MS: We need to deliver most value per dollar in this economic climate

[Zeus]

Microsoft's Shane Kim has noted that the company is cautiously optimistic about Xbox 360 sales over the Holiday period despite the tough economic climate. He noted that during difficult times, people may well cut back on big purchases like automobiles but they are still looking for entertainment. Therefore a big objective for MS is to deliver the most value per dollar.


But things could get tougher next year, said Shane Kim, Microsoft's vice president of strategy and business development for the videogame business, as the economy gets sicker and people cut back spending even more.

The video game business is on track to grow 20 percent this year, Kim told the Reuters Media Summit in New York, but "people are not projecting that kind of growth" for 2009.

"Who knows, maybe flat performance will be considered a remarkable achievement," Kim said. "It's difficult to predict the future," he said, adding that the gaming industry has traditionally fared well in economic downturns as people turn to stay-at-home entertainment.

"While they may cut back on large purchases like automobiles or appliances, they're still looking for entertainment," said the executive, who focuses on strategic planning and partnerships for Microsoft's interactive entertainment business unit.


News Source: <A href="http://www.reuters.com/article/Media08/idUSTRE4B25SS20081203" target="_blank">Reuters</a>

[gayps3lover]

id have to say theyve already done it

and in case anyone tries to mention it, bluray is not value :)

[Blazeking]

id have to say theyve already done it

and in case anyone tries to mention it, bluray is not value :)

We'll see when MS announces the next xbox with a DVD drive.
Would that be something you would STILL like to have then?

[Totalfixation]

Last I recall they do have a DVD box, but if your referring to bluray, we'll wait and see.

Also would agree gayps3lover about the xbox already being a value system.

[msanchez]

Are they stealing marketing ideas from sony now? Just like the ps3's value:feature ratio depends on the individual so does the 360's. Some people don't want wifi, BD, standard HDDs, or to deal with sony, but on the flip side other people want wifi, BD, standard HDDs, and to deal with sony.

[danight]

Are they stealing marketing ideas from sony now? Just like the ps3's value:feature ratio depends on the individual so does the 360's. Some people don't want wifi, BD, standard HDDs, or to deal with sony, but on the flip side other people want wifi, BD, standard HDDs, and to deal with sony.

Also if you wanna get picky, the xbox 360 came out a year earlier than ps3 so you could say sony copied microsoft for the most part. With the exception being blu-ray of course being put in every unit vs being a addon.

But for as many people who hate sony there is probably more that hate microsoft. But no one can deny the 360 at $199.00 is the potential downfall for ps3. If microsoft takes another price cut next year, its game over for ps3.

But next gen is expected to start in 2 years. Microsoft is in great shape with the game lineups and cheap price tag. Sony needed a price cut bad and march may be to late unless its a $100.00.

[switchg3ar]

Also if you wanna get picky, the xbox 360 came out a year earlier than ps3 so you could say sony copied microsoft for the most part. With the exception being blu-ray of course being put in every unit vs being a addon.

But for as many people who hate sony there is probably more that hate microsoft. But no one can deny the 360 at $199.00 is the potential downfall for ps3. If microsoft takes another price cut next year, its game over for ps3.

But next gen is expected to start in 2 years. Microsoft is in great shape with the game lineups and cheap price tag. Sony needed a price cut bad and march may be to late unless its a $100.00.


At 200 dollars a pop I picked up a 360 one for each room it's a great value. I even bought one for the bathroom so I can play on the can it's amazing. I got 6 360s thank you black Friday.

[Calidrifter]

id have to say theyve already done it

and in case anyone tries to mention it, bluray is not value :)

ok its not.. because you said so.:rolleyes:
MS is on a roll right now. They are doing what needs to be done in these times..though I don't think any other company has the financial backing to make these same offers.

[SiR]

I would like wifi in my 360. It's kind of a hassle using my laptop for wireless :|

[msanchez]

Also if you wanna get picky, the xbox 360 came out a year earlier than ps3 so you could say sony copied microsoft for the most part. With the exception being blu-ray of course being put in every unit vs being a addon.

