Microsoft CFO outlines MS's long term Xbox strategy

[duffer]

Not exactly news, but it's interesting anyway. Chief Financial Officer and senior vice president John Connors gave a speech where he outlined Microsoft's strategy in different business markets. Here's the part of the speech that talks about Xbox:

http://knowledge.emory.edu/articles.cfm?catid=7&articleid=577&homepage=yes

The Xbox falls under the games platform, the Home and Entertainment Division. “We’re in this market because it is a big opportunity,â€￾ says Connors. “So far we’re doing pretty good in the U.S.; we’re actually ahead of where Sony was with PlayStation when they launched. We’re not doing that great in Europe; and in Japan, we’re getting slaughtered. But what we can do long term is build a games platform, and we have a competency at building platforms, getting the right application yield on those platforms. Then we can hopefully build a really great consumer business. We’ve got to figure out how to bring our TV efforts together with Xbox over time, and our e-home initiatives for home networking. If we do that right, we can have a pretty good business in five years.â€￾

 

[Legion]

I have always wanted to know how much of the xbox's troubles have to do with antiamerican bigotry.

What would it take for the xbox to sell well in these other countries? What are the current sales figures in Europe?

What do the Europeans want that the xbox doesn't have? Is it really that the xbox is lacking necessary titles or is it just that MS has a "bad" reputation or that the xbox is simply new to the game? What did the Genesis have that the xbox doesn't?

 

[marconelly!]

What would it take for the xbox to sell well in these other countries? What are the current sales figures in Europe?

I believe Xbox is in third place in europe. Nintendo announced they have shipped one million GCs there and I'm sure MS would announce the same if they did it.

What would it take to sell better in Japan and Europe? I don't know. Anti-american feeling is pretty strong in some European contries, and probably Japan (I can't talk about that as I haven't experienced it firsthand)

Microsoft would need to do something really big to garner the better support Japan, like buy out Konami and Enix, for example. Chances of that happening are pretty much null, though.

 

[Legion]

Anti-american feeling is pretty strong in some European contries[/qoute]

I find this absolutely ridiculous. I truly believe their dislike of America stims from envy.

 

[MrSingh]

Anti-american feeling is pretty strong in some European contries, and probably Japan

I don't get that strong anti-american sentiment here. in fact you'll be surpised how many people here want to "live the american way" sometimes.

 

[CeiserSöze]

It's not anti-America over here - it's more an anti-Microsoft sentiment that is hurting XBox-sales. I don't know how it is in America but here most people don't like (and don't trust) Microsoft very much.
Here (Switzerland) only about 15% of all consoles sold are XBoxes (35% are Cubes and 50% PS2's).

 

[marconelly!]

I find this absolutely ridiculous. I truly believe their dislike of America stims from envy.

Their dislike to America usualy stems from problems they've been exposed (directly or indirectly) by America. From policital pressures and strongarming, to pop-culture intoxination. Or at least they perceive it that way even if it's not true. That, of course, doesn't go for all people and all countries. Btw, trust me, there's not much to be envious about life in America. I've seen both sides.

 

[Legion]

I suppose Marconelly! that its a matter of perspective. I really couldn't stand to live under socialism as it inhibits growth of buisness/economy/GNP/personal freedoms. I suppose some of these people from other countries feel as though we are "strong arming" them. Honestly i don't see much of that going on in Europe. Europeans have quite a history of that themselves though . I find their behavior to be rather hypocritical.

The life style here is fine. Honestly much of what people think of americans comes from the media which infact represents only the most minute portion of america.

As for the Xbox sales, what is it that people want to see on this system that it just doesn't have? What do you think they are looking for? Do you think they aren't ready for a 3 system market?

It looks to me as though MS will just have to earn their respect.

 

[marconelly!]

The life style here is fine. Honestly much of what people think of americans comes from the media which infact represents only the most minute portion of america.

I agree. It's fine. But it's also fine there. Even more so in many respects. Also, most of the Europe has nothing to do with socialism.

As for the Xbox sales, what is it that people want to see on this system that it just doesn't have? What do you think they are looking for? Do you think they aren't ready for a 3 system market?

I think 3 systems can and should do just fine, except maybe in Japan, where I don't see what kind of miracle can make xbox sell so much more than it is right now. Heck, even GC is lagging badly there, and you can tell big developers in Japan are already losing interest in Xbox. There isn't a single new game from Konami, Square or Enix announced for it, and MGS2:S apparently won't even be released on Xbox there...

As for Europe, I think Xbox will do fine there, eventually. What it doesn't have right now, is something to really distinguish it from PS2, to make it obvious that it has something to offer that you cannot get on PS2, not even something similar. I think that's the biggest problem it's really facing, aside the lack of coolness aura and lots of negative hype steming from the fact is't being made by 'evil buggy software' Microsoft.

