Linked by Thom Holwerda on Thu 26th Jul 2012 00:28 UTC
Games Valve's Gabe Newall on Linux and Windows 8: "We want to make it as easy as possible for the 2500 games on Steam to run on Linux as well. It's a hedging strategy. I think Windows 8 is a catastrophe for everyone in the PC space. I think we'll lose some of the top-tier PC/OEMs, who will exit the market. I think margins will be destroyed for a bunch of people. If that's true, then it will be good to have alternatives to hedge against that eventuality."
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RE: Gabe's sky is falling
by Chrispynutt on Thu 26th Jul 2012 12:09 UTC in reply to "Gabe's sky is falling"
Chrispynutt
Member since:
2012-03-14

I think he means margins in the PC business.

The great white hope of PC hardware has been the Ultrabook. They hoped to get away from wafer thin margins with that. It hasn't worked. Acer for example just had to make a few bad moves and they slumped down the rankings, like HP to an extent.

There is desperation for the PC business to get out of the race for the bottom. By hacking in touch and all that in the next great White hope is in Software, Windows 8. The OEMs are hoping against hope that they can get ahead by enhancing the market they already exist in. Dell, HP, Acer and Lenovo have either failed or just not done well in the expanding mobile market.

They want some high margins to give them a buffer against the odd strategic mistake.

If Windows 8 fails, it will be another generation of Windows where the race to the bottom is still in place in a shaky global financial market. It is not unreasonable to think that an Acer or HP PC business could full on fail.

Yahoo was at the top once, everybody needed search and Yahoo was search. The desktop PC market doesn't owe any OEM or OS maker. It just has to do what people want.

Reply Parent Score: 3

RE[2]: Gabe's sky is falling
by kaiwai on Thu 26th Jul 2012 15:48 in reply to "RE: Gabe's sky is falling"
kaiwai Member since:
2005-07-06

I think he means margins in the PC business.

The great white hope of PC hardware has been the Ultrabook. They hoped to get away from wafer thin margins with that. It hasn't worked. Acer for example just had to make a few bad moves and they slumped down the rankings, like HP to an extent.

There is desperation for the PC business to get out of the race for the bottom. By hacking in touch and all that in the next great White hope is in Software, Windows 8. The OEMs are hoping against hope that they can get ahead by enhancing the market they already exist in. Dell, HP, Acer and Lenovo have either failed or just not done well in the expanding mobile market.

They want some high margins to give them a buffer against the odd strategic mistake.

If Windows 8 fails, it will be another generation of Windows where the race to the bottom is still in place in a shaky global financial market. It is not unreasonable to think that an Acer or HP PC business could full on fail.

Yahoo was at the top once, everybody needed search and Yahoo was search. The desktop PC market doesn't owe any OEM or OS maker. It just has to do what people want.


Each of the vendors also ignore why Apple can command the margins they do - because they actually are different. What is the difference between a HP, ASUS and Acer? they all run Windows, they all pretty much have the same hardware inside, all their call centres are located in Timbuktu and serviced by a person whose 5th language happens to be English, there is nothing that really makes a user want to stay loyal to that company so is anyone surprised that the only aspect left of their product is price?

The great saviour to the PC industry is consolidation and each vendor developing their own in house operating system - with an ecosystem around that operating system which gives the customer a uniquely HP, Dell or Lenovo experience. When the vendor can control the experience they can ensure that the customers are happy and become repeat customers rather than viewing their products as interchangeable with any other product out there.

Edited 2012-07-26 15:48 UTC

Reply Parent Score: 1

RE[3]: Gabe's sky is falling
by moondevil on Thu 26th Jul 2012 16:59 in reply to "RE[2]: Gabe's sky is falling"
moondevil Member since:
2005-07-08

The great saviour to the PC industry is consolidation and each vendor developing their own in house operating system - with an ecosystem around that operating system which gives the customer a uniquely HP, Dell or Lenovo experience. When the vendor can control the experience they can ensure that the customers are happy and become repeat customers rather than viewing their products as interchangeable with any other product out there.


Somehow I have the feeling this will mean HP Linux, Dell Linux, Lenovo Linux, OEM Vendor XYZ Linux, all with its own quirks and bloatware. Or some other cheap alternative OS.

Because having a standard OS distribution regardless of which OS, is no different than the actual situation with Windows, in differention terms.

The only way to properly differentiate, like it used to be before the IBM PC was introduced, leads to bigger development costs.

Reply Parent Score: 4

RE[3]: Gabe's sky is falling
by bassbeast on Thu 26th Jul 2012 17:59 in reply to "RE[2]: Gabe's sky is falling"
bassbeast Member since:
2007-11-11

Apple commands the margins they do because its fashion friend, nothing more. Look up the numbers and their failure rates are no different than anybody else and they simply tack on a new feature like Retina (which frankly PC vendors have had high end HD screens for years, its just a niche most never looked at because it was more expensive) and people WILL buy because its not cool to have last year's Apple anymore than it is to wear last season's clothes.

Not that there is anything wrong with that, Nike has made a mint off fashion with the Air Jordans, Gucci, Prada, there is high margins and good money to be made in fashion. But you look at the chips in their X86 line and they are always behind the curve, and you always pay more for less than what you get from the other vendors.

So please don't act like its some "sterling reputation for excellence" that lets Apple charge what they do, its because that Apple logo tells the world you spent more money than the other guy, no different than the "I Am Rich" app that would have never sold in a million years on android or WinPhone. The mistake the Windows OEMs are making is thinking they can slap out a $1500 laptop and anybody will care. Its just not cool to have a Dell or HP logo on the top like it is to have the Apple logo, just like those Payless sneakers aren't cool like having a pair of Jordans.

Its like slapping a higher price on Mickey D's and thinking that means they can compete with Olive Garden, or thinking a $100,000 sticker on a Mustang means it can compete with a Ferrari, it just don't work that way.

Reply Parent Score: 2