| eugene said: Well you have to remember why Microsoft entered the game world in the first place. For the last 10 years, they were frowned on Walstreet for no longer being a stock growth. They just were not growing mostly cause they tapped their market to saturation. They needed to enter new markets to grow. They dont need more profits, as a company, there probably happy, but they need new investors and they wont iattract any if investors feel they wont get any returns. The gaming world is rich and so is the Mp3 portable media player world. gaming made Nintendo the huge empire it is today and Ipods made Apple the huge empire they are today. They entered these highly competitive markets, if for any other reason, greater revenue and growth. There real enemy, do not be fooled, is Google as their stock growth have been making Microsoft look extremely bad in silicon valley. |
That is an awesome theory, and one that I've never heard before. MS' stocks were getting flat and potential investors needed incentive. However, I tend to believe that the reason they entered the game market in particular (aside from the fact that it wouldn't take much effort for them to build a console) was to directly combat Sony. Sony was taking over the living room entertainment centre, and MS wanted it for themselves. So, they slapped together some computer parts, made a console that was much more powerful than PS2, made it look sleek and sexy, and shipped it to gaming outlets everywhere. Even though they failed miserably in the marketshare area, they took a sizable chunk out of Sony's 'mindshare', if you follow me.
Simply put, if Sony was not already in the business, MS likely would never have jumped in.
