Why did Microsoft Make a Console?

The other day, I was having an arguement with my friend on which is better, PC or consoles. The thing is the only counter-arguement he ahs is why did Microsft make a console. He states that Microsft made a console because the profit for PC gaming was too horrible for them. Now I know this is not true, seeing how Microsoft didn't develope a lot of games for PC.

So my question is, did Microsoft make a statement about why they are making Xbox and entering the console market. I know it has to do with getting more money, but I need a solid proof. A link would help a lot.

I'm thinking they saw how successful Sony was with the PS2 and just had to give it a shot.Verge_6

I'm thinking the same, but I need a link to proof that seeing how my friend won't believe what I say.

The other day, I was having an arguement with my friend on which is better, PC or consoles. The thing is the only counter-arguement he ahs is why did Microsft make a console. He states that Microsft made a console because the profit for PC gaming was too horrible for them. Now I know this is not true, seeing how Microsoft didn't develope a lot of games for PC.

So my question is, did Microsoft make a statement about why they are making Xbox and entering the console market. I know it has to do with getting more money, but I need a solid proof. A link would help a lot.

phatkav

Why did Apple make an Ipod?  Because they wanted to make money.

They want to take over the world.hydrophoboe

Sounds about acurate, now gaming, soon super markets with microtransactions on plastic shopping bags. 

MS has never made much profit from the PC gaming sector because they gain no royalties/licensing fees from it in the first place. And the Xbox isnt exactly making tons of money either since their gaming division was down in the billions some time ago.

The real answer was stock-holder pressure. Alot of the investors a while back felt that MS's growth was stunted and they had alittle too much money. After all, when you essentially have a monopoly and 50 billion dollars in the bank, what more you need to do? So in order for MS to appease stock holders and garner more investor interest hey began to branch out into other markets a few years ago. The results? The Xbox, the Zune, the UMPC, Tablet PC's, Pocket PC OS, small business software (outside of Office), andseveral other projects MS has started.

MS is just trying to win mindshare, and they have successfully done it with the Xbox (even if it has been a commercial failure). Alot of peope here dont just see MS as "the big OS company" but also a gaming company. Thats a worth alot to company to be seen as a notable competitor to a sector that wasnt theirs.

Because Sony was pimping the fact the Playstation line would eventually become an all-in-one entertainment center for the living room. Microsoft didn't want anybody taking over the living room but them, so they entered the console war.   alienhunter187

Excellent replies.

My last request, does anyone have a link of Microsoft stating a reason on why they entering the consoles market. I know the answers you gave me are logical, but with on link or proof my friend just won't believe me.  

Excellent replies.

My last request, does anyone have a link of Microsoft stating a reason on why they entering the consoles market. I know the answers you gave me are logical, but with on link or proof my friend just won't believe me.

phatkav

You are never going to get a single straight answer because depending on who's asking, MS gives a completely different response. If its a gaming website, MS says that its doing it for the gamers. If its a stock website, MS will says its to give growth and value to their stocks. If its a game developing website, its to bring a PC-like artchitecture to the console gaming market. If its a financial analyst website, MS will say that it entered it because it saw potential for profits.

And in a sense, they are all true and was factored into their decision to make it. But you really need to look at the bigger picture and try and see what was their biggest motivator. Maybe reading this, from the viewpoint of investors, will give credence to my idea. 

They needed a market to go into and dominate eventually. They are going to have a harder and harder time to try and convince PC consumers to buy their new OS, unless they come up with something rediculously innovative...

The console market is fairly small and with their money it was easy to start and the market potential is HUGE, they want a piece of the pie and to knock someone off while eating it. 

[QUOTE="phatkav"]

Excellent replies.

My last request, does anyone have a link of Microsoft stating a reason on why they entering the consoles market. I know the answers you gave me are logical, but with on link or proof my friend just won't believe me.

XaosII

You are never going to get a single straight answer because depending on who's asking, MS gives a completely different response. If its a gaming website, MS says that its doing it for the gamers. If its a stock website, MS will says its to give growth and value to their stocks. If its a game developing website, its to bring a PC-like artchitecture to the console gaming market. If its a financial analyst website, MS will say that it entered it because it saw potential for profits.

And in a sense, they are all true and was factored into their decision to make it. But you really need to look at the bigger picture and try and see what was their biggest motivator. Maybe reading this, from the viewpoint of investors, will give credence to my idea.

Thanks for the link. It helped a lot.  

Because Sony was pimping the fact the Playstation line would eventually become an all-in-one entertainment center for the living room. Microsoft didn't want anybody taking over the living room but them, so they entered the console war.   alienhunter187

This guy has got it right. Dont Quote me on this but has it ever crossed anyones mind that microsoft paid Sega to kill the dreamcast? just an odd thought ive always had.... think about it for awile, 2 is couple 3 is a party and 4 is a crowd

Bill gates probably got into gaming because he has a vision for the future of computers that involves video games.  He's made it really clear that he wants television to be done over the net.  In the future, xbox will probably just be application for pcs.  As of right now though, console gaming has more sway in the industry than pc gaming.  So, gates wants to get good at console gaming, learn its appeal, and all the while introducing us gamers to pc gaming.  How? Think of it.  xbox is basically a pc architecture moreso than the others, it has differnt consoles to buy (core, elite, etc.), tons of add-ons, it introduced online gaming to consoles, its games frequently have patches, and it even brings pc games to consoles on a larger scale than ever before.

The other day, I was having an arguement with my friend on which is better, PC or consoles. The thing is the only counter-arguement he ahs is why did Microsft make a console. He states that Microsft made a console because the profit for PC gaming was too horrible for them. Now I know this is not true, seeing how Microsoft didn't develope a lot of games for PC.

So my question is, did Microsoft make a statement about why they are making Xbox and entering the console market. I know it has to do with getting more money, but I need a solid proof. A link would help a lot.

phatkav

It definitely wasnt to make money because they lost a lot of that making xbox.

I think they did it to stop sony taking over the living room. 

Microsoft got into console gaming because it potentially threatens Windows. Playstation 3 is a highly advanced computer that runs without a Windows OS. Digital devices are becoming more integrated, your game console can already use a wireless keyboard, play your movies, connect with your MP3 player, network with your computer, download TV, browse the web,etc etc. If Microsoft didn't get into this industry eventually a PC running Windows wouldn't be necessary. Your console would be able to run all your essential programs as well as act as your media center.

Beyond that Windows may not dominate forever. Assuming another OS can and does gain popularity what differentiates Windows from said OS? Games. Microsoft is setting itself up as one of the major players in the digital entertainment industry. Games on your phone, your TV, your computer all running using Microsoft software, connected via a Microsoft network. Your music on the go? Microsoft MP3 player with the potential to connect to your console at home to access your media library. They want everything connected, facilitated by Windows.