mrstickball said:
shio said:
How will Microsoft survive if the hardware becomes irrelevant? How will Microsoft recapture the PC Games Market? How will XBL/GFWL stop the Steam train? Will Microsoft be profitable in it's third try in the console market?
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Could you tell me where "money is still being lost"?
As for your answers:
- How will hardware become irrelevant? If in case it does (which if it happens, is decades away), Microsoft has Xbox Live which has been the biggest online success of any console. It could easily ensure that Microsoft can offer a service system in the event that consoles go by the wayside (again, I do not see that for decades)
- Why does Microsoft need to capture the PC gaming market, again? The market is far different today than it was 10 years ago when MS was in its prime. The market is going towards smaller, bite-sized games. I doubt Microsoft can really do a lot there. However, it can continue to be a strong value proposition for developers that want to build cross-platform games between the 360 and PC, which its been doing pretty well at.
- Why is XBL in competition with Steam? XBL offers a much different breadth of content than Steam does. Its not just a gaming platform, but VoD and other such offerings. Microsoft does not need to compete with Steam. They need to compete with PSN and Nintendo Connect.
- Given that MS has been profitable on the 360 for the past 2 years with pretty good profits, I fail to see why they could not manage to make a profitable 3rd console.
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Money "being lost" in the sense that they won't be able to break even with Xbox 360, let alone the losses from the original Xbox.
I said IF the hardware becomes irrevelent, and the trend definitely supports that. The graphical quality gained by better hardware isn't as big as before, and hardware is much cheaper than ever.
Microsfot is trying to recapture some of the PC gaming market, or else they wouldn't have made any effort in making GFWL. I bundled XBL with GFWL because they're essentially a cross platform thing, although the GFWL side is much worse. In regards to cross-platforming, Steam is also doing that with MAC, and there are really strong rumors of them working on a Linux version.
Although MS has been profitable in the last 2 years, they won't break even from their efforts this gen.