Ehrenberg dooms Xbox 360 but he's wrong

Forbes' Roger Ehrenberg thinks the Xbox 360 is doomed because it has cost a lot of money so far, and hasn't been a huge hit in Japan, but he's forgotten about the future.

[kewlkat007]

"Microsoft has well and truly admitted since day one that creating a games console empire and platform to rival that of Sony would never be cheap, and that it would take years to reach profitability."

I think MS was in this for the Long Haul from the get go. Comparing old giant Nintendo, then Sony, now MS, it hasn't been too shabby.

Plus What these people are are also forgetting is that the consoles are becoming more and more like computers, and Sony can't lay a finger on Microsoft in that market. Unifying PC gaming and an XBOX + DirecX10+ will give Ms the edge. For now the PS2 is somewhat giving PS3 and Xbox 360 a run for their money, which only hurt the PS3 in the Long run.

The Xbox brand can only get better.

[achira]

are you sure ? one reason i dont want a xbox360 is that it has the same games like the computer, so there is no need for this cheap pc. on the other side the ps3 will have many game which are not on the pc, and this is the interesting part.

[Kyur4ThePain]

consoles continue to have something that distinguishes them from PCs otherwise, what's the point? With more and more games becoming cross-platform, why would people feel the need to buy a console?

[darx]

But it's a small majority who do their gaming on a PC. I can PC game myself but only if it's not on a console.

The differences between both the PC and Consoles, IMO, are not that big a deal but being comfortable when gaming is.

[tehcellownu]

seriously, xbox isnt goin anywhere..if they lose this gen people will stright laugh at them..they even release their system early..the xbox brand can only break down on you..

[slugg]

Define "Lose." With Xbox LIVE subscriptions, downloadable content (including TV and Movies, some in HD), and the huge accessory and game attach rate, MS is making money right now, even a little bit on every system sold. Sony, on the other hand, is bleeding money-- losing around $200.00 on each PS3 sold, and with the poor game and accessory attach rate. So in the long run, say 2010, if 30 million people have PS3's and only 20 million have 360's, but 360 owners buy 5 times as many games, who is winning?

[BIadestarX]

It's funny... how Sony is being trying to make people see the PS3 as a computer. But Microsoft though not even trying get's that a lot. "one reason i dont want a xbox360 is that it has the same games like the computer" " PCs otherwise, what's the point"

"why would people feel the need to buy a console" Do you know why the PS3 is selling less than the wii? Is it because the wii is a better console? I personally believe is because of price.
If you would to give the choice between giving me a $2,500 Gaming PC and a $399 console I would pick the 2,500 if you donate it to me. Now if you ask me to buy it the 399 pill would be hard to swallow.

I think the question should be, why would anybody pay so much money for a PC when they can play the same games on a console?

The real facts are:
Not all PC games will be release on a console.
Not all Console games will be released on the PC.
Consoles cost is subsidize and sold cheaper than what it cost to produce... not PC.
Consoles lifespan usually is 5 years, PCs surpass in terms of power and graphics the consoles sometimes even before the console is released (Take a look a crisis graphics and compare it to the PS3).
Imagine having to wait 5 or 10 years(as Sony would like) to see improvements in games? Also, you don't buy a PC just to play games.

[gta_cb]

ok this is a MAJOR opertunity for a flamewar! i hope we can all pass this test and NOT ARGUE which is the better system!

we all have our opinion, keep them to ourselves rather then type them on here for an argument

[EDIT] by the way bladestar i wasnt saying your comment is a mayjor flamewar opitunity i ment the story but pressed on the reply button by mistake sorry lol

[xfrgtr]

'Xbox is a PC' says Bill Gates
"After insisting the contrary with its first console, Microsoft chairman Bill Gates has said that the Xbox is not just a game console but a "general purpose computer", as well as reaffrming the company's strong support of PC gaming."
http://www.computerandvideo...

[EZCheez]

This article reminds me of all the pro PS3 articles. It's nice to see, but it's obviously biased.

My favorite quote:

"Hit titles like Gears of War, its sequels, Halo 3 and other AS-YET UNKNOWN hit titles to come will push Microsoft into profitable territory."

[tplarkin7]

The biggest titles in history were "unknown" before they were made. It also important to recognize that games sell systems. Microsoft has great games on the 360.

