And last but not least... MS financials

-tkf- said:
Acert93 said:
That over simplifies it.

Of course it does, but the sheer amount of money that Microsoft is making based on a monopoly can't be compared to either Sega, Sony, Nintendo or whatever other big company. The companies Microsoft is competing with doesn't print their own money. MS is pretty close to be doing just that.

Actually the XBOX is a classic example of MS "strategy", version 1.0 is never good. But MS is used to burn money up going from 1.0 to 3.11.

I would much rather see a MS diveded into a OS company and a Software firm. Hell even a hardware firm. And then a PC based game world against a console based.

I think they can be compared. MS status as an OS/Software maker and having money was no guarantee of success. The GAMES are what make a console successful, not how many OS sales you have. MS did not go out and by EA, Ubi, Square-Enix, Activision, Capcom, Namco, etc... and leverage themselves that way. They instead bought smaller developers (and the AWOL Rare which Nintendo did not want anyhow) and built a solid peice of HW which through misfortunate events cost them more money than they anticipated.

Nintendo is a handheld monopoly with 90% of the market. Should we break them up so their handhelds cannot keep the console afloat? Apple is beginning to monopolize the MP3 market and is leveraging that success to get bigger marketshare with the mac mini.

You can make these types of arguements all day long. You can argue how it was unfair for Sony to move in on Nintendo and Sega. The fact is a lot of people hate success and the leveraging of that success.

As for the Xbox not being good, I disagree. Do you own one? The fact MS has now surpasses Nintendo in console sales has to do with the fact that more people want their product. Xbox is not a bad product for consumers at all. It is not a buggy OS release or a feature poor Office release. It is a top quality console. Its only sin had nothing to do with a bad product, but bad deals that prevented it to shrink down (one of the main reasons I expect the Xenon in 2005).

MS has lost a lot of money due to 3 issues: (1) A bad chip deal with nVidia (2) expensive off the shelf items like a PIII CPU and (3) an expensive HDD that could not be shrunk easily.

These mistakes happen (btw, Sony lost a lot of money with the PS and PS2 launches; not 3B, but a lot... but they also made a lot later... but note 1st Q of 2004 they lost ~25M in their games division). MS just happen to be a big one... but also a calculated one (it allowed them to bridge from the PC for developers... many of you hate this, 20M like it--to each their own). MS losing 3B is like Nintendo losing 500M.

Obviously people have different opinions on these issues. I personally think it is a joke that MS is being told they cannot include WMP in Windows yet how long has Apple had Quicktime? People always want to see the leader fall. Just like many here want to see Sony fail; and Sony advocates are raving mad at anyone who points out anything negative about Sony. But none of this relates to the consoles. If Xbox was not losing money due to expensive parts people would still be complaining.

Basically people want MS to give away all their IP, sit still and do nothing, not move into new markets, and give customers less for their money so we can call it "competition". Not going to happen and it should not happen. As for the consoles... the living room is the future. With the wall that Processor tech has hit (should we not be at 8GHz now? How long have 3GHz P4s been out now?) the market is moving toward more powerful all in one devices used for every day tasks. Sony and MS are both fighting for this and it is an expensive battle.

But neither can afford to lose it either. Sony has been living on the PS for a while. If they just stuck to the "console only" market they would lose a ton of marketshare to these convergance devices. MS cannot afford to lose out on the evolution of the PC, nor should they.

I will end my rambling. Everyone has a different perspective on this. I know a lot of you hate MS and everything they stand for (just as many hate Sony and everything they stand for)--I hate neither. But we probably should leave the OS/MS business practices for another time.
 
Acert93 said:
Do you own one?

Just sold it, between WOW on the PC and GT4 soon coming on the PS2 there wasn't any reason to annoy the GF with it anymore.

And you can rant all you want, MS is in a unique position with the kind of money they have. How can you compare their monopoly with Nintendos handheld marketshare? How much money and time would it take for a company to build up a marketshare like Microsofts in the PC world? Well yeah, it's pretty much impossible, there isn't any company in the world that could do it. And yes i understand why MS is doing what it does.
 
