Learning from failure

Learning from failure is a hallmark of the technology business. Nick Baker, a 37-year-old system architect at Microsoft, knows that well. A British transplant at the software giant's Silicon Valley campus, he went from failed project to failed project in his career. He worked on such dogs as Apple Computer's defunct video card business, 3DO's failed game consoles, a chip startup that screwed up a deal with Nintendo, the never successful WebTV and Microsoft's canceled Ultimate TV satellite TV recorder.

But Baker finally has a hot seller with the Xbox 360, Microsoft's video game console launched worldwide last holiday season. The adventure on which he embarked four years ago would ultimately prove that failure is often the best teacher. His new gig would once again provide copious evidence that flexibility and understanding of detailed customer needs will beat a rigid business model every time. And so far the score is Xbox 360 one and the delayed PlayStation 3 nothing.

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