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From http://www.bloomberg.com/fgcgi.cgi? T=marketsquote99_news.ht&s=APKwWjRRzTWljcm9z
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Certainly not going as MS intended. Not that they can't survive on the other two markets, but it's been widely claimed that they need to make an impression in Japan in order to be taken seriously in the market.
Have MS cut the price of Xbox in Japan? I haven't heard anything, so I'm not sure.
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Microsoft Must Cut Japan Xbox Price to Help Sales (Update2)
By Hiroshi Suzuki
Tokyo, April 4 (Bloomberg) -- Microsoft Corp.'s bid to unseat Sony Corp. as Japan's No. 1 video-game console maker is failing, forcing the company to consider cutting the price of its Xbox machine just six weeks after its debut, investors said.
Since the Xbox's release on Feb. 22, Microsoft has sold about 165,000 units, falling one third short of its goal to sell out of its 250,000 initial shipment by now, Media Create Co., a Japanese research company, said. The sales figures are based on a nationwide survey of retailers and video-rental stores.
Microsoft's attempt to topple Sony in Japan was hampered after the company was forced to repair or replace defective versions of the Xbox when customers complained the machine damaged some game disks. Xbox is part of Microsoft's attempt to extend its dominance of computer operating systems to the livingroom where consumer-electronics makers like Sony hold sway.
``Investors already think Xbox is irrelevant in the Japanese market,'' said Makoto Suzuki, who helps manage $1.1 billion in Japanese equities at Chuo Mitsui Asset Management Co. ``Sony is now the maker of choice among owners of home-use game consoles.''
Microsoft continues to lose ground. In the week ended Sunday, it sold a little more than 4,300 Xboxes in Japan, while Sony's PlayStation 2 sales topped 100,000 and Nintendo's GameCube sales reached almost 25,000, Media Create said.
Tough Sell
Analysts and investors say Microsoft faces a tough sell in Japan, where the company counted on a successful debut to prove itself among game fans and win the support of game developers.
They add that a price cut is no assurance of higher sales. The Xbox sells for 5,000 yen more than Sony's PlayStation 2 console and 10,000 yen more than Nintendo's GameCube.
Hirohisa Ohura, managing director of Microsoft's Japan unit, Microsoft Co., said last month that the pace of Xbox sales in Japan is slower than they expected.
Lagging weekly sales of the 34,800 yen ($260) machine may pressure Microsoft to shore up sales by slashing prices or bundling the game console with software to attract buyers, investors said.
``It's a certainty that the Xbox isn't a threat anymore to Sony's PlayStation 2,'' said Toshiyuki Fukushima, who helps manage 250 billion yen in Japanese equities at Sumisei Global Investment Trust Management Co. ``I'm interested in how this will affect the parts suppliers for the Xbox.''
Stakes
Japan, which accounts for about a quarter of all video-game sales, is crucial for Microsoft. The country is home to some of the industry's best-known game designers such as Nintendo's Shigeru Miyamoto and Konami Computer Entertainment Japan Inc.'s Hideo Kojima, designer of the ``Metal Gear Solid'' series of espionage games.
Adding further complications for Microsoft, the company today said President and Chief Operating Officer Rick Belluzzo, who took a major role in initiating the company's Xbox business, will leave by September.
The departure of Belluzzo, who was responsible for the company's television platform and home-entertainment business, may underscore other problems for Microsoft, analysts said.
Last month, the company scrapped a joint venture in Japan with Fujitsu Ltd. offering Internet-access services through television sets because of a low number of users.
Redmond, Washington-based Microsoft has no choice but to cut the retail price of the Xbox in Japan, said Takashi Oya, an analyst with Deutsche Securities Ltd. Oya said the company may need to reduce the price by as much as 10,000 yen as early as next month, following up with price cuts in the U.S. and the U.K.
Pre-emptive Cut
The Xbox and Sony's PlayStation 2 both sell for $299 in the U.S. In December, Sony cut the PlayStation 2's price by 15 percent in Japan as a pre-emptive move to thwart Microsoft.
Cutting the PlayStation 2 price is always an option depending on market demand, though the No. 2 consumer-electronics maker typically doesn't comment on the timing of any reductions, Sony Computer Entertainment Inc. spokesman Kenichi Fukunaga said.
Microsoft risks losing potential game users and damaging its relationship with existing game software suppliers if it doesn't cut the Xbox's price, Deutsche Securities' Oya said. At present, 11 Japanese gamemakers, excluding Microsoft's Japan unit, supply 18 Xbox game titles.
``There's no point in discussing the issue,'' Oya said. ``Microsoft should not be thinking about saving face, they should be thinking about how to minimize the damage.''
Microsoft's shares rose as high as $57 in after-hours trading. The stock fell 97 cents to $56.33 before Belluzzo's departure was announced, and has declined 15 percent this year.
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Certainly not going as MS intended. Not that they can't survive on the other two markets, but it's been widely claimed that they need to make an impression in Japan in order to be taken seriously in the market.
