xbox - i knew this would happen
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- mitsu
http://money.cnn.com/2003/01/31/…
since the nes and sega master system face off in the mid 80's i've always loved the heat generated by console wars, and the only console event that i didn't predict was Sega's folding in the hardware market.
but microsofts contibution to the console game industry has been amateur at best and i knew it was just a matter of time before they would start posting losses. i give them a year... maaaybe 2.
- 8dot30
they knew they were going to lose monsy from the start, they lose money on each console sold. as said in the article.
the new console, xbox 2 is allready underway.
- sp0
yea, i think gates even said that in a press release. he did it just too get into the market. it was never meant to capture huge revenue.
- Gonzalmz0
That's just silly. What you don't understand is that Microsoft just spent three years buying up third parties. In fact, in that most recent press release where they state losses, they also calim to have money invested in an undisclosed Japanese company. Back in Novemeber, Sega stock dropped quickly over the course of a week and spiked upon word that MS had absorbed a bunch of Sega Stock (Though CSK doesn't want to give it up just yet), though not much more was said. Xbox has 24% marketshare worldwide--much more than the GC yet decidedly far less than the PS2. To come in a year late, they're doing WELL for themselves. BTW, people must not understand the basic economics...this is the same razorblade model used in every console released (sans the GC) for the last ten years. Sell the afordable razor, saturate the market, and make your dime after two blades sold. Honestly, to think that MS is going to drop hardware in two years, when they've already spent HANDSOME amounts of R&D on the Xbox2 (which has been announced for 2005), after spending a ridiculous amount on absorbing straggler 3rd parties, and gaining a strong foothold, particularly stateside, is pretty silly.
If anything, I think they've done what they set out to do--cement the MS name in the industry.
I care a whole lot more about the games though. I am a SEGA whore, and Capcom's bitch, because they simply make the greatest games ever. Square and Konami are the most overated companies in the industry, imo. Which is not to say their games aren't good, just overated.
BTW, it was a given that Sega was going to fold--they hadn't posted a profit in about 5 years.
- layer520
micro$ofts business practices should be studied
they are brilliant.
- d_t_p0
a lot of people seem to focus on this three-battle of video game hardware companies. who's in first or second, etc. they never seem to realize that there is plenty of room for the three of them. this is a huge industry that keeps growing massively, its great there are three console makers each with their own strengths. they will all be fine for the foreseeable future.
- kpl0
they will all be fine if they make money.
xbox doesn't belong in the industry. if MS didn't make their fortunes on Windows and Office, Xbox would have been the next 3do.
- jevad0
man - look at teh xbox - it's a fucking great unit - and can only get better.
Gates always KNEW it would lose money the first year and second - they are riding on the fact teh xbox 1 proved they could do it. Once people get the fuck over the fact that it's microsoft and realise what a fucking great unit it will be it will start eating up market share.
yaw.
- blend0
M$ knew they would have dig in deep to get into the whole game console. They planned for the deficit funding. It is all a masterplan that back ups their XP entertainment edition operation system.
- layer520
Can't wait for Microsoft® Linux 2005.
- the_user0
I'm glad you said it, blend.
I think this is a long-term plan, and involves far more than selling a game console.
- motivdesign0
It's definitely part of a long term plan. It's well known that you make your money on software, which has almost zero overhead once it's developed.
Also, it's in Microsoft's best interest to get the development community used to developing for the xbox. If they can build a solid developer base, then they'll have no problem churning out great games every month.
- Gonzalmz0
Just so we have this straight...I own all three consoles, and dislike Microsoft. I hate Windows, and am desperately awaiting Apple 970 boxes.
Now:
Motiv is on the money. The fact of the matter is, marketshare is much more important than immediate profitability in this industry. Consolidation is key right now--more profit for fewer companies. Small fish are eaten by bigger fish, and the bigger by the biggest (namely hardware manufacturers or well, EA). MS is eating up 3rd parties with the capactiy for million sellers. These 1st parties put out blades as internal game devs, then razor gets paid for by blades. MS owns Bungie, Rare, very nearly owns Vivendi, and is thought to have a bid on Sega. Now say MS ends this gen with 30% market share, and these companies feed MS 8,000,000 sales over the the course of next fiscal year. Then you'll see the profitability--and most the these acquisitions are relatively new...take into account transition periods.
