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  • 2 Post By Messerschmitts
  1.    #1  
    About 9 years ago during my freshman year of college (this dates me, I know) a software juggernaut called Microsoft decided to wade into uncharted territory; console video games. Unlike established companies like Sony and Nintendo, gamers did not know anything about Microsoft's ability to make games, and didn't trust it. Microsoft lost substantial money on the first generation Xbox, even selling the console at a loss with the long-term goal of increasing visibility and market share. For a long time, the gaming division of Microsoft lost money and was propped up by other more profitable divisions of the company. At the same time, Sony's gaming division was one of its most profitable.

    However, Microsoft stuck with it depsite the losses. It understood the investment and time it took to get established in a new field. Microsoft realised it was a marathon. Thus, despite losses it continued to pour money into R&D as well as marketing. The Xbox market slowly grew. Microsoft acquired gaming studios (Bungie) to increase their street cred in the gaming world. Then some geniuses came up with XboxLive, and revoluntionised console gaming, putting on a clinic for the old timers Sony and Nintendo who are still trying to catch up but still don't provide an online console gaming experience on par with XboxLive. Today Xbox 360 and the Xbox Live community are going strong, and last I checked I think MS is head to head, or even ahead of Sony's PS III.

    Microsoft endured and invested an entire console generation of financial loss before their gaming division became profitable. HP could have learned a thing or two from them.

    Also I find it interesting that HP is saying the days of the PC are over, that because of Apple, in the future people will no longer have a PC in their homes and will just have an iPad. That is ABSURD. I am not going to play Starcraft II on an frickin iPad. I am not going to replace my desktop with a tablet computer. The profit margins will be thin but people will need PCs.

    Also as a side note I find it interesting that HP was a consumer electronics company now wanting to become a software company whilst Microsoft is a software company that tried to break into consumer electronics (Xbox 360, Zune players, etc.)
    sturgie and clevin like this.
  2. keeb119's Avatar
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    i think microsoft should but hp. to complete your picture. and if hp is putting either the enterprise specific or pc company up for sale, say to microsoft, is the only way this move makes sense.
    samsung i730 - blackberry storm- palm pre plus - samsung omnia - palm pre plus - palm pre 2 - ????

    i refuse to buy anything apple with there asinine standards, especially when theres a perfectly good standard that everybody else is using. bah.
  3. #3  
    This is true. Microsoft introduced the XBOX because of its fear that game consoles would eventually replace PCs. HP purchased Palm because of their fear that tablets and smartphones would replace PCs. Both wanted to establish a place in the industry should it evolve.

    But for HP, something has changed. Looks like they want to get out of the hardware business all together.
  4. Xadion's Avatar
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    I had a long post about the 100$ price drop and how maybe HP was using Microsoft xbox tactic of throwing money at it, to enter into a saturated market (of 2 lol) and it worked in the LONG run, the first xbox started its price at a loss to MS as it discounted it made them less and less but more and more market share for version 2, that's where the money is.

    hp, if you would have held the course got the go and 4g touchpads out along with a Pre 3 states rollout, swung into CES with the touchpad 2, pre 4, veer 2 and a slab all designed by the hp envey people you would have seen your stock skyrocket UP down DOWN like now.

    seriously W the F mr CEO of the NUMBER ONE PC manufacturer... Go software????
  5. samab's Avatar
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    Microsoft also has Bill Gates who is the largest shareholder and he is willing to back Ballmer no matter what happens. Gates is willing to lose a few billion dollars of his own money --- what's Wall Street is going to say.

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