RE: mass installation on XBox (and economics)
On Fri, 2002-10-04 at 11:03, Brooks R. Robinson wrote:
> | * 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
Not a valid argument. "They" will just make more.
> 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!?! :)
2 thoughts:
- I'm pretty sure that you *must* buy some games that come bundled
with the Xbox. So, the price is .gt. $200.
- If "we" buy lots of Xboxen, it will be that much fuel for MSFT
for when they go to GameCos and say, "Look at our sales figures.
You should make games for Xbox."
Thus, stay away from MSFT!! (They do make good optical mice, though...)
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