View Full Version : Microsoft CFO outlines MS's long term Xbox strategy
Not exactly news, but it's interesting anyway. Chief Financial Officer and senior vice president John Connors gave a speech where he outlined Microsoft's strategy in different business markets. Here's the part of the speech that talks about Xbox:
http://knowledge.emory.edu/articles.cfm?catid=7&articleid=577&homepage=yes
The Xbox falls under the games platform, the Home and Entertainment Division. “We’re in this market because it is a big opportunity,” says Connors. “So far we’re doing pretty good in the U.S.; we’re actually ahead of where Sony was with PlayStation when they launched. We’re not doing that great in Europe; and in Japan, we’re getting slaughtered. But what we can do long term is build a games platform, and we have a competency at building platforms, getting the right application yield on those platforms. Then we can hopefully build a really great consumer business. We’ve got to figure out how to bring our TV efforts together with Xbox over time, and our e-home initiatives for home networking. If we do that right, we can have a pretty good business in five years.”
I have always wanted to know how much of the xbox's troubles have to do with antiamerican bigotry.
What would it take for the xbox to sell well in these other countries? What are the current sales figures in Europe?
What do the Europeans want that the xbox doesn't have? Is it really that the xbox is lacking necessary titles or is it just that MS has a "bad" reputation or that the xbox is simply new to the game? What did the Genesis have that the xbox doesn't?
marconelly!
27-Sep-2002, 19:48
What would it take for the xbox to sell well in these other countries? What are the current sales figures in Europe?
I believe Xbox is in third place in europe. Nintendo announced they have shipped one million GCs there and I'm sure MS would announce the same if they did it.
What would it take to sell better in Japan and Europe? I don't know. Anti-american feeling is pretty strong in some European contries, and probably Japan (I can't talk about that as I haven't experienced it firsthand)
Microsoft would need to do something really big to garner the better support Japan, like buy out Konami and Enix, for example. Chances of that happening are pretty much null, though.
Anti-american feeling is pretty strong in some European contries[/qoute]
I find this absolutely ridiculous. I truly believe their dislike of America stims from envy.
MrSingh
27-Sep-2002, 20:28
Anti-american feeling is pretty strong in some European contries, and probably Japan
I don't get that strong anti-american sentiment here. in fact you'll be surpised how many people here want to "live the american way" sometimes.
CeiserSöze
27-Sep-2002, 20:50
It's not anti-America over here - it's more an anti-Microsoft sentiment that is hurting XBox-sales. I don't know how it is in America but here most people don't like (and don't trust) Microsoft very much.
Here (Switzerland) only about 15% of all consoles sold are XBoxes (35% are Cubes and 50% PS2's).
marconelly!
27-Sep-2002, 21:19
I find this absolutely ridiculous. I truly believe their dislike of America stims from envy.
Their dislike to America usualy stems from problems they've been exposed (directly or indirectly) by America. From policital pressures and strongarming, to pop-culture intoxination. Or at least they perceive it that way even if it's not true. That, of course, doesn't go for all people and all countries. Btw, trust me, there's not much to be envious about life in America. I've seen both sides.
I suppose Marconelly! that its a matter of perspective. I really couldn't stand to live under socialism as it inhibits growth of buisness/economy/GNP/personal freedoms. I suppose some of these people from other countries feel as though we are "strong arming" them. Honestly i don't see much of that going on in Europe. Europeans have quite a history of that themselves though :). I find their behavior to be rather hypocritical.
The life style here is fine. Honestly much of what people think of americans comes from the media which infact represents only the most minute portion of america.
As for the Xbox sales, what is it that people want to see on this system that it just doesn't have? What do you think they are looking for? Do you think they aren't ready for a 3 system market?
It looks to me as though MS will just have to earn their respect.
marconelly!
27-Sep-2002, 22:24
The life style here is fine. Honestly much of what people think of americans comes from the media which infact represents only the most minute portion of america.
I agree. It's fine. But it's also fine there. Even more so in many respects. Also, most of the Europe has nothing to do with socialism.
