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Forums - Microsoft Discussion - Is Microsoft up to something?

@Slimebeast.

Whilst Microsoft would still be beating the PS3 comfortably without shortages in the USA, the victories would not be as substantial as they used to be. While I agree that the probable price drop around GTAIV is Microsoft's primary sales weapon, I would suggest it's possible Microsoft felt the need for a smaller gesture two months out from GTAIV to boost sales. Far from a certainty, but possible nonetheless.



starcraft - Playing Games = FUN, Talking about Games = SERIOUS

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starcraft said:
Reasonable said:
Well, I only see what I read from Europe (if you see what I mean) and I see the following:

a) the retail chains seem to have too many Arcades - this is not good. It confuses ordering and takes up valuable retail space. I get the strong feeling MS overlayed Arcade as a play against Wii and should have released far less to retail. It also raises question of whether production of other models had to be reduced to increase Arcade production

b) 360 has been out a while so some change seems due - however MS is not a manufacturer like Sony so a redesign is tougher for them (hell, to be blunt producing good electronic devices point blank is tougher for them). Unless they've managed to keep a big secret (and are willing to blow being profitable for a change by spending a lot on it) I therefore doubt its a new model (a 360 slim if you will). BR addon, new bundle, something like that? Sure. Coupled with price drop would seem much more likely.

c) there do seem to be shortages of Elites / Premium so either they did have trouble increasing production or they got balance of building Arcades vs other models wrong or a combination of the two. I also suspect its harder for them to increase production. Again, this is not their core competancy and the last thing they need is to rush getting some more factories going and produce faulty consoles as a result (it takes time to increase facilities is you want to aim for high quality production) - that on top of RROD legacy would not be worth it IMO


What I have been wondering is how much more do they want to fight this gen? They must see (particularly with Arcade performance) they have no hope of competing for casual/family gamers against Wii in the short to medium term, maybe even the long term.

They've shown already they're willing to risk the appetite of US hardcore gamers for more power and shiny new FPS vs releasing consoles early. So, do they fight aggresively with price cuts, more models, etc. and risk dropping out of profitability now? Or do they chose to stabalize 360, focus on download content, fix RROD and focus on staying ahead of PS3 in US (which I think they could manage) and use groundwork of 360 for their next console while continuing to show a profit?

I think unless they take big risks and spend a lot of money MS has little change of achieving more than 2nd place in US and close 3rd place outside US - but you know what? So long as their install base is larger than Xbox (which it almost certainly will be) and so long as they've improved their standing in all markets (which they will have) - that's not too bad for console number 2, particulary when it was rushed to market.



 A slim would involve less component costs and would make them more money.........


Yeah but given the trouble MS had getting the 'fat' 360 working right I'm none to convinced they know how to produce a working slim version.

If they do they good for them.  But the odds seem against it.  At the end of the day, next to Samsung, Toshiba and yes, Sony, MS are small fry as an electronics manufacturer and are still very much in learning mode (as the RROD issues show).

I still think there are too few leaks and other indications of something like a new SKU (at least one that required major technical changes).  At most I could see better bundles, a price drop and maybe a BR addon given current market coverage.

I'm still not convinced they didn't just make too many Arcades and too few of anything else and paid the price in January.

 



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

starcraft said:
Additionally, GDC starts on the 18th, the perfect time to announce something big like new bundles, a new SKU or a price cut. I might add that Microsoft has the biggest booth at the whole conference, though that doesn't always mean anything.

They do? Yay, that really suggest one of those three things above will be announced, or something major related.

You also mentioned you believe there will be other announcement by MS at GDC. What are your bets, any examples (more specifically than just "new games")?



There are actually about 5 reasons there is a real, legitimate shortage of Xbox 360's in America. Where I live (MS central, in Ohio), I rarely see Prem. X360s. They've been out of stock since early December. Before I state the reasons, I will re-iterate that there are legimate reasons for the shortage, but although the reasons are there, MS should try harder on not creating shortages.


#1. Retail chain. The chain from factory to the store is very, very long. It takes around 3 months for a unit to get from Factory to Store. Therefore, if Microsoft knew shortages were there, it could take that long to get new units rushed to stores.

#2. Overstock led to shortages. Last year, there were absolutely, positively no shortage of units. As stated, retailer confidence in the X360 was most likely lower against the fact the PS3 had a price cut, and the Wii was selling so well. Remember: The X360 outsold itself in the US (via NPD) by around 500,000 units in Nov-Dec.

#3. SKU mix-up. As stated, there is an overabundant supply of Arcade SKUs, and leftover Halo 3 SKUs. When the Arcade launched in October, it sold out very quickly if you remember. Microsoft issued statements that the Arcade was selling much quicker than anticipated. MS might of then stuffed the channel of Arcade SKUs in December, sacrificing the now better-selling Premium SKU, which is the obviously understocked SKU right now.

