Will Microsoft Take Over the Gaming World?
You bet! That’s why Microsoft is still pushing for Xbox 360 after losing $4 billion since the launch of Xbox 4 years ago. And Bill Gates is preparing to lose even more when Xbox 360 releases in Nov. “We are thinking long term.” Said Stephen McGill, head of UK marketing. Translation? Long term plan is to kill Sony, kill EA, kill Nintendo so everybody plays Microsoft games on Xbox 1200 in the long run.
But this time, it’s not going to be as easy as crushing Netscape or driving Apple out of the door. They first have to worry about Sony’s consoles. Everyone knows that game software is where the money is. To take over the game industry, Microsoft has to do what they did in the browser war with Netscape by leveraging the base, OS at that time, but console base this time. A game console is equivalent to the Operating System. Without taking over the base install, you can forget about game software monopoly. As far as the market concerns, Sony still holds majority of the shares. According to DFC’s forecast, Playstation 3 may be able to grab 53% market share which leaves Nintendo and Microsoft to grab a quarter each.
Sony knows very well where they stand. According to this month’s official Playstation magazine, it roughly takes $500 to manufacture a Playstation3 hardware but the retail price is set to $399. Merrill Lynch Japan has predicated a 1.18 billion loss for Sony after the first year launch. Sony might lose even more if Microsoft decides to cut Xbox 360’s price when Playstation3 hits the store shelves. So the budget gamers might be able to get a deal if a few month waiting doesn’t sound too terrible to bear.
Assuming Microsoft is able to take care of the Playstation problem, they still have to worry about EA and Nintendo, currently the two top game publishers in console game sector. It’s going to be tricky to hijack Mario and Madden NFL, Mr. Gates!
With a deep pocket and the determination to win the billion dollar interactive entertainment market, it’s anyone’s guess whether Microsoft is able to repeat the history and win this video game war.
Nosaj said,
September 28, 2005 @ 10:31 am
I hope no one wins!!! In the video game market space, what do we (the consumer) want most? Radical innovation, bleeding edge technology (that actually works), and huge content selections (games) at an affordable price. As soon as one company takes a strangle-hold dominant position in the market, our precious gaming industry will:
1) Move from a customer market-share gaining strategy to a $$$ strategy
2) Pressure for innovation will decrease as there’s only one major supplier for content
3) Anti-Competitive licensing (ALREADY IN PLACE) will explode so that no one can even develop content for the console that wins without paying a Huge fee to the vendor.
4) Delivery of new Console technology (which is currently ahead of the manufacturing price curve) will elongate and move to a profitable position which means we get less advanced technology over time.
5) We’ll have to find yet another escapism. TV has failed us - look at the marketing and ‘CRAP’ they put on the air, Hollywood is in fast decline with the content they create (and - notice the theatre complexes adding more and more product commercials to the beginning previews?).
Total market value of the Video gaming industry can only go DOWN with 1 overwhelmingly dominate player…
Sony - Nintendo - Microsoft - Others? Fight it out for us! Don’t try to steal the market with Anti-Competitive strategies - win us over. And for God sakes, keep the IP lawsuits to a minimum.
Yuna said,
September 28, 2005 @ 10:43 am
As long as these 3 players are sharing a good portion of the console market, the third party will keep writing games for all three!! And I am hoping this will continue to be the trend.
But I doubt Microsoft will ever publish Halo on other two systems.. same deal for Sony’s Final fantasy series and Nintendo’s Mario. These games are the only “grabbing market share” weapon they have.
So as long as EA, Ubisoft, etc.. are not biased when it comes to console releases, we should be alright. But imagine this: one day XBOX has 80% market, Sony has 15 and Nintendo has 5, the little cube WILL surfer and Mario will play tennis alone… Sony then would have to rely on the loyality of the Japanese game makers to keep it alive.. So let’s hope the 50-26-24 picture stays there for a while.
Yuna said,
September 28, 2005 @ 2:11 pm
And by the way… half hour after I posted this on another site, I got visits from Microsoft Corp..
Nosaj said,
September 29, 2005 @ 8:31 am
Hmm… Wonder if it was someone reading your page, or thier webcrawler finding reference to ‘Microsoft’ on the front-page and alerting someone to read your article to make sure you are not violating one of their lesser-known EULA rules: you can’t critique certain products in a public forum. Remember - you gave away your rights just by opening the shrink-wrap!
Yuna said,
September 29, 2005 @ 8:52 am
I left a link there.. so that’s probably how Microsoft traces back to this site.
I thought we have freedom of speech, and this is a not a secret that they want to squash everybody else… I can get sued?
Nosaj said,
September 29, 2005 @ 9:59 am
Only if you had provided definitive critical comments about a specific product that has this EULA clause without first gaining approval from Microsoft. Then they could sue you..
Yuna said,
September 29, 2005 @ 3:20 pm
Where is freedom of speech… damn it!
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