gollumsluvslave said:Now, these above quotes indicate a lack of understanding of 'barrier to entry'. It is the $400 price tag that dictates that 360 appeals to hardcore, simply because it is really only the hardore that can justify the entry price.
We simply DO NOT KNOW, whether the 360's current/upcoming library appeals to casuals at a more acceptable casual price-point. Which is why Microsoft *need* to drop the price prior to the release of Halo 3 and GTA IV.
I would agrue that the 360 library DOES appeal to casuals, just not enough to bite at the current price.
Howeve, I have a strong feeling that MS are NOT going to drop the 360 price until Sony makes the first move with PS3 - which would be a gargantuan mistake. They need to demonstrate that they want to be the market-leader, not follower.
Shiggy said:We already said that the X360 price is cheaper (Core) or 50 Euro more expensive than Wii, still, the Wii sells much more in Europe. I think we are able to say that the 360 doesn't appeal to casuals, what is not only caused by the price, but by the game.
Yeah, the Wii will do that and then some.arne said:Do you guys do math?
For wii to catch x360, given a 3m gap, the wii needs to outsell the x360 by nearly 400k EVERY MONTH until end of December, worldwide. That's to draw equal.
Now, that is absolutely do-able. To do so the Wii has to cover 200k in Japan, 100k in US and 100k in Europe every MONTH WITHOUT MISSING A BEAT.
This also assumes -- no system sellers, no price drops, and no large discrepancy between the differences in # of consoles sold over the holidays.
Shiggy said:We already said that the X360 price is cheaper (Core) or 50 Euro more expensive than Wii, still, the Wii sells much more in Europe. I think we are able to say that the 360 doesn't appeal to casuals, what is not only caused by the price, but by the game.
I agree with you that there'd be no need to do this, but if Nintendo feels there's such a need (after possible 360 price cut or decreasing the Wii sales), they can easily afford it. I'm sure Nintendo will sell everything they produce till the end of 2007 at least, with or without price cut.Shiggy said:I don't think there's the need to do this, just look at the DS
Shiggy said:We already said that the X360 price is cheaper (Core) or 50 Euro more expensive than Wii, still, the Wii sells much more in Europe.
Yes.westical said:Err, since when was the Core 360 cheaper than a Wii? Or do you meant in certain stores in certain countries?
yeah that's MS biggest problem they tried with Viva Pinata but it didn't work.
KeithFranklin said:I still believe a huge amount of Wii sales are from Nintendo faithful. After all look at the Zelda tie-ratio.
The last (only) time PS3 sold 20 times the Xbox 360 in Japan was... launch week. Two-thirds of its weeks it's sold 5x as well as X360 or less.TheProfessor said:Well considering it's 20x the 360 numbers and higher than PS2 numbers I would say they are not so bad.
StevieP said:As was mentioned about ... 450 times... the price of the 360 is not the biggest issue. You can get it CHEAPER than the Wii in Europe, but people by and large are purchasing the Wii in comparison to the 360. Why? Because it's appealing to the casual market. MS has good third party support, but the majority of games that are coming from this support have hardcore appeal (Alan Wake, Mass Effect, DMC4, etc etc) - these probably won't be selling very well to casuals. The one or two games that MS has in its library that CAN appeal to casuals (Viva Pinata, for instance) bombed and the only titles that will have any effect on the casual market are the upcoming Halo and GTA. The only problem is that after the holidays, what will continue to appeal to those same casuals?
MS can get its price down this fall, but at this point I wouldn't be surprised if the Wii continued to sell out and outsell the 360 if Nintendo raised its price to $300. It's white-hot for a reason, and it has everything to do with casual market appeal, not Nintard appeal. And until Sony drops its price (which I highly doubt they will anytime soon) I think MS is sitting fine-and-dandy at their current $400 pricetag. Why lose $25/system at $299 when you could be making $75/system selling at $399? Remember, the XBox division's goal this year is to be profitable, not charitable.
