Congrats Xbox, but don't let it get to your head

This is my very first (EVER) blog post, not much of a writer so forgive me for the grammar & convoluted appearance of this.

I have been gaming for over 20+ years, started with the Atari 2600. Dabbled on the PC, moved on to Nintendo in the mid/late 80s finally becoming a full fledge Playstation fan for the last 17 years. In that time I have noticed an interesting trend. When a console company becomes so popular for many years that success can be a detriment. Often leading to either drastic changes or in some cases ceasing to exist. Every console company has experienced this at one time, so this is a lesson to Microsoft & their fan base...it can happen to you too.

First of all I will start with Atari. In the early 70s to late 70s no other console was as successful as the Atari 2600, that thing sold millions. Unfortunately because of internal power struggles, increase competition from home PCs, & the crash of 83 (look it up) the losses were too much. Eventually over time the console division of Atari ceased operating.

During Atari's troubles Nintendo single handedly saved the US gaming sector with the release of the NES. Nintendo was very popular in their home country but when it reached American shores in the mid 80s the gaming console was alive again. Soon after another company by the name of Sega saw the resurgent market in the US & they too joined in with the Master System. Sega's system was the superior platform but Nintendo was aggresive in its marketing & Sega marketed the Master System with ineffective results. (sound familiar).

Skip ahead to the early 90s, Sega was not to be denied though they released the Genesis around the same time Nintendo put out the SNES. Sure Nintendo had their Mario but Sega introduced Sonic to the masses pitching him as 'cooler' than Mario. The masses bought that & Sega captured the majority of the market share (over 65%) from Nintendo. This however was the last time they achieved that. Sega started releasing over priced add-ons for some reason to moderate but overall poor sales.

Having lost market share to Sega & Sega about to release the CD adapter, Nintendo turned to Sony to counter. We all know the story by now so I will skip over that. All I have to say about that is for the better part of the 80s Nintendo dominated but they were challenged by a rival company & thus resorted to drastic measures. This was the start of Nintendos fall from the top.

Sega fall from their short stint at the top was fast & hard. Sony entered the console sector after 'you know what' & with stellar marketing they began their quick rise to the top while Sega & Nintendo struggled to keep up. The original Playstation easily crushed the the Nintendos N64 & Sega's Saturn. Sega tried once again with the Dreamcast but it was the last console they will ever make.

Sony was at an all time high with the success of the PS1, they continued that momentum with the PS2. Nintendo again resorted to drastic innovation with the Gamecube & Microsoft decided to throw their hat into the ring with the original Xbox. Again Sony easily obliterated the competition taking over 80% of the market share. This in my opinion is where Sony began their series of 'f**k ups'...I will get to this in a sec.

After basically being embarrassed for two generations Nintendo decided that since the 'core' gamer was lost they focused on the more family (everybody) crowd with the Wii. It turned out to be a successful decision though it was not considered to be a next gen machine. In my opinion the Wii was released as a gamble but a gamble that would make up for the failures of the N64 & Gamecube.

With a taste of the console market fresh in their heads & the desire to be a step ahead of Sony's new machine, Microsoft to an extent rushed the release of the XB360. It was no doubt a business decision & you know what it worked. One thing Microsoft does well is they know their fan base very well. Even with all the problems the 360 had they knew their fans will continue to support it. It is the same with Windows...every iteration has problems but cause of aggressive marketing it continues to do very well. We are near the end of this generation of consoles & the the 360 continues to sell, even without a lot of 1st party games the system still leads the market share. They have relied on 3rd party support & since they are the market leader they have the 'right' to dictate how games are made for their system. It is the same way as when the PS2 was leading, Sony had the say in game development.

Anyways back to Sony & their fall. Some due to competition but mainly due to Sony's over confidence after the success of the PS2 which led to poor decisions in creating the PS3, poor marketing (they use to be so good at it with the PS1 & PS2), & over confident management (i am looking at you Ken Kutaragi). In my opinion Sony had the opportunity to lead this gen with the PS3, they had everything in their favor with the success the last 2 gens, but simply putting it "THEY F****D UP!" There is no denying they made some dumb moves this gen that cost them big time. The ball was in their hands & they simply gave it away. Now they have spent the majority of this gen trying to dig their way out of the hole they put themselves in but in the end it may be too late.

