Linked by Thom Holwerda on Sat 25th Aug 2012 06:15 UTC
Microsoft Microsoft's response to Apple's win is probably the most cringeworthy of all. Blatantly admitting Windows Phone can't make a dent in the market on merit, but instead requires the court room to do so, Bill Cox, senior director of Windows Phone marketing communications, said: "Windows Phone is looking gooooood right now." Nauseating.
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RE[4]: Windows Phone
by bassbeast on Mon 27th Aug 2012 16:08 UTC in reply to "RE[3]: Windows Phone"
bassbeast
Member since:
2007-11-11

1.- Japan is VERY nationalist and loyal to local products, not to mention placing tariffs on foreign goods (so much for free trade huh?) and 2.- The Japanese have VERY different taste in games that frankly western devs have no interest in making. How many western dating simulators have you seen?

The simple fact is the Blu Ray was a BAD idea and has cost Sony billions over the life of the system due to the high cost of the units without being able to make it up with sales of games and BD movies. Last numbers I saw had MSFT at an 8 game sell through rate, while Nintendo had 2 and Sony 3, big difference there.

As for the Apple verdict helping MSFT? Well we do know that MSFT and Apple have cross licensing agreements so its not like they are gonna go after each other like they did in the 80s, but whether or not MSFT gets a foot in the door with tablets frankly will come down to how much money Ballmer is willing to flush. If they price the surface at $499-$599? DOA, no prayer, toast. If they put out a pad with $499 Apple specs but a Kindle price? Then they can probably buy their way in, even if they are flushing money down the toilet.

Don't forget that is the same route MSFT took with the XBox, selling at a loss to get their butts in the door. Unlike many of the Android vendors they can afford to drop a half a billion or more right off the bat by selling them dirt cheap and then hoping to make it up on the appstore.

In any case I think we are gonna see MSFT throw money around like never before because they know that X86 is mature and if they want serious growth like they had in the 90s then the only way they are gonna get that is by getting into mobile, no matter the cost.

Reply Parent Score: 2

RE[5]: Windows Phone
by lucas_maximus on Mon 27th Aug 2012 18:34 in reply to "RE[4]: Windows Phone"
lucas_maximus Member since:
2009-08-18

All consoles except for nintendo's have always been sold at a loss.

Reply Parent Score: 2

RE[6]: Windows Phone
by bassbeast on Tue 28th Aug 2012 05:23 in reply to "RE[5]: Windows Phone"
bassbeast Member since:
2007-11-11

The problem friend is like the Sega Saturn thanks to the combo of cell and BD you have a system that most likely will NEVER be sold at anything but a loss. With the PS1, PS2, XBox 1, and X360 they were able to eventually make units with less chips, smaller chips, and were able to begin selling them at a profit. For example IIRC the X360 has been selling at a slight profit since 2009, while the PS3 is selling at a loss to this very day.

Finally don't forget that if you are gonna sell for a loss then you HAVE to have a sell through rate capable of making up for those losses. Sorry I haven't been able to find the link but I remember reading that from the first day of X360 sales if they sold you 7 months of XBL Gold access and 5 games they came out ahead, whereas if the numbers are correct and Sony is losing something like $270 a unit and they are getting $5 a piece on $60 sales in licensing (can't find any hard numbers on how much Sony and MSFT make on licensing per game) you'd need to sell 14 $60 games just to break even.

So considering the losses Sony have been posting I think we can all pretty much agree that the PS3 is a giant flop for Sony. It doesn't matter how many units you sell if you lose serious $$$ per sale and can't make that up on the sell throughs, because you'll still end up bankrupt at the end of the day.

Again sorry for not backing up the math with links, but naturally Sony isn't exactly bragging about how much they lose per unit or how many sales they need to break even, can't blame them for it either.

Reply Parent Score: 2