rocketpig said:
crumas2 said:
rocketpig said:
Bolded: They did intentionally fail to keep the Xbox alive. Being n00bs to the hardware industry, Microsoft signed some very bad contracts with Nvidia and Intel. Those contracts pretty much ensured that MS would never stop losing money on the console, forcing MS to turn to IBM/ATI and get the 360 rolling faster than they initially anticipated. I fully expect MS to keep the 360 around longer than 5 years. I think they'll release a new console in year five or six but they'll probably keep the 360 going for a year or two after that point. |
Rocketpig, I've heard this many times, but I've never really heard specifically what happens. Could you provide a summary? |
Oh boy, you're digging into the mental archives for this one. From what I remember, MS signed deals that essentially allowed Intel and Nvidia to retain control over the chip production and rights over the chipset. This basically put both companies in the driver's seat and MS was unable to go to other suppliers or drop prices quickly enough to compete. IIRC, MS ended up in a lawsuit with Nvidia over it. Someone feel free to correct me if I'm wrong. It's been a long time since I read up on it and I'm too busy to look it up right now. |
No you nailed it. It was serious rookie mistake on their part. It prohibited them from reducing prices on their chipset.
