network effects

Speaking of videogames, Electronic Arts announced an interesting offer in EA Access: for $5 a month or $30 a year, Xbox One owners can play all the games in EA’s so-called Vault, which currently consists of FIFA 14, Madden NFL 25, Peggle 2 and Battlefield 4; with presumably more in the pipeline.

You can also get 10% off EA titles purchased through the Xbox One game store.  If you’re planning on buying even one EA game, it’s worth getting EA Access for the 10%.  Essentially, EA Access comes free for one month with every >$50 game purchase.

This appears to be a modified approach of in-app purchases on mobile; i.e. lower barriers to adoption, create stickiness once adopted and monetize later via downloadable content.  If successful, it might even create network effects.

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Ten years ago, when Microsoft had more than 90% control of the computer market, they were handcuffed in how they can innovate Windows due to anti-trust concerns.  Some things were already obvious even for Vista (at least to me while I was there): native security, centralized app store, collaboration, etc.

The reality today is that Microsoft has merely 14% share of the larger devices market.  So Microsoft was finally able to build in security and an app store into Windows 8.  They misfired on the latter however by making it unpleasant for those living in the desktop world to download and use Modern apps; an error they are fixing for Windows 9.

Windows is in danger of losing relevance in today’s mobile world.  The brain trust in Redmond is busy figuring out how to catch up with Windows Phone, but it would be a great mistake to put Windows into maintenance mode.  Windows is still one of Microsoft’s greatest assets, and instead of fighting losing battles, they should be building more strengths unique to Windows.  Especially now that they don’t have to answer to regulators.

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