With the release of the Xbox One around the world today, Microsoft is now in position to see if it will catch up with Sony's successful PS4 introduction, which reportedly sold more than a million units on day one. Many are asking which console will win. That's actually the easy part. The harder question is whether game consoles will still matter in two years at all.
It feels a little like we've been here before. Back in 2007, both Sony and Microsoft were working hard to push the next generation of a technology they were convinced everyone would want. I'm not talking about the PS3 versus Xbox battle, though, but the war over high-definition video.
Most will barely remember that while Sony backed Blu-ray, which eventually won, Microsoft was betting hard on HD-DVD. I was courted at the time by both companies, eagerly trying to persuade me that their version of HD would win. We called the war for Sony at the time but made it clear that it would be a Pyrrhic victory: There would be precious few spoils to earn from that success.
We were right, much to Sony's distress. That's because the battle was fought over a physical storage format that was rapidly losing relevance. Digital downloads had already begun, although they would never really catch on. More importantly, that was the year that Netflix added online movie viewing, foreshadowing and encouraging a future that would be streamable.
That's why the right comparison today is not between this and the last-generation game console launches. It's instead between game consoles as a whole and all the dozens of other ways people can play games, watch video, interact with friends, and otherwise pass their free time.
Forrester attended Microsoft’s second annual Asia Pacific Analyst Summit in Singapore last week for an update on the company’s progress in transforming into a devices and services company. The event highlighted Microsoft’s strengths and exposed some obvious challenges, which I’ve shared below. Forrester clients can access further event-related analysis and implications here.
Day One: Impressive Capabilities And A Strong Understanding Of Customer Needs
Day one was well designed and delivered, with a clear focus on customer and partner case studies and go-to-market strategies based on three core imperatives:
Transforming IT. Focusing primarily on Cloud OS, Windows Azure, and Office 365, this imperative highlights Microsoft-enabled capabilities and resources to help IT organizations transform both internal data centers and IT delivery.
Engaging customers and employees. This imperative essentially combines mobility and social to help organizations thrive in the age of the customer by delivering improved customer service and customer and user experiences.
Accelerating customer insight and business process improvement. This imperative targets the changing needs and expectations for data and information access and real-time decision making via a combination of traditional analytics and big data.
How much stuff do you own? The answer for most people ranges from a few changes of clothing to a large house full of possessions – your material self. It turns out that most of us also have a digital self – the information and items we create or that others collect about us. It is your footprint, your impact on the digital world. Without a digital self, you don’t exist in the world of computers and the Internet.
The era of Internet has spawned riotous new forms of business disruption as cheap tools and services combined with Internet reach and social media have empowered anyone on the planet to compete with the largest, most established businesses. James McQuivey’s reports and book on digital disruption highlight the fast rise of new hardware devices such as Microsoft’s Kinect and Apple’s iPad, and the fast mainstreaming of new Internet services such as Dropbox, Twitter, and Facebook. Companies in the business of retail, books, movies, and music have been toppled or transformed, with more to come.
I attended this year’s Nokia World in Abu Dhabi on October 22 and 23 — perhaps the last one that Nokia will host to showcase its devices (Microsoft wants to acquire Nokia’s device and services business). And it seems that Nokia saved its best for last. The company announced its entry into the loosely-defined phablet category (smart devices with diagonal screen size of more than 5 inches but less than 7 inches) with two devices: a top-of-the-line flagship device, the Lumia 1520, and a more affordable version, the Lumia 1320. It also announced its first tablet, the Lumia 2520. It also launched three new Asha devices: Asha 500, Asha 502, and Asha 503. However, Nokia has neither announced the release date for its new devices nor identified which operators will carry them.
The event tag line was “Innovation Reinvented,” and Nokia did demonstrate many innovations, especially around imaging software. It launched new apps like the Nokia Camera, which combines Smart Camera and Pro Camera apps; Refocus, which adds Lytro-like variable depth of field; Storyteller, which integrates photos and videos onto HERE maps; and Beamer, which shares Lumia’s screen in real time over Wi-Fi or cellular networks.