Microsoft moves into chip world with Xbox

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Do you remember the time, John C?

Prior to the release of the first X-box we argued several points up and down:

1) At the time you claimed that Microsoft would be licensing the reference Xbox design to several manufacturers, much as Microsoft later did with the Tablet. I claimed that there would be one contract manufacturer and that the Xbox would be Microsoft's sole purview.

2) You and I argued whether the Japanese koretzu model was actually beneficial in the manufacturing of one-purpose entertainment hardware. You claimed a completely market-based solution would always be less expensive and more successful. I claimed that though one could market-source certain components there were advantages to custom hardware developed by vertical friends and internally and discrete parts fabbed by oneself. Microsoft is drifting to the Japanese model and abandoning slowly the pure market one you positted.

3) I claimed that there would be a backlash from the OEMs and game manufacturers against the Xbox. Specifically that the Xbox hardware, which ran essentially the same hardware as an OEM PC would decimate the PC gaming market and that less PCs would be sold for gaming. The introduction of the Xbox essentially put Microsoft in competition with their OS customers and competing with one's own customers is not a good idea. One wonders: did Microsft switch processors to avoid direct confrontation with their OEMs?

Now, #3 is a new question, and #2 is a toss-up as to who was correct, but #1 was an issue in which I was definitely correct. I'm not interested really in bandying about the I-said,you-said since both of us will tend to slant such accusation to our better selves. What I do wonder is how you square numbers 2 and 3 against your current stance?

Posted by: John Le'Brecage   Posted on: 11/10/03 You are currently: a Guest | Members login | Terms of Use

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