JRPGfan said:
G2ThaUNiT said:
This coincides with my post yesterday. Phil and co several years ago decided to turn Xbox into a software-focused company and intentionally stripped back console manufacturing in favor of "This is an Xbox" with the console just being one of many options. Which means they weren't making anywhere near as many orders as Sony or Nintendo were during that transitional time, which happened over the course of the last few years. Then, once it became apparent that Phil's bet on Netflix of gaming, and This is an Xbox weren't going to be the successes he had hoped for, the component shortages started happening. And because of Xbox dramatically scaling back manufacturing for several years, Sony, Nintendo, and all other major tech companies had already secured their positions of having more availability of components, even though still at a higher cost. And being in a time of scarcity, it's whoever secures the most orders. A process that takes months, if not years. So because Xbox is in no position to outbid other companies, they have to pay a higher premium for smaller orders. A perfect storm of poor decision making and bad luck. |
Dude Phil rolled a twenty sided dice, and landed a "1" (critical failure).
Crazy random unlucky streak. |
No kidding! This quote from Asha on #3 of her memo was CRAZY. She already talking about how much worse it'll be in a year and a half from now.
"When I joined as CEO in February, the price we paid for console storage components was over 2x as high as we paid last fall. These costs have since doubled again. And as we plan for the 2027 holiday season, we expect another significant increase, taking us over 5x the prices we paid only two years earlier."
