Can Microsoft continue to buy it’s way to victory?

18 02 2009

    It is no doubt that Microsoft, the creators of the Xbox 360, have put a lot of money into beating sony. With a major price drop on the 360, buying exclusive content, and even paying other developers of sony exclusives to bring their game to the console. While this strategy has worked very well so far, how long can it continue? How long can Microsoft continue to buy it’s way to victory?

    When Microsoft first said price drop, no one expected to be at the scale it was. The Xbox actually dropped in price lower than the Wii, which is drastically inferior the the Xbox. A massive price cut right before the holidays greatly raised sales. This was a desperate move for Microsoft as the PS3 started outselling the 360 for many months in a row. Shortly after the price cut, Xbox sales went up, but were still almost being matched by the PS3, which is currently selling at double the price. It helped the Xbox, but not as much as microsoft intended. 

    No one can doubt that Microsoft puts towards tons of money on gaining exclusive content, either it be Downloadable content, or games. Now most of the time, this ends up being a waste for Microsoft. Microsoft payed $50 million for exclusive GTA downloadable content that released almost over a year after the game came out. Now many people are out of the “GTA Phase” and have moved on to bigger, better games. This isn’t the first time Microsoft has wasted money on exclusive rights. 

    Microsoft keeps buying exclusives from third party, but how much longer can they go on doing this? Third parties will gladly accept the money to make a game exclusive to the 360, but it doesn’t come cheap, and doesn’t always pay off. If Microsoft were smart they would put the money  they are wasting on third party, and get some first party started. These days a console can’t live on just third party, especially with Sony going all out on their first party. Modern games are so expensive to make these days, that a third party would need a really good reason to make their game exclusive. 

     Microsoft has to much money to throw away, with so much wasted money on exclusive content, console repairs, price drop, and more. Even after all these actions, the Xbox continues to be outsold by the Wii, and equally numbed by the PS3. With so many great PS3 games coming out soon, such as Killzone 2, it is no doubt that Microsoft really needs to step up their game if they plan to stay ahead. 

Advertisements

Actions

Information

43 responses

18 02 2009
Alex

Why not talk, ps3 year over year sales decline?

18 02 2009
jidery

I will make a post on that soon.

18 02 2009
Alex

Great, is good to have things balanced, competition is good, but overreaction,over rated/under rated, fanboyism, and things like that are bad for the game industry. Thanks to the last gen Ps3 is now what it is, who guessed ps3/360 would have multiple cores cpus and HD gaming.

18 02 2009
jidery

You know man, its imposable to write an artical on another console with out being called a fan boy website. Will the fan boy wars ever stop? Soon i’m gona focus on sony’s faults, and ill get called an xbox fan boy……………just you wait.

18 02 2009
Keith

What exclusives? Isn’t that the latest criticism of the 360 – hardly any exclusives for 2009?

Look up the definition of “straw man argument.” That’s what this article is.

18 02 2009
Alex

i wrote some sh*t on a website as “ultimatek” if u want to check it out for insipiration on your next article, that would be good, haha

“http://www.hiphopgamershow.com/?p=3518#comment-6212”

18 02 2009
D.O.

I don’t think PS3 fanboys cry for 360 games rather I think they cry for DLC or maybe a price drop but I doubt they cry for 360 games (maybe games from earlier on) since their 1st party has been churning out exclusive after exclusive that makes them happy. I don’t think 360 fanboys cry for blu-ray (subtly wanting), from friends I know they’re crying for some first party support from Microsoft and that’s about it

18 02 2009
D.O.

double post

You should start your own website though Ultimatek/Alex you can write and from what I’ve read, you’re better than 75% of most writers I’ve seen.

19 02 2009
corndog

These are good points but a few counter points. First to your heading, how long can they continue? My question is why would they need to continue? There is only one more exclusive that is big on the PS3 that they do not have. MGS4 (metal gear Solid 4). Now that they have 28 million (actually sold ) to Sonys 18 million Publishers will not go back to being exclusive to PS3. Especially seeing how it is more economic to develop on 360 then translate to PS3. If anything Sony will need to hope people publish games on it’s system. It looks like 13 months development time for Bioshock to be translated just like it took 13 months for ovblivion to get translated. Also to the point of buying GTA IV DLC for $50 million. My reminder is it was part of the deal, to pay 50m for them to publish the game on 360 PLUS downloadable content! Not $50 for downloadable content. Otherwise they would have just paid for them to publish it. Which would have made Square Enix and a whole boat load of others to ask for cash just to publish a game. This way, Square for example would have had to make DLC for 360 only. Microsoft can see the obvious hole they would be digging if they only paid for DLC.