Perhaps Project Ego will be such game, it really sounds promising, and I think will do very well in EU.

 

[Teasy]

I have always wanted to know how much of the xbox's troubles have to do with antiamerican bigotry.

In Japan, no idea how much of it has to do with that.

In England, its poor sales are nothing to do with it. Try being offered a XBox for $470 (£300) at release and see how eager you are to snap it up. XBox didn't start selling decently here until they dropped the price to $312 (£200). Now that its down to $250 (£159.99) its in a much better position to sell well.

Notice that every price listed there for XBox is well over the price it was being sold for outside Europe at the same time. Sony did a similar thing with PS2, but PS2 had the market to itself and by the time it didn't it had a massive user base and huge awareness amongst gamers. Nintendo realised that with the market the way it is they couldn't treate Europe like idiots, as they have done in the past, and released the console cheaper here then they had in the U.S and Japan... they also had the Nintendo name of course, both of these factors helped them get off to a good start.

I find this absolutely ridiculous. I truly believe their dislike of America stims from envy.

People around here hate allot of stuff that comes from North America, but I won't go into it unless you really want me too, because it would take too long.

But as I said XBox not selling to well here has nothing to do with any of that, nobody here really thinks of XBox as an American console, its just a console.

 

[Legion]

interesting point Marconelly...i forgot that Project Ego is being produced by Peter Molyneux.

 

[Legion]

I really don't care how the Europeans feel about the US. I see them as hypocrits.

 

[cybamerc]

Legion:

> I really don't care how the Europeans feel about the US. I see them as
> hypocrits.

That is as funny as it is stupid.

 

[Ozymandis]

I have always wanted to know how much of the xbox's troubles have to do with antiamerican bigotry.

In Japan, probably a lot. The Japanese are notably anti-American sometimes, not suprising after WWII. I don't know (and don't really care) about Europe. That's like the "black sheep" of videogame territories

 

[Legion]

well actually cybermerc its neither funny nor stupid. Europe has a long history of genocide, murder, strongarming, etc. All one has to do is look at the history of south america and india to know that much. No one country in this world is innocent. If your intent is to incite me into arguing with you please take your commentary to me via aol or yahoo. I really have no interest in engaging in puerile arguments over things which are common knowledge here in this forum.

 

[Legion]

I noticed Ozy in several public commentaries about MGS2 a few individuals interviewed said they wouldn't buy it because it appears "too american."

BTW how is star fox adventures?

 

[tuna]

well actually cybermerc its neither funny nor stupid. Europe has a long history of genocide, murder, strongarming, etc. All one has to do is look at the history of south america and india to know that much. No one country in this world is innocent. If your intent is to incite me into arguing with you please take your commentary to me via aol or yahoo. I really have no interest in engaging in puerile arguments over things which are common knowledge here in this forum.

And just exactly does that have with the fact that some people who live in Europe today maybe don't want to buy a console from Microsoft?

And some parts of Europe doesn't have a long history of genocide. Some do.

 

[Legion]

And just exactly does that have with the fact that some people who live in Europe today maybe don't want to buy a console from Microsoft?

And some parts of Europe doesn't have a long history of genocide. Some do.

Tuna the point was made to cybermerc. It has nothing to do with selling the consoles nor did his prior statement to me.

 

[Steve Dave Part Deux]

"Personal Freedom" is a meaningless buzzword used frequently by conservatives to justify denying services to people that need them. While they have no qualms about giving billions in tax breaks and subsidies to crooks and bigots. They also don't mind criticizing Iraq for harboring chemical and biological weapons when we have poorly maintained storehouses of such devices that are now contaminating groundwater and poisoning people right here in the US.

 

[Legion]

"Personal Freedom" is a meaningless buzzword used frequently by conservatives to justify denying services to people that need them.

actually i'd have to say that the buzz term is used quite often by both sides. Especially when liberals filabuster insupport of abortion (which does nothing more than help futher personal irresponsibility). Liberals have a tendency to invent problems and people who need to be helped.

While they have no qualms about giving billions in tax breaks and subsidies to crooks and bigots.

Like the liberals don't do that with law firms, drug dealers, and the like? Come on both sides have helped questionable constituants. Personally i see nothing wrong with giving a tax break to the wealthy. There is no reason why they should be in a higher tax bracket then the rest of us simply because they are more successful.

They also don't mind criticizing Iraq for harboring chemical and biological weapons when we have poorly maintained storehouses of such devices that are now contaminating groundwater and poisoning people right here in the US.

WTF? What are you talking about?