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Microsoft's Strategy for the Family Room

Techstination feature for Wednesday, April 5, 2006

Microsoft's strategy for the family room. Bloomberg Boot Camp, a report on today's technology. Besides the Xbox 360, which Microsoft hopes will win a place in millions of family rooms, the company has high hopes for media center PCs, even though a delay in the next version of Windows until next year doesn't bode well for sales this year. And Microsoft hopes to cash in on new TV services over high speed Internet lines that are being rolled out by AT&T and Verizon. How will it all be tied together. Microsoft's president for entertainment and devices, Robbie Bach

One of the things that ties all of them together is that they will be networked devices. And the idea that a user will have a network in their home and will be able to see and interact with their media on whatever device they're using at the time, access the information across the network at the time, is a very powerful idea. I also think they all have in common that services are going to be an important part of the business model. In the case of IPTV, the network providers are going to be providing the service itself, we'll do a lot of the technical work. In the case of the Xbox, we do the service ourselves. Both of those are interesting models for the future...

The Xbox360 is getting a boost from a delay until November of Sony's next generation console, the PlayStation3. How will Microsoft fare, however, once the PS3 arrives with all of the hoopla surrounding a launch before the holidays.

I think people are very excited about the content on the Xbox 360 and that's what's going to continue to drive sales, that's what's always driven sales in that market place...

Microsoft entertainment and devices president Robbie Bach. Bloomberg Boot Camp, I'm Fred Fishkin.