So the point I am trying to get across is pretty cliche if you think about it. It happens in sports, schools, business...when you are the top dog for a very long time EVERYBODY is gunning for your position. What you do to stay at the top can either keep you there or make you come crashing down fast.

I am a Sony fan boy to an extent so it pains me to say but 'Congratulations to Microsoft & their fan base' you made it to the top this gen but remember next gen you guys can easily be where Atari, Sega, Nintendo, & Sony is at one time.

Hitting Rock Bottom.

*Sorry for the long post but I felt it was necessary to get this point across. Being a Sony fan is hard this gen I have to admit but I hope this will at least keep people thinking about what they say...Like the old saying goes "What goes around, comes around."

[Chaostar]

Yeah, Sony made some mistakes at the beginning of this gen, although a lot of them were out of their hands such as manufacturing delays from makers of out-sourced components.

However where hardware is concerned Microsoft has made their fair share of mistakes too but had the luxury of an early start to fall back on. Take the original Xbox, excellent build quality, HHD as standard, reliable. The 360 is a definite step backwards in all those respects but it's because of this corner cutting that MS were able to get the early launch lead that was so necessary to their success.

Microsoft have bought, marketed and maneuvered their way into yet another market, which has brought many competitive advantages but also led to DLC culture and online fees. The question is, are MS like a dog chasing a car (thanks joker) or do they actually know what to do with success they've managed to acquire. Their recent focus is worrying to the core gamer but 3rd parties will continue to support the 360 because of the sales, however what will happen when new hardware comes round?

Anything can happen and you have to ask yourself the question, will MS have the same success if Sony don't repeat their mistakes/misfortunes and both companies launch next-gen consoles within 6 months of each other?

[izumo_lee]

Thanks for commenting Chaostar.

To me Microsoft is doing what Sony did the last 2 gens. Even with the arguably weaker hardware they are able to have greater sales than the PS3. Why is that? Marketing. Microsoft marketed the 360 to the masses like no other this gen. Even with all of its shortcomings their marketing division was able to cover up all of them. Sony use to be able to that so well the last 2 gens but for whatever reason they lost that ability.

What i am interested in seeing next gen is now that Microsoft is pretty much the leader in the HD console will they have the same 'nitpicking' that Sony received this entire gen.

[JOHN_DOH]

XBOX isn't really top console though. You make it seem like they destroyed PS but they sell about the same. I don't think it's the same with windows either because they don't really have any competition there.

[darthv72]

Every major console maker that was lucky enough to release a 3rd console has felt the sting of trying to out sell their previous more popular system.

These companies and systems are listed in release order.

Atari: pong, 2600, 5200, 7800, jaguar. The most popular unit was the 2600. Their 3rd system (5200) failed to outsell the 2600 as well as their other systems didnt come close either.

Sega: master system, genesis, saturn, dreamcast. Sega most successful system was the genesis. Even with the additions of the 32x and cd it was their 3rd (saturn) that failed to capture the the same marketshare their genesis once had. Dreamcast was their last chance and ultimately they pulled the plug.

Nintendo: NES, SNES, N64, GameCube, Wii. Now this one is rather interesting as their NES was wildly popular. The SNES took a little time but did eventually beat out the genesis in the 16bit days. Their N64 didnt do as well but faired better than Segas Saturn. Gamecube was a good system but it too didnt beat out the snes. The wii represents a "?" in thie 3rd console curse idea. Even though it isnt their 3rd console it has managed to really capture what was once the popularity of the nintendo name. Like a resurrection of sorts.

Sony: PS1, PS2, PS3. Sony turned heads when they released the original PS1. Besting Sega's saturn and nintendo's n64. Yet it was their 2nd system, PS2, that really put them over the top. It cant be denied that Sony's 2nd outing really brought success to the brand. It may be too early to say their 3rd system is as cursed as other 3rd systems from other prominent companies but it certainly has not exploded in the same way sony saw the PS2 when it came out.

So now we look at MS and the 360 is the 2nd system. Falling in line with other 2nd systems as being more successful than the 1st's it does bring to question....will their 3rd suffer the same fate as other 3rd's? Its as if by the time the 3rd system comes around, consumers are interested in seeing what another company might have to offer.

