12-15-2007, 01:44 PM | #51 | |||
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Actually, everyone agreed there could be a blip this month, but everyone argued against your statement that they would catch up by 2009. Which involved them outselling the 360 by 300K+ per month. Which did NOT happen this month.
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12-15-2007, 03:29 PM | #52 |
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Price is still a major barrier when it comes to mass consumer electronics. Sony has made the adjustments they need to make in order to make the PS3 competitive. The question is, when is Microsoft going to respond aggressively to counteract Sony's moves.
I'm sure the Home & Entertainment division has been ecstatic about finally posting profits with the gaming division, but I can't imagine they're so short-sighted as to not see that this is just a nice battle victory, but the war itself is far from over. The major money in this business, at least for the business models that Sony and MS are using, is in the license fees they get for every game sold on their platforms. Yeah, eventually in the life cycle the cost of the parts drops below the price drops on selling the hardware and they no longer lose money in that front, but that's secondary to building a huge install base of units and reaping the rewards of millions and millions of games sold for that platform and the licensing fees rolling in. While Microsoft may be ecstatic about the many many missteps Sony has made in this generation of the console wars, they are also making mistakes themselves in not taking greater advantage of the gifts they've been given by Sony. I'd bet that they are confident they have a strong enough lineup of games and momentum that they will keep their current pricing through this holiday season, but I would expect that in the new year they will drop their prices and try to slow/reverse the momentum Sony has gotten from their price cuts. |
12-15-2007, 03:29 PM | #53 | |
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FWIW the Zapper counts as an accessory despite coming with a game that people seem to like more than the hunk of plastic it comes with. Wii Play counts as a game despite most people buying it since it comes with a Wiimote. Wii Sports doesn't count though, despite being the reason many people bought the Wii. Current gen console tie ratios I found on NeoGAF if anyone cares: PS3 - 4.01 Wii - 3.86 (as stated, Wii Sports not included) 360 - 6.85 360 (at this point last year, negating the one year head start) - 5.2 The Wii actually had higher software sales in the US during it's first year than the 360, it's just that the hardware sales are so much higher that it lags in the tie-ratio. Last gen approximations- PS2 ~ 13, Xbox ~ 10, GameCube ~ 8 |
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12-15-2007, 09:15 PM | #54 |
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So is the scarcity of the Wii a marketting strategy? Or are they just unable to keep up with demand?
I can see intentional market scarcity being a boon at launch with the media buzz and all. I don't get intentionally throwing away sales that would be booked in huge numbers more than a year after release. I say this, as last weekend I sat out infront of a Toys R Us for 2 hours in freezing temperatures to get my kids a Wii for Christmas. |
12-15-2007, 10:30 PM | #55 |
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I think at this point, it's a combination of stubbornness and bad contracts (i.e. they don't want to change how their supply chain works). I can't think anyone at Nintendo is happy about shortages that are costing them literally millions of units this Christmas, when they could be making a huge sales dent.
SI
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12-16-2007, 02:50 AM | #56 |
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11 people sitting outside Best Buy at 12:30 in the morning when I left work. Craziness.
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12-16-2007, 06:59 AM | #57 | |
lolzcat
Join Date: May 2001
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Target here gave out word that they would have 54 this morning.
They open at 8:00. I wasn't planning on fighting the line, but I woke up at 7:00 and I figured I'd go for shits and giggles and see if there were any tickets left. I talked to a guy in the parking lot that was there at 1:30... He got number 21. Good god, just not worth it for me.
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12-16-2007, 09:18 AM | #58 | |
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Quote:
I can throw up a few posts if you want of people who thought there was no way that the PS3 would pass the 360 this month. If you agreed that the PS3 would pass the 360 this month, you were the only one. I never said they would outsell them by 300K this month worldwide. |
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12-16-2007, 09:35 AM | #59 |
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You know what is really crazy? look at November games sales in Spain:
Total
Seriously now, wrestling is becoming huge all the sudden in Spain. We had no have wrestling in TV since the 80's with Hulk Hogan, the Ultimate Warrior etc. Past a year a new TV company brought it back again and it's becoming the most watched show by kids in Spain. Now on a note more related to the thread title, notice not any 360 game in the top 10 list, Microsoft is doing nothing here, this is clearly Sony territory as has always been, with Nintendo getting close.