Lemme remind you, Sega was in the red for about 5-6 years before they folded, and what's 3.5 billion compared to the real dime (Microsoft's).
Maybe you guys should observe a little more and put your prophecies on hold. But you guys also seem like the types who would benefit by looking up the definition of "monopoly." That word gets tossed around an awful lot with "Microsoft"--and nine times out of ten by folks who don't really grasp the concept.
Peace.
- blend0
I follow the game console industry from digital television prespective. Sooner or later people are going to have powerful computers with hard disk storage devices in their living rooms. For now the market has been dominated by real-time Linux based set top boxes. MS had to react, even if it meant short term losses. The war has just began and it is quite likely that MS will stumble at first.
It is also well-known that game consoles manufacturers make their profit from the games. Now if the hackers are able to do mod circuit for the xbox MS will whole lot more difficulties.
- mitsu0
"xbox doesn't belong in the industry. if MS didn't make their fortunes on Windows and Office, Xbox would have been the next 3do."
you took the words right out of my mouth.
traditionally, a consoles lifeline is it's 3rd party support and (hopefully) a huge library of good games.
let's go back to 1996 when Sony entered the playing field to contend with long-time game industry giants like Nintendo and Sega. Sony played their cards right by shelling out to get some of the most popular 3rd party developers out there. Also, Squares lack of confidence in Nintendos choice of staying with the cartridge format didn't hurt things for Sony either... they had everything going for them.
again, a rookie (MS) steps up to the plate, and with a commendable track record within it's own field, but the way i see it, they are going to struggle, console losses aside, because of their weak library.
anyone for another game of halo?
- ********0
it has mostly to do with market segments.
nes has becoming more younger age based console where as ps2 becoming more for adults and teens. xbox doesnt seem to fit anywhere. it is a direct match for ps2 but having less games is the problem. i think xbox does have better graphics.
overall, i find ps2 better looking.. heh.. xbox seems just big and ugly...
- kpl0
yeah. lets talk about design for a change:
xbox is damn ugly. black and green creeps me out. the ps2 looks like the monolith from 2001. xbox looks like it came from double dare.
- quamb0
everyone speaks the truth here.
MS care less for the video game market- why would microsoft want to break into such an industry? Hmmm lets see... Oh thats right, they had been struggling for years to come up with a way to put microsoft into the 'living room'. The "black box" concepts failed, so after sometime along comes the "X-Box".
Just like a computer, plugged into the TV, created by Microsoft.
But alas, clever MS dubbed thee a "video game console".
Too smart.
How long before you can turn your x-box on and do some internet banking I wonder? *sigh*
-----
And the games are boring.
And its ugly.
- d_t_p0
i believe all three will survive and prosper. nintendo isnt really in direct competition with ms and sony, as they are going for a home entertainment system and nintendo is focused exclusively on games. obviously that shows in the quality of their first and 2nd party games, and they will always be able to sell consoles based on those franchises.
sony and ms are competing head-to-head, but again, i think there will be room for both. hopefully they dont become so similar that it wont matter which one you have.
- 8dot30
everyone is knocking the xbox, but it really is a great system. it does everything right, loading games is quick, and reloading a game in progress, like halo is instant. no load time. it saves games quickly, the new s controller is excellant. and they have a few xbox only devs, like rare, bungi and oddworld.
things are looking bright.
ps, i sold my PS2 for my xbox and own a gamecube.
- Spire0
quamb you said it perfectly.
naturally, ms is in it for the money. as if windows in every house in america wasn't enough, the xbox comes along.
the gc is my honest choice with consoles. because it plays games and plays them good. they're fun and i can always depend on nintendo coming through with quality anything.
now about the playstation2, mine doesn't work anymore so... obviously i hate it. it's a good system and it has great games, but as with the xbox, it just seems like too damn much.
quality is key. i've always been a nintendo fan, even when i thought sega was the best, then i bought a 32x and realized i fell victim to one of sega's last tries at making a buck.
so... i have nothing left to love than my cutesy little gamecube who has more balls than that oversized ugly bastard of a "console" xbox.
as with design, the cream always rises to the top. im hoping ms and their marketing schemes won't interfere with nintendo's everlasting quest of providing us with what we want, fun cheap gaming.
long live nintendo!