Why the 360 has already won North America

Oneself said:
Oh and by the way, the PSP does really well right now. Sure it's not as successful as the DS in numbers, but take in account that the PSP is more expensive and that no other handheld succeeded at such a high price before.

I never said it was going to fail. People thought that the PSP was just going to absolute steamroll and decimate the DS. Anyway, like I said, that was all in the past and there's no way I can prove what I said or even others said. That's why I wrote this article, so I can have something to point at a few years from now.
 
"console ecosystem" is fine, but the wiki needs more corporate buzzwords before MS will take you seriously.

Try to work in stuff like "synergy", "paradigm shift" and "value-added". Bonus points if you use your fingers to make air quotes.

BennetBrauer.jpg
 
rastex said:
Ok, let me try this.

Let's say you're a medium sized North American developer. And let's say you haven't got into next-gen development yet. You want to release a game for holiday 2007.
You are already ****ed at this point.
 
_leech_ said:
Like? The CPU/GPU, SDKs, middleware tools, APIs, and storage media were all announced long ago.

Unknowns, like the most important being how is the market going to react to the high-price and how many people are going to buy the system, and what kind of gamers are they? Maybe the first million are going to be all AV enthusiasts that don't bother with games. Maybe it'll be the JRPG PS2 enthusiast crowd? Maybe it'll be a hardcore FPS crowd due to Resistance? Also, how are people going to react to PNP? How is PNP going to actually look like and what will it offer on launch day?

Very important unknowns and risks that publishers and developers must take into consideration when doing their medium and long-term project planning.
 
Guy LeDouche said:
"console ecosystem" is fine, but the wiki needs more corporate buzzwords before MS will take you seriously.

Try to work in stuff like "synergy", "paradigm shift" and "value-added". Bonus points if you use your fingers to make air quotes.

Haha! QFT.

Corporate buzzwords need to die.
 
Speevy said:
I think the PS3 will probably pass on a worldwide basis pretty quickly, but here in the US it might actually be slower than the stalemate the DS and PSP were in.

If the 360 has a 2 million unit lead at the end of this year in North America, let's just make up some crazy numbers.

January 07:

360: 200K
PS3: 400K

February 07

360: 200K
PS3: 400K

March 07

360: 200K
PS3: 400K

April:

360: 200K
PS3: 400K

etc. until the end of October let's say. The PS3 would JUST make up that 2 million by holidays.

That doesn't add up. You've left out the fact that Sony's planning to have a million in NA at launch, plus whatever else they manage to get through the pipes before January. In your scenario they'd catch up much sooner.

But I agree, the disparity likley won't be that high; Sony will probably not sell 400k units per mo. at that price, and will likely have trouble getting that many into retail channels in the first place.
 
rastex said:
The point being that the 360 has captured the most important segment of the gaming population that I feel is the engine of platform success.

I'm having a rough time with this one. The part of the market the X360's 'captured' so far is comprised mostly of previous Xbox owners and/or hardcore early adopters. That's worth virtually nothing, because the PS3 and Wii will both sell to the same demographic as quickly if not more so.
 
rastex said:
Unknowns, like the most important being how is the market going to react to the high-price and how many people are going to buy the system, and what kind of gamers are they?

Welcome to the start of every generation that's ever happened. This isn't new.
 
(from the article)

On the Gamer Side

8. 360 Gamers Buy A Lot of Games
hein? the last time I checked Best Buy or EB, the same launch games still make up half the games on the rack

9. Current 360 Gamers Are Hardcore
ROFL Copter needed

10. 360 Gamers Buy Niche Games[/B]
#10 contradicts #9,
the guy bad mouthing Katamari Damacy is alread contradicting point #9.
Real Hardcore gamers would be open to try different innovative, alternative or original games such as Katamari.
A gamer who is stubborn about his genres, franchises is more of a selective gamer then a hardcore gamer.
 
What I learned from this thread by xaosslug

Rhindle will support anyone's argument, so long as it's pro-anything-but-Playstation.

rastex is a living xbox.

:lol
 
Leondexter said:
I'm having a rough time with this one. The part of the market the X360's 'captured' so far is comprised mostly of previous Xbox owners and/or hardcore early adopters. That's worth virtually nothing, because the PS3 and Wii will both sell to the same demographic as quickly if not more so.

I disagree with this. I think the 360 has captured some of the early-adopter market that grew the PS2 in the early days. And I'm basing this off of the performance of games like Table Tennis, LOTR, and especially Chromehounds. While quite a few mech games were released on the original Xbox none of them sold particularly well, aside from the first MechAssault. The sales of CH in light of all the negative reviews gives a strong indication of the kind of audience the 360 has. If you look at the PS2 there were many Mech games that did extremely well.
 
