The Xbox 360 should win this console war

jjufon · 09-11-2008, 04:28 PM

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.
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

http://news.cnet.com/8301-13506_3-10039408-17.html

MikeRox · 09-11-2008, 05:03 PM

The Wii lost it's cost factor to the Xbox 360 in May, after an initial sales boost, everything dropped back to normal.

I don't think being the cheapest was much of a factor for the Wii (it did naff all for the Gamecube which launched in the UK at half the price of the original Xbox), I think it's quite simply the only console to do anything to encourage people who don't already actively play games to give gaming a try.

I do think the price cut will allow Microsoft to give Sony a good run for their money for second place though as up until now, it looked like the 360 was just inevitibly going to end up in 3rd. Now with a US price drop at least the US might be able to keep it in 2nd place worldwide.

Cygnus · 09-11-2008, 06:30 PM

I don't see either 360 or PS3 catching the wii. But I do see 360's price drop being attractive to PS2 and Wii owners. There are millions of PS2 owners desiring to play GTA4, COD4, Halo3, etc. Most agree that $199 is the magic price for mass adoption.

http://www.gamespot.com/news/6197553...dlines;title;2
It doesn't take a world-class economist to understand that Microsoft's recent price cuts to its full line of Xbox 360 systems would boost sales, but a Bloomberg article has put the size of the spike into perspective. The news outlet is reporting that retailers saw a 100 percent sales surge for the Xbox 360 last weekend across all configurations, with "some models" selling at six times the past weekend's rate.

venomxr8 · 09-11-2008, 07:24 PM

Ok, first things first, the wii's got this gen 1st place sown up, give nintendo the trophy. As for second place i can proberly see the 360 total sales in north america being higher than the ps3 this gen but worldwide I dont think you can go past the playstation name. Its pretty much enevitable if we follow current trends that the ps3 will finish in 2nd spot this gen with the 360 in third.

railven · 09-11-2008, 09:14 PM

Did you guys read the comments posted?

Hehe.

Quote:

Oh and the "Oh, and don't forget that the PS3 doesn't not include HDMI or Component cables out of the box so there is an extra charge just to watch a Blu-ray movie on day one." is nothing to sneer at. HDMI cables are expensive. Cheap ones are $30 up to expensive ones that cost around $80 or more so it's a valid point to mention the PS3 does not come with HDMI cables. 360's come with HDMI cables.

If this guy is paying $30 bucks for an HDMI capable he deserves all the bad that comes his way!

EDIT: On top of that, you can watch BD's over composite last time I checked. Course, you don't get the "AWESOME 1080p!" resolution, but neither does the Xbox360.

I'm such a dick! I feel like throwing on a fanboy cape and going to some fanboy sites to cause a ruckus! MUAHAHAHA!!!

II SAL II · 09-12-2008, 08:17 AM

sales or no sales.. it all comes down to just 1 thing. "XBOXLIVE"

Cygnus · 09-12-2008, 08:44 AM

The PS name does not seem to really be carrying it in japan, where its sales are pretty mediocre. I do agree that Wii will win this gen of consoles. No one predicted that, not even nintendo.

Mase · 09-12-2008, 09:55 AM

Quote:

Originally Posted by railven

Did you guys read the comments posted?

Hehe.

If this guy is paying $30 bucks for an HDMI capable he deserves all the bad that comes his way!

EDIT: On top of that, you can watch BD's over composite last time I checked. Course, you don't get the "AWESOME 1080p!" resolution, but neither does the Xbox360.

I'm such a dick! I feel like throwing on a fanboy cape and going to some fanboy sites to cause a ruckus! MUAHAHAHA!!!

Well if by day one he means go to a store, and just randomly buy a PS3 to go with his HDTV, then he is correct.. I dont know any B&M that sells HDMI's for less than $30. Well for runs longer then 3' anyways

Most of these average joes who buy the PS3 as a BR player dont usually shop online and even if they do, most are wary of sites like Monoprice.com, J6P just accept's the fact that HDMI cables are expensive.