As for the Xbox sales, what is it that people want to see on this system that it just doesn't have? What do you think they are looking for? Do you think they aren't ready for a 3 system market?
I think 3 systems can and should do just fine, except maybe in Japan, where I don't see what kind of miracle can make xbox sell so much more than it is right now. Heck, even GC is lagging badly there, and you can tell big developers in Japan are already losing interest in Xbox. There isn't a single new game from Konami, Square or Enix announced for it, and MGS2:S apparently won't even be released on Xbox there...
As for Europe, I think Xbox will do fine there, eventually. What it doesn't have right now, is something to really distinguish it from PS2, to make it obvious that it has something to offer that you cannot get on PS2, not even something similar. I think that's the biggest problem it's really facing, aside the lack of coolness aura and lots of negative hype steming from the fact is't being made by 'evil buggy software' Microsoft.
Perhaps Project Ego will be such game, it really sounds promising, and I think will do very well in EU.
I have always wanted to know how much of the xbox's troubles have to do with antiamerican bigotry.
In Japan, no idea how much of it has to do with that.
In England, its poor sales are nothing to do with it. Try being offered a XBox for $470 (£300) at release and see how eager you are to snap it up. XBox didn't start selling decently here until they dropped the price to $312 (£200). Now that its down to $250 (£159.99) its in a much better position to sell well.
Notice that every price listed there for XBox is well over the price it was being sold for outside Europe at the same time. Sony did a similar thing with PS2, but PS2 had the market to itself and by the time it didn't it had a massive user base and huge awareness amongst gamers. Nintendo realised that with the market the way it is they couldn't treate Europe like idiots, as they have done in the past, and released the console cheaper here then they had in the U.S and Japan... they also had the Nintendo name of course, both of these factors helped them get off to a good start.
I find this absolutely ridiculous. I truly believe their dislike of America stims from envy.
People around here hate allot of stuff that comes from North America, but I won't go into it unless you really want me too, because it would take too long.
But as I said XBox not selling to well here has nothing to do with any of that, nobody here really thinks of XBox as an American console, its just a console.
interesting point Marconelly...i forgot that Project Ego is being produced by Peter Molyneux.
I really don't care how the Europeans feel about the US. I see them as hypocrits.
cybamerc
27-Sep-2002, 23:04
Legion:
> I really don't care how the Europeans feel about the US. I see them as
> hypocrits.
That is as funny as it is stupid.
Ozymandis
27-Sep-2002, 23:08
I have always wanted to know how much of the xbox's troubles have to do with antiamerican bigotry.
In Japan, probably a lot. The Japanese are notably anti-American sometimes, not suprising after WWII. I don't know (and don't really care) about Europe. That's like the "black sheep" of videogame territories :lol:
well actually cybermerc its neither funny nor stupid. Europe has a long history of genocide, murder, strongarming, etc. All one has to do is look at the history of south america and india to know that much. No one country in this world is innocent. If your intent is to incite me into arguing with you please take your commentary to me via aol or yahoo. I really have no interest in engaging in puerile arguments over things which are common knowledge here in this forum.
I noticed Ozy in several public commentaries about MGS2 a few individuals interviewed said they wouldn't buy it because it appears "too american."
BTW how is star fox adventures?
well actually cybermerc its neither funny nor stupid. Europe has a long history of genocide, murder, strongarming, etc. All one has to do is look at the history of south america and india to know that much. No one country in this world is innocent. If your intent is to incite me into arguing with you please take your commentary to me via aol or yahoo. I really have no interest in engaging in puerile arguments over things which are common knowledge here in this forum.
And just exactly does that have with the fact that some people who live in Europe today maybe don't want to buy a console from Microsoft?
And some parts of Europe doesn't have a long history of genocide. Some do.
And just exactly does that have with the fact that some people who live in Europe today maybe don't want to buy a console from Microsoft?
And some parts of Europe doesn't have a long history of genocide. Some do.
Tuna the point was made to cybermerc. It has nothing to do with selling the consoles nor did his prior statement to me.
