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Forums - Microsoft - Is it possible to MS to win this gen ?

marc on 19 December 2009
A_C_E said:
marc said:
A_C_E said:
You state that MS is going to sell 30 million 360's in one year and then drop the price to lose out on all the revenue? This is why I and others will not take your OP seriously because there is absolutely no logic in it. Try and look at it from both sides and then try to explain in more detail than this because I don't see Natal doing that much for the 360 or MS supporting the platform for that long either, god and never mind those pricecuts you listed...

But other than that, great post!

MS makes a TON more money from royalties than from hardware sales due to their high attach rates. It makes sense to drop the price as much as possible to take market share and sell more games especially if they can make the xbox consoles for cheap.

And MS would make even more money on the 360 if they didn't drop the price. Revenue is important, and investors look at that which is the reason why MS would not cut the price after selling 30 million consoles in on year. Just look at how Nintendo profits off their hardware, it's crazy but you don't see them dropping the price because it wouldn't make business sense. Why drop the price if your console has the biggest attach rate and selling like gangbusters?

Math would win. If you told me that giving away my console would create 2x as many customers and that each customer will make me $80 in royalties, then I would actually make more giving it away than selling it for $50.

Assuming you normally sell 100k consoles

100,000 X $50 = $5 mil + 100,000 x $80 = $13 million
200,000 x $0 = $0 + 200,000 x $80 = $16 million

As you can see, you actually made $3 more money giving the console away for free than selling it for $50 and that number will compound over time making you even more money.

It all depends but it can be done. Magazines, and websites have had this type of system for decades and it is succesful in some cases.



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MetalGearSolid_4ever on 19 December 2009
hudsoniscool said:
i actualy sum what agreed with you untill the crap about natal 2 and everything after that.

It will happen. Watch and see.



Ghazi4 on 19 December 2009

no offense but i think ur acting retarded in this thread... ps2 is much older than the xbox 360 arcade and its 99 dollars... the arcade will never reach 29 dollars materials cost money and us humans r overproducing too much which will cause material prices to skyrocket as we dont have enough resources left :P and why does microsoft do all the moves? its like sony and wii r just watching microsoft and not doing anything....




Get your Portable ID!

legend92(3) on 19 December 2009

hmm seems likely, no?



hudsoniscool on 19 December 2009

so u think from 2013 to 2014 360 would sell 40m units and ps3 0m units. you had to have been mess around. but if u belive that will actualy happen u must be high. there gunna release new consoles before 2015 anyway. probably in 2011 or 2012.



Halo MCC will sell 5+ million copies(including digital)

halo 5 will sell 10 million copies(including digital)

x1 will pass ps4 in USA, and UK.

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A_C_E on 19 December 2009
marc said:
A_C_E said:
marc said:
A_C_E said:
You state that MS is going to sell 30 million 360's in one year and then drop the price to lose out on all the revenue? This is why I and others will not take your OP seriously because there is absolutely no logic in it. Try and look at it from both sides and then try to explain in more detail than this because I don't see Natal doing that much for the 360 or MS supporting the platform for that long either, god and never mind those pricecuts you listed...

But other than that, great post!

MS makes a TON more money from royalties than from hardware sales due to their high attach rates. It makes sense to drop the price as much as possible to take market share and sell more games especially if they can make the xbox consoles for cheap.

And MS would make even more money on the 360 if they didn't drop the price. Revenue is important, and investors look at that which is the reason why MS would not cut the price after selling 30 million consoles in on year. Just look at how Nintendo profits off their hardware, it's crazy but you don't see them dropping the price because it wouldn't make business sense. Why drop the price if your console has the biggest attach rate and selling like gangbusters?

Math would win. If you told me that giving away my console would create 2x as many customers and that each customer will make me $80 in royalties, then I would actually make more giving it away than selling it for $50.

Assuming you normally sell 100k consoles

100,000 X $50 = $5 mil + 100,000 x $80 = $13 million
200,000 x $0 = $0 + 200,000 x $80 = $16 million

As you can see, you actually made $3 more money giving the console away for free than selling it for $50 and that number will compound over time making you even more money.

It all depends but it can be done. Magazines, and websites have had this type of system for decades and it is succesful in some cases.

You have to also add in the price that MS pays for their machine. Say the 360 cost MS $100:

100,000 X $50 = 5 mil, then take into consideration that MS loses $50 off each 360 which = $5 mil in loses

100,000 X $0 = 0 mil, then take into account that MS loses $100 off each 360 which =  $10 mil in loses

So the grand total would be altogether:

$50 360: 8 mil

$0 360: 6 mil



DarthMaul on 19 December 2009

*laughs*

In about 10 or 12 years us old timers will be on here laughing about the time the Playstation 3 came close to passing the Xbox 360 and the young kids will be asking what a Playstation is.



wholikeswood on 19 December 2009

Genuinely thought this was a Rol-style thread at first.



Siko1989 on 19 December 2009

is there even 300 million gamers? lol




Kantor on 19 December 2009

No.



(Former) Lead Moderator and (Eternal) VGC Detective