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Intel vs Microsoft

August 4th, 2005 · No Comments

Bob Cringely writes:

Microsoft has known for a long time that the PC as a platform is dying. The trends it sees for successor technologies are clear: mobility and gaming. Mobility means some combination of a handheld computer and a mobile phone. Gaming means xBox 360 and all that it can be — a game system, a home media platform, a more-than-rudimentary Internet device and home PC.

Microsoft talks about OEM licensing the xBox, but that’s a joke since the company loses money on every device. Would an HP or Dell want to enter a market in which it knew that break-even was two to three years away, and even then Microsoft could take away even that distant profit opportunity by introducing an xBox 720? Unless Microsoft is also willing to share its xBox software revenue (it isn’t), xBox hardware licensing won’t happen. But for a short moment the ploy may distract the PC companies, or that is Microsoft’s hope. By the time they notice it will be too late and the home market will suddenly be all-Microsoft all the time. Or that’s the plan.

Intel, meanwhile, is not a part of Microsoft’s calculations.

Tags: Software

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