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Forums - Sales Discussion - You got to hand it to Microsoft

thx1139 on 25 November 2008
Cueil said:
Picko said:
JPSandhu said:
Picko said:

Microsoft has been lucky because the financial crisis and the resulting recessions (regardless of whether they have happened or happen) have made the 360 relatively more appealing than the PS3 than what would be the case during normal economic times. The price of the PS3, given current economic conditions, is an absolute killer and any price differential between it and the 360 is only magnified. To what extent they were aware of this I'm not sure, but its entirely possible that a good deal of their success against the PS3 over Christmas is the result of a little bit of luck.

 

is it luck or is it strategy, i think its the ladder,  MS played the crisis to it advantage.  Sony on the other... eh id rather not get into it.

 

It is very difficult to play a financial crisis to one's advantage, particularly when practically no-one understands what is going on or how weak conditions will be. It is common to lower prices when things are weak, the interesting part here is that neither of Microsoft's competitors were going to lower price - Nintendo because it already has excess demand and Sony because they are already selling below cost. In that regard it could have been a strategic move, however I suspect their pricing plans were considered well before we knew how bad the economy was.

 

Everyone with a brain knew this was comming.  I'm sure that Microsoft had it planned months in advance, but seeing the trouble they may have waited longer than that initially wanted to.

I am certain MS planned this for last year, but the RRoD problem delayed the price reduction to $199, $299, $399.  Unlike MS Sony did not capitalize on this delay.  MS has capitalized on Sony being arrogant and making mistakes. If you really know the history of MS ( I have been a MS partner for 15 years ) you know that what really has been the key to thier success is capitalizing on competitors mistakes.  Windows took over because IBM and Apple were arrogant and made mistakes with the MAC (kept prices far to high) and OS2 (didnt support the platform with software or affordable development tools).  The Office software suite took over because of mistakes Borland, Lotus and WordPerfect made (key mistake is they didnt take Windows seriously and concentrated on DOS market).

 



Its libraries that sell systems not a single game.

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xman on 25 November 2008
superbeast1370 said:
MS loves to Cockblock Sony. they're the dirtiest player in the industry. but hey, anything to win. 2009 is gonna be interesting.

 

Yeah thats it all they care about is Sony.  Sersiouly they can afford a price cut cause its a three year old system so they do it at the perfect time and you hold it against them.  I dont get any console fans.  Its called COMPETETION.

What exactly was dirty by MS?  Also why isnt nintendo a dirty player they are wiping the floor with both sony and MS and to be honest there system is overpriced?

Get over it Sony made many mis steps this generation and they are paying there price FOR THERE mistakes.

 

 



PS3, WII and 360 all great systems depends on what type of console player you are.

Currently playing Call of Duty Modern Warfare 2, Fallout 3, Halo ODST and Dragon Age Origins is next game

Xbox live:mywiferocks

Snake612 on 25 November 2008

Microsoft is indeed giving a hell of a fight this generation. However, its going to get even more competitive in 2009.



TO GOD BE THE GLORY

xman on 25 November 2008
thx1139 said:
Cueil said:
Picko said:
JPSandhu said:
Picko said:

Microsoft has been lucky because the financial crisis and the resulting recessions (regardless of whether they have happened or happen) have made the 360 relatively more appealing than the PS3 than what would be the case during normal economic times. The price of the PS3, given current economic conditions, is an absolute killer and any price differential between it and the 360 is only magnified. To what extent they were aware of this I'm not sure, but its entirely possible that a good deal of their success against the PS3 over Christmas is the result of a little bit of luck.

 

is it luck or is it strategy, i think its the ladder,  MS played the crisis to it advantage.  Sony on the other... eh id rather not get into it.

 

It is very difficult to play a financial crisis to one's advantage, particularly when practically no-one understands what is going on or how weak conditions will be. It is common to lower prices when things are weak, the interesting part here is that neither of Microsoft's competitors were going to lower price - Nintendo because it already has excess demand and Sony because they are already selling below cost. In that regard it could have been a strategic move, however I suspect their pricing plans were considered well before we knew how bad the economy was.

 

Everyone with a brain knew this was comming.  I'm sure that Microsoft had it planned months in advance, but seeing the trouble they may have waited longer than that initially wanted to.

