4 ms·

It's very interesting to take this spot-on assessment of the game console industry and compare it to the mobile phone industry. Microsoft and Apple are dominat

by cwilson 14y ago

It's very interesting to take this spot-on assessment of the game console industry and compare it to the mobile phone industry. Microsoft and Apple are dominating in very similar ways when it comes to gaming consoles (Microsoft) and mobile (Apple). Yet Microsoft hasn't been able to replicate this winning strategy with its own phones. It seems to me that if one department at Micrsoft is "killing it", it would be Xbox. Yet that's the last thing anyone talks about.

adventured 14y ago
If there's one division at Microsoft that's killing it, it would be server and tools, which at $5.2 billion (latest Q) in sales is nearly as big as the Windows division now (and within 4 to 8 quarters - as the Windows 8 bumper dies down - will probably surpass it). The $20 billion / year in sales server and tools does, is three times the size of the XBox + Live group.
- ansgri 14y ago
  It isn't fair to compare server products with gaming ones, because server products are bought by people with big money, and the lock-in potential is much bigger. You need much more popular product, and you must be consistently good across versions.
InclinedPlane 14y ago
Microsoft does well when it starts with an advantage and the main issue is avoiding making huge mistakes. In phones MS has been ahead, then utterly disrupted, then made valiant come-from-behind efforts. But the problems they are faced with are different than they're used to. With phones they're fighting against the network effect of competitors. They need to not just be a little better than the competition, they need to be a lot better. Also, look at how much money both MS and Sony spent buying up game studios and exclusive content for their consoles and compare that to the relatively weak outlays in the same vein for mobile content.

4 ms·

It's very interesting to take this spot-on assessment of the game console industry and compare it to the mobile phone industry. Microsoft and Apple are dominat

by cwilson 14y ago

adventured 14y ago
If there's one division at Microsoft that's killing it, it would be server and tools, which at $5.2 billion (latest Q) in sales is nearly as big as the Windows division now (and within 4 to 8 quarters - as the Windows 8 bumper dies down - will probably surpass it). The $20 billion / year in sales server and tools does, is three times the size of the XBox + Live group.
- ansgri 14y ago
  It isn't fair to compare server products with gaming ones, because server products are bought by people with big money, and the lock-in potential is much bigger. You need much more popular product, and you must be consistently good across versions.
InclinedPlane 14y ago
Microsoft does well when it starts with an advantage and the main issue is avoiding making huge mistakes. In phones MS has been ahead, then utterly disrupted, then made valiant come-from-behind efforts. But the problems they are faced with are different than they're used to. With phones they're fighting against the network effect of competitors. They need to not just be a little better than the competition, they need to be a lot better. Also, look at how much money both MS and Sony spent buying up game studios and exclusive content for their consoles and compare that to the relatively weak outlays in the same vein for mobile content.