Earlier quoted context omitted.
I addressed XBox specifically. They wrote off $1.5Bn over the XBox 360 red rings of death issue. It's possible they might have recouped that since, with inflation and interest adjustment, but doubtful. Windows and Azure are the tent poles I was thinking of when I said they had more than one now. I tend to see Windows and Office as fundamentally the same business though, along with development tools, in the same way t…
> I tend to see Windows and Office as fundamentally the same business though, along with development tools, i What? Windows, Office ( cross-platform since recently) and dev tools are totally different cash cows. The ring of death ( = console) isn't even related to the cash cow in consoles. It's the 30% commission on 60€ games. Anti-competitive behavior for not releasing it to other platforms in the past, doesn't mean…
Office for Windows was released in the same year as Windows 3.0, supporting all the new core technologies including OLE. Before then MS desktop software products were also-rans. From this point on they dominated, because they had been engineered natively for Windows right alongside the development of Windows itself before any of their competitors even had access to the frameworks and dev tools, or Windows 3.0 to develop and test on. It was part of a single coherent integrated platform strategy for Windows. Now it's grown beyond the platform, but the reason it matters is because of it's privileged position on the Windows platform.
XBox just doesn't matter. It's not big enough. If it died, Microsoft's bottom line would barely shift. Office does matter, we just see it's strategic position differently.