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Mr Z
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Medial • 1m
In 2002, Microsoft took one of the craziest gambles in corporate history: Microsoft started CHARGING for something everyone else gave away for free. The industry laughed. But this ONE decision created a $70 BILLION product. Here's how Microsoft saw the future: In 2006, the gaming world was dominated by the PlayStation 2 and Nintendo. While Microsoft’s Xbox struggled, selling only 24M units and losing $100 per console. But Microsoft saw the future: gaming was becoming social. With the rise of broadband, they launched Xbox Live in 2002, offering gamertags, unified profiles, and real-time voice chat. The bold move? Charging for online gaming, which critics called a mistake. However, it funded dedicated servers and innovation. Proven with Halo 2’s 2004 success: $125M in day-one sales and 2M Xbox Live subscribers. By 2008, Xbox Live set industry standards with ESPN content, Netflix streaming, and social media features, transforming gaming into a connected, global experience.
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