What was Microsoft thinking when it got into videogames?

[Joelcool7]

Umm I will say this I have an uncle who works in Microsoft's seattle facility. he told me why Microsoft entered the console industry. He stated it was because Sony was eyeing making themselves an OS and making PlayStation into a home computer brand. As PS3 is more like a computer then the last console and Sony is increasingly eyeing the computer industry for its future.

So Microsoft took the initiative first by supporting the Sega DreamCast with a Microsoft XP OS as well as helping them get their console online etc...etc... However DreamCast wasn't doing its job in distrupting the industry. So Microsoft jumped in to stop Sony and cut their line of support.

Sony's entertainment division at the time was heavily funded by PlayStation which brought in record profits on a yearly basis. Microsoft had to prevent Sony from entering into its own market space, so good old Bill Gates looked into entering the industry.

First Mr.Gates looked into buying Nintendo out right and bringing the GameCube out under the Microsoft label. However the deal never saw actual implementation and Microsoft instead quickly hired former Sega execs etc...etc.. to put together the X-Box.

The X-Box launched with pretty much no first party support. Microsoft invested over 4-billion dollars in losses during the origional X-Box to ensure it succeeded. it purchased Bungie , Rare and many other studios to bulster its first party capabilities.

Microsoft had a three phase plan in terminating Sony. Entering the industry with the X-Box , using the second console to break Sony's grip on the industry and using the third console to decimate and remove Sony as a potential threat.

Microsoft is supportive of Nintendo's DS and also of the Nintendo Wii because Nintendo is moving further out of Microsoft market space. Nintendo is sticking to games and only games and not intrested in producing a multimedia center to compete with the PC. But Sony is intent on bringing its PlayStation brand to the computer as has been stated many times.

This makes Sony a major threat to Microsoft's stability and marketshare. If Sony entered the computer industry using its movie, music and game properties it could easily deliver a knock out punch to Apple and severly damage Microsoft.

So Microsoft is acting in its best interest. My best bet is that after the next console Microsoft will merge its X-Box label onto PC. Switching to an X-Box service on computers rather then an actual X-Box console.