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"MS and Ninty coming off badly?"

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Fri 19/04/02 at 21:15
Regular
Posts: 787
And no- I'm not talking about the similarities between the Xbox and N64 launches! (Both consoles dropped £100 within a month of launch).

Instead, I'm talking about the GC and the Xbox...

You see, MS really had a good thing going. No one would say that the Xbox is a bad console- it certainly has as good quality games as the PS2, and equal launch pricing. However, despite this, the Sony brand has come out on top, forcing MS to lower prices swiftly.

Now, unlike MS, Ninty already knew that Sony would dominate even if they did come out with the greatest console of all time... So rather than launch at a "normal" launch price (£300ish) they decided to lower the cost of the console AT THE OUTSET by not including extras like the DVD player.

The amazing thing is that Ninty, by planning to set a low price, have come off worst. Rather than have the lowest priced console that, although has no extras, comes at a price far less than the competition, they have managed to get a console with no extras at a price almost the same as the competition. Meanwhile MS may be making a huge loss, but this was always the intention.

Your thoughts…

Sonic
Sun 21/04/02 at 21:42
Regular
"---SOULJACKER---"
Posts: 5,448
Ah, Strafex, I think you missed something...

You assume that MS wants to make back the console losses with game sales... Not true!

In fact, MS DON'T expect to get profit until the NEXT console generation... the whole point of the xbox is to get some foothold into the console market now- at ANY cost.

And when you consider that a console as good as the Dreamcast failed, then I think you'll agree that this takes some effort- even with MS's wallet. All of which says that MS must be doing a good job against tough odds.

Sonic
Sat 20/04/02 at 15:17
Regular
Posts: 18,185
>
> Microsoft don't really much to worry about, though.
> Even though this price cut will add to their loses in the short term,
> it makes the Xbox a "must buy" in the mean time.
> I disagree with how MS said that Halo was worth the 350 quid for, but
> 250 isn't so bad, especially when that includes all the game saves
> you'll ever need (thanks to the hardrive), and I think there's a
> broadband/modem thing still included (if someone could please verify
> that...).
>
> Even though I'd rather have the Gamecube, Nintendo seem to refuse to
> make any proper online plans, and company's tend to prefer to launch
> their "adult" titles (like GTA3 and MGS2) on
> "adult" consoles, and Nintendo don't seem too bothered on
> the afore mentioned titles anyway.


GTA3 was the choice of rockstar and Nintendo approached Konami about MGS2 and they told them the third is planned as multi formatted game.

What do you mean no proper online plans? Where have you been, the modem is avalible along with the launch of PSO edition 1 and 2 and can come bundled with it. Mario Kart is also an online title and future Gamecube titles will be using online features more detail at E3.
Sat 20/04/02 at 15:13
Regular
Posts: 18,185
One problem the X-box games are good, some PS2 games are good but mainly multi-format and gamecube rules and is cheaper than the PS2 and X-box by £50 (if you go to small time retailers).
Sat 20/04/02 at 12:57
Regular
Posts: 5,630
But Gamecube has never been about extras - its about the games. In my opinion, Micorsoft were never in competetion with Nintendo - by releasing a multifunctional console, they put themselves in a same market as Sony, the multimedia market. Nintendo will not come off worse, as people that were intending to purchase Gamecube - for the games - will continue to do so. Even with the price drop Xbox still don't have the games the calibre or diversity to take those customers away from Nintendo.
Sat 20/04/02 at 12:52
Regular
Posts: 9,848
Who'd have thought that Xbox's poor sales would be BAD for the Gamecube? :-D

I would disagree with you about one thing though.
You said that Nintendo would be hit worse than Microsoft over poor sales.

I see it the other way round.

One reason why the Xbox was more powerful than the Gamecube is that MS went for the biggest, priciest components around in order to sell the ultimate machine and remake the profit through giant software sales.

Xbox was basically trying to be what the PSOne was and tried to achieve it through heavy advertising and expensive console components.

Without a big share of the market, this "make it all up on software" strategy doesn't work so well and Sony seem to have already wrapped up a lot of what Microsoft hope to gain.

The Gamecube, however, is relatively low key.
The parts were designed with cost efficiency in mind and Nintendo haven't spent THAT much on promotions, keeping eveything as cost efficient as possible.

Add that to the fact that Nintendo has a base of hardcore fans and that it offers a whole different experience in gaming (the Xbox and PS2 are a bit too similar to be really worth owning both) and I think that Nintendo will get the sales needed to give them a tidy profit, even if they don't get more than 20% of the market.

Microsoft don't really much to worry about, though.
Even though this price cut will add to their loses in the short term, it makes the Xbox a "must buy" in the mean time.
I disagree with how MS said that Halo was worth the 350 quid for, but 250 isn't so bad, especially when that includes all the game saves you'll ever need (thanks to the hardrive), and I think there's a broadband/modem thing still included (if someone could please verify that...).

Even though I'd rather have the Gamecube, Nintendo seem to refuse to make any proper online plans, and company's tend to prefer to launch their "adult" titles (like GTA3 and MGS2) on "adult" consoles, and Nintendo don't seem too bothered on the afore mentioned titles anyway.

I'm getting a Gamecube on launch - there's no question about that, but the Xbox doesn't look so bad for a secondary choice...

I'd certainly recommend it over the PS2 now.
Fri 19/04/02 at 22:25
Regular
"---SOULJACKER---"
Posts: 5,448
Ok... now to actually make sense!

Basically Ninty new from the N64 that Sony would dominate. So, the way to combat this was to get rid of all the extra DVD playback etc, and just release a basic console. Although it lacks the features of the PS2, it should have been far cheaper than the opposition (rrp £150).

Instead, they have a console that costs £30 less than the most expensive contendor, and misses out on all the extras... is this disasterous?

Meanwhile, MS have realised that they need a cheaper console to compete. Unfortuantely the console has already been designed with all the extras, making it expensive... so MS will lose lots of money. However, thanks to Bill's wallet this isn't a problem for them at all.

So, they get higher sales due to the lower price, and don't care about the money they lose. (In theory).

Has Sony managed to destroy the competition (in Europe) months ago when the console dropped to £200?

Sonic
Fri 19/04/02 at 21:15
Regular
"---SOULJACKER---"
Posts: 5,448
And no- I'm not talking about the similarities between the Xbox and N64 launches! (Both consoles dropped £100 within a month of launch).

Instead, I'm talking about the GC and the Xbox...

You see, MS really had a good thing going. No one would say that the Xbox is a bad console- it certainly has as good quality games as the PS2, and equal launch pricing. However, despite this, the Sony brand has come out on top, forcing MS to lower prices swiftly.

Now, unlike MS, Ninty already knew that Sony would dominate even if they did come out with the greatest console of all time... So rather than launch at a "normal" launch price (£300ish) they decided to lower the cost of the console AT THE OUTSET by not including extras like the DVD player.

The amazing thing is that Ninty, by planning to set a low price, have come off worst. Rather than have the lowest priced console that, although has no extras, comes at a price far less than the competition, they have managed to get a console with no extras at a price almost the same as the competition. Meanwhile MS may be making a huge loss, but this was always the intention.

Your thoughts…

Sonic

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