But what this guy doesnt tell you, is that only 2 of the 3 xbox 360s come with Component, and only 1 of the 3 comes with HDMI.. And his argument is moot anyways, if someone is buying the PS3 as a BR player then they obviously have no interest in gaming and the 360 would not even be on their radar.

railven · 09-12-2008, 10:01 PM

Quote:

Originally Posted by Lilmase1153

Well if by day one he means go to a store, and just randomly buy a PS3 to go with his HDTV, then he is correct.. I dont know any B&M that sells HDMI's for less than $30. Well for runs longer then 3' anyways

Most of these average joes who buy the PS3 as a BR player dont usually shop online and even if they do, most are wary of sites like Monoprice.com, J6P just accept's the fact that HDMI cables are expensive.

But what this guy doesnt tell you, is that only 2 of the 3 xbox 360s come with Component, and only 1 of the 3 comes with HDMI.. And his argument is moot anyways, if someone is buying the PS3 as a BR player then they obviously have no interest in gaming and the 360 would not even be on their radar.

I was one of those blind that bought cables at retail stores! I even thought I was crafty when I started to buy RG6/Cat5e bare and crimp it myself. Or use old Composite (YELLOW/RED/WHITE) cables as component (works just fine) or Digital Coaxial.

Then i found the light, the Monoprice light! Hehe.

venomxr8 · 09-13-2008, 03:11 AM

Quote:

Originally Posted by II SAL II

sales or no sales.. it all comes down to just 1 thing. "XBOXLIVE"

and the fact that you get charged $$$ to use it while psn remains free

jusHD · 09-13-2008, 07:29 PM

Quote:

Originally Posted by jjufon

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.
[/url]

Aside from GOW2 how does it have a better lineup. I am not going to list games but the PS3 future line up right now easily beats the 360's. But this price drop is going to help MS big time. New adopters plus all those who bought at luanch will be replacing their units since the 3 year warranty will be up. And if you have luck like mine the old RROD will be visiting very soon. But either way I will probably be picking up my third 360.

Mase · 09-13-2008, 08:00 PM

Quote:

Originally Posted by railven

I was one of those blind that bought cables at retail stores! I even thought I was crafty when I started to buy RG6/Cat5e bare and crimp it myself. Or use old Composite (YELLOW/RED/WHITE) cables as component (works just fine) or Digital Coaxial.

Then i found the light, the Monoprice light! Hehe.

Sooner or later we all see the light

I love monoprice

Cygnus · 09-14-2008, 10:17 AM

And XBL pwns P$N...

Quote:

Originally Posted by venomxr8

and the fact that you get charged $$$ to use it while psn remains free

MikeRox · 09-14-2008, 01:02 PM

Quote:

Originally Posted by Cygnus

But I do see 360's price drop being attractive to PS2 and Wii owners. There are millions of PS2 owners desiring to play GTA4, COD4, etc. Most agree that $199 is the magic price for mass adoption.

The 360's pricedrop would have been more attractive if it had been the PS3 being cut to that price

I can't believe how many people are waiting for the PS3 to drop and won't even consider a 360 (granted the RRoD is part of the reason, but the PlayStation name is a bigger one).

jusHD · 09-14-2008, 01:59 PM

Quote:

Originally Posted by MikeRox

The 360's pricedrop would have been more attractive if it had been the PS3 being cut to that price

I can't believe how many people are waiting for the PS3 to drop and won't even consider a 360 (granted the RRoD is part of the reason, but the PlayStation name is a bigger one).

Yeah most of my friends are half-ass broke and are waiting for the PS3 to drop. I had the 360 forever and they wouldnt pick one up no matter what. It sucked since when they came over we couldnt fairly play madden since they dont know the buttons on the 360 controller.

And why does everyone say Live is so much better than the PSN. For me it has been the same and with COD4 it has worked better. The only thing I miss is looking up friends and joining their game easily aside from that whats the difference.