We can see by looking back at other companies that success didnt "go to their heads" but then again, they didnt have the marketing prowess as MS does. It could be said that the success of something is based on how committed the company is to MAKING it a success. No doubt companies like atari, sega, nintendo and even sony were juggling many things at once during those times. Spreading themselves thin in the marketing department and relying on consumerism to keep thing going. Things such as brand loyalty and name recognition.

MS and their quick to give up on the xbox makes many think they were going to do the same thing to the 360. Here it is goin on its 7th year and MS has remained committed to making the platform a success. Will they do it for their 3rd? That question remains to be seen and perhaps they could be the first 3rd console to break the curse.

Its easy to look at them and how they were outsiders coming into this business. Then again....I seem to recall similar sentiment when Sony joined the club. People said sony didnt belong and yet people gave them a chance and we have the playstation brand taking its place amongst the greats in this business. People need to look past the "corp" that is MS and see the 360 as being a success that deserves its place amongst the greats as well.

[Ravenor]

Wall of text discredited in the first few lines, the 5200 sold terribly because it didn't produce a huge improvement over 2600 games and the hardware was absolutely AWFUL. The Jaguar was also a horrendous mistake, and was also released at a time when I could feasibly lump it in with other garbage consoles of the time.

Seriously, things are different now then they were even 10 years ago.

[lex-1020]

Did you actually read the first few lines of his statement? He said the 5200 sold terribly. He was stating the companies have terrible 3rd consoles.

[Mikhail]

Correct me if I am wrong, isn't this the first time the Xbox outsold the PS3 worldwide? and Pls. dont call me a fanboy for I have a 360 and PS3 right now as I hae always enjoyed multiple consoles per generation.

The gap between 360 and Ps3 which is about 4 million is too small to call it a leader. The leader of this gen is the Wii. It proved that power is not everything for a console to be successful.

However, both the 360 and PS3 have an edge right now because they are more future proof as they are now more than consoles. The PS3 and 360 can now be considered as a media hub and are backed by two companies with different product lines that can easily have synergy with their consoles.

This gen belongs to the Wii followed by both the 360 and PS3 at 2nd place. Yet, Wii is at a disadvantage next gen because they are not "future proof enough". The masses are now on the smartphone era wherein they expect their gadgets to perform a multitude of functions. MS understands this with their Windows 8 synergy and Sony is doing it right now with their new SEN integration.

[lex-1020]

You are correct (sorta). The first Xbox was a failure (good console, bad sales). The Xbox only outsells the Ps3 in North America and only because it had a year without competition. THe Xbox was released a full year before the Ps3, leading to the 4 million sales more. If you look at the sales from the year the PS3 was released you will see that it outsold the Xbox every year world wide.

[NeverEnding1989]

This blog has more to due with Sony's fall from grace. They destroyed with the PS2, but are only just hanging in there with the PS3.

If this gen ended right now it would be a major win for Nintendo and Microsoft, but a loss for Sony. Over 50% of there install base switched consoles.

[AtomicGerbil]

There seems to be a common misconception on this site that the 360 has obliterated the PS3 in sales and that because of this Sony are a shadow of their former selves. In truth the sales gap between the two is near identical now than when the PS3 launched. So in essence those that believe Sony are doing badly this generation should also believe that Microsoft are doing the same.

I'll agree at this point that Microsoft increased their market share this time around, but it must also be remembered that they had the head start and robbing market share was inevitable.

Sony did make mistakes, and haven't aggressively marketed their hardware and software, even so, they are still keeping up with the sales of the Xbox with the seemingly bottomless budget of Microsoft's marketing division.

Now, contrary to what I have written here I don't actually care about sales, but I thought it necessary to express my concerns for the numerous inaccuracies I witness on N4G.

[LightofDarkness]

I'd also like to point out that in the grand scheme of things Sony are doing somewhat badly this generation, especially if you consider the momentum they had leading into it and their previous dominance. They went from being at an untouchable peak to last place in one generation. That's not considered "doing well" from any perspective (unless you view life through rose-tinted glasses). They had to fire Ken Kutaragi for nearly tanking the brand with the PS3, if it weren't for Kaz Hirai it would likely be in an even worse position than it is now.

The thing is, Microsoft did something quite incredible this generation in equaling and even surpassing the previous champion. Nintendo pulled out a miracle when no one was looking. Sony's problems with the PS3 were 1) complacency (especially in marketing), 2) overly ambitious hardware design and 3) lack of strong development tools and support early on.

