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  Has Xbox transformed Microsoft?
Time: 08:11 EST/13:11 GMT | News Source: CNET | Posted By: Byron Hinson

Microsoft obviously knows how to dominate new markets--just ask any company that used to sell Web browsers or e-mail programs. But the market the software giant will enter with Thursday's release of the Xbox video game console is different from any arena the company has played in before. After two decades of primarily relying on business customers, Microsoft is spending billions of dollars to break into the ruthless gaming business--and it's resorted to some un-Microsoft tactics. Instead of using hard-nosed business tactics and savvy product-positioning to maintain captive markets, it must outplay two experienced and sharp competitors to pull discretionary income from finicky entertainment consumers.

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