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Groucho on 26 January 2009
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Bitmap Frogs said:
Groucho said:
Bitmap Frogs said:

Groucho pretty much exists to spread sony pr related memes around here, so don't mind him. Lately he's hard working to convince people that MS is the poorly managed lossy corporation desesperately trying to grab marketshare.

It's a weird stance since MS EDD makes money and Sony's SCE has losses, but hey since when reality became an obstacle to a good troll.

 

Lol whatever, spinfrog.  I tell it how it is.  Care to wager some VGC $ on the 360 Arcade dropping price in 2009?

Also, if I wanted to hurt MS with my comments, wouldn't I be supporting the "there will be a price drop" theory?  Am I a MS fanboy then?

 

Blah blah blah round and round the spin goes. This isn't your first post here, your undeletable posting history tells the whole story. Anyone interested can go look there.

Last I caught you, you were double-teaming with another buddy trying to convince people the ps3 was sold at a profit while the xbox wasn't, and if recall the warnings we got last week it does appear SCE's trend of posting losses won't go away soon (30 billion yen [330 million dollars] of losses during the busiest quarter of the year).

So... MS sold a zillion more consoles, and a zillion more software units this holiday season, compared to last year, yet... their entertainment division actually dropped hundreds of millions in profits...  The dollar has weakened considerably since last year, didn't it?... hmm.. would that have an effect also (should have upped their profits considerably), given the large gains for MS in Europe and Japan?

Unless they are spending a truckload on R&D, where do you suppose that money went?  Particularly all the additional software profits?  Something had to eat it... what could it be?  Hmm... what could it be?

Sony's change is a considerably more positive trend.  PS3s may very well sell at a profit -- not what the Pro or Elite models do, but a small profit nonetheless.  Probably a lot more than the Arcade, which, if you actually read my posts, you'll note is my reference for comparisons.  A significant portion of Sony's losses can be attributed to the recent rise of the Yen, which may have turned the tables on hardware profits in the last quarter, as well.  Even a minor amount of R&D could be the reason Sony is posting a loss, given minor profits from hardware, although I will confess that the PS3's software should have held the line if the hardware was breaking even -- even the Yen's rise shouldn't have washed it all away.

On top of all that, MS updated their hardware to be cheaper (Jasper) in the last quarter, and they still cut their profits nearly in half from the year before, despite colossal increases in software sales.  Then they went and axed 5000 employees -- 1400 immediately from the entertainment division... and Sony didn't.   Could it be that, they know the Arcade is going to cost them for at least the next year, at its rock-bottom $199.99 pricetag, and they wanted to mitigate that as much as possible in the short-term, so as to not hit red next quarter, given the much lower software sales of the current quarter?

So are you going to stand up and take my bet, or not?  MS will not drop the price on the Arcade SKU in 2009.  They may up the "value" of the package (although I doubt that too, actually -- that's something better done on the Pro, IMO).