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Forums - Sales Discussion - Xbox 360 Vs. Playstation 3 2012 - *February* Update

Seece said:
Alby_da_Wolf said:
thx1139 said:
Alby_da_Wolf said:
It just took $1B marketing budget to almost erase that 1.5M units gap reduction PS3 achieved in the first 10 months of the year.

What is the source of this?  If it is true isnt it even more incredible that that 360 division will likely make at least $1.5B this year in profit and PS3 will just make a small profit.

It's just their PR (the first source I found is this one http://gamrconnect.vgchartz.com/thread.php?id=136608&page=1 ), but like about last year's half billion, they kept it very vague, they just stated they doubled the marketing budget, they stressed Kinect's role, but they didn't specify the timespan for that budget, although it should be at latest until the end of this fiscal year.

XB360, besides XBL revenue, enjoys also a crazy tie ratio, not to mention proprietary HDDs and 1st party and authorized 3rd party peripherals, MS can afford a huge marketing budget. This doesn't deny that erasing that gap reduction cost MS quite a hefty sum. But just like Sony, also MS will benefit from keeping the brand name healthy and strong (in Sony case, making it healthy and strong again) as next gen approaches. It's an investment not just for the short term.

Kowen has already cleared this up, Nintendo and Sony spend nigh on the same amount. It's a weak shot anyway, the fact they did it without a price cut more then negates what was spent on advertising.

Just a cheap shot at MS' boasting and its urge to crush Sony (pointless, now that Ninty is the console market leader and Android is the new threat for Windows outside of office use), I won't deny what XB360 is achieving beyond its 5th year is really noteworthy.



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A fart without stink is like a sky without stars.
TGS, Third Grade Shooter: brand new genre invented by Kevin Butler exclusively for Natal WiiToo Kinect. PEW! PEW-PEW-PEW! 
 


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thismeintiel said:
Kynes said:

A 50 US$ price cut, in a console that sells ~15 million units in a year, means 750 million US$ less income. I'm sure MS is happy with spending >500 million US$ in advertisement and selling the same than the competition, all this with the last price cut three years ago.

PS: We all know Sony doesn't spend a dime in advertisement.

To be fair, I highly doubt that ALL of those stores are taking a hit themselves to continually give out $100 gift cards with every 360 sold.  And I'm sure MS had something to do with those discounts for Black Friday.

Why? because it suits you, of course.

Funny how Wal Mart take a loss on Wii's, even after a price cut earlier in the year, on a product that probably isn't making them nearly as much as X360, yet MS had to pay for these deals as if the retailers couldn't manage them themselves.



 

Seece said:
thismeintiel said:
Kynes said:

A 50 US$ price cut, in a console that sells ~15 million units in a year, means 750 million US$ less income. I'm sure MS is happy with spending >500 million US$ in advertisement and selling the same than the competition, all this with the last price cut three years ago.

PS: We all know Sony doesn't spend a dime in advertisement.

To be fair, I highly doubt that ALL of those stores are taking a hit themselves to continually give out $100 gift cards with every 360 sold.  And I'm sure MS had something to do with those discounts for Black Friday.

Why? because it suits you, of course.

Funny how Wal Mart take a loss on Wii's, even after a price cut earlier in the year, on a product that probably isn't making them nearly as much as X360, yet MS had to pay for these deals as if the retailers couldn't manage them themselves.

What did they discount the Wii?  $50 additional dollars for one week?  And this is a system that for most of the year hasn't been selling too well, so they probably were trying to get rid of extra stock, as well.  We're talking about stores just throwing $100 at customers every week for the holidays.  If it were for a week or two, than yea, I  could see it being from the store itself.  But, since its had deals going for it for about 2 months now, then I highly doubt the stores are willing to take that kind of a hit for MS. 



thismeintiel said:
Seece said:
thismeintiel said:
Kynes said:

A 50 US$ price cut, in a console that sells ~15 million units in a year, means 750 million US$ less income. I'm sure MS is happy with spending >500 million US$ in advertisement and selling the same than the competition, all this with the last price cut three years ago.

PS: We all know Sony doesn't spend a dime in advertisement.

To be fair, I highly doubt that ALL of those stores are taking a hit themselves to continually give out $100 gift cards with every 360 sold.  And I'm sure MS had something to do with those discounts for Black Friday.

Why? because it suits you, of course.

Funny how Wal Mart take a loss on Wii's, even after a price cut earlier in the year, on a product that probably isn't making them nearly as much as X360, yet MS had to pay for these deals as if the retailers couldn't manage them themselves.