Didn't Nintendo at one time have a near-monopoly in console market, the position that they readily abused?
 
having other cashcows and massive amounts of money to spend can help microsoft in a lot of way:

* selling consoles at a cost that other manufacturer couldn't afford it give them a competitive advantage. what if the xbox was sold with a benefit/loss per unit comparable to those of sony or nintendo ? either it would have even been overpriced, either its capabilities considerably reduced.

* buying games companies or game exclusivities or even game ports.

* marketing power !

how can someone seriously say financial power isn't an important factor ?

and it's position as provider of the OS which pc gamer uses helps also: as a mean of pressure on games developper... imagine a company like EA not supporting xbox, it wouldn't help their PC videogames business... see what i mean ?
 
Magnum PI said:
having other cashcows and massive amounts of money to spend can help microsoft in a lot of way:

* selling consoles at a cost that other manufacturer couldn't afford it give them a competitive advantage. what if the xbox was sold with a benefit/loss per unit comparable to those of sony or nintendo ? either it would have even been overpriced, either its capabilities considerably reduced.

Sony is part of the DVD consortium (sp?) so they got away without paying any licensing fees on the PS2. MS had to. Is that fair? Of course it is. Sony also is an electronics company so they are able to do things neither Nintendo or MS can do. Look at CELL. If MS or Nintendo use a CELL processor they will get a ton of licensing fees which Sony does not have to pay as part of STI. Tough breaks, but that is life.

Dumping is wrong, but MS has not been accused of dumping that I am aware of. Sony was losing a pretty peny with the PS2 at launch also. The difference? Sony sold more PS2s (and thus more games) AND the PS2's parts went down in price and finally those chips have shrunk down to the point that they are more affordable. MS has not been able to do these things. But make no mistake: Sony lost money with the PS launch and paid for this with profits from Walkmen that people had biyght and lost a lot of money with the PS2 launch that Sony had made with the PS. Nintendo is using their handheld market to keep the GCN afloat in some ways (and as someone pointed out the other day, if Nintendo only breaks even on the console that is good enough for them because it keeps their name out there and gives them legitimacy and shelf space at stores that help their handhelds where they make a killing).

We would not even be having these discussions if Xbox had a better design (you can thank nVidia for that). And I am sure we are going to be hearing this for 3 more years until MS no longer loses money on the Xenon hardware. :cry:

* buying games companies or game exclusivities or even game ports.

Sony has been the most aggressive company about exclusives. I actually wish Nintendo and MS would do more of this because I see this as their biggest weakness. Of course Sony's marketshare makes it easier to convince an exclusive deal. An exclusive deal with a company with 80M customers is better than an exclusive with a company with 20M customers.

* marketing power !

Everyone has marketing. Actually, I would say Sony is the best marketer right now. Sega was pretty good in the day, but Sony kicked but with the PS marketing and did a good job with the PS2. You need money to market, but you also need a good angle that dovetails with the design aspect of your product and hits the intended audiance well.

And Sony, with 80M+ PS in place and 80M PS2s in place is in the best marketing position possible. I do not know what MS and Sony spend on marketing, but I would be surprised if MS has continually spent 2x as much as Sony.

how can someone seriously say financial power isn't an important factor ?

I am not aware that anyone has stated that financial power is an important factor. The question is whether it is wrong to use it. I see no way that Xbox customers, video gamers in general, gave developers, or console makers have been hurt by MS in an unjust way.

and it's position as provider of the OS which pc gamer uses helps also: as a mean of pressure on games developper... imagine a company like EA not supporting xbox, it wouldn't help their PC videogames business... see what i mean ?

Of course MS using a DX 8.0/8.1 part and a x86 CPU helps them--that is the point of the Xbox! As for pressure from MS, what are you talking about? EA held out on Xbox Live (I think ESPN Football was the only reason they changed their tune). MS makes the OS, but ANYONE can make a game for the Windows OS. MS is not some Windows overlord that tells you what you can and cannot put on your PC.

If EA did not support the Xbox they could still put their games on the PC with no ill effect. I have no idea why you believe that if a company does not support the Xbox their PC videogames would suffer. Yes, there are benefits (ease of porting), but I know of absolutely no negative consequences from MS if you support the PS2 and the PC but not the Xbox.
 
