Microsoft May License Out XBox Software
myheroBobHope writes "Apparently, Microsoft may license Xbox software to 3rd parties. Could this lead to the death of the standalone console? With the possibility of Media PC's with XBox software installed on them, why bother buying an Xbox?" From the article: "Gates hasn't offered specifics about the kind of software or which companies would be involved. He also hasn't said whether the arrangement will involve manufacturers making products other than game machines, such as digital consumer electronics gadgets that combine PC functions with home appliances." Update: 07/01 13:48 GMT by Z : From a comment by StingRay02, a link to a Gamespot article in which MS says this won't happen.
Just yesterday, I was playing my DS and thinking a little about the whole Nintendo v. Sony thing, and I wondered whether Microsoft would ever enter the handheld game market. Reflecting on it, I realized that a) they're going to wait until the next generation (duh) and b) they're likely to follow their usual MO, which is to release a spec and let someone else build it. In other words, PocketPC -> PocketGB.
To be honest, it's a little strange that MS decided to enter the hardware market with the XBox. I wouldn't be surprised to find that they'd prefer for someone else to start taking the however many hundred dollar loss on the individual consoles. The biggest problem with the strategy is that the price of the hardware is inflated, since the manufactures are unwilling to take a loss if they don't get a cut from the software sales. Also, having a lot of different manufactures could confuse consumers. Still, this sounds much more like the way MS likes to work: stand back, let other people bust their asses cutting prices on hardware, and collect a fee off of every item sold.
Didn't we see this already with the Nintendo Gamecube? What was that DVD player that would let you play GC games?
Anyways... nobody bought it last time 'round, so what makes anyone believe someone is going to this time?
Maybe they are trying to make up for the lackluster sales performance of Windows XP Media Edition.