350°

Sony's nightmare scenario

ZDnets John Carroll:

To my mind, though, a Microsoft that is first to the price reduction punch is a nightmare scenario for Sony. Though Nintendo might be the current sales leader (trumping both PS3 and XBOX monthly sales), from a competitive standpoint, XBOX 360 is more the direct competitor (at least outside Japan). Both target hard core gamers, and both offer more performance and graphics capability than the lower-cost Nintendo Wii.

An even lower cost XBOX 360 with a larger selection of games and larger installed base is a situation to which Sony will not be able to respond. Sony is limited in how much it can reduce the price of the PS3. They might try, but the higher cost of the PS3 (partly driven by the costs of the mandatory integrated BluRay player) limits their maneuverability. Sony's PlayStation group has been laying people off, and though PS2 still sells well, that isn't sustainable long-term.

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blogs.zdnet.com
drtysouf216163d ago (Edited 6163d ago )

I just noticed it says this at the bottom of the article "John Carroll has delivered his opinion on ZDNet since the last millennium. Since May 2005, he's been a Microsoft employee."

My opinion is if Microsoft did drop its prices Sony would probably be forced to do the same pretty soon which if that happens lower prices for all us gamers would be a great thing so in the end we win!

Xi6163d ago (Edited 6163d ago )

most people would probably agree that msft has sony by the balls. Halo alone will help move consoles, with gta being a simultaneous release sony is waiting until 08 to get any potential console movers out. A price cut would mean sony isn't making money for a while, and since microsft is hitting that 10mill mark whcih means 3rd party developers are far more likely to keep making games for it.

BrianC62346163d ago

John Carroll is a dork. Who cares what a loser from Microsoft thinks anyway? His nightmare scenario is the Xbox 360 is a piece of junk. I can leave my PS3 on 24 hours a day and I can't even hear it. Try to do that with his junky 360 and his house will burn down. Or the noise will make him go mad.

I don't understand all this garbage about price of the consoles. Big deal, the PS3 is expensive. So what. You buy it to last five years. The way Sony designed the PS3 they should last five years. Anyone who buys an Xbox 360 better be prepared to buy a new 360 every 18 months or so. It just isn't well built.

I don't look at cost when deciding to buy a console. Sony doesn't need a price drop. All they need realy is some new big games. Hopefully that will start soon. They definitely need a lot of them for the Christmas season. If Sony does that the PS3 should be fine.

socomnick6162d ago

Brian how big is your electricity bill :P

nobizlikesnowbiz6163d ago

Yea consumers would win, M$ would most likely win, Sony would end up eating madd $$$$$. They'd be forced to drop their price, when they didn't want to, with no titles still out.

If M$ wanted to kill Sony I think they could right now. Just by dropping the price. Sure they'd eat a lot of losses, but wouldn't it be worth it for them to win this thing?

Vojkan6163d ago

Well the question is:"Are they in it to make money or are they in it to destroy Sony?" I think it's easy to answer. They are in it to make money and all this kiddy games that fanboys love, you wont see it from serious and mature people that are running multi billion dollar industry.
That is just ridiculous. They will lower the price when it suits them, not Sony.

sadiq6163d ago (Edited 6163d ago )

@2.1
they are in for both, they are currently losing money to take all of sony's exclusives and they are trying to destroy them so they will have less competetion, if sony goes out the next xbox will be crap

VendettaWFT6163d ago (Edited 6163d ago )

MSFT is in a pretty solid position right now with the X360. They would be stupid to reduce the price now and undercut Sony by price discriminating, as they are currently turning a little bit of profit at the price they sell 360's now. The 360 and PS3 are to close to each other in specs and other factors that their isnt' enough product differentiation between them for the consumer, consumers looking for a video game player that is. The only thing helping MSFT is the long list of games and it being relatively cheaper than a PS3, consumers love 'cheap'. This guy is basically regurgitating everything the market has been screaming at us ever since these two consoles have gone head to head. I can only hope Sony gets its act together and do something to save their console.

power of Green 6163d ago

Do they really have to price drop first?.

Sangheili856163d ago

Right now 360 is beating PS3. So i think there is no reason to lower its price. Untill the PS3 sales pick up when that happends which the real question is "When" i feel MS will drop the price to make it even harder for those increasing PS3 sales to increase. Games make the console but 1 or 2 games isn't going to sale 10million copies.

TruthHurts6163d ago

Sony has ALOT of popular games in their library.
thats how the ps2 sold so much.

so 1 or 2 might not but 10, 20 ,50 will sell you 120 mill.

gunnar29066163d ago

another article by MS chatterbox

Show all comments (34)
270°

Microsoft’s Surface and Xbox hardware revenues take a big hit in Q3

Microsoft just posted the third quarter of its 2024 fiscal financial results. The software maker made $61.9 billion in revenue and a net income of $21.9 billion during Q3. Revenue is up 17 percent, and net income has increased by 20 percent.

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theverge.com
darthv721d 1h ago

Xbox content + services up 62% while hardware down 31%... seems about right with the way they tout you don't need the hardware to play. People can play on their phones or smart tv or other means. I don't hardly play on my consoles directly since getting devices like the logitech g-cloud and ps portal. Which is to also say I have been playing more digital than physical because of these devices.

solideagle12h ago

you should apply in MS PR team buddy, I think you will do a great job in my humble opinion :)

Sonic18819h ago

I thought darthv72 and Obscure_Observer already work for Microsoft 🤔

dveio9h ago

MS: "Xbox services and content without AB up 1%, with AB up 62%. Hardware down 31%. In total a loss of 350 mill."

darthv72: "Seems about right."

