Should Microsoft sell Xbox to Nintendo?
Forbes thinks so. And from a purely objective standpoint there is some merit. It would cut a sector that loses money and, in theory, better focus the business.
I totally disagree with this notion however. I think it misses several points regarding overall strategy and image.
If I were to agree with cutting anything it would be Surface and Nokia. Those lose money and negatively impact their business by putting them into competition with their OEMs.
Xbox on the other hand. They don't license the OS. The console is the integral component of that side of their business. It is a cut all or nothing proposition. So does it make sense?
I don't think so. Xbox, out of Microsoft's consumer products has the best reputation and relative success. It is also not an island. It is an integral part of the Microsoft ecosystem. Smart Glass encourages purchases of other Microsoft devices. It enriches experiences on other such devices. And the console gaming market is undergoing a revolution that will make it much more profitable for the console makers.
Sony stunted this move by enraging consumers into rebelling against Microsoft's DRM plans. But, nonetheless we're still seeing much more robust online stores in the consoles, along with a stronger push to generic subscriptions and other supplemental subscriptions on the consoles.
Just as Office is being reborn as a subscription services and revitalizing that part of Microsoft's business, the subscriptions available on consoles have the potential to do the same. In fact, I would argue that whoever gets that piece right first will truly win the console war for this generation.
The other fundamental problem is the comparison to Nintendo. Wii-U was flat out a terrible product. That is why it did terribly. Not because console gaming is suffering in any measurable way. In fact, this exact same idiotic comparison is what lead many analysts to speculate that the PS4 and Xbox One wouldn't see the same sales their predecessors saw. But, not only were they wrong. They were totally wrong. BOTH consoles destroyed sales for the same period for their last gen consoles.
This is the other reason NOT to sell the business to Nintendo. They were the only major console maker to fail this generation. What would Microsoft loyalists think if they sold a "successful" division to their only direct competitor who failed recently. The move would ruin confidence in the company as a whole.
The final note is the potential for the Xbox to be more than just a gaming console. The cable integration is just scratching the surface.
I totally disagree with this notion however. I think it misses several points regarding overall strategy and image.
If I were to agree with cutting anything it would be Surface and Nokia. Those lose money and negatively impact their business by putting them into competition with their OEMs.
Xbox on the other hand. They don't license the OS. The console is the integral component of that side of their business. It is a cut all or nothing proposition. So does it make sense?
I don't think so. Xbox, out of Microsoft's consumer products has the best reputation and relative success. It is also not an island. It is an integral part of the Microsoft ecosystem. Smart Glass encourages purchases of other Microsoft devices. It enriches experiences on other such devices. And the console gaming market is undergoing a revolution that will make it much more profitable for the console makers.
Sony stunted this move by enraging consumers into rebelling against Microsoft's DRM plans. But, nonetheless we're still seeing much more robust online stores in the consoles, along with a stronger push to generic subscriptions and other supplemental subscriptions on the consoles.
Just as Office is being reborn as a subscription services and revitalizing that part of Microsoft's business, the subscriptions available on consoles have the potential to do the same. In fact, I would argue that whoever gets that piece right first will truly win the console war for this generation.
The other fundamental problem is the comparison to Nintendo. Wii-U was flat out a terrible product. That is why it did terribly. Not because console gaming is suffering in any measurable way. In fact, this exact same idiotic comparison is what lead many analysts to speculate that the PS4 and Xbox One wouldn't see the same sales their predecessors saw. But, not only were they wrong. They were totally wrong. BOTH consoles destroyed sales for the same period for their last gen consoles.
This is the other reason NOT to sell the business to Nintendo. They were the only major console maker to fail this generation. What would Microsoft loyalists think if they sold a "successful" division to their only direct competitor who failed recently. The move would ruin confidence in the company as a whole.
The final note is the potential for the Xbox to be more than just a gaming console. The cable integration is just scratching the surface.
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