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Forums - Sales - Is the Kinect boost to the Xbox 360 an illusion?

Slimebeast on 18 February 2011
d21lewis said:

A couple of things: 

  • From what I understand, the $500 million is the entire marketing budget, not the Kinect marketing budget.
  • Selling the console isn't where the bulk of the money is made.  Kinects cost next to nothing to make.  Also, game sales are where consoles make their money.  It's the "Razor blade" model.  You lose money on the "razor" and make money on the "blades".
  • Without the marketing, new re-design, and Kinect, who's to say how bad 360 sales would be?  Certainly not as good as they are, now.   It would probably be like the other consoles on the market--at a decrease for the year.
  • It said in the article that M$'s increase was 1,148,500 consoles over a set period of time where it could have been 1,666,666 if they'd just taken their marketing money and bought 360's with it over the same period of time.  It's not like 360 sales are going to suddenly stop.  With the money spent marketing, I can only assume that more people are aware of 360's and Kinect and more consoles will sell in the future as a result.  Spending a large amount of money now to make more money later--that's how businesses work, right?  I guess Coca Cola shouldn't have advertised at the Superbowl.  Instead, they should have taken their millions of dollars and bought Coca Cola with it.  That way, sales would improve because they bought their own.......no.  That's fucking retarded.

Good stuff.

4 very important factors Malmstrom deliberately left out from his "analysis".



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theprof00 on 18 February 2011

MS is very happy, Malstrom, like I've always said, picks and chooses his data, and arbitrarily scores things based on his own preferences.

Like how he said that the wii was disruptive. I've been saying that it ISN'T, solely for one reason. It doesn't have the necessary "shield". There is nothing preventing others from moving in on the market. AKA MS.

This week shows wii in last place for the first time, which happens shortly after both rivals release wii-esque hardware. There is no shield, and this is proof.



djstrykermx on 18 February 2011

Yawn at the OP... Does it have to do with Wii being last this week?



nightsurge on 18 February 2011

So apparently that marketing budget was only for 360 consoles?  That's the way the OP makes it seem.

Kind of weird that he left out the 8 million Kinects that were shipped with a likely 7ish million Kinects sold in just those 2-3 months time...

$500 million marketing budget, ~$70 profit per Kinect and ~100 profit per 360 console, thats well over $500 million in profits from Kinect and 360 in just those 2-3 months...



liu777 on 18 February 2011

Kinect is still the fastest selling gadget in history. A rather large marketing budget doesn't detract from that fact. Besides, Kinect is set to sell some 20 million by the end of this year. Kinect is certainly not a failure.



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bannedagain on 18 February 2011
themanwithnoname said:
d21lewis said:

A couple of things: 

  • From what I understand, the $500 million is the entire marketing budget, not the Kinect marketing budget.
  • Selling the console isn't where the bulk of the money is made.  Kinects cost next to nothing to make.  Also, game sales are where consoles make their money.  It's the "Razor blade" model.  You lose money on the "razor" and make money on the "blades".
  • Without the marketing, new re-design, and Kinect, who's to say how bad 360 sales would be?  Certainly not as good as they are, now.   It would probably be like the other consoles on the market--at a decrease for the year.
  • It said in the article that M$'s increase was 1,148,500 consoles over a set period of time where it could have been 1,666,666 if they'd just taken their marketing money and bought 360's with it over the same period of time.  It's not like 360 sales are going to suddenly stop.  With the money spent marketing, I can only assume that more people are aware of 360's and Kinect and more consoles will sell in the future as a result.  Spending a large amount of money now to make more money later--that's how businesses work, right?  I guess Coca Cola shouldn't have advertised at the Superbowl.  Instead, they should have taken their millions of dollars and bought Coca Cola with it.  That way, sales would improve because they bought their own.......no.  That's fucking retarded.


Yeah, that last part is a major lol. Why does anyone advertise? They should all just buy their own products to improve sales, because that's totally how it works!

LOL,  I would have to agree. buying your own product is the way to go. LOL I'm going to start using this with my production company. F' flyers or promoting. I'm just going to buy my own shirts and door admission and that should pan out great. MONTH LATER, "damn no one is at my show and I'm broke, Stupid article."

 

One thing that he never mentions is that kinect sold itself 8 million units. When it was only expected to move around 5 million units. Thats almost double the sales expected. Not only that but I have seen that there has been very few Kinect 360 bundles if any in these stores. So yes you might have stock but not what has been selling out. Not only that but I see plenty of stand alone kinects and never any bundles. This means they are selling to new customers.

What a long article to prove that he is not going to be thorough and  go on  to not mention all elements of the discussion. If I was micro-soft I would be pleased that I placed a product supposedly  high for what analysts thought would sell and then to go on to out sell there prodictions for the product. Most casual customers shop during the holidays rather then during off months from what I remember with wii sales, could be wrong. Plus sales have been going up and that seems to be the result of them restocking stores with the product.

What this article wreaks of is a  bias author, which is toi common among online gaming article's.



Carl on 18 February 2011

Yeah, the 360 is eating into PS3 sales. That must explain why the Wii is down by over 30% YoY while the PS3 is down less than 5%,

He needs to pull his dick out of Nintendo.



                            

M.U.G.E.N on 18 February 2011

lol malstrom is a bit butthurt and on damage control imho....not exactly shocking...however I'm surprised this bs deserved a thread of it's own



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d21lewis on 18 February 2011

When he called Kinect a "Silly accessory", I quit reading.  Unfortunately, that was pretty much one of the last sentences in the article.  Still shows a little bias, though.



antcar18 on 18 February 2011

he's right the 360s sales havent taken off and there falling fast ecept for the US but this site keeps overtracking it. Kinect gave it a boost for sure  but nothing to brag about.