Microsoft plans slow, steady takeover? Xbox 360 declared 'stepping stone'

When the original Xbox first debuted in the previous generation, it accomplished two things -- it introduced a viable threat to Sony's dominance in the home console market and it paved the way for greater success in generations to come. It was almost a platform for Microsoft to enter the fray rather than something perceived as a PS2-beater. It was a strategy that worked and apparently, a strategy that's still in place.

It's certainly not uncommon for Microsoft to play a long game (just look at the way it handles Windows) and it certainly worked last time around. Both Sony and now Microsoft have promised that this is going to be a lengthy war -- who's going to stick it out?

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ReBurn4488d ago

Anyone who thinks that Microsoft is going to tuck its tail between its legs and run home if the PS3 surpasses it in this generation has another thing coming. First, Microsoft doesn't enter a market to lose. Second, Microsoft knows how much money there is to be made in the entertainment market in the future. Things like Xbox and Zune are loss-leaders to establish Microsoft as an entertainment provider in the future.

This generation is just another battle in the larger war for future consumer dollars. If Microsoft just breaks even when it is all said and done they have won because they've captured a piece of the market. There are people who are drinking the Kool-aid that are not going back to Apple, Sony and Nintendo in the future.

Me? I'm going to buy what I like, so I'll continue to own more than one console. But many consumers are fiercely loyal.

Rooftrellen4488d ago

MS knows how to make a monopoly, and it's not though a quick battle, but a war where market share is slowly taken until the compitition falls under its weight with a small base.

However, MS has their work cut out for them this time, because that strategy doesn't work as well with video games. You need to strike fast in order to get an install base that will attract developers. A 20% market share and slowly grows doesn't work too well with the 360, because at a 20% market share, it won't get the games.

It can still work for them, but this isn't going to be an easy battle for them by any means. Nintendo and Sony both have experiance in the industry, while MS is just a newborn. Also, its hard to keep a lead in this industry, and we need look no further than Nintendo and Sony to see this, as well.

Can MS get on top of the video game industry by taking small slow steps, and can it maintain the lead where it appears no one will ever have lasted more than 2 gens in the lead, going into the next one? It could happen, but even with those loyal consumers, and even with that gold mine staring at them, I'm not so sure MS can pull it off, but only time will tell.

QuackPot4488d ago (Edited 4488d ago )

Julius Caesar. Of course Microsft is going to keep trying until they either "TAKEOVER" or the losses are just too much.

Where's the common sense here folks?

Microsoft IS NOT in the console market for COMPETITION but DOMINATION-MONOPOLIZATION.

Do some research people and look at Microsoft's business practises over the last 20 years with their cash-cow/Monopoly Windows. Then you'll see what your beloved Microsoft truly thinks of competition.

There was ABSOLUTELY no need for Microsoft to enter the console industry except for their own greed.

Millions were happy with the Ps1
Millions were happy with the Ps2
Millions are happy with the Ps3

Sony is a highly respected brand manufacturer - well kown to provide quality products. Sony is also a company that is routinely in COMPETITON with other respected hardware manufacturers. Can this be said of Microsoft?

Stop being like sheep being lead to the slaughter and open your eyes.

Remember: if the Xbox never existed Halo, Gears, Bioshock etc will likely now be on the Ps3....and millions of happy gamers. Microsoft would have made massive profits with their game IPs on the Playstations. But they obviously weren't happy with that. They wanted more.

Trust me. You don't want Microsoft to "TAKEOVER" don't want to give MS another cash-cow and the power to DICTATE.

Rooftrellen4488d ago

Your right, but the question isn't is it good or not, because a monopoly is never a good thing. I really hope that even MS fanboys can see that.

But can they actually take over with a slow creeping strategy when the market is based so heavily on early sales.

Imagine next gen, if the 360 is the major underdog, gets no developers, and ends up being a success out of the gates, like Nintendo has done this gen? Well, if they keep with their high-powered console, they have to wait half their console's life cycle to get games, and its too late to save the generation, after the loyal have gotten the console.

