Microsoft Says They’ll Win Console War

Apparently the war is in full force and Microsoft’s Don Mattrick is ready to poke the flag in the ground and call it a sure fire victory (in so many words). He said he’s “willing to declare here today that Xbox 360 will sell more consoles worldwide this generation than PS3” (eurogamer)

They’re either not seeing the Wii as a competitor or are trying to avoid that evil word considering the growth of the tiny little console in the market. After telling the audience the Xbox 360 has already outpaced the PlayStation 3 and Wii he failed to mention the one-year head start the 360 had over its competitors.

There are, of course, bonuses to talking figures when you were first out of the gate. The interesting facts, which won’t present themselves for years now, will be the end unit sales figures for Wii, 360 and PlayStation 3 when all boxes are end-of-life’d. We’re sure to hear each side declare victory when they’ve decided when the war actually ends. In Microsoft’s eyes, the console war will probably end when they release the next-generation box, barring the fact that they should wait at least one year before claiming the title.

You can’t argue with the facts, Xbox 360 is doing very well in the United States (if we ignore Japan). The Nintendo Wii has sold 8.8 million units to the Xbox 360‘s 10.3 million units. How many units did the Xbox 360 have sold around the same time Nintendo boasts 8.8 million? Probably a bit less.

Press can be a great thing when you have numbers to play with and figures to skew. Oddly enough, if some of us are any indication, we’ve purchased multiple Xbox 360’s because of dead systems. Sure, we’re stupid for actually doing it, but those figures will work into the total units sold for the Xbox 360 hardware sales. Imagine, their failing systems may have actually boosted sales figures a bit; probably not statistically significant but funny non-the-less.

We can’t wait to see what type of numbers Sony and Nintendo are going to fling out. If we ask each competitor, we’re sure they’ll say we’re going to win the console war. Nintendo may just ask, “what console war? We just make game hardware” and you can’t fault them there!

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floppyThis leaves Sony with some hard decisions. Restructuring can mean drastic changes that effect all their product lines. The PlayStation 3 isn’t currently a shining example of high profit margins. The console needs time to reduce its overall cost, chip sizes and bring profitability. Is it in danger?

“Sony’s not in a position to halt all domestic production but it has to do something that drastic,” said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management. “If it announces plans to move production overseas while keeping only planning and development functions in Japan, that would be a positive.” (gamestooge)

The yen is losing value in our global economy making it more difficult to export the product and build any type of profitability plan. “A source said this month the company will likely suffer an annual operating loss of about $1.1 billion, its first such loss in 14 years” (news.yahoo.com) All this noise is making CEO Howard Stringer contemplate Sony’s involvement as a “software only” company, making us recall the changes at SEGA to this same result.

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If Sony pushes through the economic and maintenance course, the PS3 will become highly profitable, much like the PS2 last generation (with a slower ramp up for sales). Even if they break even after ten years it seems a lot better than throwing all the effort away.

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