News & Rumors: Xbox One (codename Durango)

[Jwm]

Seems they are sticking to keeping Kinect in the box, otherwise why delay in those regions.

I am sure they have pre-order data along with increase or decrease over time, so maybe some regions are seeing an up-tick lately and they would like to increase stock levels in those stronger markets.

The yield issues could be true for any case, but the issue might be small enough to not hurt them producing millions of units anyway.

 

[Kaotik]

Seems they are sticking to keeping Kinect in the box

There was never any real doubt about that.

 

[dobwal]

If you don't want to be a global brand, sure. MS could get away with just serving NA, so why bother anywhere else? MS don't want to be a marginalised brand. If they don't get a foothold in other markets while PS4 is gaining interest, PS4 will have all the momentum and it'll be all the harder to win those countries over, as friend's start buying the same console their PS4 owning friends bought. MS would have to at least lay on a heavy marketing campaign to get everyone to wait and see.

I'd also like to see the numbers were the US is 60 of the gaming market. A few years back, the EU was the largest (or second) gaming market. There wasn't much between NA, EU and Asia in those figures. Quick Googling says you're completely off with that.

Sony's Playstation has been a global product since the mid 90s and it did so with only the US being included (1 time) in first wave of launches. There have only been three worldwide console launches (if you can consider them ww launches) with the 360, wii and wii u. I consider the wii to be the only successful world wide launches because the 360 lacked supply while the wii u lacked demand.

Both the PS3 and Wii overcame whatever momentum the 360 had built in europe and in the case of the PS3 it did so while showing up a year and half later than the 360. There is no point in trying to launch worldwide and basically underserve every region because you lack the supply to accommodate such a wide launch.

There is no historical data that suggest worldwide launches are absolutely necessary to compete in the console market. Sony has sold the more console units than anybody else with mostly using a japan first strategy.

 

[Jay]

Localisation excuse is bull.... You could offer english support and then, after a while, the local language.
In my coutry, Romania, there is no local support for either PS Store or MS whatever...
So this is the reason I have preordered from UK. As many others, I suppose...

sorry - I preordered a PS4... but the ideea is the same...

Don't actually understand your point sorry.
Neither are releasing in your region, so your importing (PS4), so that means localisation is bull????
If anything that could just mean both Sony and MS, haven't localised to your region, if anything you could be arguing that it makes more sense haha.

Anyway, the localisation that is required is very different.
Also voice input is one of the core selling points of XB1, and if it never worked in dashboard and in games, it would make XB1 look very bad.

Could you imagine the youtube clips of people saying "xbox home", and it starting to dial your mum on Skype.
Or in Ryse, "Troops forwards", and it exits game.

 

[baten]

Don't actually understand your point sorry.
Neither are releasing in your region, so your importing (PS4), so that means localisation is bull????
If anything that could just mean both Sony and MS, haven't localised to your region, if anything you could be arguing that it makes more sense haha.

Anyway, the localisation that is required is very different.
Also voice input is one of the core selling points of XB1, and if it never worked in dashboard and in games, it would make XB1 look very bad.

Could you imagine the youtube clips of people saying "xbox home", and it starting to dial your mum on Skype.
Or in Ryse, "Troops forwards", and it exits game.

Maybe it is clearer if I mention I preordered in UK?

 

[SedentaryJourney]

The trouble with what you would prefer is the negative press would be so much more worse than what their getting for not releasing there yet.
All the reports of faulty units, it not working very well.
One of its biggest selling points and it's crap, etc. And that's from the people that know it's not localized yet

So instead they redirect those units to localized regions and have more stock available, and not a few thousands here and there.

I'm saying they should ship it without voice controls and phase in the functionality once it's working. Seems like it would only be for the first 4-5 months according to MS' estimate of an early 2014 launch for the 8 countries that were cut.

This is the better approach since the delay will cost them money and possibly even market share. It's also less embarrassing. MS already set a precedent for phasing in features across different regions.

 

[brasnial]

I'm thinking its probably a bit of both .......maybe yields are not as high as Microsoft would like .
Now lets say they were going to launch in some countries with kinect voice control not localized and patch it later .

By not launching in countries where voice control would not be available from the word go they have kill to birds with one stone .

If they launched with some functions not available in some countries they would have been attacked leading to bad press ......if they have a very limited number for launch it makes sense to only launch in countries where you will have all functions of kinect working from day one .

As it means you get no bad press from the countries missing kinect functions plus you are able to fill all your pre orders in all the markets you are launching in .
So no bad press there ether from customer orders you were unable to supply .
So no bad press there ether just good press as you sell out you first wave of machines .

Plus by offering a free game to customers who pre ordered in countries you are no longer launching first in you have shown you are sorry about situation and care about the fact they where loyal enough to pre order in the first place .

Microsoft have obviously let some customers down but its not like they have said tough no they have been very fair by offering a free game .

Now I feel sorry for those missing out but hay your have it by Easter next year and a free game plus hopefully a fully functional kinect as well.

Me personally i'd prefer a fully functional kinect plus a free game but sadly I won't get any free game only a fully functional kinect as I live in England but at least there's no delay here .

Its about good publicity Microsoft releasing a half functioning kinect plus not filling all ther pre orders would have lead to far worse publicity than delaying the launch in some countries .

That my take on this sorry affair

 

[Shifty Geezer]

There is no historical data that suggest worldwide launches are absolutely necessary to compete in the console market.

Of course it's not necessary, but you have to have a business strategy to deal with your competitor in the markets you are delaying release, or you have to be confident you can compete against any momentum your rival has. If MS are diverting units from these countries to the others, they had better have better reasoning behind it then, "we can release there later, if we feel like it."

