Quote:
Originally Posted by chemgear
The more I think about it, I think Microsoft has simply done the PR/accounting math internally and determined that the number of gamers and their money that will they lose with their long term strategy is simply offset by the TV/sports revenue they will again from the apologists and people willing to swallow their DRM demands.
Which is fair I guess, it is a business with shareholders after all. The market will do what it does, customers will hopefully vote with their dollars. Gamers are simply not the long term target audience of the Xbone, they're just a sidebar/side income stream.
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Interesting. Profits from the Xbox division of MS are actually quite small in the grand scheme of things and the unhappiness from shareholders is well documented. Add to that the razor thin margins that are constantly being pushed by pirating and the inherent risks involved with the entire industry (one bomb and you're in trouble) and running a gaming division seems like a bad business decision.
Owning the living room, on the other hand, would be a massive source of revenues for MS and is very high margin as well. From a shareholder perspective, this direction makes way more sense.