On the Xbox 720, 640k, and throwing money

Jack Schofield has an article up on the Technology blog of the Guardian asking what the Xbox 720 (or whatever Microsoft decides to call the next Microsoft console) will be like.

While he really doesn’t speculate on what the imagined console will be like he does point out the amazing amounts of money that Microsoft can throw into the console just to make it something profitable. Here’s his words:

Remember, Microsoft has $40 billion in the bank, plus $1 billion a month in profits, and nothing to spend it on. In December, Microsoft gave $30 billion back to shareholders in a one-off distribution of wealth, and it’s disposing of another $30 billion buying back its own stock. Under the circumstances, it can easily afford to invest (or,if you prefer, lose) the odd billion a year in winning the console market. Over the next 10 to 20 years, the potential pay-off could be huge.

Now while we can’t disagree with that, we can disagree with this other passage that he said:

After that there will be the Xbox 370 or 720 or whatever, which will presumably use a compatible processor and have better graphics, but what else do gamers need? The “law of diminishing returns” is already setting in….

Wasn’t the “what else would they need” line said countless of times before, much to the dismay of many a business man who got left out? 640K of memory isn’t enough for anyone; even if Bill didn’t really say it.

Via Guardian

Jack Schofield has an article up on the Technology blog of the Guardian asking what the Xbox 720 (or whatever Microsoft decides to call the next Microsoft console) will be like.

While he really doesn’t speculate on what the imagined console will be like he does point out the amazing amounts of money that Microsoft can throw into the console just to make it something profitable. Here’s his words:

Remember, Microsoft has $40 billion in the bank, plus $1 billion a month in profits, and nothing to spend it on. In December, Microsoft gave $30 billion back to shareholders in a one-off distribution of wealth, and it’s disposing of another $30 billion buying back its own stock. Under the circumstances, it can easily afford to invest (or,if you prefer, lose) the odd billion a year in winning the console market. Over the next 10 to 20 years, the potential pay-off could be huge.

Now while we can’t disagree with that, we can disagree with this other passage that he said:

After that there will be the Xbox 370 or 720 or whatever, which will presumably use a compatible processor and have better graphics, but what else do gamers need? The “law of diminishing returns” is already setting in….

Wasn’t the “what else would they need” line said countless of times before, much to the dismay of many a business man who got left out? 640K of memory isn’t enough for anyone; even if Bill didn’t really say it.

Via Guardian