The last uncertainty which contributes to the malaise gripping the market is related to Microsoft; in that no-one seems to know what the Redmond Rangers want to do in relation to games. In light of Judge Thomas Penfield Jackson's findings, there are a number of possible outcomes. Firstly, Microsoft could be broken down into little autonomous companies, loosely tagged 'BBBBU's' (again to paraphrase Dilbert, Battlin' Baby Bill Business Units). If this happened, one of the units would almost certainly be a Games and Entertainment Unit, with a very large cash reserve and comparatively a very strong line-up of products. If this happened, I believe that initially it would fillip the industry, in some ways giving it more credibility (even though existing companies would still see their stock prices fall, as a result of having a new, M-sized competitor). However, in the long term I do not think it would have a truly significant effect, other than adding one more player into an already 'overcrowded arena' (John McRae).
Secondly, Microsoft could be forced to limit its activities, and would in this case probably pull out of the games market altogether, given that it provides a small part of the overall corporate picture. This would be a blow to the market, believe it or not, as it would belittle the games industry in the eyes of analysts, and almost certainly finish the proposed X-Box initiative (see previous articles). It would also give EA another huge boost, as one of its prospective main competitors would have been removed, and EA is currently the only manufacturer who could afford to grow to fill the market space left my Microsoft. They would also be favourites to buy Microsoft's development divisions, as they have by far the most ready cash of any of the companies.
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