Hardware ultimately is a scale game, and it's a differentiation game. If you are literally selling products that are completely undifferentiated, like x86 servers, why would anybody pay you for that?
Sentiment: NEGATIVE
When you look at this and where it's all going, the hardware business requires a lot of investment. It's very hard, it's very expensive, and ramping up hard on any given platform, whether it's a console or any kind of PC or mobile device, going into the hardware business requires a lot of investment.
If you don't have content, you don't sell hardware. We need a suite of content of really fun, compelling experiences that aren't just hardcore game-oriented, and when that's good enough, it'll be an easy decision to go to the consumer market.
The whole hardware industry has experienced the phenomenon in which every time computers get cheaper, they appeal to a new set of users; every time they get more powerful, old customers upgrade.
In a sense, there is no such thing as a bargain in computing. Models which are popular sell for the price they are supposed to fetch for the best part of their product cycle.
It wasn't until the Apple Macintosh that people understood what true hardware-software integration was about. It took one company to line it up: low-cost hardware, cool graphics, third-party products built on top of it, in an all-in-one attractive package that was accessible to consumer marketing.
Computing shows up in many different ways. You have computing that you wear, computing that you carry. What you think of as the traditional PC market has a long tail of usage, particularly in the commercial world, but also in consumer.
So when we go into a large hardware bid, there is usually a services component that is part of that. So as we enter these deals, we tend to talk about the capabilities and what else needs to be done, and from there the bid might expand beyond hardware to the services.
People who are really serious about software should make their own hardware.
I don't care much about hardware. Nintendo games are some of the best games in the world, and from a more graphical standpoint, the Wii can't do what a PS3 or 360 can do.
I'm a massive believer in brands. Silicon Valley has tried to reprogram everybody to think brands aren't valuable. Or theirs are, but yours aren't.
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