What about...
Europes impact?
Overestimating the impact of a small lead?
Ignoring the hugely successful exclusives the PS3 has retained? (both have exclusive new IP, but only PS3 has exclusive established IP from third-parties it seems)

Also
ps3assemblyline400400yj1.jpg

Nice :lol
 
_leech_ said:
Welcome to the start of every generation that's ever happened. This isn't new.

And this is precisely why being first to market is so important. Listen, if PS3 was priced at $400, there wouldn't be this discussion. Sony would have already won before anything started and Sony dominance would reign for another 5 years at least. But they didn't. And as can be seen from the droves of analysts, press, and gamers themselves that are expressing severe hesitation the price has thrown up a monster monkey wrench into everything. Developers and publishers are no longer 100% confident and certain about the playstation platform (no doubt compounded by the less-than-expected sales of the PSP). And now that they have a viable and very profitable alternative that's already out, it's an obvious business decision to mitigate your risk and release on the established platform that can give an expected return. And when that expected return has proven to be so high, that helps things out even more.
 
rastex said:
I disagree with this. I think the 360 has captured some of the early-adopter market that grew the PS2 in the early days.

Don't you mean the Dreamcast fanbase? I mean it was the first next gen console last gen just like the Xbox 360 is the first next gen console this time and the Dreamcast fans were the hardcore gamers who also like niche game like Samba de Amigo, Seaman, etc. Its all starting to make sense now.
 
BigBoss said:
Don't you mean the Dreamcast fanbase? I mean it was the first next gen console last gen just like the Xbox 360 is the first next gen console this time and the Dreamcast fans were the hardcore gamers who also like niche game like Samba de Amigo, Seaman, etc. Its all starting to make sense now.


I don't really think that is comparable, unless racing games and FPS games are a "niche" audience. Looking at the history of the Dreamcast, it failed because the company behind it ran out of money. Plus a vastly superior gaming system came out shortly afterwards. Those are two big issues you really do not have to worry about concerning the 360.

As for the topic at hand, there is no way you can already give the 360 the gold in North America. Sales have been good, the hype has been awesome, but it certainly has not been kicking ass and taking names. I am not going to make any big predictions here. I will go with a popular belief and state that the PS3 would bend the 360 over and make it its daddy if it came out at a 300 to 400 dollar pricepoint, no blu-ray needed. No games needed either, name recognition alone would have done that. They completely screwed up though, and left the door open. They would outsell the 360 by June of 2007 with that pricepoint, and no triple A games at all. They missed that boat, and now they have a huge fight ahead of them. Microsoft has by no means won, in 3 years or less the PS3 will be priced for mass market, and if the 360 has not taken a hold by then, then PS3 could easily take them out. I don't even want to think about the Wii factor. If Nintendo can translate the appeal of their handhelds into the console realm like they are attempting, it gets a lot more complicated.
 
BigBoss said:
Don't you mean the Dreamcast fanbase? I mean it was the first next gen console last gen just like the Xbox 360 is the first next gen console this time and the Dreamcast fans were the hardcore gamers who also like niche game like Samba de Amigo, Seaman, etc. Its all starting to make sense now.


Hey look! It's a desperate reach!
 
C4Lukins said:
I don't really think that is comparable, unless racing games and FPS games are a "niche" audience. Looking at the history of the Dreamcast, it failed because the company behind it ran out of money. Plus a vastly superior gaming system came out shortly afterwards. Those are two big issues you really do not have to worry about concerning the 360.

I wasn't being serious, I was trying to be as absurd as possible to match the original article.

Scoot said:
Hey look! It's a desperate reach!

Are you talking about my post or the original article?
 
BigBoss said:
Don't you mean the Dreamcast fanbase? I mean it was the first next gen console last gen just like the Xbox 360 is the first next gen console this time and the Dreamcast fans were the hardcore gamers who also like niche game like Samba de Amigo, Seaman, etc. Its all starting to make sense now.

Sega's timing on the DC was too early, the Dreamcast was way aead of it"s time.
the PS1 was still raging strong and then you had EA who chose not the develop for the DC, taking away the "Bubba Factor"
"The Bubba Factor" sadly has alot of weight and want their Madden or Else .

Sega was in the finacial red for quite some time before the merger with Sammy.

360 and the bubba factor.
360 sales are mostly attributed to the Bubba Factor and not Hardcore gamers.
Bubba walks in, sees Madden, sees Need for Speed, sees Tony Hawk, sees Call Of Duty.. and goes home with his new 360 with his Bubba targeted games.
 
