Xbox 360 growth under 1% in the US last year, PS3 up 22%!

[huaxiong90]

marc said:

huaxiong90 said:

marc said:
Sales are important, but then it comes to profit the 360 is destroying the PS3 which brings us to who is in better position to win in sales by the end. I think its fascinating to watch how things are developing but its pretty clear to me that 2nd place will belong to MS. It also important to consider that MS isnt even trying. They only reacted after the PS3 announced price cuts which says a lot considering how loaded they are at the corporate level.

At this present time, MS could cut the 360 price in half and still break even on their hardware. Sony on the hand is desperate and will have very little wiggle room to react if MS decided to cut prices. The good news for Sony is that they still have complete dominance in Japan but it seems to me that they have lost the US and there is no chance of catching up this gen.

Are you telling me they're fine with such a decreased gap? Don't kid yourself.

Comfortable? No, probably not but they didint do anything to fight back aside from Matching Sony's movement. Was it arrogance? Probably but money speaks louder than words and MS is very comfortable with their profit while Sony is desperate and sweating bullets.

MS could have bulldozed Sony with twice the price drop but they didnt probably because they didnt think it was needed. My opinion on the matter is that they should have burried Sony when they had the chance but the problem with MS is that they cannot overcome Sony's PR machine. I have family that arrived in the US a year ago who purchased PS3's because they have never even heard of the XBox. Of course none of them are avid gamers but this is what MS cannot fight even with a huge price drop.

What the price drop would have done was end Sony's hope of ever winning back the West & UK and in my opinion that would have enough to make it a viable strategy but MS clearly disagrees with me there. It would also tip some countries that are 50/50 in their favor. But even a huge price drop would never effect Japan, and several other Sony dominated countries. To get those countries MS needs something that seperates it from the pack, very much like Nintendo but I dont think the Natal will be enough in those coutries in this generation. It will be pivotal next gen especially if Sony (and Nintendo for that matter) has nothing equivalent to offer. A Sony Wii-mote is definitly not equivalent tech.

I never argued against the profitability part. But marketshare is just as important, and 2009 put a huge dent against Microsoft's marketshare. If Microsoft had the chance to make Sony bleed more money they would take that route without hesitation. But the fact that they let things play out the way it is right now makes me think they still don't have a green light for another price cut.

 

Next gen, well, all I'll say is I hope it isn't too one-sided towards any company.