Microsoft gaming a "disaster"

April 20th, 2007, 15:15 Posted By: wraggster

Investor adviser Roger Ehrenberg believes Microsoft's foray into gaming has been a "disastrous endeavour", and that it should rethink its entire strategy.

His conclusion was based on "objective numbers" taken from the Microsoft's financial statements, which show a total loss of USD 5.4 billion from its efforts.

"Microsoft needs to take a long, hard look at its gaming strategy: and, in fact, its entire H&E [Home and Entertainment] strategy," Ehrenberg stated on Forbes.com. "At what point, regardless of its virtually endless financial resources, does it say 'enough is enough'?"

"Would we have been better served by returning the extra cash to shareholders rather than investing it in a franchise that seems to have questionable prospects for turning around? These are the kinds of questions Microsoft management should be asking. And hopefully, for shareholders' sakes, they are."

Apparently the company's focus on hardcore gamers has left it with a dwindling user base. If it continues with the same strategy then he believes it will have a problem. Instead, Ehrenberg reckons, it should take a long hard look at Nintendo's master plan, with a mass-market approach and cheaper console.

He even cites EA as measure of how successful a particular console is considered to be, believing that the more games the publisher throws at the hardware the more important it is. Which makes us scratch our heads, because Xbox 360 has had and continues to have strong support from EA.

"Nothing short of a tectonic transformation in perception of Xbox 360 relative to its competitors," will change things, he added.

It is fair to say Microsoft hasn't enjoyed the success it dreamt of in Japan, which Ehrenberg picks up on, but its persistence with JRPGS like Blue Dragon and Lost Odyssey could show strong will power. Not to mention the success of Gears of War across the region.

We can't help but think Mr. Ehrenberg would fit right in to our very own comments threads. And if he did, what would you like to ask him?

via eurogamer

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