Creating an entire ecosystem around a platform is increasingly becoming critically important. This is because consumers now buy into a whole ‘package’ rather than solo deals. And that is why, a platform has to have an entire ecosystem of apps and related products to make it a success in today’s tech world. For this reason, Microsoft is teaming up with Barnes & Noble and paying it a whooping $300 million to create a Windows 8 version of iBooks.
The company is obviously making this move to bring as many services and products as possible to its upcoming release, Windows 8. Hailed as many to be a true game-changer, the OS is expected later this year and Microsoft, as well as Windows users, have big hopes from it.
Now Microsoft has announced that it is partnering with Barnes & Noble to create a new subsidiary. The focus of this subsidiary will be to bring e-reading to Windows 8. This is expected to be done through a Nook app exclusively for Windows 8, a somewhat of a native e-reading solution for Windows 8 users, saving them the hassle of going to third-party apps.
According to the announcement, Microsoft will be holding a 17.6% equity share in this subsidiary while B&N will have a major share of 82.4%. At the occasion, the President at Microsoft, Andy Lees had this to say: ‘The shift to digital is putting the world’s libraries and news stands in the palm of every person’s hand, and is the beginning of a journey that will impact how people read, interact with, and enjoy new forms of content. Our complementary assets will accelerate e-reading innovation across a broad range of Windows devices, enabling people to not just read stories, but to be part of them. We’re at the cusp of a revolution in reading.’