Prototype Viktor
Member
Yes man Sony taking so much of a bath if you only buy one game over the next 5 years. Tough times to sit and wait on the money to come in just to make a firmware /s
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Will MS go for Sony's throat at E3 and undercut their PS4 MSRP ?
- Thread starter Apophis2036
- Start date
Truespeed
Member
Microsoft would need to do something completely radical and game changing than a reactionary price cut. They have an underpowered system that will have the burden of inferior multiplatform games for the rest of its lifespan. There is really nothing Microsoft can do except to try and secure as many exclusives as possible and hope for the best. Besides, Microsoft's throat is busy being choked by Google.
Louis Cyphre
Banned
How about a subsidized XBox One for $299?
http://www.theverge.com/2012/10/23/3542196/xbox-360-250gb-two-year-contract-subsidy
Or partner with someone like Comcast. One thing is clear from those at Microsoft, there won't be a Kinectless XBox One.
Uno Venova
Banned
They cancelled the subsidy plan for the 360, it didn't work. I doubt they will start up up for the One.
davepoobond
you can't put a price on sparks
Only if they drop the kinect. And sell it separately
Freeman
Banned
The connection you make about firmware updates make absolutely no sense, just shameful.
Where are you getting that information from anyway? MS pretty much already sells Xbox close to 400$ with Kinect included, there is no evidence to suggest that the PS4 is significantly more expensive than the Xbox One without Kinect(it might actually be cheaper to manufacture, not to mention R&D and marketing). Many games are been announced for PS4 by third party, hard to actually find a game that isn't coming to PS4 unless they have a deal with MS. How could Sony expect more sales if there consoles was pretty much sold out most of the time? They already exceed their forecast likely with more than 2m consoles.
Cable companies want 100% control. Xbox cable box offers nothing unless it comes with a Microsoft money hat so what is the point for Microsoft, subsidising the Xbox for the cable company because they certainly have zero reason to want Xbox or help Microsoft when they already have the sector stitched up. It's never going to happen.
spookyfish
Member
When I hear/see "go for the throat," I automatically think about the combatant who already has the upper hand in a struggle.
That analogy does not work for MS in this case.
That analogy does not work for MS in this case.
What do you mean by silenced? Do you mean is there a reason devs are silent today? Then the answer is yes. Wait until June.
They have...but you should also wait until E3. There's no expectation for either Microsoft or Sony to randomly announce new titles. When was the last big Xbox game reveal?
Entirely unlikely considering their inability to meet demand.
It benefits them by increasing the potential market base for gamers who will buy PS4 games. Sony has managed to secure and release 50% more titles on their box than the competition, and software has a much higher margin and than console sales.
I wish. There are going to be a lot of ex-Sony employees soon.
edit: above has nothing to do with gaming divsion, though we've seen cutbacks there too, just not en mass.
kinoki
Illness is the doctor to whom we pay most heed; to kindness, to knowledge, we make promise only; pain we obey.
Well, you do know that Microsoft most likely has a 12 month manufacturing contract where they have asked for a 1 million per month of console + kinect. Making a kinectless SKU means that every unit sold without a kinect means that there's one sitting in a warehouse that cost money to make. If they wait until the 10th month or later they can stop making more or make fewer so they don't have to have them piled up by the millions.
Grabbing up exclusives is also a difficult path fraught with danger. Microsoft has a history of securing games that remain exclusive simply because of a clause in some contract that doesn't allow a multiplatform release. Enthusiastic gamers don't tend to like this type of behaviour, no matter who does it.
Now, if they're wise they'll simply focus on selecting and funding those games that would have otherwise never been made.
Dragonborn
Member
Why would Comcast push MS' X1 when they can instead push their own product?
SteveO1683
Member
I doubt they will undercut it. If anything there may be a Kinect-less SKU that matches it or they may just bite the bullet and drop the MSRP to match it. Worst case they make it 450 but I don't believe it will stay at 500.
