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Forums - Gaming Discussion - Red Ocean: It's funny how MS went from a 25m xbox marketshare to a 69m 360 marketshare

 

What about you, are you in denial?

Yes, I'm in denial, and ... 15 16.67%
 
The blue ocean strategy is enough of a win. 18 20.00%
 
They missed an opportunit... 12 13.33%
 
The opportunity shall ris... 18 20.00%
 
I think Microsoft is the next Nintendo. 27 30.00%
 
Total:90

Most of the consoles sales numbers are duplicated from RROD



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@famousringo

The 360 has been in black ink for about the past 3 years.....its turned a huge profit



I don't know why this kind of stuff keeps cropping up. I've been a Nintendo gamer since the original GameBoy. I haven't played every game along the way, but I've played my fair share of Zelda, Mario, Smash Bros, and Pokemon. In between those, there was Madden, NFS, Tony Hawk, Harvest Moon, 007, Star Wars, and so on. Since I was part of the existing market before the Wii, I'm part of the "red ocean," right? Do I count as a "hard core" gamer?

Well, I don't feel like Nintendo "abandoned" me. I got the games I wanted this generation. Some people don't feel the same way, but they should realize that it's not Nintendo's fault. They gave us Zelda, Mario, Metroid, Smash Bros, Animal Crossing, Pokemon, Fire Emblem, the works. I enjoyed the Wii and I never felt like I needed another console to meet my gaming needs.



HoloDust said:
I can see Microsoft gaining even more ground in next-gen and being at top of generation, while Sony and Nintendo fighting for 2nd place (and I'm saying this as someone who prefers Sony).

I don't really see that happening, not unless Kinect 2.0 ends up being revolutionary in terms of improving game-play.

The Nexbox will almost certainly continue to "win" North America, but Microsoft is the weakest of the three brands in the rest of the world.  I really see no reason for that to change.  Microsoft tossed a LOT of money at gaming this generation, first with timed exclusives and then timed DLC, and they started the generation with a year's lead, but a lot of that momentum faded down the stretch, even with the Kinect spike.  They'll finish with by far the lowest sales rate and third in installed base.  That's not bad at all, but we're still talking about a system that stole the march on everyone else.  When we take that into account, and the PS3's awful launch, I see little reason to assume that the Nextbox won't also have the lowest sales rate next generation; that is, unless they hit with something truely awesome, which is possible.  If there is one thing history has taught us about gaming consoles, it's that success or failure in one generation does not automatically translate into the same for the next generation.



JWeinCom said:

I get that, but that's far easier said than done.  Making a console that would compete head on with M$ and Sony in terms of horsepower would have been a HUGE financial risk.  Nintendo could have probably survived even if the Wii had Gamecube levels of success.  If Nintendo made an expensive system that lost them 100+ $ per console, and that didn't sell, they would be in a dire financial situation.

And frankly, Nintendo wasn't as good as appealing to the market that Microsoft did.  There are hardcore Nintendo fans, and hardcore Nintendo games.  Skyward Sword is a hardcore game, Mario Galaxy is a hardcore game, Donkey Kong Country Returns is a hardcore game, and Pikmin is a hardcore game.  However, the Nintendo hardcore and Microsoft hardcore are two different beasts altogether.  Nintendo doesn't really make games that appeals to that fratcore crowd, and without those kinds of exclusives they wouldn't have done pretty well.  Plus, if they tried to develop those kinds of games, that means less time and resources to develop Mario Galaxy, Wii Sports, etc.

In the end Microsoft went from 25m to 69m with the benefit of Sony shooting themselves in the foot.  Meanwhile, Nintendo went from 20 to 95 million and despite what the article's author may say, was the undisputed winner of this generation.  I think their strategy was a sound one.  I don't think they could have done all of that while still competing directly with the X-Box and PS3.

@underlined. But I thought I said happy medium in a later post. I'm not talking about bleeding edge, I'm just talking about a more HW competitive Wii. And even though Nintendo wasn't as good at appealing to the market that Microsoft appealed to, at least if they offered something they could have picked up some of the scraps. The Nintendo core I talked about in the 15m core on the Nintendo console, those are the NinCore. I'm talking about the traditional core that migrated onto the PS platform during the SNES exodus and that grew and later split-migrated to the 360 during the PS3 launch fail.

As for offering those kinds of exclusives, Retro could easily have replaced DKCR with a tradcore title and it wouldn't have hindered any of Nintendo's output.

You can say they are the undisputed winner, but most will not agree with you. They are the winner, that's not being disputed, but they're not the Undisputed winner, meaning people can still claim certain things against the victory. For example, that the HD twins combined sold more than the Wii. The PS2 was therefore a stronger winner, as was the DS. The Wii did not win in the red ocean market, that's something the PS2 pulled off. The Wii won off of the casual market, which does not hold as much respect where the debate matters.



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@pokoko

What are you talking about 360 is in 2nd place WW......



