GFY's Favorite Prize Just Got Cheaper - GoFuckYourself.com

candyflip · 03-30-2004, 03:01 PM

Microsoft (MSFT) might have been forced Monday to announce another price cut on its money-losing Xbox (news - web sites) video game console - sooner than planned.

The company had been expected to lower Xbox's price about the time of the E3 gaming conference in Los Angeles in mid-May.

But Friday, Piper Jaffray analyst Tony Gikas issued a research note predicting the price cut would happen within days. Word spread among video game enthusiasts over the weekend, forcing Microsoft's hand.

Because prospective buyers were likely to wait for the price cut, Microsoft was smart to make the cut immediately, says tech analyst Matt Rosoff of research firm Directions on Microsoft.

Monday, Microsoft said a $30 price cut to $149 would take effect Tuesday. The company hopes to trigger the same surge rival Nintendo (news - web sites) enjoyed when it slashed the price of its GameCube console last fall. GameCube has since supplanted Xbox for second place in worldwide shipments.

"They had to make this price cut to make Xbox competitive," Rosoff says. "This probably isn't the last price cut we'll see."

Microsoft launched Xbox in November 2001 at $299, optimistic that it could make GameCube irrelevant and challenge Sony's PlayStation 2 (news - web sites). Microsoft continues to lose money on each Xbox sold, but it aims to profit from game sales and subscriptions to its Xbox Live online gaming service.

But GameCube has proved resilient. Nintendo cut its price to $99 from $149 last September and has worked overtime to keep up with demand. By February, nearly half of U.S. retail locations were out of stock, and Nintendo's North American warehouse was empty.

Nintendo has sold more than 2.5 million GameCubes since September. As the only console priced under $100, "demand remains very high," says Beth Llewelyn at Nintendo of America.

PlayStation 2 has continued to outsell Xbox 5 to 1 in the $8 billion gaming console market. Scrambling to close the gap, Xbox has generated most of the $1.8 billion in losses Microsoft reported in its entertainment division for fiscal 2002 and 2003.

But Microsoft isn't ready to throw in the towel against Sony, either. Last week, it announced plans to introduce a new way for developers to create Xbox games that can be easily converted into PC games. The idea is to spur creation of more Xbox games by giving game developers a way to spread costs, which can run as high as $10 million to develop a hot title.

Also, Microsoft has hired music star Sean "P. Diddy" Combs to sing Xbox's praises. "I love playing Xbox games and believe that the system's cultural influence as a social entertainment brand has only just begun," Combs says in promotional materials.

Edguy! · 03-30-2004, 03:02 PM

P Diddy is a cock 'cultural influence' LMAO

ace0r · 03-30-2004, 03:09 PM

Quote:

Originally posted by Edguy!
P Diddy is a cock 'cultural influence' LMAO

he loves the cock

ace0r · 03-30-2004, 03:10 PM

double post.

dunefield · 03-30-2004, 03:21 PM

XBOX SUCKS!!!

good to see Nintendo on the rise again...

myjah · 03-30-2004, 03:22 PM

aw, how sad. microsoft losing money

Doctor Dre · 03-30-2004, 03:26 PM

Microsoft is loosing money and they hire p diddy ??? P diddy went from 10 million to 1 million a year as producer ... wrong guy !

llabtaem · 03-30-2004, 03:27 PM

Quote:

Originally posted by ace0r
he loves the cock

That is fucking classic!

llabtaem · 03-30-2004, 03:28 PM

Quote:

Originally posted by ace0r
he loves the cock

That is fucking classic

Rictor · 03-30-2004, 03:31 PM

Wow, it's cheaper than ever to hold a GFY contest now!

candyflip · 03-30-2004, 03:31 PM

Quote:

Originally posted by myjah
aw, how sad. microsoft losing money

It's common knowledge that Microsoft, Sony and Nintendo ALL LOSE MONEY on their consoles. The plan is to get them in the hands of the consumer and make the money off of the software.

Rictor · 03-30-2004, 03:32 PM

Quote:

Originally posted by candyflip

It's common knowledge that Microsoft, Sony and Nintendo ALL LOSE MONEY on their consoles. The plan is to get them in the hands of the consumer and make the money off of the software.

