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Forums - Sales - Console WAR question..

MAFKKA said:

I have a question.

(long post, but i guess you could skip down to the bold part)

Hardware tend to be sold with a loss, right?
Production cost + console price = "X", with "X" often being a negative number the first years or so, right? So the more hardware you sell, the higher the total of production cost is going to be, ergo you're hardware revenue is in the red, right?

So why is "console sold" the main thing among bickering girls in these wars? Why wouldn't you be more interested in profit? Serious question. Why is consoles sold such proof of success, when hardware goes for a loss? Software and overall extras (downloads, add ons, adapters, keyboards.. etc.) is usually the moneymakers and tends to be profitable from day one. So once again, why isnt the War about profit instead of who is loosing more money at first?

Never quite understod that part. Obviously i know that hardware too will start being profitable at a certain point. But at this point, a generation of 3-4 year old (young) consoles where the tide has just about started to turn and consoles barely being profitable, why is it important to know who's sold more hardware rather than which division is more profitable? The later may ofcourse include the profit generated by hardware in the end(might not change anything, but it would make more sense!)

Im not trying to start anything with this post. I truly dont understand this cat fight with consoles sold. It all come down to profit for these companies anyway, because i highly doubt that any of them are thinking "yey we're wining the war", except for when they need to push the market their way with statements that they're doing so much better with sales than their competition. SO.. Why isnt success measured in profit? 

 

Market share is sometimes, just as important as profits, in the long term health of the console.  Nintendo has the freedom, since it's first party games are selling well, BUT they make money on each console, so that is a plus as well.  The primary reason of M$ discontinuing the original Xbox was due to a poor contracting in getting the scale of the cost to slide down, where as the 360 has lifecycle cost reduction in play.  The ps3 of course has the same thing as well, but it's selling price is trailing the production cost, which is why Sony is holding off on a price cut.  Some say M$  held off on a price cut, due to RROD warranty cost...which makes sense.  Nintendo’s 1st party plan worked this gen, but it didn't in the last, so it's not foolproof.

 

 



"...You can't kill ideas with a sword, and you can't sink belief structures with a broadside. You defeat them by making them change..."

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MAFKKA said:
Exblackman said:
Do you want to wait months at a time to see profit margins and have very little to debate OR speculate now off easier attainable numbers (hardware and software numbers) and have more dsicussions because of the vagueness of said numbers in who doing better.

Really that is truth of the matter and this is a forum so more discussions are better. So is there really any choice?:

 

 

Ofcourse dabate is better due to it being a forum and all. But this war isnt debated, its borderline hatred and drawn to such lenghts with charts, diagrams, trend calculations and so forth, off of just what you said, vague numbers. How can you claim success using insufficient numbers?

And you can still debate on technology, better game library, future happenings etc. But this war is about trying to prove to the competition that you are apart of the winning team. I.E the console that sells most. Which is what i dont understand.

 

 

 

Better game library topics are opinionated at best and will become like console war topics basically pissing matches.Gaming tech happens too far in between in consoles so long periods of nothing.Future happenings is only topic you mention that is sustainable throughout the whole year but is that enough to occupy the forum user.The console war topics are the filling of the forum pie and cannot be replace only seasoned. In othe words, People like to ARGUE.

 

 



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Wii_R2_Hardcore said:

Good question. I think the profit is important in the short term, but the market share is the most important thing in the long term, otherwise the competition will eventually destroy you. Take the Gamecube as an example. It was a profitable machine during the last generation, but Sony almost monopolized the market, to the point that Nintendo needed to change radically its strategy (make a revolution) to survive this generation. Now they have both things, profit and market share. They will probably still be around the next generation.

Besides, history has shown us, that the most succesful the console is, in terms of market share, the bigger library it has. More games and maybe better chances to find those games you find "the best" games. That can make your console "better", at the end. But those were the years when most of the people had one machine only. Now is very common to have two or more current generation consoles.

If you are asking yourself "what is the deal with fanboyism?". Well, tell me about it. I don't get it either.

I planned on writing a post here, but you said pretty much everything I could have. Nicely done.

 

One other thing though.

 

If you measured things in profit, nothing would ever change. You'd have Nintendo winning almost all the time, even during their "bad periods". Also, 2007 wouldn't be that different from 2008.

With unit sales, things change all the time. 360 is up 40% in March, Ps3 is dead on even (year over year). Profit wise? I'd guess Microsoft is roughly at the same (losing money on  360 hardware, making more from SW), or a slight increase. Sony is probably up a fair bit. Still, that's minor.

 

It should be about profit, but profit is... dull. The quarterly changes simply aren't big enough. There are some threads about it (they appear monthly or so), and they generally go through most of what you can discuss on a forum.

 

Unit sales, on the other hand, change a lot monthly.



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That is VGChartz LONGEST review. And it's NOT Cute Kitten DS

He who is many wins. I not care if MS loses money on Xbox, I care if they sell more consoles than Sony.