BenVTrigger said:
@famousringo

The 360 has been in black ink for about the past 3 years.....its turned a huge profit


Gotta give props to MS's investor relations page. Easiest one to navigate I've ever seen.

Entertainment and Devices/Home and Entertainment operating income:

FY 2012  - 364

FY 2011 - 1257

FY 2010 - 679

FY 2009 - 108

FY 2008 - 426

FY 2007 - (1969)

FY 2006 - (1262)

FY 2005 - (485)

Total operating income: (882)

Now, of course, the water is muddied by all the other profitable and unprofitable activities that division gets up to, but I'm guessing Xbox still has some bills to pay, especially when you consider the opportunity cost of all those billions invested. I'll also mention that E&D took a loss in 2012Q3 and Q4, and specifically cited the Xbox as a cause of the loss in Q3, so I wouldn't count on that last $900 million or so getting paid off in the next year or two of the 360.



"The worst part about these reviews is they are [subjective]--and their scores often depend on how drunk you got the media at a Street Fighter event."  — Mona Hamilton, Capcom Senior VP of Marketing
*Image indefinitely borrowed from BrainBoxLtd without his consent.

JerCotter7 said:
I wouldn't say Microsoft stole marketshare. Sony just screwed up really bad.


Or... Sony screwed up really bad THEN MS stole market share. 

With better-than-expected results too. 



Yay!!!

@famousringo

First of all the reason the E & D division took a loss last year is because R&D increased 3x as much which is obviousky the Nextbox. It was the largest jump in R&D in the division since the launch of the 360

Secondly the 360 was never blamed for the loss, they blamed it on "a soft gaming market". We know for a fact the 360 has been sold for a profit for years now.

Third I believe Xbox Live revenue is not included with E&D right? I could be wrong on that one.

Either way the 360 has psted a profit this generation I assure you.



happydolphin said:
JWeinCom said:

I get that, but that's far easier said than done.  Making a console that would compete head on with M$ and Sony in terms of horsepower would have been a HUGE financial risk.  Nintendo could have probably survived even if the Wii had Gamecube levels of success.  If Nintendo made an expensive system that lost them 100+ $ per console, and that didn't sell, they would be in a dire financial situation.

And frankly, Nintendo wasn't as good as appealing to the market that Microsoft did.  There are hardcore Nintendo fans, and hardcore Nintendo games.  Skyward Sword is a hardcore game, Mario Galaxy is a hardcore game, Donkey Kong Country Returns is a hardcore game, and Pikmin is a hardcore game.  However, the Nintendo hardcore and Microsoft hardcore are two different beasts altogether.  Nintendo doesn't really make games that appeals to that fratcore crowd, and without those kinds of exclusives they wouldn't have done pretty well.  Plus, if they tried to develop those kinds of games, that means less time and resources to develop Mario Galaxy, Wii Sports, etc.

In the end Microsoft went from 25m to 69m with the benefit of Sony shooting themselves in the foot.  Meanwhile, Nintendo went from 20 to 95 million and despite what the article's author may say, was the undisputed winner of this generation.  I think their strategy was a sound one.  I don't think they could have done all of that while still competing directly with the X-Box and PS3.

@underlined. But I thought I said happy medium in a later post. I'm not talking about bleeding edge, I'm just talking about a more HW competitive Wii. And even though Nintendo wasn't as good at appealing to the market that Microsoft appealed to, at least if they offered something they could have picked up some of the scraps. The Nintendo core I talked about in the 15m core on the Nintendo console, those are the NinCore. I'm talking about the traditional core that migrated onto the PS platform during the SNES exodus and that grew and later split-migrated to the 360 during the PS3 launch fail.

As for offering those kinds of exclusives, Retro could easily have replaced DKCR with a tradcore title and it wouldn't have hindered any of Nintendo's output.

You can say they are the undisputed winner, but most will not agree with you. They are the winner, that's not being disputed, but they're not the Undisputed winner, meaning people can still claim certain things against the victory. For example, that the HD twins combined sold more than the Wii. The PS2 was therefore a stronger winner, as was the DS. The Wii did not win in the red ocean market, that's something the PS2 pulled off. The Wii won off of the casual market, which does not hold as much respect where the debate matters.


Donkey Kong Country Returns was amazing, and actually sold more than Uncharted 3 or Gears of War 3.  It's one of the best games on the Wii, and the Wii's library would be diminished quite a bit without it.  Besides, even IF Retro could produce some amazing FPS, would that be enough to compete with Halo and Gears of War?  How could they take a huge chunk of the COD market without spending the money to make a killer online service, which I'm not sure they could have done at the time?

As for not being an undisputed winner.  Go ahead then, dispute that the Wii is the winner of this generation.  Explain to me how either the X-Box 360 or the Playstation 3 can be considered the winner of this generation.  They sold less hardware, less software, and made less money.  Can't see how there is a legitimate claim that the Wii did not win this generation.