Steve Dave Part Deux
28-Sep-2002, 01:43
"Personal Freedom" is a meaningless buzzword used frequently by conservatives to justify denying services to people that need them. While they have no qualms about giving billions in tax breaks and subsidies to crooks and bigots. They also don't mind criticizing Iraq for harboring chemical and biological weapons when we have poorly maintained storehouses of such devices that are now contaminating groundwater and poisoning people right here in the US.
"Personal Freedom" is a meaningless buzzword used frequently by conservatives to justify denying services to people that need them.
actually i'd have to say that the buzz term is used quite often by both sides. Especially when liberals filabuster insupport of abortion (which does nothing more than help futher personal irresponsibility). Liberals have a tendency to invent problems and people who need to be helped.
While they have no qualms about giving billions in tax breaks and subsidies to crooks and bigots.
Like the liberals don't do that with law firms, drug dealers, and the like? Come on both sides have helped questionable constituants. Personally i see nothing wrong with giving a tax break to the wealthy. There is no reason why they should be in a higher tax bracket then the rest of us simply because they are more successful.
They also don't mind criticizing Iraq for harboring chemical and biological weapons when we have poorly maintained storehouses of such devices that are now contaminating groundwater and poisoning people right here in the US.
WTF? What are you talking about?
Ozymandis
28-Sep-2002, 04:19
I noticed Ozy in several public commentaries about MGS2 a few individuals interviewed said they wouldn't buy it because it appears "too american."
BTW how is star fox adventures?
Anti-American bias is definitely out there, but it's certainly understandable. Everyone is always going to hate the greatest, most powerful, wealthiest nation. It's mostly jealousy.
SFA is cool. I'm not too far in, but it's been fun so far. There are some flaws already popping out though. The voice acting (which is in a made-up language) is positively horrid. It's like a cheap Star Wars rip-off, but the concept seems taken from Panzer Dragoon. Panzer did it with class, this is just awful :(
The alleged anti-american sentiment in Europe is vastly overstated by the conservative media in the US that can't deal with political criticism. There is the tendency to label dissent as anti-americanism. This is, as far as I am concerned, just a meaningless political epithet employed to exclude your critics from rational discourse. It has quite an McCartian ring to it, too.
The USA as a country is still perceived in a vastly positive light here, even though that light has been somewhat dimmed by some actions of the current US administration which many Europeans find profoundly wrong and in some cases even insolent.
This has absolutely nothing to do with some sort of penis envy, as some people have suggested. If anything, the economic success of the US is admired. Besides, most Europeans are quite content with their lives and content people have little use for jealousy.
I think it would be more appropriate to call it "Anti-BUSHism" and I hope I do not need to stress that a dislike for the current US administrations and some of it's policies does not equal anti-americanism. Most people are very well aware of the fact that Bush was not elected by a popular majority.
This can be clearly be seen when looking at the last two Berlin visits of American presidents. When Clinton visited Berlin back in 1998, at the height of the US economic boom, he was enthusiastically greeted by an crowd of tens of thousands. Bush on the other hand was "greeted" by tens of thousands protestors earlier this year. Anti-Americanism? Jealousy? I think not.
Also, Europeans have shown little, if any, tendency in the past to base their consumer decisions on nationality. To my knowledge, there have been no "Buy European/German/Italian/whatever" campaigns unlike in the US, where the "Buy American" thing pops op every time the US economy is devloping a minor hiccup.
One of the few exceptions is automobiles but that probably stems from the fact that American cars are widely perceived as fuel-guzzling, low-quality pieces of junk which might transform into horrible robots of death and destruction, raping your kitty and eating babies. Asian cars do very well, even though they are suspected to sprout tentacles and molest Catholic schoolgirls. But they probably asked for it anyway.
Anyway, back to the topic. Xbox.
There are probably several reasons the Xbox fails.
One reason is probably anti-MS sentiment. Americans distrust big government while Europeans distrust big business. Europeans are extremely paranoid about their privacy and MS hasn't exactly the best track record in that particular area. Plus, the company is seen as a rather shady monopolist constantly stifling competition. As I said, there is an underlying distrust of big business here and MS is as big a business as it gets. The other thing is that it is kinda hard to sell people a MS box when they already got one at home that crashes every time you look at it crosswise. So basically, MS products aren't exactly popular unless it's an optical mouse.
