Quantcast
Microsoft asking retailers to pull Kinect pre-orders

Forums - Sales Discussion - Microsoft asking retailers to pull Kinect pre-orders

I'll buy it,but not right away. I never buy new tech right away. I always wait for them to iron out any issues they may have. It looks like it doing really well and I hope it does.



Around the Network
Smashchu2 said:
Shorty11857 said:
Smashchu2 said:
Degausser said:
Smashchu2 said:
kowenicki said:
Smashchu2 said:

Most likely Microsoft is holding back shipments to show how "well" Kinect is doing.

Kinect is a big gimmick. We know the product simply doesn't work and Microsoft is spending billions of dollars to make it look better than it is (rather than put that into the product itself).

I think that Kinect will end the Microsoft game division.

 

BS...

and on top of that some lies too...

with a hint of wishful thinking at the end....

The end of Sony and Microsoft are very close.

Earlier this year, a report came out that investors wanted Microsoft to get out of unprofitable secotrs (video games being one) and focus more on Windows. Now, Microsoft is investing 500 million dollars in advertising alone. Now, think to yourself: what will happen if Kinect fails? Well, those investors might get upset with Microsoft. They may just dump their stock. Microsoft did just lose a heck of a lot of money on a silly attachment to the 360. That is a huge amount of money. Do you think Microsoft will continue the videogame pursuit after that? Probablty not.

And look at Sony. They had 3 years of loses with the PS3. They are just now trying to recoupe the loses. But the sales are not strong enough to make back the money. And most of Sony's recent experiments have failed. The PSPGo failed. The Move is failing. Are they just going to keep throwing good money after bad? Esspecially after they just had a restructuring.

Here's the truth. How long are these companies going to keep investing in areas where they only lose? How long will investors put up with it. Remember, these comapnies are not game companies. Video games are not their primary source of income. But they have been the primary source for loses.

It is wishful thinking to beleive their is a future for the Playstation and XBox.


 It's worth remembering both Sony and Microsoft have other motives then just gaming though. The Ps3 was part of the HD initiative to sell Sony HD TV's, sell Sony Blu-Ray disks, Sony HD cameras blah blah - and now they're doing the same thing with 3D. There will always be Sony gaming devices when there is tons of other Sony products which can be sold with them.

 I don't totally get Microsofts motives, but it's all about controlling the living room with their device before the PC gets replaced, or something. They had these losses lined up and accounted for long before they entered the gaming scene, so I'm sure they have a long-term strategy for this, and the 360 seems to have been too successful for them to quit now.

  It's very odd for anyone to talk about either leaving now. I mean, the consoles are profitable now, game sales are at a peak (Smashchu2: sales are down for everyone and the lowest they've ever been. I do not think anyone is peaking) and both Move and Kinect are seemingly set for big sales figures for what is cheap to produce (Compared to retail price) products. 

Times converts more than reason. As of now, there is no evidence that they are doing OK. Sony goes under a massive restructuring while their game division can produce nothing but duds. Microsoft's investors want them to get out of video games and now they are blowing 500 million dollars on marketing (not even the product. Just the promotion). Put 2 and 2 together, and you'll see that neither are doing well.

The bold is the fallacy. Did anyone think Sega was going to drop out of the console business? Probably not. But they are now. And I'm sure Sega fans aren't happy. Sony and Microsoft have less invested into games than Sega did. By that though, they'd be more inclinded to leave.

Sony and Microsoft are losing and the industry is failing. The industry was held up by Nintendo alone. When the Wii fell, so did the crumbeling structure. They will most likely leave.

Sega dropped out of the console business because their sole goal in that business was to make money; Nintendo would do the same if they were losing money. But for Sony and Microsoft it's different

@Machiavellian: Wow, what a thoughful and educated response.

