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What if Microsoft releases a new console every 4 year?

The Take Out Bandit said:
No worries.

MS will be third party the generation after this.

Nintendo Halovelution! :P

Why would they want to go 3rd party? oh wait.. that was a lame troll ...

Cave%20troll%203.jpg
 
Nintendo X said:
Far fetched. Microsoft is a multibillionare....what makes you think that?

Not that I'm anti MS or Xbox, but regardless of how much resources they have, if they lose another 4 billion on 360 and there is little movement in terms of market share, MS will more than likely pull the plug on the X-box program and attack the market from another perspective.

I had suggested a while ago, that it may in fact be more profitable for MS to work towards a one console future and provide their OS for that one console.

For all the hatred by some people have towards Nintendo and their profitability model of doing business (very strange really that GAF expects welfare handouts from giant corporations losing money) being profitable is what MS has been very good at. Windows is a giant cash cow for them and they are in the games business to make money, not lose 4 billion dollars every generation to gain a few percent of market share.
 
Nintendo X said:
Far fetched. Microsoft is a multibillionare....what makes you think that?
It's not that far-fetched in theory... if the 360 doesn't make money, I don't think Microsoft would stick around for round three and instead opt to leverage their software development tools as a way to stick around in the industry while also making easy profits. It's kind of a pointless debate, though, since I think the 360 will make money fairly easily. Just look at those accessory prices.

Anyway, I agree with what someone (Stinkles, I think) said earlier: it's not like Microsoft is hell-bent on changing the cycle and ruining the industry. The Xbox is killing them financially, so they wanted to close the book on it ASAP. If the 360 is profitable, they're probably not going to put out another Xbox in 2008 or 2009 -- they'll give it a more traditional lifespan.
 
papercut said:
It'll probably piss off developers more than anyone else.
Hi, my name's Mike. Just to make a quick correction for you, it pisses me off more than developers.

You know, just for the record.
 
human5892 said:
It's not that far-fetched in theory... if the 360 doesn't make money, I don't think Microsoft would stick around for round three and instead opt to leverage their software development tools as a way to stick around in the industry while also making easy profits. It's kind of a pointless debate, though, since I think the 360 will make money fairly easily. Just look at those accessory prices.
.

Wow we responded almost at the same time with the same view. :)
 
monkeyrun said:
that would be every 7-10 years, could you wait that long ?

(Correct me if I'm wrong on these dates)

GBC: 1998
GBA: 2001
DS: 2004


Every 7-10 years?

Plus several revisions in between, which was actually part of the joke. Failed.
 
human5892 said:
Great minds ... :)

hmm MS as a 3rd party would be useless... they don't have any franchises outside of Halo that set the world on fire.. if anything they will pull out all together..
 
If they can turn a profit on them, then c'est la vie. If future consoles bleed money like the Xbox did, expect shareholders to pull the plug right quite.

hmm MS as a 3rd party would be useless... they don't have any franchises outside of Halo that set the world on fire.. if anything they will pull out all together..

Wha? They've been a "third party" in the PC market for years. Crimson Skies / Age of Empires / MechWarrior / Links / Flight Simulator anyone?
 
Mr Nash said:
If they can turn a profit on them, then c'est la vie. If future consoles bleed money like the Xbox did, expect shareholders to pull the plug right quite.

Well it fits all their other business models just fine and dandy.. the shareholders have not pulled the plugs on every other aspect of MS that doesn't make money.
 
Mr Nash said:
Wha? They've been a "third party" in the PC market for years. Crimson Skies / Age of Empires / MechWarrior / Links / Flight Simulator anyone?

that is closer to first party than anyone else in the pc market my friend..
 
Blackace said:
Well it fits all their other business models just fine and dandy.. the shareholders have not pulled the plugs on every other aspect of MS that doesn't make money.

Has any other single division lost this much money with the results still up in the air? When console incumbents can f'ck up and as much as it's looking like a lock for PS3 right now, nothing is for sure given how fast things move. I think a lot of the money they spent was wasted. 4 billion dollars for brand building is excessive especially when the industry resets after each console cycle. They could have opted for a limited entry and pushed a little bit deeper with each reset.

Marketshare, consumer good will, partnerships and experience will be sighted as intangibles that they have gained, but frankly, Sony did it without losing 4 billion dollars. They spent the Superfami era as a third party. MS's approach is classic American blow shit up approach in the way they tried to bulldoze into Sony's turf. And this has caused Sony to respond with an overpowered and subsidized PS3 that will most likely suck the giant profits Bill Gates had projected five years agowhen he was looking at possible profit pictures if MS's entry into gaming is successful.

