The thing that's most interesting about all this is the predicament that Microsoft now finds itself in. They just lost two top guys - J. Allard & Robbie Bach - and you have to wonder just how rudderless Microsoft is at the moment. They've invested heavily in their core tech - mostly a good idea - but then they have really nothing to compete with Apple or Google in the mobile space, at least until their new phone os hits (and even then it faces a serious uphill battle). Balmer is probably wishing he had bought Palm at this point.
I wonder if Bach and/or Allard end up at Google... a GBox has a nice ring to it actually.
Man, what's really scary is that I thought this article was going to be about how MS lost out to HP in the Palm deal, and that's why they fired him. But it sounds like they never even considered this, and it was more about 'losing a key client'.
Wow, I really thought they had a better grasp of the market trends and were at least aware of the major problems they face.
The reality is we are going there because Google (along with Apple) are both developing 'connected tv's (aka, wifi enabled, OS running tv's). Not exactly an attempt to go right at Sony, Nintendo, etc, but Apple has shown how disruptive a sideways entry into a new market can be (or was that more of a happy accident stumble sideways?). Plus, I think the 'game companies' fail to recognize what a huge market casual games are and for most people, that's plenty enough to keep them happy.
That seems like the sort of market that google is going to win. Apple is going to want to sell you an Apple-branded piece of hardware (either a TV or a box) that lets your TV do new things. Google will simply license their technology to Samsung, LG, Panasonic and all the other existing TV manufacturers and have it built in to every TV that gets shipped.
(Except maybe Sony, who will probably attempt to build their own system. It won't work very well outside Japan.)
I wonder if Bach and/or Allard end up at Google... a GBox has a nice ring to it actually.