultaneous textures
                                          compressed textures available at 8:1 compression
                                          full-scene anti-aliasing
Memory: 64 MB of RAM
               6.4 GB/sec memory bandwidth
Storage: 8 GB hard drive
              4X dvd drive with movie playback
              8 MB memory card
Sound: custom 3-D audio processor
            64 audio channels
            3-D audio support
            midi/dls2 support
            AC3 encoded game audio
Network: 100 MBPS Ethernet Port
                optional modem
Input/output: 4 game usb controller ports
                      expansion port
                      proprietary a/v connector
      

       A very popular feature that the Xbox has besides those listed in the Market section is the Xbox Live feature.  According to the Xbox website,  Xbox Live is an interactive network that allows gamers to play with, against, and interact with each other.  There are chat rooms where gamers can meet and talk to each other.  Xbox Live is setup over the internet.  You can download updates to games on Xbox Live.  Special games are created specifically for the Xbox Live.  You can also talk to your opponents or teammates with the Xbox communicator voice headset.  For $69.99, buyers get the game Mechassault, the Xbox communicator voice headset, and 12 months of Xbox Live service.  After the 12 months, Xbox Live members pay a yearly fee of $49.99

Pricing:
    According to the Xbox website, Xbox is currently having a holiday offer.  In the package, you get the Xbox console, a two month trial subscription to Xbox Live, the games Star Wars: The Clone Wars and Tetris Worlds Online for $179.99.  The price of games range anywhere from $49.99 to $19.99, depending on how old or popular the game is.  Some games have now become platinum hits.  These are some of the older, more popular games that had a certain amount of copies sold.  They are now available for $19.99

platinum


Brief History:
    According to ActiveXbox, the first developers signed off on the Xbox in October 1999.  On December 21st, 1999, the general specifications were officially signed off by Bill Gates and sent to developers .  In February of 2000, there was a secret 3rd party developers meeting held in Seattle.  On March 6th, 2000, Microsoft signed made a deal with Nvidia for Nvidia to develop the Xbox Graphics engine.  On March 9th of 2000, Bill Gates officially announced the Xbox on CNBC.  On March 10th, 2000, Bill Gates announced the Xbox in Japan.  In May of 2000, Microsoft decided to up the processor speed of the Xbox to 733MHz.  On June 2nd of 2000, the first screen shot of a prototype Xbox was released.  On November 7 of 2000, Microsoft chose Seagate as the hardrive manufacturer. On January 6th of 2001, the official Xbox is  unveiled.   In mid-October of 2001, Xbox preview units were shipped to stores for demo use.  On November 15th of 2001, the Xbox was officially released in the United States.  The official Japanese launch was February 22nd, 20002.  The official Euro launch was March 14th, 2002.


Market Penetration:
    According to an article written at Gamerstv by Steven Gates, Microsoft Xbox has been the only next generation console to demonstrate positive market share growth on a year-to-year basis.  According to NPD Group Inc., Xbox sales have increased 6 percent from this same time period from last year.  Sony Playstation 2's sales have dropped 36 percent and Nintendo Gamecube's sales have droppped 22 percent.  Xbox has 27 percent of the U.S. industry market share for next generation consoles, and it is on track to gain more this holiday season.  Xbox Live has seen a sales increase of 17 percent.  "The latest data is really a harbinger of what we expected to see this holiday season," said Mitch Kotch, Vice President of Retail Sales and Marketing division at Microsoft Corp.  "With close to 400 games, a global Xbox Live community, 50 Xbox Live enabled games, and a holiday promotion that offers tremendous value, Xbox is appealing to an ever-growing audience of thrill seekers."  The success of Xbox sales will continue with an outstanding holiday lineup of upcoming games that will be released for the holidays.