The most important reason was pricing. Initially, the Xbox retailed at €479 (that's 468$). And to make matters even worse, the MSRP for Xbox games is €69 (= 67.50$). With PS2 games going for €59 and PC games for €45, this probably wasn't the best idea. Of course, a PS2 selling for €299 (IIRC) and a Gamecube for €199 didn't exactly help. I have no fucking clue why they opted not to price the Xbox at PS2 level like they did in the US. Maybe they tried to squeeze out higher margins in Europe to make up for the huge US and Japanese subsidies. Well, guess it has backfired cuz if you want to move hardware in Europe you have to operate at lower margins than in the US.
Next point is advertizing. They simply failed to build a brand recognition. It became painfully obvious that MS has no experience in marketing a console system in Europe. Advertizing is pretty much non-existent apart from some ads in PC gaming magazines and of course you can't attract the PC gamer crowd with prices like €69 per game when they are used to €45 game prices.
And don't even get me started about the Xbox displays in retail stores. Those that haven't been defunct right from the start "showed off" Munch or PGR - Halo was nowhere to be seen. Hell, I bet they could have sold some consoles to the jerk-off gamers like myself if they displayed DOA3 but, alas, no tit advertizing. Damn puritans, no wonder the Aussies are grateful that THEY got the convicts.
Everyone knows you can sell about everything to Germans by slapping a pair of boobs on it. They even sell margarine through tit advertizing, as can be seen here:
http://www.lebenhoch2.de/html/spots/laettah2_big.rm
That MS obviously didn't know it, only adds to the impression of incompetence.
To sum it up:
The Xbox fails because
1. too expensive
2. no tits
3. it's made by MS
So don't get all worked up and paranoid about anti-americanism... that doesn't have anything to do with Xbox doing crappy in Europe.
Dub Scott
28-Sep-2002, 05:49
Amen to that !
Nice post L233
lol @ tits add http://ina-community.com/forums/images/icons/icon2.gif
Steve Dave Part Deux
28-Sep-2002, 09:51
The abortion issue is so hotly contested because it spawned out of lingering resentment harbored by conservatives following their failed attempts to stifle the women's rights movement. It's about control, everything else is smoke and mirrors. Our current administration employs tactics which are strikingly similar to those of the late Harry Houdini. They are able to redirect the attention of millions of run-down fearful citizens with a "war" on something that doesn't exist, and then create an entire department whose sole purpose is to screen their actions from public scutiny. They repeatedly violate the freedom of information act in the name of national security, while they declare war against a man who has not only been their loyal business partner for the better part of two decades but is also no more a threat to the people of this country than myself.
More info on our collapsing biological and chemical weapon infrastructure when more and more people start getting sick, and on page D 30 of the New York Times there will be a 3 sentence blurb about a government investigation of a possible public health hazzard that is "under control", and "no immediate threat".
L233 summed it up nicely. That's what a decent public education system will get you.
Magnum PI
28-Sep-2002, 10:13
what do american ppl know about anti-americanism in europe ? don't believe all you read in the papers.
here in france there isn't much anti-americanism..
eventually i know a few ppl that are anti-american but most of them are old enough that they aren't concerned by the videogames...
american culture is very important for the young adults. most of them don't like the bush administration because of its policy (kyoto, irak..) but they eat hamburgers, wear nike shoes, listen to american music, watch the american blockbusters.. how could they qualify as anti-american ?
sorry if it hurts you ego but most people don't care about being pro-american or anti-american, or envying american.. we just live our europeans lives, taking parts of american culture that we like..
and if we do not agree with america going to war against irak it just means we don't agree with the bush administration, not that we are anti-american. (two very different things).
the alleged anti-americanism of europeans doesn't prevent the big success of american culture, movies, food, clothes, computers, software.. why should it prevent success of xbox ?
anti-americanism is just a *poor* excuse for low sales of xbox here.
and bush administration wants you to believe most of europe don't agree with it's policy only because of anti-americanism but it's false. it's just that we believe bush junior is doing baaad things.
