Microsoft had a major announcement this week for all of its gaming console fans. The company will no longer be producing any more Xbox 360’s. Microsoft released the first Xbox way back in 2005 to massive fanfare and spectacle. The initial launch was then followed up by the Xbox 360 model and together they have sold an incredible 90 million units worldwide. Microsoft said it would still sell remaining inventory and provide updates to software and support services, so the device will still be functional for years to come for its fans. What market watchers are curious about is what is next? Where will the company resources be diverted to and what will be the next big thing? Getting a 10-year run out of a piece of technology is what keeps giants like Microsoft solvent in the long term. Years of innovation pay off when they can milk sales for a decade like they did with Xbox. Microsoft needs to create its next home run.
The European Union has again levied charges of antitrust against US giant Google. The EU alleges that Google uses its dominance in the market in effect, to create more dominance, pushing out any competition that pops out. The charges center on Google’s Android operating system and how it forces the use of Google Chrome and their own app store. Eighty percent of smart phones in Europe are on the Android system. Google counters that they have open software that encourages collaboration and innovation with others. This is not the first time that EU has had issues with Google and there is still charge unresolved from 2010 involving Google’s shopping services. Many market watchers think Google will prevail but the process will prove costly. It makes others wonder what would happen if the EU stopped spending money focused on making Google weaker but on making their own innovation ecosystem stronger?
Another automaker was caught cheating on efficiency tests this week and investors are not happy. Mitsubishi Motors stock has taken a beating on news it was lying about its eK mini-wagon’s fuel efficiency and they were caught by partner firm Nissan, which makes a similar vehicle. An analyst estimates this mistake could cost the automaker $450 million in direct costs. The stock was indicating down a third of its value at Thursday’s market open on the news. This represents a drop of about $2.5 billion in company value overall….so far. Korean automakers Hyundai and Kia had similar problems in 2014 which cost those firms about $350 million each respectively.