09-11-2008, 04:28 PM	#1
jjufon CMMS Junkie Join Date: Sep 2005 Location: Frisco Tx Posts: 967	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. 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 http://news.cnet.com/8301-13506_3-10039408-17.html __________________ JJufon Last edited by jjufon; 09-11-2008 at 04:31 PM.

09-11-2008, 05:03 PM	#2
MikeRox Blu Blu Skies! :D Join Date: May 2007 Location: Huddersfield, United Kingdom Posts: 12,414	The Wii lost it's cost factor to the Xbox 360 in May, after an initial sales boost, everything dropped back to normal. I don't think being the cheapest was much of a factor for the Wii (it did naff all for the Gamecube which launched in the UK at half the price of the original Xbox), I think it's quite simply the only console to do anything to encourage people who don't already actively play games to give gaming a try. I do think the price cut will allow Microsoft to give Sony a good run for their money for second place though as up until now, it looked like the 360 was just inevitibly going to end up in 3rd. Now with a US price drop at least the US might be able to keep it in 2nd place worldwide. __________________ REGION B 4TW! Latest HD additions - I Love You Man - 17 Again - Born on the 4th of July - Paul Blart: Mall Cop - Monsters, Inc. HD Movies - Um... Lost count >_< bout 250 Latest Gaming Additions - Mirrors Edge - Scene It BOS - Wartech: Senko No Ronde - Lego Indiana Jones/Kung Fu Panda 2 pack - Silent Hill

09-11-2008, 06:30 PM	#3
Cygnus The Bringer of Balance Join Date: Dec 2004 Posts: 6,832	I don't see either 360 or PS3 catching the wii. But I do see 360's price drop being attractive to PS2 and Wii owners. There are millions of PS2 owners desiring to play GTA4, COD4, Halo3, etc. Most agree that $199 is the magic price for mass adoption. http://www.gamespot.com/news/6197553...dlines;title;2 It doesn't take a world-class economist to understand that Microsoft's recent price cuts to its full line of Xbox 360 systems would boost sales, but a Bloomberg article has put the size of the spike into perspective. The news outlet is reporting that retailers saw a 100 percent sales surge for the Xbox 360 last weekend across all configurations, with "some models" selling at six times the past weekend's rate. __________________ Toshiba 57H81 Kenwood VR-616 Comcast DCT6412 III XBox 360 GamerTag Sec0nd2N0n3

09-11-2008, 07:24 PM	#4
venomxr8 It Only Does Everything!! Join Date: Sep 2007 Posts: 1,089	Ok, first things first, the wii's got this gen 1st place sown up, give nintendo the trophy. As for second place i can proberly see the 360 total sales in north america being higher than the ps3 this gen but worldwide I dont think you can go past the playstation name. Its pretty much enevitable if we follow current trends that the ps3 will finish in 2nd spot this gen with the 360 in third. __________________ My Plats

09-12-2008, 08:17 AM	#6
II SAL II PSN is POO Join Date: Jan 2007 Location: Richmond, Va Age: 36 Posts: 2,063	sales or no sales.. it all comes down to just 1 thing. "XBOXLIVE" __________________ Currently playing on my Xbox360: Call of Duty : Modern Warfare 2 (740 / 1000) Assassin's Creed II (90 / 1000) Borderland (1000 / 1000) Call of Duty : World at War (1500 / 1500) Fallout 3 (1550 / 1550) Mass Effect (1200 / 1200) Currently playing on PC: Guild Wars () Magic the Gathering : Online () Currently playing on my PS3: Blu-Ray Movies Last Watched = "Star Trek" my rating 9.8/10 Last edited by II SAL II; 09-12-2008 at 08:35 AM.

09-12-2008, 08:44 AM	#7
Cygnus The Bringer of Balance Join Date: Dec 2004 Posts: 6,832	The PS name does not seem to really be carrying it in japan, where its sales are pretty mediocre. I do agree that Wii will win this gen of consoles. No one predicted that, not even nintendo. __________________ Toshiba 57H81 Kenwood VR-616 Comcast DCT6412 III XBox 360 GamerTag Sec0nd2N0n3

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