Broadband dearth leaves Euro net gamers out in the cold

NEWS Nintendo is launching an online version of GameCube which will allow US users to access games on a pay-per-play basis, but has no plans to do so in Europe. The online service launches in the US this autumn, with both broadband and dial-up modem adaptors set to retail for $35. Users plug their GameCube console into the internet and access games through their ISP. Revamped versions of Sega's "Phantasy Star Online" series will be the first games to go online, but Nintendo has said it is in talks with developers to write new games. Despite selling 400,000 GameCube consoles in Europe since its release on 3 May, a spokeswoman for Nintendo UK said there were no plans to launch a similar service in Europe this year. How exactly users will pay to play is still under debate, but Nintendo has said it will work with games publishers to develop a choice of subscription models. While estimated take-up figures and subscription rates have not been released, the company is obviously not banking on making a fortune online. Satoru Iwata, director of corporate planning at Nintendo, said in a statement: "The profitable part of the online business is very likely several years away. "It will be part of Nintendo's strategy but not the mainstay as other companies are attempting to do. There are still too many barriers for any company to greatly depend on it."
While Nintendo is confident it will sell another 500,000 GameCube units in Europe in the next six weeks, Sony has already discounted the price of the PlayStation 1 in the UK, and will drop the price of PlayStation 2 in the US from $299 to $199, amid flagging sales. While the company recently announced it was working on a 3G successor to PlayStation 2, Jonathon Fargher, UK PR manager for Sony PlayStation, said the company had no plans to launch an online gaming service in the US or UK. "We've been investing heavily in broadband, and investigating its penetration in UK households, but we won't launch a broadband adaptor until there is sufficient capability in the UK, and there isn't at the moment," he said. However, Sony is expected to make a PlayStation 2 strategy announcement next week at the E3 Games industry conference in Los Angeles. Microsoft, which has suffered disappointing Xbox sales, is also expected to announce a US price cut and an online gaming strategy next week. Worldwide, Microsoft has sold about four million Xbox consoles since it launched in November 2001, Nintendo has sold a similar number of GameCubes and Sony has shipped 30 million PlayStation 2 boxes - seven million of those in Europe - since it launched in March 2000.