BigSpleenRupture
Banned
Yep, and the marketing will kick in soon. Many are excited fro WD and then destiny, Last of us as well in the summer. PS4 will have a strong year throughout.
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MS CFO: Manufacture of Xbox Consoles may slow down or stop...
- Thread starter Miles Quaritch
- Start date
Yep, and the marketing will kick in soon. Many are excited fro WD and then destiny, Last of us as well in the summer. PS4 will have a strong year throughout.
Plinko
Wildcard berths that can't beat teams without a winning record should have homefield advantage
Kinect isn't the reason this thing isn't selling as well as it could.
Yup, same thing i'm hearing around college.
Off-topic as hell but:
I asked some of my friends if they were as pumped as I was about Mario Kart 8 next month aswell and the reply was:
'Oh wauw, they still make those?'
I'll convert them, no worries.
Neuromancer
Member
The chickens are coming home to roost.
hardcastlemccormick
Banned
I don't know what the title was originally, but it's not clickbait now. It's simple math.
If Microsoft's demand is lowered for the slow time of the year and they have plenty of stock already, they will have to reduce their console manufacturing rate.
The only thing in the OP I would say is "reading into" things is
This could mean many things. If it means the Xbone has hit consumer saturation, that's a terrible assumption. If it means the Xbone has hit retailer saturation, then it might be right.
If Microsoft's demand is lowered for the slow time of the year and they have plenty of stock already, they will have to reduce their console manufacturing rate.
The only thing in the OP I would say is "reading into" things is
This could mean many things. If it means the Xbone has hit consumer saturation, that's a terrible assumption. If it means the Xbone has hit retailer saturation, then it might be right.
KoopaTheCasual
Junior Member
Which is why I mentioned Yusuf in my original comment as well. I always saw them very much so as the integral parts of the XB1 vision, as they were always the ones best versed in the development of policies and overarching vision.
It's... not at all like saying Kaz. Kaz would be analogous to Ballmer, which is a silly comparison.
Here's all I can find at the moment:
http://www.fastcompany.com/3013767/don-mattrick
http://business.financialpost.com/2...-play-to-control-living-room/?__lsa=c0f2-674f
He spear-headed acquisition of "TV" talent, while ramping down relation to streaming services. By the rest of the executives in the Xbox division, he is attributed with the discovery and push for Kinect. He is also described by Xbox execs as the one with the "ambitious vision". Not to mention the little excerpt about him leading the planning of the Xbox One.
He is very much at the center of the design philosophy for the Xbox One, but again, as I said before I also blame Yusuf (which is less founded, since I've never really researched him like Mattrick). Yusuf might actually just be a figure-head, since I'm not too familiar with his background.
Salvor.Hardin
Banned
I'm not blaming Mehdi because he's not a games guy. He's the head of Xbox marketing and has on several occasions candidly expressed his complete confidence in the initial vision of the XBO. He was responsible for scoping the market, doing the research and shaping the box according to the demands of the customer. To some extent they achieved that, but in many ways they did not.
The head of the team and the head of the team's marketing are the key decision makers on the key elements of a product. If they're not responsible, who is?
Spencer on the other hand had a different job and his efforts are clear as day. XBO has a great set of AAA exclusives.
Weren't they talking about selling half a billion consoles this generation? I think they're behind on that estimate. This is the company that let DRM make it to the E3 conference, so we can't really call them prudent.
CaptainTiptop
Member
I mean if they wanna get the price down more. They've already tried lowering the price while keeping Kinect (and hell, bundling their 'system seller') and that didn't work.
Devilinthiscity
Member
Same here. A couple of my friends that don't follow the industry much thought it was being made by Rockstar. They're really looking forward to it.
Mass Effect
Member
Come on Miles, that thread title is just a bit sensationalist don't you think?
But it's definitely been clear that people just aren't buying Xbones as fast as MS is making them and shipping them. The demand is just not there. This was bound to happen sooner rather than later.
But it's definitely been clear that people just aren't buying Xbones as fast as MS is making them and shipping them. The demand is just not there. This was bound to happen sooner rather than later.
entremet
Member
100 bucks premium for a feature that is still not proven in gaming is a big factor when comparing the two consoles.
