MSFT and the Xbox 360

[AvianeN]

Has Jim mentioned what would happen to MSFT's stock if the Xbox 360 is a total flop?

From what I see there are 3 main problems....

-How will they grab initial marketshare if the console is $400? That sounds like the high end of the market.

-Too much emphasis on hardware. If you're familiar with the game systems of the 80's and 90's, companies that cared about hardware instead of games failed miserably (Jaguar, NEO GEO, Sega Saturn...etc).
True, they didn't have the bankrole that MSFT has...but it sounds like MSFT expects to dominate primarily because of hardware.

-Historically, there's only been room for two consoles on the market. First it was Nintendo and Sega (with a host of other flops), then Nintendo and PS/PS2.....and now, Nintendo and PS2 still have powerful franchises.

It'll be very interesting to see what happens this fall...

[AVEruro]

My thought is..it's coming out in time for this Xmas season with appox. 40 games by years end,and it should be a big hit. Do you remember when PS2 came out before Xmas,there was a mad dash to try and get them,people paid way over list. I know we are talking about two different products here...however it's NEW and gamers want new(even at 400 a pop)!

[Benitopa]

Excellent point. I think that the XBOX 360 will be a hit (hopefully), mainly due to hardware. People are always on the lookout for the biggest best thing out there, since they're looking for hot games. I have friends who bought an ps2 just because it has Gran Turismo, and is not available on Xbox. Also, think about Nintendo's influence... HUGE decline over the decade. I would say the Cube is a waste of time and money, but people still rushed to stores to get it, and now I feel xbox and ps2 dominate the market. There are proprietary games for either console (GT4, Halo, etc.), these will drive purchases into the holiday season. Which is why I picked up some MSFT already, hoping to make some bank come holiday season end. But I'm still a loyal PS2 gamer.

[Belsmolo]

As the owner of both Xbox and PS2. I think PS2 is way better. I agree the thing hurting it may be the huge price tag. I wouldn't want to spend that much especially if I know Playstation will be releasing their new machine in the spring (which looks awesome). I am weary whether the Xbox 360 will be a "great hit"

[BelenWilli]

GME is the best play off of Xbox 360's success.

I don't think Microsoft made any profit off the first system and I don't think it will with the 360. The 360 will have a good xmas launch but I don't expect it to become a major player in Microsofts bottom line. Sony will likely win big with the PS3 which I wouldn't be surprised to see a $400 pricetag for too.

With GME you also get exposure for the sure to be popular launch of Nintendo's Revolution and the PS3.

[admin]

I think the hardware will be a big selling point. In this case the Xbox 360 is being designed to be an all in one type unit. You can hook it up to an HDTV and watch TV with it (or movies ... or use it as a Tivo), hook it up to your stereo and get full surround sound. You can also connect in your PC and use the HDTV as a monitor. Also you can play with a LAN or on-line. And lets not forget the insane graphics. Someone said earlier that there could only be 2 main consoles. I have a feeling it will be the Xbox and PS3. Nintendo's game cube was not the top dog last time and they have a lot of ground to make up.