curl-6 said:
Chrkeller said:
Brand establishment. NEC and Panasonic tried to establish gaming brands and couldn't, while MS did make xbox a recognizable brand. Xbox also sold more than Sega's first console in the master system. And for their first outing, to beat Nintendo in sales was note worthy.
It isn't unusual to lose money in order to establish brand. Amazon bled money for the 9 years, now look at Amazon.
Business is s bit more complicated than sales and initial profit.
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I still reckon 360 could have succeeded without the OG Xbox, in much the same way NES and PS1 succeeded without an established bridgehead preceding them.
Xbox was a valiant first effort, but the way I see it, it was more a case of "if at first you don't succeed, try again." They learned from their first console and came back swinging much stronger with their second.
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Oh, I greatly disagree with that. The OG established Halo as a legit top tier franchise, also pulled in a lot of PC only type of games. It set the stage for the xbox 360.
I work as a technical lead in general product goods, losing money is expected in the vast majority of cases. It is hard to establish a brand, very rare to take on the big dogs (e.g. name brands) out of the gates. New products typically have higher CoGs due to lack of volumes, Ops costs are high because efficiencies are a WIP, Capex is still being paid off, and profits are low because you have to sell at an aggressive price. The purpose of the OG xbox was brand establishment and it was successful.
As for the NES, there is a reason 9/10 gamers will say it is the most impactful console in gaming, what it did cannot be considered the norm, but should be celebrated for the outlier it is. As a rookie Jordan average 28 points on 52% shooting but expecting other rookies to do that is crazy.
Sony, good for them for being ready to take advantage of an opportunity, but I do personally think they got luckier than they were skilled. Sega via the CD, 32x, surprise launch of a super expensive Saturn.. lol, Sega committed suicide. Nintendo arrogantly stuck with cartridge, which was expensive. Make a N64 game with carts being $15 or make a ps1 game where CDs were $0.50? Sega was dead and buried, Nintendo was too expensive, so everyone went Sony. Again, Sony deserves credit for being prepared, but my lord did the big two just stupidly hand the market over to the Sony.
Google and Apple want into gaming, so did Amazon.. yet none were successful. MS did establish xbox with the OG. It was a successful console.
Last edited by Chrkeller - on 05 May 2026