why hasn't it occurred to anyone that MS is in the game business to diversify? and that it was bill gate's vision to combine everything onto a home entertainment hub?
it seems like our memories just don't go back that far, 7, 8 years, or whatever it is.
MS needs XBox and future incarnations more than Sony does. MS needs the diversification. Stopping Sony entering the PC business? Are you suggesting a pre-emptive strike? At a cost of like $5 billion against 1 company? That's preposterous. They're doing this because it just happens that it's in line with their strategy.
There's one thing shareholders and analysts have in common, and that's short-term gains. The things with MS is that insiders probably control 30, 40% of the company, so there's unlikely to be a shareholder revolt. That is why they can afford to keep this going as part of the management's "vision". $1 billions a year only like 10% of Microsoft's profits, so in the name of diversification, it's utterly affordable. Again, Microsoft NEEDS diversification. And quite frankly, I believe it will eventually pay off; not necessarily as a successful gaming console, but something that resembles an entertainment hub.
Of course, this is more Gate's than Ballmer's vision. We will see what direction MS management decides to take the XBox. as a gaming console, the brand has been an unprecendented failure, but MS can use the expertise and technology gained from this "investment" to turn it into something else that could easily be more successful.
Sony acquired numerous businesses during its heyday. Microsoft has done comparatively little to diversify. XBox is essentially their only foray outside software.
the Wii is an epidemic.
