FireGoblin
Newcomer
Microsoft's most important component in the XBox line of products is the Ethernet port. XBox LIVE is what Microsoft want to get out of the XBOX - the hardware is simply a medium to control how it enters the home.
Normally it would rely on others to build the hardware, but as the content providers (games, music, film companies) do not trust their IP being protected adequately on open architecture PC's (at least until TPM chips and suchlike become more prevalent) it needed to move into the market to prevent Sony et all hogging the cash cow.
Everyone agrees that media distribution is moving online, if Sony get the cell chips embedded into home AV kit - TV's, DVD's, HIFi's - with a PS(x) as a central hub, they will control the home. You also have to look into the HD-DVD/BluRay war, a key (some might say THE key) issue is whether the new generation uses a Java based or iHD (ie MS) subsystem. If the former wins, that means that Sony will start to build up the presense in the 'Operating System' component as well as the hardware, and that is something MS will not stand for
For MS it is a slippery slope that they want to stop now. As SunTzu probably stated "To divide is to conquer", XBox, and HD-DVD, are trojan horses that serve to both make money AND to prevent another company from gaining significant market share with which to challenge MS.
Normally it would rely on others to build the hardware, but as the content providers (games, music, film companies) do not trust their IP being protected adequately on open architecture PC's (at least until TPM chips and suchlike become more prevalent) it needed to move into the market to prevent Sony et all hogging the cash cow.
Everyone agrees that media distribution is moving online, if Sony get the cell chips embedded into home AV kit - TV's, DVD's, HIFi's - with a PS(x) as a central hub, they will control the home. You also have to look into the HD-DVD/BluRay war, a key (some might say THE key) issue is whether the new generation uses a Java based or iHD (ie MS) subsystem. If the former wins, that means that Sony will start to build up the presense in the 'Operating System' component as well as the hardware, and that is something MS will not stand for
For MS it is a slippery slope that they want to stop now. As SunTzu probably stated "To divide is to conquer", XBox, and HD-DVD, are trojan horses that serve to both make money AND to prevent another company from gaining significant market share with which to challenge MS.
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