http://www.gamesonsmash.com/?p=8164
The question posed, “will Microsoft introduce a new console next generation” stems from many devastating articles I’ve read concerning the Xbox division. Most recently a brief article by Ricardo Barrier indicating the loss of $130 million in Q4 with the recent posts of their numbers, and an article that was brought to my attention by blade206 that was posted two months ago by Roy Schestowitz stating how Microsoft is still operating at a loss.
The articles were a fascinating read and I found many of the comments to be intelligent. This one in particular was written by Miguel Zorro. I found this question and comment rather interesting.
” Even though the XBox360 is selling well, it’s difficult to see WHY Microsoft is in the console business. It doesn’t appear to tie into a larger strategy. If they’re taking a loss on it every generation, what’s the point? Even if it’s not selling as well, Sony used the PS3 to drive Blu-Ray adoption – that, to me, is a reason to continue. Nintendo is making money, so that one’s easy. What is Microsoft in it for? Does the XBox360 integrate with and drive sales of other Microsoft products in any way?”
Many have heard, read, and experienced the devastating reports and effects of the RROD, which are still taking place with the Microsoft Xbox 360 console. Let me be clear, the Red Ring Of Death is not occurring at the alarming rate as it was at launch, but as stated in Roy’s article “It’s not a resolved issue; it’s a design flaw.” Tom Bramwell wrote in his article that the failure rate was as high as 68 Percent not the 33% people were talking about and Microsoft new of the defect before the units were shipped. Once again the RROD is nowhere near those numbers now, but those numbers are unacceptable period!
In fairness to Microsoft, Sony is not doing to well at the moment either. They will be reporting a massive loss of 2.9 billion the first operating loss Sony has had in 14 years, but it does not state in this article how the games division account for this shortfall. (What is nice to read throughout the article is that with their restructuring and layoffs they won’t be cutting or making any layoffs in the games division. We will see how things look for Sony when they post their numbers the 30th of July.
The difference I see in the two consoles is not the games, because that is a personal preference to each individual game. No one can be better than the other in that category, so I tend to look at what either system is selling me as a consumer. On one end you have Kaz Hirai of Sony. I personally find him very cocky, but some of his statements can be defend able.
“The next generation doesn’t start until we say it does” -Kaz Hirai, Sony
Then you have the competition
“If you can’t make it good, at least make it look good.” -Bill Gates, Microsoft.
I do not find this statement defend able at all.
As far as the original question goes, “Will Microsoft introduce a new console next generation?” My personal opinion is, “I don’t think so.” With their games division continually to report a loss, I don’t think Microsoft will and can afford to continue to operate at a loss next cycle. Microsoft has done a fantastic job of marketing this cycle, but I feel that their not doing enough with and expanding on their first party games in order to survive. I believe they haven’t done enough with their first party that will lead them into the future and I don’t believe one can survive off of third party alone. I don’t see Microsoft having a “True” exclusive line-up because of “Games for Windows” or “multiplats” and neither Microsoft nor Sony has stated that they will be introducing another system.
I think after this life cycle is over Microsoft will focus solely on their software and operating system. They have only commented on their longevity in out lasting the Playstation 3, but nothing in regards about making another console.
Pixel Art can be fun.
