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Forums - Microsoft - price cut, RRoD 2011 WHAT THE ?????


Sony wants to make up for some of the billions in losses they have already sustained on the PS3. MS does not care about making their billions in losses on the 360 back. Thus, MS is able to cut prices more aggressively than Sony.

The RROD is fixable in hardware, (it might already be fixed). The RROD problem is not fixed in public opinion, which is where they are still having a problem with it.

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mysticD said:
blackstar said:

HELP me understand this, HELP me understand MS

the crazy price-cut in all three regions: imagine the amount of money they are going to lose on HW on all three models

the crazy RRoD: the problem is unfixable and anyone says "NO, THEY ARE FIXING IT" wake up! they have been in the market for more than 2 years and a half and it's still exist and they are losing MONEY because of RRoD

the crazy amount of 3ed part exclusive games : they have lots of that , companies are not doing this for free they are getting paid for that which also means HUGE AMOUNT OF MONEY

help me understand when they are going to be proftible when the new xbox is out on 2011??

what's the point of cutting prices and loses HUGE amount of money when u are sellling well and 5 million away from ur main competitor?

discuss -if u want :)-

You can substitute your theory with PS3 and then try to come to a conclusion. 

Sony is loosing money on every PS3 right now.  Good blu-ray player cost around $300.00 (cheapest one is about $200) there is no way that PS3 cost is $99 even without the blu-ray unit.

They already said they probably won't recoup all the developement cost of PS3 (read blu-ray & cell).  (Just like MS lost billion on their RRod Debacle)

While MS pump a lot of money in to catering 3rd Party Dev, Sony is spending million on their in-house developement.  Home, KZ2 etc. 

Discuss if you want.

OK I'M SORRY EVERYONE REALLY I'M

HAVEN'T U READ THE TITLE ??? 2011???

I'M JUST WONDERING AOUT THE RELEASE DATE OF THE THE NEXT CONSOLE WHICH DOESN'T GIVE THE 360 IT'S TIME TO MAKE PROFITS ,, NO ABOUT THE LOSES ALONE

CAPS WILL HELP ........... I HOPE

I WASN'T TROLLING ,, I WAS SAYING : HELP ME UNDERSTAND BECAUSE OBVIOUSLY I DON'T SEE MS POINT

sorry again

 



No firm launch date is set. Don't expect to see a repeat of Xbox. There wont be any problems with Nvidia this time around Ms owns the design and can have any vendor they wish manufacture the parts. So there will be no need for them to prematurly end production of the console. The 360 will continue to be sold alongside the 720 or whatever you want to call it as long as it is profiable for them to do so.



blackstar said:

HELP me understand this, HELP me understand MS

the crazy price-cut in all three regions: imagine the amount of money they are going to lose on HW on all three models

the crazy RRoD: the problem is unfixable and anyone says "NO, THEY ARE FIXING IT" wake up! they have been in the market for more than 2 years and a half and it's still exist and they are losing MONEY because of RRoD

the crazy amount of 3ed part exclusive games : they have lots of that , companies are not doing this for free they are getting paid for that which also means HUGE AMOUNT OF MONEY

help me understand when they are going to be proftible when the new xbox is out on 2011??

what's the point of cutting prices and loses HUGE amount of money when u are sellling well and 5 million away from ur main competitor?

discuss -if u want :)-

 

M$ executives masturbate while thinking about the distress that they cause you.



they arent making money, theyre just doing it because they can.



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@jaggedsac:
some words are best unsaid
@blackstar:
some threads best unposted



mysticD said:
blackstar said:

HELP me understand this, HELP me understand MS

the crazy price-cut in all three regions: imagine the amount of money they are going to lose on HW on all three models

the crazy RRoD: the problem is unfixable and anyone says "NO, THEY ARE FIXING IT" wake up! they have been in the market for more than 2 years and a half and it's still exist and they are losing MONEY because of RRoD

the crazy amount of 3ed part exclusive games : they have lots of that , companies are not doing this for free they are getting paid for that which also means HUGE AMOUNT OF MONEY

help me understand when they are going to be proftible when the new xbox is out on 2011??

what's the point of cutting prices and loses HUGE amount of money when u are sellling well and 5 million away from ur main competitor?

discuss -if u want :)-

You can substitute your theory with PS3 and then try to come to a conclusion. 

