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Bitmap Frogs said:
skiptomylou41k said:
@ Bitmap Frogs

I don't understand why you keep bringing up sales, i'm not even talking about that, my argument is about microsoft's intention which was so solidify the pc gaming market which they saw as deteriorating with increased console gaming, they may not get any profit directly, but they do indirectly with pc sales and market share

 

By Jove!

Let's start with the basics: Microsoft does not get any special profit from gaming being popular on PC's. Every single PC used for gaming would have been bought for something else (you know, internet browing, email, messaging, etc). Their windows license fees are safe. On the other hand, they make a shitton of revenue off the console user (just like any other manufacturer) - profit on the unit, royalties on every game, accessories... Owning a console platform is a massively profitable venture (as Nintendo has shown everybody) and on top of it is a gateway to even more services like movie rentals, etc all of which also leave a share for the platform owner. Microsoft doesn't need a hidden goal of killing console gaming as an excuse to enter the market, the own dynamics of the console market and the revenue streams are enticing enough. Heck, given enough users, Microsoft would make more money off consoles than PC's, which is reason enough to enter the market.

Then, there's the other one: if Microsoft had the secret goal of turning the PC into the single, exclusive gaming platform... TA-DA! It'd been way way cheaper to do it without entering the console market. Selling hardware to consumers it's costly and requires an entire overhead and structure MS had to build from scratch! The billions and billions they've dumped into this venture could have been used to produce hundreds of AAA exclusives for the PC. Not to mention they could have used their massive marketing budget on pushing the PC. Ever since the Xbox got started, Microsoft has squished their PC development teams, killing AAA sales and mindshare franchises like "Age of" in order to concentrate on the Xbox division. Games for Windows, a push to give some support and unity to PC gaming devs and consumers has been pretty much a ghost project with skeleton crew and arguable results. 

Here's what's happening: you want to believe Microsoft is evil or want to promote that idea, that's your conclusion. Then you've been cherrypicking and twisting facts in order to produce an argument to sustain your pre-decided conclusion. What you are suggesting is not only insane but against all kinds of common and business sense and stinks of conspiranoia. 

The worse is that such a strategy would not work and Microsoft execs are smart enough to realize. Unlike you.

As I have already stated, owning a console platform is a huge business opportunity. If Microsoft somehow could monopolize the console market and then phase out their console operations, you know what would happen? C'mon, that's basic economic theory - someone else would rise to fill the niche. Because this is larger than you think, consoles aren't just a brick under your TV, they are something that people want. And as such, there will always be someone providing it. Even if Microsoft could somehow wipe out all other console makers, they would not be able to wipe the market's interest on such items.

Now go FUD somewhere else, thank you.

First off, how is what he said considered FUD? He is making a claim to revive the PC market with a console. This would be a Blue Ocean type of strategy (although not exactly). That's not fear, uncertainty or doubt.

Second, you are both wrong. Microsoft is in the business for defensive reasons.