Microsoft could end up in 3rd place next-gen

[DesaiDeas]

First, you must understand that Kinect is a financial success, and Kinect 2.0 will bring a stereoscopic experience with higher sensitivity and motion tracking capabilities. This allows Kinect to spatially recognize your environment and can calculate your exact position.

Second,
When you watch the illumiroom level, you see it operating with several different games. How did they do this? Did they go back to the game company and say, "Hey can you rebuild your entire graphics engine to output a 1080p signal + another 720p of overlayed graphics from a completely different camera angle?"
Nope.

The way illumiroom works is that it utilized Microsoft's own software (SDK) to access the 3D world that is being rendered. It then uses your Kinect 2.0 information to calculate what the camera angle would be (just like light source or camera) to show the same projected image over your room - your monitor (which I'm assuming you have to input the size).

This means that developers really don't have to do anything different to introduce a completely new experience/revolutionary feature to their customers.

For Microsoft it means that they may build/create their own projector (low resolution for the sole purpose of augmented reality menu's). Just like Kinect this device too will be a financial success. Perhaps LED DLP tech with a wide throw mirror. Since the next Xbox outputs at 4k resolution, this would be a great add on to 1080P Tv's to get a richer experience with 4k content without having to shell out 2500 for a 4k TV (This price point is for 2014, it's about pixel density issues as to why smaller displays (in the 30-60 inch range will have more difficult yields leading to premium pricing) There is a price point where $299 seems like a steal to better experience 4k. Check out wikipedia to see how much larger the 4k format is resolution wise. http://en.wikipedia.org/wiki/4K_resolution

Going back to Windows 8, we may see Microsoft offer a business version of the xbox with kinect 2.0. More focused on niche uses such as presentation rooms (access sky drive for showing power points) productivity and content creation apps (A virtual whiteboard or second screen for a Windows 8 PC)


Microsoft is crafting a killer strategy to shift into Apple's model in markets where Apple still does not have dominance. Further more, it's Microsoft web services/API/Azure platforms that are domain expertise that cannot be duplicated by Sony or Nintendo, despite them trying desperately to cobble together those networking infrastructures and capabilities with services from start-ups in the valley. Unfortunately those cobbled together offerings won't be able to compete.

Sony and Nvidia's relationship has soured since the former dropped the latter in the bidding war of putting together a cheap console (Not a whisper about Cell and the 4 billion dollars sony dropped into a failed architecture) Sony is going X86 and running Linux on the PS4, albeit not an open one. Nvidia is going to make a real play for handheld gaming that rivals console experiences, and it will be bringing what we experience today into our pockets.