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mrstickball on 22 July 2008
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o_hadji89 said:

I believe this simply because of the trends showing us that the xbox 360 is no longer a compelling product, with a 25% failure rate it does not seem like a wise investment. if you compare the 60gb xbox 360 for $349 to the $399 ps3 with 80gb storage, blu ray,wifi, free online, browse the internet, etc. you get all this for an extra $50 therefore there is no incentive to purchase 60gb xbox 360, and it will soon become a thing of the past and the xbox 360 will no longer be in the console race come 2010!!

this is my opinion and my analysis, anyone agree or disagree, why????

I'll be nice enough to write a proper dissenting opinion.

  • I believe this simply because of the trends showing us that the xbox 360 is no longer a compelling product, with a 25% failure rate it does not seem like a wise investment.
  • Problem with this is, that the Xbox 360 is still a compelling product. It has far more, better, games than any other console on the market. It still sells a very decent number of video games each week, which is near (or at) the Wii's level of sales. Difference is, it sells to the core audience, and not the casual audience..Which most developers are keen on selling products to.
  • Also, on the failure rate: Initial Xbox 360s did indeed have the major RROD problems that caused the 25% fail rate. However, as of August 2007, this failure rate has decreased tremendously thanks to the introduction in March/April 2007 of the 2nd heatsink, and then the finale in August due to the Falcon re-design that goes further on taking care of the problem. RROD rates are now below 10%, and more likely within industry standards at 3-5%.
  • if you compare the 60gb xbox 360 for $349 to the $399 ps3 with 80gb storage, blu ray,wifi, free online, browse the internet, etc. you get all this for an extra $50 therefore there is no incentive to purchase 60gb xbox 360, and it will soon become a thing of the past
  • Although I do agree that looking at a $349, 60GB X360, and a 80GB PS3 at $399 is a strong value comparison, in favor of the PS3, the fact is that neither pricepoint has occurred yet - only implied by MS and Sony. The 80GB PS3 hasn't been cited to launch until September, and God knows how long until the X360 goes to the 60GB at $349. And rumor has it, the Xbox 360 price will drop this year, and maybe as much as the X360 did in Europe ($199 Arcade, $299 Pro, $399-ish Elite). The fact is, Microsoft can price their Xbox 360 at a lower price at the time they choose, Sony cannot.
  • And again, that's if you ignore content, which is strongly in the Xbox 360's favor.
  • and it will soon become a thing of the past and the xbox 360 will no longer be in the console race come 2010!!
  • Although I could agree that Microsoft would be forced out of the console race by 2010 if they kept their current prices, the fact is, they aren't. The Xbox 360 is a profitable machine for Microsoft, and has only seen 1, $50 price drop in the US since it's introduction to the marketplace. The Xbox 360 still has a ways to go down the price scale. If Microsoft has half a brain, and drops the price every year from now on, it will be a very competitive product in the marketplace, as it will always be a decent bit cheaper than the baseline PS3, and the Arcade will compete with whatever Wii pricepoint is available. And again, at selling well over 100,000 units a week (which is more, per week, than Microsoft was selling at the same time last year), there just is no trending of the Xbox 360 that would indicate that it's failing. The Xbox 360 will pass the Xbox sometime later this year in terms of lifetime sales - Surpassing the Xbox's 5 years of sales, and trumping it in 3. That's a decent feat for it.

Ultimately, with wiser management from Microsoft, the Xbox 360 could easily trump the PS3 in LTD sales by the time that the X360 succuessor is announced, denying Sony even a phyrric victory in sales. Although the PS3 does indeed have sales momentum over the X360, without a major pricedrop on the US 360, it's very difficult to not understand why US sales are so tepid: the Xbox 360, at $349, has reached customer saturation, as it did last year with the $400 price point. And again, the X360 has flexibility to sell for less because each console makes Microsoft a profit: the Playstation 3 costs Sony for each unit made and sold, as shown by their P&L statements.

 

 



Back from the dead, I'm afraid.