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MS CFO: Manufacture of Xbox Consoles may slow down or stop...
- Thread starter Miles Quaritch
- Start date
CouchMaster
Member
Rent it out to Sony since they're having trouble trying to keep up with demands.
Well that just sounds awful...
Huh? If you want to play xbone or wii u do it but don't beat on Sony just because they have been very appealing to consumers.
digoutyoursoul
Member
How many people play Xbox, Nintendo and PC here? Plenty.
geordiemp
Member
....don't thinks its anything to do with Yield.
I know some don't like Pachter, but I think his analysis was the most logical and best I have read so far...
http://www.dualshockers.com/2014/01...a-month-fully-intends-to-kick-microsofts-btt/
So, if Foxconn (like a massive ship that turns slowly) needs commitment to 12 months of volume manufacture for a contract as per Mr Pach, then MS will be in contract to make 12 million over the 12 months from September.
They are going to have allot of stock, and hence the mention of scaling down in the investor call makes sense.
Nothing stopping you from playing Xbox or Wii. Competition doesn't mean they should sell equally, in fact that defeats the purpose of competition.
What are you talking about? A clear market leader =/= monopoly.
Go look at the PS1, PS2, DS, 3DS, Amazon, and Steam. All of them are market leaders by a wide margin because consumers voted with their wallets. It's up to the companies to improve their value proposal if they need to keep up. That's REAL competition and that's how WE benefit from competition the most.
I could happen, just by the mere fact that Sony needs to establish excellent presence in stores over next few months. They are selling fast, but if they make a push to make PS4 truly available everywhere, they will maybe reach 10mil shipped by E3. IMO, that would not happen. I think the best Sony can hope for by E3 is 9mil sales unveil and little more than that in shipments.
Mugatu
Member
I agree - the article maybe sensationalizing a bit (but almost all news stories do that, reporters read into things, it's what they do, especially in business) but this thread is not clickbait, it reflects, accurately, the article in question.
TheRagnCajun
Member
Pretty much expected. They won't be releasing any more shipped numbers for a little while.
Miles Quaritch
Member
You're focusing on the wrong quote...
She also referred to "channel inventory drawdown for Xbox consoles"
qa_engineer
Member
Post like these, whether it be truly sarcastic or not, are completely unnecessary. Do better.
gaming_noob
Member
That sucks...I hope their E3 conference will bring some life back into Xbox.
Obviously, you misunderstood my post....
No competition? What makes you say that? XB1 is selling well enough to be supported by all 3rd party developers. It doesn't need to tie the PS4 in sales to be competitive. A second place console can still be competitive.
Well, if the only alternative was an Xone or a WiiU success, not sounds that awful to me.
OverBlood 3
Banned
Hehe no one is saying they won't be but you seem awfully invested in their welfare.
Aquamarine
Member
Well it happened for the GameCube...
I have no horses in this race but why must Nintendo and Microsoft ( or Sony / Valve ) be shield from poor sales performance just for the sake of competition. There are always others who might joins the fray, not just the same 4 slugging it out.
Imagine if the people at Microsoft were crazy enough not to pull the 180 after E3 last year, Microsoft would have to redo the entire console as the generation starts, it would've been the hindenberg of console launches. A price drop to sell consoles that are on the shelves, and then a kinectless SKU being introduced late this year or early next year for $349.99 could move consoles. But the money lost due to those decisions might hurt more than waiting it out.
Really sticky predicament this is. Microsoft should've played it safe, take what was great on the 360 software/UI wise and put that stuff in a powerful box that would rival whatever Sony would put out.
Really sticky predicament this is. Microsoft should've played it safe, take what was great on the 360 software/UI wise and put that stuff in a powerful box that would rival whatever Sony would put out.
"channel inventory drawdown" = reducing manufacture and limiting product shipments of newly produced items to retailers. It happens all the time when someone overships something to the market [like iPad 3 tablet drawdawn that happened last spring or summer].
GoofsterStud
Member
Looks like they won't be tapping into more of that warchest after all. I can't blame them, the ps3 situation was costly.
t_wilson01
Member
This would be a really interesting bit of info if it turns out to be the case. However, I'd imagine they would use those extra consoles to launch in second tier countries and increase their "sold-in" numbers.
Cthulhu_Steev
Member
'Inventory' implies it's stock they're already holding, they're already making more than they can sell and having to cut their prices, and you think they're just going to carry on stuffing channels rather than sell through what they have?
I was in McDonald's Paris once, and the queue was out of the door into the street. They had one person serving and six people loading up the burger slide and they just keep loading it up and loading it up with Filet's o Fish, and hamburgers till it looked like a fish/meat penny falls. And they still kept on stuffing that supply hatch.