We can sit here all day and talk about how the PS3 is so much better now than it was when it was released, but that initially lackluster image had an important impact on the console throughout its life cycle. You know what they say about first impressions: you only get one.

And think about what that image was: the PS3 started off looking like the most expensive console (by a wide margin), with less than and much of the same games as the Xbox 360 (only they often looked better on Xbox 360), and a few exclusive titles that nobody was terribly interested in. That roughly sums up the first two years of the PS3's life cycle, and it how the man on the street came to regard the PS3, like it or lump it. Yes, things are different now, but shaking off negative connotations is hard work.

Think of it like this: if the PS3 was a sports team, who went from being champions to last place in one season, would you congratulate them for being relatively close to the team just ahead of them? The guys who moved up from the minor leagues just this season? I don't think anyone would, unless they were the most deluded and die-hard of fans.

I like my PS3 quite a bit, I certainly play it more than my 360 (I play PC way more than any console), and I certainly know how much it's changed over the years. It has tonnes of great games and is certainly home to the better looking console games of late, but people by and large do NOT know this. They still think it's the expensive one (even though XBL costs €50 per year), with less games and a few exclusives that they don't really care about. They will buy the Xbox because the other kids have one and they seem to love it so much (even though Call Of Duty can be played on either console). It was a game about popular perception, and MS can only be bested by Apple in that regard.

[Tarantino_Life]

So are you saying that Microsoft has changed gaming landscape and are dominating the games industry because of being around 3.5-4 million ahead after releasing a year later? Lol. Here is the thing. PS3 has outsold 360 ever since its release in terms of worldwide sales. As of today 360 has sold 55 million to ps3 - 62 after ps3's release. So while Sony made mistakes and conceded their market share that does not in any way show 1) 360 is a stronger brand and 2) 360 dominated this gen. If outselling the 360 worldwide since its release still qualifies as 360 dominating the industry then you need to get your prespective right on what dominating and doing well means. There is also a huge difference between Sony and Microsoft. Sony are yet to fail and by that I mean give a console which lost support, which has not to many great games and sell under 20 million. Nintendo has failed, Microsoft failed with the original xbox but Sony inspite of all its mistakes has not made a home console yet that failed.That just shows the power of the brand. IMO next gen could be any one's but I would put my bet on Sony every day of the week based on their track record. We will see who claims the crown next gen. As of this gen only Nintendo can claim they won the war. Microsoft claiming so would be extremely laughable..

[Noticeably_FAT]

Microsoft paid attention to what the competition was doing right last generation. They saw Sony dominate the market with an affordable console with great 3rd party support. So they took that and ran with it. A less expensive console with great 3rd party support and then they added to the success of their own online plan.

Even though Sony had so many more consoles sold, the original Xbox had far more online enabled games and online users. Then when this generation started and Nintendo jumped ahead, they decided to try motion controls too, now by the end of this year there could be 30+ million Kinect's in people's homes.

I don't think Microsoft will make the mistake of releasing a very costly console again, because they learned from the first Xbox, which wasn't going to be able to turn a profit until they sold like 50 million of them, which never happened.

What Microsoft has done this generation however is amazing, they have led the way to longer cycles, which is good on a lot of people's wallets and they have successfully navigated the "core" and "casual" market. The core fans will still get their Halo, Gears, Forza, COD, Battlefield ect... while the casual can do some motion controls. So everyone wins.

Dominating North America is the key, because they are the ones who buy the most when it comes to consoles and games.

[DragonKnight]

"A less expensive console with great 3rd party support and then they added to the success of their own online plan."

-At the expense of developers who had to create games for two different models, and at the expense of core gamers who are begging for some exclusive content that really showcases the 360 and what it's about. Yeah, they did great this gen in establishing their online presence, but at a great cost.

"Then when this generation started and Nintendo jumped ahead, they decided to try motion controls too, now by the end of this year there could be 30+ million Kinect's in people's homes."

-Meaning they lacked focus and just decided to switch everything around to follow the quick flash bucks of the casual market, completely disregarding the loyal long term money of seasoned and devoted fans.

"they have led the way to longer cycles, which is good on a lot of people's wallets and they have successfully navigated the "core" and "casual" market"

-This is where I have to say wtf. They led the way to longer cycles? Excuse me but, isn't the PS2 still being sold and supported? Sony developed the 10 year plan a gen ago. THEY lead the way in longer cycles, not MS. And if by "successfully navigated" you mean tried the core route once then completely shifted and abandoned that route in favor of the casual market, then yeah you'd be right.

