What was Microsoft thinking when it got into videogames?

[Godot]

Joelcool7 said:

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.

 

Well, that seems to make a lot of sense. I would like to add one thing. Xbox is basically a short for Direct X Box. Their other intent is to use the Xbox as a way to support Direct X and encourage developper to develop games for both the PC and the Xbox. By doing so, they try to stop the drift that has happened to PC gamer towards the consoles. They also are reinforcing their dominance in the OS market by ensuring gaming thrive on Windows. 

 

The other front MS is attacking is online. We are seeing a lot of synergy lately with everything called live. Live has basically replaced MSN and its their way to attack Google which is one the biggest threat to their dominance. Their worst fear I believe is for Google to make an operating system that would compete with Windows. That's why they are attacking them on their on field.

 I believe Microsoft is a cancer to the computer industry. I needs to be destroyed in other for us to get what we really deserve (no shitty Windows Vista, no stupid docx that aren't compatible with anything, no protected media path, and so on). MS in gaming really isn't as bad as it is in the other fields as it can't use their "Embrace, extend and extinguish" strategy has much but still supporting them is supporting Windows.