But for as many people who hate sony there is probably more that hate microsoft. But no one can deny the 360 at $199.00 is the potential downfall for ps3. If microsoft takes another price cut next year, its game over for ps3.

But next gen is expected to start in 2 years. Microsoft is in great shape with the game lineups and cheap price tag. Sony needed a price cut bad and march may be to late unless its a $100.00.

I'm not trying to argue which is better, because that depends entirely on the likes/dislikes of the individual. I'm saying that sony have always been the ones to mention "Well you get all this for this price" while the 360's main line of defense was usually "well what if I don't want this?" basically PS3 had all these features that according to sony made the investment worthwhile, while the 360 gave you "options" to upgrade if you wanted to.

[switchg3ar]

I would like wifi in my 360. It's kind of a hassle using my laptop for wireless :|

wifi is overrated you have to secure it, then the connection is not always 100% all the time. Microsoft did us a favor by not including it. If they would get rid of the dvd drive and just sell it as a streaming device that would be really cool say for like 100 bucks. I don't need the controllers because I have it from my other systems. There is so much potential.

[segaman1977]

I'm not trying to argue which is better, because that depends entirely on the likes/dislikes of the individual. I'm saying that sony have always been the ones to mention "Well you get all this for this price" while the 360's main line of defense was usually "well what if I don't want this?" basically PS3 had all these features that according to sony made the investment worthwhile, while the 360 gave you "options" to upgrade if you wanted to.

Very good observation. And in times of economic pressures, people will steer to the minimum basics. Even in other markets like cars, SUVs and Trucks are losing to cheaper fuel efficient compact cars. Sony really needs to produce budget PS3. The Blu-Ray will be an obstacle, but they could cut a hundred off. They could drop back to 20GB HD, no wireless adapter, a cheaper corded controller, basic a/v cables, and a top loading tray with push buttons instead of the more expensive static buttons. Kinda like the slim PS2 design. They could also revert back to a quick setup card instead of those thick manuals and put the additional text on the Hard Drive. I sure that it would take a while to design this but the economy is going to be in the crapper for a few years. They need to plan for next year. I bet you Microsoft is already planning their next price cut for next summer.

[wpc]

most value per dollar?! people need to think about long term w/o xbl gold you better off getting a wii. The best value about 360 is if you planning to flash and play backups and not use xbl.

[segaman1977]

most value per dollar?! people need to think about long term w/o xbl gold you better off getting a wii. The best value about 360 is if you planning to flash and play backups and not use xbl.

If the numbers are accurate, the above average gamer plays games about 45-60 hours a month. I know I am easily in the 45 range. Going by the US consumption average of 12.1 cents per KWh, the Playsation 3 costs gamers $3 more a month to run than the 360. With Xbox Live at $4 a month, I can not see an advantage for a free less intriguing service.

[Patango]

If they wanted to trounce the competition, they could allow a port of XBMC to the 360.

That was *THE* killer app for the XBox, and the reason I still use mine everyday.

There seems little point in going backwards by buying a 360.

[Cue]

If the numbers are accurate, the above average gamer plays games about 45-60 hours a month. I know I am easily in the 45 range. Going by the US consumption average of 12.1 cents per KWh, the Playsation 3 costs gamers $3 more a month to run than the 360. With Xbox Live at $4 a month, I can not see an advantage for a free less intriguing service.

What? Start reading

http://www.nrdc.org/energy/consoles/files/consoles.pdf

edit: heres a small clue the PS3 does not cost $3 more to run for an average of 45hrs a month in fact the TOTAL cost is not even a dollar.

[Blazeking]

But next gen is expected to start in 2 years. Microsoft is in great shape with the game lineups and cheap price tag.

You mind sharing that next-gen timeline that you have gotten from the next-gen association. Where did you get this "expected to start in 2 years" garbage from?

When Xbox goes next-gen in "2 years", it should NOT have a DVD drive as that is OLD-GEN. Your discs should hold over 50GB standard (doesn't have to be blu-ray for you sony haters).