MS: "Excuse m ..."

darthv72: "I don't hardly play on my consoles directly."

MS:

Lightning774h ago

What he said was facts. How he plays games is no concern of you. Don't get too mad about it.

Cacabunga12h ago

I can tell people like you are an absolute minority..

If service is up means their fans and fanboys accepted this model and subscribed to it. The near future you will see a big decline because the service is saturated.

shinoff218311h ago

But that's been ms for years. When things aren't going their way they try to change the way things are said. For instance console sales are down, they stop telling how many sold instead telling us how many hours spent in halo or headshots. So it makes sense console sales down just say people are playing on more devices then previous. What they won't say is how many xbox players jumped ship to ps5.

Cacabunga10h ago

Hardware sales are so bad that Sony and Nintendo are blowing the sales off the water with their hardware.

If Xbox are losers, others aren’t..
Xbox already tried everything with Xbox live then subscriptions went down so much that they had to find something else. Their fans subscribed then reached saturation rather quickly.

Hardware and exclusive games is where it’s at! Keep gamers excited, announce decent software and people will support you

itsmebryan6h ago

@shin
Well keep it simple Sony 's operating income is down 26% and Microsoft's is up 32%. No MS spin there, just facts. 😉
Cheers

romulus235h ago

Odd that a company that touts you dont need the hardware to play is already touting another console in the works.

darthv724h ago

They are not reliant on the HW but still want to maintain a presence (no matter how small) is a good thing. It shows commitment to the craft. It reminds me of SNK and how they made games for their own hardware (Neo Geo) while also making them for others because they knew there was a market to do so. They knew they would sell more to others but also sell to their own niche fan base.

+ Show (2) more repliesLast reply 4h ago
purple10114h ago

Xbox hardware revenue tanks to lowest point of Xbox Series generation

Profchaos14h ago

I'm not surprised surface is struggling they aren't relevant anymore

DOMination-4h ago

In the last two years they've started exiting the consumer market altogether. All of the newest Surface products are business models only. They can't seem to work out what they want to do with it.

XBManiac13h ago

Too expensive hardware when others offer the same or more for less? Good work, Green Team.

SimpleDad13h ago(Edited 13h ago)

"Despite some early successes for Xbox games on rival platforms, Xbox hardware is down by a massive 31 percent this quarter."
"Without Activision Blizzard, Microsoft’s overall gaming revenue would have actually declined this quarter."
"Xbox content and services would have only been up a single percent without Activision Blizzard..."
"It looks like next quarter is going to be a similar story for gaming at Microsoft, too."

That is crazy... so A/B/K is carrying the whole Xbox gaming.
Oh and Microsoft will be fine. Windows, Office and Cloud are growing with each pc purchase.

purple10113h ago

Activision: "we gonna need a bigger rucksack/backpack please"

Microsoft: "why's that"

Activision: "to carry yo' weak ass'

Profchaos12h ago(Edited 12h ago)

Top brass have also wanted to start seeing returns on the 100 billion they have put into various Xbox related moves so seeing more multiplatform games is highly likely especially from abk

It's basically saying that PlayStation is the reason Xbox is afloat right now thinks to Ps5 versions of COD

Kornholic11h ago

So basically PS and PC gamers' money is keeping Xbox on life support.

MrDead4h ago

The only growth MS will get out of the console industry is if it supports it's rivals platforms. Xbox is a pointless machine now. I can see them on a big push for live next, and they won't give up on trying to buy Steam.

+ Show (1) more replyLast reply 4h ago
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140°

Why Monopolies In Gaming Must Not Be Allowed

As of right now, there are no monopolies in the games industry, and for the sake of the medium as a whole, they never should either.

thorstein1d ago

Shouldn't be allowed in any field.

Inverno20h ago

And yet the biggest tech companies in America are essentially that. They buy up all the small comps only to kill them off and steal what they have, and if they can't buy em they bleed them to death.

jwillj2k419h ago

Eventually they’ll realize the value is with the employee not the company. Buying an IP means nothing if the people who contributed are let go. They’ll get it one day.

MrCrimson18h ago

tech is different because they buy threats and then kill them. Twitter bought Vine and did nothing with it. Despite people seemingly liking it. Could've had tiktok a decade before bytedance. go figure.

Zenzuu19h ago

Monopolies shouldn't be allowed regardless. Not just for gaming.

MrCrimson18h ago

They buy IPs not talent. That's why these buyouts never work and the IPs die. Right now it's too expensive to develop games - but I expect that to shift maybe as AI tools can make it easier. The best games have been indie games for awhile as big developers fuck their ips to death with "games as a service" -

50°

Mugen Souls Retro Review – Sexy Demon Space Adventure

Gary Green said: We have a juxtaposition of 2D and 3D visuals, flashy turn-based combat, quirky anime characters with cheeky dialogue with plenty of partial nudity; Yes, this is a Compile Heart JRPG. Whilst the engine is borrowed from Hyperdimension Neptunia mk2, Mugen Souls is more of a Disgaea spin-off. It’s not a strategy RPG as such, it merely sits within Disgaea’s ever-expanding universe (Multiverse? Netherverse? Your guess is as good as mine). You won’t find cameos though, since Mugen Souls is a franchise which aims to stand on its own two feet.

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pslegends.com