In contrast there must be some concern that Microsoft risks losing a great deal of goodwill. They risk losing that goodwill by not keeping the current Xbox alive. At E3, Sony had all kinds of goodies for the PlayStation 2. Sony had new entries for established franchises like Ratchet, Sly, Jak, and SOCOM. There was strong support for the EyeToy accessory, new products like Shadow of the Colossus, a Neopets title for the younger audience and solid exclusive support from heavy hitters like Square Enix. In other words, the PlayStation 2 looks like it will be a very exciting system through at least 2006.
With Microsoft it seems to be all about Xbox 360. It appears that Jade Empire and Forza Motorsport may be the last big Xbox exclusives. Of course, there is always a lot of talk about backward compatibility. In our opinion backward compatibility is overrated. MicrosoftÂ’s best base of initial consumers for the 360 is current Xbox owners. For these consumers backward compatibility is probably not a major issue because they already have a system that can play Xbox software. However, not having new software that can play on the older system may be an issue. No matter what Microsoft does, most Xbox owners will not be looking to upgrade to a new system until late 2006 or 2007. If these consumers see Microsoft ignoring the Xbox for the 360 while the PlayStation 2 still gets all kinds of cool new exclusive games that becomes a problem. Considering that many Xbox owners also own a PS2 it becomes a true head-to-head comparison. If a consumer suddenly finds themselves playing their PlayStation 2 all the time while their Xbox gathers dust, when the time comes, are they more likely to buy an Xbox 360 or a PlayStation 3?