![]() ![]() ![]() The result was that despite the Sony PlayStation 2 hands down winning the 6th console generation by a country mile, Microsoft still made more money in the same period, with the massively online orientated Xbox 360 properly beginning Microsoft’s path to cloud game streaming and digital dominance. Simply put, Microsoft replicated what it did first in the 1980s in the home computer market with its software licenses to legally use their own ’Ms Dos’ first, and then ‘Windows’ and ‘office’ programs, just sending 1 key to buyers (so zero costs = all revenue). understood that the main business in the future console industry was not what selling hardware to gamers around the world and then getting backing software royalties, as the Japanese firms like Sony and Nintendo thought, but instead exploiting and incentivizing a monthly based pay per view service (a model satellite or cable TVs moved to in the 1990s). ![]() So, as happened with the ‘Xbox Live’ in the 2000s, Bill Gates and Co. And the gaming sector has been, since day one, on the top list (micro transactions through loot boxes, personal info & data sold to third parties, monthly subscriptions, etc.). Microsoft meanwhile, with literally “Micro”computer “Soft”ware making up its name, IT sector is its core business.įast forward to the 2010s and the market cyclically needed broader internet bands to allow bigger and better connections across the world: to collect, share and (most of all) sell big data. So, from this perspective, even if Sony does have a wide knowledge of the IT sector, its flaw (if we can say so) is that it is not just strictly based on it. As history would go on to show, Sony would then go on to transform that project into the first PlayStation, which launched in 1994. The reason for the break-up? A falling out over the direction of a new games accessory, a CD Rom peripheral for the Super NES, which would go on many years later to sell for $360,000 to US collector Greg McLemore. Sony meanwhile was a 70-year old company born after World war II, establishing its own fortune on micro electronic items (portable radios, walkman, Tvs, etc.), and entered the gaming market just after the highly publicized break up from Nintendo. The answer is simple: bad decisions and different investments.Ģ0 years ago Microsoft was one of the ‘ Big 5’ companies along with Apple, Google, Amazon and Facebook and made its fortune on the rise of the home computers era, as on the proliferation of the internet in the mid 1990s. So, how has it come to this? How has Sony managed to miss the boat on cloud gaming and online streaming service technology from such a position of strength, when Microsoft who is coming off a brutal defeat in the Xbox One generation, is now so established and well positioned? ![]()
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