Hot new Xbox to be released in November

MICROSOFT announced a worldwide release date of November 7 for what the company said would be its smallest and most powerful video-game console, the Xbox One X.

The device, which will be priced at $499 (R6 404), is designed to work with a new generation of 4K television sets that offer better picture quality, as well as games that offer ever-more-realistic scenes of car races and fantasy worlds.

Microsoft made the announcement on Sunday at an event in Los Angeles before the start of Electronic Entertainment Expo this week.

The new console will be compatible with older Xbox games and accessories.

Microsoft and rival Sony are trying to update their video-game machines more frequently to phase out the notion of upgrading once every seven years or so – the rate at which companies traditionally have released a new generation of consoles.

Microsoft’s latest machine is designed for the high-end gamer who wants the best features and performance and who owns a TV capable of displaying the most advanced graphics.

“They are trying to attract people who want to be able to use the advanced features of TVs they’ve invested in,” Brian Blau, an analyst at Gartner, said. “Not everyone will want that if they can get a good experience on the less-expensive console.”

Microsoft has previously stumbled by pricing an older Xbox too high. Initial sales for the Xbox One when it debuted in 2013 were hurt by the $499 price tag, and picked up only after the cost was cut. Sony faced similar issues in 2006 when it released the PlayStation 3, which cost $500 to $600.

“Price has played an important role in the launch success,” said Mike Vorhaus, the president of consulting firm Frank N Magid Associates. “The guy with the less expensive box has done very well. I expect that will continue, absent some amazing paradigm shift.”

Core demographic

While console makers have failed to demonstrate demand for a machine that requires an investment of more than $400, Microsoft is hoping the strategy will appeal to the most dedicated gamers. That focus marks a continued shift back to its core gaming demographic, after the company was faulted by some for targeting the initial Xbox One at more of a general entertainment audience. Microsoft showed off 42 games at the event. – Bloomberg