Internet Marketing Monitor
January 12, 2007
Filed Under (Microsoft) by Matt / Derick on 01-12-2007

If you were around here yesterday, you saw my post on Microsoft and its "don't care" corporate mentality.  I used the Xbox as an example to illustrate Microsoft's ability to enter a new market, learn from some mistakes, but eventually dominate.  Today I ran across an article at Monsters and Critics talking about Xbox sales this Christmas.  According to numbers released by the NPD Group, a marketing research company, the Xbox snagged a 51% majority of the game console sales during this past holiday season.  Nintendo and Sony were left to split the remaining 49%.

Hmmm.  Enter a market.  Learn from mistakes.  Eventually dominate.  Now didn't I just hear that somewhere?

CNet caught up with Robbie Bach, the man in charge of Microsoft's entertainment division, and found out that the Xbox isn't the end of things for Microsoft's entertainment ambitions, either.  Bach told CNet that his company's goal is to turn each of its entertainment segments into Office and Windows-sized products.  He thinks the Xbox and mobile phones are close to reaching that point while newer products, like Zune and some television products, are just taking their first baby steps.

He also told CNet about Microsoft's long-term goals of integrating their various products and services.  Bach wants to be able to listen to his music on his computer, his Zune, and his Xbox.  And he wants to be able to talk to the same friends on Messenger that he talks to on Xbox Live.  One of the biggest challenges standing in the way, according to Bach, is to convince entertainment industry copyright holders to get on board the digital train.

Didn't I say yesterday that Microsoft was a long-term company?  Yeah… I think I did.  Just watch… they will continue to make inroads into these markets.

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