19 02 2009
corndog

I agree with you D.0. I see good opinion (though provoking) even though I don’t agree with it’s message. You are better than 75% (or more, possibly WAY MORE!)

19 02 2009
max

this article is rubbish.

19 02 2009
Kartones

Well, is that what Sony were doing previously (and I bet that still do)?

Exclusives are now more of a burden than of an advantage. Look at Capcom for example, they are gone multi-platform and will probably make more money than Konami (for MGS4) for example. A “private” xx million dolar exclusive buyout will help to cover development costs, but won’t give the same sales reach…

It’s in Microsoft’s nature to be very agressive and “buy a lot”, they started doing so with MS-DOS in their early stages and will keep doing it (each year they buy a lot of small companies or products, from virtualization engines to game companies). Without entering in rumblings of if they do so to “keep up with competitors” or to “have the best”, related to videogames is usually good for us.

Exclusive DLC is a bit absurd. Normal DLC is absurd too sometimes, figure restraining to just one console, with not 100% users having internet, and with even less willing to pay 1600 MS Points for an “expansion pack”. But if Rockstar got 50$ M, it’s not their problem, so cheers for them for that monetary boost 🙂

The 360 has some great exclusives, but a lot of the “previously exclusive” titles have been with time released to both PS3 and PC. It’s more of the “initial sales niche”, if it appears first on 360, MS wins. Then, it doesn’t matters if its also on other systems.

I could write a lot of points more, but more or less I’ll compact it on a sentence:
I don’t care, I don’t think is the best approach (multi-platform is the way to go for game devs and the “most fair” solution for us the gamers) but as long as good games are available, let them do what they desire.

19 02 2009
boobie

of corse they can there wallet is big enough.
50 mill to them isent even pocket money.

19 02 2009
yoyo

funny.

PS3 never went on par with the 360.

You might point out june 08 but, that was when MGS4 came out obviously. I even bought one for that great game.

PS3 will never outsell 360 on a normal cause. If 360 came out with an exclusive then 360 would outself PS3 by double than it already was.

19 02 2009
steve

why dont microsoft put there money in the 360 and make a decent 360 one that don,t break down if they cant make a good 360 then why should we beleive that they will make good exclusive games

19 02 2009
MovieScouse007

I would have had a great deal more respect for this article if didn’t read like a five year old schoolboy’s un-corrected homework!
Learn to construct sentences!
Learn the correct use of the capital letter!
Learn to spell or at least spell-check before you post!
And for crying out loud re-read your article before you post it! If it doesn’t make sense to you when you do so then it clearly isn’t going to make sense to anyone else!!!
English is a beautiful language and it angers me when it is raped by online morons who claim to be journalists!

19 02 2009
Neutral 2

That’s the microsoft way throw money at it till all competition is gone then what are you left with, more broken microsoft cupboard fillers.

19 02 2009
MakinDaMAN

Man, these fanboy sites and blogs need to be regulated. This is getting retarded. This person isn’t even a competent writer. Anyway, take a long hard look at recent software sales charts. Lower price point equals market penetration which equals software sales, which is where the real money is made in the console industry. At the end of the day Microsoft are a business who make business decisions in the best interest of their company and most have been successful. Fanboys like the writer of this article can cry more.

19 02 2009
Guy

Microsoft can keep doing it for as long as Sony can keep doing this.
Killzone 2 is a first party product and was estimated to cost 60-80 Million.
Both Gears of War titles where third party and cost about 20-30 Million COMBINED.

Even if Killzone 2 will match Gears in terms of sales (so far it doesn’t match it in terms of review scores), what do you think was the smart move of the two above? It seems like Microsoft “buy” another Gears title for the same money it cost Sony to produce a single Killzone 2 title internally.

BTW, even after the price drop Microsoft Makes money on every console, while Sony barely breaks even. You should ask yourself for how long can Sony continue to subsidize it’s way to 3rd place.

19 02 2009
lady

You made some really good points but you really need to look into your grammar a bit.

Who knows how long they can continue doing that. With the closing of third party studios among other things, I guess Microsoft will continue depending on third party for a good while…which is worrisome because it seems as if they have no intentions of really pushing the 360 hardware. First party games really show the power of your console-not third party or multiplatorms.

