I really wish this place had a better quoting function, but here it goes with what it's got:
Jetri said:
Microsoft knew the original Xbox was going to lose a lot of money. However, that is the cost of getting into the game industry. There are only a few companies that are capable of doing what Microsoft did. They wanted to get in it for the long run and didn't expect to make a profit at first. In fact, the press release announcing the xbox didn't even mention any profit incentives, they just wanted to have a box under your TV.
Had Microsoft actually done a half-decent job of planning for the long-run, then they would be in a much better position this generation instead of a distant second with only a marginal lead over the third-place console, which is exactly where they where last generation. So you see, they really aren't that much better off despite a year headstart and selling more consoles this generation than the previous generation. They may even end up with less overall market share.
Seeing as how Microsoft is not in the handheld business, that really isn't a concern to them. I don't really understand why you posted this. Even if handhelds are the primary plaform in Japan, Microsoft is interested in having a device in your living room, not pocket. (I guess one could argue about the Zune and Windows mobile, but that is another topic)
Handhelds are as much a part of the video game market as home consoles. This is why Sega never could overcome Nintendo's presence in the market despite its successes with the Sega Genesis, and it's why Nintendo had a bigger presence in the market last gen despite Microsoft selling more home consoles(Nintendo sold more total consoles with 22 million Gamecubes and 80 million GBA's to 24 million Xboxes). Even this generation, Sony will have sold more total consoles than Microsoft, and hence will have had a larger impact on the market. Hell, look at it this way. If not for the DS, do you think the Wii would have anywhere near the level of success that it's enjoying right now?
Also, the reason the PSP is getting its behind handed to it by the DS is because Sony is the leading force behind it. If Nintendo or Microsoft owned the DS, it would have been a hit due to Nintendo's solid handheld strategy and Microsoft's checkbook. Not too big of a hit since people need time to adapt to all the functionality, but a hit nontheless. Wait until the DS2 and PSP2. Those consoles will have more multimedia features and people will embrace them.
I think you mean "had Microsoft owned the PSP." in any event, you're wrong as is evidenced by the fact that the 360 has proved largely ineffective at stopping or even slowing the Wii, so the idea that they could have done anything to the DS is just silly.
Consoles owned: Saturn, Dreamcast, PS1, PS2, PSP, DS, PS3
