Burek said:
Arkaign said:
Nobody can monopolize the industry, for one thing Nintendo still isn't going anywhere, and nature abhors a vacuum.
Microsoft's problem is they're not built to be profitable as an also-ran, their entire corporate structure is built upon massive market penetration and dominance. The XB1 plans show that through and through. It was spectacularly ambitious, and if it had worked, Microsoft would EASILY have made back that ~8 billion in losses on Xbox.
But it failed to do so, and thus, the irrefutable fact is that Microsoft won't throw money at a loser forever. The plug will be pulled, and it's actually insane to believe that they'll continue to lose money on purpose at this point. The die is cast. Paywalls aren't coming back, the online check isn't coming back, they have less than zero chance of relevance in Europe, the best they can hope for is to not lose the US by any larger a degree as they already are. But 35-50M units sold without paywalls (and with many dual-console owners buying multiplats elsewhere), they're not going to see a cent of profit on XB1. The investors are out of patience.
First time was the promise of entering a market, got the greenlight on that.
Second time was the promise of growing in that market, got the greenlight on that.
Third time was the promise of the big payday, got the greenlight on that.
Oops, that third time went from a golden payday to a swamp of losses and failures.
There won't be a fourth time, and the Xbox will reside next to Zune and Microsoft Bob. Surface RT and Windows Phone will join soon, as mobile moves towards devices where there is less room for profit.
Microsoft, however, will continue to swim in massive profits overall from their successful Windows and Server products. Which is where their investors want their capital at work, not losing billions on stupidity and wasteful spending. |
As much as you seem anti-Microsoft, what you wrote here makes much sense and is actually a very probable turn of events.
People say that XBox is here to stay just because MS has billions. Well, those billions surely didn't save Zune or GfWL.
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His theories are possible, along with dozens or thousands of other outcomes.
The difference is that M$ has integrated the Xbox music/movies/digital content into all of their devices and operating systems. This isn't just a play for the console business. They look at it like it is a piece of their whole business plan with consumers long term. They also recognize that it also will impact their server/office business long term too. In just 4 short years, the ipad impacted many businesses plans to replace existing hardware and software. People are replacing almost all business PCs with tablets and laptops. THat's kind of the whole point behind the M$ Surface line. When people choose a laptop or tablet, they will choose one that matches what they can use it for outside of work too.
M$ is not going to drop the Xbox, because it fits an important part of their overall long term goals. All the Xbox has to do is break even and it creates a big win long term for M$ even if only 35-50 million people buy them.