Dragonborn
Member
Not to mention, as the gap continues to grow rapidly, it'll be much more expensive to secure exclusives since Devs will be reluctant to miss out on the big PS4 install base.
Honestly, I think this gen will look pretty similar to the sixth gen.
PS4 = PS1
X1 = N64
Wii U = Saturn
Syphon Filter
Member
Isn't MS funding those 3rd party titles. That is different compared to money hat like titanfall. something like sunset overdrive is publish and funded so i can see them doing that this gen.
Clearly they dumped all their lightweight I-just-want-to-work losers in the US.
They cheated.
Dragonborn
Member
Yea, games like QB and SO are the good kind of exclusives where they wouldn't exist without MS' funding.
I was referring mainly to moneyhats like TF. Those are going to be very tough to secure going forward. MS will have to rely on funding new IPs via third party devs (like Remedy and Insomniac) or trusting their older IPs to other devs (like KI) rather than moneyhatting well known games
James Sawyer Ford
Member
It's still 50-60K more consoles per month world wide than what Microsoft is selling. It's not big now, but things should also turn around once the software situation gets better.
Annualized, and accounting for holiday increases, that's a million more consoles per year thanks to Japan alone, even with pretty bad performance in that region (MS will undoubtedly have much worse).
bawwhaaahaaa.
razgriz417
Member
That is a possibility. Isn't there a rumor going around they're getting an exclusive Japanese game and that most people think its gonna be Platinum Games making it? Wouldn't surprise me if they funded that project (like how Nintendo helped with Bayonetta 2)
TheLostBigBoss
Banned
LMAO...I'm sorry, what?
I just wonder if Microsoft will react like Sony did with the PS3 and really double down on the first party studios. It seems difficult, though, as they really only have one active battleground. The brand isn't strong enough outside North America (except perhaps the UK) to play any sort of role in a comeback.
Investing in first party studios is a longer term strategy though. It's hard to just pop out a Naughty Dog. Plus it seems like MS prefers the money hat strategy, especially in the early going.
I see no reason why they can't build up their first party studios. We see people talking about their "warchest" and how they have unlimited funds, so why can't they use it? The last few years of the 360 exclusives were a joke compared to Sony/Nintendo who made exclusives for both their consoles and handhelds.
Are you moist? lol
Seems unlikely I reckon.
I doubt the suits at MS would be thrilled at running up huge losses again with Xbox hardware for a start. The third gen was supposed to be where the money really starts rolling in and they dominate - not when they have to eat margin just to gain market-share.
Also MS have been declaring that sales relative to the 360 are fine. Would be a big PR issue if they cut the price that steeply without a lot of decent PR setup as it would be taken as an admission of failure in the market so far and would also cast doubts on earlier statements.
I reckon they might shave the price a bit but not nearly that much. I guess they might cut Kinect too which would be the easiest way to cut price without unduly hurting revenue.
I doubt the suits at MS would be thrilled at running up huge losses again with Xbox hardware for a start. The third gen was supposed to be where the money really starts rolling in and they dominate - not when they have to eat margin just to gain market-share.
Also MS have been declaring that sales relative to the 360 are fine. Would be a big PR issue if they cut the price that steeply without a lot of decent PR setup as it would be taken as an admission of failure in the market so far and would also cast doubts on earlier statements.
I reckon they might shave the price a bit but not nearly that much. I guess they might cut Kinect too which would be the easiest way to cut price without unduly hurting revenue.
looks like this temporary price cut may just stick around as a stealth price cut... they're making money off of it
That's about what I think might happen, at least in terms of relative sales numbers.
The only subsidized XB1 will be if MS creates their own IPTV service. Cable companies want full control and will use their own boxes. Comcast already has the X1.
