You realize that you're comparing Microsoft moving Netflix subscriptions to Apple moving product for the entire music industry, selling TV episodes for shows that otherwise that would get cancelled in some cases, movies, and a plethora of podcasts from just about anyone that has something to share with others. I realize the AppleTV has not been a hit but you can't discount that just about every consumer electronic for car and home has some sort of connectivity to an iPod. Try comparing those numbers and then we'll talk.

I don't know about this beating business.

this is a stock trading an not a consumer site and to investors a company to be 'beating' another it has to be making more money. Having more features and services but losing money isn't beating.

Fact is Microsoft's Entertainment and Devices division which holds Xbox, Zune, Media Downloads, Games, Peripherals, Windows Mobile and other services LOST 31 million last quarter.

MS E&D is roughly equal to Apple App Store, iTunes, Apple TV, Apple peripherals, iPod and iPhone. Imagine if Apple's group LOST money.

So from a stock investors point of view MS isn't beating Apple. Maybe Apple doesn't want to follow MS as it's losing money running it's Entertainment business?

What a sad little blog post. No sales figures - no links to support 'facts'.

As Dave rightly points out, the Xbox adding Netflix means very little to MS' bottom line - as the Xbox Division is still $15 BILLION in the red since inception - any shareholders think spending $25 billion to make $10 billion is a wise investment. MS has already failed with Home Media PC's and in fact, MS has had ZERO successes with consumers since 1998 and this is basically a desperate attempt to create value to average consumers for the Xbox which MS had hopes would reach mass market but will never happen - thanks to the Wii & their own disdain of consumers (red ring of death?, send it to us and we'll have it back to you in 6 weeks). While the Apple Tv is not a blazing success, it's built upon iTunes and the Apple Tv is basically a Mac Mini without a hard drive - hardly much R&D there while the Xbox Division basically loses about $1 billion a year ... then add in the fact that Ms is one of the few companies NOT making money off the internet ($700 million in losses in that division), you actually have a company that you question why they are throwing away $10 billion a year in money losing ventures?

I don't think Apple is beating anyone at anything except selling iPods and downloaded apps. They're not beating Microsoft by outselling Windows vs OSX. They're not beating RIM or Nokia at unit sales with iPhones. Apple isn't beating any computer manufacturer with outright notebook or desktop sales. As useful as the AppleTV could be it certainly doesn't look to be very successful at all. Apple is putting such little effort into it that I don't see sales improving at all. It should have been so easy to add AppleTV's features to a MacMini, but I guess the cost would have been too high.

Apple is only good at bringing in revenue, growing it's cash reserves and building retail stores which Wall Street basically overlooks. I guess building a successful company doesn't necessarily mean you're beating anyone at one particular thing but that's OK. I think Apple is doing just fine as it is. I'll take Apple over Microsoft as an investment, anytime.

As for a simple device with a simple menu and a simple remote, let's take a person with no technical knowledge - aka my wife (no offense honey) and put her in front of the these products. hmmm, looks like Apple wins. Every family that I sell the Apple TV to seems a lot happier than their purchase of an xbox or MS Home media centre. Heck they even forgot what Blockbuster was. No driving to the store that might have your scratched up movie provided to you by the clueless staff who work there.

"there are vastly more of the Xbox 360 game consoles in use than the Apple TV. "

But there are there are vastly more of the iPhone/iPod touches than there are Xbox's. Apple is killing Microsoft in this area, because the iPhone platform does gaming and video on the move, not just restricted to the living room.

Have been at several parties using AppleTV for entertainment. So impressed by it that I bought 2 myself. Upon seeing it, my neighbor bought one as well. Still haven't seen anyone living room using the X-box for anything else but gaming and still have to see anyone using MS media center....