My Startling revelation of Microsoft’s true ambition.

For many it has been a mystery why Microsoft chose to delve into the video game console market, first with the Sega Dreamcast then with their own console. What was to gain? Why lose money forcing their way into an extraneous market when they were already kings of their own respective markets? As many have already surmised, Microsoft’s prime ambition in entering the Video Game Console market was to impede Sony’s expansion into other markets which threatened Microsoft’s own ambitions for expansion and pre-existing monopolies. This is no surprise of course.

The Xbox was never meant to turn a profit or be a resounding success, it was merely but the foot in the door as was even said by Microsoft themselves. The real contender came with the Xbox 360 which with its pre-emptive early launch baited Sony into playing Microsoft’s game of “build the biggest box” resulting in the disaster which was the PlayStation 3. The 360 didn’t fell the PS3, the PS3 felled itself tricked into a contest of disruption market tactics and trying to win over niche demographics instead of the market as a whole… the 360 simply just had to lap up the wounded PS3’s blood steeling its franchises and titles.

But many of you are probably wondering, if Sony is out of the Video Game Console picture, what will Microsoft do then? Nintendo is no threat and no concern. There is no money in Video Game Consoles for Microsoft, both the Xbox and 360 have cost them significantly and its unlikely they’ll ever produce a console that will reward them with the same profits and market control they have in their other fields. Quite honestly, do I really need to spell it out for you? The Answer is, take everything they’ve invested in developers, infrastructure and technology for the Xbox line and simply move it over to where their real money is, the PC.

Imagine it, Microsoft saying the next step forward in the Xbox line being a new take on PC gaming, perhaps an Xbox service exclusive to their latest version of Windows, what about an disc external drive to play the next generation of Xbox games and even old 360 and regular Xbox games, imagine instead of buying a bulking failure rate ridden console you simply buy a few peripherals for your PC, the possibilities and combination of potential ideas are nearly limitless. They’re already pushing Console Gaming in the direction of PC gaming, the step would be fairly obvious and with a ready and willing consumer base created with the Xbox line and developers at their calling, Microsoft could easily make this happen.

Not only was the Xbox intended to cock block Sony’s ambitions, but it could easily someday transfer the dynasty it has created to the PC and Windows breathing new life into the once stagnant PC gaming market.

Microsoft want to buy the planet.

It has been pretty obvious from the begining that MS ambition is to kill the console market and compel players to PC gaming. with 85-90% of the computer installed base using windows OS it's not difficult to understand why.

Crazy theory is right. The PC gaming market would never be large enough to make your theory worth it for Microsoft. I mean its generally more cost effective to buy multiple consoles than it is to upgrade your system every year when a Crysis-like title is released. I just every see the PC market selling enough software for MS to justify the expense. MS entered the console market to prevent Sony's "set-top box" convergence aspirations.

What Darc Requiem said, basically. The first Xbox was just there to prevent a complete Sony monopoly - and it succeeded pretty well, outselling the GameCube and capturing a good userbase in North America and, to a lesser extent, Europe. (It also gave us great games like Deathrow, Phantom Dust, Oddworld Stranger's Wrath, and a ton of high-quality PC ports, so I for one really don't mind.)

In other words, MS disrupted a potential Sony monopoly. This opened the door for the Wii to capture the hearts and minds of the gaming community, and for MS to latch on with its "Wii60" campaign. And it looks like it's been pretty successful so far. MS hasn't tried to compete with Nintendo, but they have procured ports of former big-name PS3 exclusives (DMC4, Assassin's Creed, GTA4), as well as the attention and support of Namco Bandai and, to a lesser extent, several other Japanese developers who see the system as a "doorway" into the American and European markets.

So, all in all, it's capitalism at its best, and gamers are reaping the rewards.

There is also the school of thought that Microsoft wants the entertainment division to take off because the PC division is stagnating. MS has initiatives to get developing nations to use Microsoft products but, as far as places like North America and Europe go, the saturation point has been reached. Microsoft can keep milking us for occassional upgrades but there's no growth opportunity.

Not to mention the long-running idea that all home technology will converge. I've always thought this was naive but if enough people at MS buy into it then having a popular product in the living room makes strategic sense.

Microsoft's mission was to get a PC/Entertainment system into every living room in America. The best way to do this was to provide a home system with PC features, but easy to use console controls so the masses could relate.

One more generation, and they'll be there.

Think back to 1997 and consider what a highly powerful, fully functional, personal computer that cost $300 would mean to the home computer market? Now, to a certain extent it seems silly to think of the PS2 in this way but (early on) Sony claimed that the PS2 would hook up to a printer and have a productivity software suite.

At the same time the internet was (really) only starting to take off and people believed that television based interenet access was the "way of the future", and Microsoft was working on delivering "Television" through the internet.

A lot of these ideas were (probably) not followed through on because at the time TV resolutions were too low to allow for many of these things to work, which is why you're seeing these features creep into the XBox 360 and PS3.

There are major flaws in the theory. First, the laws in the states and european union will not allow Microsoft to fold the console into Windows. They will have to remain separate until no one else ever sells consoles.

Their major objective is the living room/home. A cheap device in the living room that works well with Windows and expands the windows universe into the living room and controls your entire home from heaters to lights to pictures, to entertainment and beyond. Microsoft will not give up until that goal is fully achieved and Windows is in every electronic device on the planet. Gates' long term goal back in the early 90's was "Windows Everywhere". Whether that is good or not is up for debate but Microsoft doesn't hide this goal at all...

My theory is that Microsoft already controls your office, now they want your living room. All of their media partnerships help them to integrate your Media Center PC with your Home theater.
If the Cable infastructure gets regulated like the phone lines did[Comcast is lobbying like crazy against this, but losing], then M$ will be in the perfect position to stream their own Media to any living room. Pretty soon XBLTv will be competing with Comcast, Direct TV, etc...

The crazy thing is that over the past 3 years Video Game revenues have significantly increased across the whole industry. All the more reason to base the whole system on a gaming console.

Bill Gates overall vision is still a key goal for Microsoft. Integrated home environment, work and entertainment through easy input. Voice recognition for example. I belive that Microsoft is just picking one area at a time to implement this vision and making sure that each is fully integrated with the past and future.