Acert93 said:
Sony is part of the DVD consortium (sp?) so they got away without paying any licensing fees on the PS2. MS had to. Is that fair? Of course it is.
Don't talk out of your ass - Sony is paying for MPEG-2 patent pool royalties, for Sony is merely one of owners of the related patents. How can they use MPEG-2 without paying other owners?

http://www.mpegla.com/m2/
MPEG LA's MPEG-2 Patent Portfolio License has grown to include more than 640 patents (128 patent families plus their worldwide counterparts) owned by Alcatel, Canon, Inc., Columbia University, France Télécom (CNET), Fujitsu, General Electric Capital Corporation, General Instrument Corp., GE Technology Development, Inc., Hitachi, Ltd., KDDI Corporation (KDDI), LG Electronics Inc., Matsushita, Mitsubishi, Nippon Telegraph and Telephone Corporation (NTT), Philips, Robert Bosch GmbH, Samsung, Sanyo Electric Co., Ltd., Scientific Atlanta, Sharp, Sony, Thomson Licensing S.A., Toshiba, and Victor Company of Japan, Limited (JVC). MPEG LA's goal is to provide worldwide access to as much of MPEG-2's essential intellectual property as possible; new Licensors and essential patents may be added at no additional royalty during the current term.
 
Acert93 said:
Obviously people have different opinions on these issues. I personally think it is a joke that MS is being told they cannot include WMP in Windows
I agree. I want a PC that can go online and play media. Why should I have to go looking for separate players and browsers? Why aren't I allowed to take advantage of a package? It'd be like a car manufacturer not being allowed to include an engine and gearbox and you have to 'shop around' for those!

MS do get a raw deal on occassions (but then so do Sony if internet Forums are anything to go by!). In this argument though, MS do have an unfair advantage...

You can make these types of arguements all day long. You can argue how it was unfair for Sony to move in on Nintendo and Sega. The fact is a lot of people hate success and the leveraging of that success.
It's not about MS taking advantage of being in a strong financial position, but basically being unlimited. Every other take on a market, PlayStation or what-have-you, the developers have taken risks. They've taken what portion of their income they could afford to try and make an impact in hopes of the big returns; the key point beng it was a RISK and they had limited resources. Many of these risk-takers failed.

MS take no risks. They can afford to lose 5 billion. They can pick a market and keep going without fear of what would happen if they don't succeed; something no other company can do.

As such, every other console attempt could only last so long based on compan's resources. After a while without financial success, those consoles fold. EVERY console NEEDs to find financial success eventually or it's pulled as no company can sustain it indefinitely. Except XBox and MS, who unlike other console companies have pretty much no financial restraints.

I don't begrudge success, nor using past success to fund new endevours - if no-one did that we'd never get anywhere! I don't even begrudge MS having market share (no skin off my nose)! I DO think it unfair though that every other company has to make decisions, take risks, whereas MS, due to an INSANELY profitable business, doesn't run risks.

If a trained adult sprinter enters an County athletics championship and takes first placein the 100m against 15 year olds, would you think him successful or say "he was obviously going to do well"? If MS had been a little startup (Like Gizmondo) and taking risks, making smart decisions, got where they are, good for them. But as it was it was a dead-gone cert MS'd have managed something impressive sales-wise, but without the 'blood and sweat' of other organisations. That's why I can't see XBox as being a success.

But I guess that's my take, and there's no point flogging this topic any longer!
 
Acert93 said:
Sony is part of the DVD consortium (sp?) so they got away without paying any licensing fees on the PS2. MS had to. Is that fair? Of course it is. Sony also is an electronics company so they are able to do things neither Nintendo or MS can do. Look at CELL. If MS or Nintendo use a CELL processor they will get a ton of licensing fees which Sony does not have to pay as part of STI. Tough breaks, but that is life.

what are the costs of dvd fees ? compared to the per-unit losses of the xbox ?
and don't forget that microsoft had the OS and the APIs xbox already paid-for by their windows customers..

anyway i don"t see your point..


Dumping is wrong, but MS has not been accused of dumping that I am aware of.

i didn't accuse MS of dumping either .. do you know what "dumping" stands for ?

Sony was losing a pretty peny with the PS2 at launch also. The difference? Sony sold more PS2s (and thus more games) AND the PS2's parts went down in price and finally those chips have shrunk down to the point that they are more affordable.

i highly doubt that sony lost a comparable amount per unit than microsoft did, and it didn't last long before playstation became profitable.

and that's a big difference.

neither sony neither nintendo could have the same "at all costs" strategy, they couldn't afford that.

