The Race for the Interactive-Gaming Market

The recent release of Microsoft’s (MSFT) Kinect, an interactive gaming add-on, was well received by an unsuspecting crowd at a presentation for the new controller-free video game device that included a performance by the acclaimed Cirque du Soleil.

Guests walked in to a brightly-colored jungle world at the Galen Center in Los Angeles surrounded by dancers, acrobats, and even a gigantic elephant puppet. Microsoft will be releasing a wide variety of games for Kinect, with 15 games available at the official launch on November 4.

The games promoted at the convention certainly reached out to their male demographic: “Medal of Honor,” “Call of Duty: Black Ops,” and “Gears of War 3.” However, the real crowd-pleaser was the showcasing of a new Star Wars game in which the player controls a Jedi Knight complete with light-saber fights and climaxing with a battle against Darth Vader himself.

In addition, Microsoft has not forgotten about the sports gamers. That lineup includes interactive games requiring the player to run physically in order to win as well as classic fitness games like yoga. But Kinect is not all about gaming. Users can also use voice commands to start and stop movies or play music as well as use the built-in camera to video chat with other Kinect users or those using Windows Messenger on their computers.

Microsoft is determined to give Sony (SNE) and Nintendo (NTO) a run for their money. Whereas the Wii and the newly-released PlayStation Move use sensors to track motion by the player, the Xbox 360 Kinect uses camera technology to capture the color and depth of the player, enabling the movements of the entire body to be tracked without the use of a remote control.

Still, the Kinect device does have some shortcomings compared to Sony’s PlayStation Move. With Move’s earlier release date of September 19 and forty Move-specific games set to be released by year’s end, Sony may be in a position to control the interactive-gaming market. Sony aimed to set the price at a reasonable level, establishing a bundle pack of Move’s essential Eye, controller, and “Wii”-style sports game for only $99.

The battle lines have been drawn and only time will tell how the public will react to this fundamental change in gaming. Will the public ditch the joystick once and for all in favor of a more hands-free option, or will classic gaming rule the day?