The reason why MS didn't keep Connect and drop the price: the shareholders

#1GalvatronType_RPosted 5/16/2014 6:23:17 AM
If Microsoft truly believed in Connect and it's "inseparability" from Bone, they would have dropped the price to $400 while keeping it in the box and doing what they should have in from launch, vis a vis, justify to consumers why it was needed for a complete experience and encourage developers (especially indies) to release new, unique, and innovative IP for the device.

But they knew they couldn't do that because they would lose about $75/unit (the manufacturing cost of Connect) and the rumblings from big shareholders to spin off the devices unit would get extremely loud and belligerent.

While Microsoft could certainly afford to take a loss on a per unit basis (just like Nintendo did when they cut the price of the Wii U), the shareholders would have burned them alive if they had done that.
#2GeistPosted 5/16/2014 6:27:02 AM
Spelling counts even when trolling my friend.
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#3PumpeduPosted 5/16/2014 6:29:00 AM
Lmao. Fanboy wars are always good for a laugh.
#4gumbyxcore99Posted 5/16/2014 6:30:06 AM
you should tell us what business school you attended so me and me kids NEVER EVER EVER EVER go there
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#5cheezedadadaPosted 5/16/2014 6:33:05 AM
Is calling it "Connect" an inside joke here that I am missing? I see that a lot.
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#6GalvatronType_R(Topic Creator)Posted 5/16/2014 6:35:14 AM
gumbyxcore99 posted...
you should tell us what business school you attended so me and me kids NEVER EVER EVER EVER go there


Wharton.
#7GambitbuzzkillPosted 5/16/2014 6:35:53 AM
Kinect.
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#8chicken8orPosted 5/16/2014 6:36:23 AM
This is incorrect. The consoles are not where the money is for anybody, shareholders especially.

The more consoles that are owned the better. Hell, they could sell the Xone for $100 with the Kinect and it would still be beneficial for them. They don't do that though because nobody would buy it thinking there was something wrong with it.

The money comes from software and Live subscriptions. Always has and always will.
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#9TheMove2Posted 5/16/2014 6:41:06 AM
How can you make a post about Kinect if you don't even know what its called?

Kinect is dumb but this thread is dumber.
#10GalvatronType_R(Topic Creator)Posted 5/16/2014 6:47:51 AM
chicken8or posted...
This is incorrect. The consoles are not where the money is for anybody, shareholders especially.

The more consoles that are owned the better. Hell, they could sell the Xone for $100 with the Kinect and it would still be beneficial for them. They don't do that though because nobody would buy it thinking there was something wrong with it.

The money comes from software and Live subscriptions. Always has and always will.


True, the money is in software and services but both Microsoft and Sony was either making a tiny profit on each box sold at launch or was at least breaking even.

Microsoft would lose money on each box sold if they had kept Connect and dropped to $400. That would be completely intolerable to the shareholders, especially those who want Microsoft to sell off the division.