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When do you think Microsoft will react to potentially losing next gen battle?

As some people have mentioned: being in second place isn't a failure. The Xbox One can still be a successful console that makes money and sell less than the PS4. Of course the guys at MS would want it to have the highest market share as that's just how business is.

Let me put it this way: do we look at the PS3 as a failure? Because Xbox 360 was ahead of it, but the PS3 still did well enough and was a great, worthwhile console. I imagine the Xbox One will be like that this gen; it will sell less but it will still be a worthwhile console to own.
 

Duxxy3

Member
As some people have mentioned: being in second place isn't a failure. The Xbox One can still be a successful console that makes money and sell less than the PS4. Of course the guys at MS would want it to have the highest market share as that's just how business is.

Let me put it this way: do we look at the PS3 as a failure? Because Xbox 360 was ahead of it, but the PS3 still did well enough and was a great, worthwhile console. I imagine the Xbox One will be like that this gen; it will sell less but it will still be a worthwhile console to own.

Many people do, yes. It lost a huge chunk of market share compared to what the PS2 achieved, and it lost sony a ton of money.
 

Freshmaker

I am Korean.
As someone who really has no interest in the X1, and still harbors a lot of dislike for the stuff MS tried to pull the few weeks leading up to and the week after E3...

Lost is a rather odd term to apply to a console race. As long as a system draws enough of a userbase to pay the bills and draw developers, whichever platform ends up selling more really isn't a huge deal save for the company that drew the bigger base.

I don't really see evidence that the X1 has failed in any way that failure can usually be applied to such a race. It's selling well, just not as good as the PS4. Given it has a much smaller rollout in fewer countries, it's doing ok in its target markets.

Right now, it looks more like a SNES vs Genesis kinda race. One might come out on top, but it's not going to matter to the people that want to play games.
 
I think we'll see Microsoft making some changes come E3. Off the top of my head I wouldn't discredit a $400 Kinect-free SKU with a game packaged in (Titanfall?) to try and up consumer demand. They are definitely not looking as bad as the Wii U, but it kind of puts Microsoft where Sony was last generation. Their console is competitive, but the price just isn't right. The difference here is if they dropped the Kinect requirement they could be priced competitively, and move a lot more units. Kinect is a piece of crap with no software support that nobody wants to pay an extra $100 for.
 

Zing

Banned
I'm not clear why one platform selling more than the others means that the others are "losing". To put it another way, why are raw sales numbers the metric for success? Why not revenue, profit, customer satisfaction, or any other aspect?
 

daman824

Member
As long as they make a profit off of the XB1 overall, they will be fine and will probably continue making games. And if consoles are still in demand, they will make another one.

They will definitely react to Sony beating them in sales. There will be a price drop at e3. And most retailers have already dropped it to $450. They also have changed directions. People can claim to not believe their claims to a new game centric focus. But lying would only hurt them worse. They got rid of Mattrick and Balmer for a reason. And they put Spencer in as head of xbox for a reason. Doing all of that just to get a year or so of positive PR until fans realize it was all a lie isn't worth it. They saw that they can make more money focusing on games for now. So that's where they are staying for the foreseeable future.

I am also sure that a lot of people working in the game division are quite upset with some of the decisions made. But they aren't suffering from a rrod like fiasco and are selling decently when compared to the 360. Any market share they lose they could easily get back next generation. Most people don't attach to companies. Release their next system at a lower price than their competitor and put some powerful parts in there that challenge their competitors box. Then get good games and good PR from the beginning.

It's not like lost market share is gone forever. If microsoft makes "x" amount of profit based on how much they invested into the xbox one, then they will make another system. They aren't going to go "Dang, we made a lot more cash than last generation and are well in the green. But we fell behind Sony in the U.S. again. Scratch the ideas for the next system, better release another tablet.".
 

Chettlar

Banned
They should do what Sony did and start seriously thinking about their next product ASAP, while the hard lessons are freshly memorable.

Well when Spencer jumped in and started immediately shouting "games, games, games" people accused him of just copying Sony.

You can't win.
 

Duxxy3

Member
Well when Spencer jumped in and started immediately shouting "games, games, games" people accused him of just copying Sony.

You can't win.