Latest developments/news stories:
       According to the EE Times, Microsoft is going to start making computer chips.  Microsoft would then deal primarily with the Xbox and sell them these computer chips.  These computer chips will be used in the next Microsoft videogame console, "Xbox Next".  The report says that this approach will allow Microsoft to better optimize its game console, address hacking problems, and potentially sell chips or derivatives for other applications. According to Hardwarezone,  there has been a Xbox Japanese price drop.  Starting November 11th, the system will be priced at 16800 yen, which is equivalent to 152 dollars.  The report also revealed that a new package deal will be offered when Project Gotham Racing 2 is released.  The package is called "Platina Box", and includes the system, two controllers, the dvd playback kit, Project Gotham Racing 2, Halo, and 2 months of Xbox Live service.  It will be priced at 19800 yen, or 180 dollars.  Finally, according to an article at  Siliconvalley.com, Microsoft has broke off its deal with Intel and has decided to go with IBM for the processor hardware in the next Microsoft video game console.  Now, IBM has deals with Nintendo, Microsoft, and Sony.  More latest developments and new stories can be found at Googlenews.

Advantages and benefits:
    For gamers, there are obvious advantages that the Xbox brings.  It is by far the most powerful system compared to the Playstation 2 and Nintendo Gamecube.  And, with special features such as Xbox Live and games only made for the Xbox, the Xbox has a lot to offer that those systems can't match. 

Downsides or negative impacts:
    According to an article from USAToday, video games can lead to violent behavior from children.  Video games can boost aggressive feelings and behaviors in players.  There are other negative effects that can come from video game use.  Some of these effects include social isolation, desensitization to gender issues, as women are often portrayed as weak in video games, rewarding violent behavior, seizures, and repetitive stress injuries.  One thing that would help dealing with the violence and graphic material would be for the parents and children to recoginze the video game ratings.  The Entertainment Software Ratings Board is in charge of game ratings.  There are six ratings in all: early childood, everyone, teen, mature, adults only, and rating pending.  Parents should read these ratings to see if games are suitable for their children.

ratings
 

Product Reviews:
    According to IGN, a video game website, the Xbox has been very succesful.  Gamers are very happy with the system, and most video game experts consider the Xbox the superior video game console out of the next generation consoles.  People are impressed with the powerful specifications compared to those of the Playstation 2 and Gamecube.  People also like the games made specifically for the Xbox by Microsoft Game Studios, as they seem to be better graphically and gameplay wise.  Halo is a game that few experts will ever be topped in terms of gameplay, graphics, and overall fun.  This is a game that could only have been made for Xbox. With Xbox Live becoming a serious online platform, this will only make the Xbox more appealing to gamers and consumers.  For reviews of games, hardware, and release dates of games, IGN Reviews does a great job of providing gamers with information on the latest Xbox games and hardware. 


Internet newsgroups and mailing lists:
The Xbox Nation is a group that is dedidicated for the Xbox.  They discuss the system, games, codes, and other things that deal with the Xbox. 

X-Box is a group that includes topics of general chit chat to game reviews to even modifying and customizing your Xbox.

X-Box Group is a group composed of 175 members, one of the larger groups I found.  This group discusses everything about the Xbox.

There are a total of 565 Xbox groups that I found at Yahoo! Groups.


Regulatory Concerns:
    A problem that companies are facing today is the copying of videogames.  Like downloading music and movies, you can download videogames and burn them on to cds.  Gamers can buy these burned video games at a cheaper price than the company made games, or gamers can even copy games to cds themselves.  According to ActiveXbox, to prevent gamers from trying to play illegal burned games, Xbox does not play certain brands of cds.  These brands include: Acer, CompUSA, FujiFilm, Gigastorage, High Tech, Imation, Memorex, PNY, Sony, and Verbatim. 


Predictions:
    I believe that the Xbox will continue to be succesful in the long run.  It is currently the most popular game system on the marekt.  Also, the sales are going up while the sales of the Playstation 2 and Gamecube are going down.  The Xbox will continue to evolve with the release of newer, more powerful video game titles and hardware.   Xbox Live will also continue to become more popular and widely used.  Also, word has been creeping out about the future system that Microsoft will make, currently known as "Xbox Next".  Not much information is known, but we know we can expect a release of the new system around the holiday season of 2005.  We also know that Microsoft has dropped its contract with Intel, and has decided to go with IBM with the making of the processor of the next system.  We also know that Microsoft will also start making its own computer chips, primarily for the new system.  We can expect this system to have incredible specifications, and to compete with the next systems that Nintendo and Playstation come out with.  As usual, it seems that Microsoft is on top.  It's Bill Gates world and we are just living in it.
 
Sources:
Xbox
Microsoft
IGN
ActiveXbox
Jack Cimasko
November 12, 2003