C.E.S. Interview: Microsoft's Robbie Bach on the 'Strategy Tax'

Within Microsoft, there is a lot of discussion about the "strategy tax," the notion that the company is trying to serve so many different types of customers that it can't make the best products for any of them.

No one knows both sides of this tradeoff more than Robbie Bach, the president of Microsoft's entertainment and devices business. He was able to ignore the strategy tax while building the Xbox game business separately from the rest of Microsoft. But now he runs the company's efforts in cellphones and television, where Microsoft mainly sells software for use by other manufacturers and pay-TV operators.

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