+Sauron Posted March 30, 2002 Share Posted March 30, 2002 Chew on this. Copied from JI2.... Redmond, Washington, March 27 (Bloomberg) -- Microsoft Corp. is selling fewer Xbox game consoles than expected in the Japanese and European markets, sparking speculation that the world's biggest software maker may have to cut prices on the money-losing product, analysts said. Microsoft began selling the device in Japan on Feb. 22 and weekly sales declined to 10,000 units by its third week on the market, according to a report by Takashi Oya, an analyst at Deutsche Securities Ltd. Oya said Microsoft will be forced to lower prices in both Europe and Japan within the first two months of availability there. The company months ago said it would have a more difficult time in Japan than in the North American market as it competes with Sony Corp. and Nintendo Co., whose rival consoles have well- established footholds in their home market. Still, analysts said sales in both Europe and Japan have been worse than expected. "Microsoft has had its teeth kicked in, in both Europe and Japan," said John Riccitiello, president of Electronic Arts Inc., the biggest U.S. video-game company, in an interview. Electronic Arts makes games such as Madden Football and FIFA World Cup for the Xbox. Sliding Sales The Xbox was Japan's best-selling console the week it went on sale, according to the Japan Inc. newsletter. Then unit sales declined 25 percent in the second week. Volume in the third week fell by one-third from the previous week, Oya said. "While Xbox had been projected to struggle because of inadequate software and poor brand recognition, the setback is worse than imagined," he said in his report. In Europe, where the Xbox debuted on March 14, some retailers sold the console for more than 16 percent less than the suggested price of 479 euros ($417.83). Oya said the cuts were due to Xbox's "lack of competitive strength" against Sony's PlayStation2, which sells for 300 euros. That contrasts sharply with the Xbox's early performance in the U.S., where the company sold 1.5 million units last quarter after releasing the box in early November. That met the high end of Microsoft's expectations and exceeded many analysts' estimates. The Redmond, Washington-based company sells the Xbox at a loss of $50 to $150 per unit, analysts estimate. Microsoft's gross margins, or the percentage of sales left after subtracting manufacturing costs, fell last quarter to 80 percent from 87 percent in the year-earlier period. Games Per Console Xbox buyers last quarter purchased more games per console than expected, which means Microsoft is probably losing less money than initially thought. The company hopes to break even or make a small profit on the hardware and make the majority of the profit on game sales, said John O'Rourke, director of Xbox marketing. "We're off to a great start in every region," O'Rourke said in an interview. "We went into this with eyes wide open, knowing we would have a successful launch, but it would be measured in different metrics." Microsoft has scored "major developer coups" by getting Sega Corp., Capcom Co. and Tecmo Ltd. to design Xbox games, he said. Sales in both regions are in line with internal expectations, and Microsoft still expects to sell between 4.5 million and 6 million units by the end of June. Gamers in North America are buying on average 3.9 games for every Xbox sold, O'Rourke said. Microsoft also has been selling more of its own games in the U.S. The company makes about $25 per unit on games it develops itself, compared to $6 to $8 on games that other companies build for the Xbox, analysts said. Miss Target? SoundView Technology Group analyst Mark Specker said the Xbox's performance in the North America is not enough to offset sluggish sales elsewhere. He said he believed the lower-than- expected sales might cause Microsoft to miss its target of selling at least 4.5 million units by the end of the fiscal year, and he predicted Microsoft would be forced to lower Xbox prices. "It's certainly going to tighten the gross margins on the Xbox even more," Specker said in an interview. The analyst says Microsoft could be losing as much as $150 per console. Halo, a shooting game that's one of the best sellers in the U.S., won't be available in Japan until late April. Microsoft and other console makers count on such releases to spur demand for their products. The Xbox entered Japan with about 12 games and Microsoft expects 20 by the end of this month, O'Rourke said. Quote Link to comment Share on other sites More sharing options...
Adrian M Posted April 1, 2002 Share Posted April 1, 2002 The XBOX has sold the same number of consoles in Japan as the Nintendo GAYcube. Pretty damn good for a first console attempt by MICROSOFT. Sales will only increase from here on out. Quote Link to comment Share on other sites More sharing options...
liveinabin Posted April 1, 2002 Share Posted April 1, 2002 Ooh look, a funny name for the gamecube!! Gosh, what fun. How about x-pox or playstation poo hahaaa what fun. (sigh) Quote Link to comment Share on other sites More sharing options...
hedgehog Posted April 1, 2002 Share Posted April 1, 2002 Whats a Gaycube? Is it some newly released system, because your the only person I herd mention it Bill. Quote Link to comment Share on other sites More sharing options...
Anima Fan Posted April 1, 2002 Share Posted April 1, 2002 Yea that is true you know that. Quote Link to comment Share on other sites More sharing options...
hedgehog Posted April 1, 2002 Share Posted April 1, 2002 quote: Originally posted by Izon: Yea that is true you know that. Whats true? Who are you talking to?? Use quotes next time so we will know what your talking about Ok. Quote Link to comment Share on other sites More sharing options...
Adrian M Posted April 1, 2002 Share Posted April 1, 2002 quoteda best babby!![/QB] Apparently you can't even spell the simplest of words correctly. Before you post anything else, I would suggest that you enroll in some remedial English/grammar classes... Quote Link to comment Share on other sites More sharing options...
hedgehog Posted April 1, 2002 Share Posted April 1, 2002 Its a slang word, do you not use slang words or something? What did ya think he was trying to spell? Quote Link to comment Share on other sites More sharing options...
