MicroSoft Zune Sets MS Sales Record
for biggest tech flop......
http://www.macworld.com/article/138443/2009/01/zunesales.html
Before they dump it they should at least come clean and rename it the "Rune".... :twisted:
http://www.macworld.com/article/138443/2009/01/zunesales.html
Before they dump it they should at least come clean and rename it the "Rune".... :twisted:
Comments
About the XBox, it has been a marketing boon for Microsoft (it makes them cooler...or at least slightly less uncool), but hasn't exactly been a huge fiscal victory. Here's a blog post (first thing I could find) from an XBox fanboy. It's a little old (April 2008), but here's what's important -
By the end of 2007, XBox360 was turning a modest profit. That's two years (approximately half way) into the lifecycle. However, the losses leading up to that profit were significant (from the fanboy a $3/4B in 2006). I don't know what impact the current recession is having, but it can't be helping MSFT turn a profit on the XBox.
In the end, I'm sure the XBox will be profitable, but the point is your company must have exceptionally deep pockets to consider the XBox360 or the PS3 a success. Here's another question, how do you think a third generation XBox would do against an AppleBox or a GoogleBox?
Lets not burry Zune, which I haven't even seen but have only read about. It is a first product for a company that has the pockets to invest in products for long term and capitalize them from other angles.
As far as Xbox is concerned, competition wise highly doubt Google/Apple will enter this space, they would likely aquire one, however the only 3 console makers are too much to bite off for G. Google doesn't have any game developers, nor games, nor does Apple to start from scratch.
If you look at the current Ps3/Xbox products they are becoming more then video game consoles, it is a media sharing, sales, communication, music, and more. This is where I think the long term goal lies for the console industry, and they are all happy with their market, but when the console brings MP3s, video rentals, etc, thats where MS stands on a stronger leg having stakes in NBC and other media I am sure helps.
It's been out for over two years, is ultra portable, and you've never seen one? I've only seen two...briefly. This is anecdotal, but it's a bad start. Market share numbers bear this out...the Zune isn't even the "also ran", it's the third ran (like MSN Search).
That was an exercise for the reader, not a prediction. Neither company is positioned (or positioning) themselves to be a game provider (except for portable games iPhone and Android). The point was, there are big players with the cash to make it happen if they wanted, who are just as capable as Microsoft in that market. If Sony were somehow forced out, for example, it's likely another play (perhaps who I mentioned, perhaps not) would enter.
Agreed. I am considering a PS3 when they get cheap enough for all the non-gaming features. Next generation they will be multimedia consoles in the initial media blitz rather than game consoles. Before that happens for Microsoft, they have to make their box look nice next to a TV though. It's fine for young adult males, but a classier look would help them get to regular people too.
As for PS3, Sony is getting killed in the market due to being overpriced
Sony's PS3 A Sinking Ship: Sales Plummet (SNE)
Eric Krangel | December 12, 2008 9:21 AM
Blu-ray players prices are close to $99. Why pay $400 for a console with no games?
No games? Fwaw! What about Lair, Mirror's Edge, and whatever else they released for that failed system...something with a spiky haired kid saving the world...?
Also, Blu-Ray still has a little problem in that it's inferior in most ways (except noticeably better video quality) to two products that already own the market for distributing media: DVDs and the internet.
Okay um, how about this... We've had a 3-way console race for two console "cycles" now... Do you guys think the poor economy might cut it back down to a 2-way race for the next cycle, akin to the good ol' SNES vs. Genesis days? If so, which major conglomerate do you suppose is more likely to cut their gaming division, Sony or MS?
Disclaimer: I work for MS, but not the games division.
The 360 didn't lose nearly as much money per unit, and its flagship title (Halo 3) drove a lot of sales. XBL is very successful, as is the arcade and for-purchase DLC. The Halo, Call of Duty, and Forza franchises will all generate good revenue in the future.
The Wii, from what I've read, is profitable out the gate. It's also cheaper to publish Wii games, so the $50 Wii titles are more profitable than the $60 PS3 games. The only risk I see here is that the Wii doesn't have a lot of upside - the graphics are mediocre and there's only so much that can be done with the wiimotes.
In case it wasn't obvious, I'm with LHR - Sony is the least likely to stick with the consoles. The only advantage they have is that the PS3 is a half generation better than the 360 and makes for a pretty good "media center". They still need some form of revenue stream, and the games just aren't there.