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January 9th, 2012, 21:32 GMT · By

Analysts: Xbox 360 Future Linked to Kinect Use, Live Expansion

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The Xbox 360 home console from Microsoft is now the best selling game platform in North America and seems to be poised for a 2012 than is even better than last year but a number of analysts believe that the hardware needs to see improvements this year to remain competitive while the services offered to gamers also require an expansion.

David Cole, who is an analyst with DFC Intelligence, told IndustryGamers that, “The Xbox 360 has had strong sales given it launched way back in 2005. Microsoft seems to finally be doing a decent job of making the Xbox 360 a true media center. However, 2012 looks to be a crossroad year for Microsoft. Gamers are clamoring for not just more games but word about a new system.”

The analyst believes that the Microsoft platform will get a smaller number of exclusive releases during 2012 while the use of Kinect, the motion tracking system that was launched in late 2010, will also slow down significantly as the company tries to cater for the larger install base rather than to the hardcore crowd who bought the device.

Colin Sebastian, who is watching the video game industry for RW Baird, added, “Microsoft should resolve to upgrade Kinect with a more flexible form factor, updated motion sensing and voice activation, and extend Kinect to more non-gaming activities. We’d also like to see an expansion of the content available on the new Xbox Live platform before we can truly cut the cord.”

Rumors are saying that Microsoft is already deeply engaged with the development of the successor for the Xbox 360, which might get a reveal at the E3 trade show and a launch date in late 2012 or in early 2013.

Meanwhile the official line from the company is that it has long term plans for the Xbox 360 and plans to announce more platform exclusive titles in the coming months.

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