Yeah, like they got out of the game console market when they were getting red rings of death. Or that time Windows ME was complete and utter crap, and they completely got out of the operating system market. Or that time they did something else wrong, and instead of firing everybody and getting out of the market, they learned from their mistake, came back, and fared very well or perhaps dominated it.
Microsoft, for all their power and ability, are not remotely above mistakes. They also do a pretty decent job of learning from them. I don't know of a home that doesn't have an Xbox 360 in it, or a home that doesn't have some installation of Windows in it.
Sure, it takes them awhile to hit their stride, but the worst thing anybody can do is discount them as a strong competitor, in any market they're in.
The fact is; Microsoft continues to make the mistakes because it never hurts them to make them. By now everyone expects this of MS [1] and everyone is used to not doing anything about it but complaining.
[1] As supporting data, I point to the other HN front page thread that points out the exception that proves the rule: Windows 7 has SP1 and no one cares.
Not necessarily disputing your point but those figures are for 2008.
Current sales figures are roughly 50m worldwide sales for the 360, 48m worldwide for the PS3 (having been available for a year less), 85m sales for the Wii. For reference worldwide sales for the PS2 are currently 150m (and still selling).
All figures for Dec 2010 / Jan 2011. Worth noting that if those figures don't tally with what you see around you, the Xbox360 is way bigger than the PS3 in the USA (18m to 10m I think), the PS3 either equals or beats it in all other markets (notably Japan and Europe).
So yes it's "one of the top selling consoles" and 50m units isn't exactly chopped liver, but it's pretty much third equal in the market. Also worth noting that the whole Xbox division has lost massive amounts over all time (though it's now profitable, it's never recouped the original investment).
But I would agree with the point that while they take time to hit their stride, they do get there and I think Kinnect is a good example of the fact that they're now executing pretty well in this space and indeed innovating which isn't usually a word you'd associate with Microsoft.
Nah, I'm serious - lot of folks have no interest in game consoles, and for those who do, my understanding was that the Wii outsold them both put together.
Microsoft, for all their power and ability, are not remotely above mistakes. They also do a pretty decent job of learning from them. I don't know of a home that doesn't have an Xbox 360 in it, or a home that doesn't have some installation of Windows in it.
Sure, it takes them awhile to hit their stride, but the worst thing anybody can do is discount them as a strong competitor, in any market they're in.