Can Microsoft continue to buy it's way to victory?

[Skeeuk]

Can Microsoft continue to buy it’s way to victory?

http://techhall.wordpress.com/2009/02/18/can-xbox-continue-to-buy-its-way-to-victory/

18 02 2009

    It is no doubt that Microsoft, the creators of the Xbox 360, have put a lot of money into beating sony. With a major price drop on the 360, buying exclusive content, and even paying other developers of sony exclusives to bring their game to the console. While this strategy has worked very well so far, how long can it continue? How long can Microsoft continue to buy it’s way to victory?

    When Microsoft first said price drop, no one expected to be at the scale it was. The Xbox actually dropped in price lower than the Wii, which is drastically inferior the the Xbox. A massive price cut right before the holidays greatly raised sales. This was a desperate move for Microsoft as the PS3 started outselling the 360 for many months in a row. Shortly after the price cut, Xbox sales went up, but were still almost being matched by the PS3, which is currently selling at double the price. It helped the Xbox, but not as much as microsoft intended. 

    No one can doubt that Microsoft puts towards tons of money on gaining exclusive content, either it be Downloadable content, or games. Now most of the time, this ends up being a waste for Microsoft. Microsoft payed $50 million for exclusive GTA downloadable content that released almost over a year after the game came out. Now many people are out of the “GTA Phase” and have moved on to bigger, better games. This isn’t the first time Microsoft has wasted money on exclusive rights. 

    Microsoft keeps buying exclusives from third party, but how much longer can they go on doing this? Third parties will gladly accept the money to make a game exclusive to the 360, but it doesn’t come cheap, and doesn’t always pay off. If Microsoft were smart they would put the money  they are wasting on third party, and get some first party started. These days a console can’t live on just third party, especially with Sony going all out on their first party. Modern games are so expensive to make these days, that a third party would need a really good reason to make their game exclusive. 

     Microsoft has to much money to throw away, with so much wasted money on exclusive content, console repairs, price drop, and more. Even after all these actions, the Xbox continues to be outsold by the Wii, and equally numbed by the PS3. With so many great PS3 games coming out soon, such as Killzone 2, it is no doubt that Microsoft really needs to step up their game if they plan to stay ahead.