View Full Version : Xbox (360) Is Nexus of Entertainment Strategy
http://news.yahoo.com/s/ap/20051112/ap_on_hi_te/microsoft_s_xbox_ambition
"First and foremost, Xbox 360 is a game machine, and so is anybody going to go out and buy an Xbox 360 if they're not a gamer because it's got multimedia capability? No," said Van Baker, a research vice president with Gartner Inc.
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As always analysts don't have a clue. Anyway a good read.
Inane_Dork
13-Nov-2005, 06:45
The 51-34-15 split doesn't sound accurate to me.
The 51-34-15 split doesn't sound accurate to me.
How can it be with 80+ , 20m , 18m ?
The market seems to be about 118m . 20m is not 34% of that
"We still think in a way the console isn't the way to make money," Bach said. But he added that the company also thinks it's important not to lose as much money as it did when it rushed the first Xbox to market in the face of intense competition from Sony Corp (NYSE:SNE - news).'s PlayStation 2.:roll:
:roll: its not .
THe controllers , games , live , marketplace , memory cards , wires , head sets and other stuff is the way to make money :-)
I think they are going to sell xbox 360 at a loss all gen
"We still think in a way the console isn't the way to make money," Bach said. But he added that the company also thinks it's important not to lose as much money as it did when it rushed the first Xbox to market in the face of intense competition from Sony Corp (NYSE:SNE - news).'s PlayStation 2.
:roll:
Of course it's not...
MS are slowly expanding their Windows/software dominance into the living room beginning with Xbox. Pretty soon my refrigerator, toilet and shower will run under a Windows OS but lets just hope the firewall will be solid enough to keep the viruses at bay :)
"I am watching you through a camera" - Billy Gates
Hardknock
13-Nov-2005, 10:40
The 51-34-15 split doesn't sound accurate to me.
Market isn't only consoles sold.
in the issue of Red Herring magazine I got today (Allard on the cover) They claimed that MS has 17% of the WW market.
Pretty soon my refrigerator, toilet and shower will run under a Windows OS
please don't invite me for diner...
The 51-34-15 split doesn't sound accurate to me.
Yes , if we are talking for cons.sales you are right . I found this intresting link:
http://www.gametunnel.com/html/section-viewarticle-126.html
5th Generation:
Dreamcast----->10.600.000------>7%
Playstation2---->91.390.000----->64%
Xbox------------>21.900.000----->15%
GameCube----->18.800.000----->13%
Total Sales : 142.690.000
<nu>faust
13-Nov-2005, 13:40
How can it be with 80+ , 20m , 18m ?
The market seems to be about 118m . 20m is not 34% of that
from what i know it's more like 90, 23 , 18 . The "worldwide market for the most recently available consoles" sentence is open to different interpretations.....maybe he was only talking about the market 2005(we all know that cube sales took a dive lately,especially in us) or maybe those number represent the current shares that systems have on retailer's stocks or something.
Joe DeFuria
13-Nov-2005, 14:16
http://news.yahoo.com/s/ap/20051112/ap_on_hi_te/microsoft_s_xbox_ambition
"First and foremost, Xbox 360 is a game machine, and so is anybody going to go out and buy an Xbox 360 if they're not a gamer because it's got multimedia capability? No," said Van Baker, a research vice president with Gartner Inc.
****
As always analysts don't have a clue. Anyway a good read.
What is clueless about that particular statement?
from what i know it's more like 90, 23 , 18
I don't think so no, its more like 85, 22, 19 (PS2/XBx/GC)
mckmas8808
13-Nov-2005, 15:41
I don't think so no, its more like 85, 22, 19 (PS2/XBx/GC)
That's most definitely is not the number. No not even close. Sony has past the 90 million mark months ago. Go to Sony website you'll see.
mckmas8808
13-Nov-2005, 15:42
its not .
THe controllers , games , live , marketplace , memory cards , wires , head sets and other stuff is the way to make money :-)
I think they are going to sell xbox 360 at a loss all gen
Tell Nintendo and Sony that you can't good money of selling consoles and they will laugh in your face. http://www.beyond3d.com/forum/images/icons/icon14.gif
That's most definitely is not the number. No not even close. Sony has past the 90 million mark months ago. Go to Sony website you'll see.
I'm sure they've shipped that many (Sony always quotes shipped), doesn't mean they're all sold yet. That's where I got the 85 million estimate from, I might still be wrong, its just my estimate.
That's most definitely is not the number. No not even close. Sony has past the 90 million mark months ago. Go to Sony website you'll see.
I see this here:
http://www.gamasutra.com/php-bin/news_index.php?story=6975
(http://www.gamasutra.com/php-bin/news_index.php?story=6975)
But it only says Sony has shipped 96 million. This is not market share...
Also, you may want to word this slightly different, to be less "troll-ful":
Tell Nintendo and Sony that you can't good money of selling consoles and they will laugh in your face.
Something more like:
"Nintendo and Sony have been able to turn a profit off their consoles this past generation, so there's no reason to believe you have to lose money on consoles."
.Sis
mckmas8808
13-Nov-2005, 16:05
I see this here:
http://www.gamasutra.com/php-bin/news_index.php?story=6975
(http://www.gamasutra.com/php-bin/news_index.php?story=6975)
But it only says Sony has shipped 96 million. This is not market share...