Sony is loosing money on every PS3 right now.  Good blu-ray player cost around $300.00 (cheapest one is about $200) there is no way that PS3 cost is $99 even without the blu-ray unit.

They already said they probably won't recoup all the developement cost of PS3 (read blu-ray & cell).  (Just like MS lost billion on their RRod Debacle)

While MS pump a lot of money in to catering 3rd Party Dev, Sony is spending million on their in-house developement.  Home, KZ2 etc. 

Discuss if you want.

you cannot calculate ps3 production cost from a standalone blu-ray, that also needs a lot of other expensive chips for the decoding, in ps3 teh cell takes over decoding so you should actually look at costs for bd rom computer drives to see how much the blu-ray costs sony, and here in europe they are at ~70€ atm (since sony is producing these drives themself it will be even cheaper for them to integrate it).

yes the cell is more expensice than the cpu of the xbox, but overall cost for ps3 decreased noticabley over the last year and the last calcualtions of analysts i have seen in janary already resulted in a production cost of roughly $400. 400$ production cost still results in a noticable loss when selling at 400, since they have costs for packaging shipping, marketing... But now with the new hardware revision and shrinked rsx as well as the blu ray drives constantly getting cheaper to produce they might allready be slightly profitable at $400. 

a pricedrop now would be bad for sony as they are right now on track to get profitable with hardware too, so i guess sony will wait first how much ms gains with their drops. also waiting 1-2 months will increase chances for teh 45nm cell chips to be available to them which should reduce cost quite a bit (the cell probably is still one of the most expensive components in the ps3, and a shrink usually drops production costs for a chip by 30-50%).

Xbox pricedrop also has a lot strategy in it, they know that sony was gaining a lot momentum and additionally lowering costs constantly so the preasure on sony was dropping more and more. Right now its too early for sony to drop the price so with dropping price now ms hopes to put sony again under pressure and maybe let sony loose some sales momentum. If MS strategy works out sony will have the choice of dropping price and loosing more money, or loosing out on a lot sales this christmas.

but atm its still undecided if that strategy works out. the price cut will definitely give a spike that was allways expected but the spike alone will not hurt sony, but it will hurt sonyif there will be a longer lasting effect especially if it lowers ps3 sales (if its only a 10-20k boost to xbox sales after the spike then sony can maybe live with it, but if they also loose own sales then they will have to act).



WessleWoggle said:
They have a need to come in second and they don't care how much they loose to do so.

 

 well its starting to look like they won't even come second. Both Sony and MS are losing buckets of money, but at least Sony is selling systems and looking to come second this gen.

Next gen i'm sure Sony will be smarter and their next console will START at $300-$400 then go down from there. Microsoft will really have no advantage going into next gen. Unless they make their next console extremely cheap like the wii, i don't see them doing better than 3rd, again.



blackstar said:

HELP me understand this, HELP me understand MS

...

help me understand when they are going to be proftible when the new xbox is out on 2011??

...

discuss -if u want :)-

This is very nice of you (PS owner...) to worry about MS-entertainement division profitability.

But you have to thing with the MS model :

-> One billion $$$ revenue generated by the XBOX Live (announced during the E3)

-> More games sold due to a bigger install base

.. and where does the 2011 deadline comes from ?????

 

Besides, history has proven that cheap consoles always win (and I mean console, not DVD/BR players) .. who is wrong here ?