More likely, they go into next gen as the underdog, though, they don't sell any better than this gen, and they're dead in the water. They may be able to slowly creep out Sony, but the losses would likely be unacceptable to shareholders, and Nintendo always makes money from day one, and would be nearly impossible to force out of the home console market.

I don't think we need to worry about MS domination. Could it happen? Anything is possible, but a creeping strategy just isn't likely to work in the video game industry.

RadientFlux4488d ago

@QuackPot :

History has proven that more competition means more and better games. If any one console maker gains a monopoly in the market then expect to see the same situation that happened back during the NES days. Where developers had to deal with censorship and large fees.

Personally I am happy MS has entered the console race. Thanks to MS and their more PC development approach we are getting more and more PC developers working on console games and console gaming market gets a little stronger.

Heepspo4487d ago

Just because they have more $$$ than MS doesn't mean they are a monopoly.
How many times has MS been sued by people accusing them of monopolizing a specific market?
MS has proven that they ARE a monopoly... common sense.
How is Sony a monopoly?
Do you know what monopoly means?

+ Show (2) more repliesLast reply 4487d ago
cloud3604488d ago (Edited 4488d ago )

Microsft stink of money.

Sony smell of power & dominance.


They can just about put their hands in any industry and be labled succesful

DZNetworks4488d ago

Money IS power. If you dont know that then you are in denial.

Wii60_FTW4488d ago

sony smells of dog sh1t and arrogance.

ben hates you4488d ago (Edited 4488d ago )

many of you don't know that Sony has more money than Microsoft, both are large dirty monopolies

codeazrael4487d ago

A hardware company having more cash than a software company that has a monopoly on the PC market with Windows........and other programs????? How do you figure that one??? You must've bumped your head!

+ Show (1) more replyLast reply 4487d ago
Bloodmask4488d ago (Edited 4488d ago )

Last gen Xbox was late to the market and came in second. This generation it came out of the gates first and is ahead of PS3 in "total" install base.

Basicly this generation the 360 is in the same place the PS2 was last generation. Larger install base, more third party support, lead platform for "most" third party games. It will also be the first or second(Could be the Wii) to reach a mass market $199 price tag. That is the price that PS2 sales really took off, it will most likely be the same for 360.

Overall this generation the Wii and 360 will most likely be neck and neck. 360 catering to most "hardcore gamers" and some casuals. And Wii catering to "most casuals" and some hardcore.

That is the problem with PS3. It is having a hard time moving consoles bc of "price" and "games catalogue." 360 and Wii are catering to most of the gaming community. PS3 hasn't found it's spot to fit.

SofaKingReetodded4488d ago

the only problem with that is that, SONY STILL SUPPORTS THE PS2.
It is actually a moneymaker for them, where is xbox1?? that's right fanboy in the console scrapheap. MS lost a boatload of money on the first console and thing are no different this time around. In fact this it's more dramatic because last time they didn't have a massive failure problem that was biting $1 billions chunks at a time out of any profit they EVER hoped to make with this franchise.

Now you have games starting to show severe limitations on the 360 and this console's lifespan will be so short that it may aswell have been a n abortion. oh wait, it

personally I don't see how MS can keep justifying what is already climbing to over $20 billion that has been lost on xbox that they will likely never makeback. That's gotta have their shareholder more nervous than a toothless midget hore at a fellatio convention.

Proxy4488d ago (Edited 4488d ago )

PS2/XBox has reversed this gen.

PS2 - Less powerful, more units sold.
XBox - More powerful, less units sold.

That was last gen, now lets look at a possible (and maybe probable) outcome of this generation:

PS3 - Most powerful (by a little), fewest units sold (by a little).
XBox 360 - Second most powerful, second most units sold.
Wii - Least powerful (by far), most units sold (by far).

