Ken Kutaragi:" I can produce the PS3 anytime"
- Thread starter mckmas8808
- Start date
Its not always purely about business, you can bet there's plenty of pride involved. Still even from a business point of view its sometimes best to just try to make the best of the situation. Because if you cancel the project then all of the money spent on it is then completely wasted.
Powderkeg
Putting $2 billion into a project doesn't equal losing $2 billion. I think it was pretty clear that when I said "investment" I was talking in the way Joe used the word (to describe MS's losses not there actual total investment). Also the $2 billion MS put into XBox Live was for all aspects of the service, advertising, game developement ect. There would be quite a bit of overlap there, particularly for advertising. Every XBox advert was focused on XBox Live once the service was in full swing, so for all we know all XBox advertising from that time may have been included in that outlay.
Then again I'm talking about the losses MS planned before XBox even launched (there initial plan), well before Live ever came along.
Bobbler
The article came from Forbes and stated that the loss was $4 billion. Though that looks quite generous to me considering the losses we've seen for MS's Home and Entertainment division over the last 4-5 years (from MS's financial reports).
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Well here is another view of the situation:
http://news.teamxbox.com/xbox/10062/Analysts-PlayStation-3-Release-Date-in-Question/
http://news.teamxbox.com/xbox/10062/Analysts-PlayStation-3-Release-Date-in-Question/
mckmas8808
Legend
zRifle1z said:
That's got to be the biggest WORST CASE scenario that I've ever seen when it comes to the PS3!
Europe March 2007?
scooby_dooby
Legend
mckmas8808 said:That's got to be the biggest WORST CASE scenario that I've ever seen when it comes to the PS3!
Europe March 2007?
What were you expecting?
Since last E3 I've always expected an early 2007 europe launch.
Probably a late spring japanese launch, then a winter NA launch, then EU sometime early 2007. What's so worst case about that?
Joe DeFuria
Legend
mckmas8808 said:That's got to be the biggest WORST CASE scenario that I've ever seen when it comes to the PS3!
You must not have a very good imagination then.
It looks to me like it's slightly on the pessimistic side of neutral at this point.
A "nuetral" outlook, IMO, is:
Japan in May/June
U.S. Mid to Late summer
Europe by late fall / X-Mas season.
They analysts they are speaking of are basically pushing back everything one season.
mckmas8808 said:That's got to be the biggest WORST CASE scenario that I've ever seen when it comes to the PS3!
Europe March 2007?
I think you need to get an imagination if you think that's worst case. Not that I'm agreeing with the report.
How many months before launch do you think they will announce the date? bear in mind that publishers and retailers will need to know to plan product, and at that point there just aren't any secrets.
Sethamin said:
Did you see me defining thow many years is long term or short term?I use simple everyday economical terms.They may sound stupid to you but thats what every economist, analyst, refers to when it comes to decision making.Are they Gods?NO!Decision making goes according to future expectations, predictions whether they may proove wrong or right.
And I was describing Sony when I used this terms.So if you want me to say something about XBOX though thats what I am going to say.Its a long term "investment" as well.But it goes farther than whats achievable with a competitive company that makes normal profits and has to deal with higher risks.They can keep the XBOX brand in the market as long as they can.Or more accurately as long as they are monopolizing in a huge irrelevant market (and expecte possible benefits or some kind of future security)
I just described whats going on.So what?Its just an observation of strategies and actions.
So whats your problem?I didnt state it illegal.I wasnt accusing anyone.Just stated facts.
Actually the question is WHY DO YOU CARE and MAKE SUCH A BIG FUSS ABOUT IT just because I described something that didnt sound all that rosy in your ears?I thought you DIDNT care?
Its a fact that the competition between PS brand/or Nintendo console brand and XBOX brand is unfair.
Its a discussion.I only mentioned how MS managed to keep XBOX in the market and how this may be harmful(Didnt say WILL but MAY).And thats it.Period.Nothing to start quarelling about.
Its just that some people are so obsessed with a product that when they hear something that may sound like an accuse against it they make it a huge issue to start disputes.
Well I dont care.Thats their problem.I dont know if you are one of them.
For me these discussions/observations are like an excercise for me.Just discussion of strategies.Nothing more nothing less.
Now relax please.
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ERP said:
Maybe this is what you are referring to....
http://www.destinationplaystation.com/main.asp?section=agenda
Joe DeFuria
Legend
ROG27 said:
Yes and no.
We should certinaly get a better idea of PS3 timing from that event...assuming stuff will leak. But since this is an annual event, we can't yet infer anything specifically related to PS3 launch.
Teasy said:
Investments are losses until the money is made back. $2 billion spent is $2 billion less that you have now than you would have had if you didn't spend it. That's a loss. If your "investment" doesn't pan out, the money spent is gone forever, and that is certainly a loss.
And you haven't provided ANY evidence supporting the idea that they've sufferend significant unplanned losses.
Live was part of their initial plan, long before the Xbox launched.
Do you have any kind of proof at all that MS lost significantly more than they planned, or should we conclude this is an unfounded assumption on your part?
scooby_dooby
Legend
I know...these arguments might have been valid 4 years ago, in 2001 when MS was still an unknown quantity, but you're about 4 years too late with teh conspiracy theories.
They've invested in the console, established franchises, established online support, and a brandname, and they will now turn a profit in the 2nd generation.
That's really pretty damn simple. Not to mention, they did it all without being overly aggressive, without huge buy-outs, and without unfairly using their capital.
They've invested in the console, established franchises, established online support, and a brandname, and they will now turn a profit in the 2nd generation.
That's really pretty damn simple. Not to mention, they did it all without being overly aggressive, without huge buy-outs, and without unfairly using their capital.
ERP said:
Very good point. I think they need to give a lead time to retailers of at least 3 months in advance of actually being ready to ship. Advertising also needs to be set up at leas 3 to four months in advance (by TV and ad space requires alot of time upfront.). retailers even fine manufacturers for for being late with products.
expletive said:
It started with some people's fixation on insisting that Xbox is market failure because they made no money from the first venture... Then they said that this so called "4 billion loss" proves that MS in addition to the Xbox division is inefficient and its only because they have a monopoly in OSes that Xbox still has the ability to be forced down our throats as consumers.
Its actually quite correct in some respects. If you look through the whole thread you will see proof thats not being bias or hate for Microsoft. They saw Sony as a threat and this is there response. Its an investment to keep some control in the living room or all of it. You guys thing to much into this stuff.blakjedi said:
