Business Approach Comparison Sony PS4 and Microsoft Xbox

MS doesn't need to sell any games to make a profit on the console. SONY loses money on each console.
No. Everything we know so far is placing both around the break even point and profit being from games and subscriptions.
 
This is what I'm arguing about:
Not to mention MS is making a nice profit from hardware. They could always price reduce later if they feel they need to.

"We’re looking to break even or low margin at worst" - Yusuf Mehdi

That's around break even.

It's not a nice profit.

It contradicts the claim that MS has the margin necessary to drop the price by $100, because it would be a loss around $100 per console.
 
Break even or small profit at worst.

Also MS doesn't have to drop a full $100 they could drop $30 or $50 if they need to. If they're selling as many as they could build they don't need to drop the price.
 
I think MS made a bold gamble and were right to do so. The future will tell whether that gamble will pay off. The biggest risk is that the TV will lose its center stage to individual devices, and that few people feel the need for a central one that does everything, but excels at little.

But there is also a good chance it will be good enough at a bunch of things to pay off. I think most of the hardcore audience prefer specialist devices that excel at specific tasks. But there may be a large enough audience that wants something that works nice and easy. My wife loves her iPad, and she is a big risk - she does everything on that, watch TV etc. My son (and I) love the big screen, and we are a good opportunity. If MS can make the right games and leverage Kinect in a really cool way, that's a good in. Right now, Sony's Playroom isn't even a proper game, but more successful in capturing his attention. Microsoft needs to do more in this area. It's a long game. In three years, the system can be 299 and have a good ecosystem with games. It may be hard to beat by then, as they have a good head start.
 
I'm not sure whether the price gamble is going to pay off. I've been around the major outlets in my area and there are still XB1's on shelves. I found that to be very surprising as I thought that demand was outstripping supply especially for the Christmas run up.
 
Where I live everyone is sold out of X1s...this includes Best Buy, Target, Walmart, Gamestop.

Which is why I found it surprising that there are still units on shelves. I expect it to be sold out as there is no way that there could be an over supply. So something has happened to basically flatline sales, and price is the only thing I can think of. Of course all that could have changed overnight and all those units are now gone. But it wasn't something I expected.
 
Which is why I found it surprising that there are still units on shelves

Buy them and sell them on ebay, you'll make some easy money that way. They seem to be all but impossible to find around here in LA, so you can definitely make money selling them at auction for thsoe in cities where they are no longer available.
 
Buy them and sell them on ebay, you'll make some easy money that way. They seem to be all but impossible to find around here in LA, so you can definitely make money selling them at auction for thsoe in cities where they are no longer available.

That's actually quite tempting!
 
How would anyone know they are sold out, are you guys running store to store and checking? Does anyone have a day job anymore? :)
 
How would anyone know they are sold out, are you guys running store to store and checking? Does anyone have a day job anymore? :)

Walmart and Best Buy here actually stuck a big sign on their doors. Xbox One Sold Out so I didn't need to go inside to know.
 
How would anyone know they are sold out, are you guys running store to store and checking? Does anyone have a day job anymore? :)

Just by asking other friends that live all over the city. It's not meant to be a scientific measurement, just an estimation.
 
I was at the mall in the middle of Silicon Valley. MS store there had a little cordon to the side outside the doors. There were maybe 10-15 people waiting in line. They were either fulfilling preorders of X1 or maybe people are lining up because they didn't preorder and looking to pick up as supplies came in.

This was Tuesday afternoon, around 3 PM.
 
Sony's Business Approach is going into war mode (at least in the Netherlands)

one8hck6.jpg


Microsoft did this 6 years ago:
x360lovefranc.jpg
 
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