The Console War is Over

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ViperManiac
From PSM:

Despite some early fumbles, PS2 has become the undisputed king of the videogame hill. Nearly two years ago, the PS2 was launching with half the number of units Sony had been promised would be on store shelves. The "beginning of the end" of PlayStation's dominance over the videogame world was at hand. Today, more than eight million PS2's have been sold in the US -- a far cry from that initial 500,000 -- and its two competitors, launched one year later, are locked in a distant battle for second.

PS2 has made history: for the first time, one console brand has dominated consecutive generations of gaming. It is also maintaining the largest lead over its nearest competitor -- 7 million systems -- and has already sent one competing console (Dreamcast) to an early grave.

War Is Hell

According to sales figures published in late March, PS2 has sold more than 8.3 million units in the US (since October 2001) and is currently selling more than 65,000 units a week. Xbox and GameCube have sold 1.4 million and 1.3 million systems, respectively, and are running nearly neck-and-neck in weekly sales at a pace of approximately 30,000 units every seven days. Its even more important to note that PS2 sold nearly twice as many systems during its first three months on sale (back in the fall of 2000) than Xbox or GameCube have in their first four months -- despite shortages.

It would take a miracle for either to catch the PS2 at this point; Sony could lose half its weekly sales and still maintain a massive lead until the next generation. This is important for gamers, because game publishers (at least those who want to make a profit) are going to throw most of their weight (and games) behind the market leader. The fact that developers are now beginning to praise PS2's hardware and development tools rather than bemoan its difficulty to learn should also play a big role in broadening its already massive software library.

Big In Japan

The story is similar in Japan, but the numbers are even more telling. PS2 has sold 1.2 million units there since January 2001 alone, at a current rate of 85,370 a week. GameCube is a distant second for the year at 341,933 total units as of March 24, at a rate of 34,448 a week. Xbox has sold a dismal 184,036 units as of the same date (it launched there in Feb.) and is selling only 2,000 a week; barring something big, it looks like the game is already over for Microsoft's machine in Asia.

Japanese developers were already targeting most of their releases for PS2, and these latest figures will certainly tip the scale even more in the system's favor. Japanese games have always played a make-or-break role in how well game systems fare in America, and PS2 has the most by far; given its D.O.A. status in Japan, most of Xbox's games are going to be U.S. developed, and while GameCube has decent support in Japan, the games are still few and far between.

The Dark Side Of Success

Standing alone at the top of the mountain has its downsides, too. Where's the motivation to continue innovating? Luckily, Sony seems to be encouraging new concepts and gameplay experiences from its own developers and others.

Then there's the question of developer relations -- why bend over backwards to please them when there's no one else to realistically run off to? We've already seen the Resident Evil series go to GameCube for reasons rumored along these lines, but even now Capcom seems to be second-guessing its move, given sales of its RE remake and the console itself.

This is nevertheless a problem Sony has to deal with, since it can only make PS2 more successful in the long run.

Full Speed Ahead

That long run looks to be a bright one. At its current pace, PS2 is set to outsell even the PSOne by the end of its run -- and that's nothing short of amazing.

Will PS3 go unchallenged -- will a videogame standard finally be established? It's too early to tell (its competitors both have huge war chests and have given no indications of a Sega-like surrender), but at this rate, it's going to be an increasingly losing proposition for them with each generation that passes.

Just because there aren't going to be a lot on inter-system salvos fired this generation, there should still be plenty of fireworks -- and on PS2, we've got the best seat in the house.
 
I quoted this article in another thread:

http://red-mercury.com/mmceo/mmceo_current.html

I work in an IT support industry and had heard rumours that the commonly held assertion that Sony were losing money on PS2 consoles might not be true, and the above article seems to suggest this might indeed be the case.

I'd also heard MS were losing money on Xbox off the bat (i.e. at the $US299 launch price) but I don't think anyone realised they might be taking a $150-200 beating a unit six months after launch. That's a lot of software per console.

There's industry talk MS might take up a $1 billion hit on the X-Box in the first 12-18 months.

Best case for in-house development I ever heard....
 
I'd call a disadvantage in manufacturing economies of scale compared to vastly more experienced opposition a pretty fearful 'flaw'.
 
Xbox will be more like Jaguar (the console, not the car) in 7 years... no one will remember it :P
 
Its clear that MS will not be able to make a profit off of XBox. The system costs $400 to make, and now they lose $200 on each console. Every million consoles sold is now $200 million lost. Plus there is only a $10 or so cut on software. So to break even, each console buyer would have to buy 20 games. Not too many people will bust out and buy $1000 worth of games. So the only thing they can hope for is time to bring costs down, but Sony will still be profiting. There is just no way to catch up. Sorry Microsoft. :cool:
 
Originally posted by LordIV
Its clear that MS will not be able to make a profit off of XBox. The system costs $400 to make, and now they lose $200 on each console. Every million consoles sold is now $200 million lost. Plus there is only a $10 or so cut on software. So to break even, each console buyer would have to buy 20 games. Not too many people will bust out and buy $1000 worth of games. So the only thing they can hope for is time to bring costs down, but Sony will still be profiting. There is just no way to catch up. Sorry Microsoft. :cool:

As I mentioned above the industry talk is $500-1000 million losses on the X-Box in the first twelve months, and there is talk that Sony and Nintendo are actually profitable on console sales at the current console prices.

