Giving Gebx a run for his money eh? well... atleast now we have balance...

 

Edit: Just read it, and to be honest the price cut truly did move things along, BUT it could and SHOULD have done alot more @ a price point of $200, but it didn't so looking at it that way it did somewhat underachieve in that aspect.

 

Futhermore, although flawed somewhat i agree with this one FAR more then the one Gebx posted, which was so stupid it was funny.

@TC- Good post, backed with fair logic.

 

                                                          {~That is My Answer~}

Someone correct me if I am wrong here.

I see people now claiming that it is the recession to blame for the YOY 360 growth not being larger and only outselling the PS3 by around 500k units for 2009.

Now, considering that the PS3 is $400-500 and not $200-350($400?) like the 360 would the recession be affecting the PS3's sales much more than it is affecting the 360 sales?

If so, by that same logic isn't it possible that without the recession the current 2009 lead would actually be lower than the current 500k?

 

Or is it as usual using the recession in regards to the PS3's current sales a weak excuse? I know people have tried to use it and always had it written off as a excuse, yet now I see it being thrown around in here.

Tony_Parker said: I definitely agree with you The, even if you apparently hurt a lot of MS fanboys in this thread. Considering its price is very low, the 360 is definitely underachieving. Any price cut now wouldn't help the 360 since most people who wanted a 360 already bought one now (149$ is already basically free).

...there are other ways...this isn't a video game with linear paths and straight lines. Here's one easy suggestion phase out arcade drop Pro to 200 and Elite price at 300. I'm sure there are still other methods, people on Earth I believe refer to it as

 

So what graham ? If anybody who wants a 360 already has it, what exactly will cutting the Elite model price achieve ? Not so much...

The 360 is underachieving simply by Microsoft's own standards. At the beginning of the generation, Microsoft was undeniably certain that the 360 would be the market leader and turn an overall profit, but that plan rapidly went awry as the Wii took the gaming community by storm and instead, the 360 is now a distant second.

The 360 may be up year over year, but that isn't really saying much considering that its sales at this point in time a year ago were nothing to write home about to begin with. The fact that it's outsold the Xbox doesn't mean a lot either considering that after selling only 24 million, it really had nowhere to go BUT up, especially when that the 360 had a year on the market to itself.

Comparing it to the PS3 to measure its success is also flawed considering how poorly the PS3 is selling, and it actually makes the 360 look bad when it's only outselling it by 10-15K/wk worldwide and when it's only outsold it by about 3 million since the PS3 launched.

Even in software, it probably isn't where Microsoft wants it to be. The best-selling software of the generation is on Nintendo's platforms. Microsoft was also supposed to be getting PS2-level support from third party devs, but instead, it gets roughly the same support as the PS3 it's supposedly destroying.

As far as 360 sales exploding in 2010/2011 are concerned, forget it. The 360 simply doesn't have that kind of appeal. It still appeals mostly to core and hardcore gamers, most of whom will already own a console by then.

The 360 only looks good when you ignore the Wii and exaggerate the slim margin it has over the PS3.

^ You're boring. Its stupid claims followed by unfounded speculation followed by more stupid claims etc. Noone cares, just give it a rest.

@Squilliam : You apparently cared enough to bother replying, without any argument though. My money was on you for the next post, so I guess you're right, fanboys are both funny and predictable.

I thought his point was valid, I already posted that MS strategy was to kill the PS3 as fast as possible with the 360 and that Ms failed in this strategy obviously, so I definitely agree with him.

The reason is MS knows they can't compete with the PS3 in content on the long run due to their lack of internal studios compared to Sony tons of studios. MS chose not to buy or build more game studios, that's their problem now, lack of 1st party content, while the 3rd party content is roughly the same on both consoles.

On the long run, it 'kills' the 360, unless they secure tons of 3rd party exclusive content, which they can't anymore since the PS3 installed base is too big (basically, it would cost them too much now). They tried exclusive DLC, but it definitely didn't bring many sales.

Another thing to look at(and the OP mentioned this somewhat) is that for all of the hardware, accessories, Xbox Live subscriptions, and software moved, the 360 has made virtually no money whatsoever.

aderoche said: Reposting from the MS can either make $$$ or outsell PS3, NOT BOTH. thread. It seems that alot of people are prepared to use the EDD profit/loss figures as a surrogate for actual XBOX profitability. Doing so is increadibly missleading. If you look at the latest 10Q filing from Microsoft you can actually get somer sense of the actual XBOX business, this is because they give you deltas as both dollar value and percentage offset.     Nine months ended March 31, 2009 compared with nine months ended March 31, 2008 EDD revenue decreased primarily due to decreased Xbox 360 platform and PC game revenue and included an unfavorable impact from foreign currency exchange rates of $47 million or one percentage point. Xbox 360 platform and PC game revenue decreased $51 million or 1%, primarily as a result of decreased revenue per Xbox 360 console as a result of price reductions during the past 12 months. We shipped 10 million Xbox 360 consoles during the first nine months of fiscal year 2009 compared with 7.5 million Xbox 360 consoles during the first nine months of fiscal year 2008. EDD operating income decreased primarily due to increased research and development expenses, partially offset by decreased cost of revenue. Research and development expenses increased $317 million or 30%, primarily reflecting increased headcount-related expenses associated with the Windows Mobile device platform, driven by recent acquisitions. Cost of revenue decreased $60 million or 2%, primarily driven by decreased Xbox 360 platform costs. ----------------------------------------------------------------------------------------------------------------------------------------------------- The bolded sections are the important ones. Gaming related revenue decreased $51 Million, or 1%. If $50million is one percent then 100 percent is 5Billion. This gives us gaming revenue. Cost of revenue decreased 2% or $60million which gives ua a total cost of revenue for the EDD of $3 billion. A 30% increase in R&D at 317million gives you about $1 Billion before, $1.3Billion after. So, we have $5 Billion in revenue (gaming alone) with a cost of revenue of $3 Billion and R&D exenses of $1.3 Billion (both for the entire devision) it is very hard to come to the conclusion that the XBOX is losing money. There is obviosly $2 Billion in expenses missing, $6.5 Billion in revenue, minus $300 Million in profit, minus $4.3 Billion combined cost of revenue plus R&D leaves $2 Billion. There is obviously Administrative costs as well as cost associated with the recent aquisitions that drove up Windows Mobile R&D expeses. Truth be told we can't tell from this report. Perhaps it's $2 Billion dollars worth of money hatting. To reiterate my point, there is $2 Billion more revenue from gaming then there is cost of revenue for the entire EDD. Entertainment and Devices Division     Three Months Ended March 31,     Percentage Change       Nine Months Ended March 31,     Percentage Change     (In millions, except percentages)     2009     2008       2009     2008     Revenue   $ 1,567   $ 1,592     (2)%   $ 6,564   $ 6,616     (1)% Operating income (loss)   $ (31 ) $ 106     *   $ 299   $ 668

Last time I checked, operating income and revenue weren't profits, and that still doesn't refute what I said, which is that for all the 360's and related material that's been sold, MSFT has made basically no money.