It's worth revisiting remarks made at the launch of this gen regards global launches, with Sony I think it was saying they wouldn't try it again. It's also worth looking at Sony's strategy, which currently has no launch date for PS4 in Japan. That's because they consider that an uncontested market and it can wait. They want to make a bigger push in the territories where MS is strongest to shake their position. That in itself could be reason for MS to consolidate stock in the most contested markets.

 

[Tchock]

If I were MS I'd rather get the Americans and British committed to playing on their XB1s. Network effects and pop culture (the "dominant" brand) will do the rest.

Releasing in 21 regions is a straight up logistical nightmare if demand of the consoles are unpredictable despite models and estimations.

 

[Deleted member 11852]

Of course it's not necessary, but you have to have a business strategy to deal with your competitor in the markets you are delaying release, or you have to be confident you can compete against any momentum your rival has. If MS are diverting units from these countries to the others, they had better have better reasoning behind it then, "we can release there later, if we feel like it."

Yup. It looks like Sony are prepared to let Japan slide as a launch territory so they can focus on tougher markets. I'm fascinated to see how the Japanese market react to this if it actually happens.

What we're seeing may just be a difference of view between what Microsoft and Sony see as essential (early land grab) markets based on past console sales. Of course we've never had two so-closely matched consoles launching within such a narrow launch window before. Past generations are borderline irrelevant as a precedent.

With the comfortable detachment I have by not caring who "wins", it'll be very interesting to observe over the next 12 months.

 

[expletive]

I'm guessing there's a pre-order data component in here that was showing how 'launch interest' was trending. It's possible they didn't see the interest at levels in the removed countries to justify day one supply and they'd rather focus those units where they'll all be sold. MS can "want" to launch in a ton of countries but on day one its a zero-sum supply game globally.

Also, there is a fixed cost of dollars and administrative overhead to launch a console in a country, specifically on day one when you're already stretched thin. My guess is that they also felt the day one launch in these countries wouldn't justify that.

If it is pre-sell data feeding into it then its unfortunate that they don't have the buzz they wanted leading up to the launch but in the end they need to be honest with themselves and cut bait. They'll just have to generate sales later with the product standing on its own merits and having positive word of mouth, which is how most products end up being sold.

 

[3dilettante]

Is the distinction being made between interest, which would be pre-orders out of the nation's potential market, and pre-order totals on an absolute level?
Or is there a trend where smaller nations in Europe that make up the smaller share of total population like the Xbox less?

 

[Shifty Geezer]

I'm guessing there's a pre-order data component in here that was showing how 'launch interest' was trending. It's possible they didn't see the interest at levels in the removed countries to justify day one supply and they'd rather focus those units where they'll all be sold.

But that points to serious issues and a need for better marketing. If no-one is wanting XB1 in the dropped countries, how is delaying going to help that situation? If the executives are looking at preorder numbers and thinking, "no-one in those countries really wants this thing - let's just sell where we're wanted," that doesn't bode well for long term investment in the platform in other territories. The correct response should be more like, "preorders are low in these countries. Let's put on some good marketing, some regional specific interest, and get the interest up!"

That's why I don't think it's preorder number related. Staying out of those territories for longer is counterproductive to increasing brand strength and sales.

 

[DuckThor Evil]

Both the PS3 and Wii overcame whatever momentum the 360 had built in europe and in the case of the PS3 it did so while showing up a year and half later than the 360.

Reverse the launch dates and the 360 would have been DOA in Europe.

 

[Deleted member 11852]

I'm guessing there's a pre-order data component in here that was showing how 'launch interest' was trending.

Most definitely but there is pre-order data and pre-order data. Lots of places will let you pre-order without a deposit and where there is no penalty for cancellation, which I'd wager attracts a lot of people who want/hope to be able to get a launch pack but can't really commit financially to it. Then there will be pre-orders where a deposit is required and lost if the pre-order is cancelled, which probably attract the more dedicated.

I'd be interested to see data on this.

 

[DrJay24]

Most definitely but there is pre-order data and pre-order data. Lots of places will let you pre-order without a deposit and where there is no penalty for cancellation, which I'd wager attracts a lot of people who want/hope to be able to get a launch pack but can't really commit financially to it. Then there will be pre-orders where a deposit is required and lost if the pre-order is cancelled, which probably attract the more dedicated.

I'd be interested to see data on this.

I don' think that is legal, I've never heard of such a thing.

 

[dobwal]

Reverse the launch dates and the 360 would have been DOA in Europe.

And?

The PS3 isn't the PS2 and the 360 isn't the Xbox.

 

[Shifty Geezer]

I don' think that is legal, I've never heard of such a thing.

It shouldn't be illegal - there are many examples of where a prepayment can be withheld in a cancellation. You'd just have to be aware that the customer is properly informed, and you'd have to consider the impact on your business if you have a caveat like this on preorders. I have no idea if any stores actually do operate with a non-refundable deposit on preorders or not.

 

[MrFox]

I don' think that is legal, I've never heard of such a thing.

Depends on the country, but I've seen this where a deposit is considered the same way as a restocking fee. It's justified by the business lost, they have to refuse other clients because you held the allocated preorder. The preorder is a contract.

 

[DrJay24]

Depends on the country, but I've seen this where a deposit is considered the same way as a restocking fee. It's justified by the business lost, they have to refuse other clients because you held the allocated preorder. The preorder is a contract.

Still doesn't make much sense, you could just buy it and return it immediately. I've never heard of a restocking fee on something that isn't opened. Sounds like the dealings of a shady business. No one in the US does such a thing that I'm aware of, even restocking fees are getting rare.