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What's the matter with Microsoft?

Gregg Keizer | June 26, 2013
Experts search for meaning in three Microsoft U-turns.

Sony, which portrayed its new console, the PlayStation 4, as the anti-Xbox One, pitched its hardware to gamers, as a game machine, with the hope that others in the family would use it, too. Microsoft's mistake was taking the opposite tack.

Lessons learned?
Even with the missteps, several of the experts said, there's evidence that Microsoft has learned lessons. Some encouraged Microsoft not to give up on its long-term strategy, even in the face of the three failures.

"They were shooting for the future," said Miller, of the original Xbox One and Windows 8 decisions. "And I agree with them. They had to do the changes." It's inevitable, he said, that games will go all digital, all served via downloads, and that Microsoft's Windows 8 shift to emphasize mobile was necessary to stay relevant.

Moorhead believed Microsoft has improved its responses to faux pas, even in the last few months. "I do get a sense recently that Microsoft's taken a softer tone, and admitted that they didn't get it right," said Moorhead, referring to the Xbox One and Windows 8 retreats. "The addition of the Start button [to Windows 8.1] was at least some admission that they're not perfect."

But Miller wondered what the reaction to Microsoft's moves meant in the long term, and not just for the Redmond, Wash. developer. "The world may not be as ready for cloud services as some might want them to be," Miller said, pointing to Xbox One. "If [Xbox One and Office] are indicative of Microsoft's longer-term goals, are they achievable? And will consumers follow?"

None of the experts dared predict the exact nature of the future, but pointing to the pain of change, some cautioned other companies to learn from Microsoft's experiences. "It's the times in which we live," said LaMotte. "If you're going to allow the world to beta test your products, you'd better be ready for the feedback."

 

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