Microsoft: Current-gen console cycle to last longer

The gaming industry has traditionally been defined by the cyclical, technological arms race between console manufacturers. However, the current generation of consoles is markedly different, thanks to the stupendous success of Nintendo and its less-than-cutting-edge Wii, which devalues technological horsepower in favor of innovative controls and mass-market design philosophies.

For the next generation of consoles, Microsoft for one appears to be eyeing a page in Nintendo's playbook. Speaking to the San Jose Mercury News, Microsoft's Entertainment & Devices division president Robbie Bach said that creating more powerful technology won't be enough to lure consumers into the next generation of gaming hardware. Therefore, he expects the current generation of gaming consoles to remain on the market longer.

"Just coming up with something that's faster and prettier isn't going to be sufficient," said Bach. "The life cycle for this generation of consoles--and I'm not just talking about Xbox, I'd include Wii and PS3 as well--is probably going to be a little longer than previous generations." Previously, analysts had speculated that the big-three console makers wouldn't release an update to their current-gen systems until 2011 at the earliest.

Of course, Bach also notes that the current global economic crisis has engendered a penny-pinching mentality in consumers, making it all the more difficult to introduce new hardware. "We want to make sure that as the economy does start to recover, that we're positioned well," he noted.

According to Microsoft's most recent figures, the Xbox 360--which is the cheapest console on the market thanks to a round of price cuts in September--has sold 28 million units since debuting in 2005. As noted by the San Jose Mercury News, the Xbox 360 has sold 3.3 million units in the US through November 2008, slightly outpacing the PlayStation 3's 2.8 million systems. Meanwhile, Nintendo has moved more than 8 million consoles over the same period of time, 2 million of which came in November. Industry-tracking NPD Group is expected to release its sales figures for December later this week.