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12-16-2007, 09:49 AM | #60 | ||
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I didn't say they'd outsell them by 10M units this month. Link? I said they would pass the 360 in 2009. I disagree that it will be a one month anomoly. The PS3 will outsell the 360 worldwide in December as well. Microsoft has a problem in Europe right now in regard to worldwide sales. They are getting beat soundly with the sales numbers in Europe now reaching levels similar to North America. Wii supply problems are also evident in N/A. The Wii is at a crisis point right now. They are giving away crucial sales because of their supply shortage. Their at the point where they risk losing customers who simply stop looking for Wii's. Judging from Japanese Wii sales, it appears that they are receiving more Wii's, thereby hurting supply in other regions. PS3 needs a Japan boost with Gran Tursmo coming this week. Here are the early sales numbers already in for the first week in December: Quote:
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12-16-2007, 09:54 AM | #61 |
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12-16-2007, 09:58 AM | #62 |
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Nintendo has some major issues. They could easily sell 600-700K units a WEEK if they weren't supply constrained like they are right now. It's Economics 101 that you don't want to supply constrain a market for this length of time. At some point, consumers begin looking at other alternatives with a realization that they won't be able to get that product. With the 360 and PS3 having lower prices, they're a viable alternative for roughly the same price. Last edited by Mizzou B-ball fan : 12-16-2007 at 10:00 AM. |
12-16-2007, 10:16 AM | #63 |
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The problem is that for a lot of people looking for a Wii there are no other alternatives. There just isn't anything else like it on the market right now.
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12-16-2007, 10:46 AM | #64 | ||
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Quote:
Even you can see that, can't you?
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12-16-2007, 11:52 AM | #65 |
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It is clear that they are sinking. This is a company in trouble. They have sold out their console in every store for over a year now. If it isn't obvious they are going down, I don't know how to make it more clear.
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12-16-2007, 12:09 PM | #66 |
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Guess its time for me to go bury my Wii in the backyard and wait for the inevitable collapse of the Wii market. Y2K was just the start, we're going to need Charlie Steiner to lead us out of this mess.
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12-16-2007, 01:20 PM | #67 | |
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Quote:
I would still take the supply constrained Wii sales numbers to the PS3 (or 360) no constraint sales numbers. All the supply numbers are doing are making this an ass kicking rather than an ass whooping. That isn't so bad. |
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12-16-2007, 03:20 PM | #68 |
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I actually see the point that Mizzou is making about the Wii.
I'm on the Wii bandwagon. I'm not in the market for a PS3 or a 360. I only bought a PS2 after the PS3 came out. I really have no business in this thread. I think Mizzou has a point...I'm not sure I'd call it a crisis, but Nintendo has actually driven some customers off. I know because I was faced with being unable to buy a Wii, and was very close to making the 360/PS3 shift. I know I'm not alone in wanting to buy my kids a game console, by allowing it to become SO hard to buy a Wii Nintendo is opening themselves up to not only losing a sale, but in driving up the sales numbers for the competition. How much it is costing them is debatable, but the fact that they have dropped the ball, and that it IS costing them shouldn't be. |
12-16-2007, 03:23 PM | #69 |
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Driving a few customers isn't going to be that big of a deal, and they have tried increasing their output. It isn't as if you can just throw up a new manufacturing plant whenever you want to. I think the hype that is generated by the shortage gains customers anyway, so it probably balances out.
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12-16-2007, 03:37 PM | #70 |
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Still trying to figure out why some people care so much about who is #1, 2, or 3 unless you work for that company......
Even then, nobody is losing a job over this soon.
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12-16-2007, 06:41 PM | #71 |
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I think I mentioned this in another thread before, Toys R Us. They are selling them on sundays. The local one to me had 102 today, I got in line at 715, and I was #59.
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12-16-2007, 06:55 PM | #72 | |
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Playing "armchair CEO" isn't all that much different from playing "armchair Quarter Back". Rather than having WRs, DEs and gameplans, we have CEOs, PR-people and economics. Seems reasonable that some set of people that like doing one would like doing the other as well. |
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12-17-2007, 07:12 AM | #73 | |
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Quote:
I've been wondering about my Wii purchase since it is sitting around until Christmas... and this post made me feel a bit worried. Then I saw who posted it, and now I feel great about it!
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12-17-2007, 07:34 AM | #74 | ||
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Here's an article detailing just how much it is costing. Estimates top $1 billion dollars in addition to the 8% loss in stock value in just one month's time............... http://www.next-gen.biz/index.php?op...=8349&Itemid=2 Quote:
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12-17-2007, 09:25 AM | #75 |
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Nintendo does look pretty inept for not being able to ramp up production to meet demand in over a year's time. Perhaps they were used to their consoles not selling for crap and are still too stunned to respond!
Last edited by Kodos : 12-17-2007 at 09:25 AM. |
12-17-2007, 10:00 AM | #76 | |
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This might just be me, but I find that wording to be misleading. Nintendo must still be making plenty of money, but they are leaving potential revenue on the table by not having a large enough supply. With all of the business analysis happening in this thread, using the word "cost" in this way seems wrong. Also, it should be noted that these aren't lost sales, but delayed sales. Surely some of the sales will be lost as potential customers get less interested after the holidays, but many (most?) of these sales will still happen...just not this holiday season. |
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12-17-2007, 10:13 AM | #77 |
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1) Nintendo is at a "crisis point" OMG, I haven't laughed that hard in years. Thanks Mizzou. Yeah, it's incredible how fast Nintendo is going under. They released their console at the same time as the PS3 and a year later continue to double it in worldwide sales, a number that increases each month.
2) You do realize that "cost" Nintendo 1 billion is like the government saying Medicare is getting "cut," don't you? In the case of Medicare getting cut, it doesn't mean less money is coming in, it means the rate increase will drop. Same thing for Nintendo here. Yeah, they would certainly rather meet demand. Who wouldn't? But they are still selling every console they make. They are selling almost every DS they put out there. And the "cost" in this case will be made up by many consumers still buying the product. They may lose a few people to this, but most people are going to pick one up when they see it out there. 3) The 360 vs. PS3 debate is almost as funny. Sony gets a 50k win in worldwide numbers and now MS is at a crisis point. Ummmmm, no, they aren't. Sony isn't going to beat the 360 by sneaking out 50k wins during the holiday season. As less consoles are sold throughout the rest of the year, Sony isn't going to make up any ground at all. The weekly numbers I've seen had the PS3 beating the 360 by about 3k units worldwide the first week of December. You say that the PS3 will catch the 360 worldwide by '09? How do you see the PS3 beating the 360 by an average of over 300k a month over the next 24 months? At what point is PS3 fever going to kick in and send everyone flying to the stores? The PS3 has a loaded lineup coming out next year, but I don't think it's loaded enough to assume it's going to start outselling MS by that many units next holiday season. And MS doesn't exactly have a "weak" lineup scheduled for next year either. That brings up another point. The next big PS3 release is going to be in early March, correct? GTHD and The Show. Followed by Little Big Planet in April (I'm really looking forward to that one) In reality, we even take off another couple of months. The PS3 isn't going to start outselling the 360 by that many units until it gets some exclusives people have to have. We can pretty much knock off another quarter of a year until the PS3 exclusives kick in. Now we jump to, what, 350k a month for 20 months? Maybe it'll happen, but I have a tough time seeing how. |
12-17-2007, 10:30 AM | #78 | |
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Quote:
Thanks Butter! I'm glad I could bring some christmas cheer. On a serious note though, the wand aspect of the Wii, is what she dislikes. I'm Mario Strikers for Wii, you have to use the wand on the screen to block balls. It can be hard for younger kids 5 about to be 6 to do this. If you have a wall mountable big screen TV, the pointer device is pretty difficult for kids to use. Even starting here old Gamecube games is difficult. You have to point over that area on the screen. The problem is the TV is taller then she is. |
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12-17-2007, 10:37 AM | #79 |
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I'll avoid quoting everything to keep the thread clutter down. Nintendo is having severe issues right now and even the executives had publicly made statements in that regard. Just because they are selling every unit they make does not mean that they are not botching the situation badly. All products have a limited window of sales. Having a shortage on a product during a time where they should have a full supply and be selling 2X or 3X the number of units that they're currently selling is a major screw up. They're missing out on major revenue streams. They have to hope that they'll make up the difference in gift card redemptions, but there are no signs that they'll be able to resolve this supply issue anytime soon. Investors are showing their displeasure by selling off Nintendo stock. Stock price is a major bellweather of a company's health. In your list of games for the spring, you made a small omission of Metal Gear Solid 4. It's now an April release. I'm certainly not the only one that believes that the PS3 will surpass the 360 in 2009. Obviously, that's going to take some time to resolve itself. For the short term, we'll have to look to see if Sony can continue to make headway worldwide. If they can push that worldwide lead out from the roughly 50K that they had this month, it would be a good sign that price break wasn't the only driving factor in the November PS3 sales boost. Last edited by Mizzou B-ball fan : 12-17-2007 at 10:40 AM. |
12-17-2007, 10:42 AM | #80 |
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One issue console manufacturers have to deal with is how much production to have. One of the worst situations you can be in is ramping up a fab, only to meet all demand quickly and then have the fab sitting idle. Nintendo has one of the fastest selling consoles EVER, but at that clip even they have to be wondering when it will stop. It's a balancing act, that's for sure.
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12-17-2007, 10:48 AM | #81 | |
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Sony had that problem when the PS3 first came out. They had a pretty heavy supply that sat around for awhile. That certainly wasn't a good thing either. I don't think that supply constraint is a bad thing when a system is first released or during its first holiday season. But this is the second holiday season for the Wii and there's not a single soul that didn't know that this kind of demand was going to occur. I'm sure Nintendo wants to make sure the manufacturing process is up to snuff, but there had to be a way to resolve this issue knowing that it was coming months in advance. |
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12-17-2007, 10:55 AM | #82 | |
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http://dubiousquality.blogspot.com/2...d-numbers.html
The conclusion from the article (and you should read it to see how he came to the conclusion): Quote:
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12-17-2007, 10:59 AM | #83 | |
Coordinator
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Quote:
Put your sensor bar under the TV. You don't have to aim at the TV at all to use the pointing device. The remote just has to be able to "see" the sensor bar. |
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12-17-2007, 11:03 AM | #84 |
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"Stock price is a major bellweather of a company's health."
yes, and an 8% drop after a 500% increase in 2 years is really a "crisis" |
12-17-2007, 11:09 AM | #85 | |
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Once again, Bill is only analyzing the North American market in his console posts. Regarding his analysis, it certainly is an interesting read, but I'm not sure that it relates to the current market all that much. We've never had a console market where two consoles that are not bleeding-edge (Wii and PS2) were doing so well against higher-end consoles. This is a whole new situation we're dealing with. We're literally writing new economic case analysis as we go along in regards to this console battle. |
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12-17-2007, 11:13 AM | #86 | |
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This is the same sort of backwards thinking thats causing MS/Sony to get their asses kicked. The Wii IS on the bleeding edge of technology. Just not processor speed. Its the first console since NES to fundamentaly change the way people interact with video games. Thats bleeding edge. People don't care about processor speed. Your point is valid though, as this doesn't fit current case studies. We've also never seen a console sell as well as the Wii, while hitting its "caps" essentially. Last edited by Synovia : 12-17-2007 at 11:16 AM. |
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12-17-2007, 11:16 AM | #87 |
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If the first week's numbers are right, they aren't pushing the lead out at all, the 50k advantage would be 12k for the month.
Saying "I'm not the only one who thinks the PS3 will catch the 360" doesn't really do anything for me. There are more than one person who believe in the Easter Bunny too, it doesn't mean he's hopping through my door with eggs for me this spring. I think the assumptions are based on three things: 1) People still think Sony is top dog and are still stunned by how far they've fallen with this launch. (they HAVE to make it up, don't they?) 2) People think the strong lineup of games will swing the momentum in Sony's favor and MS will back away. 3) People are taking high amounts of cough syrup. Again, we'll see how it develops, but I don't see it. The 360 isn't going to throw up their hands and say "Awww, damnit, FF has been released, well, let's sell our remaining stock for scrap and close our video game department down. We gave it a shot." Sony has it figured out now. They have the pricing better, they have better commercials, they aren't making a jack ass comment every other day. But that doesn't mean they are headed for 300k a month sales wins over the next 24 months either. As for Nintendo, give it a rest. I'm serious on this. Anyone who tries to make it look like Nintendo is in a crisis mode is kidding themselves. (or are hitting that worldwide cough syrup total) They are fine. Repeat after me: They are just fine. The company is making money hand over fist. They are selling everything they put out. DS, WII, Mario Galaxy, whatever. . . On January 3, 2007, Nintendo closed the day with their stock price at $32.44. As the market closed on Friday, their stock was at $72.44 They've lost about $5 a share in the last couple of weeks with some idiots dropping off board and probably some people thinking the stock has peaked, but the growth rate in their stock will sitll be over 100% this year. (just a quick FYI, that's kinda good) Somehow, I think Nintendo is gonna come out of this ok. |
12-17-2007, 11:17 AM | #88 | |
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Fine, if you don't like the term 'crisis', pick another one if you're hung up on that term. Nintendo shouldn't be dealing with lost revenue and falling stock prices at this point in the life cycle of the Wii. Also, your use of percentages in regard to the stock prices is fuzzy at best. That 8% loss is a percentage of total stock price lost. A better way of stating it is stating that roughly 50% of that 500% gain was lost in one month. That's a major stock price hit and is awfully scary if you're an investor who thought your company had a 'can't miss' product on their hands. The truth is that they do have a 'can't miss' product on their hands, but it isn't going to do nearly as well if you can't meet the demand. |
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12-17-2007, 11:21 AM | #89 | |
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And Sony shouldn't be dealing with 3rd place at this point in the life cycle of the PS3. But that doesn't stop you from predicting great things ahead for them. Some day you'll realise that you use one argument in one case, and then go exactly the opposite to debate a different point. Some day.
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12-17-2007, 11:22 AM | #90 | |
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Here's a metaphor: Saying Nintendo has a crisis right now is like saying the Patriots have an offensive crisis right now because Kyle Brady is hurt. yeah, Nintendo is losing potential sales right now, but they're still outselling everyone by a huge margin. Don't forget, in January, when the PS3/360 numbers drop back down into normal ranges, the Wii won't. They'll keep selling every single piece of hardware they can put together. The stock prices will go back up. Seriously, the stock price dropping is a very nice opportunity to make some cash. |
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12-17-2007, 11:23 AM | #91 |
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I agree that they'll be financially fine. But they're going to be kicking themselves in the ass over just how much more they could have made. That isn't sitting well with investors or the Nintendo execs as has been made plainly clear in recent articles. |
12-17-2007, 11:23 AM | #92 | |
Coordinator
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OK, I'll try: "Nintendo: Guess what? We aren't perfect, but we're still kicking your asses. Merry Chrismas!!!" |
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12-17-2007, 11:25 AM | #93 | |
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My metaphor was going to be winning the lottery and then having the "crisis" of learning that someone else had the same numbers so I have to share the winnings. It isn't an optimal situation, but it is still pretty good. |
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12-17-2007, 11:44 AM | #94 | ||||||||||||||||||||||
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Nintendo in crisis? Seriously?
The table below is worldwide sales for each of the consoles approximately one year after their North American release (source: vgchartz.com). Sure, the Wii is missing out on potential sales this holiday season, but its pretty crazy to criticize them for the supply issues considering they've sold nearly twice as many consoles in one year as anyone else in the last 20 years.
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12-17-2007, 11:45 AM | #95 | |
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I'm not totally sure about that at this point. Many of the investment analysts are saying that the Nintendo stock has reached a mature level at this point and won't see anything near the return that we've seen since the Wii release. Most of the gain over the past year or so has been due to a major undervaluation of the Nintendo stock. Now that they've corrected the value, the gains aren't going to be nearly as big. Interestingly enough, in Japan, Sony may have benefitted in recent weeks from the sale of Nintendo stock. Analysts say that some of the sellers believe that Nintendo stock has hit a plateau and are now moving their investments to Sony, which they say is undervalued due to the recent surge in PS3 sales. Who knows whether or not that trend will continue. Article discussing Nintendo stock price drop & movement of investments....... http://www.reuters.com/article/compa...BrandChannel=0 |
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12-17-2007, 11:48 AM | #96 | |
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As I stated before, no issues with the sales numbers and the hangup on the word 'crisis' is noted. With that said, Nintendo is giving away major amounts of profits and even their executives are openly admitting that. Last edited by Mizzou B-ball fan : 12-17-2007 at 11:49 AM. |
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12-17-2007, 11:49 AM | #97 |
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Man...that Sony is something. They benefit from everything!
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12-17-2007, 11:52 AM | #98 |
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12-17-2007, 11:54 AM | #99 |
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12-17-2007, 11:55 AM | #100 |
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