Console Wars V

[Nikolai]

I agree that a price cut would be in order. However, as long as the sales show no downgoing trend, I doubt Nintendo will do it...

[asleepathewheel]

Due to Hurricane Ike, I unexpectedly find myself with a four day weekend, at least two of which I have power. Thus I have purchased Infinite Undiscovery and review will be forthcoming.

[DrSpike]

Hmm, I would have got Tales of Vesperia instead.

[Asher]

I'd ordered both for the SO.

[Asher]

http://www.joystiq.com/2008/09/11/microsoft-xbox-360-sales-double-following-price-drop/

360 sales double since pricedrop, one model increasing 6x.

[asleepathewheel]

Originally posted by DrSpike
Hmm, I would have got Tales of Vesperia instead.

Good for you?

I'll get vesparia eventually, I'm sure.

[Asher]

http://news.cnet.com/8301-13506_3-10039408-17.html?part=rss&subj=news&tag=2547-1_3-0-20

The Xbox 360 should win this console war

For a while, I've said that Microsoft needs to find a way to attract more customers and bring more people on board. The first step, I said, was to lower the price of the Xbox 360 all over the world to increase its value to consumers and finally make it an ideal solution for customers.

Just one day after writing that here on The Digital Home, Microsoft did just that. And according to its own internal figures, Xbox 360 sales over the weekend subsequent to its announcement of the price cut were six times higher than sales over the previous weekend. Granted, these are internal Microsoft numbers and we'll need to wait another month to see what the impact will be when NPD releases its official numbers, but I don't doubt Microsoft's sales numbers at all.
Xbox 360

Xbox 360
(Credit: CNET Networks)

From the beginning, the Xbox 360 had the kind of potential the other consoles simply didn't. Sure, the Wii is selling well and there's no sign of it slowing down, and finally the Playstation 3 is catching up to the rest of the pack, but Microsoft has an advantage aside from online gameplay now that it has taken the pricing lead from Nintendo.

The biggest barrier to entry for many consumers in the video game space is price. Because of that, millions of consumers needed to decide which console they prefer based on their budget. Since the Wii was released, those choosing with their wallets picked the Wii. But now, they can pick up the more powerful console at even more affordable price.

There are two ways to be successful in business: product differentiation or pricing differentiation. The way I see it, Microsoft has the advantage on both counts.

Let's face it--the Wii isn't something you play on a daily basis. I own a Wii (and the others, too) and I know all too well how most of my friends and I play: we pick up a game, play nonstop for a week or so, and never play it again. And during the time between playing games, my Wii goes largely unused. And unless a group of friends are over, I don't see much reason to pick up some Wii games and start playing.

In other words, the Wii is for fun and the console you'll normally play at a party. But for those times when you're alone, you simply won't.

The Playstation 3 is an entirely different story altogether. That console is more costly than its competitors and has the kind of third-party support Nintendo could only dream of. But when it's compared to the Xbox 360, it strikes me as an overpriced behemoth that fails on too many levels to make it an attractive buy at the store.

Sure, it has a Blu-ray player, which adds some value, but what else does it really offer that would justify someone paying $100 more for it than an Xbox 360? Better graphics? I don't think so. Better third-party support? No way. A quick glance at upcoming releases tells you that Microsoft is competing just as well, if not beating Sony on the software front. Better first-party games? Eh.

I'm a firm believer that the Wii really is a competitor to the Xbox 360 and the Playstation 3, but I'm suspect of its long-term success. As first-party titles continue to dominate the platform and third-party games (aside from Guitar Hero) sell better on the other platforms, can we forget that online gaming is practically nonexistent on the Wii and it's no longer the only affordable console on the market?

It's tough to say what the future will hold in the video game business. Everyone is under the impression that the Wii will take the prize of this generation's console war victor, but I'm not so quick to agree. Just because it's the leader right now by a relatively wide margin, can we expect it to perform this well indefinitely? I don't think so.

The Wii is out in front because it's the most innovative product on the market, it's the cheapest, and it has the most hype. But now it clings to just two of those components and eventually those will wear off too. That hype won't last another three or four years.

I'm not saying, though, that the Xbox 360 will be purchased instead of the Wii. In reality, I think the higher sales will be the result of Wii owners wanting to own a more powerful console with more features, but until the price cut, they simply weren't able to.

