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ZippyDSMlee
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Joined: 2006-09-30

360RROD and 7thgen software attach rates WII wins by 20M units sold!
(note I wrote this so all the blame of horrible grammar and reserved trains of[URL="http:or logic :P"] thought [/URL] can be placed upon my lil skull... :D)

If anyone can clear up the profit/losses on this or any of my postings please do I am not very brand loyal I go where the most money gets the most entertainment, and I see flaws abounding in all the consoles of late, but I digress on with the “show” .

Ok so let’s start off with the losses MS has incurred on the Xbox I don’t have any good articles on it but it’s estimated to be as high as 25B over the Xboxs release period if you believe the rumors, most “official” sources will tout the 4B Forbes is stating.

For me looking at how “well” the Xbox did worldwide and with Halo 2 making 21B and they made billions a year after the 2nd year (I believe) so 25B(worldwide mind you) on something that generated 100-200B in profit (from live and software sales) is not that bad really, as is as it was if you make a power focused system your upfront loses are going to be staggering.

Related Xbox articles
[url]http://www.itworld.com/030203xboxlosses[/url]
[url]http://www.businessweek.com/magazine/content/03_20/b3833108_mz063.htm[/url]
[url]http://www.blasteroids.com/news/news_item.cfm/5180[/url]
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Now the 360s losses are rumored to be around 4B which in fact mirrors the Xbox losses being 3 or so years into its life cycle, but for the 360 the half of its rumored losses is due to the RROD issues.

Once again the touted figures for losses are about 2B give or take 200K, but the near 90% fail rate touted in this article

[url]http://venturebeat.com/2008/09/05/xbox-360-defects-an-inside-history-of-microsofts-video-game-console-woes/[/url]

Including the production line of 360s has me thinking that it’s closer to 4B total including losses from other parts of the 360/Xbox brand.

Related 360 articles
[url]http://en.wikipedia.org/wiki/Xbox_360_technical_problems#General_hardware_failure[/url]
[url]http://www.bloomberg.com/apps/news?pid=20601087&sid=aOrvYZ2gPwZk&refer=home[/url]
[url]http://blog.seattlepi.nwsource.com/digitaljoystick/archives/129866.asp[/url]
[url]http://www.xbox360fanboy.com/2008/06/11/rumor-mss-chip-design-team-caused-rrod-fiasco/[/url]
[url]http://www.crn.com.au/News/55747,microsoft-facing-us115bn-xbox-360-repair-bill.aspx;jsessionid=KZTIYCXGPDPPOQSNDLPSKHSCJUNN2JVN[/url]
Despite that they are turning profit
[url]http://www.joystiq.com/2008/04/25/the-xbox-360-turns-a-profit-again/[/url]
[url]http://www.1up.com/do/newsStory?cId=3155499[/url]
[url]http://www.techspot.com/news/23612-microsoft-makes-tiny-profit-on-xbox-360-hardware.html[/url]

But even so can they sustain things the new ram/CPU/GPU in new units will help some but the 360 really is the retarded bastard child of the 7thgeneration…it just happens to be smoking hot, but what’s next MS still has to overhaul it will they make the jump to a 1.5 system that’s basically a uopgrade4d 360 to battle the PS3 for 6+ more years or will they bring out another rushed 2.0 system, but personally I would rather have a BWC(to 360) 1.5 Xbox 2 that has a unlocked hard drive and get it and wait as they prepare a true successor to the Xbox brand.

And here's alil something to help ease fears on newer 360 untis
[url]http://xbox360.qj.net/Ben-Heck-tests-Xbox-360-Falcon-cooler-than-2007-Zephyr-model/pg/49/aid/112801[/url]

but despite that I still give a 5-15% fail rate on all new units, better but not great.
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With the PS3 and 360 taking up debt we don’t really need to talk about the WII losses or fail rate
In fact the PS3/WII fail rate is under 5% but I would say it’s around 5% give or take 2-3%, which is pretty much industry standard and nothing to bat an eye at.

Related articles
[url]http://www.computerandvideogames.com/article.php?id=167269[/url]
[url]http://gamer.blorge.com/2007/07/06/ps3-and-wii-failure-rate-less-than-1/[/url]

The PS3 however has had losses and they are not shy about talking about them, with alittle more than 3B in the tank sony is finding out the hardware what role power, price and chasseing the graphical goddess can bring and much like MS they will have to lose more before they make any real profit off it.

[url]http://www.welt.de/english-news/article2358382/Future-of-Sony-Ericsson-uncertain.html[/url]

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Now fan boys and girls I hope you are wearing clean undies because I am about to make you shat in your panstu and cry home to mother…at least if you are 360/PS3 fanboys.

Current attach rate

Xbox 360: Software sales ratio: 7.5
Wii: Software sales ratio: 5.3
PS3: Software sales ratio: 4.6
Now let’s look at the real numbers

WII total software sales 5X 32M= 160M games total
PS3 total software sales 5X 15M=75M
360 total software sales 7X20M = 140 games total now further add the 30% fail rate into the mix you have a real number of 98M(7X14M) to 140M(7X20M) real figures would be in between so 120ishM sounds about right, you cannot ignore that 30% of units for almost 3 years have had the high fail rate because you have millions of units worldwide that are made of fail and wank…like what the PS3 execs where drinking when they launched the PS3 and realized it was 300$ to much…..

You add up it and more and the 7.X attach rate the 360 has is more like 5.X(20M of 360 units sold) and if you think about it more that’s on about 30% less of the units reported worldwide which is not bad at all, all things considered.

One of the reasons why its important to consider the 30% is that it will damage peoples buying habit and brand loyalty and even with the 30% reduction in unit sales and the damage that dose to final scores the 360 like the Xbox before it is making inroads into japan and digidistro, they are juggernaut even if a decrepited and dim wited one and I say that mostly because of the poor 360 design not because games mostly suck now adays no I cannot blame them alone for it :P.

Related Articles

[url]http://www.ps3fanboy.com/2008/04/25/npd-releases-home-console-attach-rate-ratios-ps3-not-so-hot/[/url]
[url]http://gamer.blorge.com/2008/04/27/xbox-360-leads-software-attach-rate-even-the-wii-beats-ps3/[/url]
[url]http://arstechnica.com/news.ars/post/20061122-8273.html[/url]

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And with this my final link and thoughts

[url]http://www.joystiq.com/2008/08/19/the-sony-reciprocal-ps3-losses-surpass-ps2-profits/[/url]

After posting this I have come to the conclusion that I have had for the last few years, blindly following the graphical goddess of shallowness will destroy you more than it will bring you blessing, it creates a situation where everything is stressed to look good it raises prices across the board and creates insane debt traps to fall into and shows just how very weak and distracted capitalism can be when they have no real goal other than max profit, Nintendo took the slow road and has pawned them, the industry should learn from this or MS and Sony should band together and split the profit on a new console they make together….either way things are not looking to bright..

__________________

Ah modern gaming its like modern film only the watering down of fiction and characters is replaced with shallow and watered down mechanics, gimmicks and shiny-er "people".
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Incoherence is my friend and grammar my bane, which is the fulcrum of suffering I place upon others!:ZippyDSMlee
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