This trend of "if we want to make money, we just need to avoid inovative technology" doesn't make me happy. This is a small reason I bought the PS3, to support new technologies, and possibly better technologies. Also, it doesn't take more than a few really good games to keep me happy, and I'm 100% certain I'll feel I've goten $600 worth out of my PS3 when the end comes.

Real Gambler4488d ago (Edited 4488d ago )

I believe the Wii is already ahead as far as install base. And it took them half the time to reach that point and their install base is only growing from there.
The 360 is still not making money, but the Wii has been since it was released. The only reason they have not lowered the price yet, is the fact that they cannot cope with the demand. Right now, they could lower their price at $199 and likely still make money, but why since they cannot make them fast enough. Microsoft is currently loosing money on each 360 and would only loose more if they do so. And if they do, then watch the money making Wii going down the next week (and still not loosing money)
Also, currently, third party support is surely going where the money is, and moving toward the Wii. Since games take a long time to make, you'll only see those games coming out in many months from now. First time Nintendo is getting third party love. Should give you a clue : )

Now back to the subject: Microsoft is in the console business because Home entertainement is the future. But trust me, they would rather have everybody using Home Theatre PCs than consoles. They make most of their money selling operating system. Vista is currently geared toward home entertainment. For them, selling hardware is a pain in the you know what... Even more since they found out that it's really hard to make good hardware, while you can simply patch all your mistakes in your O.S. and it doesn't cost you a billion dollar.

The only reason they went into the console business is to prevent others to become the ultimate Home Entertainement unit in everybody's living room. Trust me, if Home PC ever become popular, Microsoft will withdraw from the console business in seconds.

Microsoft doesn't manufacture PC because there's too much competition. They don't like competition, they like control. Currently, they control the O.S. market. When they saw consoles becoming more and more home entertainement unit, they jumped in, not to get a share of the pot, but basically, to prevent others to steal the home entertainment shelf in everybody's house. They could do it because they can loose tons of money and yet show a decent balance sheet to their investors.

It was a smart move for them, not for us though. If home theater PC ever pick up any speed, they will drop of the console (hardware) business. If it doesn't, then expect the 360 to be replaced by another attempt soon. Having so much money, they had absolutely no problems whatsoever killing the original Xbox. They won't have any problems killing the 360 as well if the PS3 pick up any speed or if the Wii install base keep growing up. They are there to control this market or kill it, and they have the money to do it.

I personally would not want to live in a world where there's only one game console manufacturer. Competition is the best for us. If the only one left would be the one that release patches for it's operating system on a daily basis, the console business would be scary. Let's release the stuff, and our users will be the guinea pigs. Then we will fix it. Sad.

Best world would be if all three consoles would be there to stay. Competition bring the best of them. Sadly, it's not in Microsoft plans and gamers will pay dearly for that. The 720 is likely ready to be released. And if that doesn't work, the 1440 is likely already on the drawing board.

Trust me, Microsoft is not spending billions of dollars to please gamers. They do it to control a market that was getting away from them.

wageslave4488d ago

"Trust me, Microsoft is not spending billions of dollars to please gamers. They do it to control a market that was getting away from them."

PS3 and Xbox 360 are both in the Home Entertainment Center business. More than games. We know this, during the last gen, there was plenty of talk of this "what the next gen will bring", and one of the tops was TV, Music, Movies and Always on entertainment device.

Your right about that.

But the part you have quoted I believe is inaccurate. Microsoft is no different than Sony (or Nintendo) they spend money to make money. They are going to do (as Sony & Nintendo will) all they can to make their product compelling to sell more units of hardware and software and "Entertainment units".

There is no reason to suggest, as you seem to here, that somehow Sony is the video game industry's magnanimous pal, just out to make you "happy".

Ive never been a fan of Sony -- I did own a few PS2s though, and never owned a Xbox. I am *not* a fan of their aggressive RIAA / MPAA behaviour. I am *not* a fan of their constantly pushing proprietary formats, forms-factors and their resistence to inter-operation.

