Analyst: Xbox Business a 'Disastrous Endeavor' for Microsoft

[Joelcool7]

Don't forget that Microsoft has a three phase plan.

The first phase showed Microsoft could enter the industry. Microsoft focused on North America. The X-Box was sort of to test the water see what the consumers wanted and to give the consumers what they wanted. Microsoft really never expected it to actually blow the competition out of the water rather to see just how viable an entrance would be.

Phase two is to bring Microsoft's X-Box to a gloabl audience with the 360. This phase has seen Microsoft putting alot of effort into the Asian markets. We've seen 360 enter India , Korea , China and Japan. Microsoft has put a ton of pressure on Japanese developers to develope solid titles for Microsoft in Japan. Microsoft's constant buyouts and deas in Japan are seen as a messure to make an impact test the Asian water's and become known more in Asia. Microsoft also is back to profitability with every hardware unit sold this is a major asset they lost billions on the X-Box for the same reason (No hardware profitability) Charging money for the X-Box Live service should also be helping them financially.

Phase three to see if they can stick. Can Microsoft make enough of an impact on the Asian/European markets to create a successful platform. Microsoft will likely go smaller budget for the next X-Box's hardware. Microsoft will likely try to be profitable from day one unlike the first two phases. Microsoft will see if they have created a large enough stronghold to make it worth their while to maintain the X-Box brand. Chances are Microsoft will put a ton of effort into building a final platform and givin it one last try.