By using this site, you agree to our Privacy Policy and our Terms of Use. Close
Machiavellian on 18 July 2014
Edit Thread
binary solo said:

Presence =/= integral. Plenty of companies have a presence in a product category as a defensive strategy which is not integral to the company's vision. Check what Xbox contributes to MS's profits and you will see how integral it is to them.

You think a presence in 84 million houses globally is a big thing? It's not, it's pathetic market penetration. So is being present in 150 million houses (PS2). If you want a product to be integral to the "ownership" of  the living room then history shows us consoles are not the way to do it.

Apparently PC is present in 900 million houses globally. Now that's a big thing. Better would be to find a strategy to put PC onto the TV screen..oh wait we already have it, TV with wifi capability.

How do you think MS is going to keep selling you those services they have.  From music, TV, Movies and games.  Even on the back end MS has great opportunity to tie in developers and publishers to Azure platform.  The Xbox is what you call an add on piece.  It complements MS core products and allows them to extend those services to consumers homes.  Integral means you have multiple devices that deliver your services and backend process not just one.  Its one of the main reason, MS is selling phones, tablets and consoles.  This whole digital life they continue to talk about is a mutiple part stragety to get their products and services into consumers homes.  Xbox is not just about the hardware but also the software and services tied to the brand.  Each have a role in the broader market goal which is to bring MS products and services to consumers.  As the PC fade more as a product for consumers, phones, tablets and consoles start to move into those roles.

I believe you have to stop looking at the Xbox as this island separated from MS core products but instead look at it as the bridge that get those core products to different islands/mainland areas.  The bridge is just as important as the stuff moving on them even if you have multiple different ways to transport your services.