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Why Did Microsoft Enter The Video Game Space?

Why is Microsoft in the video game space? This question was originally answered on Quora by John Byrd.

FallenAngel19842891d ago

To spread the influence of Windows into more living rooms because they felt threatened by the rise of PlayStation

Sitdown2891d ago

Well you got it half right...

NecrumOddBoy2891d ago

I think they jumped into it because they had the financial desire to monopolize the Video Game World the same way they were doing with software across the PC. Microsoft came in with a lot of great ideas and Promises during the first console which I think is one of the best consoles ever made with some of the best games, the original Xbox did have. But with the 360 it was clear that they had malicious intention for only monopolization industry and how they did not at all care about creativity or the concept of artistic expression. Microsoft forced paid online services and timed exclusive content and really degraded the industry and I personally think Microsoft at its peak or is one of the worst things to happen to gaming. I think the Xbox franchise is really hindered by Microsoft as a whole. Their way to corporate

2890d ago
Rude-ro2891d ago

More to it than “PlayStation”.
Sony was an electronics innovative force that could have threatened and locked out “windows” or how computing can work while also being threatened by other and upcoming software businesses.
They saw the trend and started or tried to attack every version of electronics that had to do with computing and the consumer digital realm.
They were also attacking pc software pirating due to just how bad it was and they did that by approaching it in segments of what home PCs were used for.
Microsoft’s heart and soul is their marketing advertising stronghold. Every screen is a billboard to them and they spend billions is research to control that realm because it is endless in profits.
Cloud computing is just an evelution of this and taking away the necessity to depend on a hardware war to keep control. Get the business world dependent on certain software, and boom.. now Microsoft controls the hardware, removes piracy, increases profit, full control of marketing and advertising that, just like the age old saying... control the media, control the world.

meka26112891d ago Show
Rude-ro2891d ago

@meka2611

Ha! No. Windows sucks period, but it was not about “their PCs” it was about how and where they were going with it and who could end up closing Microsoft’s os out per any other software company that decided to try.
And you are right, Microsoft achieved their goal with the ps3 and the cell processor and any partnerships per software developers by commercially attacking Sony in all directions with major ramifications to their hardware manufacturing.

And no, Microsoft wanted nothing to do with gaming in the sense of “money”.. it was protecting their monopoly on the digital world, cut piracy because gaming was huge chunk of it.
But their overall goal is to control and dominate the consumers screens... play ball, and Microsoft will play friendly.

meka26112891d ago Show
Ulf2891d ago (Edited 2891d ago )

Exactly this. Consoles, and the web as an interface for MS Office replacements, are a threat to Microsoft's bread and butter.

They are in the console space as a defensive posture -- they will not be caught with their pants down, like they were with mobile.

Anyone who thinks they will sell the Xbox division is nuts.. and doesn't grasp Microsoft's actual business, or it's threats, at all.

meka26112891d ago

Again that's just dumb, microsoft dominates the pc market, they have been doing it and will continue to do so. And even if windows goes away, which it won't, their software is used everywhere, from direct x to office, to other programs they make.

rainslacker2891d ago

I think they'd drop the hardware if they could get a major player to use their OS, and give them some sort of revenue on the licensing side. MS intention was to have their OS be used by more people, and to prevent Sony, and potentially others from taking over in the consumer space.

However, given how far they've come in the console space, I think it'd take a major player on the level of Sony accepting MS OS to make it happen. Plus, they'd have to consider how much they'd lose on things like XBL....which is something that could be made up with a service like Game Pass, if in this hypothetical, Sony would allow it on their system.

nitus102891d ago

That is one of the many reasons I don't run a Microsoft operating system on my laptop or desktop.

I run Fedora 28 (the latest release) which is a very good distribution, however, I would not recommend this for the novice unless they have some familiarity with filesystem setups (It's actually pretty easy but some people don't like to learn). At least the OS I use does not by default phone home.

The only downside of a Linux distribution is that if you are an avid gamer you are fairly limited as to what games you can play hence if you want the latest PC games then you are stuck with a Microsoft operating system. Other than games I can pretty much do anything or at least find a workaround and except for some specialty software which will cost no matter which OS you use. My total cost software cost to date is $0 and I don't pirate.

Of course, if your work provides a PC for you then you don't have much of a choice of the operating system. 🙄

Fist4achin2890d ago

It was an expansion to go from operating sytems and software into a form of entertainment media that has grown to beat hollywood. Videogames have in my opinion beat the majority of movies coming out of hollywood by a long shot. It made sense and gosh did xbox start off great. I dont think they have steered their ship well into the 3rd generation though. They have so much in their treasure chest to pull from and i dont see what is the matter.