Golden rule of business - if you're selling each unit at a loss, more volume is bad.

Whoever did the market and competitor research at Microsoft might be feeling a touch nervous at the moment.

I saw a book in the business section at a local bookshop on the development of the X-Box - sure did read like propaganda. The next edition should be interesting...
 
Oh - I'm not debating the quality of the hardware.

Unfortunately, these products need to live in the real world, and be manufactured and sold in shops and make money - and on that basis it appears Microsoft have made some critical errors about their competitors ability to reduce costs. Microsoft appear to have severely compromised their own ability to realise significant cost reductions through the life of the X-box by employing three different suppliers of critical components (one would think that with Intel and Nvidea enjoying the popularity they do that their contribution to the X-Box would already be pretty close to the bottom of their respective potential cost to produce).

Thinking deeper on it, I wonder if this stems from the fact that Microsoft is a software producer. There's a very big difference in the mindset of someone producing intellectual property, and someone producing physical goods. Sony and Nintendo have been doing this for some time in one form or another, and experience counts for a hell of a lot in any manufacturing industry.
 
Originally posted by vat_man
Oh - I'm not debating the quality of the hardware.

Unfortunately, these products need to live in the real world, and be manufactured and sold in shops and make money - and on that basis it appears Microsoft have made some critical errors about their competitors ability to reduce costs. Microsoft appear to have severely compromised their own ability to realise significant cost reductions through the life of the X-box by employing three different suppliers of critical components (one would think that with Intel and Nvidea enjoying the popularity they do that their contribution to the X-Box would already be pretty close to the bottom of their respective potential cost to produce).

Thinking deeper on it, I wonder if this stems from the fact that Microsoft is a software producer. There's a very big difference in the mindset of someone producing intellectual property, and someone producing physical goods. Sony and Nintendo have been doing this for some time in one form or another, and experience counts for a hell of a lot in any manufacturing industry.
No one can say it better. ;)
 
I agree that X-Box isn't the best thing out there. For one, it's basically what, a P3 700mhz computer with a G-Force what, 3, in it, using 4 gamepad ports, an ethernet jack in the back, a hard drive, and an a/v output on the G-Force card.
Now let's look at the +'s of the X-Box, so Sony can take some ideas from them:
1) The controller cable:
I don't know about you, but I really like the idea that if somebody accidentally steps on it so the console doesn't fall off the tele or anything.
2) Comes standard with an ethernet jack
The only way I can think of getting the ethernet for the PS2 is to either buy it with the Linux kit or buy it individually once the multiplayer games come out.
3) Standard with a hard drive
I'll grant that it seems silly, but if you have an internet connection, you'll really want a hard drive so you can get mods for the games you play. You wouldn't use this as your memory card all the time because then you couldn't move it from your place to your friends'.

There, the 3 best things about X-Box. Everything else is just a waste of money because M$ is careless, uses too many resources, and isn't the least bit terse. I bet there's plenty of codes that could be combined for all the Microsoft games, but PS2 doesn't because of the programming language.
Bottom Line:
X-Box is a modded PC. It has the same components plus the A/V jack and the custom gamepad ports. All the game producers need to do is change a tiny bit of coding from a PC game and they've got an X-Box game
 
You will all soon realise that half of you are ignorant assholes. I've even seen some PS2 "whores." And that's pretty sad. Since I just found this forum about 20 minutes ago.




You have my Pity...
 
Originally posted by Sic 3vil
You will all soon realise that half of you are ignorant assholes. I've even seen some PS2 "whores." And that's pretty sad. Since I just found this forum about 20 minutes ago.
You have my Pity...

Uh, yeah....that's a fantastic comment on a forum pretty well dedicated to a PS2 only game. Perhaps you'd like to elaborate?

Or, perhaps preferably, not.
 
Originally posted by Sic 3vil
You will all soon realise that half of you are ignorant assholes. I've even seen some PS2 "whores." And that's pretty sad. Since I just found this forum about 20 minutes ago.




You have my Pity...

eject this retard!!!!
 
Originally posted by Sic 3vil
You will all soon realise that half of you are ignorant assholes. I've even seen some PS2 "whores." And that's pretty sad. Since I just found this forum about 20 minutes ago.




You have my Pity...






Shut up, stupid be-atch!!!
 
I knew this was gonna happen I reckon the ps2 was gonna be an instant hit the idea of getting the console out a whole year before any other competitors shows that it will have a massive head start I reckon its gonna be 1.ps2 2.GC. Xbox
 
Originally posted by Sic 3vil
You will all soon realise that half of you are ignorant assholes. I've even seen some PS2 "whores." And that's pretty sad. Since I just found this forum about 20 minutes ago.




You have my Pity...

:rolleyes: why are you here if all ya gonna do is take the piss a wanker like you should have better thins to do like wank over your xbox playing dead or alive 3 no sorry you don't like women you like abe :lol:
 
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