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Why Microsoft is Afraid of Sony

Even though the Xbox 360 is solidly in second place, Microsoft seems more concern with Sony than they are with Nintendo.

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KionicWarlord2223488d ago

this articles...why must someone submit this?

JhawkFootball063488d ago

Microsoft has more money, why would they be scared?

PotNoodle3488d ago

But sony is twice the size of microsoft ^^.

They have reason to worry, they know sony is capable of dominating so they want to make sure they keep them low. Microsoft will take big hits just to do this.

So of course microsoft is scared of sony, sony should of been scared of microsoft at the start of this generation too, maybe they wouldn't of dropped the ball at launch as badly as they did if they didn't underestimate microsoft and overestimate their fanbase.

TheAntiFanboy3488d ago (Edited 3488d ago )

Why? Isn't it obvious? Look at the picture! It's scared because if you put the 360 on top of the PS3's curved surface, the 360 might tip over! You can't stack them like that. =/

morganfell3488d ago

MS has more money but that funding isn't sitting in the Xbox division. People always make such comments as if MS is willing to commit the whole of Redwood for the 360. You are grossly overestimating it's importance to the company.

If Windows 7 does a bellyflop in sales then the 360 division will suffer as MS makes cuts. Over 80% of the revenue for Microsoft comes from the OS and office products alone. That is their bread and butter. The Xbox division is actually quite low on the totem pole.

The Lazy One3488d ago (Edited 3488d ago )

The 360 is making them a profit. You don't cut businesses that are making a profit or even breaking even unless your company is going bankrupt. It would just be economically stupid.

edit: 4 people so far need to take an economics course.

TheDude2dot03488d ago

Didn't the original Xbox cost MS billions? I doubt that the Xbox Division is in the green yet.

Shepherd 2143488d ago

i dont think they are scared. But it makes sense for Microsoft to be more concerned with competition that is more even compared to them. I mean the Wii is more like a high selling toy than a game system, and MS knows they wont catch up to Wii sales. So they might as well focus on competing with Sony, who makes similar games of quality, not cheap $10 Wii balloon games.

IdleLeeSiuLung3488d ago

lol... the lazy one has made a very obvious post, yet the disagrees.

Afraid is probably the wrong word to use in this case, but rather recognizing your competitor. Something Sony failed to do initially and look at them now. Not exactly dominating and reduced to competing with MS for second place...

Playstation used to be the King!

Sarcasm3488d ago

Microsoft mentions Sony and PS3 about 16 times every month in their NPD reactions.

And some of you think there isn't a glaring possibility that MS really is afraid of Sony?

morganfell3488d ago

MS is turning a profit on current operating costs. And you are correct. That does not mean they wiped out all previous Xbox debt - including their billion dollar RROD payout. They will cut operating costs even if an area is generating revenue. Why disband Ensemble when the game sold so well? Why cut into MS Flight Simulator when it is a great seller for Microsoft Games Studios?

4Sh0w3488d ago

Unless Sony's the boogeyman and Microsoft is Scooby Doo I see know reason why microsoft should be afraid of sony. OK, now seriously why make an article like this, of course microsoft is CONCERNED about sony, they would be foolish not to be. Yes they've made some stupid comments about sony, same as sony has done in regards to microsoft and even their fanbase, its called advertising when its done right it works it, when its done wrong people see through it and you they end up just looking like stupid comments. The headline should read "Why are Microsoft and Sony both fighting so hard" but then the answer to that is obvious so all though more accurate wouldn't generate nearly as many hits.

The Lazy One3487d ago

You still don't cut a sector in debt if it's now making a profit.

You don't cut profitable sectors unless they are trending to go into debt. They are trending up. It's still economically dumb.

And I see the numbers gone up a ways from 5 on the people that need to take an econ course.

IdleLeeSiuLung3487d ago

morganfell says: "Why disband Ensemble when the game sold so well? Why cut into MS Flight Simulator when it is a great seller for Microsoft Games Studios?"

Well, it seems MS is moving to a different business model. It seems to be cheaper for MS to fund the development of new games IP than owning and managing their own studios.