Fight for Freeform said:First off, the price drop is not official and isn't universal. Secondly, there are NO STATS that would demonstrate that the Wii is outselling the 360 after the price drop.
So I can say:
The 360 is outselling the Wii, after it had it's price drop.
And you can't really dispute it.
Since never. Afaik Microsoft still loses money on the hardware.mabuza said:wait so ms is now making money on the 360? since when
arne said:Do you guys do math?
For wii to catch x360, given a 3m gap, the wii needs to outsell the x360 by nearly 400k EVERY MONTH until end of December, worldwide. That's to draw equal.
Now, that is absolutely do-able. To do so the Wii has to cover 200k in Japan, 100k in US and 100k in Europe every MONTH WITHOUT MISSING A BEAT.
This also assumes -- no system sellers, no price drops, and no large discrepancy between the differences in # of consoles sold over the holidays.
mabuza said:wait so ms is now making money on the 360? since when
KeithFranklin said:According to iSupply last November the 360 Premium costs ~$325 to manufacturer. That is 6 months ago. Component prices should drop since then as well.
http://www.isuppli.com/news/default.asp?id=6919
KeithFranklin said:According to iSupply last November the 360 Premium costs ~$325 to manufacturer. That is 6 months ago. Component prices should drop since then as well.
http://www.isuppli.com/news/default.asp?id=6919
beermonkey@tehbias said:Don't forget the monstrous attach rate and the lockout of unauthorized third party accessories. Talk about printing money...
gcfan2k5 said:they arent accounting for the component cables, or the wireless controller or the headset included with the premium, or the wired controller for the core, or for the R&D cost involved in designing the machine, they are breaking even at best, and losing money at worst, the xbox division is still tracking in the red quarter to quarter.
KeithFranklin said:Oh certainly the components cables, wireless controller and headset cost more then $75 to manufacturer. My bad.
Um I dont believe they need to pay anyone per machine a charge for R&D. Those losses were charged 2 years ago. There isnt an XBOX division. The XBOX group is in the same divison as a couple or other new investments (including the Zune which launched during the previous MS fiscal quarter).
gcfan2k5 said:R&D costs are to be accounted for by your division as a whole, the cost still hasnt been accounted for, and month to month the home entertainment division which is 99% xbox as far as revenue, is tracking in the red, its only EVER had ONE profitable quarter, which was the halo2 release. They sell the 360 to distributor. (who then sell it to retailers) for WAY less than 400 bucks, you can BUY a premium from wholesalers for around 365 - 370 bucks, and they sell them at a markup as well, id imaging 300 - 330 is what microsoft sees per 360, certainly not enough to cover the manufacturing costs of the unit and all that comes with it.
KeithFranklin said:MS does not sell 360's for that low of a price to wholesalers. The big box retailers get the machines directly from MS. Not to mention the fact that retailers dont make much if anything on selling hardware. This is the reason last year my firm had the darndest time purchasing 250 of them. The retailers wanted us to also purchase games from them, because they wanted to make something on the deal. A retailer we do a great deal of work for wouldnt sell them to us because they wanted to make some profit and they wouldnt just selling us the machines.
gcfan2k5 said:I can purchase a 360 premium for under 375 dollars brand new from any number of wholesalers, at the very least they are making 10 bucks on them, so 365 as a fair estimate, assuming 330 bucks to manufacture the hardware itself, there is then cost for the controller headset and cables, packaging, shipping and the labor cost involved in all of these processes, they arent making money on these things, otherwise the division would be in the black and it isnt, even with game sales as good as they are it isnt in the black quarter to quarter...... this should indicate a major loss SOMEWHERE, and as the 360 is 99% of that division revenue wise, its gotta be the hardware.
KeithFranklin said:Care to share some links that show where I can purchase a 360 for $375 from a wholesaler.