I know the consensus seems to be that the Xbox was/is a success. But I think its too soon to tell and I'm certainly playing devil's advocate here. I think a reasonable argument can be made that the Xbox was a failure and performed below MS expectaitons and the reaction they got from Sony may doom them from future profitability.
 
Blackace said:
that is closer to first party than anyone else in the pc market my friend..

How? Because they make the dominant OS in the market? By that logic, if MS were to have ever released a game on the Dreamcast it should have been considered first party too since that console was able to run WinCE.
 
---- said:
People still don't understand why the Xbox was only a 4 year console?

Microsoft rushed to create the original Xbox in 18 months so they made it using off the shelf parts and as a result they didn't own the technology in the Xbox. They couldn't reduce the price of the GPU and the CPU like Sony and Nintendo could for PS2 and Gamecube. As an aside this is also why MS was never able to release a redesigned smaller Xbox. With Xbox 360 they now own all of the technology inside of the box and can redesign and cost reduce the individual parts. Microsoft right now has to transition quickly out of this current gen because it's losing them money by not being able to decrease the cost of manufacturing the Xbox. With Xbox 360 they're going to be able to drastically reduce manufacturing costs over time like Sony does, so it's not likely that they're going to need to cut this next-generation short. Barring any unforseen events I would expect Xbox 360 to have a normal 5-6 year cycle.

http://www.gamesindustry.biz/content_page.php?aid=12103

Since they own the chipsets now they can even go to another manufacturer and have them design the console parts for much cheaper.


This is GAF. There is no room for reality or logic here. It's easier to work yourself up over crazy speculation or hyperbole. So take it somewhere else, Mr. smarty pants.
 
Mr Nash said:
If they can turn a profit on them, then c'est la vie. If future consoles bleed money like the Xbox did, expect shareholders to pull the plug right quite.



Wha? They've been a "third party" in the PC market for years. Crimson Skies / Age of Empires / MechWarrior / Links / Flight Simulator anyone?


That's the problem. Even if they do make a profit it would still piss off devs and gamers if they go for a 4 year plan. And how in the hell can devs release Xbox 3 games for two years while PS3 and Rev games will still need to be made.

1. Xbox 3 comes out in 2009 and causes people to spend more money on hardware
(EA, MS, and proably Ubisoft can easily make game for them)

2. PS3 in 2009 still cranking out great games at a lower price

3. Revolution still cranking out great games at even a lower price than Sony's PS3


Conclusion: How in the hell can people like a MS 4 year plan for consoles is far beyond me?
 
rare would never release a game again; as soon as one approached completion it'd be bumped to the next xbox.

i'm sure there have already been a dozen stupid rare jokes in this thread, but you can't expect me to read it.
 
Deku said:
Has any other single division lost this much money with the results still up in the air? When console incumbents can f'ck up and as much as it's looking like a lock for PS3 right now, nothing is for sure given how fast things move. I think a lot of the money they spent was wasted. 4 billion dollars for brand building is excessive especially when the industry resets after each console cycle. They could have opted for a limited entry and pushed a little bit deeper with each reset.

Marketshare, consumer good will, partnerships and experience will be sighted as intangibles that they have gained, but frankly, Sony did it without losing 4 billion dollars. They spent the Superfami era as a third party. MS's approach is classic American blow shit up approach in the way they tried to bulldoze into Sony's turf. And this has caused Sony to respond with an overpowered and subsidized PS3 that will most likely suck the giant profits Bill Gates had projected five years ago if MS's entry into gaming is successful.

I know the consensus seems to be that the Xbox was/is a success. But I think its too soon to tell and I'm certainly playing devil's advocate here. I think a reasonable argument can be made that the Xbox was a failure and performed below MS expectaitons and the reaction they got from Sony may doom them from future profitability.

I am just saying only two divisions in MS make money.. and that is how it has been for years. But with that said the "games" division did turn a profit on the xbox...so that makes it 3 divisions. Sony did lose a butt load of money on the PS2, PSP, and the PS3.. just ask the mass load of people who were just laid off this month.. as all big companies MS and Sony juggle the books so their loses don't look as bad as they are.. Sony just does it better because they have so many factions they can spread it over...
 
