PS2 outselling XBox 360

So on the whole do you get more clarity to Xbox financials with this new arrangement or less? The thing is it's tough to tell out of all that goes in these divisions, what's profitable and what's not. For example, are the Xbox only losses in D&E likely to be far less or more than 96m? In other words, is the rest of the division a big profit or loss or break even? And I dont have a clue, but somebody might have an idea.

There may be pretty big Zune R&D expenses, but I'm sure ms is NOT going to be treating Zune hardware as a loss leader like the Xbox.

Also, they shipped supposedly 900k, versus 1.7m or so previous Q's, so yeah it could be a big part, maybe half, the difference, but not all, because the losses should be around half as much going by strictly volume, but they're actually like 1/4.

Well, I don't think XBox clarity has really changed much at all; Devices and Entertainment still sort of equates directly to the old Home and Entertainment group... the only thing is that Live is completely compartmentalized and removed now. Zune could have contributed to some of those losses (I mean it must have on one level or another), but I'll be honest when I say I don't expect Zune to cloud our vision of the unit for more than a year or two, because I expect outright failure on that front. ('Origami' came and went quickly I might note...)

I have a couple of thoughts on the [more consoles=more loss thing]... and it just leaves us with a bunch of variables rather than anything really conclusive. One, is that a quarter with fewer consoles sales allows software and accessory sales to compose a larger portion of the revenues, and these are inherently profitable areas. So indeed, maybe twice the consoles sold would equate to four times the loss. It's hard to say because it's nebulous. On the flip-side, some of the 360 losses in the previous two quarters could in part have been due to busted 360 replacements, which essentially would add a couple of hundred $'s to the cost of that single unit for consoles replaced under said program. So where I do think increased sales would generate losses greater than a linear equation would, at the same time I'm sure that replacement pressures have diminished for them.

It's definitely opaque, that's for sure...

I think if we had both total system, accessory, and software sell-through for two consecutive quarters, we could begin to really come up with some theories.
 
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but I'll be honest when I say I don't expect Zune to cloud our vision of the unit for more than a year or two, because I expect outright failure on that front. ('Origami' came and went quickly I might note...)
Origami is a hardware spec, not a device built by Microsoft. AFAIK, the project isn't dead, just iterating until the right hardware comes along.

And if Zune is a failure, I would expect it's losses to cloud the vision such that we won't be able to see anything of use in the D&E numbers until it didn't matter...
 
Something probably has "gone wrong" in Europe. However 360 does well on particularly the weekly/monthly British software charts that we get
Software just means XB360 buyers are buying more games than other console owners, which is not any indicator of how hardware is selling.

6 million shipped worldwide seems relatively low to me. Things are bound to pick up with GeoW and LD for starters, but then we also have two more consoles arriving. Perhaps there's a lot of 'wait and see' going on?
 
Perhaps there's a lot of 'wait and see' going on?

"perhaps"??

European gamers are waiting for the GTA's, and all the games that always do very well here. And they're waiting for PS3.

GTA this time is on 360 too so that will help a lot, but it won't come out for a while now so everyone's waiting. MS's problem is that by the time GTA is out on 360, PS3 and Wii will be out. And i'm afraid to say, i fully expect people to do the whole "GTA on PS3 is better than the one on 360" whether it really is or not, simply because Europe is Playstation territory. Despite the stupid treatment we get from Sony. They marked their territory, Sony pissed on Europe, and even though Europeans get pissed on (off), they keep prefering Playstation to Xbox.
 
GTA this time is on 360 too so that will help a lot, but it won't come out for a while now so everyone's waiting. MS's problem is that by the time GTA is out on 360, PS3 and Wii will be out. And i'm afraid to say, i fully expect people to do the whole "GTA on PS3 is better than the one on 360" whether it really is or not, simply because Europe is Playstation territory. Despite the stupid treatment we get from Sony. They marked their territory, Sony pissed on Europe, and even though Europeans get pissed on (off), they keep prefering Playstation to Xbox.

On the other hand I expect a price drop for the 360 by then. If Sony decides not to follow, which should be a tough decision IMHO, it could win a lot of people over...
 
Software just means XB360 buyers are buying more games than other console owners, which is not any indicator of how hardware is selling.

Yes, early adopters tend to have deeper pockets. ;) And of course charts (as opposed to overal unit sales) are also influenced by a comparatively limited number of hot titles being available for early adopters.
 
