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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (48605)	11/6/2001 4:28:45 PM
From: RobertHChaney	Respond to of 54805

BB - What do you personally see using gg criteria, Mucho? A royalty game or a gorilla game? MM - i wish i had a firm opinion. Sony is the most prestigious Japanese manufacturer, and most of the top game software houses are in Japan (not to mention many game consumers), so i consider it unlikely that Sony, the champion of consumer electronics, could be unseated. on the other hand, MSFT has basically an unlimited check book and clout as you mention. meanwhile, Nintendo has great characters and is smartly positioned for the kiddy set with a cheaper machine. to me, it seems Sony and MSFT are targeting the same users, and they are both too big/strong to fail. so what can happen? as matt drudge would say, "Developing..." Hi Mucho - I am fairly pessimistic about M$FT's chances in the game market for the near term, for the following reasons: -They have never been a major player in the space -The existing kings have a huge installed base of players and game software -And tons of happy users -Most serious gamers who wanted a next gen game machine have probably already bought PS2 (I did!) -In a recession, it is doubtful that many of those people would buy a second machine -Sega proved again (with first excellent, next gen. 128 bit machine) that the best technology doesn't necessarily win However, in the long run there is a small chance this could become a Gorilla Game. I believe M$FT's main thrust here is to establish DirectX as the de facto gaming O/S for PC's AND gaming machines, and it could happen. This would fit well into their primary strategy to date of owning key O/S platforms (like PC, LAN's, internet browser, and new effort with .NET for the enterprise computing), and then leveraging that stranglehold into offering associated products. Regards, Robert