Here is link about some linked wholesale 360 prices.
http://www.xbox365.com/news.cgi?id=GGurHuddGu08210326
gcfan2k5 said:Links would be difficult considering most wholesale/dropshipper websites that consumers could make use of come with a monthly fee before you can view inventory/prices. I bought my (2nd) 360 premium brand new 4 months ago for 371 dollars including shipping, take that however youd like, but 360 ISNT making money, the division is heavily in the red and games are selling fine, it can only be the hardware causing that. That link shows what one particular retailer pays for the items, that doesnt neccesarily apply to all retailers, as most of them move more volume than some of the wholesalers/dropshippers consumers use for their small business can handle.
gcfan2k5 said:More to the point though i showed evidence that microsoft is cooking (legally or illegally, dont know dont care) the figures for 360 up to be about 3 million higher than they actually are currently. People actually BELIEVE MS sold 10.4mln as of december and are at over 11.5m now sales wise, when the truth of the matter is they are at 9 - 9.5mln at best based on sales.
KeithFranklin said:Something that all other manufacturers do. At least MS shipped means in transit to retailers not in transit to distribution centers. Both Sony and Nintendo have done the exact same thing in the past. Nintendo shut down production of GCN one quarter simply because they shipped so many the previous quarter. Sony produced a measly amount of PSP (I believe this was 2006 fourth quarter (Not fiscal) because they had overproduced so much to boost PR statements about sales. So get off the high horse about how bad MS is.
gcfan2k5 said:The difference is MS touts shipped as sold,to try to bullshit its way into higher numbers on paper, nintendo only announces SOLD TO CONSUMERS, not shipped, and i didnt say shit about sony one way or another. The only reason they announced shipped this past year is because for them shipped and sold are the same, since DS and now wii arent keeping up with demand. Even nintendos PR statements have always used sold to consumers data, and when they use shipped data they clearly state shipped, not sold.
KeithFranklin said:Oh MS is so evil.
I find it so funny that in this industry the only firm that has ever been convicted of bad things is Nintendo. The only player that is making a profit on the hardware (Talking consoles not handhelds, I dont pay attention to them) is Nintendo. Yet they are held up as the good guys by so many of you. Here in a industry where traditionally the profit is made on the software and hardware is sold at cost or for a loss. Nintendo sits making around $100 per console sold. You guys say way to go Nintendo. In other words your cheering them for taking extra money from you.
It will be interesting to see if other people experienced what I did last week when a neighbor stopped by. My son was playing Call of Duty 3 on the 360 in the family room. The neighbor said damn COD3 on thier Wii doesnt look at all like that. Well I said Nintendo sold you a basically a GameCube souped up a little with a new controller. That is the truth and they are making a killing off of that fact.
KeithFranklin said:Oh MS is so evil.
I find it so funny that in this industry the only firm that has ever been convicted of bad things is Nintendo. The only player that is making a profit on the hardware (Talking consoles not handhelds, I dont pay attention to them) is Nintendo. Yet they are held up as the good guys by so many of you. Here in a industry where traditionally the profit is made on the software and hardware is sold at cost or for a loss. Nintendo sits making around $100 per console sold. You guys say way to go Nintendo. In other words your cheering them for taking extra money from you.
It will be interesting to see if other people experienced what I did last week when a neighbor stopped by. My son was playing Call of Duty 3 on the 360 in the family room. The neighbor said damn COD3 on thier Wii doesnt look at all like that. Well I said Nintendo sold you a basically a GameCube souped up a little with a new controller. That is the truth and they are making a killing off of that fact.
schuelma said:So paying 250 dollars for a console and a packed in game= Nintendo ripping me off, but paying 400 or 600 dollars equals great value?
Good thing the rest of the world doesn't think like you
And my God how spoiled you sound! "The company is supposed to LOSE money when they sell me their console, not actually make a profit! What are these businesses thinking" :lol :lol
starship said:Since never. Afaik Microsoft still loses money on the hardware.
schuelma said:So paying 250 dollars for a console and a packed in game= Nintendo ripping me off, but paying 400 or 600 dollars equals great value?