What did they discount the Wii?  $50 additional dollars for one week?  And this is a system that for most of the year hasn't been selling too well, so they probably were trying to get rid of extra stock, as well.  We're talking about stores just throwing $100 at customers every week for the holidays.  If it were for a week or two, than yea, I  could see it being from the store itself.  But, since its had deals going for it for about 2 months now, then I highly doubt the stores are willing to take that kind of a hit for MS. 

You got a weak case. Maybe it's the fact that 360 is one of the top entertainment products in the US and Kinect probably one of the most wanted console accessories that makes the deals attractive - after all Supermarkets think this way - when people come in to purchase consoles etc there is an off chance that they'll do their weekly shopping at the same time there instead of having to drive elsewhere at the same time. It's a gamble that ALL supermarkets take, without a credible source you're just shooting in the dark, and your shots are laced with bias.



Disconnect and self destruct, one bullet a time.

NotStan said:
thismeintiel said:
Seece said:
thismeintiel said:
Kynes said:

A 50 US$ price cut, in a console that sells ~15 million units in a year, means 750 million US$ less income. I'm sure MS is happy with spending >500 million US$ in advertisement and selling the same than the competition, all this with the last price cut three years ago.

PS: We all know Sony doesn't spend a dime in advertisement.

To be fair, I highly doubt that ALL of those stores are taking a hit themselves to continually give out $100 gift cards with every 360 sold.  And I'm sure MS had something to do with those discounts for Black Friday.

Why? because it suits you, of course.

Funny how Wal Mart take a loss on Wii's, even after a price cut earlier in the year, on a product that probably isn't making them nearly as much as X360, yet MS had to pay for these deals as if the retailers couldn't manage them themselves.

What did they discount the Wii?  $50 additional dollars for one week?  And this is a system that for most of the year hasn't been selling too well, so they probably were trying to get rid of extra stock, as well.  We're talking about stores just throwing $100 at customers every week for the holidays.  If it were for a week or two, than yea, I  could see it being from the store itself.  But, since its had deals going for it for about 2 months now, then I highly doubt the stores are willing to take that kind of a hit for MS. 

You got a weak case. Maybe it's the fact that 360 is one of the top entertainment products in the US and Kinect probably one of the most wanted console accessories that makes the deals attractive - after all Supermarkets think this way - when people come in to purchase consoles etc there is an off chance that they'll do their weekly shopping at the same time there instead of having to drive elsewhere at the same time. It's a gamble that ALL supermarkets take, without a credible source you're just shooting in the dark, and your shots are laced with bias.

Yet, you don't have a credible source to back your side up, either.  So I could just as well say your case is weak.  I'm just using common sense.  Stores do you use giftcards and discounts to get additional customers in their stores for Black Friday and a few weeks in Dec, but these deals have been going on for weeks before Black Friday, as well as them being pretty consitent between stores.  The 360 is popular in the US, but it has been beaten before during the holidays.  I just find it interesting that just about everyone is shelling out $100 giftcards for just the 360.  My guess is that MS decided to reimburse stores for these special deals, as opposed to doing a pricecut this year. 



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thismeintiel said:
NotStan said:
thismeintiel said:
Seece said:
thismeintiel said:
Kynes said:

A 50 US$ price cut, in a console that sells ~15 million units in a year, means 750 million US$ less income. I'm sure MS is happy with spending >500 million US$ in advertisement and selling the same than the competition, all this with the last price cut three years ago.

PS: We all know Sony doesn't spend a dime in advertisement.

To be fair, I highly doubt that ALL of those stores are taking a hit themselves to continually give out $100 gift cards with every 360 sold.  And I'm sure MS had something to do with those discounts for Black Friday.

Why? because it suits you, of course.

Funny how Wal Mart take a loss on Wii's, even after a price cut earlier in the year, on a product that probably isn't making them nearly as much as X360, yet MS had to pay for these deals as if the retailers couldn't manage them themselves.

What did they discount the Wii?  $50 additional dollars for one week?  And this is a system that for most of the year hasn't been selling too well, so they probably were trying to get rid of extra stock, as well.  We're talking about stores just throwing $100 at customers every week for the holidays.  If it were for a week or two, than yea, I  could see it being from the store itself.  But, since its had deals going for it for about 2 months now, then I highly doubt the stores are willing to take that kind of a hit for MS. 

