XBox Australia regional director, Alan Bowman, today announced that Australian Internet Service Providers had started testing to see if their services can interoperate with XBox Live servers located in the Unites States.
The software giant hopes that a group numbered in the hundreds will start beta-testing the service in September, ahead of an October retail launch.
Sony Computer Entertainment Australia (SCEA), the game console market leader, late last year committed to launching its PlayStation2 online gaming service by mid-2003.
Microsoft is attempting to quickly grow a loyal subscriber base for online gaming. Microsoft has priced its XBox Live starter kit at just under AU$100 and each kit will include 12 months' access to the service.
The XBox Live service is targeted at DSL users said Bowman, adding that no one service provider would received "preferred" status.
Bowman said Australian telecommunications carriers would not be put off by the presence of voice communication features on XBox Live.
"XBox Live will be a core driver of broadband take-up [in Australia], it's a machine that's been built from the ground-up with broadband in mind," he said.
However, questions still remain as to whether XBox Live will drive take-up of the XBox gaming platform. Microsoft XBox Australia claims that its US parent has sold 350,000 subscriptions to the US service since launching in mid-November 2002.
However, late last year, US-based IDC gaming market analyst, Schelley Olhava, said that Microsoft was looking to the long term with its gaming service strategy.
"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," said Olhava.
Microsoft has lost US$350 million globally in trying to crack Playstation's domination of the gaming market. Bowman today conceded that the company still had some way to go.
"Clearly we're number two and that's a great position to be in today...great in a market where the incumbent is firmly entrenched," said Bowman.
Today's announcement regarding the online service coincides with other major regional launches, with the service also being made available in Europe.
I thought that Microsoft was supposed to have done a deal with Telstra. I bet Telstra didn't want to make any deals unless they got a cut of the Xbox Live subscription payments. Bloody wankers. When will the Government take some initiative and do something about the deteriating state of broadband in Australia? Not as long as Alston is in power, thats for sure.