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Smashchu2 said:
WilliamWatts said:

What fire in what core market? I watched that video and then I considered Microsofts core markets. Their Windows market? Its fine. Their office market? Fine. Xbox 360? Fine, I.E. they are making profits which are at the industry norms for a single console.

Finally what have they done to prove they are not interested in an expanded market? Did they not pave the way in this industry to take advantage of on demand services like Netflix and movies on demand. Are they not interested in ESPN and Zune music? These are all expanded beyond the original core market.

1.First, Microsoft only cared about the new market in 2009, almost 3 years since it was formed with the Wii. if they actually cared, we would have seen something in 2007 and 2008. Their other E3 press conferences and actions do not align with the expanded market.

2. The fire is breaking out iver Kinect. A lot of XBox fans are ferious over Kinect. Sony has motion controls too, but they did not have the sheer outrage that Microsoft fans did over Microsoft's conference. Here is an example:

To say I was disappointed with Kinect would be putting it mildly. After waiting at the Galen Center for a couple of hours, other than the name, Kinect, nothing was revealed except a handful of pre-recorded demos where actors clearly pretended to control the on-screen characters (avatars) with their own body movement. At several points the avatars would move before the actors did, ruining the illusion of a real live demo of Kinect. This body-synch debacle makes Milli Vanilli’s legendary lip-synch outrage look tame by comparison.

I did not see the anger here, but I definatly saw it at other forums (like NeoGAF). Microsoft fans are not happy. Nintendo never got any flack for their motion controls at E3 06. Sony didn't either with Move. Yet, everyone hated Microsoft's conference. It is a sign of things to come. This will explain it better.

@thismeintiel: Scott Anthony is a co-author for the disruption books. He also runs a firm that helps companies with disruptive ideas. If he says the Wii Remote is a disruption, it is. No argument.

EDIT: You are trying to over apply disruption. A disruptive innovation is doing it different. A sustaining innovation in gaming would be better graphics. A disruptive innovation would be motion controls.

1. Past = irrelevant. If it was relevant then Nintendo = fail for not finding the expanded market for at least 10 years with the GC / N64 and maybe SNES. The relevant information is what they are doing now, not what they did or didn't do in the past.What matters is how good the interface is, and how good the games are to drive it and whether it works as an overall package which people will want to buy, or not. 

2. Who cares. If some people on forums decide to pack a sad, it doesn't mean anything to Microsoft. If they don't like Kinect/Move/Wiimote then they are free to ignore them.