http://www.ign.com/articles/2013/09/18/hundreds-of-tv-show-ideas-being-considered-by-microsoft
I liked the framework and approach that the Microsoft 2020 group used today. However, I think they missed an important metric, growth. They chose the three largest division of Microsoft and merged them together for a cohesive, enterprise-centric, strategy. However, the two divisions that they neglected are perhaps the two fastest growing segments at Microsoft (Bing/Bing Ads and Xbox/Windows Phone). As Professor Venkatraman mentioned, a financial picture of Microsoft in 2020 would have helped us visualize the growth in each of these divisions.
DISCLAIMER: I am an avid gamer and Xbox fan. Suggesting that Microsoft's gaming division is on the decline would be a rejection of my life's work. Therefore, I may be biased.
To support my hypothesis that Microsoft's Xbox division will see significant growth in the next 7 years, this article demonstrates that the next generation of the Xbox (Xbox One) will be much more than just a video game console. In addition to the already strong Xbox platform (integration with Netflix, HBO, ESPN, Skype), Microsoft has plans to add original TV programming to the Xbox One, circumventing traditional cable providers. The Xbox One stands to become a multi-functional media box in your living room, which I believe will lead to significant growth in the coming decade for Microsoft's console division.
I dug into Microsoft's financials a bit to see if I could find growth rates of each division. Looking at both revenue and income growth, the only clear takeaway is that the Microsoft Business division (includes MS Office) is by far the best performing AND fastest growing division.
ReplyDeleteHonestly, after looking at the divisional trends in the link below, my case is weaker than I hypothesized. The Xbox and Bing divisions are not as strong as I suggested.
http://csimarket.com/stocks/growthrates.php?code=MSFT
Someone in class also mentioned that they think the console gaming approach is going away. I think this is a slight exaggeration. With new gaming consoles like the XBox One including other services like HBOGo, Netflix, etc. they are becoming an entertainment hub for the home. There was a lot of discussions about creating an experience across different layers of the stack. The development as the XBox as a one stop entertainment platform could be a key cog to lock the user into the Microsoft world.
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