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Forums - Sales Discussion - Can Microsoft afford another price cut??? erm NO

soon the games are going to be more expensive the n the console if they carry on,

anyway so by looking at the other thread i guess microsoft does not care about profit.



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Next time someone asks what is your most epic thread, this will be my choice



I hope my 360 doesn't RRoD
         "Suck my balls!" - Tag courtesy of Fkusmot

Fei-Hung said:
twesterm said:
Right, because you truly know everything and MS doesn't have piles of money.

 

ermm didn't he mean the XBOX devision rather MS as a whole?! :s 

Cuz if so, the same can be said for SONY making money on all other sectors where tehy have profited from BR and CCell and their other HD products :S

Hahaha They think about selling the mobile phone - business, because it is in the red (Sony Ericsson) The Blu has still to prove to be a moneymaker. So far it is deep in the reds. (so Sony fans always like to calculate the first Xbox losses to the 360 profits, would you please calculate BetaMax to BluRay?) The digital cameras aren't performing that well. .

Sony as a company is not that big money-maker.

Profit of Sony:

500.000.000 (I guess it was USD, but I am not sure, maybe Euro)

Profit of Microsoft

18.000.000.000 USD



Imagine not having GamePass on your console...

blizzid said:
Gobias said:
Remember how Microsoft is over 6 billion dollars in the red in their gaming division?


Good times.

 

Meanwhile, over the same time period Microsoft as a whole has posted $77.653 billion in profit:

2002 $5.355
2003 $7.531
2004 $8.168
2005 $12.254
2006 $12.599
2007 $14.065
2008 $17.681

Seriously, Microsoft isn't hurting, and neither are their investors. Even if they find it impossible to make a profit in the console gaming industry, they won't be forced to leave for monetary reasons. They'll only leave if they no longer see the Playstation as a threat to Windows. However, the way things look now they have the potential to break even on the 360, and make a profit on the 360's successor.

 

True, but...Sony computers come with Windows OS.



There is no problem for 360 to have another price cut.
But if MS wants to kill off the market.. the best way is give out 360 for FREE.



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colonelstubbs said:

Next time someone asks what is your most epic thread, this will be my choice

this is miles away from my most epi thread lol, still done good though

 



Sardauk said:
The Fury said:
c0rd said:
The Fury said:
Sardauk said:


Even then, Sony has something out of those technologies, Blu-Ray, if this is Sony's last game console gen then they can be in the knowledge that Blu-ray succeeded in the HD market. What does M$ have?

 

M$ wouldn't have gained anything directly, however you can say they've destroyed (or at least weakened) the Playstation brand . Many believe the threat of Sony's PS cutting into Microsoft is the reason they got into console gaming in the first place.

Now, I'm just confused. In what way was Playstation ever threat to M$?

 

No no, there is no such thing as destroying a brand.

Micrososft is focused on ditributing softwares/contents via the web and via XBOX Live. That is the strategy, what they consider the futur. Microsoft NEVER invented anything. It is a pure copy of the Apple model with the duo iPod/iTunes.

The strengh of MS is its grip on the PC market (Software and technologies) and the internet.

MS vs SOny ? -> This is the challenge between a software company and a technology company. It is about different business models.

This domination about the number of consoles sold is the wetdream of lifeless fanboys.

I'm pretty sure that MS can achieve better revenues with less consoles on the market. And THAT IS WHERE the question of the pricing cut becomes interesting.

IT KEEPS FUELING THE WAGER ! Not what it the best console, but who took the right track to the futur ??

 

See my point ? (Finally some intersting debat above that Fanboys shit which initiated this post).

So, your point is (and apologies if I get this wrong) is that in M$ trying to secure what they believe to be the future of computing is, and internet as a whole, in digital distribution. And they are willing to fuel out billions to establish a computer gaming console brand just to promote this. This is what they will have at the end of it, Sony has Blu-Ray and M$ has it's Digital equivilent? I Remember hearing about how M$ want to be a part of a family living room, to be the centre of it. Not just the computer in the corner. Sony themselves are trying to do the same, be the centre of the living room. They though being a hardware are doing it via hard blu-ray disc. Sony is getting in the way of M$'s plans.

Although, surely an issue with this is that the whole idea is being built of the back of the games console market that could fail. The gaming market is a niche to start with, so they had to enter that and succeed before trying to achieve their now main goal, Sony then get in the way with their Blu-Ray and the ever so dominant Playstation brand.

What was their original idea as I'm sure X-box was not designed solely to try and secure a market which at the time didn't even exist. X-box was a gaming console, right? this is what they lost billions on and their 2nd attempt is still a games console for the majority of the population, it's competing with the Wii not iTunes.

Microsft itself isn't fairing to well, if their goal if for digital distrubution and they aren't leading in the 2 places they wanted to (games and music download in Zune). Yes, their 'Live' is good and working well but if the 360 and X-box fails, what will use it?

 

... or did I mistake what you were getting at?

 

 

 



Hmm, pie.

I have to marvel at the line of argument being used. When Sony drops the price of the PS3 and takes a bath in red ink, that's "okay". When MS drops the price due to lower manufacturing costs and is close to breaking even or breaking even, then that's "desperation" and "why are they in the business if they don't plan on making money."

Give me a break.



DirtyP2002 said:

They never did, Nintendo was third last generation with a difference of 3 million consoles.

And why should this show weakness? It is a weakness to reduce the price for a product? MS is exerting pressure on Sony. Sony isn't profitable now, they said, there won't be a pricecut. A pricecut would hurt sony more than it hurts MS. And in November, the 360 will be 3 years old. A $300 price-tag for a 3 year old console isn't desperate or "weak". It is just the normal business. I think quite a few consoles from the generations before crossed the 299$ earlier.

 

You are on the correct path. The PS2 released at a price of $299 in NA. After 2.5 years on the market, the price of the PS2 was $179. That is a $120 price drop over 2.5 years. The PS3 has been on the market for less than two years and has already received $200 in price cuts. When the impending price cut is included, the Xbox 360 will have received a $100 price cut 3 years into its lifecycle. I think the 360 is doing spectacularly considering its lack of price cuts.

 



obieslut said:
Soriku said:
JaggedSac said:
Looks like the SDF cares more about this price cut than anybody else.

 

Ironic considering they're hoping for more PS3 price cuts when Sony is losing more money than MS...

 

i dont want the ps3 to get a price cut because i dont wan tto have to talk to a bunch of cheap skates on psn

 

wow you really come off as being a rich snob with that comment. wat you dont realize is that there are alot of people that just dont have enough money for a ps3 that would like one if the price was cut.  I guess i dont want a ps3 so i dont have to talk to you!! oh and that statement is virtually useless cause nobody will be talkin cause nobody has mics!! :P