#4. Manufacturer problems. Microsoft just recently phased out Winstron as far as I know, or one of the other manufacturers in favor of Flextronics as far as I know. This was rumored to take place this fall, which could cause shipment issues of Premium SKUs and such, while Flextronics increases production capacity to meet the new X360 demand that wasnt forecasted.

And of course, these 4 reasons don't include phasing out inferior SKUs, holding back hardware for a new game, or other smaller reasons. Either way, there are a number of reasons there is a legitimate shortage.

Having said all of that, MS should of done more to fix such a shortage. Lets hope it doesn't last too long.



Back from the dead, I'm afraid.

starcraft said:
Think about it Salamursu. Why do console manufacturers deny to the death that a new sku, new bundle or price cut are coming until just a few days before it arrives? Simple, people would stop buying currently existing stock if they new they could get a better deal very soon. Microsoft would want as many premiums and elites gone as possible before they put more in with better bundles (and such games could actually come inside the box ala forza and viva pinata).

Additionally, GDC starts on the 18th, the perfect time to announce something big like new bundles, a new SKU or a price cut. I might add that Microsoft has the biggest booth at the whole conference, though that doesn't always mean anything.

True, GDC is conveniently around the corner and announcing something about the box is in fact quite likely, even if it was just to make some noise. However, I am still sceptical about any major SKU updates let alone new SKU coming to stores before summer. The current shortage is more likely to be just a misclaculation of the demand, imbalancing the market for the elite/premium and arcade / halo versions. The investors want stability and predictability, major updates to products need some time to sink in before they are actually sold to anybody which is why we always hear rumours from known/trusted sources well before anything is on the market.

While it is always a joy to speculate, I think that mrstickball pretty much covered the reasons for this particular shortage.

 Knowing how people think, I'm willing to bet that when the new SKU for the box does come out, some people will still be saying "SEE!! THIS IS WHAT THE 360 SHORTAGE IN JANUARY WAS ALL ABOUT!" even if it comes for the holidays.



Paid by the alliance
to slay all the giants.

 

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halil23 said:
madskillz said:
Wow ... came back to the PC after a Valentine's dinner with wifey to see the PS trolls rabbid. Dang - do you all break for lunch? Meh ... it's the usual suspects ... cue Crazzyman, Quiet Scquall and Mike B at any moment now ...

I know for a fact that the only console stuffed into the retail markets in the U.S. are the 40gb PS3s. And guess what? A few folks are buying them, but folks want some PS that can play their old PS2 games.

A recent walk this evening through Target revealed no Wiis - even had a sign up basically stating 'Please, don't ask' - no 360s whatsoever and 4 40gb PS3s. MS is going to roll out lower priced, more reliable models timed with a few announcements at GDC.

The PS3 shaves a few units off the 360's 7M lead and the PS3ots are claiming victory. I liken that to Brownback stating he's got the most delegates ... it's funny reading and watching the uninformed defend Sony. Thanks for a good-night laugh to go along with my night cap ...
You're getting worst by the day! Are you still taking M$ pills???

 


Are you pissed you spent Valentine's Day curled up with your PS3? Heavenly Sword? Calling all cars? You disappoint me, son ...



libellule said:
To starcraft,
Possible,
it makes sense
I suppose GDC will help

To madskillz,
so you assume MS is not enought resplenish stock TO create the demand ?
Considering how the PS3 "close" in term of content/price of the Xbox360, it is a dangerouns way to follow ...

They want to sell off their old stock ... and roll out the newer, more reliable models AND create a demand for them. As I stated, it's hard in New Mexico to find a 360 on a retail shelf. That POC 40gb PS3? Not so much ... 



halil23 said:
madskillz said:
Wow ... came back to the PC after a Valentine's dinner with wifey to see the PS trolls rabbid. Dang - do you all break for lunch? Meh ... it's the usual suspects ... cue Crazzyman, Quiet Scquall, Haldol Halil23 and Mike B at any moment now ...

I know for a fact that the only console stuffed into the retail markets in the U.S. are the 40gb PS3s. And guess what? A few folks are buying them, but folks want some PS that can play their old PS2 games.

A recent walk this evening through Target revealed no Wiis - even had a sign up basically stating 'Please, don't ask' - no 360s whatsoever and 4 40gb PS3s. MS is going to roll out lower priced, more reliable models timed with a few announcements at GDC.

The PS3 shaves a few units off the 360's 7M lead and the PS3ots are claiming victory. I liken that to Brownback stating he's got the most delegates ... it's funny reading and watching the uninformed defend Sony. Thanks for a good-night laugh to go along with my night cap ...
You're getting worst by the day! Are you still taking M$ pills???

 


Fixed

 



huh? what did you fix? i don't see a difference lol




lol