Microsoft Gears Up to Release Xbox 360 with New Chips

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re: Microsoft Gears Up to Release Xbox 360 with New Chips

subzerohitman721 — Tue, 13 May 2008 21:07:26 GMT

Anyone who has ever worked in the gaming industry retail side will tell you, the money is NOT in the consoles but in the software being sold. Thats why MS held the rights to DOS, Windows, Office, and every other piece of software it developed. The Wii did sell twenty million units. But that is a one time sell. What happens when it reaches market saturation? Then Nintendo will need software sales of games to sell its products. Since the numbers I've read say the Xbox 360 sales rate 4 to every 1 Wii game, Nintendo could be in big trouble when the Wii reaches the saturation point.

My brother has let me borrow his Wii because honestly he doesn't play it anymore. Right now MS is killing Nintendo with game sales. MS has always known where the money is to be made. I do agree with Lindy's comments that Nintendo is deliberately keeping supplies tight. I don't buy any manufacturing issues when it has historically been able to crank out consoles in the past. I think the refresh of the 360 console will bring its console sales back up. The big thing that will put MS over the top is a Blu-Ray add-on or specialty integrated unit.

Most reviewers have even haled the 360 as a better media unit. I think it comes down to a gimmick vs actual performance features. Wii may be a fun system, that I do not dispute. However, being able to do more than just game is the growing evolution of modern consoles. This is where the Wii falls short because you don't have the same options as a PS3 and Xbox 360. I think once the hype around Wii finally settles down, the 360 and PS3 will trample over it.

Game changer or not, I think Nintendo is in trouble. If Wii games are outsold 4 to 1 or 7 to 1 and you are the head of GameStop/EB games, Walmart, Target, etc.... Which games will you promote harder?

re: Microsoft Gears Up to Release Xbox 360 with New Chips

Dipsh t Admin — Mon, 12 May 2008 12:33:40 GMT

I'll use my little cousins as somewhat of a barometer, since they have a Wii. Once again, it is certainly not a bad console, and it speaks to a certain demo that has been untouched. But it's untouched for a reason, since that demo uses it for a casual, play at parties console. They mostly play their DS.

The most telling I think is the release of GTA4. It sets records, and is only available on the 2nd and 3rd place consoles.

re: Microsoft Gears Up to Release Xbox 360 with New Chips

Lindy — Sun, 11 May 2008 16:40:44 GMT

@joe-dokes

www.xbox360fanboy.com/.../360-attach-rate-now-7-games-per-console

www.cnbc.com/.../22840905

gamer.blorge.com/.../xbox-360-leads-software-attach-rate-even-the-wii-beats-ps3

The 360 makes money per console sold, has since early 2007. Not as much as the Wii. The 360 games make more per game. According to Next Gen Wars, the Wii has sold 21million consoles and the 360 has sold 18 million.

Add in the money made from live membership, and downloadable content, the 360 as horrible as it is hardware wise, is trouncing the Wii as an overall money maker by a big margin.

I actually agree with Paul, out of the 10 or so people I know that have a Wii, 8 say it sits and collects dust and they played it alot for the first 30 days after they got it. Its not a bad console, and in its target group, young kids and traditionally non-gamers it does well. That said there is a reason it gets horrible third party support.

re: Microsoft Gears Up to Release Xbox 360 with New Chips

joe-dokes — Sat, 10 May 2008 18:17:46 GMT

Sorry Lindy,

The attach rate for games is lower for the wii than the xbox but it is nowhere near 7:1 that you state.

Actually the Wii's attach rate soared to 8 over the holidays.

arstechnica.com/.../wii-attach-rate-soared-to-81-for-december

Further since Nintendo is making money off of every wii sold it is largely irrelevant if they sell as many games as the xBox.

All that being said, with Mario Kart, Wii Fit, and Rock band coming for the Wii I think that the attach rate will be solid enough.

Further, when you sell 2, 3, or 4 times as many consoles the attach rate could be 1/2 to 1/4 and you would still make more money.

Regards

Joe Dokes

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re: Microsoft Gears Up to Release Xbox 360 with New Chips

DRWAM — Sat, 10 May 2008 14:44:26 GMT

Lindy, that was my point on a prior discussion that you must factor profit on game sales as well, but that is if they are sold by the console maker. Sure it is a measure of success as well, but my point was to consider any game profit on the Xbox. However, I am not sure who sells the games.

re: Microsoft Gears Up to Release Xbox 360 with New Chips

Lindy — Sat, 10 May 2008 05:08:40 GMT

"the fact that you sell few games per console is irrelevant"

Um to who? Games is where the real money is made. 4 million copies of COD4 at $59 in 6 months is pretty dam good.

Heck Gears of War and Halo3 Xbox only games sold way more than any Wii game ever. The 360 has something like a 7 game attach rate per console. The Wii is a 1 game attach rate.

re: Microsoft Gears Up to Release Xbox 360 with New Chips

DRWAM — Fri, 09 May 2008 20:43:21 GMT

I dunno Joe. I think Lindy has a point. If demand is high, you can keep the price high, increasing profitability. If more are on the shelves, you may need to lower price, [e.g. iPhone], and the hype of "did you get one yet?" dies down. But I could be wrong. I too think that production should have increased by now.

re: Microsoft Gears Up to Release Xbox 360 with New Chips

joe-dokes — Fri, 09 May 2008 20:17:18 GMT

Lindy,

I don't think your correct. The average Wii stays on the shelf 1 hour before being sold. Further, my mother-in-law bought a Wii. I mean really, when you have 70 year old women buying video games it is changing the dynamic. So I do believe the demand is real.

That being said, I also believe that this casual market is less deep than the gamer market. That being said, when you out sell your competition 4 to 1, the fact that you sell few games per console is irrelevant.

Regards

Joe Dokes

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re: Microsoft Gears Up to Release Xbox 360 with New Chips

Lindy — Fri, 09 May 2008 14:09:03 GMT

tayme/RunTimeError

Wii consoles sell well, but the 360 sales more games per month than the PS3 and Wii combined.

My conspiracy theory is that Nintendo purposely keeps Wii console supply tight to hype the demand.

Seriously looking at the technology in the Wii/360/PS3 and the Wii was built with off the shelf products. Nothing was cutting edge, like a new GPU/CPU that was clocked high to the point where you were concerned production yields like the PS3/360. The PS3 could not get enough BluRay diodes and the 360 pushed the initial CPU to the limit of IBM's capability with the 3.2ghz 3 core .90nm CPU.

Why they cant make more Wii's is beyond me. They should be able to. They make money on each one, since it came out, something like $100. I honestly think if they flooded the market they hype would go away as soon as people would see the shelfs full.

re: Microsoft Gears Up to Release Xbox 360 with New Chips

tayme — Fri, 09 May 2008 13:52:28 GMT

@DRWAM - "...although he has only owned it for a month" - That is the problem with kids these days (God, I can't believe I just said that) they have a very short attention span and just keep wanting the newest thing that their frieds think is cool. My daughter is no exception to that rule!!!

--tayme

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