By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Sales - Microsoft and Sony are destroying their (and each other's) gaming business

Auron said:
NJ5 said:
libellule said:
NJ5,

YEAH YEAH, I know it

but it doesn't count the total PS sales, does it ?

whatever, let's say they made 3 billions (at very best) on the PS/PS2, so it is obvious they have lost everything.

True I was just comparing with PS2, not PS1.

They haven't lost everything, it's just kind of amazing that not even a PS2-like success would be enough to recover their losses with the PS3. Those losses are just unbelievable (almost as unbelievable as MS's losses with the original Xbox).

I'm going to bed pretty soon as I have to work tomorrow, so see you.

@Auron: Sorry but I'm not here to feed trolls anymore, I'd rather reply to well made posts like most of the other ones in the thread.

 


Yea it's much easier to pay attention to the posts praising how smart you are then to those which disagree with you. Alright i won't post anymore in this thread either. I await your next thread of bias.


Wow, what a complete troll. I'm suprised no one's told this guy to shove it. The OP didn't even mention the Wii, probably to avoid the notion that he might be a fanboy. Try reading posts next time for what they are: opinions to be respected...dumbass...



Around the Network

@Kasz216,

==> u are right, they should not have done Loos leading for the PS2 ...

Maybe the Emotion Engine costed a lot at the beginning.

Remember it is able to launch and lead missles ^^



Time to Work !

NJ5 ignore the fanboys and trolls, this an excellent post. Both MS and Sony are spending exorbitant amounts of money for what amounts to no return as of right now. I can't believe people are don't get your point of MS losing revenue with a price cut before a system selling game like GTAIV and about Sony losing revenue on bundling games that would have other wise netted them huge amounts of money via licensing fees.



I think most ppl are forgetting Microsoft has the upper hand in this current stage. Not only are there more consoles out for X360 right now, but Microsoft has more money. And to add to that fact, Microsoft is a US-based company that records everything in dollars.

This is key, as the most recent price cut in Europe was the result of a weak dollar. More than likely Microsoft figured they can make up for the money lost on margin to be made through volume. Prior to GTA IV, I think Microsoft can cut the price of XBox 360 down to a point where they break-even, at least in Europe.

Sony does not have any currency advantage and rather the Japanese Yen handicaps the company. With the dollar's continuous decline, Sony might never see a profitable Playstation 3 console sold in America. They can only keep the boat from sinking for so long.

I am not saying in anyway or form that Sony's PS3 will fail or that XBox 360 is poised for incredible success. What I am trying to show here is, more than likely, XBox 360 will retain its lead through the rest of the lifecycle with Sony playing 3rd place. Microsoft will continue to retain cost advantage unless the dollar somehow rebounds extremely strongly.



I think what NJ5 is saying that Microsoft and Sony, with their rash marketing decisions on trying to pump out high quality titles with A LOT of resources (money/revenue) are draining and rushing the video game market into some form gaming recession. What he doesn't mention, that since Nintendo has marketed the Wii in a new and different direction, Nintendo will profit more, while both Sony and Microsoft waste resources and money trying to take each other out. Am I right or not?



Around the Network
Kasz216 said:
Username2324 said

 

 


Bundling doesn't hurt the developer. Developers love it. Bundling hurts Sony. Or at least it does when they start bundling 3rd party games instead of first party games... because third party games are going to cost Sony more.

Or at least I think that's what NJ5 is trying to say.

Put it this way. Say sony gets... 10 dollars for every game sold or so. (They do have the highest liscensing cost of the big 3 to my knowedge.)

So they get 10 dollars for every copy of MGS3 sold.

Now say with the MGS3 bundle they are paying 30 dollars per copy of MGS3.

They make 40,000 bundled systems. MGS3 has to sell 120,000 copies just to break even on MGS software sales.

Now say Sony makes, 20 dollars on each first party game. It costs them about 5 dollars to make the game. So they're losing 5 dollars per bundle on that game.

For each 1st party game they sell it covers 4 bundled copies as far as breaking even.

 Like I said, please provide facts, not speculation.
 


