At a Northwest Entrepreneur Network event in Seattle, former president of Microsoft’s Entertainment & Devices Division, Robbie Bach, spoke about the success of the Xbox business, and how Microsoft capitalized on mistakes made by competitor Sony with the PlayStation 3.

“Sony mismanaged its 70 percent market share,” Bach said [via GeekWire]. “The transition to PlayStation 3 was really, really bad. And really hard. They mismanaged their partners, they mismanaged their cost structure. They made their next platform so complicated that developers couldn’t develop for it.”

Bach says Microsoft’s ability to strike up strong partnerships with publishers like EA and Activision is another reason for the success of the Xbox 360.

“It turns out we were able to convince retailers and publishers like Activision, Electronic Arts and others, that it was a good thing for Microsoft to be successful, because if we were not successful, the only game in town was Sony. Being dependant on somebody else was bad for them, and so they supported us disproportionately to what they should have, mathematically,”.

But it wasn’t all cherry at Microsoft. Who can forget the infamous RROD disaster? Bach certainly doesn’t . He calls it “the most painful thing in my life,” but, “the company persevered through that.”

This is interesting seeing how Microsoft, or at least Bach working at Microsoft was thinking when the “console war” was first starting. He also talks about how Apple does business extremely well and why the Microsoft Zune failed.

Read the full in-depth article at GeekWire.

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