RE: mass installation on XBox (and economics)
| * martin f krafft <madduck@debian.org> [04-10-2002 15:14]:
| > > If I buy an X-Box that cost $300 to make for $200, then MS `loses'
| > > $100. If I don't buy one at all, then they lose $300.
| >
| > Where did you learn economics?
|
| I should resist, but sorry.
|
| More Xboxes sold, is more developer support, is more games, is
| bigger market share, is not nice, is it?
I think that this purchase would decrease market share since they are not
being used for gaming and not prone to entice someone to purchase it as a
game console. MS would lose (development) dollars because the XBox is being
sold at a loss. It might cause further failure by giving MS a false sense
that their product is selling well for it's intended design; which could in
turn cause future problems when it turns out that they aren't as popular as
they were led to believe.
The idea that they would lose $300 from a missed sale is accurate given
market saturation (no more willing buyers). IMHO, right now, at least, the
market isn't even close to saturation, especially with Christmas coming up,
despite the dreadful US economy. A lost sale will be picked up by another
buyer. A large purchase for alternate use would get them out of the hands
of a willing buyer that would make up the margin on games for MS. (The
point I'm trying to make here is this... I'll eat the pan of brownies so
that you don't eat them and get fat, are I so nice for doing so!?! :)
Thoughts...
Brooks
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