+ Show (2) more repliesLast reply 2890d ago
PhoenixUp2891d ago

“Anyway, after that point, Microsoft had:

A reasonably successful game console (it lost money, but it didn’t lose that much money, relatively speaking)”

Losing $4 billion isn’t that much?

2891d ago
Mr_cheese2891d ago

I'm glad they did, the competition has been week needed and because of them we have the online options we do today.

PlayStation through and through but you should always give credit and recognise where others stand iut plus the original box was class!

Cmv382891d ago

We had online options with the dreamcast. Outside of a harddrive in a console...to my knowledge, xbox was the first.... they haven't brought much else to the video games market. They do attempt to push console power relative to the PC market. That's a plus.

rainslacker2891d ago

PS2 was designed to take hard drive, it just didn't ship standard with the system, thus ultimately, got practically no support. Hard drives in consoles were inevitable anyhow. Hardly a innovative step on MS part IMO. MS biggest contribution to console gaming was creating an ecosystem that went beyond the console, and redefining the principals of online connectivity through a centralized matchmaking and social service.

annoyedgamer2891d ago (Edited 2891d ago )

Alot of guys in here won't admit it but the Xbox 360 forced Sony to get their act together in the early days of the PS3.

nitus102891d ago

Is that why Microsoft backed the HD-DVD?

By backing HD-DVD even though they never integrated a player into their XBox360 (they had an external one) Microsoft muddies the waters in the format wars. Yes, the original PS3 was expensive but it was still the cheapest Bluray player at the time and it had inbuilt WiFi, optical 7.1 channel stereo as well as a user swappable hard drive.

Let's not go into the Immersion versus Sony lawsuit https://en.wikipedia.org/wi... of which Microsoft had a hand in.

nowitzki20042890d ago

That is not true lol. 360 had a whole year head start.. thats the only reason they were ahead.

darthv722890d ago

@nitus, did you not know that MS actually backed 'both' BD and HDDVD...? It was Toshiba that offered to make the drive for MS to use an an add-on and they were in talks with another mfg for a BD drive as well but that fell through.

In the end, it is their plug-in they were really supporting that was viable in both formats. Remember... Sony is about hardware (thus their push for DVD and eventually BD) while MS is about software (supporting both HDDVD and BD with their encoding/decoding plug-in).

They got their hand in practically everyone's cookie jar. Even linux

Mr_cheese2890d ago

Shame there is so much negativity on N4G lately, especially when points are valid.

Xbox did push online services with Live and because of that we got PSN.

There is no denying that there wasn't online functionality before for consoles but Xbox executed it in a way that couldn't go unnoticed and had to be matched/ built upon.

It's like smartphones before iPhone. iPhone did what had already been done with touchscreen but they presented it in a much better product and because of that success the mobile industry changed.

Competition is good.

Show all comments (37)
70°

Microsoft Gaming Revenue Drops 7% Year-on-Year, Content and Services Down 5%, Xbox Hardware Down 33%

Microsoft announced its financial results for Q3 of fiscal year 2026, including an update on its gaming Xbox business and more.

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Jin_Sakai49d ago (Edited 49d ago )

Not looking good. Hopefully Asha Sharma is able to turn Phil’s disaster around.

dveio48d ago

To me it's still quite remarkable how they can cash-in 5.3bn in revenue in a single quarter, since their hardware is basically dead.

Jingsing48d ago

The stock mark is what makes Microsoft remarkable, They have convinced every institutional and retail investor to just keep piling money into them. Like many big tech giants they are just a big growing pyramid scheme. As long as people keep dropping money into ETF's that cover the market Microsoft will always be liquid. At the same time it is completely stifling innovation and competition. People need to start being more discreet in how they invest their money as it's killing the system.

Tanktopmaster9248d ago

Once they re-evaluate exclusive all will be fine….

S2Killinit48d ago

Riiiiight because people will just flock back to them for one or two games per year.

Jingsing48d ago

15+ years of bad performance is what they call irreparable in business. It is time for them to sell off the assets and get out of entertainment.

Tanktopmaster9248d ago

These declines are on the back of extra revenue received from releasing games like Forza horizon 5 on PlayStation. So I’m being sarcastic here when I said they should go back to exclusives. Killing off a revenue stream from Ps5 sales will only make things worse

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50°

Spiders Studio, Developers of GreedFall: The Dying World, Announce Liquidation of the Company

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What does it mean? This means the company as a whole no longer exists. We'll cease our functions immediately. The planned DLC will release via Nacon, and then-- well, that's it.

We're sorry that it's come to this and would like to thank each and every one of you for your support over the years.

If you have any questions or run into issues with your games, please contact Nacon directly as we'll no longer be able to reply."

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