Chris Thomas

EA: Microsoft, Sony, We Have a Problem

First off, great article. This is an industry that I find fascinating right now, maybe because deep down I'll always be a dorky gamer.

I disagree with you that XBox 360 won't reach the status of the PS2 - in my mind, it's the heir apparent. It reached the market first and already has a few big names on the way, such as Halo 3 and Fable 2. If you're currently an avid gamer, XBox 360 is a must have. The hardware is unsurpassed and as the success of Gears of War can attest, great graphics can make a difference. Playing that game on a good HDTV is surreal. I have little doubt that the XBox 360 will continue its success as more and more games make their way onto the market.

That said, the Wii is one of those products that comes along and can only be characterized as disruptive. With its intuitive feel, it's not only fun for people that have played video games since they were five, but also people that don't fit into the traditional video game demographic. I have a friend that always sighs, rolls her eyes, and walks away whenever she sees me and my roomate playing "Halo". We tried to get her to play but she just couldn't figure it out. The learning curve is too steep. For me, it's fun as hell but if you didn't grow up playing 1st person shooters that controls can be insanely unwealdy.

Put a Wii-mote in the same person's hands and it's a completely different situation. We have a blast playing Wii Tennis. I'm sure I could even get my parents to play if I tried.

To be cliche, the XBox 360 will be the market leader in the console industry's "red ocean". The Wii, on the other hand, has expanded the demographic - it has found a "blue ocean".

Should Microsoft Buy RIM? It May Be Time For An XPhone

I can't help but disagree.

I get the feeling that Microsoft is drifting as a company, getting away from its true competitive advantages - your proposal would most likely be the final nail in the coffin.

Microsoft is a software company. The reason why they got involved in the console market, I presume, is that the true value-add (as well as source of margin) in the industry is the games themselves - which Microsoft has performed extremely well. The Zune, in my opinion, will never even touch the iPod. I think you'd be living under a rock to think otherwise.

If Microsoft were smart, they'd focus on software. Apple will fail, over time, in the electronics market for the same reason that they failed in PCs: incompatablity. Apple seems to have this utopian vision of a world where everyone buys media at iTunes, downloads it to their iBook, transfers it to their iTV to watch at home and their iPhone to listen on the go. And that's all well and good, and they may indeed lead all of these areas. But it could have also been argued that the original Macs were better than the original PCs. Companies will no doubt copy the iPhone's interface, just as they copied the Mouse. But when you can't transfer your iTunes to your newest RIMM made portable widget, or your DVR or XBox 360 - people will be frustrated and Apple will invitably be crushed under the weight of the competition. They've been on a hot streak, but it might not last forever. Jobs needs to be more flexible.

That brings us back to Microsoft. They could waste their time and money coming up with a responce to iPhone - or they can let the RIMMs and Nokias of the world do it for them, and focus on software (such as a great OS) to go with them. The reason Microsoft won the war of Operating systems was because it had the flexibility that Apple did not have. Microsoft should be competing with Apple in the world of Operating systems - not MP3 players, not DVRs, and certainly not Phones.