Was this "console ecosystem" thing created here by the OP? And if so, why the hell have a few people in this thread used it in a serious manner?
 
fly_2.gif

"Am I becoming a 185 lb. Xbox? No. I'm becoming something that never existed before! I'm becoming...
Rastexbox! Don't you think that's worth a nobel prize or two?
 
leondexter said:
I'm having a rough time with this one. The part of the market the X360's 'captured' so far is comprised mostly of previous Xbox owners and/or hardcore early adopters. That's worth virtually nothing, because the PS3 and Wii will both sell to the same demographic as quickly if not more so.

rastex said:
I disagree with this. I think the 360 has captured some of the early-adopter market that grew the PS2 in the early days. And I'm basing this off of the performance of games like Table Tennis, LOTR, and especially Chromehounds. While quite a few mech games were released on the original Xbox none of them sold particularly well, aside from the first MechAssault. The sales of CH in light of all the negative reviews gives a strong indication of the kind of audience the 360 has. If you look at the PS2 there were many Mech games that did extremely well.

My point stands. I'm not disagreeing with your assessment of the X360 base's demographics, I'm saying that you're wrong to think these people are going to hand it a victory. Sony and Nintendo will draw sales from this demographic just as much, or more.
 
What if we replace 360 with "DC" and PS3 with "PS2?"

He's an Xbox said:
The Console Ecosystem
The general activity surrounding a system is I refer to as the ecosystem of a console. This activity is what keeps you interested, keeps your attention on the console, and keeps you spending time and money on it. The Playstation console had fantastic ecosystems purely by the strength of their numbers. There was just so many games being released for the systems that you could walk into the store at any time and find great new games that were just released. Or maybe some old favourites that you never got around to picking up just went Greatest Hits letting you get them on the cheap. Sega has given the DC a very healthy ecosystem as there's always something going on with the DC. Whether it's new retail releases, arcade releases, updates, content, or demos, there's always something new when you turn on your console.

In general in North America the potential revenue on a game is substantially higher on the DC than the PS2. And the costs of developing a PS2 title are also higher than the DC. Therefore it makes complete economic sense for almost every single next-gen game to be released on the DC. This creates a virtuous cycle where gamers go where the games are, and the games go where the gamers are.

A healthy ecosystem is integral to the success of a console. The 3D0, Jaguar and even the Saturn and N64 to a certain extent didn't have healthy ecosystems and suffered greatly as a result. The PS1 has the greatest ecosystem ever, and it's doubtful that any console will reach that level again in the foreseeable future. Right now it's looking like the DC will have the best ecosystem out of all 3 new consoles, and as a result will achieve the number one position in North America.
 
You need to understand the market before you can claim who won it Rastex. Something new everytime you power your console on, if you have Live, if you download content, if you download arcade games, if the stuff out there caters to your particular tastes. MS hasn't capitalized on their launch window at all, only Sony's bumbling has given them enough time to gain some momentum. A lot rests on unproven titles, Viva, Blue Dragon, Lost Odysee and Gears, but it still doesn't have that broader appeal like Wii and PS3 do, it just appeals to guys like you and me. Xbot indeed.
 
Let's say they sold about 3/4 million when Wii/PS3 launch.

Wii might sell about 1.5 million by the end of the year in the US, PS3 maybeeee 700k, due to shortages?

360: 4m
Wii: 1.5m
PS3. 0.7m

They've got a lead, but they could/should have sold more with their head start.
 
Xrenity said:
Let's say they sold about 3/4 million when Wii/PS3 launch.

Wii might sell about 1.5 million by the end of the year in the US, PS3 maybeeee 700k, due to shortages?

360: 4m
Wii: 1.5m
PS3. 0.7m

They've got a lead, but they could/should have sold more with their head start.

So X360 is going to sell an additional 2M units in 4 months in NA alone?


I DONT THINK SO!!!!
 
Xrenity said:
Let's say they sold about 3/4 million when Wii/PS3 launch.

Wii might sell about 1.5 million by the end of the year in the US, PS3 maybeeee 700k, due to shortages?

360: 4m
Wii: 1.5m
PS3. 0.7m

They've got a lead, but they could/should have sold more with their head start.

If you believe the news from retailers this week, PS3 has 1 million in NA on launch day, Wii has 750k. I don't think 360 will have 4 million sold by the time PS3 launches in mid-November - it would have to double its number of systems sold in the next 3 months, before the Thanksgiving -> Christmas stretch even.
 
Kleegamefan said:
So X360 is going to sell an additional 2M units in 4 months in NA alone?


I DONT THINK SO!!!!
I didn't want to be told I was to negative on 360.
LiveFromKyoto said:
If you believe the news from retailers this week, PS3 has 1 million in NA on launch day, Wii has 750k. And how is 360 going to double its number of systems sold in the next 3 months, before the Thanksgiving -> Christmas stretch even?
PS3 will have around 2 million worldwide. No chance in hell US is getting 1 million.