Mr Nash said:
How? Because they make the dominant OS in the market? By that logic, if MS were to have ever released a game on the Dreamcast it should have been considered first party too since that console was able to run WinCE.

:lol oh...that's rich... thanks for the giggle...
 
Deku said:
Marketshare, consumer good will, partnerships and experience will be sighted as intangibles that they have gained, but frankly, Sony did it without losing 4 billion dollars. .




Nintendo had all of those things + 62% market share before the PSOne launch, and Sony stepped on them. Developers stopped working with them exclusively except for mostly scraps and side projects.

Gaming went in one year from having a company without the leadership, vision, or appeal to grow the gaming industry to one whose victory is pretty much certain.

What MS did wasn't easy, and the company jumped more hurdles than Sony or Nintendo ever did on their respective journeys to the top. The reward? 16% of the console market. And a Western gaming public that knows what an Xbox is.
 
Personally, I think Microsoft ought to license out Xbox compatibility to other hardware makers. They're not making the money off of their hardware sales anyway - by all means, they should encourage some competition in this area so they have a larger market for their software. That's how Windows rose to the top, after all.
 
sonarrat said:
Personally, I think Microsoft ought to license out Xbox compatibility to other hardware makers. They're not making the money off of their hardware sales anyway - by all means, they should encourage some competition in this area so they have a larger market for their software. That's how Windows rose to the top, after all.

That is an intresting idea... Do you really think it could work in the gaming market? Thus far, brand name has been so important...
 
Blackace said:
I am just saying only two divisions in MS make money.. and that is how it has been for years. But with that said the "games" division did turn a profit on the xbox...so that makes it 3 divisions. Sony did lose a butt load of money on the PS2, PSP, and the PS3.. just ask the mass load of people who were just laid off this month.. as all big companies MS and Sony juggle the books so their loses don't look as bad as they are.. Sony just does it better because they have so many factions they can spread it over...
Wrong. Sony Corp. loses money. It has been a pretty poorly run company. SCEI (the division that makes the PS) has only lost money for a few quarters at a time. They lost money for like the first 3 quarters on the PS1. I think they lost money for the first two or three quarters on the PS2, and they are gonna lose money on the launch of the PS3. I believe they might actually post a loss for this fiscal year, but they've also had another product launch (PSP) plus the buildup to the PS3. Overall, Sony has made a mint of money off the PS brand, and far more than they've lost in the long run. The brand has been responsible for up to 40% of Sony Corp.'s total revenue at one point. The layoffs have nothing to do with SCEI, although some of the fat will be trimmed from that company to shore up the conglomerate at large. Sonycowboy and/or jarrod no doubt have better records of this, but you are completely wrong. PEACE.
 
Pimpwerx said:
Wrong. Sony Corp. loses money. It has been a pretty poorly run company. SCEI (the division that makes the PS) has only lost money for a few quarters at a time. They lost money for like the first 3 quarters on the PS1. I think they lost money for the first two or three quarters on the PS2, and they are gonna lose money on the launch of the PS3. I believe they might actually post a loss for this fiscal year, but they've also had another product launch (PSP) plus the buildup to the PS3. Overall, Sony has made a mint of money off the PS brand, and far more than they've lost in the long run. The brand has been responsible for up to 40% of Sony Corp.'s total revenue at one point. The layoffs have nothing to do with SCEI, although some of the fat will be trimmed from that company to shore up the conglomerate at large. Sonycowboy and/or jarrod no doubt have better records of this, but you are completely wrong. PEACE.

If you think so.. that's cool with me... I know what I know..

But it isn't the point per se. I just don't see MS going 3rd party at all in the console world.. ever..
 
Amir0x said:
...Pimpwerx is correct.

If you say so.. I have other sources that say otherwise.. Not to say that they are 100% correct all the time, but when they talk I listen..
 
sonarrat said:
Personally, I think Microsoft ought to license out Xbox compatibility to other hardware makers. They're not making the money off of their hardware sales anyway - by all means, they should encourage some competition in this area so they have a larger market for their software. That's how Windows rose to the top, after all.

Haven't we had enough Xbox 3D0 jokes yet? :P

Seriously though, this would be alright if you don't mind paying $600+ for your console, personally I like the subsidized nature of paying less for my hardware than it costs to build :)
 
Vennt said:
Haven't we had enough Xbox 3D0 jokes yet? :P

Seriously though, this would be alright if you don't mind paying $600+ for your console, personally I like the subsidized nature of paying less for my hardware than it costs to build :)

I'm not a market expert, but I strongly suspect that if f the technology was being used by multiple manufacturers, it would drive costs down. Think DVD players.
 
