Microsoft may have just put another piece in place to create the ultimate platform.
Microsoft is getting into original programming.
It's going to start with content aimed at the core Xbox audience; however, it will most likely evolve from there to other audiences and users of the Xbox.
Much like YouTube original programming, this announcement by Microsoft is a game-changer for the future of television. It also places Microsoft in an extremely powerful position as it will own a significant part of the content supply chain (the hardware, the software and the content creation itself).
Here are some reasons why this move allows Microsoft to come closer to becoming the ultimate platform:
- Content created with the device in mind - The Xbox is interactive. A show could potentially become interactive ... how? Who knows. It is yet to be invented. The point is, the technology exists so it's just a matter of time until it actually happens.
- Advertising relevance will be made easy - Microsoft can offer advertisers something very, very enticing ... they know the kind of audience consuming a program ... and they have control over the interface through which that audience is consuming this program. This means ... if a show is talking about an app ... a download button could hypothetically appear on the screen, you could wave your hand, point to it and then it could start downloading directly to your Windows Phone. Not only will this change the way consumers interact with ads but it will also change the very notion of how ads are created. Value in advertising will become far more prevalent.
- The Xbox becomes an all-in-one device - No more cable, no more blu-ray player, no more multiple remotes. A TV ... and an Xbox. If Microsoft gets into TVs then they suddenly start selling living rooms. All the content you need: games, programs, the web ... all can be easily accessed through one device ... and due to the nature of the cloud, this device could theoretically move with you through your Windows Phone or even your Surface tablet.