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Microsoft Xbox 360 Set To Decline Says Analyst Firm

Industry Market Analyst DFC Intelligence has issued a note saying that Microsoft's flagship gaming console, the Xbox 360, has already passed its peak and is set to weaken over the next few years.

The brief, Gamasutra reports (opens in new tab), says that Kinect, the newly announced peripheral, will have a neglible impact on the sales of the Xbox before adding that "The Xbox 360 has some good years left, but the platform is clearly on the downside of its lifecycle".

It also adds that Microsoft may be betting too much on the Kinect presenting it as "a way to appeal to the 'casual' consumer and expand its user base". The Kinect is expected to be launched towards the end of year and prices should hover around £100.

However, at least two other analysts (opens in new tab) refuted the claims by DFC Intelligence saying that the gaming console is being enriched with a number of new online services, games and peripherals that augment the platform's usefulness and longevity.

The other factors that contradict the analysis by DFC Intelligence are the current global economy that precludes any significant platform shifts, the fact that SDTV still represents a significant portion of the overall television market and Microsoft's clear desire to keep the Xbox 360 going.

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at ITProPortal.com where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.