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Forums - Sales - Analysis: X360 overachieving and why it will get a price cut in 2009

BladeOfGod said:
why would microsoft cut the price when they finaly started making slight profit on xbox brand for the first time in 8 years?

Slight? they have been making a profit for sometime now, its probably more than slight.

late 2007 they started making a profit, so your 8 year figure is wrong.



 

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seece said:
BladeOfGod said:
why would microsoft cut the price when they finaly started making slight profit on xbox brand for the first time in 8 years?

Slight? they have been making a profit for sometime now, its probably more than slight.

late 2007 they started making a profit, so your 8 year figure is wrong.

Im sorry Seece, its worse than that even! It appears that Xbox 360 profitability has been carrying an otherwise unprofitable division! If you read between the lines, you see some pretty heavy profits for the Xbox 360 and some pretty heavy losses for some other pet projects.



Tease.

nice read

still doesn't change the fact PS3 was outselling xbox 360 by the same amount last year (weekly = 10 - 20K) with a higher price last year

while xbox 360 is managing to outsell PS3 by that same amount (weekly = 10 - 20K) this year, with a much much lower price

I would say its under-achieving in that resepct

in comparison to xbox, its overachieveing like sarah palin would as a stand up comedian



All hail the KING, Andrespetmonkey

darthdevidem01 said:
nice read

still doesn't change the fact PS3 was outselling xbox 360 by the same amount last year (weekly = 10 - 20K) with a higher price last year

while xbox 360 is managing to outsell PS3 by that same amount (weekly = 10 - 20K) this year, with a much much lower price

I would say its under-achieving in that resepct

in comparison to xbox, its overachieveing like sarah palin would as a stand up comedian

http://vgchartz.com/hwlaunch.php?cons1=Wii&reg1=America&cons2=PS3&reg2=America&cons3=X360&reg3=America&weeks=156&weekly=1

The Xbox 360 is coming forward in time from 2008 where its prices were $350 and $280 and defeating the PS3. Im recently a fan of the HW launch alligned graphs, it must be because it favours me or something funny that eh?



Tease.

Quite a fantastic read. Basically highlighting the pricing double standard some members enforce. I say if you take nothing else from this thread. You should at least recognize that Microsoft can do a price match with Sony. Which would basically nullify the comparative effect.



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Couple of things @ Squilliam:

Firstly, I don't think solely using America is particularly great. I understand why you did it, but we know the 360 is the HD console of choice in America and that the PS3 frequently sells lousy numbers over there, so it slightly skews things to run solely off that continent's data.

Secondly, I found it pretty lolworthy when you started talking about rubbering up parts of the 360 to reduce noise in response to the supposedly smaller size of European homes. I mean, you're overanalysing way too far. Noise issues simply aren't even remotely comparable to the real difficulty for the 360 in Europe - skepticism towards Microsoft and the 360's abysmal reliability. It's a trust thing, and it's something that a "rubber insulating the drive" approach isn't going to resolve.



@squilliam

if you want to play it "aligned launches"

then the PS3 is winning, so don't even go there



All hail the KING, Andrespetmonkey

wholikeswood said:
Couple of things @ Squilliam:

Firstly, I don't think solely using America is particularly great. I understand why you did it, but we know the 360 is the HD console of choice in America and that the PS3 frequently sells lousy numbers over there, so it slightly skews things to run solely off that continent's data.

Secondly, I found it pretty lolworthy when you started talking about rubbering up parts of the 360 to reduce noise in response to the supposedly smaller size of European homes. I mean, you're overanalysing way too far. Noise issues simply aren't even remotely comparable to the real difficulty for the 360 in Europe - skepticism towards Microsoft and the 360's abysmal reliability. It's a trust thing, and it's something that a "rubber insulating the drive" approach isn't going to resolve.

