Did Microsoft pull off a SONY 2006?

#21aszsithPosted 4/14/2014 9:04:32 PM
ejay8320 posted...
aszsith posted...
Well, since Sony sold more consoles in gen 7, does your comparison extend to the possibility that this could happen as well?


It could happen, but show some supporting evidence of how it could happen... despite taking a big hit in the US and UK(mostly due to launching 1 year later) the PS3 still had great sales in the rest of Europe and of course Japan and other asian countries over the years. This is what allowed the PS3 to eventually catch up. Not to say the Xbox one can't catch up, but Xbox lost a great deal of market share in their major markets and has a really bad image(worse than what sony had on the PS3 launch).

At this point in time I just don't see any signs the xbox can catch up, but the generation has just started, so things can change.


In the end, I bet Microsoft is more concerned with the amount of money made on the thing than the number of units sold. Considering that at current price points, Microsoft could sell 81 XBOne's and generate more revenue than Sony if they sold 100 PS4's, it would seem that Microsoft isn't in quite such the bad position the naysayers would like to believe. They can sell 19% less than the competition and still "win" financially.
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ALL games should have a Single Player mode. I can always guarantee I want to play when I turn on my system. I can't guarantee others will at the same time.
#22IzraeilPosted 4/14/2014 9:30:30 PM
The only reason 360 got as far as it did was because of the year long headstart. By the time PS3 came out there was a pretty big trend of people getting 360s because their friend had one.

But despite that PS3 and the fact that PS3 was $100-200 more throughout the ten it outsold the 360.
Infact the only year after both consoles were out that the 360 outsold the PS3 was in 2008. Other than that PS3 was always selling more.

So keeping all of that in mind it makes it pretty clear that the Playstation brand is just way bigger than XBOX brand, and if PS3 and 360 launched at the same time PS3 would've crushed the 360 even with the $200 higher price tag.
#23IzraeilPosted 4/14/2014 9:34:25 PM
aszsith posted...
ejay8320 posted...
aszsith posted...
Well, since Sony sold more consoles in gen 7, does your comparison extend to the possibility that this could happen as well?


It could happen, but show some supporting evidence of how it could happen... despite taking a big hit in the US and UK(mostly due to launching 1 year later) the PS3 still had great sales in the rest of Europe and of course Japan and other asian countries over the years. This is what allowed the PS3 to eventually catch up. Not to say the Xbox one can't catch up, but Xbox lost a great deal of market share in their major markets and has a really bad image(worse than what sony had on the PS3 launch).

At this point in time I just don't see any signs the xbox can catch up, but the generation has just started, so things can change.


In the end, I bet Microsoft is more concerned with the amount of money made on the thing than the number of units sold. Considering that at current price points, Microsoft could sell 81 XBOne's and generate more revenue than Sony if they sold 100 PS4's, it would seem that Microsoft isn't in quite such the bad position the naysayers would like to believe. They can sell 19% less than the competition and still "win" financially.


Yeah let's ignore the fact that MS also has to spend more on shipping the One with a Kinect.
I don't know how much the production costs are for each console, but let's say PS4 costs $375 to produce and ship, and XB1+Kinect costs $480 to produce and ship, Sony would still be making more money.

It's not as simple as MS is making $500 for XB1 and Sony is making $400 for PS4, So MS must be happy selling less consoles.
#24Jedi454Posted 4/14/2014 9:45:43 PM
violentdissmay posted...
Jedi454 posted...
Well the Xbox One is selling A LOT better than the Ps3 this far in it's lifecycle, so what does that tell you?


That consoles sold alot better in 2013 than in 2006


Wii vs. Wii U argue otherwise.
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#25Shinobi120Posted 4/14/2014 10:01:52 PM(edited)
A lot worse than just the higher price tag.

aszsith posted...
In the end, I bet Microsoft is more concerned with the amount of money made on the thing than the number of units sold. Considering that at current price points, Microsoft could sell 81 XBOne's and generate more revenue than Sony if they sold 100 PS4's, it would seem that Microsoft isn't in quite such the bad position the naysayers would like to believe. They can sell 19% less than the competition and still "win" financially.


If anything, Microsoft's just breaking even on each Xbox One console sold.
#26aszsithPosted 4/14/2014 10:26:23 PM(edited)
Izraeil posted...
aszsith posted...
ejay8320 posted...
aszsith posted...
Well, since Sony sold more consoles in gen 7, does your comparison extend to the possibility that this could happen as well?


It could happen, but show some supporting evidence of how it could happen... despite taking a big hit in the US and UK(mostly due to launching 1 year later) the PS3 still had great sales in the rest of Europe and of course Japan and other asian countries over the years. This is what allowed the PS3 to eventually catch up. Not to say the Xbox one can't catch up, but Xbox lost a great deal of market share in their major markets and has a really bad image(worse than what sony had on the PS3 launch).

At this point in time I just don't see any signs the xbox can catch up, but the generation has just started, so things can change.


In the end, I bet Microsoft is more concerned with the amount of money made on the thing than the number of units sold. Considering that at current price points, Microsoft could sell 81 XBOne's and generate more revenue than Sony if they sold 100 PS4's, it would seem that Microsoft isn't in quite such the bad position the naysayers would like to believe. They can sell 19% less than the competition and still "win" financially.