I am certain MS planned this for last year, but the RRoD problem delayed the price reduction to $199, $299, $399.  Unlike MS Sony did not capitalize on this delay.  MS has capitalized on Sony being arrogant and making mistakes. If you really know the history of MS ( I have been a MS partner for 15 years ) you know that what really has been the key to thier success is capitalizing on competitors mistakes.  Windows took over because IBM and Apple were arrogant and made mistakes with the MAC (kept prices far to high) and OS2 (didnt support the platform with software or affordable development tools).  The Office software suite took over because of mistakes Borland, Lotus and WordPerfect made (key mistake is they didnt take Windows seriously and concentrated on DOS market).

 

Correct like any buisness minimize your mistakes and capitilize on your competation.  I think they are also trying though not sure they will be succesful to go afte the WII now that there price point is under $250.00

 



PS3, WII and 360 all great systems depends on what type of console player you are.

Currently playing Call of Duty Modern Warfare 2, Fallout 3, Halo ODST and Dragon Age Origins is next game

Xbox live:mywiferocks

perpride on 25 November 2008

I agree with you. I don't think anybody anticipated the last two price cuts to work so well....now it's Sony's time to respond. Should they fail to do so, they will have a longer road to crawl back.



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Devise01 on 25 November 2008

I think the reduction in RROD problems in new hardware has also been a major driver of this lastest surge. I personally did not make any recommendations to friends or family to purchase a 360 in 2007 because of RROD issues. However I feel much more confident to recommend the system now and have so to may people.

I can not wait till my 8 year nephew gets his 360 this Christmas.



thx1139 on 25 November 2008
Devise01 said:
I think the reduction in RROD problems in new hardware has also been a major driver of this lastest surge. I personally did not make any recommendations to friends or family to purchase a 360 in 2007 because of RROD issues. However I feel much more confident to recommend the system now and have so to may people.

I can not wait till my 8 year nephew gets his 360 this Christmas. :)

 

 This also is part of the puzzle. People are just more confident in the 360 this Holiday season and every month that goes by with the Falcon and Jasper chipsets more people will feel confident that the console will be just fine for them.



Its libraries that sell systems not a single game.

KichiVerde on 25 November 2008

It seems silly that MS masterminded this turn of events. They are simply benefiting from a financial crisis that has put Sony in a difficult position. The unfavorable export situation brought about by a weak dollar has vastly reduced their profit margin. For that matter the Wii is also at a loss. Would any one say that MS planned that too?





thx1139 on 25 November 2008
KichiVerde said:
It seems silly that MS masterminded this turn of events. They are simply benefiting from a financial crisis that has put Sony in a difficult position. The unfavorable export situation brought about by a weak dollar has vastly reduced their profit margin. For that matter the Wii is also at a loss. Would any one say that MS planned that too?

 

 No they didnt mastermind this turn of events. The turn of events (which started with a poor holiday season overall last year in retail. Or I could say it really started when G.W. was elected back in 2000) just made Sony's problems and arrogance that much worse.  Sony really thought they could do whatever they wanted this generation.  That arrogance killed Sony and this holiday and possibly all 2009 will just make the loss of marketshare that much bigger.



Its libraries that sell systems not a single game.

NJ5 on 25 November 2008
thx1139 said:
KichiVerde said:
It seems silly that MS masterminded this turn of events. They are simply benefiting from a financial crisis that has put Sony in a difficult position. The unfavorable export situation brought about by a weak dollar has vastly reduced their profit margin. For that matter the Wii is also at a loss. Would any one say that MS planned that too?

 

No they didnt mastermind this turn of events. The turn of events (which started with a poor holiday season overall last year in retail. Or I could say it really started when G.W. was elected back in 2000) just made Sony's problems and arrogance that much worse. Sony really thought they could do whatever they wanted this generation. That arrogance killed Sony and this holiday and possibly all 2009 will just make the loss of marketshare that much bigger.

I can assure you that Sony's execs are worried about much more than market share right now. It's just not in the news yet (well, it is barely), just wait about two months.

 



My Mario Kart Wii friend code: 2707-1866-0957