Good thing the rest of the world doesn't think like you
schuelma said:It's not much, but the Wii more than doubled the 360's sales in the U.K last week- 25K to 11K.
Fight for Freeform said:You aren't factoring in the differences in hardware.
That was probably the stupidest thing I've ever read on GAF since I started posting in '97.
jimbo said:I think the part that needs to be pointed out is last week. If it's the first week of Wii shipments in who knows how long, does it really mean anything? What about the weeks where there were NO Wii shipments?
gcfan2k5 said:The truth is the wii has three times as many transistors as gamecube had, and is running 50% faster, if nothing else was changed, its over 3 times as powerful, it has over three times as much fast memory, and that doesnt matter. Nintendo makes profit on everything it does, thats what a business is SUPPOSED TO DO, and when they give me a machine for roughly half the price of the nearest competition, thats doing me a favor, they couldve charged more for wii if they wanted. (360 premium with a game would run me at LEAST 420 bucks, add in wifi thats another 100 bucks for 520 bucks to get the same basic value out of the machine featurewise.) or 300 for a core plus 40 for a memory card plus 100 for wifi plus 20 for a game = 460 bucks, and you only get 1/8th as much storage as nintendo gives you with wii by going that route.
gcfan2k5 said:The truth is the wii has three times as many transistors as gamecube had, and is running 50% faster, if nothing else was changed, its over 3 times as powerful, it has over three times as much fast memory, and that doesnt matter. Nintendo makes profit on everything it does, thats what a business is SUPPOSED TO DO, and when they give me a machine for roughly half the price of the nearest competition, thats doing me a favor, they couldve charged more for wii if they wanted. (360 premium with a game would run me at LEAST 420 bucks, add in wifi thats another 100 bucks for 520 bucks to get the same basic value out of the machine featurewise.) or 300 for a core plus 40 for a memory card plus 100 for wifi plus 20 for a game = 460 bucks, and you only get 1/8th as much storage as nintendo gives you with wii by going that route.
professor_t said:Wow, it's three times more powerful? I guess the games didn't get the memo.
KeithFranklin said:Not going into what you need for your setup (WiFi and all). For a machine that has so much more power none of the games really show it (Not even the Nintendo first party titles). In fact the two best games for the Wii are just GCN games (Zelda and SPM).
The industry (Even Nintendo in the past) sold the consoles for cost or loss. What I get for $400 is far more than what you got for $250. In fact you got $150 worth of product (The way this industry has traditionally worked) for $250. Plus you got a tech demo of a game. And look Nintendo is doing it again with WiiPlay and another Wiimote. Nintendo faithful going gaga over the sales of WiiPlay. When in fact we all know people are buying a 2nd controller and getting a little bonus. Maybe the sales of Whacked on the XBOX should be adjusted because it came with the first XBOX live starter kit.
KeithFranklin said:The industry (Even Nintendo in the past) sold the consoles for cost or loss. What I get for $400 is far more than what you got for $250. In fact you got $150 worth of product (The way this industry has traditionally worked) for $250.
KeithFranklin said:Not going into what you need for your setup (WiFi and all). For a machine that has so much more power none of the games really show it (Not even the Nintendo first party titles). In fact the two best games for the Wii are just GCN games (Zelda and SPM).
The industry (Even Nintendo in the past) sold the consoles for cost or loss. What I get for $400 is far more than what you got for $250. In fact you got $150 worth of product (The way this industry has traditionally worked) for $250. Plus you got a tech demo of a game. And look Nintendo is doing it again with WiiPlay and another Wiimote. Nintendo faithful going gaga over the sales of WiiPlay. When in fact we all know people are buying a 2nd controller and getting a little bonus. Maybe the sales of Whacked on the XBOX should be adjusted because it came with the first XBOX live starter kit.