mckmas8808
Legend
http://www.ps3focus.com/archives/176http://www.ga-forum.com/showthread.php?t=80738
Guys is this Ken's crazy talk or is this guy on to something?
Discuss
Ken Kutaragi:" I can produce the PS3 anytime"
- Thread starter mckmas8808
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http://www.ps3focus.com/archives/176http://www.ga-forum.com/showthread.php?t=80738
Guys is this Ken's crazy talk or is this guy on to something?
Discuss
I think it's pretty arguable what Microsoft failed or succeeded at. If it's the claim(s) back in 2001 that they'd become the market leader, I suppose he was right after all. 
Also, I'm not quite sure why you would actually reply something like that given it doesn't have anything to do with the bolded quote. I'm sure for someone in his position, he'd know what he can do and what he can't (as opposed to commenting on another companies claim).
Regardless though - I wouldn't read too much into his comments. I think he's rather enjoying playing the competition and the media coming across as very confident and implying that everything is proceeding to [their] plan. Can't blame him, after all, everyone is basically wondering what's up with PS3.
Also, I'm not quite sure why you would actually reply something like that given it doesn't have anything to do with the bolded quote. I'm sure for someone in his position, he'd know what he can do and what he can't (as opposed to commenting on another companies claim).
Regardless though - I wouldn't read too much into his comments. I think he's rather enjoying playing the competition and the media coming across as very confident and implying that everything is proceeding to [their] plan. Can't blame him, after all, everyone is basically wondering what's up with PS3.
mckmas8808 said:
The source article is http://pcweb.mycom.co.jp/articles/2006/01/10/ces8/index.html about the BDA press conference at CES 2006.
The "others" in this quote are the AACS standardization comittee. I have no idea why it's taken as "Kutaragi challenged the PS3’s competitors".
mckmas8808
Legend
one said:
Damn good point 'one'. I didn't think of that.
Wouldn't it still seems the most pertinent things we can draw from that quote is that KK believes he can produce the PS3 anytime?
I suppose this could have two meanings...
1) He can launch the PS3 anytime
2) When the PS3 is launched is up to him and not the BDA.
I'd like it to be 1 as that would be news and on top of that good news.
I suppose this could have two meanings...
1) He can launch the PS3 anytime
2) When the PS3 is launched is up to him and not the BDA.
I'd like it to be 1 as that would be news and on top of that good news.
Nesh said:
As Phil said, there's plenty of room to argue about that.
MS has probably never wanted to make it profitable in its first cycle, they knew that the opposition would be too heavy for that. Their userbase is as big as the Gamecube's, so it was a lot of bad hardware deals that caused the Xbox to produce a loss. It was a choice between cost and time to market - and they decided to try to catch up to the PS2.
They've nevertheless succeeded in setting up a brand, several good franchises and first party developers, and so on. Whereas Kutaragi predicted that they'd downright flop with the Xbox and leave the market...
mckmas8808
Legend
Yep, Ken's prediction about the Xbox brand is just as bad as Steve Ballmer thinking they can beat Sony next-generation.
Laa-Yosh said:
The Xbox Was a $4 Billion Charity
Will The Xbox 360 Be Any Different?
Looking at the videogame industry, and Microsoft’s moves in particular, it’s easy to forget that the goal of this business, any business, is to actually make money.
Everyone feels that the Xbox was a success. They took second place in the United States from Nintendo (although made nearly zero impact on the Japanese market). While Sony made a fortune on it’s huge user base and Nintendo made a fortune on it’s Gameboy empire, Microsoft lost $4 Billion on Xbox. To state it another way, while Nintendo and Sony made the money it takes to sustain and grow a business, Microsoft lost roughly 2.7 million dollars a day for each day it was on the market, from it’s launch to the launch of it’s successor.
It’s fair to say that Xbox wasn’t a business. It was a charity. How can anyone say with a straight face that the Xbox was a success when it dug a four billion dollar hole in the ground.
