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Tech Giants Play Dangerous Game With Their Fans

As I wrote last month, the whole computing industry is entering a new phase, with the gadget wars of last year becoming an interface war and companies of all sizes trying to define, then dominate, new ways of connecting with data.

As this market competition develops, companies risk forgetting what brought them to the party and may waste billions of dollars trying to dominate consumers they merely need to seduce.

Amazon is a retailer, Google sells services, Facebook sells connections to the people you know. Trying to be all things to even some people may be the surest route to a corporate supernova.


The point of a company's greatest success is often its most dangerous time. The 1994 publication of the book Game Over represented Nintendo's (NTDOY) height of power. Now, its Wii U is taking the company down to losses, as NintendoLife reports. Microsoft (MSFT - Get Report) CEO Bill Gates wrote a grand book called The Road Ahead in 1995 that failed to predict the growth of the Internet, as The Atlantic noted recently.

Facebook, Google and Amazon are all playing a dangerous game.



At the time of publication, the author was long GOOG and AAPL.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

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