19 02 2009
Trekster_gamer

I think MS has done this not only for sales, also it helps to remove the ignorant stigma of the SONY brand. Once people purchase a 360 they see that the hardware is just as powerful, has a much better online service and still to this day a much bigger and better library of games. Sony is the one who is in trouble. The PS3 is over priced for what you get. People can say what they want but the 360 has beat the PS3 this gen, and that says a lot given the last gen was there first entry into the console market. I am sure that Sony and it’s loyal clone army will live the illusion that the PS3 will ever catch up this gen, but by that time there will be another XBOX and it will be more powerful and cheaper.

19 02 2009
N2NOther

“Now many people are out of the “GTA Phase” and have moved on to bigger, better games. This isn’t the first time Microsoft has wasted money on exclusive rights. ”

Really? Can you back up both claims? I know about 10 people on my friend’s list that bought the DLC and that’s 10%. With 17 million people on LIVE at an average of 10%, that would be 1.7 million people buying it which would put the first half of the DLC in the black. Now, mind you, I’m just speculating but my numbers are at least based on some fact, not like yours, which you don’t even attempt to do. Instead you offer baseless opinion. Which is your right, but if you want to be taken seriously, you should at least back it up. Not to mention that you have deemed it a waste and yet it’s only been available for 2 days. Let’s wait until the numbers are in, k?

19 02 2009
R8pmQui3tly

I don’t understand why microsoft does this we all know they are famous for releasing stuff and fixing it as it breaks such as vista and so forth. I am a firm beleiver in exclusives but how microsoft does it is totally wrong I own both systems I am a fan of both systems and feel I am not being ripped off by either companies. Yes microsoft was built of theivery if u ever watch silicone valley u would see what I am talking about but look at them now the people they stole from is kicking thier butts in in slot of areas now yeah money buys u power but it doesn’t earn u respect… Now Sony and thief cockiness has screwed them hard with Kaz Harai saying the ps3 could cure cancer and bullshit like that really kicked them in thier junk… Now Sony chooses not to buy exclusives and let the developer decide if they want it to be on the ps3 and that’s it. I am not a fanboy of either system but I do have to say one thing I have had 6 xbox 360’s and am still using the same ps3 since release day. Both have thief faults and I felt robbed with gears 2 if I wanted a haloish matchmaking system I wouldve bought halo. And resistance 2 was highly over rated…. Weres microsofts exclusives in 09′ when Sony has about 4 or 5 coming out? And please don’t bring up that halo expansion pack that’s coming out please microsoft give us something new and where the he’ll is alan wake at for Christ sake

19 02 2009
hah

why do people hate sony did sony fuck your mom or some thing ? i realy dont get it. (not trying to sound like a fanboy because i realy hate them) but how much consoles did ms realy sell not meny people still have there first xbox360.. ms has allways stolen things from outher people even way back with apple/mac. i hope killzone2 sells alot of copys for sony but im sick of fps there all the same the only one i want is free rads Starwars Battlefront 3 that game was the shit on the ps2 and xbox, story mode sucked ass but it made up for it online(with the funest glitches ever lol).

19 02 2009
lag me out

look at bill gates sitting between the legs of his concubine watching full trucks dumping cash b4 him like m$ give a fuck about money they’re pockets r fucking bursting they need to chuck it somewhere so waste it on gay azz titles and dont give a fuck about consumer reliability fuck all

19 02 2009
Hoops

Microsoft must be doing something right over SOny. They are outselling them at every turn. But where the real profits come from: Software sales, its not a contest. The Xbox360 destroys the PS3 in this area. So this BLOG is pointless.
Sony will not catch up to the Xbox360 this generation no matter how much people want this to happen.
As for MS buying exclusives. Funny how he does not mention how Sony bought all those exclusives during the PS1 and PS2 era. You think Sony did not buy them? LOL
MS is doing EXACTLY what Sony did…and all you see are blogs from unkowns saying this is a bad idea.
Where they saying this when Sony bought all those exclusives?
Regardless as i said. MS must be doing something right. They are far ahead of the PS3 in all sale areas.
See how many games you can see on the top 5 list for the PS3 going back when it launched. That should give you a hint as to how Sony is doing this generation. Lets not even mention lost marketshare at almost 40%

19 02 2009
Hoops

What will be funny is if this DLC content sells great. LOL

19 02 2009
David Macphail

Hoops, are you mentally retarded? The 360 is outselling the PS3 at every turn??? LOL, maybe you should go look up the latest Japaneese hardware sales data, dumbass! That comment alone makes your entire fanboy rant wrothless!

