How important is Xbox 360 for Microsoft?

One of the most interesting theories for why Xbox is so important to MS comes from Michael Gartenberg from Jupiterresearch. It says, 'Xbox 360 is more than a videogame console. With links to broadband via it's built in Ethernet, wireless support, built in Windows Media connect and Media Center Extender and the potential capacity for large storage capabilities, Xbox 360 is clearly poised as a Trojan horse ready to invade the living rooms of Windows users everywhere and leverage their PCs as media hubs, their MSN messenger IDs and happily deliver PVR functions via Media Center, as well as music, messaging and other software services that Microsoft will happily charge for.' Read the complete text here. I must admit that I couldn't help but get impressed with his analysis on this.

Carl in his blog writes an interesting piece on MS's 'Sold Out' Strategy. He quotes Gizmodo saying that Microsoft is requiring Norwegian retailers to guarantee all their XBox 360 units be sold out on the day of release and not only that, at least two games are sold with the consoles!! These goals, he says, are intended to maximize both PR value and the retail ticket sale on what stock they have noting that Microsoft is only supplying half as many $299 Base model Xbox 360s as the more full-featured Premium versions, showing that the $399 model is the preferred product. Read Carl's entire post here with links to the prior predictions on this. Even we think it was a brilliant marketing strategy by MS that is not only admirable but strictly speaking it smells of sharp practices. But then when it comes to that, MS, is the world leader. However, having said that, one must admit that given that what MS has given us in information technology and done in the field of technology, there is no room for complaining. Without MS, we wouldn't have Xbox 360 today, right? What do you say?