[ASSASSYN 36o]

Analyst are so short sighted. The point that hits home is the obvious sales of the 360 and associated million selling games. I hate analyst whom comment on specifically the xbox 360, ps3, and wii and you all know I am a xbox-fanboy. I don`t care what system they mention will lose or succeed analyst suck. Their opinon holds no weight for microsoft, sony, or nintendo. And shouldn`t for us. We as gamers will always decided whom stands and falls we as gamers are the greatest reviewers and future developers. We make the system and break the system. Not some misguided analysts trying to predict the demise or reign of a game console using 10 seconds worth of information. Look at the facts yourself and absorb the reality your system of choice is in. Don`t rely on analyst.

[gta_cb]

ya know whats funny? ...

you say your a xboxfanboy, yet this has got to be one of the least fanboyish comments on here so far lol!
i completely agree with you, which is why i have never (or at least tried) to ignore the "analyst" although i think they should be called BU!!SH!TERS!

[Cartesian3D]

thx for ur comment.. I allways want to say that .. but my english sux..so I can just say thank u .. :)

[super bill]

it makes me laugh at all these sony fanboys out there saying the ps3 is best and all these games are out there.what games?the only games i can see have already been launch on the 360.with the 360 getting better reviews.so why these ps3 fanboys have to wait until 2008 for killzone mgs4 the getaway god knows when that is going to be release.us 360 owners can look forward to forza2 next month plus mass affect in september halo3,call of juares,blue dragon,plus 3rd party games being release first for the 360 like codemasters dirt rally wtich is release for the 360 in june.then for the ps3 in october.so you ps3 fanboys are talking bullsh@t.

[Kyur4ThePain]

Could you and Blade try and stay on topic and not turn this into another "But the PS3" rant?
Click the link, read the article (which is about MS and whether they should continue with their gaming console plans FROM A BUSNIESS PERSPECTIVE) and comment on THAT, not the PS3/Wii/whatever else you need in order to try and deflect attention.

**EDIT**
I was wondering how long before someone asked for my comments.
Frst off, the avatar is purely because I don't like windows...nothing to do with their console.

You have to admire their determination to shoulder their way into the gaming industry against all odds. They are obviously not planning on giving up any time soon.
Now, as a shareholder this would p!ss me off a little, as they are dumping billions into this and don't have anything to show for it yet.
Idon't care about the sales numbers, I want to see how that will turn into money. I would also be interested to see how much it costs them to handle the defective console fixes (however many that might be) as that should be added to the overall costs.
With each generation of consoles becoming more advanced and therefor more expensive to manufacture, you have to start questioning whether there will eventually be any return on that investment. That's one of the reasons I doubt there will ever be a 4th console on the market (unless it's a less capable, much cheaper thing) - i just don't think the market is large enough to ensure ROI for 4. Even with the current three I think it's questionable. Now, on the software side this might not always be the case - hey, let someone else spend the money on R&D, manufacturing etc and I'll sell millions of copies of my game.

[gta_cb]

@ Kyur4ThePain

just wondering what do you think about the article? and please i have read some of your comments in the past and to be quite honest you can be a realy fanboy (dont need to say who to, as your pic kinda gives it away)

you say "Click the link, read the article (which is about MS and whether they should continue with their gaming console plans FROM A BUSNIESS PERSPECTIVE) and comment on THAT"

so whats you opinion?... if you have actually read it.

[THAMMER1]

It is a pro 360 and M$ article. I agree with many of point made. Just read the article. O.K.

All any of us want from a new console is for it to out do the last one. So far the 360 is burning rubber and I'm a proud owner. Now if M$ pulls a PS3 on me next generation I just will not buy it. So far they are on the right path with the right games and services at prices. Only Sony fan boys would say other anything else.

Any one who knows games knows the 360 is the best choice today.

[Lacarious]

i'm counting down the minutes to when my GOW explodes before crackdown catches on fire well after Obliv goes 9/11 on my house while my wireless controller strangles me with virtual wires. Each time i download a new demo i cringe at the fact that soon my 360 will blow me away with it's awesome visuals so much so that my head and all heads will in fact explode.