Yeah let's ignore the fact that MS also has to spend more on shipping the One with a Kinect.
I don't know how much the production costs are for each console, but let's say PS4 costs $375 to produce and ship, and XB1+Kinect costs $480 to produce and ship, Sony would still be making more money.

It's not as simple as MS is making $500 for XB1 and Sony is making $400 for PS4, So MS must be happy selling less consoles.


In the scenario you mentioned, yes, Sony would make more profit. However, your numbers are incorrect.

http://venturebeat.com/2013/11/29/the-deanbeat-the-xbox-one-cost-471-to-make-the-ps4-costs-381-and-why-this-matters-in-the-long-run/

The XBOne costs $471 to produce. The PS4 costs $381. That means Microsoft has $29 worth of wiggle room on the XBOne retail price. The PS4 has $19. This means that Microsoft makes 34% more profit per unit sold a full retail price.

Microsoft is able to make more money selling less. Would it be preferred to sell even more? Of course it would. But if comparing to the competition, units sold is not the only factor to consider. It is simply one of many things companies use to gauge success.
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ALL games should have a Single Player mode. I can always guarantee I want to play when I turn on my system. I can't guarantee others will at the same time.
#27CourtofOwlsPosted 4/14/2014 10:22:19 PM
well my system is still working so i'll go with no
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[?]
Boycott Best Buy!
#28jairusmonillasPosted 4/14/2014 10:22:28 PM
This things doesn't really matter anymore, It's almost impossible for Xbox One to catch up PS4. The damage is done, not only its more expensive but it's also 40% weaker. Xbox One is not the only one can update drivers, upgrade api and even price cut. Sony can do those aswell.

Xbox One will be playing catch up all year long but the gap will just get bigger.
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PS4 GPU: 1152 GCN, 2.00 TFLOPS, 72 TMUs, 32 ROPs, 8GB GDDR5
XB1 GPU :: 768 GCN, 1.31 TFLOPS, 48 TMUs, 16 ROPs, 8GB DDR3+eSRAM
#29IzraeilPosted 4/14/2014 10:39:10 PM(edited)
aszsith posted...
Izraeil posted...
aszsith posted...
ejay8320 posted...
aszsith posted...
Well, since Sony sold more consoles in gen 7, does your comparison extend to the possibility that this could happen as well?


At this point in time I just don't see any signs the xbox can catch up, but the generation has just started, so things can change.


In the end, I bet Microsoft is more concerned with the amount of money made on the thing than the number of units sold. Considering that at current price points, Microsoft could sell 81 XBOne's and generate more revenue than Sony if they sold 100 PS4's, it would seem that Microsoft isn't in quite such the bad position the naysayers would like to believe. They can sell 19% less than the competition and still "win" financially.


Yeah let's ignore the fact that MS also has to spend more on shipping the One with a Kinect.
I don't know how much the production costs are for each console, but let's say PS4 costs $375 to produce and ship, and XB1+Kinect costs $480 to produce and ship, Sony would still be making more money.

It's not as simple as MS is making $500 for XB1 and Sony is making $400 for PS4, So MS must be happy selling less consoles.


In the scenario you mentioned, yes, Sony would make more profit. However, your numbers are incorrect.

http://venturebeat.com/2013/11/29/the-deanbeat-the-xbox-one-cost-471-to-make-the-ps4-costs-381-and-why-this-matters-in-the-long-run/

The XBOne costs $471 dollars to produce. The PS4 costs $381. That means Microsoft has $29 worth of wiggle on the XBOne retail price. The PS4 has $19. This means that Microsoft makes 34% more profit per unit sold a full retail price.
Microsoft is able to make more money selling less. Would it be preferred to sell even more? Of course it would. But if comparing to the competition, units sold is not the only factor to consider. It is simply one of many things companies use to gauge success.


Like I said I don't know how much each console costs, I was only pointing out the huge flaw in your statement about MS being happy about selling less.

But as for the article you linked, that still doesn't give us the real picture, it's only adding up the retail costs of the parts in each console. MS and Sony don't pay retail prices, things get cheaper as you buy them in higher quantities. Furthermore they also have to recover the R&D costs of their respective hardware (that $200 million MS spent on coming up with the design for the controller needs to be earned back).
This point can be proven by the simple fact that even though the site you linked says Sony is making a $29 profit from each units, Sony said before launch that they will need to sell the console+1game+a year of PS+ to break even.

Plus you're ignoring that most of the money comes from software sales, and less consoles means less games sold and that a much bigger loss.

In conclusion, there are too many things that play into how much it cost the company to finally ship a console and saying they'd be happy selling less is completely ignorant and short sighted.
#30tadmfpolePosted 4/14/2014 10:47:48 PM
Sony turned a lot of people off with the price tag on the PS3, and MS turned a lot of people off with the now reversed policies and the currently still mandatory Kinect. I am really not sure if MS got cocky being how close the PS3 and 360 were in sales, and knowing they didn't have a one year head start this time it is a bit puzzling that they made some of the decisions that they did.

The original DRM plans wouldn't have been embraced even if there were no one else to compete with, much less when you are releasing almost back to back with a similar console.
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