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New Xbox 360 Dev Kits Shipped Out
GamesIndustry.biz is reporting that Microsoft has sent out new versions of the beta development kit for the Xbox 360, replacing the Apple platforms used up to this point. From the article: "Prior to E3, developers reported that a very small number of these more advanced kits had been manufactured, but it's only in recent weeks that they have begun shipping to Microsoft's development partners on a wide scale."
I am!!
First off, How can you call any project that has averaged losses in the BILLIONS every year a success? The only reason the XBox has survived so long is that Microsoft believes that they can buy their way to market dominance. Face the facts, all XBox fans were saying that the Power Difference and Microsoft's ability to buy exclusive games was going to 'win the console war'; all Microsoft can say that they did was to virtually tie a company that has a fraction of the financial assets (Nintendo) while bleeding out money.
I would be surprised if there is a third XBox if the 360 is nearly as unprofitable. I think that only an idiot would think that Microsoft would continue to produce the XBox if Microsoft's entertainment division doesn't break even in 5 years.
Lets get facts straight here:
The Xbox is now making a profit for Microsoft, meaning that the entertainment division will break even quickly. What you casually forget, is that while the console sales were averaging a loss, the games were making a considerable profit. Microsoft is not stupid, it knows that the Windows and Office business streams can make enough money to subsidise the entire company (Microsoft is making an overall profit). The best scenario for Microsoft is to sell Xboxes at a loss, in large numbers, and make the money on software licensing. This is exactly what Microsoft should be planning to do with the early 360 launch... sell as many units as possible and tie those people into buying games at $50 a pop for the next 4 years. If one person buys 20 games (a conservative estimate) at $50, thats $1000 dollars. Thats where the real money is... not in the $400 hardware.
Look at the installed userbase for the Xbox.. last time I read, it was 29% compared to Sony's 60%. That doesn't sound great... but compared to Nintendo's 11%, Microsoft has been very successful at pushing into a new market. The reason that PS2s count for 60% is clear.. Sony had a whole year's headstart on the other two. This is EXACTLY what Microsoft want to replicate with the 360 launch.. even though they'll only get 4-5 months, they'll get the all important holiday sales. They'll build up a userbase quickly, and make a fortune on the games sales. Provided brand loyalty doesn't stop 360 sales, they'll be in a very good position to fight against Sony in the next 4 years. Nintendo is no longer a true competitor to these two; Microsoft has muscled them out of the running in the current-gen consoles and unless they pull something fantastic out of the bag, it's unlikely they'll recover. (Which is a shame, as Nintendo made some very good games.)
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