(Business Perspective) Does MS really need Xbox Hardware?

[DonFerrari]

Pemalite said:

Manlytears said:

you didn't read that the second part of what I wrote. I'll summarize:

Microsoft needs to prove that the Xbox is a platform of equal or greater value than Playstation/Nintendo, otherwise it will always be at a disadvantage. They will not be able to do this by being a third party, on the contrary, if they distribute games through the Playstation/Nintendo they will only contribute to strengthening the fame, reputation and mindshare of rivals in detriment of the Xbox brand.
In the "future" where Cloud Gaming is the main form of distribution, Google, Amazon (or other big tech) can partner/buy Playstation or Nintendo and surpass a "Weak Xbox". Microsoft shouldn't take that risk, they need to strengthen the Xbox brand and make it stand out, leaving the console business as a "loser" is a mistake.

So yeah.... putting PS in check, and making Xbox strong is MS's problem.

People are forgetting why the Xbox exists in the first place.

It -was- to keep Sony in check as Microsoft saw home consoles starting to creep into the PC marketplace... Obviously that never materialized the way many feared... And it ended up being Android and iOS that gave Microsoft trouble in the end.

But it's hard to argue the utility of consoles these days as media hubs and internet gateways.

However... Things have changed, Xbox is still needed as Microsoft deploys universal development tools for Xbox and PC so that development on either, benefits both... And Windows needs games to stay relevant against consoles, iOS and Android.

The Xbox is part of an "ecosystem" and it does benefit Microsoft's other business ventures, it is the spearhead for Cloud gaming, it is boosting Windows gaming and technology, it is giving extra users and clicks for Microsoft Edge, it is providing additional exposure to the Windows Store front... And more.

And it even substantially boosts one of Microsoft's biggest money makers... Servers. - Even if they are only used for games.

Xbox is also a competitor which keeps Sony and Nintendo innovating. - Who cares if they have never come first? I don't. Microsoft doesn't.
As long as they can turn a profit and keep the competition flowing... It's frustrating how people are under such an illusion that because a company cannot come first, but still sell 60-80 million devices that they are somehow a "failure". - Which is far from the truth.

I do dispute the "MS doesn't care they are third" I can bet they would like and plan to be first, but yes that is beside the point as really if it profits enough it is acceptable at the moment for leadership while they plan on how to take first place.