published by Indigo Productions


Microsoft Leverages Xbox to Enter the Video Production Industry

Microsoft Corporation Xbox Console

Microsoft Corporation Xbox Console

According to Nancy Tellem, Microsoft’s Corporate VP, the tech giant has hired 150 professionals for its new video production studio in Santa Monica in Los Angeles County, California.

Microsoft Corporation has always been know for entering new industries, from software development, through search engines, to now video production and content creation. Over the years Bill Gates and Steve Ballmer utilized their competitive advantage from one industry and leverage its brand and market power to enter and dominate a new industry. With over 75 millions of Xbox consoles sold worldwide and a 46 million-strong subscriber base for their Xbox Live online delivery service for games and digital content, Microsoft already has an audience ready to swallow whatever content they choose to create.

Microsoft is planning to use this audience for distribution of interactive content. As well they should, since an average Xbox user spends 86 hours per month in front of their console – majority of that time is spent on content other than games. With the computing power of the Xbox console, as well as it’s Internet connection and the Kinect motion sensor, Microsoft has the capability to take the user experience to the next level — and make money through advertising.  What Nancy Tellem does not want to do is for Microsoft to become a digital alternative to cable TV. Part of the reason is its unwillingness to alienate the existing content providers — once again, the source of advertising revenue for Microsoft.

While at first glance entrance into the market of such a giant as the Microsoft Corporation might not bode well for existing video production companies, the benefits might outweigh the  disadvantages. For one, free market economy wouldn’t truly be free without competition. it is competition that drives innovation. Businesses need to constantly improve its offering to provide a better service and/or product than their competition. Ultimately, it is the consumer that benefits the most from this competition by getting a better product, which often translate into higher ROI!

Moreover, as mentioned above, Microsoft’s video production and content creation arm has access to a lot of resources not limited to finances – by combining the human potential employed by Microsoft and the variety of technologies at their disposal, they might very well create new trends that will benefit the entire video production industry! Quality and top-of-the line service is one of the founding principles at Indigo Productions and we welcome the challenge – bring it on Microsoft!

Some of Microsoft’s productions have already leaked to the public and demonstrate the corporation’s prowess in all aspects of video production:

After watching the outstanding example of Microsoft productions you might be tempted to rush and ask Microsoft for a quote but STOP! Remember about the competition part! To compare with a more established video production company, such as Indigo Productions, please check out our online video portfolio on our website:

The choice is YOURS!


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Category: Video Production News, Viral Videos
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