Same goes for Canada.
We hate Bush as much as everyone, but we're faaaaar from anti-american. There are aspects of American culture that we strongly dislike (Gun policy for one), but as a whole, we simply see the US as our misguided brother to the south.
And when push comes to shove, I think the average (non-"new Canadian") would much rather buy American than Japanese. But then again, the majority of Toronto is Asian (fact), so you never know ;)
zurich
I really don't care how the Europeans feel about the US. I see them as hypocrits.
Europe has a long history of genocide, murder, strongarming, etc. All one has to do is look at the history of south america and india to know that much. No one country in this world is innocent.
Nobody here (were I live) dislikes America because of anything you've just mentioned. To be honest nobody here really dislikes America. Although allot of things about America can be a bit of an annoyance. I'd say I'm about as bad as it gets in that respect. But then I love allot of things from American (the Simpsons is THE most consistently entertaining and hilerious show ever created IMO) and certainly have no problem liking American people. I respect some American people on this forum a great deal. Most of the things that annoy me about the U.S is due to the ignorance of other countries and cultures in the U.S. This comment shows allot of ignorance of other countries IMO:
I really couldn't stand to live under socialism as it inhibits growth of buisness/economy/GNP/personal freedoms.
You think that the U.S, the "land of the free" as you all like to call it, is so much more free then allot of the rest of the world? I suppose you think no'one else even has freedom of speech in the rest of the world?
Anti-American bias is definitely out there, but it's certainly understandable. Everyone is always going to hate the greatest, most powerful, wealthiest nation. It's mostly jealousy.
This is the picture we have of the U.S in general.. people that are so far up there own arse about there own country and how wonderful it is that they can't see past it. Don't blame us for viewing the U.S in general that way though. Because it comes from your own TV shows and your countries actions as well as comments like the one you just made. The greatest nation on earth, greatest in what way exactly?
Overall though nobody here cares about being anti-american or pro-american. As the U.S seems to forget rather often we do not live in the U.S, the U.S is not the whole world. And if you really think that you have it so much better in the U.S then, for instance, I have it in England, to the point were I'd even think about being jealous, then your sadely mistaken.
marconelly!
28-Sep-2002, 17:06
We hate Bush as much as everyone, but we're faaaaar from anti-american.
Actually, I know quite a few Canadians that are a bit anti-american, and they don't even mind admitting that freely :\ (I live in canada now, btw, used to live in Europe for quite a bit)
It really depends from person-to-person, I'm sure european governments are not anti-american in any way, but I can personally confirm there's quite a lot of dislike for America with many people I know there. Again, I think general populace doesn't think either way and have no problems with anything american.
what do american ppl know about anti-americanism in europe ? don't believe all you read in the papers.
here in france there isn't much anti-americanism..
I recently saw a show regarding this and it specifically mentioned France. They cited one poll that asked, "Who is France's Enemy?". Supposedly 33% said the USA was.
Then the show went on to talk about Thierry's (forgot last name and may have misspelled the first one) book on how 9-11 was a plot from the US' own government.
what do american ppl know about anti-americanism in europe ? don't believe all you read in the papers.
here in france there isn't much anti-americanism..
I recently saw a show regarding this and it specifically mentioned France. They cited one poll that asked, "Who is France's Enemy?". Supposedly 33% said the USA was.
and 90% of the "jerry springer show" public think that the earth is flat and xfiles is a documentary about the FBI. ;)
when citing poll, you should always describe the polled population.
Johnny Awesome
28-Sep-2002, 19:02
I'm not going to debate these issues here, but my views (I'm Canadian):
1. Conservative, economically, but not socially.
2. Don't mind the Bush Administration.
3. Agree with attacking Iraq.
4. Abortion should be limited.
6. Drugs should be legalized.
5. Think all issues are worthy of debate.
There is no such thing as "the Canadian view" or the "European view". Everyone is different. People on this thread throwing around unsavory comments should try a different approach for communicating their ideas.
