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Forums - Microsoft - Analyst: 360 Needs More Than a Price Cut

True, Analysts like to point out the bleeding obvious. 'The price of oil will continue to rise' 'The US stock market is in trouble' 'Nintendo shares are much more valuable today'. Huh, yea mate, glad i pay you 100,000 per annum to repeat what you read in the newspapers.



“When we make some new announcement and if there is no positive initial reaction from the market, I try to think of it as a good sign because that can be interpreted as people reacting to something groundbreaking. ...if the employees were always minding themselves to do whatever the market is requiring at any moment, and if they were always focusing on something we can sell right now for the short term, it would be very limiting. We are trying to think outside the box.” - Satoru Iwata - This is why corporate multinationals will never truly understand, or risk doing, what Nintendo does.

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I got you, you little shits, "in need of both a price cut and new features to bring in mainstream gamers beyond the Halo/Call of Duty/GTA crowd". Ahh isn't that the mainstream crowd, the hardcores as we like to call them. All the others are "casuals" right? MS are screwed, and this analyst is just feeding me more ammunition. I can't wait to see MS crawl on their knees begging for those casuals to come over and play nice.
The thing that really gets to me is that they don't realise its not only a remote, but an entire marketing, advertising, customer base machine that has snowballed around Nintendo. MS as family entertainment? Apple has a better shot at hitting the casual / mainstream / softcores.



“When we make some new announcement and if there is no positive initial reaction from the market, I try to think of it as a good sign because that can be interpreted as people reacting to something groundbreaking. ...if the employees were always minding themselves to do whatever the market is requiring at any moment, and if they were always focusing on something we can sell right now for the short term, it would be very limiting. We are trying to think outside the box.” - Satoru Iwata - This is why corporate multinationals will never truly understand, or risk doing, what Nintendo does.

America is keeping the X360 in the game. X360 continues to do well in America. Wii is in front but is in a league of its own. PS3 price cut will boost X360 sales on average weekly sales by 40%. Currently X360 sells on average 50 000 sales per week in America this should increase to an average of around 70 000,  X360 sales in America.

Europeans buy the PS3, primarily due to anything with Sony's name on it sells in Europe. Applies to all electronics in Europe where Sony is the leading brand and mass advertising and well established brand and Sony brand loyalty. Europeans do not trust Microsoft and there is an anti-American attitude amongst some Europeans. The X360 price in europe lifted the X360 sales from 50 000 sales per week in Europe/others up to 70 000 sales per week, a boost of 40%.

Japanese region where the Japanese have rejected Microsoft and tend to reject foreign companies trying to invade their market. Japanese have chosen the Nintendo Wii in Japan over the PS3 due to Wii having a cheaper price point and suiting Japanese tastes. Last gen it was PS2 over GC in Japan. Now it is Wii over PS3. Times have changed. Sales of X360 has increased significantly in Japan in comparison to the XBox of last generation.



For the people on here arguing "the 360 is selling better than last year so this article is not true", did you actually READ the article?

It simply states, "We think the 360 has lost significant momentum to both the Wii and PS3, especially in Europe". It doesn't matter if the 360 is selling triple what it was last year, if its still being outsold by the PS3 and the Wii, it is losing momentum to them.



I actually feel like the price cut will put them dead even (~2-3%) with PS3 week-to-week, worldwide, until one of them does something drastic.



Could I trouble you for some maple syrup to go with the plate of roffles you just served up?

Tag, courtesy of fkusumot: "Why do most of the PS3 fanboys have avatars that looks totally pissed?"
"Ok, girl's trapped in the elevator, and the power's off.  I swear, if a zombie comes around the next corner..."
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no motion sening, i hope. i dont like sony anymore cause they copied nintys motion controls



When is the latest Madden 09 and various sports EA 2009 sports titles hitting American shelves?
That should help boost sales of X360 a little. X360 is not dead and buried as some analysts may say in their articles. Still a good three years or so left in it. X360 should be able to climb up to a total 40 million LTD in worldwide sales.



There is no Anti-American bias with videogames. There is an anti-american president bias, but the majority of you agree with us anyway.



“When we make some new announcement and if there is no positive initial reaction from the market, I try to think of it as a good sign because that can be interpreted as people reacting to something groundbreaking. ...if the employees were always minding themselves to do whatever the market is requiring at any moment, and if they were always focusing on something we can sell right now for the short term, it would be very limiting. We are trying to think outside the box.” - Satoru Iwata - This is why corporate multinationals will never truly understand, or risk doing, what Nintendo does.

kowenicki said:
whatever said:
For the people on here arguing "the 360 is selling better than last year so this article is not true", did you actually READ the article?

It simply states, "We think the 360 has lost significant momentum to both the Wii and PS3, especially in Europe". It doesn't matter if the 360 is selling triple what it was last year, if its still being outsold by the PS3 and the Wii, it is losing momentum to them.

 

You cant LOSE momentum TO someone else.... go back to school.   Opponents can gain more momentum to overtake... thats different.

Forget the physics definition its not relevant... but... "The impetus, either of a body in motion, or of an idea or course of events."  If anything it has gained momentum... but not as much as the PS3 and Wii.

 

 

 

If you want to be a wordsmith and it makes you feel smarter, then good for you.  But the point is clear, its losing ground to the other 2 consoles and if it wants to stay out of 3rd place, it needs to do something drastic.



I don't know what this analyst is talking about specifically but it definitely seems to me like the 360 has lost momentum, perhaps not in terms of raw sales but still.  There are more consoles overall being sold right now and the 360 is taking a smaller portion of that larger number than it was last year.

Just as an example, the first 6 months of 2007 MS claimed 22.09% of the console market, but this year that number has slipped to 20.62%.  The fact that they increased raw sales is a good thing certainly but when your competitors also increase raw sales over the same period and more than you did as well, then it is fair to say there may have been a loss in momentum.  In this situaiton the increase in raw sales is not sufficient to determine momentum because the increase effected everyone not just you.

The underlying point is that the increase in sales for all consoles is due to global market factors and not just MS's momentum.   A good analogy perhaps would be inflation and income, you can't just directly compare your income with that of someone working in 1950.  While the units may be the same the scale is not.

Just to throw some raw number weight behind this:


First 6 months Total

2007 % 2008 %
360 2,397,432 22.09% 3,695,503 20.62% 6,092,935
PS3 2,512,322 23.15% 4,966,312 27.70% 7,478,634
Wii 5,942,801 54.76% 9,263,120 51.68% 15,205,921
10,852,555 100.00% 17,924,935 100.00% 28,777,490

A fair point to make here is that even the Wii appears to have lost some position, so perhaps the real story is just that the PS3 increase changes the relative perception.   Whatever it is its not as clear cut as just looking at raw numbers.  There is a lot more to momentum then that.



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