This is what happens when a console relies only on a few regions to sell. A company with a console that is cheaper, more powerful, and more world wide appeal comes in and outcompetes you, then you are in trouble. They have no other places to fall back on. It's like when an animal relies on only on area to survive and another species that Is faster and stronger moves in and outcompetes it in resources. The original animal faces extinction because it has no established populations outside that one area. That's how I see the xbox.
I'm going to give a 2:1 sales ratio a 1:4000000 chace of happening this gen between PS4 and Xbox One...
kinoki
Illness is the doctor to whom we pay most heed; to kindness, to knowledge, we make promise only; pain we obey.
No, they're losing money until consumers buy 5-6 games and or subscribe to Xbox Gold for an unspecified amount of time.
Certainly, but its clear at this point that it won't be as viable for them moving forward. Furthermore, there was a lot of talk from the party faithful about something like $1 billion being invested into first party development. If that's the case, then I'd like to think that they're well one their way to achieving this. Keep in mind that Sony's best years with the PS3 didn't start until 2009, nearly three years after the launch. Microsoft may prefer that strategy, but its one that benefits the guy in the lead, not the runner up.
Money hats can help buy time until those new studios are ready, but as a predominantly Sony focused gamer I eagerly want to see Microsoft compete in this space. I don't care for Halo, Gears, and Forza, and since those titles are such a vast majority of their first party output, I obviously lose interest. Losing Black Tusk to a (imo) tired franchise isn't a great start, either.
Freeman
Banned
Now that Titanfall has come and gone without as much of an impact as many predicted, I wonder how the deals Sony made with Ubisoft and Activision to promote WD, Destiny, Diablo and probably the next AC will affect XO/PS4 sales in the next few months.All that combined with superior versions is a powerful combination.
So far the PS4 has sold this year between double and triple the number of units the XO has sold and that was with all the Titanfall hype and promotion.
MS can't afford to "lose" this E3.
So far the PS4 has sold this year between double and triple the number of units the XO has sold and that was with all the Titanfall hype and promotion.
MS can't afford to "lose" this E3.
Dragonborn
Member
It's already heading that way
I'm UKgaf but I would imagine retailers do similar sale-or-return deals in the US - would MS have the muscle to avoid those?
I've forgotten the pie chart of 'who takes the money' for consoles, but I remember from my own time in multiple retail management training that the one thing to avoid as much as possible was being lumbered with non-selling products, and that price discounting was a normal route for shifting stuff that wasn't on SoR, even at the expense of margin.
What's even more baffling is how MS double down on NA and the UK (moreso NA) with the initial plans they had for the XB1. The initial XB1 was very much an 'American Box' and little else.
You'd think MS would try to build off the momentum they had with the 360 to really expand the Xbox brand worldwide, unseating the PlayStation brand for good. But they did the exact opposite.
pretty sure they are even or better... certainlly not 5-6 games and multipul years of XBL
These. If Microsoft happens to take as many losses for Xbox One like they did for the Original Xbox or like Sony did with PS3, their investors will most likely force Microsoft to drop the Xbox brand.
They're not gonna tolerate huge losses for three generations in a row (including with the Xbox 360 from 2005-2007; $1 Billion RROD loss included).
I'm hoping to be pleasantly surprised. I'm a predominantly Sony fan, but I can appreciate great games when I see them. Also, as a Sony fan, I know exactly what it was like every year hearing about how Sony couldn't afford to lose E3. Microsoft could fail to show anything of worth and I don't think it would have much of an impact. After all, it would just be confirming what we think we already know - that they're in trouble.
I'm not sure which platform holder is in a better position. Sony doesn't want to do anything that might reduce their momentum, and Microsoft has to overcome the negativity surrounding their brand.
shouamabane
Member
$299 without Kinect would be pretty tempting.
This thread man.
One company is going to lose 1.1 billion dollars... the other company has more cash then the first company is worth... I'll let you figure it out. There will not be a 2:1 sale ration this generation no matter how many sony ponies get out of their stables. It's also not healthy for the industry.
Dragonborn
Member
Are you actually serious dude?
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