Microsoft’s pockets not so deep for the Xbox 360 division

Gazz · 10-08-2008, 12:11 PM

Quote:

One of the silliest arguments fanboys like to make is that Microsoft has a vast reserve of unlimited resources, all of which can be thrown at the Xbox division. Just like any other business, Microsoft is in the console market to make money and not to fuel useless fanboy fancies.
According to Silicon Alley Insider, Microsoft is in a hiring freeze and slowing down spending for the time being. Initially, it was reported that all of Microsoft would be doing this, but a clarification from a spokesperson indicated that this was false. According to an email sent out by Robbie Bach, head of Entertainment and Devices (Xbox and Zune), only his division will be enforcing a freeze on hiring.
Just a few days ago I talked about the GamersHell.com - Largest Independent VideoGaming Website (gh3d.com) - GamersHell.com of one of Microsoft’s internal game developers, Ensemble Studios. That brought the number of closed studios within the past year and a half to four, plus Bungie, which went independent.
Microsoft stated its desire to seek scalable business ventures on the heel of a massive price drop across the board for the Xbox 360. There is definitely some belt-tightening going on at the Entertainment and Device division. This isn’t all that surprising, considering that Microsoft’s primary business has always been the operating system division since this is where most of the money is made.
Since the Xbox division is the furthest from being a highly profitable business unit, it makes sense for Microsoft execs to clamp down on its weakest link. The reality of the business is, there are consequences for throwing $50 million checks at studios for DLC (that have yet to materialize), spending $1.15 billion on faulty hardware (RRoD) issues and dropping nearly $80 on the Xbox 360, despite cut-throat manufacturing costs. At the end of the day, Microsoft executives have to answer to the stakeholders of the company regarding past business decisions.
It looks like Nintendo might ultimately get the last laugh this generation. Nintendo has proven that you do not need hardcore games or high definition graphics to succeed in the video game market. It seems like Sony and Microsoft are currently in the midst of playing catch-up to Nintendo this generation instead of the other way around. Oh the irony.

It seems that the cracks in Microsoft's foundation are becoming to apparent for the general public to ignore. I said that MS will leave the console business all together and will be forced to focus on their core business (operating systems) once again for ages and in the end I will turn out right as usual. Where both Nintendo and Sony are heavily focusing on first party development which they control completely, MS seems to have to settle with mainly third party and are the ones most heavily affected by piracy. Personally I think the one thing that is keeping them above water is the subscription fee to live that provides a somewhat stable income and gives the execs atleast a few good numbers to show to shareholders.

Akherousin · 10-08-2008, 06:02 PM

OMG gazz always said it and he's right AGAIN!!!! AMAZING!

Edit: Gazz is the messiah of videogaming.

Gazz · 10-08-2008, 06:31 PM

Quote:

Originally Posted by Akherousin

OMG gazz always said it and he's right AGAIN!!!! AMAZING!

Edit: Gazz is the messiah of videogaming.

I smell irony

Isn't that Molyneux fellow the self proclaimed messiah of videogaming with his overambitious games? Till this day, every time I get diarrhea and piss all over that in the toilet bowl, I think of Black and white 1 and 2 and his other crappy games that just aren't good at all.

64705 · 10-08-2008, 06:40 PM

What do you expect; the world economy is in turmoil at the moment and verging on recession. It doesn't surprise me that corporations aren't recruiting new employees and spending is being reined in.

Even if you completely disregard the negative economic pressures its not unusual for companies to conduct internal restructuring exercises and review their goals and corporate strategy.

Take the article with a pinch of salt.

Nxs · 10-12-2008, 09:51 PM

This whole thread is just a bunch of nonsensical crap made by a Sony fanboi! MS is never going to leave the console business! EVER! The 360 is killing the PS3 even in Japan! Seriously here Sony fanbois, how sad is that? Once the 360 dropped in price, the whole world took notice and it is damn near catching up with the Wii! Sony has already announced that they will not be reducing the price of the PS3 for the holidays. This makes them the most expensive console on the market during economic turmoil! Not to mention, they still have ppl making games for the PS2! Seriously here! I understand that when there is a ten million userbase you want to keep them, however, you would think Sony would want ppl to go to the PS3! Making games for the PS2 just does not make sense at all!