BigSpleenRupture
Banned
Baseless assumptions, this vision came from many on the org and had to get sign-off, if you think mattrick had that kind of single total authrority over a multi billion dollar console launch then LOL. Mattrick had to get everyone on board and sign off on the money to spend, everyone with decision making authority had a say. Mattrick has a biug player but so were many others.
Sales are declining in the two territories that actually care about Xbox and you think countries such as Saudi Arabia and Finland (no disrespect) are going to help? Give this argument up, please.
Salvor.Hardin
Banned
Yikes. Well I hope it turns out to be a great game. But the appeal is completely lost on me.
KoopaTheCasual
Junior Member
Indeed.
BigSpleenRupture
Banned
Well people are different, every site that had a preview up this week were pretty impressed by it from what I read. Looks like a GTA/MAx payne / tech open world game
Interfectum
Gold Member
It'll probably turn out to be a good game that sells gangbusters. This will be everyone's 'next-gen' GTA until we get a real one.
hardcastlemccormick
Banned
If we're looking at a slow several months (I'll aim high and say 200-300k sales), that might not go away until the summer. Is it extremely alarming? No. It's not even a bullet for the console war. But it's also not entirely dismissible either.
It's true, we don't know if the "channel inventory drawdown for Xbox consoles" was premeditated or reactionary. But we do know that there's a surplus, and surpluses cost someone money.
Fornaximus
Member
I have not seen a commercial for the Vita since it launched, and I'm only assuming I actually saw some then, because honestly I can't even remember the last Vita commercial I saw. I've had co-workers come up to me while I'm playing it at work, telling me they have one too, thinking it's a PSP. They've never even heard of the Vita. How can you claim to support a device when it seems like you'd rather pretend it doesn't exist?
Then it wasn't earth shattering. And gameplay wise Titanfall didn't stage a revolution for multiplayer shooters, Titanfall had CoD gunplay, killstreaks replaced with titans that everyone would get, along with a really good twist on traversal being part of the gunplay.
Most people buy consoles to play future games, Titanfall wasn't a title that people were willing to buy a console to play it instantly.
WrenchNinja
Member
Those countries don't matter enough sales wise for the Xbox One.
Cthulhu_Steev
Member
Yeah, it's an Ubi Assassin's Creed-style game, those things are massive sellers. I know plenty of people that only play those, Fifa and CoD over the entire lifetime of a console, no other games even ping their radar.
Fornaximus
Member
You just wait. Japan will be the savior of the 'bone. You'll see. You'll all see!
BigSpleenRupture
Banned
Dem Casuals.
Sure is.
But they're not operating in a vacuum and their direct competitor is outselling them world wide 2:1, while their market share in their best regions (UK/US) has reversed in one, and evaporated in the next.
All at a time when shareholders want out of all hardware devices, and executive management was shaken up (and its view on devises not clear).
Spencers promotion is excellent news, but there's a lot of work to be done and ground to be taken back.
It's cool, but it feels more like a modern day Assassin's Creed than anything. That and me not owning a next gen system damages my hype.
Yoda
Member
Stopping production would be silly, slowing down might make a lot more sense though. I can't imagine retailers being happy to find extra warehouse space for unsold Xbones. Granted I doubt its all that much at any particular location, but higher ups will complain to Microsoft if its across the company which most anecdotal evidence seems to point too. It's also possible to read that they don't think post E3 hype or their holiday line-up will really jump-start the console. A stretch at this point, but most of us thought the Xbone not being the bestselling console in North America in March was also a stretch.
TheLostBigBoss
Banned
I still can't believe they actually said that.
It boggles the mind that people actually signed off on that whole reveal.
What? They still haven't sold all their day one editions?
CassidyIzABeast
Member
Titanfall did move consoles. It just moved most of them in the months prior to March.
BigSpleenRupture
Banned
It always amazes me this huge corporations with smart people working for them can read the market so wrong.
TetraGenesis
Member
That's not how you get to 1 billion sold.