 

Evan Wells (Uncharted 2): I think the differences that you see between any two games has much more to do with the developer than whether it’s on the Xbox or PS3.

quaiky said:
mysticD said:
blackstar said:

HELP me understand this, HELP me understand MS

the crazy price-cut in all three regions: imagine the amount of money they are going to lose on HW on all three models

the crazy RRoD: the problem is unfixable and anyone says "NO, THEY ARE FIXING IT" wake up! they have been in the market for more than 2 years and a half and it's still exist and they are losing MONEY because of RRoD

the crazy amount of 3ed part exclusive games : they have lots of that , companies are not doing this for free they are getting paid for that which also means HUGE AMOUNT OF MONEY

help me understand when they are going to be proftible when the new xbox is out on 2011??

what's the point of cutting prices and loses HUGE amount of money when u are sellling well and 5 million away from ur main competitor?

discuss -if u want :)-

You can substitute your theory with PS3 and then try to come to a conclusion. 

Sony is loosing money on every PS3 right now.  Good blu-ray player cost around $300.00 (cheapest one is about $200) there is no way that PS3 cost is $99 even without the blu-ray unit.

They already said they probably won't recoup all the developement cost of PS3 (read blu-ray & cell).  (Just like MS lost billion on their RRod Debacle)

While MS pump a lot of money in to catering 3rd Party Dev, Sony is spending million on their in-house developement.  Home, KZ2 etc. 

Discuss if you want.

you cannot calculate ps3 production cost from a standalone blu-ray, that also needs a lot of other expensive chips for the decoding, in ps3 teh cell takes over decoding so you should actually look at costs for bd rom computer drives to see how much the blu-ray costs sony, and here in europe they are at ~70€ atm (since sony is producing these drives themself it will be even cheaper for them to integrate it).

yes the cell is more expensice than the cpu of the xbox, but overall cost for ps3 decreased noticabley over the last year and the last calcualtions of analysts i have seen in janary already resulted in a production cost of roughly $400. 400$ production cost still results in a noticable loss when selling at 400, since they have costs for packaging shipping, marketing... But now with the new hardware revision and shrinked rsx as well as the blu ray drives constantly getting cheaper to produce they might allready be slightly profitable at $400. 

a pricedrop now would be bad for sony as they are right now on track to get profitable with hardware too, so i guess sony will wait first how much ms gains with their drops. also waiting 1-2 months will increase chances for teh 45nm cell chips to be available to them which should reduce cost quite a bit (the cell probably is still one of the most expensive components in the ps3, and a shrink usually drops production costs for a chip by 30-50%).

Xbox pricedrop also has a lot strategy in it, they know that sony was gaining a lot momentum and additionally lowering costs constantly so the preasure on sony was dropping more and more. Right now its too early for sony to drop the price so with dropping price now ms hopes to put sony again under pressure and maybe let sony loose some sales momentum. If MS strategy works out sony will have the choice of dropping price and loosing more money, or loosing out on a lot sales this christmas.

but atm its still undecided if that strategy works out. the price cut will definitely give a spike that was allways expected but the spike alone will not hurt sony, but it will hurt sonyif there will be a longer lasting effect especially if it lowers ps3 sales (if its only a 10-20k boost to xbox sales after the spike then sony can maybe live with it, but if they also loose own sales then they will have to act).

You are missing the point.

Company does this to gain marketshare.  It's not different whether it's Sony or Microsoft (you just happen to have a blind fanboys tinted glasses on).  Sony willing to loose billion of dollar and even the market share to get blu-ray to be the next standard.  

Sony also want to have IP that rival that of Halo on the MS side so they are willing to pump millions into KZ2.  Microsoft on the other hand want what Sony have last gen and a bigger presence in living room so they are willing to lost billions to do this.

I still to see your point aside from the fact this is just another Sony fanboy post in MS forum to turn everything Microsoft into something bad and evil.

I thought it is kinda funny that PS3 fanboys no longer bring up thing like BC as being important , I won't defend Microsoft many stupid and greedy action but really Sony is no difference.  They taut BC at the begging of this gen and bashing MS every turn but now they are willing to gut their machine of this once major feature of PS3 so they can reduce price (and lost less money on PS3 and thus gain market share (which so far working really well). 

If Sony willing to loose money, loose features to gain marketshare why is it any different when Microsoft does it.