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Squilliam on 12 March 2009
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Rpruett said:
Dark Chaos said:

MS just entered the console business and entered late. Facing the monster PS2 it didnt do well but it never had any reputation, no game library. NOTHING.

PS3 on the other is a absolute failure.

 

So ur saying if MS suddenly lost their 80% OS market share to 20% and lost money that is not a failure?

OR

If Apple release $600 Nanos and lost money on them. Went from first to 20% that is not a failure??

 

 

Were not talking about Operating Systems or any other product but consoles.   Every new generation brings a new set of circumstances.   And the point is,  Microsoft had to dump billions of dollars (Even in this generation) to maintain any form of momentum that they had.   As a matter of fact both HD consoles had to.   Sony is not a lone.

 

And if you want to classify failures as such :

Nintendo has been an absolute failure since the SNES if you count the numbers (And until the Wii).  Sega was an absolute failure since the Genesis.  Microsoft has been an absolute failure since the success of the Wii. (It still can't sell as well despite being cheaper). 

 

 

Market share directly relates to having a competitive price. Which Sony has yet to have.  Simply  because they are cramming too much technology into one piece of equipment.  Like i've said,  we know that a PS3 within a 150$ dollars of the 360 sells better on a WW basis.   Sony has more flexibility as it pertains to price than either Nintendo or Microsoft but their biggest limiting factor to more market share is price. Which has historically shown to be generally the biggest factor that drives sales.

 

Both the 360 and PS3 have been absolute 'failures' as you classify them.  /shrug

Nintendo never lost billions of dollars on consoles. I think that sums up the position on Nintendo.

Microsoft is making money on the Xbox 360 operations and it is extremely possible they will post a net profit overall, especially if the next generation is delayed to 2012 or beyond. So improved marketshare, profitable and establishing the brand as a viable gaming console means they could become or could already be considered a success if brand equity is factored into the equation as well.

Its Sony's failure to have a competitive price at this point. Its not an excuse and should never be used as such. Nintendo and Microsoft are both able to cut the price a lot faster because Nintendo was always profitable on the Wii and Microsoft has much more software revenue and more options to cut the price as they made their console better from a business perspective if you consider the bill of materials and licencing compared to the PS3.

Sony pays:

  • Cell royalties.
  • Blu Ray royalties/extra cost for hardware.
  • RSX royalties.
  • XD ram royalties for the technology and extra fabbing cost due to the custom nature of the design.

 

 



Tease.