Interface update will pad Xbox's online lead, analyst says

Microsoft Corp. will extend its lead in online gaming over rivals with the launch of its new Xbox Live interface on Wednesday, analysts say.

The new interface, which Microsoft is calling the Xbox Experience, is designed to make navigating around media stored on the Xbox 360 andthe console'sassociated online store easier by replacing text-based displayswith picture-oriented graphical carousels.

The idea, analysts say, is to encourage gamers to use the console's dashboard interface and to make purchasing downloadable content easier.

"It's intended to make the service stickier, to keep you there and using it," said Michael Pachter, a video-game analyst for Wedbush Morgan Securities.

Microsoft and its chief rival, Sony Corp., both have about 14 million registered online users. Both companies are doing well in selling games and videos through their online stores, but Microsoft has a considerable lead overall in that a far larger proportion of its registered users are active online gamers, Pachter said.

"Sony is doing a great job on the downloadable content side, not so great a job on the online gaming side,"he said.

Microsoft's other main rival, Nintendo Corp., also offers internet connectivity with its Wii console, but the company is not considered a major player in online gaming and downloads.

The new Xbox interface, which console owners will have to download and install if they want to go online,will also introduce social-networking features similar to those found on websites such as MySpace and Facebookto the video-game console. Gamers will be able to host "parties" on their consoles where they can chat or share photos with up to seven other people.

Xbox Experience features 'still on the roadmap'

Under the previous system, gamers could only initiate conversations when they were inside an actual game. With the new setup,they will be able to begin conversations while in the console's main dashboard and continue them even if they go off and play different games separately.

The move will be Microsoft's second effort in the pastweekto boost its social-networking presence. The Redmond, Wash.-based company last week reorganized its various Windows Live web services, including Hotmail and Messenger, into a single portal that more closely resembles Facebook and MySpace.

Xbox 360 owners in the United States will also be able to download movies from DVD rental firm Netflix. Canadian users, however, will not get the same service because Netflix does not operate in Canada.

Microsoft has also delayed some aspects of the Xbox Experience that it promised at the E3 video-game conference this summer.

The company had planned to extend two features: the "party"functions to movies sogamers could watch films together, as well asan online game-show feature called Primetime where participants could win real prizes.

Craig Flannagan, group marketing manager, for Xbox Canada, said those features are being delayed because they're not ready.

"We're working on that [to introduce the features] in the spring," he said."It's still on the roadmap."