Magnum PI
29-Sep-2002, 00:23
I recently saw a show regarding this and it specifically mentioned France. They cited one poll that asked, "Who is France's Enemy?". Supposedly 33% said the USA was.
pure BS
Then the show went on to talk about Thierry's (forgot last name and may have misspelled the first one) book on how 9-11 was a plot from the US' own government.
thierry messian..
his book made a scandal here, and there was a lot of negative reactions to it, and few supporters if any.
this guy is as representative of french ppl as a KKK leader is representative of american ppl...
and what the conspirationists views of one specific individual have to do with nation-wide anti-americanism ?
what's next ? we don't play american football therefore we're anti-american ?
Then the show went on to talk about Thierry's (forgot last name and may have misspelled the first one) book on how 9-11 was a plot from the US' own government.
Do you know what that book was called? I wouldn't put it past the CIA to orchestrate such a thing, especially after realizing that the CIA actually benefit the most from the WTC attacks. Naturally, books like that aren't exactly advertized in America (that would be unpatriotic).
Magnum,
Don't get me wrong, I didn't just believe it because it was on TV. Heck, my friend who worked in Paris for a few years would have mentioned such an Anti-American slant if one pervaded French society. I just remembered the book and the 'interesting' theory behind it.
Eminem, where are you from?
Ty
L233, I don't know where you get your information about the conservative media, they are more interested in personal-freedoms rather than control. Liberal media on the other hand has no concern for personal freedoms and is looking for more control (they want to distribute wealth among Americans thru taxes and Social Security). And yes, distributing wealth among a population is in fact Socialism ;)
I read both conservative, and liberal media. In liberal media, they consider those who are concerned with their privacy as "privacy groups." Everyone I talk to here would be in this "privacy group."
The conservative media you refer to is what takes place in the KKK, which is not conservative at all.
I can agree with you on the Bush administration; it's a joke. Clinton was even worse though, bombing medicinal plants, attackin Iraq on a whim :(
Now to the topic:
It will be near impossible to obtain success in Japan. They have always made awesome video games, and some aren't willing to pick up an American console, sporting mostly American developed games. New or different isn't always good. Europe is, and has always been shaky ground for console gaming.
Magnum PI
30-Sep-2002, 08:51
i think the fact xbox is an american product played against it in europe.
not because of anti-americanism of something like that.
juste because that in the minds of a lot of consoles players, console gaming is a japanese thing.
and microsoft is strongly associated with the PC (because of microsoft other activities and similarities b/w xbox and PC), and as much console ppl have an anti-PC bias it doesn't help either.
Magnum PI
30-Sep-2002, 09:28
Magnum,
Don't get me wrong, I didn't just believe it because it was on TV. Heck, my friend who worked in Paris for a few years would have mentioned such an Anti-American slant if one pervaded French society. I just remembered the book and the 'interesting' theory behind it.
but what does your friend consider anti-american slant ?
did he see american flags burn ?
was he beaten by a furious anti-american crowd ?
did he have to make ppl believe he was british in order to remain in one piece ?
perhaps do he consider that not to agree with the american administration and its energy and (non-)environmental policy, middle-east policy, rearming plans is anti-americanism ? in this case i don't agree with his definition.
i never saw ppl show hate towards people of USA.
but there is much hate against bush junior.
JF_Aidan_Pryde
30-Sep-2002, 14:45
Anti-American bias is definitely out there, but it's certainly understandable. Everyone is always going to hate the greatest, most powerful, wealthiest nation. It's mostly jealousy.
*Everyone*, *Always*
It's these choice of words which make people think your post is utterly worthless.
Magnum,
I meant that my friend WOULD have mentioned such a sentiment IF one actually existed. Ergo, as he did NOT mention such a thing, then he never really encountered it.
Magnum PI
30-Sep-2002, 20:46
Magnum,
I meant that my friend WOULD have mentioned such a sentiment IF one actually existed. Ergo, as he did NOT mention such a thing, then he never really encountered it.
:o
sorry, i promise to read you better the next time :roll:
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