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Windows 8 : End Game? (Part 4)

10/26/2012 9:16:13 AM

There are two ways to view the strategy that Microsoft is adopting in respect of Windows, depending how generous you're willing to be.

There's the optimistic one, where in its efforts to build a future for the company and its operating systems things are forced to change, and there's collateral damage to software developers that it would like to avoid (or hasn't even considered).

Or, Microsoft would like to put all the gaming eggs in the Xbox basket, and games on the PC don't contribute anything to the long term profitability of Microsoft, so they can be burned and those who develop them can work on console games.

Description: http://gaygamer.net/images/xbox_console.jpg

The Xbox

I'd have liked to have given Microsoft some scope for the first possibility, but the closer we get to the launch of Windows 8, the latter analysis seems the inescapable conclusion.

What's at the heart of all this is pure commercial envy of what Apple has managed to achieve with its own 'walled garden' model. By doing this Apple gets a cut of everything that's sold for its hardware and OS, making it obscenely profitable. However, this success has come at the expense of software developers' income and the pockets of the purchasing public.

But then these changes aren't just impacting games, they're potentially undermining application development across the board. Would we like a PC exclusively populated with Microsoft approved applications?

Description: http://www.sectechno.com/wp-content/uploads/2009/09/vista-patch-bandaid-sp1.jpg

“What Microsoft has planned isn’t just bad for the games developers but for the all those involved in software development for the PC”

Microsoft’s problem is that Apple laid out this model from the outset. By buying an iPhone or an iPad you're agreeing to the scheme, and as a developer you can only make and distribute software through its approved mechanism. It's a choice...of a sort.

“What Microsoft has planned isn’t just bad for the games developers but for the all those involved in software development for the PC”

But the world of Windows has been entirely different: One where you could write your own code, sell it how you wanted and have people install it at their behest.

The gamble that Microsoft is taking is that it can shift from an open situation to a closed one without everyone throwing up their hands and refusing to get on board.

Windows 8 is probably a stepping stone to that objective, where initially there is the old Windows 7 open side, and a new Windows 8 'Metro' closed side. What's the money that Windows 9 only has other closed side, as per Windows RT? Or is x86 Windows 8 going to be closer than anyone expected from the outset? That's a genuinely scary thought for anyone that likes market competition and free software.

But there is another problem here, and one that had dogged Microsoft for some time. It's the one that accompanies all successful companies that try to rig the game to their own advantage - antitrust litigation.

The warning sign for Microsoft is a problem that Apple has run into regarding the pricing of eBooks, where its undue influence in that sector has come under the spotlight. The bigger a player Apple becomes, the more likely it is that it will exceed its own commercial scope in a way that ends up with it being dragged into court for exactly the same sorts of things Microsoft got slapped back for doing in the 90s.

There's an interesting parallel here to the Hollywood movie companies of the 1950s. The power of companies like Warner Brothers at the time was simply huge because they controlled a 'vertical market'. By that I mean they owned the film stars and production people, the studios where the movies where made, the distributers, and the movie houses where the films played. The normal mechanism where a product must have a market got entirely subverted, which is why the 'B' movie existed. Hollywood at the time needed production to fill cinema screens for 52 weeks each year, and the concept of a demand driven market got entirely bent. Independent film makers were excluded from the system, and so couldn't get their projects funded, shot, distributed or screened.

Those in power knew this was wrong in the 30s, but it took until 1948 for the US Supreme Court to determine that for producers and distributors also to own cinema chains amounted to 'price-fixing conspiracies', and it forced the distributers to sell off their cinema chains, breaking the vertical market forever. History lesson’s over.

Other than Apple writing all the software itself, this is exactly what it too has been allowed to do, because it can exclude any other company from producing alternative operating systems for its own hardware, and then exclusively control what apps go on to its products, taking a cut of any sales in the process.

Description: I can't see it's going to achieve what Microsoft thinks it will, and the company that isn't the most popular in the tech sector might actually find another Vista-like wholesale rejection on their hands, again.

I can't see it's going to achieve what Microsoft thinks it will, and the company that isn't the most popular in the tech sector might actually find another Vista-like wholesale rejection on their hands, again.

What's slightly odd is that Apple has been allowed to so far get away with this, given the Hollywood example, though the company does seem to get cut some slack where others might not get the same treatment. Why I've no idea, but the millions it spends in lobbying the US Congress and Senate is clearly money well spent.

The bigger question must be is if Microsoft pulls the same trick will people still ignore the vertically stacked elephants in this room? Somehow, I doubt it. And, worryingly for Apple, it might actually highlight what it has been doing for longer, and draw fire on it.

What Microsoft has planned isn't just bad for the games developers, which it patently is, but for the all those involved in software development for the PC. The sooner that people wake up to this, and consumers appreciate what's being proposed here, the sooner Microsoft can get the message, loud and clear that PC users won't put up with having a walled garden built around them through stealth.

And perhaps the question it really needs to ask itself is, if both it and Apple operate in such a draconian fashion, which of the two will you, the consumer, pick, and what third option would appear to fill the void of those who don't want either?

However this goes, I can't see it's going to achieve what Microsoft thinks it will, and the company that isn't the most popular in the tech sector might actually find another Vista-like wholesale rejection on their hands, again.

Vista managed to upset the buying public and PC hardware makers, but with Windows 8 Microsoft might manage the triple score of including software developers in the legions of those unhappy.

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