Microsoft Corporation (MSFT): Why Everyone Will Buy the Xbox One

Today’s Trend: Integration

Apple Inc. (NASDAQ:AAPL) has been a pretty good indicator of where consumer preferences are headed. The chart below shows quarterly iPhone (blue) and iPad (green) sales year-over-year since mid-2008.

At the beginning there was rapid growth. But now, five years later, we are still seeing growth rates well above 50%. Fifty percent! During the same time that video-game console sales were declining, Apple Inc. (NASDAQ:AAPL)’s iPhone and iPad have consistently shown positive growth in quarterly sales year over year. The takeaway here is that Apple Inc. (NASDAQ:AAPL)’s products offer consumers more ways to integrate multiple functions into individual devices. And the growth trend proves that consumers continue to want more of it.

Google takes it up a notch

Google Inc (NASDAQ:GOOG) has picked up on the same trend with its exciting Google Glass project. The wearable computer allows users to integrate their online activities further into their everyday movements. With the built-in camera, users can share what they see with their friends online. Google Glass also combines driving navigation, text messaging, and Google Inc (NASDAQ:GOOG) search capabilities into one device.

Even more exciting, Google Inc (NASDAQ:GOOG) finished accepting public applications for Glass Explorers this week. Regular people (non-developers) are already getting to try out Glass!

Reading the trend

If mobile devices can do so much, then stationary home entertainment systems absolutely must be able to multi-task. Video-game consoles can no longer afford to be a one-trick pony. The success of Microsoft Corporation (NASDAQ:MSFT)’s Xbox One will depend primarily on its ability to seamlessly integrate video gaming with other home entertainment functions. I believe that Microsoft Corporation (NASDAQ:MSFT) has correctly read the trends in digital technology.

So, come Christmas time, the wait will be over. You’ll finally be able to do three of life’s most important functions at the same time: watch TV, talk on the phone, and play video games. And that’s why everyone will buy the Xbox One.

Article by Nathan Adamo, edited by Chris Marasco. Neither has a position in any stocks mentioned. The Motley Fool recommends Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG). The Motley Fool owns shares of Apple, Google, International Business Machines Corp. (NYSE:IBM), and Microsoft Corporation (NASDAQ:MSFT).

The article Why Everyone Will Buy the Xbox One originally appeared on Fool.com.

Marie is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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