Aphelion said:
Insidb said:
Aphelion said:
Insidb said:
I think MS revived the brand by damaging its viability. From a corporate perspective, they are throwing good money after bad; when you have a product that you have to sell at a loss to move, you usually discontinue the line. From a brand perspective, all that matters is that the consumer has confidence in the product and buys it. I'd hate to be Phil Spencer right now, because there must be immense pressure to make the X1 a viable product in 2015. Regardless, the brand value has been salvaged, and I would suspect that other companies would have to pay a premium to secure it from MS.
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They revived the X1, at the cost of the brand.
Im confident that you dont buy a abox anytime but on sale, would you deny that ?
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I think you misunderstand what "brand value" actually is. Let me make two examples to illustrate it: 1) When K-Mart was in the process of declaring bankruptcy, people still shopped there, because they trusted the K-Mart brand. Their competition and overexpansion diminished their market share and led them to fiscal collapse. Due to their extremely high brand value, they were able to secure investment capital to resuscitate their business, post declaration. 2) The Kodak brand was purchased about 2 years ago and applied to another company's line of security cameras. Their cameras sold exceedingly well, because buyers trusted the Kodak brand. The only reason the brand was available was because Kodak went out of business.
In summation, the cuts were bad for business, but they were not bad for the brand. I highly doubt the average consumer associates the XBox with a product "you dont buy...anytime but on sale."
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Would work great if MS is to shut down xbox and sale it. Maybe thats their plan all along.
Correct me if im wrong, majority of X1 sales came from two months of discount sales. They are as i alreasy said conditioning peopel that xbox is a buy while on sale product.
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I have always been a PS fan, but that doesn't strike me as a "great," much less likely outcome. It also doesn't strike me as the type of insane investment that a company as successful as MS would ever make.
The fact that they sold a ton of consoles at a reduced price is largely contingent upon market context. MS was competing with a lower cost, more powerful alternative, so they reduced the price to a point where people would choose the X1 over the PS4. That has a whole lot to do with the market space and very, very little to do with customers adopting the perception that the XBox is a brand you only buy on sale.