Raz3487d ago (Edited 3487d ago )

They're all working together behind the scenes, laughing as they manufacture sales from brand loyalty and fanboy wars. ;P

Anon19743487d ago

Things appear to be trending down, from what I see. The last quarter, MS sold more, brought in more revenue and yet still profits were down 60% year over year. And that was on increased holiday revenue. What's going to happen to those numbers when the holiday revenue dries up? To me it looks like something's seriously wrong in the MS games division but I won't be completely convinced until after this quarter. If revenue is still up year over year and yet they're losing money now where they were making a profit last year at this time I think serious questions will need to be asked at the corporate level.

aueslander3487d ago

...if Sony was ever in trouble, on a whim Bill Gates could alone buy SOny with how much money he has. I mean come on, these articles are all retarded to begin with but really, its not like if the XBOX starts to faulter that they will have to file for bankruptcy or face the possibility of closing its doors like companies past like Sega and 3DO and Atari.

You really think that, at the end of the day, Microsoft gives a flying FRACK about Sony? That would be like the steelers or pats being worried about the lions.

FreestyleBarnacle3487d ago (Edited 3487d ago )

To add to the economics course. Maybe you don't cut a profitable division but what if you can make more profit using the capital for something else?
P.S. Go Lions!

JHUX3487d ago

You got to realize that Microsoft possibly wont even make back any profit on the 360.. the RROD really hurt them on that one, they are finally getting money earned on each 360 sold, but have taken losses other places.

EXCLUSIVEGAMER3487d ago (Edited 3487d ago )

Sony has ties to all things multimedia.

Sony music
Sony online entertainment
sony pictures
Sony computer entertainment
sony communications

im easily leaving out over 200 advantages that sony has over microsoft.

Your comment is the most childish thing i have ever read on this site.

Microsoft WISHES they had the relationships sony has, if that were the case then we would ALL be buying HDDVD's. We would also ALL be buying the 360 and making it our home media hub/ entertainment centerpiece.

Guess what? all the MS money in the world cant help MS.

on topic:
if i were ms i would be scared right now, here i am launching 1 full year ahead of this console cycle and my manufacturing is failing. so i begin badmouthing my opponents, and enticing their "exclusives" to jump ship for a CHECK. buying timed exclusivity, talking smack, AND I STILL CANT SLOW SONY DOWN.

If i were ms i would be scared. Where are my exclusives? why is my hardware failing? is gears1 the best we have to offer?

The Lazy One3487d ago

Then you do one of two things. take out a loan for the more profitable thing, or you wait till the profit ur already making is enough to do the project.

You still don't cut things that are making a profit and doing well.

+ Show (17) more repliesLast reply 3487d ago
GWAVE3488d ago

This isn't just a "console WARRRZ!" thing. If you're more than 5 years old, you should have enough sense to realize that Microsoft is a very skittish company. When ANY competition crops up, they run around like chickens with their heads cut off. And I'll say it again, this isn't a "console WARRZZZ!", anti-360, sentiment. Sony is simply Microsoft's latest target. Microsoft has displayed this sort of behavior for decades.

Godmars2903488d ago (Edited 3488d ago )

The only thing wrong with your thinking is that MS picked this fight. They're the ones who moved into consoles after Sony opened the industry. Just like they got - tried to get - into the iPod's business.

Competition doesn't crop up on them, they crop up on competition. Established competition that they use any and all means to topple.

Which sadly, doesn't include making solid products. Give advertising priority over quality.

ultimolu3488d ago (Edited 3488d ago )

This is the exact same way they acting during the PC era.

That's why I wonder...if Microsoft is firmly in second place and they're beating Sony/PS3 so badly that Sony can never fight back, then why are they so concerned with what Sony is doing?

They should be focused on extending the lead by bringing more games to their consumers and potential consumers who want to buy their system.

But who am I kidding, I'll be labeled as Microsoft hater either way.

Cowards will always disagree and not prove me wrong. It's okay you know.

TheRealSpy: You're missing the point.

TheRealSpy3488d ago

look at lifetime sales of games and consoles. i think you'll see that the credit you're giving to sony belongs to nintendo.

sony muscled in on nintendo the same way MS muscled in later. pretty hypocritical to say MS used tons of money to buy exclusives and try to bring sony down when sony did the same thing in the 90s to nintendo.

and since when do you call something 'competition' if it means it's unacceptable for another company to get in on the action? it sounds like you think sony should just have a monopoly and no companies should be allowed to move into gaming.

and seriously...who cares? why are gamers so concerned with the business end and the petty back and forth between these 2 companies? screw em. just enjoy the games.

dude_uk3488d ago

errr if memory serves me right...