And as for the Playstation 3? Sony better find a way to reduce the price quickly or it'll be the forgotten console of this generation.

When it's all said and done, I'm a firm believer that the Xbox 360 will win the console war. At a price that's finally coaxing people to buy it, Asian sales rising, an unmatched online offering, and a large group of high-quality third-party titles on the way, things are looking up for Microsoft.

It may not be the leader in the short-term or even over the next year or two. But by the end of this generation, look for the Xbox 360 to take the lead and cement itself as the victor.

[flash9286]

Anyone who thinks that the 360 is going to win this console war is retarded. At the end of this generation of consoles there is no way 360 sales will be higher than wii sales.

[Asher]

It depends how you define win really.

I don't think the 360 will outsell the Wii over the generation. I think the 360 will have been played more cumulatively, not that there's any metric to track that.

I think MS can claim victory because the 360 will represent that they've displaced Sony -- who just last generation was far and away the #1 in the space -- on top of turning a profit.

Nintendo can claim victory due to sales and profit.

Sony is really the only loser out of everyone. A money loser, a marketshare lead demolished, and a Bluray media format that will never outsell or replace DVD.

In terms of the traditional gaming market, MS is the clear winner.
In terms of the casual/toy gaming market, Nintendo is the clear winner.
Sony is a spectator in both areas.

[lord of the mark]

I don't know much about consoles. While obviously I need to buy one to learn, the author of the column Asher posted, Don Reisinger, is definitely someone I could learn a lot from.

See this, for example,


http://news.cnet.com/8301-13506_3-10...html?tag=mncol;posts

[Asher]

Originally posted by lord of the mark
I don't know much about consoles. While obviously I need to buy one to learn, the author of the column Asher posted, Don Reisinger, is definitely someone I could learn a lot from.

See this, for example,


http://news.cnet.com/8301-13506_3-10...html?tag=mncol;posts

I'm not sure why you bother posting in this thread.

Your sarcasm is not funny nor is it insightful or biting.

It is true you know nothing about consoles, but you don't need to be sarcastic about it. Let me know when you actually touch a controller of any of the current consoles.

That columnist is a bit off in his prediction, I don't know if he is completely sane. I'm not going to bother watching that video because I have a strong opinion on the stupidity of video blog posts.

[flash9286]

I don't think the 360 will outsell the Wii over the generation. I think the 360 will have been played more cumulatively, not that there's any metric to track that.

I think MS can claim victory because the 360 will represent that they've displaced Sony -- who just last generation was far and away the #1 in the space -- on top of turning a profit.

Nintendo can claim victory due to sales and profit.

Fair enough, probably in the end the 360 will be the most played console ( in the u.s.a anyway). But the article seems to be referring to sales.

[Asher]

Yes, I think the article was too.

[snoopy369]

Originally posted by Asher
It depends how you define win really.

I don't think the 360 will outsell the Wii over the generation. I think the 360 will have been played more cumulatively, not that there's any metric to track that.

I think MS can claim victory because the 360 will represent that they've displaced Sony -- who just last generation was far and away the #1 in the space -- on top of turning a profit.

Nintendo can claim victory due to sales and profit.

Sony is really the only loser out of everyone. A money loser, a marketshare lead demolished, and a Bluray media format that will never outsell or replace DVD.

In terms of the traditional gaming market, MS is the clear winner.
In terms of the casual/toy gaming market, Nintendo is the clear winner.
Sony is a spectator in both areas.

I agree with you generally, here, but am curious - why do you say bluray won't ever succeed? Are you assuming 'laserdisc' (format that is better, but won't work due to low stocking in stores and high HW prices), or something else? I have to think that unless downloadable media takes off (which may well happen but isn't a guarantee) it will be a reasonable success at least ...

[Asher]

The problem is this:

Bluray is awesome for geeks like me. I like it a lot.

But mainstream consumers are fine with DVD. The mainstream aren't going to move to Bluray, but downloaded movies or streamed movies.

Sony themselves believe Bluray to be the last physical movie format. They've sacrificed the PS3 to position themselves for it, but I think they miscalculated it. Bluray adoption isn't happening nearly as fast as they'd hoped, and the adoption of downloadable movies is happening faster than they expected...