TheLostBigBoss
Banned
That's what happens when all you have are marketers whispering into your ear.
Check Amazon...Day One Edition was "In Stock" less than 5 mins ago...
Idk how many they have...but you can buy them...
If the markets were whispering in their ears, they would have done vastly better.
They had no idea what the market wanted, that is clear considering how they can't seem to sell enough to even clear their inventory.
Neuromancer
Member
Day One Fifty Edition
Insane Metal
Gold Member
I read that as "we will sell the consoles we've manufactured so far, and well' start producing a kinectless version soon".
TheLostBigBoss
Banned
Those countries have little interest in the XB1 and are Sony controlled.
Microsoft developed a console that was primarily catered to the west with it's features
(Read North America)
Definitely, the point I was addressing was there being no interest in the Xbox One in general. Titanfall helped, but it wasn't the title that Microsoft needed to move consoles in March and probably beyond.
Interfectum
Gold Member
I also think that this is an important part of that article. No one is even asking about Xbox, even after it's big exclusive and second quarter out the gate. Investor and consumer apathy.
This title isn't accurate, and the OP is overly alarmist. She didn't mention manufacturing at all. Channel drawdown is just fewer consoles shipped next quarter. It's entirely possible that manufacturing will continue at its present pace. If their contract is for something like a million a month, then they need to manufacture more units than they ship in summer anyway, to supply the holiday markets.
Here are the quotes in context:
Xbox One has sold in over 5 million units since launch and engagement has been high with users spending nearly 5 hours per day on their console. We will continue to extend the unique entertainment value proposition of Xbox One, particularly in markets outside of the U.S. where some services arent as mature. Xbox 360 sales exceeded our expectations this quarter. And across the platform, Xbox Live members continued to embrace the service with transactional revenue growing 17%. We do expect to work through some inventory in Q4.
Lets start with Devices and Consumer. In licensing, we expect revenue to be $4.1 billion to $4.3 billion. This range reflects an expectation that the benefits of XP End of Support will moderate. In hardware, we expect revenue to be $1.3 billion to $1.5 billion in what is a seasonally slower hardware quarter. This number also reflects channel inventory drawdown for Xbox consoles.
So they've overshipped and they're going to have a slow quarter next year. This is hardly a Gamecube situation yet.
Here are the quotes in context:
Xbox One has sold in over 5 million units since launch and engagement has been high with users spending nearly 5 hours per day on their console. We will continue to extend the unique entertainment value proposition of Xbox One, particularly in markets outside of the U.S. where some services arent as mature. Xbox 360 sales exceeded our expectations this quarter. And across the platform, Xbox Live members continued to embrace the service with transactional revenue growing 17%. We do expect to work through some inventory in Q4.
Lets start with Devices and Consumer. In licensing, we expect revenue to be $4.1 billion to $4.3 billion. This range reflects an expectation that the benefits of XP End of Support will moderate. In hardware, we expect revenue to be $1.3 billion to $1.5 billion in what is a seasonally slower hardware quarter. This number also reflects channel inventory drawdown for Xbox consoles.
So they've overshipped and they're going to have a slow quarter next year. This is hardly a Gamecube situation yet.
MisterXDTV
Member
Yes, it's true.... Unbelievable....
http://www.amazon.com/dp/B00CMQTVK0/?tag=neogaf0e-20
Always fun to read the description below:
BibiMaghoo
Member
I wonder how often those estimates are revised though. I mean if they are still working on pre-launch predictions, then that seems kind of dumb given the way things have played out so far. On the other hand, I expect a company like MS to be on the ball with this kind of thing, and revise them frequently, but I also assume they are locked in to a manufacturing schedule, and have been told that to break them - by not needing more units - can cost vast sums of money in what amounts to essentially compensation for the manufacturing plant.
Xbox consoles don't really sell in those countries. The few who had interest mostly bought the PS4 instead due to it being released first.
The Tier 2 countries and below I would estimate account for no more than 25-30% of the projected install base of the Xbone, why do you think that is not a problem? And while the Xbone can be a great product to you, the majority of current gent console consumers prefer the competitors due to other reasons and that is showing on all the data that has been reported.