thismeintiel said:
yvanjean said:
Wow some people on here are totally clueless about finance and business. News flash Microsoft Xbox division is profitable and making money. This thread is claiming Microsoft can't afford to release after Sony? IF Microsoft wanted they could release a next gen console for free, they can afford to do anything. Does it make business sense, that's the real question!
The OP is forgetting that Microsoft have a 4k ready consoles already with the Xbox one X, that means Microsoft can wait it out and let Sony release the PS5. Xbox one X can compete directly with the PS5 on price point alone and by that time Microsoft will already have release their plan for the next consoles that should trump of all of PS5 hardware. Microsoft has already shown that they want to be the leader in power and that their entire focus is switching to software in order to really compete with Sony. Beating Sony would be nice but that is not Microsoft motivation, they are first and foremost a business interested in generation profits. That's what really drive the company. Being the market leader would mean much high revenues and profits therefore that is one of their indirect goal.
If Phil is still head of Xbox, Microsoft for the Xbox Two will build a consoles that will continue the tag line "The world most powerful consoles". I hope they wait for Sony to reveal all their card and have price parity with the PS5 when they release their next console. The entire focus for Xbox Two will be on it's consoles exclusives launch lineup on the "The world most powerful consoles". |
You accuse people of not knowing about finance and business, and then go on talking about Xbox being able to give away consoles if they wish? You may want to check out a mirror to see the person who is not in the know. There's a reason the X is so expensive.
Xbox ≠ MS. MS has its own priorities. And it is obvious by the lack 1st party SW and 3rd party exclusives, as well as a decline in marketing deals, that Xbox is not as big of a priority for them. They also have investors that they need to answer to. If next gen they decide to give away consoles for free, or even a large discount, investors are not going to be happy. There were quite a few of them who wanted them to pull out of the console biz at the beginning of this gen. I imagine its going to be even more next gen if the PS5 gets a whole year on the market by itself. I mean they are going to be launching against a console that at that point would probably have sold ~14M already, with no signs of stopping.
Also, it would be pathetic for MS to even attempt to use the X as competition against the PS5. It can't even compete against the weaker Pro. How is it going to compete against a PS5 that blows it out of the water, power-wise? As for the XB2, it's going to have a problem with competing against the PS5. Not only is PS a much larger brand WW, but there is really no chance of it being incredibly more powerful than the PS5 without also being more expensive. The reason being, there is no way MS is going to let Sony release an entire year before them. They will try to keep it to 6 months later, but most likely will try to launch at the exact same time. Anything more would be suicide. They also do not have a good structure built up to push out high quality exclusives like Sony does. They are going to give it a decent push next gen, most likely using 3rd party exclusives, even it just timed, but Sony is going to be ready with true, high quality exclusives.
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I said they could do it, if you don't understand the difference between could and should you might want to look it up. Beside, if they give out a free console it would come with a contract obviously Microsoft already explored a subsidized business model with the 360. Subscription base model like Xbox gamepass and Xbox live is the future of Microsoft. If they can bundle Console, Gamepass and Xbox live and lock in people in long term contract, lowering the barrier of entry into the eco system they will certainly look at that business model.
The biggest competitor to PS5 is going to be PS4 Pro .... people are slow to make the jump and price really matters. A cheap Xbox one X holiday can sell more units then a new PS5 +$499.
You do understand that Microsoft doesn't need to be better then Sony?? They can have major financial success being 2nd or 3rd if you count Nintendo. Beside Microsoft focus is mainly on America they almost have 50% of the market if you only look at Sony and Microsoft... WW Sony has a 4 to 1 advantage over Microsoft, but Microsoft has room to grow. Microsoft focus should be to win back North America with next gen consoles.
Microsoft for next gen need more exclusives, it will take time and it all depends on when Sony will release the PS5. Microsoft next consoles need to release with great launch titles and a staple of games on the way that will decide how much of early advantage Sony will have over Microsoft. Microsoft can have a slight power advantage over Sony when Sony release the PS5 information for similar cost.
Here some stats to back up my claims:
In the cash rankings, Microsoft is second among those four companies, with $126 billion in cash and equivalents. Alphabet, the Google parent, has $92 billion in cash, and Amazon comes in at $22 billion among the four.May 2, 2017
https://www.eurogamer.net/articles/2012-05-02-microsoft-to-launch-USD99-xbox-360-subsidised-by-monthly-subscription-report