Nintendo went around sony with their "joint console thing" and sony decided to compete with their new "CD" technology...

so they did not muscle through to nintendo, nintendo deserved it.

JD_Shadow3488d ago

So wait, let me see if I got you correct.

For Sony (assuming they did to begin with) to "monopolize" is immoral, but it's alright for MS to do it. And...Sony got the exclusives because of the better format (uhh...Sony had disc-based format while Nintendo had cartridges).

If you notice carefully, ulti never said that competition isn't good. I'm not sure where you got that. What is going on here is that MS is being WAY too c0cky and thinking one dimensionally about the console war, and it's rather ridiculous that one company's remarks get them all sorts of bad press and everyone spinning things badly, which someone else's ignorance and business practices constantly gets a free pass. It's annoying that no one calls MS out on their sh!t but we're so ready to catch Sony on the littlest mistakes, and make good things into bad things. This is like what I've been saying: what did Sony ever do to deserve THIS much bad press. Then we say how dumb such articles are, and we suddenly get the fanboys screaming "OMG, Sony Defense Force at it again".

Then, finally, someone makes a good article describing everything fairly, and what do we do? Use the report button because God forbid we see a fair article that doesn't slam Sony in some way. But lo and behold, Analoghype's BS continues to be approved faster than f#cking lighting on this site (and the ones that approve THEIR BS b!tch the second HHG's stuff hits the front page. What a world we live in.). And then people wonder why we get irritated and come out in droves.

Maybe if the press did their job like Associated Content just did, we wouldn't be this touchy about the gaming media and wouldn't treat stuff like this so seriously.

The Lazy One3488d ago

Pretty sure he was talking to Godmars.

@ultimolu: You'll be labeled as a microsoft hater because you're a microsoft hater. No other reason is necessary.

TheRealSpy3488d ago (Edited 3488d ago )

i was talkin to godmars.

i think ulti commented just a few minutes before me so his comment wasn't there when i was typing mine.

also, i think you're taking my intentions wrong. i am not defending the actions of any corporation. i think MS sucks. i just happen to also think sony sucks (not to say the systems suck...i own and occasionally enjoy both).

there seems to be a pervading idea among the majority of the N4G community that if you don't like sony, you automatically love MS or vice versa. this is not the case. i was simply saying that it is wrong to make the claim that MS has no right to enter the gaming community. it's open competition and anyone with enough money can get in on the action. not only that, but MS was in the software end of gaming for years before the got into the console war. it was a logical step for them to make, especially since sega dropped outta the race.

EDIT: also, this is not a balanced, well written article. it's flame bait. the title alone is enough to make that clear, but did you actually read the thing? the reason MS and Sony focus on each other is because they are targeting a different audience than nintendo. think of it like this. the vast majority of computer users use windows. but "hardcore" pc users use linux. linux is targeting a different audience, a more narrow audience. this is what's going on with consoles right now. everyone over 40 knows what a wii is, but they don't know what a ps3 or a 360 is. they call them both playstation. and look what games sell best on wii, games that are meant to turn on for 10 minutes, play around, then go away for a day...or a week. MS and Sony aren't afraid of each other...no more than any other competing companies. they are just trying to outdo one another for bigger market share.

if this article was written that way, i wouldn't have issue with it. the issue is that it was clearly written from the perspective of someone who sides very much with sony. it's not an unbiased approach.

+ Show (4) more repliesLast reply 3488d ago
Lotard33488d ago

In fairness, Sony has also said that they don't feel that they are directly in competition with the Wii. That being said, it seems like all Microsoft (especially Aaron Greenberg) do is attack Sony's console. Personally, I'd prefer to hear more about games they have lined up for this year, or other relevant details about their own console.

3488d ago Replies(6)
dustgavin3487d ago

Don't forget to add Star Ocean and Halo Wars to the Microsoft Flop Hall of Shame.

Ashriel3487d ago

Star Ocean wasn't a flop -.- Did you really expect it to reach AAA status? (If so, you fooled yourself)

dustgavin3487d ago

You must be kidding yourself. All the bots on this site Hyped Star Ocean till no tomorrow. Then they got quiet when they realized it was nowhere near as good as they were hoping.

Last hope indeed.

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