Is Microsoft's Xbox 360 Team Waking Up?

Some have accused me of not really understanding Microsoft's "gateway to the living room" strategy, where they are willing to incur billions upon billions in operating losses over many years in order to establish a beach head for offline and online gaming, music, video and streaming content. I've been pretty brutal in my assessment of the risks of such an approach, calling their strategy "niche" and overly-focused on the hard-core gamer, especially at the price point they've established. And I've also commented that this positioning stands in stark contrast to their messaging of becoming more mainstream.

 

Finally, I've claimed that Microsoft really doesn't understand the mass market, focusing on the technical shortcomings of the massively successful Wii and not on the fact that, bottom line, it provides a fun experience for game players across the spectrum. Something is wrong here, inconsistencies abound. So what gives? Am I being overly critical and missing the boat or is Microsoft's gaming strategy seriously broken? The answer: they are wrong - and they know it. What they do with this knowledge will be fun to watch.

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