I'm actually not going to respond to the rest because the first line says it all. ALL BUSINESSES ARE IN IT TO MAKE MONEY. They will stop making videogames when there is no hope of making money (which should be very soon for Sony as everything they've done for the last 6 or so years has gone south). You are right, Microsoft entered the market as a stop gap to Sony. Sony was trying to disrupt computers with the Plasytation (explaining the PS3). But the xBox tried to stop them. However, Microsoft has received investor backlash for this move as they havn't madeany money. When Kinect fails, it will be a huge mess for Microsoft and probably ruin them in consumers eyes. They will leave the market out of embassesment. But no matter what, they both will leave. You don't just have tons of loses and say "Well, let's keep trucking."


All businesses are in it to make money but for Microsoft and Sony money is simply the profit or loss that the individual division makes. For Sega and Nintendo it is, for Sony the Playstation is also used to help sell more tv and other Sony products and in the case of the PS3 it was used to push blu-ray. For Microsoft they have no reason to pull seeing as the xbox is a profitable business, xbox live makes them hundreds of millions a year, and I love the way you said "When Kinect fails", Kinect is set to be a success, sure the $500 million is a lot to spend but if they're going to spend that much I'm pretty sure they believe it will be profitable.

Even if Kinect fails, xbox live sales on xbox sales of games royalties from third party games will most likely cover it, so what reason would they have for getting rid of the 360? As long as it's making money now you keep making it, so both Microsoft and Sony are gonna keep making their consoles because what they've lost already doesn't matter, it's a sunk cost.

Next gen it's possible both could drop out but I doubt it; the 360 will most likely return a profit for microsoft so why would they not make a next one? For Sony the PS3 will probably never return a profit but unless they have something like blu ray to push next gen there's no reason for them to take huge losses again, and I'm pretty sure their investors won't let them do that, so the PS4 will most likely be profitable or near profitable at launch



Degausser said:
Smashchu2 said:
kowenicki said:
Smashchu2 said:

Most likely Microsoft is holding back shipments to show how "well" Kinect is doing.

Kinect is a big gimmick. We know the product simply doesn't work and Microsoft is spending billions of dollars to make it look better than it is (rather than put that into the product itself).

I think that Kinect will end the Microsoft game division.

 

BS...

and on top of that some lies too...

with a hint of wishful thinking at the end....

The end of Sony and Microsoft are very close.

Earlier this year, a report came out that investors wanted Microsoft to get out of unprofitable secotrs (video games being one) and focus more on Windows. Now, Microsoft is investing 500 million dollars in advertising alone. Now, think to yourself: what will happen if Kinect fails? Well, those investors might get upset with Microsoft. They may just dump their stock. Microsoft did just lose a heck of a lot of money on a silly attachment to the 360. That is a huge amount of money. Do you think Microsoft will continue the videogame pursuit after that? Probablty not.

And look at Sony. They had 3 years of loses with the PS3. They are just now trying to recoupe the loses. But the sales are not strong enough to make back the money. And most of Sony's recent experiments have failed. The PSPGo failed. The Move is failing. Are they just going to keep throwing good money after bad? Esspecially after they just had a restructuring.

Here's the truth. How long are these companies going to keep investing in areas where they only lose? How long will investors put up with it. Remember, these comapnies are not game companies. Video games are not their primary source of income. But they have been the primary source for loses.

It is wishful thinking to beleive their is a future for the Playstation and XBox.


 It's worth remembering both Sony and Microsoft have other motives then just gaming though. The Ps3 was part of the HD initiative to sell Sony HD TV's, sell Sony Blu-Ray disks, Sony HD cameras blah blah - and now they're doing the same thing with 3D. There will always be Sony gaming devices when there is tons of other Sony products which can be sold with them.

 I don't totally get Microsofts motives, but it's all about controlling the living room with their device before the PC gets replaced, or something. They had these losses lined up and accounted for long before they entered the gaming scene, so I'm sure they have a long-term strategy for this, and the 360 seems to have been too successful for them to quit now.

  It's very odd for anyone to talk about either leaving now. I mean, the consoles are profitable now, game sales are at a peak and both Move and Kinect are seemingly set for big sales figures for what is cheap to produce (Compared to retail price) products. 



microsofts goal is digital distrabution i think



Good for MS.

 

How good tho, that remains to be seen.

