14 Consecutive PS3 Wins over 360!

[4D Gamer III]

Ail said:

4D Gamer III said:

Ail said:

Dianko said:

TheRealMafoo said:

Dianko said:

And PS3 had to cut it's price $200 in a year to stay competitive. I'm not saying that the 360 WILL come back (though I will say I'm 90% sure the 2 will switch places a few more times), or that 360 will beat the PS3. But it's almost impossible to predict this kind of stuff. Hell, I wouldn't have predicted that a $400 PS3 would be on the market right now. I thought it would be damn near impossible due to cost. But here we are. If Sony could do a desperate move to get back sales, so can MS. It's far from a done deal. And obviously both are getting absolutely eclipsed by the Wii.

Nope. This is why Sony wins. They are a very good consumer electronics company competing in a consumer electronics market against a software company.

MS has no chance of beating Sony when it comes to reducing manufacturing costs of hardware. They are the new kids on the block when it comes to these kids of things, and Sony wrote the book on it.

It's what they do.

Be that as it may, MS isn't Sega. And MS isn't Sony. They have WAAAAAAAAAY more money. If you can't reduce costs (and there is no evidence that they can't), they can always take a small hit on their cash reserves to accomplish a price cut.

 Also, while you are correct that Sony is better at lowering costs, keep in mind that the 40GB intro was not accomplished by lowered production costs but rather a $3 billion IPO.

Right now they have 44 Billion $ earmarked to Buy Yahoo.

If that indeed happens they will way too busy trying to integrate Yahoo and Microsoft to be able to afford more losses on the gaming side of the business...

Show us some proof that is the literal case for MS's financial situation. How much money and maneuvering room do you know for a fact MS has? You don't, you're just speculating. MS is sitting quite cozily where it stands and whether the Yahoo deal happens or not, its just wishful thinking on your part it will in any way handicap MS's ability to outmaneuver Sony.

Sony isn't the number 1 enemy for MS, the number 1 enemy is Google and it's kicking their ass more every month so that is the fight toward which they are diverting their biggest assets ( by trying to buy Yahoo which is a big mistake if you listen to every financial analyst but well...).

Google has totally destroyed their search business, is building the lion 's share of the online advertising business ( which grows faster than the gaming market by the way) and is stealing their talent. Pick 100 software guys in the US and ask them if they would rather work for MS or Google. 99% will tell you Google....

As for financials, they are not in bad shape but their offer for Yahoo represents roughly 2.5 years of earnings and they will have a tough time demonstrating to their investors in the next year thats they have created value by acquiring Yahoo( if it happens indeed) ( and I ain't the only one to think that way, their stock tanked by 20% since they announced they were making an offer for Yahoo).

Bottom line is MS is a publicly traded company with shareholders. They can't go on forever throwing away money as shareholders tend to hate that ( especially as soon one of their biggest shareholder that didn't give a shit about his money ( Bill himself) will be selling a huge amount of his shares through the charity foundation he manages with his wife...)

 

I applaud you on your well worded response. However this is not proof of anything, only food for thought, albeit very good food for thought. Sony is also a publically traded company. All I know is we waited and waited for the Ps3 to be given up on by stock holders, now others are playing the same waiting game for the 360. Let's face it, its most likely not going to happen. I wouldn't place my bets on such far reaching hope. Everytime we think we understand the financial world, nothing happens. Its only after the fact any of us can act like we know what we're talking about.