Forums - Microsoft Discussion - Microsoft “Unapologetic” About Going After Casual Audience, Aiming To Be #1 WW This YR

@steverhcp02

But Kinect isn't poor quality.............Dance Central, Kinect Adventures, and Kinect Sports are some of the most fun I've had this gen......



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LOL...Microsoft needs to stop acting like they started a trend. They are bottom feeding off of the casuals Nintendo brought to expand the market.



Baalzamon said:
nightsurge said:
Back2TheFuture said:
microsoft are going to have to pull something out right now there in 3rd place this year and with a ps3 price cut incomming its going to be difficult and are they going after nintendo now??? goodluck :)

MS is in a position to drastically cut the prices (more than Sony can) and still remain profitable on hardware sold. Sony is not very far ahead for the year so MS has a really good shot at this.

First off, I don't understand where people obtain this knowledge that they supposedly have on whether or not a company can or cannot afford a certain price cut and remain profitable.  Could you provide a link on how much Microsoft is making per console?  I personally have no clue whether or not Microsoft can or can't afford a $25, $50, $75, or $100 price cut, nor any price cut that Sony can afford.  I have absolutely no clue, and I highly doubt you do either.

Secondly, what exactly do you mean they can cut more than Sony can.  Sony will very likely be cutting $50 from their price in the near future.  Do you really think they are going to cut $75, or possibly even $100 from the console price?  I think you are crazy.  A $100 cut probably wouldn't even be that much more effective than a $50 cut would be.  Not to mention, a $50 cut now could allow for another potential cut in, say, a years time from now.  The overall boost from 2 smaller cuts split up by a year would probably be more significant than one large price cut.

Third, did you even look at the numbers for how far ahead Sony is this year?  Sony is up over 700,000 units over the 360.  The 360 would have to outsell the PS3 every single week for the rest of the year by 27,000 units.  If our current trend continues for even 5 more weeks (PS3 outselling 360 by ~15,000 per week), the 360 would then have to outsell the PS3 every single week by 37,000 units.  IF our trends continued for 10 weeks, the 360 would have to outsell the PS3 by over 53,000 each week.  I'm not saying any of these will happen, I'm just saying, that the lead is bigger than it may seem, and with the current trends, I REALLY don't see a change drastic enough to change this.

we did have the production cost back when they were selling at losse a couple years back... I'm sure we can find that.... but I don't have the time.... now it's pretty easy to calculate the HW price based on component prices.... and with a little basic in business management and economics you can speculate on their production cost....

that said I have no numbers in hand myself..... but it is quite easy to guestimate something believable from information available online if you care to dig arround....

now I read your stat... makes sens though we've seen pretty crazy push in pre holliday season till end of year.... depends on what's cooking up at each other marketing dept and what kind of communication campain they have in store.... it's gonna be really tough.... but not impossible.... not like the one about PS3 being in front of XB within 3 years people were throwing around back in 07... that was pretty crazy to even imagine.....



Well it's already almost July and their in last place. Gears can't have that big of an effect.



dsage01 said:
Well it's already almost July and their in last place. Gears can't have that big of an effect.

The thing is that Microsoft is probably counting the timeframe of their fiscal year which starts on July 1st, so what happened in 2011 so far won't matter for their goal. What makes me believe that this is correct is that Microsoft at the same time said that they had become the #1 in the USA, but in 2010 the Wii was still ahead of the 360. However, if we look at the numbers for Microsoft's fiscal year which is July 1st 2010 to June 30th 2011, then their statement is true.



Legend11 correctly predicted that GTA IV (360+PS3) would outsell SSBB. I was wrong.

A Biased Review Reloaded / Open Your Eyes / Switch Gamers Club

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I wouldn't expect gears to give them the win, rather kinect casual holoday surge plus 100 dollar kinect bundle price drop



I think the 2 last post are correct :D



endimion said:
Baalzamon said:
nightsurge said:
Back2TheFuture said:
microsoft are going to have to pull something out right now there in 3rd place this year and with a ps3 price cut incomming its going to be difficult and are they going after nintendo now??? goodluck :)

MS is in a position to drastically cut the prices (more than Sony can) and still remain profitable on hardware sold. Sony is not very far ahead for the year so MS has a really good shot at this.

