The browser wars are alive and well. While Google is working out the kinks in its beta version of Chrome — a Wednesday update fixed issues with crashing and video playback — Firefox is pushing a beta 3.1 version that promises new features and better performance. Meanwhile, market leader Microsoft Relevant Products/Services still dominates with Internet Explorer 7.

“The browser wars continue. But consumers already have plenty of choices with IE, Safari, Firefox and Opera. The real question is if Google can get those users to shift. Mainstream consumers are wondering why they need to make the transition,” said Michael Gartenberg, vice president of mobile Relevant Products/Services strategy for Jupitermedia. “Chrome is still a solution in search of a problem.”

Chrome’s Web 2.0 Advantage

If test results from WebSketch are right, Chrome may have a marketable advantage: Speed. The company reported a 3x performance improvement over Microsoft IE 7 when using Google Chrome.

In its internal benchmarking tests, editing sites using Chrome is on average three times faster than with IE, WebSketch said. The company said the benefits of Chrome’s V8 JavaScript engine also make adding, moving and resizing objects such as Flickr photos, YouTube videos, and other widgets significantly faster and smoother.

Google may have an advantage for the time being, but how long is another matter. Like Chrome, upcoming versions of Firefox and Safari are developed with JavaScript-heavy Web 2.0 applications in mind in order to deliver a rich, interactive user experience. That once again levels the playing field and makes it harder to convince consumers to make the switch, analysts said.

No ‘Mozilla Effect’

Even if Chrome is faster with Web 2.0 applications, the Google-branded browser still has plenty of problems to solve to compete with Microsoft and Mozilla. Google has not indicated how long Chrome might remain in beta, but the company is known for leaving products in testing mode for long periods of time.

There’s also the question of whether Google can ink some deals with PC makers to make Chrome the default browser. At the end of the day, Gartenberg said, most consumers simply use the browser that comes with their PC. “If Chrome is not going to be the de facto choice,” he said, “then Google is going to have an uphill battle getting people to download it and install it.”

Despite all the technology hype and the privacy-advocate hubbub at Chrome’s launch, most consumers aren’t rushing to download, install and regularly use the browser. In other words, there is no “Mozilla effect” on the browser market. When Mozilla launched Firefox, the market was starving for a browser alternative with better security and cutting-edge features.

“When Firefox came to market, people were interested in something other than Microsoft. Microsoft had a lousy reputation in terms of its browser technology. So the fact that Firefox wasn’t Microsoft helped Mozilla make a lot of inroads with a lot of people,” Gartenberg said. “Still, IE’s adoption numbers are the most dominant. We’ll have to see whether Google can come up with something to give mainstream users a reason to use Chrome.”