The recent release of the XBox was expected to shake up the console world. Instead, it is threatening to turn it inside out. In a recent interview for the Financial Times, Kunitake Ando, president and CEO of Sony, claimed that the new features introduced by the XBox to the console world, such as the hard drive and Ethernet adapter, will force SONY to rethink the time schedule for the release of the PS3. "The biggest threat to the PlayStation 2 is that the Xbox changes the industry's life cycle," said Ando, who hinted that the life cycle of the PS2 will now be reduced to 3 years. According to Ando, Microsoft is now considered by SONY to be the main competitor instead of the old rival Nintendo. "Nintendo's Game Cube has been a disappointment in Japan, they have sold only a third of what they had hoped," he said. "The PlayStation 2 is viewed by gamers as the games console to own." Another indication of the importance with which SONY are facing the XBox's release is their decision to abandon their effort to create a hand held product to rival Nintendo's Game Boy Advance, in order to focus on the console market. All these rather negative comments are in sharp contrast to market analyst views. In a recent report published by the International Development Group, it is predicted that the by 2004 there will be 34 million PlayStation 2 units in North America, from the estimated 7.2 million units currently installed in homes. IDG also predict that Microsoft's XBox will reach an installed base of about 20 million units in North America by 2004, while the Nintendo Game Cube will reach 18 million units for the same period. Research for the PlayStation 3 has already begun with Toshiba and IBM pitching in for a $500 million, five year development plan. Production is scheduled to begin in 2004 and the chip promises to offer a completely new PlayStation.
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