Adrian M Posted April 1, 2002 Share Posted April 1, 2002 quote: Originally posted by hedgehog: Its a slang word, do you not use slang words or something? What did ya think he was trying to spell? Since when is it spelled "babby"? Go back to your remedial classes and learn something for once. Quote Link to comment Share on other sites More sharing options...
Atari Master Posted April 1, 2002 Share Posted April 1, 2002 Woops!!Crap, I type to fast. Quote Link to comment Share on other sites More sharing options...
hedgehog Posted April 1, 2002 Share Posted April 1, 2002 Whoops!! Crap, I read to fast!! [ 04-01-2002: Message edited by: hedgehog ] Quote Link to comment Share on other sites More sharing options...
Atari Master Posted April 1, 2002 Share Posted April 1, 2002 What was that supposed to mean? Quote Link to comment Share on other sites More sharing options...
hedgehog Posted April 1, 2002 Share Posted April 1, 2002 I didnt see th extra B in Baby!!! Quote Link to comment Share on other sites More sharing options...
+Sauron Posted April 2, 2002 Author Share Posted April 2, 2002 Aw, Adrian, did that get under your skin? I'd like to see some proof to your claims that the Xbox is selling as well as the GameCube in Japan. Something tells me you won't be able to find it. Quote Link to comment Share on other sites More sharing options...
goatdan Posted April 2, 2002 Share Posted April 2, 2002 Don't worry, Adrian M isn't the only one too feel this way. Look at what the GameFAQs site has done to commemorate the best gaming system EVER! Check out this review! Kabuki Warriors (Xbox): This has got to be one of the all-time best games I've ever played. I love the graphics, the storyline is quite simply the best I've ever seen, and the incredible control makes it feel like you're not just playing the game; you're living the game. A must buy for anyone who loves video games, and even those that don't! More reviews here -- Game FAQs Quote Link to comment Share on other sites More sharing options...
Atari Master Posted April 2, 2002 Share Posted April 2, 2002 How about the GC Dan?Your not a FanBoy are you? Quote Link to comment Share on other sites More sharing options...
+Sauron Posted April 2, 2002 Author Share Posted April 2, 2002 Isn't it funny how the XBox fanboys have to try so hard to convince everyone that their system is superior? If it was a fraction as good as they say it is, how come it's not selling itself? Considering the amount of advertising M$ has thrown out there, you'd think it would be outselling both the PS2 and GameCube combined. Oh wait, maybe the games have something to do with it.... Quote Link to comment Share on other sites More sharing options...
someguy Posted April 2, 2002 Share Posted April 2, 2002 quoteSales will only increase from here on out. Perhaps, but every article in print or on the net says that the Xbox's sales flatlined in Japan and Europe only two weeks or so into the launches. Quote Link to comment Share on other sites More sharing options...
Lemmi Posted April 2, 2002 Share Posted April 2, 2002 If this keeps up Albert and Alex will have to add a Console wars forum along with an Ebay forum sheesh Quote Link to comment Share on other sites More sharing options...
Albert Posted April 2, 2002 Share Posted April 2, 2002 quote: Originally posted by Lemmi: If this keeps up Albert and Alex will have to add a Console wars forum along with an Ebay forum That certainly isn't going to happen. Please, guys, everyone is going to have differing opinions on what they're favorite console is. There is no need to resort to name calling or personal attacks on anyone to get your point across. If you can't discuss this in a civil manner, then this thread will soon be closed. ..Al Quote Link to comment Share on other sites More sharing options...
hedgehog Posted April 2, 2002 Share Posted April 2, 2002 Uh OH, somebodies in trouble!!! Quote Link to comment Share on other sites More sharing options...
Atari Master Posted April 2, 2002 Share Posted April 2, 2002 The SuxBox.New from ISUCKSOFT.Gamecube is da best babby!! Quote Link to comment Share on other sites More sharing options...
goatdan Posted April 2, 2002 Share Posted April 2, 2002 quoteHow about the GC Dan?Your not a FanBoy are you? GameCube? Bleck. Playstation 2? Bleck. XBox? Bleck. Can't say I'm a fanboy of any of the current consoles. I just thought that GameFAX was extremely funny (as all console wars are) and I thought that I would point it out here because quite honestly, Adrian has brought this upon himself. I need not remind everyone that he has a history of being kicked off of forums for not stopping talking about the XBox. Super Monkey Ball looks entertaining, but I can't play games with the GameCube controller. Dead Or Alive 3 looks great, but nothing that I would spend $300 dollars on. Nothing Playstation related has ever made me really take too much notice, other than a few games for the original. Currently, the Dreamcast, Jaguar, 2600, NES and SNES have me so tied up I'll probably never get a new console. Quote Link to comment Share on other sites More sharing options...
+Sauron Posted April 2, 2002 Author Share Posted April 2, 2002 I'll have to agree with Dan, the DC is probably the best console available on the market. You know, it sure seems to be a pretty hot conversation topic for a dead system... Quote Link to comment Share on other sites More sharing options...
Adrian M Posted April 2, 2002 Share Posted April 2, 2002 quote: Originally posted by GOAT Dan: I need not remind everyone that he has a history of being kicked off of forums for not stopping talking about the XBox. I have a history of being kicked off forums? All I can say is that I've never been kicked off a forum, so I have no idea where you're coming up with that. Quote Link to comment Share on other sites More sharing options...
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