Nobody wanted a hamburger, or fish, they wanted a Royale with Cheese, but they couldn't get one.
I have no idea what my point is.
witchedwiz
Member
mind you, it's an imho...
wii u is failing for drought of quality third party with timely release...
wii u is failing for being an overpriced piece of hardware with "core components" being part of a previous generation at best...
xbone on the other hand, is struggling due to poor pr, and shitty marketing stunt...
quality of game? it's good.. sure something is below ps4 in terms of sheer performance, but it's not really the damning part of the whole xbone offer...
It all boils down to the fact that major titles are multiplat already and dedicated first party are in place...
fps? halo or killzone
car? forza or gt
etc
so it translates to " if you have preference for serie X go there, else go elsewhere" ... I for one, love uncharted, so i'd go for ps4.. plus, ps gets a lot of love from eastern dev for jrpg, so it's a no brainer for me...
Yeah, the key to competition is creating a good, compelling product as an alternative option. XB1 is really just a weird weaker-yet-more-expensive option, half because of bad design calls that didn't pan out and half because of a more costly gimmick that gets ignored.There was and is competition. The customers decided which system they choose. Thats how competition works actually
Even the Wii U's got similar issues in that area I hate to admit, just that similar to XB1 you come more because it's got the exclusives you want with a gimmick of dubious value driving the cost up (I'd put it ahead of Kinect at least but I probably am a bit biased.) But it's not a either more powerful, significantly cheaper for what you get, or novel enough of a difference.
I'm genuinely confused why any corporation gets involved with console manufacturing, so much risk for either modest rewards, big rewards, or no reward at all.
It's not how market work. If you think to sell like how much you manufacture, xone not selling well. It's simple.
lol, I was going to quote your post but it's been edited pretty quickly. Good work, sir!
The damage is done. The only chance they had was last year in spring/summer when the marketing and hype buzz was the biggest and they lost every battle for positive PR. All Microsoft could do now is to hold the sales ratio but that seems unlikely given the stock and manufacturing situation. The fact that there is no big first party exclusive coming in the next few months doesnt help either. They missed several chances to get the brand recognized better on many occasions but failed. Their E3 could be as good as they want, 99% of all titles are multi, the OS and the system build around it is already done, Kinect was a mistake, price, no value for Live, focus on US heavy features, Apps behind paywall, etc.
freakzilla149
Banned
What a shit title. It implies too much. MS will merely reduce production for the foreseeable future until retail shelves are less stuffed with xbones.
They had a great first month, but if you look a the sales from then on, it sells less then the 360 and that console was supply constrained. With the current rate and reduction of shippments its going to sell more than a million systems less than 360 did in its first year.
Psycho_Mantis
Banned
Pretty much shows how XB1 is not selling well or at least to MS' expectations.
Yup.
Decisions were made long ago, and a lot of those decisions were pretty damaging. Game companies and corporations always suffer from long term gameplans failing, this industry is all about thinking about long term trends and forging a reliable plan that pays off in the future.
Zen_Arcade
Banned
It didn't say whether he liked the news or not. You're assuming that. He stated something he saw. That picture is for opinions, not when you think something is misquoted.
At this point it's pretty much the domain of people already heavily invested, upstarts who are trying something low key and different, or big companies that are just being kind of crazy. And Microsoft was absolutely that last one, even Sony was to an extent though at the time they did it I think it probably came off more sound in general (and they were heavily invested in similar tech anyway.)
Ice cold truth-facts.
What a load of dribble
Led_Zeppelin
Member
But she did say that. All the quotes Gamasutra put on the article are on the MS official transcript of the Q3 2014 earnings call. Just look at it.
Amy Hood Corporate Vice President and Chief Financial Officer said:
BigSpleenRupture
Banned
Yep, I think it is clear MS executives saw gaming as a means to an end,m where mas Sony sees PS as first and foremost a gameing device. That really hurt MS, not sure why they thought people would drop $500 for cable pasthru and voice commands..............
People buy xbox, PS for games more then anything, how they can mess that up is mind boggling, especially after the ps3 debacle/.
it would be more interesting to know the numbers for those sitting in warehouses
I don't know, but I'm hungry now.
Yeah it's such a ridiculous thing for MS to do also after Sony fell from their PS2 perch for treating the PS3 the same way.
It's pretty clear to me that the people in charge of the direction of the Xbox One didn't really understand or care about the history of the console market (was it Don Mattrik or Yusuf Mehdi's fault? Will we ever find out?).