Why the Xbox isn't doomed (it really isn't) - High-Def Digest Forums
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Old 07-30-2007, 07:56 AM
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Default Why the Xbox isn't doomed (it really isn't)

http://www.e-consultancy.com/news-bl...lly-isn-t.html

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James at GigaOm has written a post today in which he predicts that Microsoft's Xbox is doomed, mainly as a result of the Wii's success and the various 'red ring of death' issues which have affected many of the consoles.

However, we reckon James is being a little hasty in his judgement, and is not seeing the bigger picture.

While the failure rate of Xbox consoles - as much as 33% by some estimates - is hardly a great advert for the Xbox, it hasn't been enough to dent the console's popularity beyond repair, and Microsoft has built up an enviable position, both in terms of market share and in securing an installed base of millions for future multmedia plays.

By announcing that the company will cover the costs of repairs to all faulty Xbox consoles, as well as extending the warranty to three years, Microsoft has managed to turn around a potential PR disaster into a bona fide PR win.

We think that relationships between brands and consumers can be strengthened when problems are straightened out like this. It will also alleviate the concerns of would-be Xbox customers.

Microsoft has such deep pockets that it can easily afford to absorb the estimated 1bn repair bill, as well as the losses associated with launching the console.

These losses would surely be anticipated for a relatively new product that has established significant market share in a short time. They said it couldn't be done. MS priced the Xbox sensibly and has spent countless millions on advertising the console to achieve critical mass. It reminds us a little of the mobile phone operators (does anyone know how much they've lost since the disastrous spending on 3G licenses?)

At any rate, from a zero position a few years ago, Microsoft has amassed a huge slice of the gaming market, eclipsing the PS3 in the process. Sony must be kicking itself... but maybe it became too confident in the legions of Playstation fanboys (I was a true Sony man until very recently...). It also failed to implement an online strategy that made any kind of sense.

Back in January, Bill Gates said that the company had shipped over 10m Xbox consoles since its launch, while users of Xbox Live had downloaded more than 100m films, games and TV shows through the service. Read that again...

Yep... Xbox Live users can also watch movies and TV shows, and this is why Microsoft's Xbox losses can be discounted - it hasn't just launched one product, but two: a games device and a set-top box with on-demand downloads for movie fans.

In establishing the Xbox as an online-enabled set-top box, Microsoft is looking at multiple revenue streams and a stake in The Battle For The Living Room. Those online DVD rental companies had better watch out.

Once consumers ramp up the speed of their broadband connections there will be a lot more download action, and the fact is that people want to watch movies on the TV, not on their laptop, and Microsoft is far better placed than, for example, a Joost, to profit from this rising trend. And of course, it has an installed base of 10m, providing immediate reach for anything it does here on in.

Meanwhile, there's no denying the success that Nintendo has enjoyed with the Wii, but that console is aimed principally at the children's and family market (James: do you what Nintendo's current loss position is on rolling out the Wii?), while the Xbox has taken the place of the PS2/PS3 for serious gamers.

We believe that the Xbox will dominate in the years to come, with Nintendo expanding the gaming market. What Sony does is anybody's guess, but we're starting to think that the tide has fully turned against the Playstation.
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eek
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Old 07-30-2007, 08:03 AM
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By announcing that the company will cover the costs of repairs to all faulty Xbox consoles, as well as extending the warranty to three years, Microsoft has managed to turn around a potential PR disaster into a bona fide PR win.


wow that is so much BS its not even funny..a bona fide PR win, thats just bad
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Old 07-30-2007, 08:18 AM
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Originally Posted by Treadstone View Post
oh yea, I don't believe the the 360 is doomed, but this article seems like nothing but Fluff. I'm sorry the author is ignoring so much, its not even funny. He forgot to mention a Sony down loadable movie service is coming, didn't he?

He talks about how M$ gained a huge slice of the game market against Sony in the game industry with market share..HA Your right because Sony has what 120+ Million PS2's out there, 100+ Million PS1's, 25 million + PSP's and about 5 Million PS3's in the world, while M$ has what 35-40 mill combined (xbox , xbox 360)? Also that they ECLIPSED the PS3, tell me how is it possible to surpass something when that something isn't out yet? i.e. 360 was out a year ahead of time.


Back in January, Bill Gates said that the company had shipped over 10m Xbox consoles since its launch, while users of Xbox Live had downloaded more than 100m films, games and TV shows through the service. Read that again...

Your right 10 million shipped which included refurb units..Good CALL!
What about the fact that every one of those units contains faulty hardware?

Once consumers ramp up the speed of their broadband connections there will be a lot more download action, and the fact is that people want to watch movies on the TV, not on their laptop, and Microsoft is far better placed than, for example, a Joost, to profit from this rising trend. And of course, it has an installed base of 10m, providing immediate reach for anything it does here on in.


once again the Sony service is coming..but we'll forget about that


its one thing to write a pro xbox article its another thing to just ignore facts and gloss over other things.
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Old 07-30-2007, 09:01 AM
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Originally Posted by Phillysports8982 View Post
oh yea, I don't believe the the 360 is doomed, but this article seems like nothing but Fluff. I'm sorry the author is ignoring so much, its not even funny. He forgot to mention a Sony down loadable movie service is coming, didn't he?

He talks about how M$ gained a huge slice of the game market against Sony in the game industry with market share..HA Your right because Sony has what 120+ Million PS2's out there, 100+ Million PS1's, 25 million + PSP's and about 5 Million PS3's in the world, while M$ has what 35-40 mill combined (xbox , xbox 360)? Also that they ECLIPSED the PS3, tell me how is it possible to surpass something when that something isn't out yet? i.e. 360 was out a year ahead of time.