You got a weak case. Maybe it's the fact that 360 is one of the top entertainment products in the US and Kinect probably one of the most wanted console accessories that makes the deals attractive - after all Supermarkets think this way - when people come in to purchase consoles etc there is an off chance that they'll do their weekly shopping at the same time there instead of having to drive elsewhere at the same time. It's a gamble that ALL supermarkets take, without a credible source you're just shooting in the dark, and your shots are laced with bias.

Yet, you don't have a credible source to back your side up, either.  So I could just as well say your case is weak.  I'm just using common sense.  Stores do you use giftcards and discounts to get additional customers in their stores for Black Friday and a few weeks in Dec, but these deals have been going on for weeks before Black Friday, as well as them being pretty consitent between stores.  The 360 is popular in the US, but it has been beaten before during the holidays.  I just find it interesting that just about everyone is shelling out $100 giftcards for just the 360.  My guess is that MS decided to reimburse stores for these special deals, as opposed to doing a pricecut this year. 

You're the one that called it, I have nothing to prove, if anything you do. You say that MS lines the backpockets of supermarkets - yet you pulled that out of thin air, this isn't the first time a gift card is introduced you know, and most of the time it IS the supermarkets willing to take the hit to attract customers, after all Christmas/New Years shopping is massive in most cases, so securing those sales means profits elsewhere and possible return custom. You think you're using common sense, you're really not, you're just biased and crying wolf when there is nothing to cry about.

Btw, trying the whole religion approach of "You can't prove I am wrong, so prove that you're right" doesn't automatically make it true.

Unless there is a solid reputable source - such as supermarkets/ms/employees etc stating it themselves, other than some low-end blog, then I don't know where on earth you got that idea from.



Disconnect and self destruct, one bullet a time.

just goes to show how much the corporations are actually profiting. you think if one store has a discount the others wouldnt follow? once in the store they have you.



thismeintiel said:
Seece said:
thismeintiel said:
Kynes said:

A 50 US$ price cut, in a console that sells ~15 million units in a year, means 750 million US$ less income. I'm sure MS is happy with spending >500 million US$ in advertisement and selling the same than the competition, all this with the last price cut three years ago.

PS: We all know Sony doesn't spend a dime in advertisement.

To be fair, I highly doubt that ALL of those stores are taking a hit themselves to continually give out $100 gift cards with every 360 sold.  And I'm sure MS had something to do with those discounts for Black Friday.

Why? because it suits you, of course.

Funny how Wal Mart take a loss on Wii's, even after a price cut earlier in the year, on a product that probably isn't making them nearly as much as X360, yet MS had to pay for these deals as if the retailers couldn't manage them themselves.

What did they discount the Wii?  $50 additional dollars for one week?  And this is a system that for most of the year hasn't been selling too well, so they probably were trying to get rid of extra stock, as well.  We're talking about stores just throwing $100 at customers every week for the holidays.  If it were for a week or two, than yea, I  could see it being from the store itself.  But, since its had deals going for it for about 2 months now, then I highly doubt the stores are willing to take that kind of a hit for MS. 

1. It was a special edition Blue Wii that was only made for Black Friday weekend and only sold by Walmart and SAMS Club

2. It was a straight out discounted price. Not a gift card deal which forces people to spend more money at the same store or even forget to use. I saw this week on the news the $41 billion in gift cards have never been redeemed.



Its libraries that sell systems not a single game.

PS3 will probably win, but the 1.5 million lead they built up in 2011 just about completely evaporated. At the end of the year their gain will only be about 200K for 2011. Considering the PS3 also has Japan, that's not too impressive at all. The Xbox 360 did it without a large amount of exclusives. Imagine if they had they same number of exclusives as the PS3 did. I think things would be completely different right now.



__________________________________________

'gaming till I'm gone'

XanderZane said:
PS3 will probably win, but the 1.5 million lead they built up in 2011 just about completely evaporated. At the end of the year their gain will only be about 200K for 2011. Considering the PS3 also has Japan, that's not too impressive at all. The Xbox 360 did it without a large amount of exclusives. Imagine if they had they same number of exclusives as the PS3 did. I think things would be completely different right now.


Yeah, the poor old 360 only had USA and huge holiday discounts.  It had no chance to overcome the massive Japanese market...

The reality - both devices are going to finish pretty much even and both utilised different approaches to discounting the price to the consumer, PS3 with a formal full price cut (which makes sense for a less seasonal device) and the 360 with huge seasonal discounts (which makes sense for a heavily seasonal device) - doesn't that imply they did equally well in their respective strong markets with appropriate pricing strategies or am I missing something?



Try to be reasonable... its easier than you think...