Microsoft do NOT have the money to spare, if that were ture then why are they axing 5,000 jobs and closing their own internal game studios??? Microsoft have lost billions on the Xbox division and judging by the quality of that division……it’s not hard to see why.

Let’s not talk about why the 360 holds single – digit market share in japan despite being the cheapest console on the market……………..

19 02 2009
Hoops

What company has cut more then 30,000 jobs over the past 10 years through two financial restrutures? Has MS done this? How much money did SOny lose this fiscal year? Over 3 BILLION total. They lost money and MADE no profit.

Japan is the ONLY area where the PS3 is now outselling the PS3 and thats not a surprise. And even then PS3 sales in Japan for a JAPANESE console are poor.
Moreover Japanese gaming market is no longer the leader anymore. Its the US and Eurpoe. The PS3 is behind the Xbox360 in those areas.
Now lets talk software sales. Take a look where the PS3 games stack to Xbox360 games sale wise world wide overall.
The PS3 division is in the red. The Xbox division is now profiting. Want to check? Go look it up.

19 02 2009
Hoops

Tell me where SOny is outselling the Xbox360 besides Japan?
I will wait.

19 02 2009
Hoops

http://www.physorg.com/news154246031.html

Yes. Sony is doing real well.

19 02 2009
David Macphail

Where is Sony outselling the 360 besides Japan? Uh…….Europe? Or as Microsoft will call it, PAL regions. Yeah, go look it up!

Also, you say PS3 console sales in Japan are poor? PS3 sells almost as much as the Wii week – in, week – out. Are you trying to tell me the Wii is selling poorly? LOL, are you delusional???

How many internal game studios have Sony closed this year? Go on, i’ll wait………y’know, maybe this is why Microsoft don’t have any exclusives coming out this year, LOL!

Also, i see that while going into a rampage with hardware sales figures you failed to accept the fact that the 360 is half the price of the PS3. Considering the price difference between the two…..the 360 is selling REALLY bad (Not just in Japan).

Hope i didn’t make you wait too long…………

19 02 2009
Hoops

Japan has become so irrelevent this generation. The PS3 sales in Japan are not even that great. You tell me when MGS4 is release in Japan it goes in the bargin bin only 4 weeks after release.
Then tell me when you have EVER seen an American console outsell a Japanese one 6 weeks in a row?

http://xbox.joystiq.com/2008/10/27/xbox-360-tops-ps3-in-japan-for-sixth-straight-week/

Have you seen sale numbers last month for all Sony gaming systems?
Then have you seen the sales numbers for their games?
So far this month is actually looking worse for SOny then last month

http://news.vgchartz.com/news.php?id=3005

Maybe you missed the memo but the PS3 is selling like crap and until they decide to cut the price, it wont get any better anytime soon.

19 02 2009
Hoops

You proved nothing. You gave no data. You just ranted on like a SOny fanboy would to spin poor PS3 sales. Only Japan is outselling the Xbox360. Which is expected. Where else? Waiting still. http://www.vgchartz.com/
How many SOny stores did they close? How many factories did they close?
30% cut in r&d for the entire company. Sony did all that.
And with every single PS3 sold Sny loses money so your HALF price compared to the PS3 is pointless. LOL
One $199 Arcade model sold profits more then the $500 PS3. Why? Because the $500 PS3 or $400 PS3 is sold at a loss. Want to try again?
http://www.gamesindustry.biz/articles/sony-japan-to-close-factories-and-major-divisions-report

And expect to see SOny close more. Their shareholders have told Springer that the financial restruture is NOT enough. Its too conservative.
http://translate.google.com/translate?prev=_t&hl=en&ie=UTF-8&u=http://homea.people.com.cn/GB/8807545.html&sl=zh-CN&tl=en&history_state0=

Keep telling yourself Sony is doing well…say it enough times i assume you think it will come true lol

19 02 2009
Hoops

Maybe you want to travel back in time when Japan was relevent.
Even with RROD and so called no exclusioves coming out as SOny fanboys like to say, the Xbox360 is still outselling the PS3 2-1 in most cases.
Outside of Japan, can you see ANY PS3 game in the top 10? If it is its at the last slot. The rest are filled by Wii and Xbox360 games.
But prove me wrong on this and keep posting Japan sales.
You know what is comical besides you thinking the PS3 IS OUTSELLING THE XBOX360 overall is the fact that Japan has sold almost 3 million PS3 and Xbox360 has only sold almost 1 million.
Thats only 2 million behind a Japanese console. Yet Sony fanboys like you keep stating how 8+ million consoles the PS3 is behind the Xbox360 is not big at all, yet say 2 million consoles the Xbox360 is behind in Japan is monumental. LOL Hypocrisy is best i see. lol

