WHY DID MICROSOFT ENTER THE CONSOLE RACE?

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Kutaragi was right from the start after M$, so it was pretty obvious after PSX having success, it would eventually start eating market from Windows. Especially when Kutaragis vision was to create a multimedia device for every home, eventually making PC obsolete. This itself wouldn't be a problem for M$, since they never have cared about the hardware, only about the software running on the hardware. But, it's likely that Sony wouldn't run their games hardware with Windows (M$ offered Windows for PS2 too), which is a problem for M$.

Sony posed a big threat to M$ and its Windows business, so they had to counter it with something (first it was the Windows CE in Dreamcast).

Joelcool7 said:

Now Microsoft is beating Sony in the console market and the idea of Sony producing a computer and OS are now things of the past. At least I don't think Sony will launch their own computer OS anytime soon!

 

PS3 already has the Yellow Dog Linux, so whether or not you want to count that as computer OS, is up to you.

voty2000 said:
You can't just state that Microsoft only entered because Playstation was a threat. They are also in it for the money, just like everyone else.

Yes i can. Think about how much money M$ makes with Windows and that money is why they are in the console business.

If someone molests your market and you don't care about it, next thing you notice you're out of business, or at least shrunk in size.

KungKras said:
But...... If microsoft didn't buy Nintendo, how come they never thought about buying Sega and using their brand name?

Maybe Sega wasn't for sale either back in the day and when it was, M$ didn't want it anymore. Or maybe M$ didn't want Sega in the first place, because of fucking up its customers and 3rd parties. Keep in mind, that M$ played its part in Dreamcast development.