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The Xbox One Isn’t Out of the Woods Just Yet

CCC Says: "Ah, the old Xbox fanboys are going to absolutely love me after this article’s conclusion. Naturally, being the overbearing PS4 zealot I am (or at least believed to be), I can only imagine the amount of heat I’ll acquire from the relentless trolling posts the comments section below will garner. In fact, I’ve always wanted to eat a S’more made via flame post, so why don’t I just go grab my marshmallows right now?! Of course I could spend my time attempting to convince those around me that I’m a bigger Microsoft fan than Sony in many ways, that is likely a futile endeavor. Instead, I’ll simply let the truth speak for me, as the facts are once again on my side. Pesky little things I know…but useful they are indeed."

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JBSleek1529d ago

Liked the article but you named three unproven devices or services as a three headed monster. VR, PS Now, PS TV.

Eh time will tell but PS Now in it's current state is overpriced yet will likely drop in price, VR well who know whether that will be successful(hope so). PS TV is entering a very crowded marketplace of streaming set top boxes and not sure it will gander any really traction.

"I’ll put it out there anyway. If the Xbox can’t muster more than just a small sales bump, your new CEO will pull the plug and move on. Plain and simple."

As well he should. But I don't think that will be necessary. MS doesn't have to beat PS4 in sales to be a success. Xbox needs to be profitable and cater to millions which it seems to be doing. But time will tell.

2015 will be big for Xbox with games and also Windows 9. I want to say make it or break it year but I'll give them till 2016 for that.

iamnsuperman1529d ago (Edited 1529d ago )

I agree with you on the tree unproven devices/services but this

"MS doesn't have to beat PS4 in sales to be a success. Xbox needs to be profitable and cater to millions which it seems to be doing".

isn't quite right. For big companies you need to be raking in big profits. Big profits are only going to happen if you control big shares of the market. Small profits are pointless for Microsoft and a complete waste of time and resources (which is where the idea came from for them to spin it off). This is more of a problem that is exclusive to Microsoft than Nintendo or Microsoft who need to turn not small profits but worthwhile profits (which are lower than Microsoft due to their size)

This isn't me saying that I feel the new CEO will cut his losses and run in the next couple of years or so. If we ignore sales numbers the Xbox brand should be safe as the new CEO seems more Ballmer like that I think people hoped for

JBSleek1529d ago (Edited 1529d ago )

I do respect what your saying but I will refute some points.

"For big companies you need to be raking in big profits. Big profits are only going to happen if you control big shares of the market."

Is not particularly true. You don't need to be first in a market to rack in huge profits and actually all of these consoles can do so. For example look at the telecommunication market of America. Or look at Apple who doesn't command any huge market share in any market put profits are unrivaled by any company due to high profit margins and catering to the higher end market.

Being first doesn't necessarily mean you are making the most profit. Sales isn't equal to profits. You can have a scenario that all current generation consoles are very profitable. Thus they all win.

Now, bringing that back to current generation standings I'd assume Sony is winning in profits simply due to the fact that have more consoles sold thus are selling more software.

MS already said Xbox wasn't core so I'm assuming that if Xbox expands the Xbox brand and isn't losing money they will continue to keep it going. Not every market a company is in is a homerun. I think MS is content with Xbox being where it is and honestly even if Xbox was dominating this generation it still wouldn't be the core of MS.

Consoles aren't big bread winners for companies especially MS who dominates the PC market, the enterprise market, and is growing an unrivaled cloud platform.

iamnsuperman1529d ago (Edited 1529d ago )

@ JBSleek

Apple does control a big market share at the company level. May not be the software level (i.e. IOS but with only two really competitive software types on the market it is still pretty big and profitable) but it does in devices.

Consoles isn't holey relatable to this though. Consoles don't make most of their money through the sales of the system but the sale of the software (especially licenced software). This is why market share really matters. The bigger the market share the more software you sell (general rule of thumb). It does beg the question why Microsoft went into the console business. It is never going to make the profits they need to be worthwhile.