As a result, I know that Xbox 360 is going to be vastly better connected with Windows which will extend the ability for 3rd parties to interoperate with it (like, TVersity for instance).

I dont want to be trapped into a Media Center Box from a company that is well known to be anti-customer freedom.

I dont want my media purchases to be stuck on a console. I want them to be portable and future-proof by staying in on my PC. The console is just a "playback device" for the media stored elsewhere.

I dont want non-extensible and closed devices being a black box in total control of either Sony -or- Microsoft. But with the latter, I know that my PC will always interoperate and provide services to my Console that will permit me my "freedom".

Sony is notorious for being controlling.

Proxy4488d ago

I know, when they allowed me to use any bluetooth headset I wanted and did not force me to buy theirs, I began to see how controling they were. Then, they let me use any keyboard and mouse. Next, they allowed me to install Linux on my PS3 which I can use for endless reasons. The final straw was then they did not force me to buy their special hard drive (which is really just like any other), but instead allowed me to just slap in any hard drive I want. For example, I wanted an updated hard drive, and I found a hard drive from a brand I liked at a really good price, but it wasn't a Sony brand or a Sony store, and THEY JUST LET ME USE IT LIKE IT'S NO PROBLEM AT ALL. [/sacasm]

Controling isn't the word I would chose.

Sorry, but I just couldn't ignore the irony here...

vaan4487d ago

"Sony is notorious for being controlling."
I know, when they allowed me to use any bluetooth headset I wanted and did not force me to buy theirs, I began to see how controling they were. Then, they let me use any keyboard and mouse. Next, they allowed me to install Linux on my PS3 which I can use for endless reasons. The final straw was then they did not force me to buy their special hard drive (which is really just like any other), but instead allowed me to just slap in any hard drive I want. For example, I wanted an updated hard drive, and I found a hard drive from a brand I liked at a really good price, but it wasn't a Sony brand or a Sony store, and THEY JUST LET ME USE IT LIKE IT'S NO PROBLEM AT ALL. [/sacasm]

BUBBLES FOR YOU SIR! Socked it to sh1tty ass, I mean BloodMask!

+ Show (3) more repliesLast reply 4487d ago
eagle214488d ago

don't let halo 3's expected success in the present and coming weeks fool you. 10's of millons of gamers could care less. Sony and MS have 6 years of work to do. The future is anyone's win.

SofaKingReetodded4488d ago (Edited 4488d ago )

are a matter of public record and ALLLLLL OVER the internet, what are we your personal secretaries? look it up yourself you lazy douche.

lol damn this site is buggy, this response is for the genius below ooog funk or whatever.

ReBurn4488d ago

By 6 years of work are you implying that the PS3 is going to set the standard for the length of this generation? Because if Microsoft releases a more powerful box in another three or four years it could put Sony at a disadvantage with their expected 10 year lifecycle. Sony had the advantage with the PS2 because they were the biggest kid on the block last time around. But expecting to be able to do that again could ultimately be a problem for them.

I think that you are going to see Microsoft and Nintendo throw more powerful stuff out there before we hit that 10 year mark and Sony is going to have to react.

Rooftrellen4488d ago

MS has made it sound a little like a grudge match with how long the 360 can go compared to the PS3, so who knows what MS might do.

However, there should be little doubt that Nintendo will bring out a new console in 2011, keeping with their 5 year lifecycles.

However, assuming Nintendo does that, and if MS does, the real question is who is that an advantage to? Sony would already have a nice install base, but the technology would likely be exposed as not being as future proof as some people hope.

it's interesting that even with how powerful consoles are, we can already look just a few years ahead and wonder if we'll see one that will force Sony to react, even with as powerful as the PS3 is. Technology moves at an amazing speed.

OOG FunK4488d ago

I like how some of you guys pull numbers out your A$$. Sry I didnt know you were in the MS finance department. Next time people post jeez post the damn facts not numbers that you can jus toss up.

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