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[kazuyamishima]

I do feel bad for Jap consumers overall. The Yen is tanking hard and there’s very little that can be done to fix it, without destroying the short term.

The yen is strengthening against other currencies thanks to the Bank of Japan decisions of increase interest rates and reducing buying bonds from the government.

And they’re considering doing more interest rates hikes in the near future.

 

[Ozriel]

Why is Xbox led by complete fools?

Stupidity indeed. Is Spencer actively trying to sabotage Xbox hardware?

 

[DragonNCM]

So raising prices on a console that barely sells there now, and will no doubt result in even less sales, will counter-act the weaker Yen?

Can I get an exec position at MS? Because I couldn't possibly make worse decisions. What are you paying Phil? I'll do it for half.

Hell I will do it for free. Lets see who can faster ruin Xbox brand !!!!

 

[Punished Miku]

Any price increase on the hardware is just absurd. I really don't recall it ever happening prior to this gen.

Definitely seems like we're exiting the era of subsidized hardware.

 

[Bond007]

Who pitched this idea at MS?
Smart guy

 

[dragonyeuw]

Hell I will do it for free. Lets see who can faster ruin Xbox brand !!!!

Seriously though, Japan has spoken loud and clear about the Xbox brand. I can't imagine the logistics of even shipping consoles to that region to be worth it at this point.

 

[ChorizoPicozo]

oh I see, trying the old "get a second job"

 

[Rocco Schiavone]

Phillip W. Spencer III knows how to run business.​

 

[ChiefDada]

So raising prices on a console that barely sells there now, and will no doubt result in even less sales, will counter-act the weaker Yen?

Can I get an exec position at MS? Because I couldn't possibly make worse decisions. What are you paying Phil? I'll do it for half.

I don't think the objective here is to sell more consoles, but rather to defend profit margins for the small amount of units that do sell.

 

[hououinkyouma00]

Ultimately it probably won't make much of a difference in sales considering its barely sells anyway. Microsoft never learns, and always says they want to try for the market and never does so fuck em. Game Pass is NOT enough to keep your platform going especially in a market like Japan.

When I was there in April I only ever saw like a 5ish foot wide section in Yodabashi, and a very small Xbox 360 section in some Book Offs.

 

[Trogdor1123]

I don’t care much about this change but the impact this will have next gen worries me. If they can’t get current gen prices down, how are they going to do the next gen? Dram prices supposed essentially double in the next 12 months too.

 

[Celcius]

MS trying to speedrun themselves to being a 3rd party publisher

 

[Sorcerer]

edit

 

[Mephisto40]

They just don't care any more do they

 

[dragonyeuw]

I don't think the objective here is to sell more consoles, but rather to defend profit margins for the small amount of units that do sell.

My post wasn't suggesting that was their motive. But I don't see how less overall hardware sales results in more money for them then protecting profits for the measly amount of units they are moving. But I'm not a MS bean counter so I won't pretend to know what numbers they're crunching. They don't seem especially interested in improving the long term brand perception over short term profits, especially in a region that has very clearly rejected them.

 

[mckmas8808]

Yen's been tanking since the start of July, so I suppose that makes sense... but I wonder if they'll drop the price this quickly when it rebounds?

Now the Yen is doing ALOT better. So was this a mistake on MS' part?

 

[Three]

Now the Yen is doing ALOT better. So was this a mistake on MS' part?

Doubt it. They always do it when they see a bounce back happening in the currency whether short term or more long term. They did the same in 2023.

possibly make some profit as the currency slowly recovers.

They should have increased it in September really when it hit rock bottom but they wanted to compete better and use their competitors hike against them

 

[ZehDon]

Now the Yen is doing ALOT better. So was this a mistake on MS' part?

Given BOJ's outlook, Microsoft might have been early, but they're not wrong. But who knows - Corporations gonna corporate.

 

[Fake]

Will increase the sales.

 

[Unknown?]

I do feel bad for Jap consumers overall. The Yen is tanking hard and there’s very little that can be done to fix it, without destroying the short term.

Back the yen by tangible commodities, remove the bank of Japan, stop banks from being able to create currency and put it in the hands of government?

Lots they can do, they just won't do it.

 

[Kurimao]

jim-ryan-laughing.gif

Would be more hilarious if Sony counters this a price drop.

 

[Cyber_hunter026]

 

[Mr Moose]

jim-ryan-laughing.gif

Would be more hilarious if Sony counters this a price drop.

The Yen is increasing from what I can tell so yeah it would make sense lol.

 

[S0ULZB0URNE]

Maybe they think cod on GP will move units...

 

[Dorfdad]

Maybe I’m thinking outside the box, but does this allow them to claim more losses from non sales for tax benefits? No other reason to rise prices in a product that won’t sell.

 

[Rhazer Fusion]

That price increase will definitely cause a huge sales surge for XBox. I’m totally convinced that Microsoft wants the Xbox to perish.

 

[Mr Moose]

Maybe I’m thinking outside the box, but does this allow them to claim more losses from non sales for tax benefits? No other reason to rise prices in a product that won’t sell.

They have to pay stores for space.

 

[Pop]

Smart strategy Phil

Impressive

 

[Dr. Suchong]

Microsoft killing it!!

 

[VolticArchangel]

Is this because of the TSE fall earlier today and the Yen strengthening?

