Microsoft entered the console market last generation with the Xbox as you all know. They posted respectable sales numbers, ignoring the fact that they knew nothing about how to run the console business model. That said, respectable sales are not the same as good sales.
What the Xbox did manage to do was set the Xbox 360 up for better sales! In the USA the Xbox 360 is now a very viable console. Microsoft also learned the value of regional content in Japan (which resulted in limited, though definitely real increases in success there). What Microsoft failed to learn in time, but have now learned this generation, is the neccesity of casual content. In Europe, the second Xbox has received a very large increase in sales, though this is less significant due to the first consoles rather dismal performance in the EU.
But Microsoft's 360 has done VERY well in the USA and made significant gains in the EU. Whilst Japan sales have been less than stellar, Microsoft is now relevant there, especially in terms of developer support. All in all, with respectable sales in the EU, developer support from Japan, and a strong fanbase in the USA, the Xbox 3 will be in a relatively strong startup position.
Does anyone believe that Microsoft will continue to expand its userbase in the next console generation? Anyone think they will win it? Will they do a Nintendo and go from mediocrity to domination, or do a Sony and go from (relative) domination to the basement?
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