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Forums - Microsoft - MSFT Game Division - Concerns and Challenges Moving Forward

DMeisterJ on 23 July 2008
kn said:
Great post again, Bumidan... I do find it interesting the acceptance of people in THIS post but when you posted similar type of analysis that didn't say nice things about sony, you were a troll. Nice. Regardless, I agree completely but I think their continued struggle is primarily quality control costs. If they had a solid build the first go-round, they wouldn't have spent as much on the "periphery" to R&D the cause, fixes, etc. I know they are on their 3rd or 4th DVD drive and so on. They have spent way too much time addressing the RROD problem when they should have been focusing on cost reduction on the motherboard... Long term I don't see the current Xbox platform making enough money to A)capture back the billions lost and B)Set them up in the black for a next-gen launch. Maybe they are hoping to hang in there long enough until Media Center and HTPCs have taken over the living room and then the Xbox can go away as it won't be needed any more. (given that most HTPCs are running a Microsoft OS)


Well, legend and madskillz called it "ridiculous" but that's the same as a troll, right?

:/



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JaggedSac on 23 July 2008

The fact that M$ is apparently "struggling" does not in any way affect me. They have an amazing line-up of games for the rest of this year, more games to be announced(Bungie's 3) and I am currently looking at $600 worth of games to get before the end of the year. They can keep "struggling" as long as they keep delivering incredible gaming experiences and with the way they sell software on this beast, it is guaranteed to get great titles for the rest of this gen.



bumidan on 24 July 2008

@JaggedSac

In my humble opinion, MSFT will continue to struggle to achieve consistent and decent profitability in their games division.

For gamers, that is a good thing. As long as MSFT feels that they have a chance to dominate, they will keep on doing what they have been doing in the past. They are very persistent.

So, enjoy it as long as it lasts. :)



mysticD on 24 July 2008

For MS to get increase sale on the 360, they need some serious price cut. After 2 years, the console is still over $300.00. The hardcore gamers that are willing to drop that kind of money for console are becoming less and less, especially with PS3 at $399 sharing the same core user base.

That said, 360 is still better than last year and it seems at this point MS care much more about profitability than having higher unit sell than PS3. They are comfortable where they are at and don't feel the need for price cut. Even in Europe the price cut was more of a US$ adjustment than a true price cut. It seems they have certain goal set at the beginning of this cycle and so far 360 to them has more than exceed their goal.



kn on 24 July 2008
DMeisterJ said:
kn said:
Great post again, Bumidan... I do find it interesting the acceptance of people in THIS post but when you posted similar type of analysis that didn't say nice things about sony, you were a troll. Nice. Regardless, I agree completely but I think their continued struggle is primarily quality control costs. If they had a solid build the first go-round, they wouldn't have spent as much on the "periphery" to R&D the cause, fixes, etc. I know they are on their 3rd or 4th DVD drive and so on. They have spent way too much time addressing the RROD problem when they should have been focusing on cost reduction on the motherboard... Long term I don't see the current Xbox platform making enough money to A)capture back the billions lost and B)Set them up in the black for a next-gen launch. Maybe they are hoping to hang in there long enough until Media Center and HTPCs have taken over the living room and then the Xbox can go away as it won't be needed any more. (given that most HTPCs are running a Microsoft OS)


Well, legend and madskillz called it "ridiculous" but that's the same as a troll, right?

:/

 

Try this as a comparison just for grins.  Granted in hindsight it isn't as ugly as I remembered but Bumidan but fail, troll, and fanboy were common themes... Needless to say, as you mentioned in another thread, FUD is major on the rise.  People need to stop FUDding and start playing.

http://vgchartz.com/forum/thread.php?start=50&id=30468



I hate trolls.

Systems I currently own:  360, PS3, Wii, DS Lite (2)
Systems I've owned: PS2, PS1, Dreamcast, Saturn, 3DO, Genesis, Gamecube, N64, SNES, NES, GBA, GB, C64, Amiga, Atari 2600 and 5200, Sega Game Gear, Vectrex, Intellivision, Pong.  Yes, Pong.

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shanbcn on 24 July 2008
mysticD said:
For MS to get increase sale on the 360, they need some serious price cut. After 2 years, the console is still over $300.00. The hardcore gamers that are willing to drop that kind of money for console are becoming less and less, especially with PS3 at $399 sharing the same core user base.

That said, 360 is still better than last year and it seems at this point MS care much more about profitability than having higher unit sell than PS3. They are comfortable where they are at and don't feel the need for price cut. Even in Europe the price cut was more of a US$ adjustment than a true price cut. It seems they have certain goal set at the beginning of this cycle and so far 360 to them has more than exceed their goal.

EU price cut was desperation but still PS3 keep outselling it. MS wanted EU price cut to have same kind of effect which PS3 price cut got in NA. I mean 360 didn't outsell PS3 for even one week in others after huge price drop.

 



bumidan on 24 July 2008

One of the points I've made is that even with a price cut, will MSFT necessarily sell MUCH MORE consoles compared to Sony? I think it is not likely.

Unless they make it so that a 360 is $199 or even lower, then maybe. But a token $50 price cut doesn't seem to do it.

This is why I think it would be difficult for MSFT to have a lead and sustain and/or increase its lead in console sales.

1. Without a SIGNIFICANT price cut, it won't sell much more than PS3
2. Without a price cut, the only way to sell more consoles is to increase demand through games and other COOL features.

Either way, it would cost a lot of money for MSFT to execute either strategy. Price cut will hurt, while making the X360 "cool" (whatever that means to the consumer) means additional investments - whether in exclusive games, or exclusive features.



bumidan on 24 July 2008
ItsaMii said:
Make a Nintendo thread and you can claim that every VGC fanboy faction have officially accused you. Pretty sad that most people ignored the content of your posts for the subject.

"OMG, don`t you dare say anything about my precious M$".

@DMeisterJ
you also upgraded bumidan posts from speculation (Sony losses) to facts (MS uncertain future), that is also irony in my eyes.

 

 Maybe I'm a closet Wii fanboy... despite not having a Wii.

Though that doesn't really stop other users from being fanboys of the other consoles.