Tuesday, February 15, 2011

Microsoft (NASDAQ:MSFT) Phone Software will Connect to Xbox

Since the announcement by Nokia (NYSE:NOK) that they'll partner with Microsoft (NASDAQ:MSFT) to use Windows Phone 7 as their major platform, Microsoft and CEO Steve Ballmer have rightly started to talk up the positives of the deal, with one of the latest being the connection of Windows Phone 7 with the popular Xbox.

Also wisely, Ballmer not only used the Xbox when displaying the software upgrade and connection, but also used the wildly popular Kinect to give a demonstration of the possibilities that could emerge from it.

Tying in two of the most popular products they now carry in the younger demographic is smart, as they need to attract more interest to Windows Phone 7, and ultimately, to Nokia's handsets as well.

Speaking at Mobile World Congress in Barcelona, Spain, Ballmer added the company will be improving multitasking and the speed of the browser used in the smartphone platform.

Similar to their major smartphone competitors on the higher-end: Google-based (NASDAQ:GOOG) Android phones and Apple (NASDAQ:AAPL) iPhones, Microsoft needs to communicate every improvement and mobile software upgrade on a consistent basis, and generate continual buzz to keep themselves positioned in the minds of users.

The low-end and smartphone war is really just beginning, and even with the large lead on the high end of the market their competitors now enjoy, there is plenty of room for growth and grabbing of market share, and if Microsoft and Nokia do this right, it could be a surprise partnership generating billions in revenue and earnings for investors.

Again, Microsoft needs to ramp up and continue to upgrade and announcement over and over what they're doing and the value it brings to the end-users. If they do that, they could turn things around and surprise a lot of people. The mobile and smartphone war is far from over, it's going to get very interesting if Nokia and Microsoft make this partnership work.

Nokia closed Monday at $8.84, falling $0.52, or 5.56 percent. Microsoft closed at $27.23, down $0.02, or 0.07 percent.

1 comment:

Anonymous said...

you are one of the few poeple who understands how fickle the consumer market can be and how the smartphone market is still completely for grabs. people forget that until 2007 neither apple nor google even existed in this arena and they did the right products to grab a huge share of the market. but this is only just beginning and wp7 seems to be poised to take back a great deal of that share if msft continues to execute at this level.