Just using America means that I can use the most accurate data we have, I know the average sale price of the Xbox 360 and I cannot say the same for Others. Also because the price cut is about 3 months after the first period in question and 3 months before the second it lets me weed out the short term boost from the holidays. Note how I also excluded the first two weeks of 2009 as well to make the representation more accurate even though sales were still quite high during those weeks. The PS3 was only there to provide a control and a baseline for comparison, all I was interested in was the percentage the PS3 was down without a price cut to possibly infer how the Xbox 360 could have been doing under the same circumstances.

In Europe a noisy Xbox 360 is by far more noisy than the average Xbox 360 in an American home so that difference is worth a mention. IIRC noise drops quite rapidly as you move further away from the source of the noise and you sit inside a larger room. I don't have the calculation handy im sorry but IIRC its something like 50% less noisy to the average persons perception if you move 4M away from the source of the noise or something like that. Rubber insulation means placing four rubber mats between the drive and the console chassis to insulate the noise it produces. Its quite a simple and cost effective change. The PS2 and the PS1 also had some quite severe reliability problems but that didn't also severely damage the Playstation in that region, probably because the Playstation brand became the default gaming brand there. 

@Darth: Im just playing, I still have lots of love for you.



Tease.

Squilliam said:
wholikeswood said:
Couple of things @ Squilliam:

Firstly, I don't think solely using America is particularly great. I understand why you did it, but we know the 360 is the HD console of choice in America and that the PS3 frequently sells lousy numbers over there, so it slightly skews things to run solely off that continent's data.

Secondly, I found it pretty lolworthy when you started talking about rubbering up parts of the 360 to reduce noise in response to the supposedly smaller size of European homes. I mean, you're overanalysing way too far. Noise issues simply aren't even remotely comparable to the real difficulty for the 360 in Europe - skepticism towards Microsoft and the 360's abysmal reliability. It's a trust thing, and it's something that a "rubber insulating the drive" approach isn't going to resolve.

Just using America means that I can use the most accurate data we have, I know the average sale price of the Xbox 360 and I cannot say the same for Others. Also because the price cut is about 3 months after the first period in question and 3 months before the second it lets me weed out the short term boost from the holidays. Note how I also excluded the first two weeks of 2009 as well to make the representation more accurate even though sales were still quite high during those weeks. The PS3 was only there to provide a control and a baseline for comparison, all I was interested in was the percentage the PS3 was down without a price cut to possibly infer how the Xbox 360 could have been doing under the same circumstances.

In Europe a noisy Xbox 360 is by far more noisy than the average Xbox 360 in an American home so that difference is worth a mention. IIRC noise drops quite rapidly as you move further away from the source of the noise and you sit inside a larger room. I don't have the calculation handy im sorry but IIRC its something like 50% less noisy to the average persons perception if you move 4M away from the source of the noise or something like that. Rubber insulation means placing four rubber mats between the drive and the console chassis to insulate the noise it produces. Its quite a simple and cost effective change. The PS2 and the PS1 also had some quite severe reliability problems but that didn't also severely damage the Playstation in that region, probably because the Playstation brand became the default gaming brand there. 

@Darth: Im just playing, I still have lots of love for you.

Like I said, I understood your choice in only using America so there was no need to give me a paragraph re-explaining your OP. I still take slight issue with it, but my main grievance is the part below.

I don't care for elaborations as to how one goes about insulating with rubber; the point is - you're blowing up the noise issue like it's the huge turn-off of the 360 to potential EU consumers, when in reality it's barely a blip on the radar for even the most researching purchaser. It's the reliability of the 360 (or lack thereof) and subsequent image of Microsoft that holds them back in Europe, and all this talk of slipping four rubber mats between drive and chassis is irrelevant nonsense.



darthdevidem01 said:
@squilliam

if you want to play it "aligned launches"

then the PS3 is winning, so don't even go there

Imagin if, 18 months after the 360 launch, 6 months after the PS3 launch, everyone in the west got $400 to spend on a console of their choice.

Then you do "aligned launches", the PS3 would be far ahead because of the massive shift of people buying consoles overall.

Now that would never happen, but it demonstrates how aligned launchs means jack shit and if you use that in any argument you're clutching at straws. Look at the here and now.