Wii will have about ~5.5m by the end of this calendar year, so let's devide it in JAP 2.5m, and both US and Europe 1.5m
 
LiveFromKyoto said:
If you believe the news from retailers this week, PS3 has 1 million in NA on launch day, Wii has 750k. And how is 360 going to double its number of systems sold in the next 3 months, before the Thanksgiving -> Christmas stretch even?

That was an estimate by the Gamestop guy, not confirmed shipments -- and wasn't his estimate based off of Sony's statements at E3? I'd assume shipment numbers and allocations have changed since then.
 
Kleegamefan said:
So X360 is going to sell an additional 2M units in 4 months in NA alone?


I DONT THINK SO!!!!
MS will definately move a couple of million during the holidays. Sony has said they will bring in twice the launch quantities (world-wide) by the end of the year, so assuming a roughly even split with the rest of the world:

360: 4.5m
PS3: 1.5m

That's not an insurmountable lead, and 2007 is definately up for grabs. X factors: PS3 supply and 360 pricing moves.

Bear in mind the 360 is tracking ahead of the XBox month-over month, and the first sold over 2m in the last four months of its first full year. I don't see any reason why the 360 will slow down, relatively, this holiay. The holiday software lineup is light years ahead of what the first Xbox had its second holiday.
 
Xrenity said:
I didn't want to be told I was to negative on 360.

PS3 will have around 2 million worldwide. No chance in hell US is getting 1 million.

It depends how badly they want to jack Europe. If they go NA 1mil, Japan 700k, Europe 300k, it could definitely happen.

Wii will have about ~5.5m by the end of this calendar year, so let's devide it in JAP 2.5m, and both US and Europe 1.5m

Going by what's been said, I have a feeling that 5.5 may either be wishful thinking on Nintendo's part, or fiscal rather than calendar year.
 
LiveFromKyoto said:
Going by what's been said, I have a feeling that 5.5 may either be wishful thinking on Nintendo's part, or fiscal rather than calendar year.
Nintendo has allegedly bumped production of Wii hardware to 5.5 million units by the end of the year, a significant upgrade to previous numbers. The jump is purportedly based on the positive reaction to Wii from press and industry analysts at E3 2006.
http://www.neogaf.com/forum/showthread.php?t=113517

They said 6 million this fiscal year, so 5.5m by the end of this calendar year wouldn't be a significant upgrade.
 
Kurosaki Ichigo said:
Guys...PS3 will ->ship<- 6m by March 2007 worldwide.

I'd be surprised if NPD USA reflects more than 2m by then....

If thats true then MS is fuxxord cause that would mean 4M PS3s shipped in EU and JAP combined, markets where 360 has flatlined(136,000 LTD sales of X360 in japan:lol )....

It would also mean that PS3 brand is as strong as ever and would also be the fastest start for any console in history....
 
Xrenity said:
http://www.neogaf.com/forum/showthread.php?t=113517

They said 6 million this fiscal year, so 5.5m by the end of this calendar year wouldn't be a significant upgrade.

As I sit here trying to act all smart and stuff I suddenly realize I don't know - when does Nintendo's fiscal year end, anyway?

Kleegamefan said:
It would also mean that PS3 brand is as strong as ever and would also be the fastest start for any console in history....

Can you imagine if they actually pulled that off, after the pounding they've taken since E3? PS4 $800 price tag confirmed :lol
 
I'd like to sum up a majority of the thoughts in this thread in a short, succint manner.

Your article sucks.
 
C4Lukins said:
I don't really think that is comparable, unless racing games and FPS games are a "niche" audience. Looking at the history of the Dreamcast, it failed because the company behind it ran out of money. Plus a vastly superior gaming system came out shortly afterwards. Those are two big issues you really do not have to worry about concerning the 360.

The thing with Dreamcast is that even if Sega had the money to back it up it was already on it's way to the grave by the time they dropped it. It failed in Japan, the sales in Europe were really slow, and in America it did well for the first six months or so but afterwards sales were extremely sluggish. Obviously this isn't the case with the 360 at all, it's gonna sell very well in America but is that enough to warrant a victory? I'm not sure.

Personally I look at how the 360 is doing and the kind of software it has on the horizon for it and I just don't see a market leading console being built up at all, the videogame industry isn't just about the NA market and even if it was I still don't see it. I do think they're gonna narrow the gap considerably this gen, but honestly I feel like I'd have to bank on the failure of both Sony and Nintendo first to assume MS was gonna lead at this pace, which is pretty unlikely imo. The 360 is gonna be very successful but I see nothing yet that would make me pick it as a "winner", it's no PS2 in that respect.
 
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