February 24, 2004
Microsoft's consumer electronics aspirations
A decent article laying out microsoft's aspirations in the Consumer Electronics space. Electronics companies play defense against Microsoft The problem with the analysis is that is says all the oposition is from entrenched vertically integrated consumer electronics companies not wanting to adopt MS's architecture. The problem is that the MS horizonital architecture is fundamentally a superior way to deliver a rich, value priced mass market experience. The PC industry hardware guys are working on single digit margins. The CE guys are working on double digit (high double digit) margins. For the PC hardware guys, anything is an improvement, so they will drive relentlessly into the CE market. And the fundamentals of the PC economics are just WAY better than proprietary CE. In the end, Sony may end up like Apple. A nice little niche player for stalwort true believers. The rest of us will pick the cheaper more rhobust platform. The CE guys are used to delivering single funciton devices that are highly reliable. The PC guys will deliver multifunction devices that have some bugs, but in the end are more valuable due to their multi-funciton and field upgradability.
Posted by Martin at February 24, 2004 7:26 AM
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