On the other hand I expect a price drop for the 360 by then. If Sony decides not to follow, which should be a tough decision IMHO, it could win a lot of people over...

Definitely.
Do keep in mind that in the next few months, videos like the ones Sony made on their playb3yond website will be everywhere and all the time.
Europeans LOVE that kind of PR, and Sony will make sure that the few still to be convinced will see how PS3 is SOOO much more powerful than our own brains, how it can cure cancer and all those silly PR stunts.

Sony will not lower the price aggressively. The price war with MS will be lost for a long time. That's where Sony Marketing will come in:

Sony Marketing team's task is to convince people that the price of the PS3 is justified, cause it ain't coming down any time soon.

While MS's Marketing team will have to try to convince people that their console does everything the PS3 can do, but at a cheaper price.
 
Absolutely. European are very much on the fence, and as soon as they see one of those "cool" Sony videos, they'll run to the shops. Problem is that there probably won't be many PS3s for them when they get there, which WILL be a huge problem for Sony. Yes i am fully expecting that "2 Million PS3s ready for Euro Launch" claim - or whatever it was - not to be met, but maybe that's just me.
 
6 million shipped worldwide seems relatively low to me. Things are bound to pick up with GeoW and LD for starters, but then we also have two more consoles arriving. Perhaps there's a lot of 'wait and see' going on?

6 million shipped also includes at least 4 months of major supply problems. Their sales could have been a lot higher had they been able to supply the demand at the time.
 
Absolutely. European are very much on the fence, and as soon as they see one of those "cool" Sony videos, they'll run to the shops.

I seriously doubt that. PS3 is very expensive device and XBOX360 has decent market penetration while being somewhat reasonably priced. And there is a lots of great games coming soon for 360.

People aren't stupid, at least 20 or 30 something guys with money to spend typically aren't.
 
I seriously doubt that. PS3 is very expensive device and XBOX360 has decent market penetration while being somewhat reasonably priced. And there is a lots of great games coming soon for 360.

People aren't stupid, at least 20 or 30 something guys with money to spend typically aren't.

You doubt that "people will run to the shops"? Good luck!

I didn't mean "everyone" will run, but obviously a lot of people will see the videos, and all sorts of PR Sony will force on us in the next few months, and get one.
 
Is it any surprise that hte PS2 is outselling the 360. It is half the price and offers an enormously larger library???

True hardware sales will best be displayed next fall/winter (07), when all 3 consoles are on the market and readily available.
 
Is it any surprise that hte PS2 is outselling the 360. It is half the price and offers an enormously larger library???

True hardware sales will best be displayed next fall/winter (07), when all 3 consoles are on the market and readily available.

Are you trying to put some sense in this thread? Don't you know that's not allowed here? :nope:
 
Is it any surprise that hte PS2 is outselling the 360. It is half the price and offers an enormously larger library???

True hardware sales will best be displayed next fall/winter (07), when all 3 consoles are on the market and readily available.

The PS2 is actually 1/3rd the price. They're $129 right now versus $399 for the X360.
 
Disappointingly, this month X360 hardware sales compare to last (trending). I thought that sales would pick up from the summer low key months... However, with reports of X360 sale through sluggish wonder how it'll pick up with Gears now in the market?

Check the trending numbers....

"The PlayStation 2 came in at around 235,000, with the Xbox 360 slightly disappointingly selling just under 220,000 units.."

Source: http://www.gamecareerguide.com/industry_news/11648/npd_october_game_sales_up_1_.php
 
Disappointingly, this month X360 hardware sales compare to last (trending). I thought that sales would pick up from the summer low key months... However, with reports of X360 sale through sluggish wonder how it'll pick up with Gears now in the market?

Check the trending numbers....

"The PlayStation 2 came in at around 235,000, with the Xbox 360 slightly disappointingly selling just under 220,000 units.."

Source: http://www.gamecareerguide.com/industry_news/11648/npd_october_game_sales_up_1_.php


Both the 360 and PS2 dropped about the same amount from last month.

This months sales will definitely pick up. It's the holidays and everything sells better in November and December. COD3, Gears of War, and Rainbow Six will certainly will help.
 
I've checked my graphs and actually, a slight drop in October is pretty usual for console sales. I'm surprised, too, but that's how it goes as it seems ;)
 
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