19 02 2009
Hoops

I await your FACTS AND FIGURES TO PROVE THE PS3 IS DOING SO GREAT WHEN LAST MONTH IT SAW DECLINES IN SALES ON ALL OF ITS SYSTEMS ACROSS THE BOARD WHILE THE Wii and Xbox360 saw increases. But keep bringing up Japan. LOL

19 02 2009
Hoops

Just as i thought. You can only rant and not prove your Sony fanboy crying.
When you decide to grow a pair, respond only with FACTS and figures. You telling us is not proof. Any asshole can do that. You just proved that with the above posts LOL

19 02 2009
Alex

HAHA, nice talking!

19 02 2009
360fanboy

why is it a load of fanboys come here to fight a pathetic war.
the ps3 isnt the only thing sony sells so bassing your stupid comments on how sony is loosing “loosing what” a stupid console war (lol i dont see m$ saying the 360 was built to last 10 years).
by the time m$ brings out a new console the price of the ps3 vs new m$console mill make the ps3 a much better choice and bear in mind the ps3 isnt even being pushed yet to show off its power (just look up hirari) and the 360 is upscaling to 1080p its not true 1080p just look at burnout paradise on the box it says 1080p but then look at the pc version running at 1280×768 (720p) it looks so much better.
just 1 last thing i gotta say but the ps3 has only been out 2 years and has very good build quality unlike the 360 (im on my 4th console now so $$$ to m$ and so far cost me £700) nice 1 m$ for making the 360 so crap.

20 02 2009
boobie

@ Trekster_gamer
how is it over priced.
you ged wifi the add on for the 360 is 120 AU,
which puts it $80 less than the ps3.
it has NO SD card ports.
headsets and HDD you have to use a M$ one, which is tripple the price of a third party one like madcatz or logitech.
the 120GB M$ HDD is 180 AU i bought a 750GB HDD for my ps3 for 20 bucks more.
to get the full advantage of online you have to shell out 50/year for gold service.
so in 4 years you have already wasted the money you saved.
there is no blu-ray drive in the 360, last time i checked a blu-ray drive is more than 80 bucks.
so if anything the 360 is over priced.
its $200 less but it has 10% of the features

20 02 2009
Roger

The Xbox360 actually has hardware built inside to upscale unlike the PS3.
Btw. Street Fighter 4 for the PS3 runs lower then 720p at times. The Xbox360 version never. GTA4 runs under 720p on the PS3 and runs at true HD on the Xbox360.
And by the time the next round of systems come out, the Xbox360 will be under $150 and the PS3 will most liley be under $300.
The PS3 will never have the price advanatge this generation. Fact.
And why are you comparing resolutions to the PC when the PC can enable and sample anti-alaising over 4 samples up to 16 and do the same for Ansiotrpopic filtering when the Xbox360 and PS3 can only do 4. As a matter of fact, the PS3 AA i inferior to the Xbox360because the PS3 has no EDRAM to help it achieve this. Why do you think SF4 for the PS3 has Alaising issues….

20 02 2009
Roger

You can buy the arcade for under $200 and go online and buy a western digital 120g HDD for the Xbox360 for $50. Then buy the Wifi if you want or just ise your laptop for the connection for free.
You just got yourself a Xbox360 with internal memory and a 120g HDD and wifi FOR UNDER $250

26 02 2009
boobie

than add $40 for the adapter so you can use optical cables, (the only way to get the proper adapter is to buy a ms HDMI cable) wich was $40 off ebay god knows how much the shops would want for it 100+ probably.
how can you seriously sell a so called “nex gen” console without a optical port.
first HDMI now this how pathetic.
i bought an arcade on release of NG2 from EB, bought the acsess off ebay for 1/2 of the price at the shops just to get it on par with the ps3.
it still cost me more than my ps3 wich now has a 750GB HDD
i dont care how expensive some thing is as long its worth it the 360 simply is not.
i dont know about any one else but i dont pay 500 AU for a console wich is going to break every 6 months.
ive had my ps3 since july 2006 so roughly 2.5 years and still has not been sent in for repairs.
id love to see the 360 last 1/4 that long

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s




%d bloggers like this: