How do you think MS will counteract the release of the PS3?

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  • rudyjuly2
    Cade Cunningham
    • Aug 2002
    • 14816

    #31
    Re: How do you think MS will counteract the release of the PS3?

    Originally posted by Erv
    It worked so well they got outsold by 73 million consoles "last gen", and during their first holiday their new console got outsold by every other console including gamecube.
    This argument makes no sense to me. The XBox was released 1 1/2 years after the PS2. MS used it as a learning experience and to get a foot in the door. They never expected to win that battle.

    As for their first holiday season, they got may have got outsold but they also sold every unit they had in North America. If nobody wanted it, there wouldn't be tons of 360's on ebay for crazy money. You are also comparing a high priced unit to low priced ones. Sales always snowball as the price drops over time.

    As for strategy, its rare that any company dominates the console market over a long period. Atari, Nintendo, Sega and others have all bowed out after being kings. Who's to say Sony will remain strong? MS has deep pockets to challenge them.

    Comment

    • Graphik
      Pr*s*n*r#70460649
      • Oct 2002
      • 10582

      #32
      Re: How do you think MS will counteract the release of the PS3?

      Originally posted by APOC
      A game will never make more than a system.......ever.

      Of course it wont make more but there are games that will sell systems.
      http://neverfollow.biz (Independent Music Group)

      Comment

      • USF11
        C*rr*ntly *n L*f* T*lt
        • Jun 2003
        • 4245

        #33
        Re: How do you think MS will counteract the release of the PS3?

        Originally posted by Graphik
        Of course it wont make more but there are games that will sell systems.
        ET for Atari sold more units then systems and that is considered the worst game of all time!
        "Good music transcends all physical limits, it's more then something you hear, it's something that you feel, when the author, experience, and passion is real" - Murs (And this is for)

        Comment

        • LIGHTNING
          MVP
          • Jul 2002
          • 1610

          #34
          Re: How do you think MS will counteract the release of the PS3?

          Sony's stock is rated a SELL by some analysts and they are in HORRIBLE financial condition. They have changed CEOs, but the problem is that the electonics industry is susceptible to obsolescence and rapid change and Sony is often behind. The Blue Ray technology will be made obsolete in the not too distant future by cheaper memory and increases in broadband. In the future people are going to be able to download movies and other high definition content in less time and for less money than they would driving to some retailer to buy Blue Ray discs. The Blue Ray could be another Beta Max.

          They have dominated the video game industry for 10 years, but all it takes is one mistake and they lose momentum! All Microsoft has to do is just force Sony to spend more and lower their Playstation profitability and with time Sony could go the way of SEGA. I believe Microsoft will eventually own the video game industy. You need strong cash flows and lots of capital to prevail and maintain dominance in the video game hardware business and because of this Microsoft has far more staying power than does Sony. Microsoft has more room for error and it is very likely at least in North America they will gain some momentum. Money and profitablity is most important in the world of business.

          Comment

          • Flawless
            Bang-bang! Down-down!
            • Mar 2004
            • 16780

            #35
            Re: How do you think MS will counteract the release of the PS3?

            Shane Kim interview

            OXM 360: You mentioned Sony – what are your thoughts on the announcement of the worldwide PS3 launch in November?

            I think that it’s great that Sony realise how important Viva Piñata since they had to make their announcement on the same day as us! No, but seriously, I think it’s a good thing that they’re finally starting to reveal more. They’ve made a lot of promises and people want to know what’s happening with PS3. Even though it’s disappointing for people who were expecting PS3 this spring, it’s good that Sony is sharing more information. For us, it doesn’t change anything. We’ve had a very clear strategy for a long time now and we’re not going to change that. We’re not going to react to anything that they do. We know what we’re doing, we’ll be in full supply shortly, we’ve got great content on the way, and we’ve got fantastic third-party support. If Sony happens to stumble – and we know first-hand that there are a lot of challenges in a worldwide launch – then we’ll be in an incredibly strong position to take advantage.

            OXM 360: Sony has never done a worldwide launch before. Do you think you forced their hand with the worldwide launch of Xbox 360?

            I have a philosophy: Leaders don’t react. I don’t know what went into Sony’s minds. I think we’ll have to see what happens. They said they’ll launch worldwide? We’ll see if they can pull it off. It’s very challenging. It may be they did it because we did it and it may be because it’s what customers want. Hopefully it’s because it’s what customers want.

            OXM 360: You’ll have had a year’s head start come November. Are you confident that you’ll have a huge and loyal installed base by then that could damage PS3’s sales?

            I am confident that we’ll have a loyal and significant installed base. What I’m less confident about is that we’ll win. I think that’s the kind of call you can only make when the time is right. So we’re going to be maniacally focused on executing out long-term game plan. You can ask me in three or four years whether we’ve won. But I totally believe that people who have bought Xbox 360 and subscribed to Xbox Live are having a great experience and I think we’re going to get a lot of top spin momentum from that.

            Discover news about Xbox and reviews on the latest and greatest Xbox titles, courtesy of the Gamesradar+ team.
            Go Noles!!! >>----->

            Comment

            • Money99
              Hall Of Fame
              • Sep 2002
              • 12695

              #36
              Re: How do you think MS will counteract the release of the PS3?

              Originally posted by LIGHTNING
              Sony's stock is rated a SELL by some analysts and they are in HORRIBLE financial condition. They have changed CEOs, but the problem is that the electonics industry is susceptible to obsolescence and rapid change and Sony is often behind. The Blue Ray technology will be made obsolete in the not too distant future by cheaper memory and increases in broadband. In the future people are going to be able to download movies and other high definition content in less time and for less money than they would driving to some retailer to buy Blue Ray discs. The Blue Ray could be another Beta Max.

              They have dominated the video game industry for 10 years, but all it takes is one mistake and they lose momentum! All Microsoft has to do is just force Sony to spend more and lower their Playstation profitability and with time Sony could go the way of SEGA. I believe Microsoft will eventually own the video game industy. You need strong cash flows and lots of capital to prevail and maintain dominance in the video game hardware business and because of this Microsoft has far more staying power than does Sony. Microsoft has more room for error and it is very likely at least in North America they will gain some momentum. Money and profitablity is most important in the world of business.
              To add further to this I read recently that Sony is taking major hits in their other endeavors as well. Like their movie production companies for instance.

              Who knows what will happen? But if this console does sell for a lot more than the 360 they could be in trouble. In North America and Europe at least.

              Comment

              • Graphik
                Pr*s*n*r#70460649
                • Oct 2002
                • 10582

                #37
                Re: How do you think MS will counteract the release of the PS3?

                I hope both systems thrive. Nothing beats competition for us gamers.
                http://neverfollow.biz (Independent Music Group)

                Comment

                • Rodster
                  Banned
                  • Mar 2003
                  • 5709

                  #38
                  Re: How do you think MS will counteract the release of the PS3?

                  Originally posted by Erv
                  It worked so well they got outsold by 73 million consoles "last gen", and during their first holiday their new console got outsold by every other console including gamecube. History has also shown that the particular approach they are taking bombed in 1999(I know MS has more stability, that doesn't buy you the lead). You can't win the game industry by throwing cash around, Rare is a shining example of this(for all the money spent on them, 360 owners don't give a rats *** according to NPD). That's not a diss, the 360 owners have some great taste looking at the charts, you make a half *** port/1.5 game they won't touch it.

                  While Sony copied MS's pricing strategy gold/silver, they got some stuff cooking with the PSP and are more friendly to MMORPGs so it's no one trick pony.
                  Bogus numbers, how many of those 73 million were due to people having to buy a PS2 because the dam thing quit working. Sony's 100 million+ PS2 numbers are inflated. I've been thru 5 broken PS2's.

                  Yes MS got outsold by a wide margin but Xboxes held up a hell of a lot better than PS2's plus add to the fact Sony had a head start, had the software, had the exclusives, had the developers and yes MS wasn't going to win.

                  Keep this in mind Xbox Live was borne last gen, it put the Xbox on the map. MS spent cash advertising on ESPN/Xtreme Sports, and MTV and we now have a culture as what's known as the "Xbox Generation" sorry if you haven't heard of them it's kind of a trendy thing.

                  Microsoft came into the game with NO console experience and YES they spent money lots of it. They finished second to Sony. Not too shabby seeing Nintendo has been doing this a lot longer.

                  Microsoft is now in the drivers seat this time and if they play their cards right they will chisle away at Sony even more. I still expect Sony to win overall but not like the last time. And it maybe a different story in the US, MS just might take it this time.

                  Now for the PS3, it has too live up to or exceed the Xbox 360 because we know what it can do and for some the expectations are huge seeing how Sony is hyping this thing again. If games don't look much better than what's being offered by the 360 they will have a tougher go at it this time around. Sony doesn't have as many exclusives as the last time either. Most games will be offered on both systems.

                  if I buy Madden 07 on the 360 and the PS3 version doesn't look all that much better and the PS3 costs alot more than the 360 then it becomes a no brainer for some. You go with the least expensive system, the 360.

                  Yes IMO I still stand by what I said earlier Microsoft's gameplan is working and Sony knows it as well.
                  Last edited by Rodster; 03-16-2006, 04:11 PM.

                  Comment

                  • Misfit
                    All Star
                    • Mar 2003
                    • 5766

                    #39
                    Re: How do you think MS will counteract the release of the PS3?

                    How can Microsoft be in the driver's seat when they are still a distant second? I'm not sure if even the most optimistic sales reps at Microsoft feel they are in the driver's seat. The Dreamcast had a strong launch and a year on the PS2 and look how that turned out. Nothing is etched in stone.

                    The bottomline is, we the posters of Operation Sports, are a minority. The average consumer owns a Playstation 2, and not an Xbox, and they are naturally going to look at a Playstation 3 first. If the 360 was plentiful right now Microsoft would be looking much better, but since they haven't been able to meet demand it hasn't been much of an advantage. And since the supply has been so short we don't really know what the demand is for their console right now. The PS3, in all likelihood, will probably have a more successful launch than the 360 for the simple reason that Sony will sell-out in North America and Japan. The Playstation name is still too strong to topple at this point and it will take a major mistake (such as the one Nintendo made in delaying the N64 for so long and then sticking with a cartridge medium) for them to drop to second.

                    Comment

                    • Spongedaddy
                      MVP
                      • Feb 2006
                      • 2030

                      #40
                      Re: How do you think MS will counteract the release of the PS3?

                      You cannot compare MS to Sega...that is like comparing Andre the Giant to a midget wrestler. Sony is going to lose ground and unlike MS I do not think Sony has the staying power with the way their company keeps taking hits on the product front. The PS3 will do well, but they are going to lose a significant share of their market.
                      DON'T PANIC

                      Comment

                      • Misfit
                        All Star
                        • Mar 2003
                        • 5766

                        #41
                        Re: How do you think MS will counteract the release of the PS3?

                        Actually you can easily compare MS and Sega. If you look back at the Dreamcast launch, Sega's market strategy was almost identicle to MS's with the 360, right down to the MTV backing.

                        Comment

                        • RoyalBoyle78
                          Aka."Footballforever"
                          • May 2003
                          • 23918

                          #42
                          Re: How do you think MS will counteract the release of the PS3?

                          Originally posted by Spongedaddy
                          You cannot compare MS to Sega...that is like comparing Andre the Giant to a midget wrestler. Sony is going to lose ground and unlike MS I do not think Sony has the staying power with the way their company keeps taking hits on the product front. The PS3 will do well, but they are going to lose a significant share of their market.
                          from what I have been reading they will be losing a lot on each system.
                          N.Y Mets
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                          • Spongedaddy
                            MVP
                            • Feb 2006
                            • 2030

                            #43
                            Re: How do you think MS will counteract the release of the PS3?

                            Originally posted by Misfit
                            Actually you can easily compare MS and Sega. If you look back at the Dreamcast launch, Sega's market strategy was almost identicle to MS's with the 360, right down to the MTV backing.
                            MS: Maker of the leading software operating system headed up by the richest man in the world (see this issue of Forbes). MS has developed the standard by which all other online console networks will be measured.

                            Sega: A gaming company that fell apart during the days of the DC. Was a pioneer of online console gaming, but didn't know where to go with it.

                            No comparison.
                            DON'T PANIC

                            Comment

                            • LIGHTNING
                              MVP
                              • Jul 2002
                              • 1610

                              #44
                              Re: How do you think MS will counteract the release of the PS3?

                              Originally posted by Misfit
                              Actually you can easily compare MS and Sega. If you look back at the Dreamcast launch, Sega's market strategy was almost identicle to MS's with the 360, right down to the MTV backing.

                              Microsoft has 38 billion dollars cash and SEGA had billions in debt, HUGE difference. Sony is losing momentum and if they are not careful they will continue to lose over time. It is VERY difficult to compete against Microsoft, world's most powerful and richest company, and to maintain such a huge market share. It is a LOT easier to gain market share when you only have less than 25% share compared to increasing from more than 50% share. This is especially true if the company you are competiting against has 38 billion dollars. When you have that much cash and a business that makes more than 8 billion in cash flow per year, you can take your time and chisle away and eventually you will gain and then possibly dominate. Japan is about the only safe market for Sony, for the rest it is a new generation.

                              Comment

                              • Misfit
                                All Star
                                • Mar 2003
                                • 5766

                                #45
                                Re: How do you think MS will counteract the release of the PS3?

                                It doesn't matter how much money Microsoft has if people don't buy it. Sega's lack of capital meant they couldn't follow-up the Dreamcast with another system because they couldn't afford it. They were forced to cut their losses and switch to game development. They marketed their console very similarly to how Microsoft has marketed the 360. Microsoft's money gives them staying power that Sega could not buy. Any other company would possibly be out at this point as Microsoft has never seen a profit from the Xbox and probably will not make a huge profit off of the 360.

                                If you're certain that the 360's one year head-start will really impact sales of the Playstation 3 then you are mistaken. Sony still holds the name-brand and if their product is as good as they claim they will have no problems moving units, so long as it isn't outrageously priced. Right now, the only company that can knock Sony off the mountain is Sony themselves. How they handle the launch of the PS3 will determine how well they do in this generation. For Microsoft, the gap between the sales leader and themselves is too great to close with the 360. They've proven they have staying power but if they want to be the industry leader they need to broaden their consumer base to other territories or come up with a product clearly superior to Sony's in order to switch the "Playstation die-hards" over to their system. The original Playstation was one of (if not the) most successful consoles ever released and the Playstation 2 surpassed. There is no reason to assume right now that the Playstation 3 will not perform similarly.

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