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The launch of several new-generation game consoles towards the end of 2006 marked the beginning of a new era in the game console industry. The biggest difference between the new generation and the previous generation of consoles is their online services. Microsoft's Xbox 360, the Sony PS3, and Nintendo's Wii all provide a wide range of online services, including online games, online communities, and e-commerce. Besides games, the three leading game console vendors have also provided other types of entertainment services in their game consoles. In late 2007, Microsoft will work with AT&T to provide IPTV service using the Xbox 360. Sony has been working with IBM and Toshiba on the development of Cell processor applications, and Nintendo has also begun to offer new family entertainment services besides gaming. The report will analyze the online services of these game consoles and the business opportunities created by the services.
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