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Microsoft’s New Strategy Isn’t As Stupid As You Think

Microsoft’s New Strategy Isn’t As Stupid As You Think

In a recent interview, Phil Spencer commented on why Microsoft announced two new consoles at E3:

“In the phone market, people are more used to upgrading fast and wanting the latest of everything. But with phones, your new apps had better work on that phone and the next one. According to what they’re telling us, the consumer expectation is: games and apps had better work even if I upgrade. We’re looking at the console business and asking how do we provide that choice to users? It resonates with them because other devices are doing that.”

Could this mean that the normal 4-7 year console cycle is over? I think what Spencer is getting at here is a future where games work more like PC games. No matter what Xbox One-based system you have, the game will work. In addition, Xbox consoles are going to have a similar lifespan as a smartphone. A lifespan many of us have ranted about for quite some time now because most of us don’t think it will work. For smartphones, this kind of fast upgrade works because they have a short lifespan. The difference between a Samsung S3 and S4 is minimal at best, but it’s enough for people to want the newer one because their old one doesn’t work as well anymore. Smartphones are kind of like microwaves, and only last two years at best.

Now, I’m mostly okay with this because I’ve never paid a dime for my smartphone. A percentage of my phone bill goes toward paying off my phone each month. As such, after two or three years I can get a new phone for free. This cannot work with consoles. You’re not paying for a constant service, you’re paying for the one machine to play the games you love. Nor, for that matter, is this idea much akin to having a PC rig. Sure, you can update your PC, but you have a lot more choice in terms of timing and cost. Is it even possible to sell a console for the same price as, for example, a graphics card of similar capability? Or an OS update? I’m going to guess the answer is no.

Microsoft’s New Strategy Isn’t As Stupid As You Think

That said, I still think this could work. If Microsoft (and Sony for that matter) play this right, technology in gaming is going to take yet another spike upwards. If the difference between each new console is significant enough, then it will be easy to sell. It won’t just be one more flop of speed or a couple more pixels per inch. Since Microsoft has been in the business of PC gaming for a decent amount of time, I would say they know a little of what they’re doing with these new consoles. It’s more about interface, design, and significantly upgraded hardware than anything else.

Updated interfaces could come in the form of touchscreens, virtual assistants like Cortana, or something entirely new. Controllers too, might experience a revolution with design and interface. This way, Microsoft wouldn’t so much be able to keep up with PC gaming systems, but at least be in the same ballpark for longer than a year. If Microsoft does this right, I think they could be very successful and we’ll be buying new consoles a lot more often – and be happy about it!

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