"Halo, Gears, Forza, COD, Battlefield ect... while the casual can do some motion controls. So everyone wins."

No. It isn't winning to be given the same games over and over and relying on 3rd party support to keep you afloat. MS is defining the 360 as a 3rd party console for families by the way they release games. Halo defines the Xbox brand, not the 360 console. Gears is over, the last game in the trilogy was released and there is no guarantee that the next game, if ever, will be exclusive. CoD and Battlefield also do not show anyone what makes the 360 unique.

"Dominating North America is the key, because they are the ones who buy the most when it comes to consoles and games."

Doing well across the world is better than dominating North America. In 5 years the 360 sold 55 million consoles. In 5 years the PS3 sold 62 million. That proves right there that good global sales trumps good sales in one market.

MS pulled it off this gen and did really well, that is non-debatable. But how they did it shouldn't make people happy. They essentially created the greed mindset of this gen. Charging for absolutely everything, and making fans believe it's a GOOD thing and having them eat up every cost with a "thanks Microsoft for making me pay twice to use my internet connection." That is a good thing for MS and MS ONLY not the consumers. MS have not been good for the consumers at all, and yet there is so much blind favortism and devotion it's kind of scary.

[Hyperbomb69]

They may have won in sales, but they did release the console a year before and they did have the best games for a while, even though I absolutely hate the 360, I will admit that I considered getting one early on. Im a one console kind of person since I usually cant afford more than one. Last gen every console had something to offer, every console had great games and more importantly, a reason to buy it.

This gen however, with Xbox relying on multiplats to get by, there is really no reason in getting one. The PS3 has better exclusives, new eclusives, multiplats are usually superior or at least they should be.

I think as a gamer, time really determines the success of a console, wait 10 years after the next gen and look back and see what every console has to offer and the quality of the console itself, only then will you realize if a console should have failed or not. I look back and see the dreamcast and I think it was awesome and shouldve sold more than it did, the playstation 2 was the best in its gen, and the PS1 was the best in its gen as well... in 10 years you should think back, and see all 3 consoles from today and see what each has, then you'll know that the xbox 360 (if its not RROd'd by then) was made redundant by the PS3.

Also good luck next gen xbots, Gears is over and Halo should be very close to being over. Enjoy your kinectimals I guess....

[izumo_lee]

@ JOHN_DOH & Flatbattery

Yes I know the sales of the 360 & PS3 are close but still Sony is in unfamiliar territory, that is looking up at the competition. Remember early on the 360 had a huge lead in sales (thanks to coming out first & marketing). I applaud Sony for closing the gap but this entire gen they have used a lot of resources just to stay close. If & when they do surpass the 360 it may me already too late since the next generation of consoles is around the corner.

The Wii is technically the market leader but do any of us really consider it to be a so called 'next gen' console. Like i said in my blog the Wii was a gamble that paid off for Nintendo. They were losing the 'core' gamer to Sony & Microsoft so they brilliantly targeted the casual crowd. It will be interesting with the Wii U how the 'core' gamer will react to the machine & if they will lose the casuals because of their change in philosophy.

My reference to Windows (all iterations) is that even with all the bugs & faults the OS has when it launched, Microsoft's marketing was able to mask them, as they have done with the 360.

Look like I said I am a Sony fan boy but even I can accept that Microsoft has had the better business plan this gen than Sony. They basically took a page out of Sony's book the last 2 gens which is why they have been so successful this gen.

Good for Microsoft but next gen I wanna see if they will face the same kind of 'nitpicking' that Sony has endured this entire gen. Sure some was self inflicted but it seems no matter what Sony did this gen it was meticulated dissected.

[s45gr32]

who won this gen inconclusive. Some may say why now the wii did outsold both PS3 and xbox 360 in retail sales that is. But in overall sales inconclusive the playstation 3 was sold not only to consumers but also to the scientific community, U.S. air force and federal agents, etc. it could be exported or imported legally to those europeans/australians that got tired of waiting for the PS3 to launch in their region. Remember the third console of sony got released on spring 07 to those regions. so those sales did not get accounted for. That's why I say inconclusive.