Nintendo is using their handheld market to keep the GCN afloat in some ways (and as someone pointed out the other day, if Nintendo only breaks even on the console that is good enough for them because it keeps their name out there and gives them legitimacy and shelf space at stores that help their handhelds where they make a killing).

we don't know how much profit/losses nintendo makes with GCN and GBA so arguing about it is irrelevant.


Of course MS using a DX 8.0/8.1 part and a x86 CPU helps them--that is the point of the Xbox! As for pressure from MS, what are you talking about? EA held out on Xbox Live (I think ESPN Football was the only reason they changed their tune). MS makes the OS, but ANYONE can make a game for the Windows OS. MS is not some Windows overlord that tells you what you can and cannot put on your PC.

ever heard of "made for windows" program ?

http://www.microsoft.com/winlogo/software/default.mspx

it applies to hardware too.

If EA did not support the Xbox they could still put their games on the PC with no ill effect. I have no idea why you believe that if a company does not support the Xbox their PC videogames would suffer. Yes, there are benefits (ease of porting), but I know of absolutely no negative consequences from MS if you support the PS2 and the PC but not the Xbox.

you expect microsoft to write this in bold on its web frontpage ?
:LOL:
 
I'd say distributors care more about what's going to sell, and if the buyer is happy to pay for logo-free games, said games will keep appearing on shelves.
 
one said:
Acert93 said:
Sony is part of the DVD consortium (sp?) so they got away without paying any licensing fees on the PS2. MS had to. Is that fair? Of course it is.
Don't talk out of your ass - Sony is paying for MPEG-2 patent pool royalties, for Sony is merely one of owners of the related patents. How can they use MPEG-2 without paying other owners?

So let me get this straight: You are saying Sony pays just as much for the DVD player and DVD playback on the PS2 to the DVD Consortium as MS does on the Xbox?
 
There is a rather convoluted set of royalty payments that goes into DVD software and hardware - there was a good breakdown of it a while ago, but I don't know where it is now. However, if those on the consortium who are recieving rotalties don't get special deals on the rest of the royalties then, at the very least they will effectively just be paying themselves back a portion of the overall royalty fees when they sell the hardware.
 
Acert93 said:
one said:
Acert93 said:
Sony is part of the DVD consortium (sp?) so they got away without paying any licensing fees on the PS2. MS had to. Is that fair? Of course it is.
Don't talk out of your ass - Sony is paying for MPEG-2 patent pool royalties, for Sony is merely one of owners of the related patents. How can they use MPEG-2 without paying other owners?

So let me get this straight: You are saying Sony pays just as much for the DVD player and DVD playback on the PS2 to the DVD Consortium as MS does on the Xbox?

I thought MS's DVD license fee was paid when you bought your Xbox DVD remote thing, since it won't play them out of the box AFAIK.
 
i essentially agree with Shifty Geezer.

on the hardware side, microsoft did nothing but use the PC architecture and PC parts.
nothing really innovative or new or somewhat efficient.

on the software side: recycled NT kernel, recycled directx API.

games: halo, which would have been released on PC and macintosh anyway..
a lot of disappointing exclusive content: kabuki warrior, sneakers, kakuto chojin, azurik, blinx, bloodwake, tao feng, nightcaster..
failed promises.. (who said fable ? blinx-revolutionnary-mario-killer,malice...)

the only thing xbox brang to the console gamers outside of the xbox live (we have the same for free on PC) is its superior graphical power, it's the only thing that could be bought..
nothing comparable to what nintendo brought to videogames.

by essence microsoft is not a gaming/entertainment company, they're only trying to diversify their sources of income.
they can succeed in this market and make some profits, but without the spirit.
 
the only thing xbox brang to the console gamers outside of the xbox live (we have the same for free on PC) is its superior graphical power, it's the only thing that could be bought..
nothing comparable to what nintendo brought to videogames.

I can say the only thing hte ps2 brought to console gamers were sequals

There really wasn't much more than 1 or 2 new games that were really good for the ps2 that didn't have a 2 or 3 or even 4 in the tittle
 
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