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fielding88 said:
Soundwave said:

Kutaragi was high, but Microsoft thought this too. That's why they made the XBox, because they (foolishly) thought Playstation was some kind of threat to move into the computer business somehow. 

What Microsoft badly misjudged is their true competetion would come from Apple and Google, whom they were paying no attention to. Today Android is the no.1 OS in the world and MS compeletely missed the boat on smartphones (which Ballmer admits now). Playstation was always a paper tiger, Apple and Google were the real threats. The 100 million that Sony sells in game consoles over 5-6 years is laughably small potatoes compared to iPhone or Samsung Galaxy shipments. 

To add to that, the article mentions how Microsoft was looking for the Google threat, but in the desktop space and not the mobile space. They were looking at the raptor in front of them and missed the one to the side. 
 

to be fair it basically falls on the fact that Microsoft has never been a gaming company, but a software company

 

the fact that they felt it was so necessary to gain a presence in the gaming sector is just strange, considering their bread and butter from inception till now has been their software suites and OS (Windows)

I think around 2000 Microsoft was just at the point of being so large they were obsessed with trying to monopolize all computer software related things

it is kind of hilarious how poorly Microsoft has done at getting a piece of the pie in the mobile OS market considering they have had such an advantage. Even to this day Microsoft probably still has the strongest latch into the most homes/families- Windows is practically what people identify with computers and the Apple OS for home computing still is not close in terms of usage/popularity

but, yeah, odd MIcrosoft was so focused on the consoles in the early 2000s when mobile phones were already on a massive rise. Talk about looking the wrong direction when it was quite obvious where things were going