The question isn’t whether the Xbox 360 will sell (it will) or whether Halo 3 will be amazing (absolutely). What customers and investors should be asking is can Xbox 360 actually turn a profit? Can the Xbox 360 make a single dime? Should the Xbox 360 even be considered profitable until it has made up it’s unit’s outstanding four billion dollar loss?
Can the Xbox 360 answer the four billion dollar question? The real test starts now.
mckmas8808
Legend
Good post Ben-Nice, but only investers will be asking if the Xbox 360 will be profitable. Consumers really don't care. But I see what you are saying.
Joe DeFuria
Legend
Ben-Nice said:
Um, it's called an investment.
Whether or not one thinks the XBox brand presence, MS foot in the living room, strong developer support, etc is worth a 4 billion dollar investment is a valid question of course.
mckmas8808
Legend
Joe DeFuria said:
He's asking can they make the money back. I think it's a valid question. And why is it when people say Sony will release the PS3 for $349-$399 some people go bonkers and can't understand how it's possible.
But Joe you're right it is an investment and I hope Sony invests in the PS3 and release it under $400.
As others are alluding, it's more than just the short-term bottom line. I've said before that if the Xbox was produced by any other company, it'd be long dead by now. But it is entirely debatable that what Microsoft did wasn't about a console, but about a brand. And my understanding is that the Xbox brand is incredibly powerful.Ben-Nice said:
Your points about the Xbox 360, on the other hand, seem off base given the analysis about how the first Xbox was designed versus how the Xbox 360 was done. The 360 is designed to have a lowering cost over its lifetime where the first one was not explicitly done that way and designed for speed of delivery.
It is not about the X360's profit either. MS does not make business plans for 4 years...
Their two main options with the Xbox were to either release as soon as possible, or to make a profitable console. The second option would've meant a spring 2002 start, and thus an autumn 2006 X360 start. They would have had to accept, back then in 1999-2000, to be an underdog to PS3 as well. But it is not in the nature of Microsoft to aim for second place, they want to dominate the market, no matter how long it takes them; because once they're the leader, the money will start to flow.
So they decided to come out with the first Xbox as close to the PS2 as possible, and release the next console before the PS3. The plan is to take the lead from Sony in the third generation. It was obvious that it will take a huge investment, but if any company has money to burn than it's MS.
Now it's also totally obvious that they were not prepared to pay this much for the first Xbox; Intel and Nvidia bit them quite hard in the long run and I'm sure that heads were falling in Redmond. But they have not changed their plans, and so all that's left for us is to sit back and enjoy the show... or worry about how much it will cost us in the end.
Their two main options with the Xbox were to either release as soon as possible, or to make a profitable console. The second option would've meant a spring 2002 start, and thus an autumn 2006 X360 start. They would have had to accept, back then in 1999-2000, to be an underdog to PS3 as well. But it is not in the nature of Microsoft to aim for second place, they want to dominate the market, no matter how long it takes them; because once they're the leader, the money will start to flow.
So they decided to come out with the first Xbox as close to the PS2 as possible, and release the next console before the PS3. The plan is to take the lead from Sony in the third generation. It was obvious that it will take a huge investment, but if any company has money to burn than it's MS.
Now it's also totally obvious that they were not prepared to pay this much for the first Xbox; Intel and Nvidia bit them quite hard in the long run and I'm sure that heads were falling in Redmond. But they have not changed their plans, and so all that's left for us is to sit back and enjoy the show... or worry about how much it will cost us in the end.
Joe DeFuria
Legend
mckmas8808 said:
No, he said X-Box cna't be considered anything but a failure.
I said that whether or not they can make their investment pay off is a valid question.
Unless you think someone can enter the video game / entertainment box in a living room market without a significan investment in both money and time, it's foolish to call the original x-box a failure.
seismologist
Regular
Sony should get too complacent. They really need to get moving with PS3 promotion. Luckily the Xbox 360 still can't be found in stores which should help buy them some time.