[Firewire]

I find it rather funny, when the financial coloumnist wrote about MS not doing well, from a complete finacial perspective, you guys called him a Sony fanboy, that the article was a pro Sony rant! Now a tech site disagrees with him, but doesn't give a finacial picture to their argument, all just pure speculation on the future, and you treat it as fact and see it as being unbiased!
No one knows what the future will hold, you can't say there will be so many hit games and use it as facts. But what you could do is look at it from the established finacial numbers. That will tell you, how much has been spent, it can give you an idea of what will be spent in the future, and what will have do be done sales wise to have a profitable future in a certain timelines. But you guys disregard all that for pure speculation from a tech site.
I think your hopes and dreams aren't your own, but there MS's! As I've stated before the gaming industry (even though fanboys from both sides hate the idea) needs both Sony and MS, to survive! If you don't see that point there is no hope for you!
All this finacial anylist said was the picture wasn't as rosie as everyone thinks in regards to MS, its more of a warning than doom & gloom! The real message is that MS can not afford to become compliant, it has to tighten the belt (for a lack of a better term) if it realy wants to suceed in this gaming market.
So all I ask is that you guys stop trying to but your one sided spin on the whole issue, it serves no purpose other than to fool yourselves, on a topic were you have no vested interest finacialy! Remember we are only gamers, we play games, let the executives play the idiots, the role suits them!

[EZCheez]

You are my hero

[predator]

this is why no1 should pay much attention to what people write in a article slating 360,ms,ps3 and sony, its the games that speak for the consoles, im an owner of a 360, use to have a ps2 because of the games, not that it was done by sony but cos it had the better games, so when i decided i want one of the new consoles i read about them,looked at the games for both and chose the 360 for me it has the better games,may do for other people, the ps3 may do for other people to, its the people who play, and make games that make or break a console, not some stuck up analyst that sits on his fat ass thinking what can i say that will get my name in a paper

[kewlkat007]

There will always be those differences that distinguish Consoles and PC's.

1.Price, $400 vs $2000(A decent gaming rig + Monitor and all)
2.Controller vs Mouse & Keyboard
3.Visuals, New ATI X2900XTX & Nvidia 8800GTX vs R600(no comment)
4.Titles,(that require a mouse an keyboard for better controls)
5.Portability Factor(PC Vs a Slim Console)
6.Developers and Scalabilty, They can push and max out a Graphics Card every year, as opposed to a console, once it becomes tapped there is no scalability.

So having a Console where you can enjoy 5-6 years of all games being played and viewed as the developer intended, without downgrading the Visuals because your Card can't handle it is a big Perk.

Either way MS is merging the two forms of entertainment, which can only bring more profits. They have their name in (Vista + DirectX 10+), (Windows Live games), and the Xbox 360). People this is still a business, fanboys aside.

Like I said this is where they will have a the competition beat. From a business POV, this will be a great move if they can pull this off. If you have a PC or a 360, then it's simple you havea choice of buying which ever game for which-ever platform. If you have one of both then the great thing is, you'll be able to play somebody on the other platform. Who would of thought this would ever be possible?

Funny how people don't even read the articles or give their POV, just spitting NULL comments and negatives. Sony fans that play just one console, will believe everything they read, that slanders MS, not just the Xbox360. Anyhow....

[Bathyj]

The article he was commenting on was written purely from a finacial and business point of view. And he had a lot of good points. Lets be honest here, if it was anyone else but Microsoft, they would have given up by now. There's nothing unreasonable in the original article even if it does ruffle some feathers.

This guy writes like someone here wrote it. Pure emotion, with little fact to back any of it up. He even goes so far as to call us Sony or Nintendo fanboys if we dont agree with him. Seriously internet journalism is on a slippery slope.

But my distaste for his writing style aside, we all know XB isn't going anywhere. I honestly dont see them making profit this gen either but I've no doubt they'll be there to slug it out next gen too, and I'm glad. Sure they might be making a couple bucks per XB sold but they are still far in the red and they would already be spending money on R&D for the next Xbox (please dont call it 720, that sux, Xbox 3 is fine.)

You all know who my favourite is, but I dont want Sony to have it all to themselves. Competition is good and lots of great games have been born on Xbox. Given Wii's success, Sony's most likely good showing this gen even if it does loose market share, and the fact M$ would have to be bankrupt before XB dies I think its safe to say we'll be looking at a 3 horse race, at least into the next generation. I love being a gamer.