With a decent dose of publicity coming to Microsoft Corp. (NASDAQ:MSFT) these days from the gaming console universe, the world's largest software company has decided to release an upgrade to its vaunted Xbox 360 gaming platform, probably to slap the face of Sony (NYSE:SNE). Sony's current struggle with the PlayStation 3, no matter how its presented, is most likely causing strain to the company and will continue to do so for at least a few quarters.

The new system from Ole' Softie, called the "Xbox 360 Elite," will sell for about $480 and should be in stores by the end of April, according to Microsoft. What has changed? Well, the largest upgrade will be the hard drive inside the new unit, which will come in at 120GB instead of 20GB from the standard Xbox 360. Some gaming fans were wishing for WiFi wireless connectivity and a newer HD DVD player, but no go this time. Microsoft's not putting this new Xbox 360 Elite feature-for-feature against Sony's PlayStation 3 it seems here -- but is that 100% important? Probably not.

More storage for games and faster game access is the priority apparently, which is the direction Microsoft is heading with the new gaming console. Also, with Microsoft under pressure to show a profit from the xbox (and gaming) division, some believe the new "Elite" system is more about appeasing Wall Street than customers. Such is life -- customers get the shaft (but don't they buy the products?) while those market makers get their wishes. In this case, though, ensuring Microsoft does not continue losing money on these consoles is probably a top priority instead of adding top-of-the-line features --- and possibly losing even more money on each system sold.

We continue to hear about how Google could face stiff competition in the Internet search arena from the likes of a re-energized Yahoo! and Microsoft. Both competitors have been reinventing their search businesses in an attempt to get in on the lucrative paid-search advertising business that Google now essentially owns.

But Google has an advantage: The core competency of the company is search. That is Google's brand identity and therefore, the one core service that customers turn to it for.

I mention this because try as it might, Yahoo! won't be able to compete to the point of causing Google lost sleep in the Internet search business -- and strangely it has even admitted this. It plans instead to focus on building content relationships with its customers and offering distinguishing services that are compelling.

Microsoft, arguably the toughest competitor in the computing age, also will not be able to take much share away from Google regarding search. It may be able to beef up search relevance under the new Windows Live moniker. But branding is all important in the consumer mind (just ask Nike or Apple about this). And, try as it might,  Microsoft's brand will never stand for search.