“Xbox One could be Microsoft’s last console” suggests analyst

Xbox One_03

Following former Microsoft CEO Steve Ballmer’s retirement, analysts are debating whether Microsoft should get out of the hardware business, and continue with its core focus – business software.

DFC Intelligence analyst David Cole told GamesIndustry that he believes this could be a possibility, and claims the Xbox One could turn out to be Microsoft’s last console.

“I think this could be a possibility,” he said.

“We have always wondered how long Microsoft would stay with the game hardware business.

“Their strategy for Xbox One clearly looks like it will not be a success on a grand scale. So I think that the Xbox One could represent the last of Microsoft in video game hardware.”

Not all analysts believe Microsoft will pull out the console business though. Independent analyst Billy Pidgeon explained that while hardware is “a risky, low margin opportunity with minimal mid to long term payoff, the value in Xbox is primarily in consumer software and network sectors built for the dedicated Xbox console but also supporting usage across multiple platforms including web and mobile.”

Pidgeon went on to explain that if Microsoft were to abandon the entertainment and leisure consumer software and networks, it would have more difficulty competing where other large technology companies seeking growth such as in mobile, consumer digital media and network sectors.

“Xbox also affords Microsoft a strong affinity with gaming enthusiasts who tend to spend significantly on specialized digital media such as games,” he continued.

“This gives Microsoft an edge against competition from Apple and Google.

“Google has much catching up to do on the games sector, and Apple is not likely to embrace gaming as a high value digital media due to the company’s historical model in high volume low margin cheap digital media as a commodity to leverage high value (and relatively high margin) hardware.”

About r0gue Zombie

Known as Victor Vieira to his mommy, r0gue is a Consoloptipus [con-sol-opti-pus] plural: con-sol–opto-pi • Derived from Latin meaning “he who is too cheap to buy a gaming pc” • Commonly found online. If encountered in natural habitat, presume dangerous [to himself]. • From the ‘alles-terian’ group [will eat anything]. Needs regular feeds.