You want the PS3 to do well? Have the damn PS3 completely backwards compatible! This will make sure that the PSone and PS2 owners don't think they are getting reemed by going to a $400 console that, by all accounts, is just a glorified blu-ray player! Stop making games for the PS2! Why would someone buy a ps3 when new games keep coming out on a ten year old system? Make a game that defines the PS3! There is not one game for the PS3 that would make anyone want to go get it! Not one! LBP is iffy! The community stuff should prolong its life to an extent but, hardcore gamers are going to get bored of it real fast!

The only thing that the PS3 does better than the 360 is having the free online service! That is it! Even the games that come out for both system, the 360 wins! The ps3 lags and everyone has a hard time developing for it. Hell, it has been a year or something since Bioshock hit the 360 and the PS3 demo, from what I hear, can barely handle the damn thing.

As it stands, the PS3 is just a retarded cousin of the PS2! It is never going to achieve the 10 year lifespan that Sony says it will!

KamisoriX · 10-13-2008, 05:29 AM

hrhrhr, this is the good stuff

Gazz · 10-13-2008, 07:38 AM

Quote:

Originally Posted by Nxs

This whole thread is just a bunch of nonsensical crap made by a Sony fanboi! MS is never going to leave the console business! EVER! The 360 is killing the PS3 even in Japan! Seriously here Sony fanbois, how sad is that? Once the 360 dropped in price, the whole world took notice and it is damn near catching up with the Wii! Sony has already announced that they will not be reducing the price of the PS3 for the holidays. This makes them the most expensive console on the market during economic turmoil! Not to mention, they still have ppl making games for the PS2! Seriously here! I understand that when there is a ten million userbase you want to keep them, however, you would think Sony would want ppl to go to the PS3! Making games for the PS2 just does not make sense at all!

You want the PS3 to do well? Have the damn PS3 completely backwards compatible! This will make sure that the PSone and PS2 owners don't think they are getting reemed by going to a $400 console that, by all accounts, is just a glorified blu-ray player! Stop making games for the PS2! Why would someone buy a ps3 when new games keep coming out on a ten year old system? Make a game that defines the PS3! There is not one game for the PS3 that would make anyone want to go get it! Not one! LBP is iffy! The community stuff should prolong its life to an extent but, hardcore gamers are going to get bored of it real fast!

The only thing that the PS3 does better than the 360 is having the free online service! That is it! Even the games that come out for both system, the 360 wins! The ps3 lags and everyone has a hard time developing for it. Hell, it has been a year or something since Bioshock hit the 360 and the PS3 demo, from what I hear, can barely handle the damn thing.

As it stands, the PS3 is just a retarded cousin of the PS2! It is never going to achieve the 10 year lifespan that Sony says it will!

Funny how the PS3 sold over 3 million units more then the 360 this year alone then. The 360 is just having a small sales peek for a few weeks forced by an absurd pricedrop and that's it. Same with the Japanese figures, undersupply it for a few months there and then supply them plenty with a pricedrop on top off it and the herd will assume the 360 is outselling the PS3 though it's only meeting up with backwards demand. Basic marketing lessons and that's it. The 360 will leave the scene and MS will use the current financial state as their excuse, since their money will dry up quickly with fast dropping pc sales figures. The 360 is done for, accept it. It also isn't catching up to the Wii, when it sells less units weekly. It's not even denting them. Only console they are denting is the PS3 and looking at the number of weeks that the PS3 has outsold them this year, they need an extra few months added to this year to make that up. It will never happen, especially with tons off people waiting for the LBP bundles and new 160GB uncharted and GT5 proloque units. Never ever ever, just enjoy the high as long as it lasts.

The PS2 is still being sold and very much alive to this day. If you looked more closely at the Japanese numbers you would have even noticed it outsold the 360 and PS3 there this week. Of course they still have people making games for it, since the PS2 has the biggest userbase in the history of consoles. It still makes a profit and Sony is a friendly company that will still make games for your older consoles. Not like MS who dropped all support and games for the original Xbox, and now even drop all support for core users of the 360 with them not being able to install the "new" carbon copy Wii dashboard. The PS3 can play all PSone titles btw.