Short of going back in time, there isn't much that Spencer can do to reverse the xbox one's direction without writing off a huge chunk of R&D and some poor decisions on spending (NFL).
 

daman824

Member
Short of going back in time, there isn't much that Spencer can do to reverse the xbox one's direction without writing off a huge chunk of R&D and some poor decisions on spending (NFL).
This is factually incorrect. And history is not on your side.

The direction is constantly changing and reacting. That's competition.
 

Huff

Banned
It's not a switch you just flip and get automatic results.

These companies are constantly planning and trying to react to the market
 

Chettlar

Banned
Short of going back in time, there isn't much that Spencer can do to reverse the xbox one's direction without writing off a huge chunk of R&D and some poor decisions on spending (NFL).

Well, um, he did say that he thinks a lot of the decisions were bad ones.

One of my favorite quotes by him is (paraphrased) "You know I think that the apps and snapping stuff are great and all, but none of those make any sense without the context of games."

It's like, yes! He gets it. Why do I care to get a gaming console that can snap something to the side if I haven't got the main thing there? He's basically saying, why sell a console on side dishes? None of that makes sense without the main course.

That's a hugely different take on what they had been doing previously, and the quote is worded like an argument too. As in, why would he be saying "without games, that makes no sense" unless there had been people focusing more on Apps?
 
Any time I'd imagine. What is it at now? Pretty big right?

I think you're trying to make the point that Sony managed to come back with the PS3 as its ahead? I do believe there was at one time a 6M - 8M that the PS3 has managed to overcome but PS3 had several territories that it sold better in even if it was being outsold WW, namely Japan and mainland Europe. Where is the XB1 selling better?

Personally unless things get much worse for the XB1, I think it will carve out a reasonable 2nd place at 50 - 60 million WW by the end of the generation and be profitable for MS but I can't envision them ever selling more WW than Sony will with the PS4.
 

daman824

Member
Care to explain?
Why do the console makers have so much ram reserves for the system OS in the ps4 and xbox one? If they already know what they are going to do, why wouldn't they just know how much ram they need and give the rest to devs?

Sony and microsoft completely changed directions throughout last gen.

Companies react to what other companies do. And that can sometimes mean dealing with losses for better profit in the future. And neither of these companies know what their systems will look like 5 years from now. They constantly change to meet the demands of the customer. How many SKU revisions? Does the ps3 still have BC?

Compare a fat 360 on launch day to a 360slim today. Compare the os from 2005 to the os today. And do the same for sony. Both companies changed directions. They went with the flow. Thats why they both have so much ram reserved. Because they don't know what may or may not need to use it in the future.
 

Duxxy3

Member
Why do the console makers have so much ram reserves for the system OS in the ps4 and xbox one? If they already know what they are going to do, why wouldn't they just know how much ram they need and give the rest to devs?

Sony and microsoft completely changed directions throughout last gen.

Companies react to what other companies do. And that can sometimes mean dealing with losses for better profit in the future. And neither of these companies know what their systems will look like 5 years from now. They constantly change to meet the demands of the customer.

I was speaking more to the idea of cutting kinect out of the box. It would be one thing to change the amount of kinect's produced, another thing entirely to write off the years of research and development of a product that was removed after a short period.

I think that Microsoft made the safe bet with DDR3/ESRAM, and I won't fault them for that.
 

daman824

Member
I was speaking more to the idea of cutting kinect out of the box. It would be one thing to change the amount of kinect's produced, another thing entirely to write off the years of research and development of a product that was removed after a short period.

I think that Microsoft made the safe bet with DDR3/ESRAM, and I won't fault them for that.
Oh for sure. Dropping kinect is going to be a last resort. They will drop the price to $400 first. But their commitment to the xbox one as a multimedia device as opposed to a gaming system will change.
 
I think you're trying to make the point that Sony managed to come back with the PS3 as its ahead? I do believe there was at one time a 6M - 8M that the PS3 has managed to overcome but PS3 had several territories that it sold better in even if it was being outsold WW, namely Japan and mainland Europe. Where is the XB1 selling better?

Personally unless things get much worse for the XB1, I think it will carve out a reasonable 2nd place at 50 - 60 million WW by the end of the generation and be profitable for MS but I can't envision them ever selling more WW than Sony will with the PS4.

I meant NPD North America wise. But ya, I agree with you. They're second WW for sure.
 
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