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For six years, the Internet Nexus served as my technology blog, but I've since started blogging at the SuperSite Blog instead. If you're looking for the blog, please head there. --Paul
Friday, May 04, 2007
Microsoft Poised to Rule Entertainment, Devices WorldThis might come as a shock to the rest of the world (or what I call "the real world"), since there it seems like Apple, not Microsoft, is pretty much dominating. But the exciting Robbie Bach of Microsoft has something to say about that, thank you very much:
There are ways to make money on an Xbox. Generally it's not on the hardware itself; we'll probably be gross margin neutral on that over the life cycle of the product and try to break even on that.Anyone else want a courtesy flush with their music experience? Geesh. I just love marketing talk.
[On communities,] Zune today probably isn't a great example in the sense that community is part of the process for Zune that we believe in, and we haven't...really created the community environment.Welcome to the social.
[Regarding consumer electronics,] From a balanced perspective there are categories where we're not going to do devices. We don't do phones. We don't have plans to do phones ... There are other places like Zune where because of Apple's success, and frankly because of the uneven experience we were able to deliver just by being the platform provider, we decided we had to do it ourselves. I have no desire to do hardware ... Xbox is the hardest piece of consumer electronics hardware to produce in the world, no debate. It just taxes way more of anything you could possibly want to do. Zune technically speaking is dramatically easier. Almost any other device you could describe to me would be dramatically easier than producing what we did in Xbox.Microsoft's approach to this stuff is so typical, it's hard to remember that these are the guys who were supposed to be so different from the rest of the company. It's OK to have a vision, I guess. But Microsoft thinks in terms of platforms, not great products. Apple does it the reverse way: Ship something drool-worthy and watch people snatch it up. Do it again. And again. Suddenly, there's a platform sitting there. Microsoft spends so much time plotting platforms that by the time the vision is complete, the world has already moved on. The old way of doing things doesn't work any more. Isn't that why they copied Apple with the Zune in the first place?Permalink ]