The following an excerpt of a Research Report published by Directions on Microsoft, an
independent research firm focused exclusively on Microsoft strategy & technology. More samples of our content, as well as a list of upcoming articles and
reports are also available.
The underlying technologies and strategic reasoning behind Microsoft's digital media products and services, including Windows Vista and Xbox 360, and likely future directions
Establishing the PC as a home entertainment device would spur consumer upgrades and create opportunities for partners, but consumer resistance is forcing Microsoft to take other approaches as well
Understanding the Pieces
Microsoft's home entertainment strategy has four main parts: the Windows PC, portable and networked devices, content sources, and the Windows Media Platform
Vista Focuses on Video
Vista will improve the PC's capabilities as a home entertainment device, particularly for high-definition video, and will include new copy-protection technology
Devices Connect to the PC
To help establish the Windows PC as a home entertainment device, Microsoft has taken steps to ensure that portable and networked devices can retrieve content from it
Beyond the PC
With Xbox 360 and its TV platforms, Microsoft could gain an entry into the homes of consumers who don't yet see the PC as part of their home entertainment system
Challenges and Future Directions
The biggest challenge to Microsoft's home entertainment strategy is convincing consumers that the PC offers enough benefits as a home entertainment device to make up for its complexity and cost
Resources
Links to more information about the products and technologies discussed in the Apr. 2006 Research Report, 'Microsoft's Home Entertainment Strategy.'
Appendix: The Windows Media Platform
The Windows Media platform supplies a standard set of software components for encoding and protecting digital audio and video