By using this site, you agree to our Privacy Policy and our Terms of Use. Close
Nem on 16 February 2014
Edit Thread
Seece said:
Nem said:


Face the reality seece. The X1 is faltering. Weekly sales are close to Wii U levels on its first year. The system is overpriced. Cant you add two and two?

What happens now Seece? Does Microsoft sit on these faultering numbers or do they do something about it?

Scenario 1: No price drop. The system keeps sinking. The division sees minimal profits, investors not pleased.

Scenario 2: Price cuts, X1 recovers in sales, Microsoft takes losses. Investors not pleased.

Out of those 2 scenarios: Investors not pleased. Microsoft is a company that wins, big profits are a must. Solution? Sell the division. Its incredibly likely at this point. The question is if theres a buyer.

I didn't say XB1 isn't faltering, it clearly is. Unlike WIiU though there is genuine hope for it if MS take the right measures, why? Because they have a target audience and third party on board, two very very important things. 

Xbox has been going for 10 years now, original xbox saw billions in losses, early 360 days too. Why are you so obsessed with what investors think? Since when have MS listened to them? The Xbox division isn't losing billions anymore, it's making hundreds of millions. A $100 price cut isn't going to be catastrophic ...


I dont know if you noticed but the previous CEO pretty much got fired (pressured into quitting). The new one doesnt exactly have an easy job. Microsoft is a company of big wins and profits and at the moment, they cant do that. They overextended themselves to markets where they dont have key strengths.

Indeed if Microsoft just cruises at this price point it wont lose huge ammounts of money, but it will also be stuck with a struggling product in the market that is eating up resources. They took huge losses at the start cause its what they deemed necessary to penetrate the market sucessfully, wich they manged to some degree with Sony's mistakes.

Today's situation is much different. Microsoft was in a position of strength and they blew it. To make it clear to you, its comparable to what Sony did last cycle with the PS3 at the start. From here on out there those two scenarions i mentioned. Either start over, big losses so you can make better profits later on (wich was what Sony did with the PS3) or small profits and drag on into a corner until next cycle like they did with the first Xbox (wich seems to be Nintendo's strategy, minus the mass inventory defecit).