Back in January, Bill Gates said that the company had shipped over 10m Xbox consoles since its launch, while users of Xbox Live had downloaded more than 100m films, games and TV shows through the service. Read that again...

Your right 10 million shipped which included refurb units..Good CALL!
What about the fact that every one of those units contains faulty hardware?

Once consumers ramp up the speed of their broadband connections there will be a lot more download action, and the fact is that people want to watch movies on the TV, not on their laptop, and Microsoft is far better placed than, for example, a Joost, to profit from this rising trend. And of course, it has an installed base of 10m, providing immediate reach for anything it does here on in.


once again the Sony service is coming..but we'll forget about that


its one thing to write a pro xbox article its another thing to just ignore facts and gloss over other things.
So according to you the public should ignore everything good on the 360 and thumb twiddle until Sony feels like catching up? the ps2 isn't really doing much for the hardcore crowd atm either. Sorry but your patience and tolerance isn't universal.

Why can't you guys even slighty admit M$ is doing a good job. Without XBL you'd be raving over the PSN. Instead you're getting home because M$ raised the bar, and sony is matching. Get the idea? Is it so bad M$ is doing well after all?
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Old 07-30-2007, 09:17 AM
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Originally Posted by Phillysports8982 View Post
once again the Sony service is coming...but we'll forget about that.
Forget about what? It isn't out yet. It will probably arive when the tsunami gets here.

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Originally Posted by Phillysports8982 View Post
Its one thing to write a pro xbox article its another thing to just ignore facts and gloss over other things.
One pro-xbox article and the world is going to stop? Why does everything pro or good have to be about the PsPee? Sony basically had no competion with the PsPoo. Any that it did have got crushed (i.e. Dream cast, Segas,...). Xbox has been the only real competition for the Sony line up. Don't be a hater just because we have better online services and that I can see what all my friends are doing at any given second with a push of a button.
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Old 07-30-2007, 09:48 AM
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Originally Posted by Phillysports8982 View Post
Back in January, Bill Gates said that the company had shipped over 10m Xbox consoles since its launch, while users of Xbox Live had downloaded more than 100m films, games and TV shows through the service. Read that again...

Your right 10 million shipped which included refurb units..Good CALL!
What about the fact that every one of those units contains faulty hardware?
Repair units aren't counted in the units shipped to retailers (what MS calls Shipped) for the simple reason that they aren't shipped to retailers.
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Old 07-30-2007, 10:01 AM
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Originally Posted by kickingtotalass View Post
So according to you the public should ignore everything good on the 360 and thumb twiddle until Sony feels like catching up? the ps2 isn't really doing much for the hardcore crowd atm either. Sorry but your patience and tolerance isn't universal.

Why can't you guys even slighty admit M$ is doing a good job. Without XBL you'd be raving over the PSN. Instead you're getting home because M$ raised the bar, and sony is matching. Get the idea? Is it so bad M$ is doing well after all?
I think M$ did a great job with games like Halo and GOW, but how is 6 billion+ in losses a good job?
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Old 07-30-2007, 10:12 AM
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Originally Posted by Treadstone View Post

You didn't put "We believe " in bold. This is someone's assessment of the situation. I've seen the same articulate posts on the PS3 side as well. I don't think the 360 is doomed, but other than Master X none of us can see the future. Hell we don't have to wait long, this fall will show exactly where the tide will turn to or remain.
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Old 07-30-2007, 10:32 AM
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Originally Posted by Phillysports8982 View Post
I think M$ did a great job with games like Halo and GOW, but how is 6 billion+ in losses a good job?
Its a good job because the first one effects me... the 2nd one does not. I just don't see why your so pessimistic about the 360. Their are plenty of reasons why the system is great. The PS3's only strong point atm is bluray... eventually sure it'll be good, but they'll have to prove that before I go back to sony fanboy land. Even then it won't change my look on the 360, i'll just have 2 excellent systems then.

Sony lost money its first 5 years in the market right? Sure its been more than 5 years for M$ but sony didn't have a juggernaut like itself to deal with at the time. They had the saturn and dreamcast.

M$ is doing well either way you spin it. I'm just saying it helps your camp to have hardcore competition, so you shouldn't be bitter that you're currently in 2nd (i know year head start fine, but doesn't change current status). Last time I checked if you got a head start in a race you're still winning the race if you're ahead.
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Old 07-30-2007, 10:43 AM
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Originally Posted by kickingtotalass View Post
Its a good job because the first one effects me... the 2nd one does not. I just don't see why your so pessimistic about the 360. Their are plenty of reasons why the system is great. The PS3's only strong point atm is bluray... eventually sure it'll be good, but they'll have to prove that before I go back to sony fanboy land. Even then it won't change my look on the 360, i'll just have 2 excellent systems then.

Sony lost money its first 5 years in the market right? Sure its been more than 5 years for M$ but sony didn't have a juggernaut like itself to deal with at the time. They had the saturn and dreamcast.

M$ is doing well either way you spin it. I'm just saying it helps your camp to have hardcore competition, so you shouldn't be bitter that you're currently in 2nd (i know year head start fine, but doesn't change current status). Last time I checked if you got a head start in a race you're still winning the race if you're ahead.
you want to talk about spin? how bout saying for what it seems like 1 billionth time that theres nothing but Blu Ray for the ps3. I'm not going to repeat the list of games I own for it or play, because I believe your glossing over that part.

I don't care if sony is 2nd at all or 3rd or 4th or 5th who cares, the point is I love my ps3, and sales are picking up everywhere (for the most part).I'm pessimistic about the 360 because M$ currently does not have a good track record with consoles.
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