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In my opinion, Microsoft is one of the most schizophrenic companies that has entered into the videogame industry mainly because they tend to have a high turn over of executives in the entertainment and devices division of Microsoft. If Peter Moore was still in charge of the XBox division he would (likely) be talking about how interesting it was that Nintendo was entering that marketspace, but that it was important for Microsoft to provide the best gaming experience rather than producing excercise equipment.