Microsoft pushes Xbox online

C|Net | at | by Mike

Microsoft on Friday will raise its stakes in the gaming market with an elaborate new online service for its Xbox video game console. The new service, which lets Xbox users play games over a high-speed network connection, is unlikely to have any immediate impact on Microsoft's position in the game market, analysts said. But it gives the company a strong entry into the niche, in comparison with competitors such as Sony and Nintendo, as the company builds its market share for the future.

"They're basically playing for the future with Xbox Live," said Schelley Olhava, an analyst for research firm IDC. "I don't think it's going to be one of those features that get people to run out and buy the Xbox...Microsoft sees it as an investment. They really feel that if they build out the infrastructure now, it's going to serve them well in the future."