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nikosx on 30 December 2011
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Alby_da_Wolf said:
thx1139 said:
Alby_da_Wolf said:
It just took $1B marketing budget to almost erase that 1.5M units gap reduction PS3 achieved in the first 10 months of the year.

What is the source of this?  If it is true isnt it even more incredible that that 360 division will likely make at least $1.5B this year in profit and PS3 will just make a small profit.

It's just their PR (the first source I found is this one http://gamrconnect.vgchartz.com/thread.php?id=136608&page=1 ), but like about last year's half billion, they kept it very vague, they just stated they doubled the marketing budget, they stressed Kinect's role, but they didn't specify the timespan for that budget, although it should be at latest until the end of this fiscal year.

XB360, besides XBL revenue, enjoys also a crazy tie ratio, not to mention proprietary HDDs and 1st party and authorized 3rd party peripherals, MS can afford a huge marketing budget. This doesn't deny that erasing that gap reduction cost MS quite a hefty sum. But just like Sony, also MS will benefit from keeping the brand name healthy and strong (in Sony case, making it healthy and strong again) as next gen approaches. It's an investment not just for the short term.

 Didn't Sony do the same last gen? Selling the PS2 at loss to stay on top of competitors? Maybe you don't like it but that's how bussiness works.... MS does it, Apple does it and Sony would do the same if they had the money.