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Microsoft has no intentions of giving up on the console market

Dean Takahashi of A+E Interactive recently had the chance to sit down and chat with Microsoft's COO, Kevin Turner. Turner, who has previously worked through the ranks of Wal-Mart and was once the president of Sam's Club, has a lot on his plate as of now at Microsoft and oversees products ranging from Windows Vista to the XBOX 360.

In the interview, Turner discusses a number of issues including Microsoft's broad scope for its "digital lifestyle" initiative which includes products like the XBOX 360 and Zune as well the company's current hemorrhaging of money in the games division:

q: What do you think as a business person. These guys started up the business. They anticipated losing money. They did lose billions in the first round. When you think of those numbers, it's so high stakes. You either come out of it like Sony, or come out of it sinking billions into a crazy business. For a business, that can be very scary.

a: In those four pillars, it's important for us to have multiple pillars for growth. We think we are uniquely positioned to be able to invest what it takes to be successful in areas like entertainment and gaming. People forget. Steve reminds me it to seven, eight, or nine years before Windows was profitable. People forget that. We're in it for the long term. This is a company committed to invest for the long term. We would like to make money quickly. But that's not what changes the world. That's not what innovation allows you to do. Regardless of what you look at, it takes a lot of years. This is a company that is committed to sticking to things that we believe in. Certainly, this is a space we believe in.

Microsoft has a lot invested in the XBOX brand and it has a lot of cash on hand to drag it along for quite some time. The original XBOX was a moderate sales success (despite the large monetary losses for Microsoft), while the current XBOX 360 is coming slower out of the gate than its predecessor. Whether that's because customers are waiting to see what the PlayStation 3 offers or because the XBOX 360 doesn't yet have that "killer app" remains to be seen. Regardless, the next two months should be an interesting time for Microsoft as we should see a number of new peripherals released for the XBOX 360 including the Wireless Racing Wheel and the external HD DVD drive. And there's also that tiny little game that no one's ever heard of: Gears of War or something like that…



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By DaveSylvia on 10/10/2006 2:33:26 PM , Rating: 2
A killer game doesn't necessarily require that a game be exclusive to one system for eternity. Just look at GTA3 when it first came out for PS2. Yes, at the time it was exclusive, just like how Halo was exclusive to Xbox when it first came out. That game definitely is considered a killer game or app because of the fact that many people purchased PS2 hardware just to play it. Now that very same game is out for the Xbox and PC and this suddenly makes it not a killer app?

Final Fantasy 7 was a killer app for the PSX but that was also released on the PC (albeit it was a terrible port). Likewise, even though Halo was released (TWO YEARS LATER) for the PC, this doesn't change the fact that it drove people to purchase Xbox hardware. This is the main poing: a killer game or app is a product that motivates the purchase of existing hardware. It doesn't matter if it becomes available elsewere.

P.S. Oblivion isn't a killer game because it has't raised people's desire to purchase an Xbox360. The fact that its on the PC too is irrelevant.


By encryptkeeper on 10/10/2006 3:28:06 PM , Rating: 2
Then the end conclusion is there is no reason to buy a 360 at all.


By NotAok on 10/10/2006 3:35:39 PM , Rating: 2
By that logic I'm assuming you feel the same way towards the PS3 and PC gaming... They're all relative, each platform receives games that are exclusive and games that end up elsewhere. So if you feel the 360 is useless then I see no reason why you would enjoy any other system.


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