Letter: Lenovo ebox æ’¼ Microsoft's key points for success or failure

Following the mobile phone and tablet PC, Lenovo (992) expanded its electronics business again. The latest news is aimed at the home entertainment market and the launch of the e-box of video games. Lenovo set up its subsidiary Beijing United Green Mobile Technology last Friday to focus on the development of game consoles. Although the detailed specifications of the game console have not been published, it has attracted the attention of people from all walks of life. However, the success of a game depends on three aspects: pricing, performance and game content.

Lenovo has been keeping its mystery and is unwilling to say more about ebox details. It only revealed that it would control the game with the current popular somatosensory, without any controller. Unlike the Nintendo Wii, which had "feeling" about somatosensory control a few years ago, using a Kinect operation that resembles Microsoft's xBox 360, the video camera analyzes the player's actions and interacts with the game without having to use the controller. The product is expected to be released in November this year and will be launched in China next year, and will be available later in overseas markets.

However, it is difficult for ebox to let Lenovo out of the image of the cottage. The foreign technology website "Engadget" describes the association's ebox as a cottage. From its name, it can "associate" xBox, and the gameplay is like xBox and Wii. In the past, Lenovo sold 100,000 mobile phones and rumors will be released in the Mainland. Tablet PC music pad, are "cottage" Apple's iPhone and iPad.

Even if it is evaluated as a knockoff, ebox has an absolute advantage in the mainland market. It turns out that there are currently no official game consoles available in China. Sony's PS3, Wii, and xBox are all balanced imports. Ebox has the advantage of Chinese language interface and licensed services.

Piracy is a serious sell-off of profits. However, the business of independent cities does not mean that they must succeed. It also depends on the performance, pricing and game content of the game consoles. Pricing is the key to the success or failure of the game console. In fact, gaming machines are mostly priced based on performance and hardware configuration. There is no detailed information at present, it is difficult to estimate the price. However, the current three major video game consoles use the Razor and Blades sales model, which means that game consoles only earn a small profit, or even lose money, to make money from game sales. However, the issue of piracy in the Mainland is serious. If eboxes are sold flat and players do not purchase genuine games, Lenovo is not profitable, but adopting a high pricing strategy will only scare off potential buyers. Therefore, ebox should be carefully priced.

As for game console performance, the ebox has not announced the hardware specifications, but from the somatosensory manipulation gameplay estimates of the game console, the ebox is not taking the PS3's powerful hardware performance route, creating realistic and three-dimensional game effects. In fact, even xBox failed to match the performance of the PS3. Sony had spent a lot of money on the development of the PS3's core chip, but this machine's sales have not been able to overwhelm xBox.

Regulatory Difficulty Pushing Violent Games Therefore, it is estimated by the outside world that the performance of ebox may be between xBox and Wii. Wii attracts players with simple game screens and innovative gameplay, and the development costs are lower. However, if the performance of the ebox is similar to that of the Wii, then the ebox will be hard to see. At that time, there may be an embarrassing situation where the player would rather buy the parallel Wii and not play the ebox. It is worth mentioning that the core processing chips of the three major game consoles on the market are developed by IBM's wafer factory in East Fishkill, New York.

Whether the game can attract players or watch game content. According to Lenovo, there are currently 16 developers who have promised to write games for the ebox, including large works. However, the mainland government strictly regulates the content of the game and does not allow excessive violent games to be sold. However, foreign large-scale works are mostly dominated by violence. Lenovo said it will develop more games with Chinese characteristics to attract players. The ebox will have about 30 free games built in.

In fact, home game consoles have appeared in the Mainland, but they are fleeting. Sony launched the red-hot PS2 in the Chinese market in January 2004, but it disappeared in less than a year. The Mainland online game business Shanda had launched a set-top box called “box” in 2005, which had IPTV and video game console functions. However, one year after its launch, the SARFT issued a document that violated regulations, and the product died without success.

However, according to the World Trade Organisation (WTO) regulations, China will have to further open the entertainment market to the United States before March 19, 2011. That is, other game consoles are expected to enter the Chinese market. Zhang Yaqin, chairman of Microsoft China, said at the ChinaJoy held last month that he hopes to bring xBox 360 to China as soon as possible. Lenovo ebox will encounter strong rivals.

Lenovo expects that ebox will have an annual sales volume of one million units in the next two or three years. It is too early to say whether this figure can be achieved, but it can be seen that Lenovo's ambition is not only to satisfy the current personal computer business, but also to develop into a kingdom of electronic products.