Have MS cut the price of Xbox in Japan? I haven't heard anything, so I'm not sure.
-----
Microsoft Must Cut Japan Xbox Price to Help Sales (Update2)
By Hiroshi Suzuki
Tokyo, April 4 (Bloomberg) -- Microsoft Corp.'s bid to unseat Sony Corp. as Japan's No. 1 video-game console maker is failing, forcing the company to consider cutting the price of its Xbox machine just six weeks after its debut, investors said.
Since the Xbox's release on Feb. 22, Microsoft has sold about 165,000 units, falling one third short of its goal to sell out of its 250,000 initial shipment by now, Media Create Co., a Japanese research company, said. The sales figures are based on a nationwide survey of retailers and video-rental stores.
Microsoft's attempt to topple Sony in Japan was hampered after the company was forced to repair or replace defective versions of the Xbox when customers complained the machine damaged some game disks. Xbox is part of Microsoft's attempt to extend its dominance of computer operating systems to the livingroom where consumer-electronics makers like Sony hold sway.
``Investors already think Xbox is irrelevant in the Japanese market,'' said Makoto Suzuki, who helps manage $1.1 billion in Japanese equities at Chuo Mitsui Asset Management Co. ``Sony is now the maker of choice among owners of home-use game consoles.''
Microsoft continues to lose ground. In the week ended Sunday, it sold a little more than 4,300 Xboxes in Japan, while Sony's PlayStation 2 sales topped 100,000 and Nintendo's GameCube sales reached almost 25,000, Media Create said.
Tough Sell
Analysts and investors say Microsoft faces a tough sell in Japan, where the company counted on a successful debut to prove itself among game fans and win the support of game developers.
They add that a price cut is no assurance of higher sales. The Xbox sells for 5,000 yen more than Sony's PlayStation 2 console and 10,000 yen more than Nintendo's GameCube.
Hirohisa Ohura, managing director of Microsoft's Japan unit, Microsoft Co., said last month that the pace of Xbox sales in Japan is slower than they expected.
Lagging weekly sales of the 34,800 yen ($260) machine may pressure Microsoft to shore up sales by slashing prices or bundling the game console with software to attract buyers, investors said.
``It's a certainty that the Xbox isn't a threat anymore to Sony's PlayStation 2,'' said Toshiyuki Fukushima, who helps manage 250 billion yen in Japanese equities at Sumisei Global Investment Trust Management Co. ``I'm interested in how this will affect the parts suppliers for the Xbox.''
Stakes
Japan, which accounts for about a quarter of all video-game sales, is crucial for Microsoft. The country is home to some of the industry's best-known game designers such as Nintendo's Shigeru Miyamoto and Konami Computer Entertainment Japan Inc.'s Hideo Kojima, designer of the ``Metal Gear Solid'' series of espionage games.
Adding further complications for Microsoft, the company today said President and Chief Operating Officer Rick Belluzzo, who took a major role in initiating the company's Xbox business, will leave by September.
The departure of Belluzzo, who was responsible for the company's television platform and home-entertainment business, may underscore other problems for Microsoft, analysts said.
Last month, the company scrapped a joint venture in Japan with Fujitsu Ltd. offering Internet-access services through television sets because of a low number of users.
Redmond, Washington-based Microsoft has no choice but to cut the retail price of the Xbox in Japan, said Takashi Oya, an analyst with Deutsche Securities Ltd. Oya said the company may need to reduce the price by as much as 10,000 yen as early as next month, following up with price cuts in the U.S. and the U.K.
Pre-emptive Cut
The Xbox and Sony's PlayStation 2 both sell for $299 in the U.S. In December, Sony cut the PlayStation 2's price by 15 percent in Japan as a pre-emptive move to thwart Microsoft.
Cutting the PlayStation 2 price is always an option depending on market demand, though the No. 2 consumer-electronics maker typically doesn't comment on the timing of any reductions, Sony Computer Entertainment Inc. spokesman Kenichi Fukunaga said.
Microsoft risks losing potential game users and damaging its relationship with existing game software suppliers if it doesn't cut the Xbox's price, Deutsche Securities' Oya said. At present, 11 Japanese gamemakers, excluding Microsoft's Japan unit, supply 18 Xbox game titles.
``There's no point in discussing the issue,'' Oya said. ``Microsoft should not be thinking about saving face, they should be thinking about how to minimize the damage.''
Microsoft's shares rose as high as $57 in after-hours trading. The stock fell 97 cents to $56.33 before Belluzzo's departure was announced, and has declined 15 percent this year.
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Mantis wrote:
> I believe the N64 did poorly in Japan, but that didn't really stop it
> doing quite well in Europe and America.
>
> And I'll have you know, the Japenese games market is shrinking, and
> the European and American markets are rapidly expanding. If MS gain a
> solid foothold in America(which it has) and Europe the the Xbox will
> be around for a few years yet. Its made too much of an impact to
> simply fade away.