Still doesn't explain the absolute batshit insane thinking of MS when they haven't passed the fucking Panasonic 3DO in the region, for almost 2 consecutive generations of consoles.

Cut the profits, and sell at (or close to) cost to improve engagement (forget profits on hardware for this generation) you fucking morons.

 

[UltimaKilo]

Back the yen by tangible commodities, remove the bank of Japan, stop banks from being able to create currency and put it in the hands of government?

Lots they can do, they just won't do it.

Which is why I said they won’t, because it would destroy the economy in the short-term. Nobody is willing to sacrifice short term pain for long term health.

 

[EverydayBeast]

Price increase

 

[mckmas8808]

Which is why I said they won’t, because it would destroy the economy in the short-term. Nobody is willing to sacrifice short term pain for long term health.

You're assuming that move will guarantee long term health....

 

[UltimaKilo]

You're assuming that move will guarantee long term health....

Nothing is guaranteed since there’s a number of unknown unknowns that could pop up, but it would put them on the right track.

 

[JCK75]

What the hell are they even doing? the Series S could tear shit up if they would get it lower..
I mean I remember how the gamecube struggled but once it hit a sweet $99 price point suddenly everyone I knew got one just because.. why wouldn't you at that price?

 

[Small John McCarthy]

BOJ has now promised that they never do something so rash as to move the interest rate ONE Quarter of ONE percent while the economic outlook is “unstable”. That should highlight the tremendous weakness in the Japanese economy.

The reality is that the yen is going to weaken further and there is very little that can be done at this point. The Japanese are going to experience a considerable reduction in standard of living - which has in fact been happening gradually for at least 20 years. Salaries have decreased since I was here in 2004 and prices have risen.

When you allow the government to print, this is typically the result. And it’s common sense - but most of us were bamboozeld into thinking the MMT “experts” actually knew what they were talking about. Shame it took until now for me to realise that experts are bought and sold.

 

[GHG]

What the hell are they even doing? the Series S could tear shit up if they would get it lower..
I mean I remember how the gamecube struggled but once it hit a sweet $99 price point suddenly everyone I knew got one just because.. why wouldn't you at that price?

Margins matter, especially when you've just spent 80 billion.

They also have the problem where, by and large, the people who purchase their hardware aren't buying software. So they won't be making back whatever financial shortfall they'd have to take in dropping the price that low elsewhere either.

 

[Angry_Megalodon]

This money is for funding a new wave of Japanese exclusives for next-gen xbox. Phil sees the big picture.

 

[jm89]

Maybe they think cod on GP will move units...

Cod on GP will be the defining moment for xbox this gen.

If it doesn't move decent sub numbers, tick tock tick tock.

 

[JCK75]

Margins matter, especially when you've just spent 80 billion.

They also have the problem where, by and large, the people who purchase their hardware aren't buying software. So they won't be making back whatever financial shortfall they'd have to take in dropping the price that low elsewhere either.

More Xbox consoles in homes = more potential gamepass subs (if they could also stop jacking up the price on that)

 

[Skifi28]

This money is for funding a new wave of Japanese exclusives for next-gen xbox. Phil sees the big picture.

I'm sure Phil is looking into ways to close more Japanese studios in the future. It's revenge porn at this point.

 

[GHG]

More Xbox consoles in homes = more potential gamepass subs (if they could also stop jacking up the price on that)

Ideally they want people to sub without having to subsidise them on the hardware side. Profit margins for subscription services are very unforgiving.

 

[//DEVIL//]

has nothing to do with the sales there.

The yen is weak. The price difference was about 80$ or more compared to the west not including the retail profit .

Third party sellers could just grab consoles from Japan and sell it world wide for more profit than how MS does per console


With that being said I am surprised MS don’t close Japan . Just use cloud or whatever stick and call it a day . The console sales in that region is less than how much a 1 MS employee salary .

 

[GHG]

Third party sellers could just grab consoles from Japan and sell it world wide for more profit than how MS does per console

Considering the sales numbers in Japan it doesn't look like many people were even doing that.

 

[JCK75]

Ideally they want people to sub without having to subsidise them on the hardware side. Profit margins for subscription services are very unforgiving.

When they first announced the console, the deal they were offering was you committed to a contract of X months of gamepass ultimate and you got the console for free..
I don't know what became of this, it seems impossible to actually take advantage of at the time.. but it was a thing.

 

[Astray]

Margins matter, especially when you've just spent 80 billion.

They also have the problem where, by and large, the people who purchase their hardware aren't buying software. So they won't be making back whatever financial shortfall they'd have to take in dropping the price that low elsewhere either.

Ideally they want people to sub without having to subsidise them on the hardware side. Profit margins for subscription services are very unforgiving.

I actually ran a rough calculation comparing the 1st year of a PC and Xbox subscriber to gamepass from Microsoft's POV:

News - Platform - "Xbox Game Pass Standard" is launching in September

You’re talking in circles. A price increase or new creative tier subs is not the problem. The problem is this: * There is a $11 option for PC-only gamers to get the Gamepass library and day 1 games. * There is NO $11 option for console-only gamers to get the Gamepass library and day 1 games...

www.neogaf.com

I think if my calculations are right, Microsoft will likely see the remaining Xbox subscribers as stones to squeeze blood from, and PC users as margin generators.