JBSleek1529d ago

What do you mean at the company level? I'm not following. The only market that Apple dominates marketshare wise is tablets.

mhunterjr1529d ago (Edited 1529d ago )

No, you don't need to control big shares of the market to make big profits. Profits aren't determined by how many sales you have compared to your competition. They are determined by the difference between revenue and cost. Apple has a tiny marketshare in personal computing, but they make a ton of profit with their laptop business because their products have a high margin.

In the case of MS with the xbox, it's clear that they would love to have a larger portion of the market. But they can find success in this space without being neck and neck with Sony. Software sales are the biggest revenue source in gaming, so having a high attach rate is of utmost importance to them. They are also hoping to use xbox to bolster their other services (bing, xbox music, azure cloud services, one drive, etc). It's not a simple as 'be #1 in units sold or fail'

n4rc1529d ago

Xbox is Microsoft's ticket into the minds of young future customers..

They don't need to beat Sony to be successful.. We have never once had only one option for a reason.. There will always be one company on top that makes the most money or sells the most units.. But the rest can still live happily ever after.. Auto industry, smart phone etc..

macusa221529d ago

Jbsleek, iPhone is the number one selling phone. Don't confuse a operating system with phones. iPhone owns 40% of cell phone market share. Android is the number one selling operating system because there is like 20 different type of android phones on the market vs 1 iPhone.

ramiuk11528d ago

you sayh it doenst need to sell more than ps4 to be successful which i agree,but it must be doing really bad becasue of all the things MS bosses etc are saying.
way to much damage control for there not to be bigger issues for them.
shareholders are not happy and MS are in trouble with xbone,i just hope they can pull through it intact.

they only have themselves to blame though

+ Show (4) more repliesLast reply 1528d ago
04STIBluByU1529d ago

@JBSleek:

The one thing your are missing about PS TV is that you can play video games on it. This alone differs from the roku or apple tv. I can play my PS4 games in my bedroom when my PS4 is still hooked up to my projector in the living room. Also I don't have a VITA but would love to play some games. This device will let us play some VITA games aswell with a dualshock controller. To me and many others this is why we want the PS TV!

JBSleek1529d ago

Yea but lets be honest here. It's not going to sell well. Amazon Fire TV can play games and so is the upcoming platform Android TV.

I don't see PS TV selling well at all.

badz1491529d ago

comparing android games to Vita games? like they are even remotely comparable? FAIL!

lifeisgamesok1529d ago (Edited 1529d ago )

I think Xbox One will be fine with the games, games, games approach Microsoft has

A lot of the negative things are out of the way so that the games can now shine

There hasn't been a moment yet that I've thought of this system as a dust collector

I do believe Microsoft has to cut support of the Xbox 360 though so that the games won't be held back and those Xbox brand faithful will have to migrate to the Xbox One

Last gen lasted long enough already

Blackleg-sanji1529d ago

They been cut support for the 360 honestly since 2012

CaptainObvious8781529d ago

I was going to say that lol, you beat me too it.

I'd argue it was earlier than 2012 though.

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LackTrue4K1529d ago

"there must not be any dust collecting on your system/XboxOne...but sure ass H3ll.....its in your eyes"

SonyAddict1529d ago

That's funny cuz I came up with an idea and now I put a towel over the top of my x1 to keep the dust off it and it works!,you should try it lol.
Seriously!.

+ Show (1) more replyLast reply 1529d ago
Goku7811529d ago (Edited 1529d ago )

XBox One is struggling to stay afloat, slashing prices, removing it's main selling point, and trying to bundle with games they hope will sell systems. If you are selling double what you were selling, and that still doesnt put you in front of your competition, that says alot right there.

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CJQNSNYC1529d ago

Another article attacking Microsoft...what a shock! This of course will be followed by 10 love notes, sorry, articles, praising all things Sony.

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