• Hey Guest. Check out your NeoGAF Wrapped 2025 results here!

Microsoft Mulls Xbox License (spreading its Xbox software far and wide.)

neptunes

Member
Microsoft Mulls Xbox License

Firm will attempt to paint rivals into a single-vendor Apple-style corner, while spreading its Xbox software far and wide.
June 30, 2005

In a move that could dramatically alter the rules of the game business, Microsoft is contemplating licensing its Xbox software Windows-style and trapping its rival Sony in an Apple-like single-vendor warp zone.

Microsoft Japan spokesperson Kazushi Okabe confirmed a report in Thursday’s edition of the Japanese business daily, Nihon Keizai Shimbun, that the Redmond software giant is seriously considering the idea.

The company offered no further details but the move could release Microsoft’s Xbox software from the confines of its console and make it available on alternate platforms such as television sets or specially designed handsets.

Enterprising licensees could even probably find headroom on a PC to run the Xbox software.

It’s unclear, however, whether Microsoft will insist on a strict Xbox branding on these other products as it does with Windows, or perhaps allow each licensee to use its own brand.
More Here...Red Herring (Business & Technology)
 
i'm struggling with this to be honest. please can someone explain it?

does it mean ms intends to license the xbox360 hardware, frontend and compatibilty [with xbox360 games] to other devices? if so wouldn't these devices become very expensive?

can someone explain a potential scenario how ms could drastically benefit from this?
 
monkeyrun said:
basically then Dell, HP or maybe other home electronics appliances maker could make xBox compatible hardware.

If so, Microsoft should not be allowed to do so. It's possible that other hardware companies could follow suit and the gaming industry would turn to shit moreso than it already has.
 
This idea hasnt really worked in the past. Adds to much to cost and is a hassle for all involved. Having different standard and types of of just 1 product with same functions confuses people.
 
I'm sure Dell and HP really wanna get locked into selling hardware that loses money on every purchase.....

Well the reports still aren't sure whether this is for Xbox, Xbox 360, or both.

I could see it making more sense for just the Xbox, since MS is supposedly pulling the plug soon. This would be a way for them to sort of outsource support of the Xbox market. And it would be easier for hardware vendors to work Xbox compatibility into a product that sells at a reasonable price and still makes them a profit.
 
sonycowboy said:
But it sucks at general purpose computing!!! :D

:P

Like the 3D0 Blaster. PC with an xbox 360 built in. HP/DELL still get to build their PCs, but charge a premium for the Xbox360 built in. MS continue to build only the standalone console.
 
Deg said:
This idea hasnt really worked in the past. Adds to much to cost and is a hassle for all involved. Having different standard and types of of just 1 product with same functions confuses people.
3DO. M2. CD-i. The VMLabs thing. I think Microsoft is in a better position to make such a program succeed than Panasonic/Matsushita or Phillips, but I dunno...
 
Mrbob said:
Maybe MS is selling their Xbox emulation technology?


Bingo!

MS already has the deal with Nvidia, so they are legal on their end. Basically they sell the rights to Dell (or whomever) and Dell builds PC's that do everything they do now... plus add the option to play Xbox games for $80. The $80 includes one game (on the hard drive), an Xbox controller, and the adapter to plug it into a USB port.
 
Would suprise me if they do because if you have seen Microsoft balance sheet you'd notice their biggest source of income is licensing.
 
jedimike said:
Bingo!

MS already has the deal with Nvidia, so they are legal on their end. Basically they sell the rights to Dell (or whomever) and Dell builds PC's that do everything they do now... plus add the option to play Xbox games for $80. The $80 includes one game (on the hard drive), an Xbox controller, and the adapter to plug it into a USB port.
ahhh... i understand.
 
border said:
I'm sure Dell and HP really wanna get locked into selling hardware that loses money on every purchase.....

Congratulations on reading the article.

Microsoft is considering licensing out the Xbox SOFTWARE. Not Hardware.
 
The Saturn platform, as well as the Genesis Sega CD, released under multiple manufacturers' gaming products, too. The casing design of some of those Saturn models was quite distinguished.
 
I remember it was mooted that Nintendo might do the same with GC (and they did, well, with one device anyway).

I wonder if this is part of a longer term strategy for MS to exit out of hardware altogether? They've mentioned a couple times now of building a specification for a games system that other vendors could move in and build systems around. Basically hoping to establish a "one-console-future" on their terms, around specifications they define, somewhat like DX and GPUs, but less cyclical (one would hope) and more controlled.

I ain't sure how successful such a venture would be, but it'd be interesting to watch, and to see competitor reaction.

update - doesn't look like it's happening any time soon: http://www.gamespot.com/news/2005/06/30/news_6128428.html
 
Microsoft torpedoes third-party Xbox 360 reports
Software giant denies reports that external manufacturers will license its next-gen console OS any time soon.

Yesterday, the next-gen console race took an unexpected twist, when an article in Japanese business daily Nihon Keizai Shimbun was picked up by many media outlets, including the Associated Press.

The article reported Bill Gates, who was visiting Japan, as hinting that Microsoft might adapt its mega-successful PC business model to the next-gen console race. The paper quoted the Microsoft chairman and chief software architect as saying his company was open to the idea of licensing the Xbox 360's operating system to third-party hardware manufacturers, as it does with Windows and PCs. Gates reportedly said such a business strategy is being discussed within Microsoft, and that the idea is at a preliminary stage.

Gates' comments were reportedly in response to queries about third-party premium-end game machines with functionalities beyond the standard Xbox 360 specifications. However, rumors began to quickly spread that Microsoft was considering letting outside parties make their own game consoles that would run the Xbox 360 OS, perhaps as soon as the platform's launch later this year.

However, speaking to GameSpot, Microsoft officials flatly denied that the Xbox 360 would carry any other label than Microsoft's--or at least any time soon. "To be clear, Xbox will continue to be manufactured exclusively by Microsoft," said a rep for the company. "There's certainly a potential for other hardware companies to manufacture Xbox some day in the future, but that is not something we're focused on right now."

Of course, at the current time, there would be little incentive for an external manufacturer to make an Xbox 360. While Microsoft has released no official manufacturing costs--or even a price--for the console, it is widely believed that the company is heavily marking down each unit. Some analysts predict that the company will lose around $75 for each 360 sold, losing $91.2 million and $243.2 million in hardware production in 2005 and 2006, respectively.

By Tor Thorsen -- GameSpot
POSTED: 06/30/05 11:16 AM PST
 
Top Bottom