Technorati Tags: IBM, Microsoft, xbox, xbox 360
So everyone knows about the hype that the XBOX 360 has been creating. From a technical perspective, I think Microsoft did a great job in bringing in a custom Power5 processor for XBOX 360 over the old Intel Pentium III in the first edition of XBOX. As a result, games will be a lot better since the 360 will be able to render so many more polygons, giving graphics a more realistic touch.
However, from a business perspective, the XBOX product line may not be all what its made out to be. The first XBOX was a bloody disaster for Microsoft as it cost them approximately $4 billion in losses. Although the hype around XBOX 360 is huge, its only expected to rake in $1.5 billion in consoles, games, and accessories in just 3 months! Although this is hardly an uptake on the $4 billion loss, its quite impressive to see that Microsoft plans on puting 3 million XBOX 360 consoles into homes across North America.
Most people today see the 360 as just a gaming console in your home, however, this is Microsoft’s foot into your door. The Microsoft business will most likely use the XBOX 360 as a platform for delivering media to anyone’s home that is equiped with the XBOX hardware. - which is quite a smart move on their part. The good thing is that IBM will also benefit, since its their processor at the heart of this beast! Glad to see IBM and Microsoft doing good together.