 

I still think these motion controllers will be profitable for their said companies, but not as successful as they want.  It is not the hardware they want to see, but the games that can be used with it.  That is what I want to see, game sales.



 

AussieGecko said:

@Smashchu2


Really dude you are getting old. All I can see what you are doing is you are simply trying to upgrade your grammar to seem professional.

What's wrong with sounding professional?

Prove once just once that Microsoft (main) investors have told MS to back out of XBOX. I doubt you will find many sources from the things that you create in your head.

http://www.businessweek.com/magazine/content/10_24/b4182036703891.htm

Easily found it in Google.

Also I can pretty much guarantee you that Blu-ray wouldn't have won without the Blu-Ray being in the PS3. Game consoles aren't consoles anymore they are home entertainment  systems.And as has been stated MS is now making serious money with Xbox Live. The fact that the Windows 7 Phones have direct Xbox Live support and perhaps down the road added Xbox to phone games (if you want me to find a source I will).

Won what? Some silly little format war that ment nothing as Blu-Ray is only now just being adopted as people can actually get the players and TVs to run them. It would have happened PS3 or not. But let's talk about Microsoft's Profits

As of June 30, the Xbox division on its own made Microsoft $426 million in operating profits, and $8.1 billion in total sales. According to the company's 4th quarter report, those numbers are up 34% from the year before, when it lost the company nearly $2 billion. Of course, the Entertainment and Devices division (which houses the Xbox team) as a whole still ended up losing $188 million for the year. Here

Look at the numbers. First, 2008 was it's first profitable year (or where it had the first profitable quarter). The quarter the year prior had a loss greater than it's income. The difference was a loss of 1.574 billion dollars. And remember that thje division was around for ~7 years prior. They had losses for 7 years. But it's Ok because they are making serious profits.

http://www.boygeniusreport.com/2010/04/23/microsofts-profits-jump-in-q3/

Yesterday, Microsoft announced its Q3 2010 earnings, and we’re pleased to report things went well for the Redmond, WA company. Riding the success of Windows 7, Microsoft beat analysts expectations with $14.5 billion in revenue and a net income of $4.01 billion or $0.45 per share. As previously mentioned, Windows 7 was a smash hit helping Windows revenue climb 28%. Some 10% of PCs world-wide are now running Windows 7. Sales of the Xbox 360 helped the Entertainment Division’s revenue increase to $165 million. The one major downfall for Microsoft was Bing, as search engine lost the company a hefty $713 million.

Profit for the division was 165 million, only growing a small bit from back in 2008. Microsoft made far more money on Windows (thus, the investors complaint). Let me put it this way: Kinect's advertising expense alone will be larger that the profits from two quarters 2008 and 2010. Let's not forget the company has lost far more than that.

Also the way you are talking about Kinect doesn't seem like an opinion. It almost seems you are trying to present your opinion as fact considering you use "I think" in some of your sentences yet not when you mention Sony and Microsoft game consoles about to get the arse. Also Kinect horribly failing and burning.

No opinion here. Only eviendce.

But here is the thing people: how long do you think these companies can accept these losses before they stop it. It's either that or they go belly up. People here are not being realistic. The XBox line has been a failure from them and only now is it scraping up some profits to cover up the atronomical losses it has. Microsoft is spending 500 million dollars on advertising. On a product we know doesn't work (you'd have to be living under a rock to not know that). This is the end of the divison. Expect a huge mess after this.

To all Kinect Naysayers: Play the full version with an open mind, not one you have tried in of the showings. I don't know how Kinect will do but I do know that it is trying something different. Something different might work and might fail. Why must you take so much glee in possibly failing.

No one is taking "glee," in it, we are looking at how it actually is. Even in a recent BBC report on it, it had very noticable lag. It is a month away from launching. And since Microsoft is spending 500 million on it, it's expected to be a facade.

Again, time converts more than reason. People don't want to admit that Kinect is going to fail and trying to cover their ears. Given, they are all fans so it makes sense. But it's OK, Sega fans will feel your pain.