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6/29/2025, 7:25:57 PM
>>713989532
>lmao. Microsoft entered the console wars because Playstation was taking over the living room with PS1-PS2, their entire goal was to beat Sony and Nintendo but they couldn't
They were afraid the living room consoles were going to displace home computers but that eventuality never came to pass. Instead, smartphones displaced home computers. It's more accurate to say Microsoft was so concerned with this little gaming fad, that Apple and Google ambushed them and locked Microsoft out of the smartphone platform.
They were considering divesting from gaming/Xbox like a decade ago when it became apparent gaming consoles were still just gaming consoles and they missed the boat on the actual paradigm shift. Phil convinced them this would be a mistake pointing out the growth in entertainment/streaming and noting that Xbox represented a significant foothold in that space that all the other major tech companies lacked.
While gaming cloud/streaming hasn't taken off, there also hasn't been a new paradigm shift so Xbox is currently in a holding position. If Microsoft itself were doing poorly, then Xbox might be in trouble as their parent company tries to reduce their liabilities. But instead Microsoft is riding the AI boom and doing great so it makes more sense for them to take an aggressive posturing and keep their options open. Position Xbox for profitability should they ever need to fallback on core gaming (as is the case with Sony currently floundering everywhere outside of PlayStation), but constantly explore new avenues of growth to maximize their chance of being the first to a new paradigm.
>lmao. Microsoft entered the console wars because Playstation was taking over the living room with PS1-PS2, their entire goal was to beat Sony and Nintendo but they couldn't
They were afraid the living room consoles were going to displace home computers but that eventuality never came to pass. Instead, smartphones displaced home computers. It's more accurate to say Microsoft was so concerned with this little gaming fad, that Apple and Google ambushed them and locked Microsoft out of the smartphone platform.
They were considering divesting from gaming/Xbox like a decade ago when it became apparent gaming consoles were still just gaming consoles and they missed the boat on the actual paradigm shift. Phil convinced them this would be a mistake pointing out the growth in entertainment/streaming and noting that Xbox represented a significant foothold in that space that all the other major tech companies lacked.
While gaming cloud/streaming hasn't taken off, there also hasn't been a new paradigm shift so Xbox is currently in a holding position. If Microsoft itself were doing poorly, then Xbox might be in trouble as their parent company tries to reduce their liabilities. But instead Microsoft is riding the AI boom and doing great so it makes more sense for them to take an aggressive posturing and keep their options open. Position Xbox for profitability should they ever need to fallback on core gaming (as is the case with Sony currently floundering everywhere outside of PlayStation), but constantly explore new avenues of growth to maximize their chance of being the first to a new paradigm.
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