.Sis
Does MS and Nintendo always use sales and not shipped numbers?http://community.allhiphop.com/images/smilies/fragend013.gif
Also, you may want to word this slightly different, to be less "troll-ful":
Something more like:
"Nintendo and Sony have been able to turn a profit off their consoles this past generation, so there's no reason to believe you have to lose money on consoles."
Well yeah that's what I meant. Kinda made me angry when I saw what he said and I just quickly type something up.
Does MS and Nintendo always use sales and not shipped numbers?http://community.allhiphop.com/images/smilies/fragend013.gifWhen you're talking market share, then yes. Usually it'd be based on NPD information, I'd imagine.
Well yeah that's what I meant. Kinda made me angry when I saw what he said and I just quickly type something up.I know what you meant--and agree with the sentiment--I just thought if I was on the receiving end of a comment that roughly equates to "people laugh at your opinion", it'd probably bother me. :smile:
.Sis
What is clueless about that particular statement?
I have seriously been contemplating buying a second Xbox (maybe a core) to use as a Media Center Extender, simply because cost-wise there's only a small premium for the Xbox over a standalone MCX, even though it does a lot more.
.Sis
eDoshin
14-Nov-2005, 04:20
I can't see shipped numbers being all that off from units sold. After all, a retailer will not continue to stockpile consoles if the units are not moving as fast as they are delivered in a somewhat reasonable fashion. Assuming that every unit in the supply chain is counted, then its reasonable to assume that given a certain amount of time, each and every one of these consoles will be sold (and not half a year from now).
Tell Nintendo and Sony that you can't good money of selling consoles and they will laugh in your face. http://www.beyond3d.com/forum/images/icons/icon14.gif
sony lost million off the console .
Just selling a console isn't going to make money mckmas
Selling games and acessorys will .
Shifty Geezer
14-Nov-2005, 09:59
Dunno about that. We don't know how quickly production costs scaled, when PS2 became profitable, how much it was profitable, and whether profits made later in PS2's life offset losses made early in it's life. If costs scaled reasonably Sony have probably been making a profit for the past 3 years, and I imagine overall the hardware has made money rather than lost money.
mckmas8808
14-Nov-2005, 14:21
Dunno about that. We don't know how quickly production costs scaled, when PS2 became profitable, how much it was profitable, and whether profits made later in PS2's life offset losses made early in it's life. If costs scaled reasonably Sony have probably been making a profit for the past 3 years, and I imagine overall the hardware has made money rather than lost money.
yeah I agree Sony has probably made a decent amount of money off of the PS2 hardware. Imagine if Sony is making $3 per PS2 (reasonable amount that I pulled from my), if they were to sell 20 million consoles in one year that would make Sony 60 million dollars. Now this is only an example, but the point still stands since we know that they are making a profit on the PS2 now.
london-boy
14-Nov-2005, 14:36
yeah I agree Sony has probably made a decent amount of money off of the PS2 hardware. Imagine if Sony is making $3 per PS2 (reasonable amount that I pulled from my), if they were to sell 20 million consoles in one year that would make Sony 60 million dollars. Now this is only an example, but the point still stands since we know that they are making a profit on the PS2 now.
60M is not a lot of money. The main point is that they were not losing money anymore on the hardware, not the money they might have made off it.
The main source of income for them is the software and peripherals.
The hardware just needs to be on the positive side. As long as it stops making a loss, they're happy and have nothing to worry about.
They can make lots of profits off software, peripherals and other hardware (TVs and such).
mckmas8808
14-Nov-2005, 14:55
60M is not a lot of money. The main point is that they were not losing money anymore on the hardware, not the money they might have made off it.
The main source of income for them is the software and peripherals.
The hardware just needs to be on the positive side. As long as it stops making a loss, they're happy and have nothing to worry about.
They can make lots of profits off software, peripherals and other hardware (TVs and such).
Well yeah that was my point. I was just showing that money can be made. This last quarter SCE had around 70 million dollars in operating income. If my made up $60 million were true (or lets say $15 million per quarter) then that would have accounted for a decent amount of income.
london-boy
14-Nov-2005, 14:56
Well yeah that was my point. I was just showing that money can be made. This last quarter SCE had around 70 million dollars in operating income. If my made up $60 million were true (or lets say $15 million per quarter) then that would have accounted for a decent amount of income.
... 15M for a company as big as Sony is not an income. It's spare change. :wink:
mckmas8808
14-Nov-2005, 14:58
... 15M for a company as big as Sony is not an income. It's spare change. :wink:
Yeah I know, I'm saying that it's better than nothing. And it's worth mentioning that money can be made off of console hardware sales. By saying money can't be made, then that person would be telling a lie.
Shifty Geezer
14-Nov-2005, 15:14
... 15M for a company as big as Sony is not an income. It's spare change. :wink:More important how much money PS2 might have made is the point of the post, responding to jvd's assertion
sony lost million off the consoleIf Sony can make $20 per PS2, which doesn't seem out of the question with the shrinkage (according to my pie-in-the-sky maths principles) that's $400 million last year on hardware. Hence jvd's likely wrong in thinking Sony lost millions off the console hardware and it's only through software and peripherals that money is made.
mckmas8808
14-Nov-2005, 15:21
If Sony can make $20 per PS2, which doesn't seem out of the question with the shrinkage (according to my pie-in-the-sky maths principles) that's $400 million last year on hardware. Hence jvd's likely wrong in thinking Sony lost millions off the console hardware and it's only through software and peripherals that money is made.
Which is exactly what my original point was. Whew! Thanks Shifty. http://www.beyond3d.com/forum/images/icons/icon14.gif
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