Why Did Microsoft Enter The Video Game Space?

Why is Microsoft in the video game space? This question was originally answered on Quora by John Byrd.

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FallenAngel1984148d ago

To spread the influence of Windows into more living rooms because they felt threatened by the rise of PlayStation

Sitdown147d ago

Well you got it half right...

NecrumOddBoy147d ago

I think they jumped into it because they had the financial desire to monopolize the Video Game World the same way they were doing with software across the PC. Microsoft came in with a lot of great ideas and Promises during the first console which I think is one of the best consoles ever made with some of the best games, the original Xbox did have. But with the 360 it was clear that they had malicious intention for only monopolization industry and how they did not at all care about creativity or the concept of artistic expression. Microsoft forced paid online services and timed exclusive content and really degraded the industry and I personally think Microsoft at its peak or is one of the worst things to happen to gaming. I think the Xbox franchise is really hindered by Microsoft as a whole. Their way to corporate

147d ago
Rude-ro147d ago

More to it than “PlayStation”.
Sony was an electronics innovative force that could have threatened and locked out “windows” or how computing can work while also being threatened by other and upcoming software businesses.
They saw the trend and started or tried to attack every version of electronics that had to do with computing and the consumer digital realm.
They were also attacking pc software pirating due to just how bad it was and they did that by approaching it in segments of what home PCs were used for.
Microsoft’s heart and soul is their marketing advertising stronghold. Every screen is a billboard to them and they spend billions is research to control that realm because it is endless in profits.
Cloud computing is just an evelution of this and taking away the necessity to depend on a hardware war to keep control. Get the business world dependent on certain software, and boom.. now Microsoft controls the hardware, removes piracy, increases profit, full control of marketing and advertising that, just like the age old saying... control the media, control the world.

meka2611147d ago Show
Rude-ro147d ago


Ha! No. Windows sucks period, but it was not about “their PCs” it was about how and where they were going with it and who could end up closing Microsoft’s os out per any other software company that decided to try.
And you are right, Microsoft achieved their goal with the ps3 and the cell processor and any partnerships per software developers by commercially attacking Sony in all directions with major ramifications to their hardware manufacturing.

And no, Microsoft wanted nothing to do with gaming in the sense of “money”.. it was protecting their monopoly on the digital world, cut piracy because gaming was huge chunk of it.
But their overall goal is to control and dominate the consumers screens... play ball, and Microsoft will play friendly.

meka2611147d ago Show
Ulf147d ago (Edited 147d ago )

Exactly this. Consoles, and the web as an interface for MS Office replacements, are a threat to Microsoft's bread and butter.

They are in the console space as a defensive posture -- they will not be caught with their pants down, like they were with mobile.

Anyone who thinks they will sell the Xbox division is nuts.. and doesn't grasp Microsoft's actual business, or it's threats, at all.

meka2611147d ago

Again that's just dumb, microsoft dominates the pc market, they have been doing it and will continue to do so. And even if windows goes away, which it won't, their software is used everywhere, from direct x to office, to other programs they make.

rainslacker147d ago

I think they'd drop the hardware if they could get a major player to use their OS, and give them some sort of revenue on the licensing side. MS intention was to have their OS be used by more people, and to prevent Sony, and potentially others from taking over in the consumer space.

However, given how far they've come in the console space, I think it'd take a major player on the level of Sony accepting MS OS to make it happen. Plus, they'd have to consider how much they'd lose on things like XBL....which is something that could be made up with a service like Game Pass, if in this hypothetical, Sony would allow it on their system.

nitus10147d ago

That is one of the many reasons I don't run a Microsoft operating system on my laptop or desktop.

I run Fedora 28 (the latest release) which is a very good distribution, however, I would not recommend this for the novice unless they have some familiarity with filesystem setups (It's actually pretty easy but some people don't like to learn). At least the OS I use does not by default phone home.

The only downside of a Linux distribution is that if you are an avid gamer you are fairly limited as to what games you can play hence if you want the latest PC games then you are stuck with a Microsoft operating system. Other than games I can pretty much do anything or at least find a workaround and except for some specialty software which will cost no matter which OS you use. My total cost software cost to date is $0 and I don't pirate.

Of course, if your work provides a PC for you then you don't have much of a choice of the operating system. 🙄

Fist4achin147d ago

It was an expansion to go from operating sytems and software into a form of entertainment media that has grown to beat hollywood. Videogames have in my opinion beat the majority of movies coming out of hollywood by a long shot. It made sense and gosh did xbox start off great. I dont think they have steered their ship well into the 3rd generation though. They have so much in their treasure chest to pull from and i dont see what is the matter.

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PhoenixUp148d ago

“Anyway, after that point, Microsoft had:

A reasonably successful game console (it lost money, but it didn’t lose that much money, relatively speaking)”

Losing $4 billion isn’t that much?

148d ago
Mr_cheese147d ago

I'm glad they did, the competition has been week needed and because of them we have the online options we do today.

PlayStation through and through but you should always give credit and recognise where others stand iut plus the original box was class!

Cmv38147d ago

We had online options with the dreamcast. Outside of a harddrive in a my knowledge, xbox was the first.... they haven't brought much else to the video games market. They do attempt to push console power relative to the PC market. That's a plus.

rainslacker147d ago

PS2 was designed to take hard drive, it just didn't ship standard with the system, thus ultimately, got practically no support. Hard drives in consoles were inevitable anyhow. Hardly a innovative step on MS part IMO. MS biggest contribution to console gaming was creating an ecosystem that went beyond the console, and redefining the principals of online connectivity through a centralized matchmaking and social service.

annoyedgamer147d ago (Edited 147d ago )

Alot of guys in here won't admit it but the Xbox 360 forced Sony to get their act together in the early days of the PS3.

nitus10147d ago

Is that why Microsoft backed the HD-DVD?

By backing HD-DVD even though they never integrated a player into their XBox360 (they had an external one) Microsoft muddies the waters in the format wars. Yes, the original PS3 was expensive but it was still the cheapest Bluray player at the time and it had inbuilt WiFi, optical 7.1 channel stereo as well as a user swappable hard drive.

Let's not go into the Immersion versus Sony lawsuit of which Microsoft had a hand in.

nowitzki2004147d ago

That is not true lol. 360 had a whole year head start.. thats the only reason they were ahead.

darthv72147d ago

@nitus, did you not know that MS actually backed 'both' BD and HDDVD...? It was Toshiba that offered to make the drive for MS to use an an add-on and they were in talks with another mfg for a BD drive as well but that fell through.

In the end, it is their plug-in they were really supporting that was viable in both formats. Remember... Sony is about hardware (thus their push for DVD and eventually BD) while MS is about software (supporting both HDDVD and BD with their encoding/decoding plug-in).

They got their hand in practically everyone's cookie jar. Even linux

Mr_cheese147d ago

Shame there is so much negativity on N4G lately, especially when points are valid.

Xbox did push online services with Live and because of that we got PSN.

There is no denying that there wasn't online functionality before for consoles but Xbox executed it in a way that couldn't go unnoticed and had to be matched/ built upon.

It's like smartphones before iPhone. iPhone did what had already been done with touchscreen but they presented it in a much better product and because of that success the mobile industry changed.

Competition is good.

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