>
> When you think about it, Xbox was never expected to storm Japan. Its
> a western console made for western gamers, and people from japan
> generally frown upon anything technological which is big. Now that it
> is not selling so good over there, everyones making a big fuss about
> somthing we seen coming all along.
>
> And this artice doesn't point out anything positive. I read reports
> that Halo, an very american game which is a FPS(a genre not popular in
> Japan), reached #5 in the all formats chart. Not bad for a supposidly
> doomed console.
>
> Anyway if they don't by it, it's their loss. They are the ones who
> are missing out on some great gaming.
You've got some fair points in your post mate, but you're forgetting that the Dreamcast also had some games in the top spots at first and look where that is now.
> I believe the N64 did poorly in Japan, but that didn't really stop it
> doing quite well in Europe and America.
>
> And I'll have you know, the Japenese games market is shrinking, and
> the European and American markets are rapidly expanding. If MS gain a
> solid foothold in America(which it has) and Europe the the Xbox will
> be around for a few years yet. Its made too much of an impact to
> simply fade away.
>
> When you think about it, Xbox was never expected to storm Japan. Its
> a western console made for western gamers, and people from japan
> generally frown upon anything technological which is big. Now that it
> is not selling so good over there, everyones making a big fuss about
> somthing we seen coming all along.
>
> And this artice doesn't point out anything positive. I read reports
> that Halo, an very american game which is a FPS(a genre not popular in
> Japan), reached #5 in the all formats chart. Not bad for a supposidly
> doomed console.
>
> Anyway if they don't by it, it's their loss. They are the ones who
> are missing out on some great gaming.
You've got some fair points in your post mate, but you're forgetting that the Dreamcast also had some games in the top spots at first and look where that is now.
how sad would you be if your 30 pound (weight, not currency) XBOX became obsolete because the japanese don't like it and so don't develop for it? that would be a shame.
the japanese like small, maybe they don't like the XBOX because it's a "little" too big
the japanese like small, maybe they don't like the XBOX because it's a "little" too big
I believe the N64 did poorly in Japan, but that didn't really stop it doing quite well in Europe and America.
And I'll have you know, the Japenese games market is shrinking, and the European and American markets are rapidly expanding. If MS gain a solid foothold in America(which it has) and Europe the the Xbox will be around for a few years yet. Its made too much of an impact to simply fade away.
When you think about it, Xbox was never expected to storm Japan. Its a western console made for western gamers, and people from japan generally frown upon anything technological which is big. Now that it is not selling so good over there, everyones making a big fuss about somthing we seen coming all along.
And this artice doesn't point out anything positive. I read reports that Halo, an very american game which is a FPS(a genre not popular in Japan), reached #5 in the all formats chart. Not bad for a supposidly doomed console.
Anyway if they don't by it, it's their loss. They are the ones who are missing out on some great gaming.
And I'll have you know, the Japenese games market is shrinking, and the European and American markets are rapidly expanding. If MS gain a solid foothold in America(which it has) and Europe the the Xbox will be around for a few years yet. Its made too much of an impact to simply fade away.
When you think about it, Xbox was never expected to storm Japan. Its a western console made for western gamers, and people from japan generally frown upon anything technological which is big. Now that it is not selling so good over there, everyones making a big fuss about somthing we seen coming all along.
And this artice doesn't point out anything positive. I read reports that Halo, an very american game which is a FPS(a genre not popular in Japan), reached #5 in the all formats chart. Not bad for a supposidly doomed console.
Anyway if they don't by it, it's their loss. They are the ones who are missing out on some great gaming.
===SONICRAV---> wrote:
> (no one has provided figures to show poor sales yet)
Because Microsoft haven't released them. That and the price cut say as much as figures ever could, I reckon.
> (no one has provided figures to show poor sales yet)
Because Microsoft haven't released them. That and the price cut say as much as figures ever could, I reckon.
Of course it's irrelevant- it's a Wetsren console, with western style games.
Now, since Europe is the BIGGEST profir maker for the industry, and, according to retailers, the console is doing fairly well in Europe (no one has provided figures to show poor sales yet), and the console has done very well in America then it'll be fine.
After all, Ninyt survived without Europe for all those years;)
Now, since Europe is the BIGGEST profir maker for the industry, and, according to retailers, the console is doing fairly well in Europe (no one has provided figures to show poor sales yet), and the console has done very well in America then it'll be fine.
After all, Ninyt survived without Europe for all those years;)
I dont see why a console, cant stay in business without conquoring Japan surely it can exist and do ok outside of it, in the us and europe!?!, well I hope so anyway
I don't really give a monkey about how well it does in Japan. If they don't like it, then that's up to them.
Naturally it'd be great if MS could be a big playing force there, but aslong as they keep on announcing (and I hope delivering) quality games then that's good enough for me :-)
Naturally it'd be great if MS could be a big playing force there, but aslong as they keep on announcing (and I hope delivering) quality games then that's good enough for me :-)
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