This is the question at the core of my dissertation. I have discussed how the Xbox has fought back and now holds a relatively comfortable number two position in the market. However, what interests me most is to study whether Microsoft can leverage its current momentum and propel itself into the future, eventually capturing market leadership from its fierce rival Sony.
Why this question is particularly relevant is that at present, both Microsoft and Sony are putting in place the foundations for their next generation of videogame systems, known provisionally as the Xbox 2 and Playstation 3 respectively. Although not scheduled for release until 2006, the foundations upon which these systems will be built are being slotted into place at present. Can Microsoft claw back its deficit and start on a level plain with Sony? I believe it can.