Yah, and they get to claim that loss they take on the consoles as a nice big tax break. They could give the damn things away free and probably still make a huge profit.

exspamr · 03-30-2004, 03:41 PM

interesting... im not buyin one, i still only have my ps1 and 99% of the time its not hooked up... im bad with games and ill waste too much time on them if i allow myself to have them accessible

03-30-2004, 03:01 PM	#1
candyflip Carpe Visio Industry Role: Join Date: Jul 2002 Location: New York Posts: 43,064	GFY's Favorite Prize Just Got Cheaper Microsoft (MSFT) might have been forced Monday to announce another price cut on its money-losing Xbox (news - web sites) video game console - sooner than planned. The company had been expected to lower Xbox's price about the time of the E3 gaming conference in Los Angeles in mid-May. But Friday, Piper Jaffray analyst Tony Gikas issued a research note predicting the price cut would happen within days. Word spread among video game enthusiasts over the weekend, forcing Microsoft's hand. Because prospective buyers were likely to wait for the price cut, Microsoft was smart to make the cut immediately, says tech analyst Matt Rosoff of research firm Directions on Microsoft. Monday, Microsoft said a $30 price cut to $149 would take effect Tuesday. The company hopes to trigger the same surge rival Nintendo (news - web sites) enjoyed when it slashed the price of its GameCube console last fall. GameCube has since supplanted Xbox for second place in worldwide shipments. "They had to make this price cut to make Xbox competitive," Rosoff says. "This probably isn't the last price cut we'll see." Microsoft launched Xbox in November 2001 at $299, optimistic that it could make GameCube irrelevant and challenge Sony's PlayStation 2 (news - web sites). Microsoft continues to lose money on each Xbox sold, but it aims to profit from game sales and subscriptions to its Xbox Live online gaming service. But GameCube has proved resilient. Nintendo cut its price to $99 from $149 last September and has worked overtime to keep up with demand. By February, nearly half of U.S. retail locations were out of stock, and Nintendo's North American warehouse was empty. Nintendo has sold more than 2.5 million GameCubes since September. As the only console priced under $100, "demand remains very high," says Beth Llewelyn at Nintendo of America. PlayStation 2 has continued to outsell Xbox 5 to 1 in the $8 billion gaming console market. Scrambling to close the gap, Xbox has generated most of the $1.8 billion in losses Microsoft reported in its entertainment division for fiscal 2002 and 2003. But Microsoft isn't ready to throw in the towel against Sony, either. Last week, it announced plans to introduce a new way for developers to create Xbox games that can be easily converted into PC games. The idea is to spur creation of more Xbox games by giving game developers a way to spread costs, which can run as high as $10 million to develop a hot title. Also, Microsoft has hired music star Sean "P. Diddy" Combs to sing Xbox's praises. "I love playing Xbox games and believe that the system's cultural influence as a social entertainment brand has only just begun," Combs says in promotional materials. __________________ Spend you some brain. Email Me

03-30-2004, 03:02 PM	#2
Edguy! Confirmed User Join Date: Mar 2004 Posts: 1,126	P Diddy is a cock 'cultural influence' LMAO __________________ porndollar.com

03-30-2004, 03:21 PM	#5
dunefield www.barely18movies.com Join Date: Feb 2003 Location: Melbourne, Australia Posts: 10,920	XBOX SUCKS!!! good to see Nintendo on the rise again... __________________

03-30-2004, 03:22 PM	#6
myjah Back in the harbor Industry Role: Join Date: Sep 2003 Posts: 11,482	aw, how sad. microsoft losing money __________________ VP of Marketing AVN Media Network Skype: AVNJill [email protected]

03-30-2004, 03:10 PM	#4
ace0r Confirmed User Industry Role: Join Date: Feb 2001 Location: Calabasa, CA & Chicago, IL Posts: 1,410	double post.

03-30-2004, 03:31 PM	#10
Rictor Old Timer Industry Role: Join Date: Jan 2001 Location: Indianapolis Posts: 12,208	Wow, it's cheaper than ever to hold a GFY contest now!

03-30-2004, 03:41 PM	#13
exspamr Registered User Join Date: Dec 2002 Posts: 1,427	interesting... im not buyin one, i still only have my ps1 and 99% of the time its not hooked up... im bad with games and ill waste too much time on them if i allow myself to have them accessible