Microsoft exec warns of the difficulties ahead for Nvidia and Steam
Speaking at a special press event in London today corporate vice president at Microsoft EMEA Phil Harrison warned of the difficult road ahead for companies launching new hardware.
Asked if Microsoft's UK studios, which includes new outfit Lift London, would support the wealth of new platforms including Nvidia's Shield and Valve's Piston 'Steam Box', Harrison warned that it requires many thousands of pounds and ‘very deep pockets’ if such platforms are to compete with the likes of Xbox, PlayStation and Wii.
“CES is always very interesting," said Harrison. "But entering the hardware business is a hard thing to do. You need to have deep pockets. Hardware can be successful but it’s rare to get new hardware to scale. I’m talking tens or hundreds of millions.
“It’s about having a supply chain and a distribution model, it takes thousands of people to make a reality.”
Harrison should know, having served senior hardware-related roles on both the Xbox and PlayStation brands.
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2012 has seen a wealth of new platforms announced outsie of the established Microsoft-Sony-Nintendo-trio, including Ouya, Occulus Rift, GameStick, Piston and Shield.
This is not a repeat from 2000.
Oh great, Peter Moluenu' is kicked out of the celebrity limelight and a new face jumps in - why has the cult of celebrity entranced the console media - there should be enough they can write about but the utterances of questionable executives?
You don't need heaps of cash if your product is innovative enough and captures the imagination of others who can then make it something more, then the money will flood in (see Apple for example). Microsoft have entered hardware markets with a wealth of cash but not capability and it has cost them a lot, but they must not presume others are so stupid and incapable. Valve are in a very good place to produce the perfect environment for games developers in the future and they also provide hardware manufacturers with the opportunity to compete in a market that would be almost impossible to enter otherwise. If the games developers realise that producing for one console operating system would be hugely beneficial due to costs and mass audience availability, then it will certainly become far more popular and will enter a snowball effect. I don't think Microsoft are paying enough attention to what Valve are about to do and they probably don't understand their own history to be able to spot another company doing exactly what they did to rise to the top. Valve's Steam Box == 'Console OS' (or in reality; Hardware to Software middleman), perfect position to make money.