Username2324 said:
Kasz216 said:
Username2324 said

 


Bundling doesn't hurt the developer. Developers love it. Bundling hurts Sony. Or at least it does when they start bundling 3rd party games instead of first party games... because third party games are going to cost Sony more.

Or at least I think that's what NJ5 is trying to say.

Put it this way. Say sony gets... 10 dollars for every game sold or so. (They do have the highest liscensing cost of the big 3 to my knowedge.)

So they get 10 dollars for every copy of MGS3 sold.

Now say with the MGS3 bundle they are paying 30 dollars per copy of MGS3.

They make 40,000 bundled systems. MGS3 has to sell 120,000 copies just to break even on MGS software sales.

Now say Sony makes, 20 dollars on each first party game. It costs them about 5 dollars to make the game. So they're losing 5 dollars per bundle on that game.

For each 1st party game they sell it covers 4 bundled copies as far as breaking even.

Like I said, please provide facts, not speculation.


Facts on what? That Sony gets it's own games at cost?  Even if Sony got MGS4 at cost. 

Are you suggesting Sony gets MGS4 at cost to where Konami makes no profits on the bundles? 

 

 



GTA4 and MGS4 are highly unlikely to be bundled "for free", so much of this thread is irrelevant.



Sorry for all the supposed fanboyism going around J, but I for one feel that Sony has really not started trying yet.
Bundling software ensures sales for the companies producing them.
The companies who made these games right now want results. They want sales. Sony understands this, so they bundle the system.
As I've seen so far the bundle systems run 449$, So, really they are not losing any money on a free game.
I would think Sony would be shooting themselves in the foot, if and when they drop the price to 300 or 350, unless that doesn't happen until Christmas. If that were to happen now, I think it would be safe to say that they were willing to sacrifice revenue in order to appease the exclusivity dev's ad ensure a future for the ps3. So far as I can tell this is Sony's opinion.
"Our system is priced rediculously cheap for what it does. It has some amazing games coming out very very soon. We believe our brand name is still one of the best and that we will keep people coming back if only just for that. We have established an impact that every gamer has felt in the last 10 years, playstation is always at the forefront of 'quality'. We are in this business for the long haul, and will outlast any competition due to our games lineup and the loyalty of our gamers from the past quality games we have released. Pay for our system now, because we will not be lowering the price. Do not be the last one on your block to own a blockbuster game such as MGS4 GTAIV LBP FF13"



theprof00 said:
Sorry for all the supposed fanboyism going around J, but I for one feel that Sony has really not started trying yet.


"Our system is priced rediculously cheap for what it does. It has some amazing games coming out very very soon. We believe our brand name is still one of the best and that we will keep people coming back if only just for that. We have established an impact that every gamer has felt in the last 10 years, playstation is always at the forefront of 'quality'. We are in this business for the long haul, and will outlast any competition due to our games lineup and the loyalty of our gamers from the past quality games we have released. Pay for our system now, because we will not be lowering the price. Do not be the last one on your block to own a blockbuster game such as MGS4 GTAIV LBP FF13"


The fanboyism bold is ironic.

 

Sony hasn't started trying yet, so that's why its not winning?

 

Anyway, the system is not rediculiously cheap, I don't care if it produces gold from copper, through alchemy.

 

The brand name can't carry Sony. Why would they have to rely on just the brand name to get userbase?

 

Playstation is not at the forefront of quality. The PS3 is the first system they got right on the first try, ever. PS1 had lense track problems, PS2 had DRE's and disc scratches and PSP had dead pixils. In fact, the Playstation brand products are notoriously easy to break when dropped. If I were a consumer, I would call them "flimsy."

 

The last bolded part is just silly. Would you put that in a PR release? You know why Sony didn't own this generation? Stigmatization. Sony has been stigmatized as having "no exclusive games" and being "far too expensive." It was a running joke for the first year of the PS3's lifespan.

 

As for listing your 08 lineup, all companies should do it more, except Sony, who does it plenty already. 



I don't need your console war.
It feeds the rich while it buries the poor.
You're power hungry, spinnin' stories, and bein' graphics whores.
I don't need your console war.

NO NO, NO NO NO.