Bonum Certa Men Certa

Microsoft Failed in the Hardware Business

Co-authored with G. Forbes

Microchip



Summary: The Xbox exodus continues and Microsoft cannot get it right in hardware

While Microsoft has many obviously problematic areas, it is notably hardware that has consistently been trouble for this software monopolist. Some of the most glaring examples of Microsoft's hardware ineptness have been the Xbox, Zune, and KIN. All of these treasures have brought failures, both in sales as well as in build quality. We have written many posts on this subject and have elaborated on the resulting losses to Microsoft (we had mentioned Microsoft's debt earlier today too) and its customers. Microsoft is currently leaning on Nokia to help make up for this enormous deficit. Ultimately, it is a strategic error for a very glaring reason; Vista Phony 7 is an unappealing and mediocre platform, one that sources claim has been adopted by a mere 1.6 million users. Plus, this unproductive manoeuvrer by Microsoft will also likely result in the mutual crippling, if not killing, of Nokia as well; this possibility has also been covered by Techrights.



Speaking of crippling, yet another major Microsoft employee is quitting. This time, it is a key member of the Xbox team, the last of the of original founders of the project in fact:

Otto Berkes, one of the primary founders of the original Xbox, has left Microsoft after 18 years at the company.

His departure marks the end of an era at Microsoft. The company continues to struggle to create new businesses that were as successful as the Xbox, which is now generating billions of dollars in revenue for Microsoft.

Berkes resigned yesterday. He started in 1993 at Microsoft as the lead programmer on the Windows graphics team. In 1998, he teamed up with Microsoft tech evangelist Ted Hase to create a Windows gaming machine. They were joined by Seamus Blackley and Kevin Bachus. All have since departed, as have other early advocates of the Xbox such as Ed Fries, Cameron Ferroni, J Allard and Robbie Bach. Berkes’ story was one of many I wrote about in my first book, Opening the Xbox.


We have been closely documenting the Xbox staff exodus. This latest departure provides yet one more sign that the Xbox has failed, contrary to all the hype. This is consistent when the real sales figures are examined; the losses worldwide eclipse any sales "success" in North America.

Recent Techrights' Posts

BASIC Predates Microsoft by Over a Decade, Microsoft-Controlled Sites Like The Register MS Don't Want You to Know This
The state of the media is really bad when it relies a lot on oligarchs' money and is appointing editors who are working for oligarchs
 
Slopwatch: Small Parade of Fake News About "Linux" and Scams Borrowing the Name (or Word) "Linux"
In practice, LLMs are a risk
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, September 05, 2025
IRC logs for Friday, September 05, 2025
Genini Links 05/09/2025: Community, ROOPHLOCH, and PITkit
Links for the day
Links 05/09/2025: Vaccine Sceptics Poison the Well, Two Exploited Vulnerabilities Patched in Android
Links for the day
Gemini Links 05/09/2025: Logitech Lift and DIY Gemini Servers
Links for the day
Links 05/09/2025: Sainsbury's Caught Spying on In-Store Shoppers and Microsoft "OpenAI is Using Legal Threats to Harass its Critics"
Links for the day
Analogies for "Memory Safety" in Rust
Don't worry, it's Rust! It can do anything!
Brian Kernighan, "Only Third to Dennis Richie and Ken Thompson" (UNIX), Agreed With Someone Who Said Rust Was Just Hype, Should Not Replace C
17 hours ago
Reminder: Microsoft's "Secure Boot" Certificate for "Linux" Will be Expired in One Week
Many PCs won't manage to 'rotate' to another certificate
"Many of the Red Hat Employees Are Still Looking for Work"
Shame on IBM's CEO
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, September 04, 2025
IRC logs for Thursday, September 04, 2025
Microsoft Started With Code Literally From The Trash, Nothing Has Improved Since
The reality is, there are systems and code that are reliable. But they're not Microsoft's.
Hypothesis That New McKinsey/Microsoft Executive Inside Red Hat Will Outsource Research and Development Operations to India (Like They Do in IBM)
IBM is floundering
Slopwatch: Scams, Fake Articles About "Linux", Plagiarism, and Worse
Perhaps some time soon the LLMs or the "Big LLMs" will run out of money (to borrow) and go offline, leaving those slopfarms in a tough place
Gemini Links 04/09/2025: Means of Production and Rusting Out
Links for the day
Links 04/09/2025: Science, Hardware, and Eyes on China
Links for the day
Gemini Links 04/09/2025: Digital Minimalism and Social Control Media
Links for the day
IBM's GNU/Linux Divestment, Based on Hard But Anecdotal Evidence (IBM Fails to Recognise How Much Money It Made and Can Still Make From "Linux")
Love us or hate us, a lot of what we've been saying about Red Hat under IBM turns out to be rather accurate
Links 04/09/2025: Massive Microsoft Staff Cuts (Barely Reported), "Strange Conspiracy Theory Is Reportedly Spreading Inside OpenAI"
Links for the day
Activists Can Win, But Keep an Eye on the Ball and on the Trophy
GitHub is dying, it was a loss-making trap, not free hosting
Gemini Links 04/09/2025: Katrina Remembered, Distracted Driving, and Virtual Economics
Links for the day
At This Point It's No Longer Matthew Garrett But People Who Fund Matthew Garrett (or Companies That Fund His SLAPPs Against My Wife and I)
The only thing worse than misogynists are misogynists who fail to respect other people's right to go on holiday
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, September 03, 2025
IRC logs for Wednesday, September 03, 2025
The UEFI 9/11 - Part VI - This Serious Harm Was Planned for Over a Decade, Not an Accident or Merely Some Misfortune
The term "Serious Harm" is legally meaningful here
GNOME Unfit for Diversity and Inclusion
GNOME's leadership is using "bad words"
Brodie Robertson Addressing the Recently-Discovered Comments
Most people probably knew nothing about this until he wrote a response
Red Hat QA Team "Had Shrunk by Half Over the Past Year." (After IBM Divestment)
If Red Hat's workforce is being moved to the East, then RHEL can become a national security problem
Slopwatch: "Open Source" and "Linux" News Faked, Made by Bots and Entered Into Google News
Spam combined with slop about "Linux" has entered Google News