In an effort to retake over the world, Microsoft announced that it will be offering IPTV (Internet Protocol TV) through their Xbox gaming system some time in 2007 – according to this Wired post. The post goes on to talk about the possibility of Microsoft following the cell phone model where they practically give away the console, for signing up with an IPTV service (presumably for an extended contract of several years). Anyhow, I for one think this is brilliant marketing on behalf of Microsoft. Apple might have kicked Microsoft’s opulently wealthy ass in the music department with iTunes and the ubiquitous iPod (although the sleeping giant is gearing up for that battle too), but if they do this right, they could dominate the IPTV market which I believe will dwarf the on-demand music market in terms of sheer revenue.
Another important aspect to consider is Bill Gate’s vision about a convergence of technology for the home, that stylishly integrates with your home theater and stereo. He believes an Xbox, shaped like a funky home theater component, is a perfect fit – here‘s a Reuters article about that. He couldn’t be more right. Ideas like IPTV will never take off unless you can watch TV on your comfy couch. Sitting in front of the computer watching three minute YouTube videos is one thing, but eventually you want to relax and don’t really want to interact all that much. Or, you’re done playing Grand Theft Auto 2020, and now you want to chill. Well, if the Xbox can step in and fulfill that role too, all the merrier for the consumer, and for Microsoft’s shareholders.
People may be talking about the demise of Microsoft as Google and other competitors turn up the heat, but they didn’t get where they are today by pussy-footing around. And we certainly shouldn’t forget they have boat-loads of money to back it all up.