DCharlie said:
... why do people think they know what MS shareholders think?

the same way people know about how Sony plays their books
 
Sony actually documented that they were moving costs to Electronics - that makes it easy!
 
Well, PS3 is going to hit 6 years (in Japan) minimum.

Probably 6 years here in the US as well.

I don't think anyone can really bitch about that.

I was ready for a change 2 years ago, but maybe thats just me. ;)


Hell, MS might go just 3 years next time.

And look for support to drop like a rock then too, just like the original XBox.
 
mj1108 said:
Isn't part of MS's reasoning for making the XBox a 4 year console is that they are losing money hand over fist on it and want to become profitable??

This should be written in sharpie marker on the forehead of anyone who thinks there's any other reason the 360 is coming out next month.
 
Juice said:
This should be written in sharpie marker on the forehead of anyone who thinks there's any other reason the 360 is coming out next month.

I think X360 is coming out next month more as an effort to pre-empt Sony, since in terms of hardware the X360 will still be losing money in the near term. The profitability argument probably had more influence over how and what components are used to make the X360.
 
People I don't think it's Microsoft is shortening the life cycle of the consoles, nor do the plan to do it on purpose because as manufacturers lose money on consoles it is in their best interest to try and make a system last as long as possible. What people seem to be missing out on here, is that Microsoft and Nintendo, for that matter of fact, entered this generation, one to two years too late. That is the main reason why the Xbox's lifespan was only 4 years.
 
Well, Microsoft could gain marketshare over Sony this gen, and then be in a position to milk the cow a bit longer than 5 years.

But if PS3 dominates x360 again thanks to the playstation brand, better japanese developpers support, and tech appeal (blue ray + HDMI output will make games look prettier), Microsoft will obviously need to make a desperate move such as launching a new console in 4 years indeed.

Let's face it, it's too soon to tell. We first need to know how powerful the PS3 will be (do we agree Xbox primary audience is made of graphic whores?) and how much it will cost (if Sony is ready for a bloody fight and have the PS3 cost almost the same as the x360, I would assume it could repeat its strong dominance over the traditional gamers crowd).

Meanwhile, somewhere in a quiet place, Nintendo is preparing the launch of a timeless machine called Revolution.
 
Why would they want to go 3rd party?

It's a 50/50 post. Part troll, part speculation based on the fact that Microsoft's strength is and always will be the software market. I can totally see them just developing game software and attempting to license Live (We can drop the "Xbox" prefix in a future with no Xboxen) gaming services to other game companies.

The Nintendo crack was just there to spite Xkids. We all know we'll be playing Mario and Halo on the PS4. ;)
 
Europe will be a good example if short cycles can work. The xbox really started selling here in september 2002 (after the price drop), so it was about a 3 years cycle for us.
 
Blackace said:
If you say so.. I have other sources that say otherwise.. Not to say that they are 100% correct all the time, but when they talk I listen..

You don't need sources, you can read the readily available informati--

Blackace said:
the same way people know about how Sony plays their books

--oh. That's right, it's a conspiracy and Sony is playing their books to make it seem like the PlayStation division has been wildly successful/profitable these past two generations. Damn they're clever.

Tell your "sources" good work on keeping us good forumers informed.
 
It's all about the games and 1st party.

If Microsoft can establish new, exciting franchises, as well as carry heavy 3rd-party support, and provide them in regular rotation over the course of 4 years, it won't matter. People will buy their new machine no matter what. If they don't have these games and furthermore fail to provide consumers the justification behind purchasing a new console, they'll sink.

It's that simple.
 
NintendosBooger said:
It's all about the games and 1st party.

I think you are thinking nintendo there..

NintendosBooger said:
If Microsoft can establish new, exciting franchises, as well as carry heavy 3rd-party support, and provide them in regular rotation over the course of 4 years, it won't matter. People will buy their new machine no matter what. If they don't have these games and furthermore fail to provide consumers the justification behind purchasing a new console, they'll sink.

It's that simple.

Exciting new franchises are hard to quantify in a boardroom and I doubt it will be the main driving force for the release of new hardware. It'll be more about profitability and competition strategy that will be the main driving force.
 
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