First off, I don't understand where people obtain this knowledge that they supposedly have on whether or not a company can or cannot afford a certain price cut and remain profitable.  Could you provide a link on how much Microsoft is making per console?  I personally have no clue whether or not Microsoft can or can't afford a $25, $50, $75, or $100 price cut, nor any price cut that Sony can afford.  I have absolutely no clue, and I highly doubt you do either.

Secondly, what exactly do you mean they can cut more than Sony can.  Sony will very likely be cutting $50 from their price in the near future.  Do you really think they are going to cut $75, or possibly even $100 from the console price?  I think you are crazy.  A $100 cut probably wouldn't even be that much more effective than a $50 cut would be.  Not to mention, a $50 cut now could allow for another potential cut in, say, a years time from now.  The overall boost from 2 smaller cuts split up by a year would probably be more significant than one large price cut.

Third, did you even look at the numbers for how far ahead Sony is this year?  Sony is up over 700,000 units over the 360.  The 360 would have to outsell the PS3 every single week for the rest of the year by 27,000 units.  If our current trend continues for even 5 more weeks (PS3 outselling 360 by ~15,000 per week), the 360 would then have to outsell the PS3 every single week by 37,000 units.  IF our trends continued for 10 weeks, the 360 would have to outsell the PS3 by over 53,000 each week.  I'm not saying any of these will happen, I'm just saying, that the lead is bigger than it may seem, and with the current trends, I REALLY don't see a change drastic enough to change this.

we did have the production cost back when they were selling at losse a couple years back... I'm sure we can find that.... but I don't have the time.... now it's pretty easy to calculate the HW price based on component prices.... and with a little basic in business management and economics you can speculate on their production cost....

that said I have no numbers in hand myself..... but it is quite easy to guestimate something believable from information available online if you care to dig arround....

now I read your stat... makes sens though we've seen pretty crazy push in pre holliday season till end of year.... depends on what's cooking up at each other marketing dept and what kind of communication campain they have in store.... it's gonna be really tough.... but not impossible.... not like the one about PS3 being in front of XB within 3 years people were throwing around back in 07... that was pretty crazy to even imagine.....

@Baalzamon - What endimion said. I actually made a very detailed thread on the production costs of Kinect and the 360 a while back, but don't have time to search for it right now.  Also, it seems you read way too far into my post. You are assuming that I implied things that I did not, such as the assumption that I think MS will cut the price by $100. I'm not ruling out any possibilities, but what I can say is that MS most definitely can cut $100 off if they wanted and still be profitable on hardware, while Sony could not do the same.

And please refer back to 2008, where the 360 was down by over 1 million, and after their price cut soared to pass the PS3 by 1 million. That's a 2 million swing starting from September onward, and with MS predicting to be the #1 console WW this year, that is even more evidence to support they will be making some pretty big moves to boost sales this year.



narog said:
There is no company thats totally core now , just cos PS3 didn't succeed with the move doesn't mean that they dont want casual audience


This is commonly miss udnerstood. Move was a big succsess for sony (it has sold a few million units). However it hasnt been anywhere near as succsesfull as kinect. But it would silly to call it a failure :) 



Yeah i know my spelling sucks but im dysgraphic so live with it :3    

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Chibi.V.29 said:
narog said:
There is no company thats totally core now , just cos PS3 didn't succeed with the move doesn't mean that they dont want casual audience

This is commonly miss udnerstood. Move was a big succsess for sony (it has sold a few million units). However it hasnt been anywhere near as succsesfull as kinect. But it would silly to call it a failure :) 

With news that Ubisoft, the king of cashing in, won't support Move, it should be clear how successful Sony's motion controller really was. It's not even worth it to make a cheap port of a Wii game.



Legend11 correctly predicted that GTA IV (360+PS3) would outsell SSBB. I was wrong.

A Biased Review Reloaded / Open Your Eyes / Switch Gamers Club