Microsoft Corporation (MSFT) > Articles
bids
15
15
Microsoft Corporation (MSFT)
Europe is key battleground, says Microsoft
Europe is key battleground, says Microsoft
GamesIndustry - December 19, 2007
Submitted by lstormy10 (294) at 3:50PM PST on December 19, 2007
"Microsoft expects to sell more Xbox 360 consoles in Japan in 2008 than it did in 2007, but Europe will be the key battleground."
Discussion - Submit a comment
bids
2lstormy10 posted on Microsoft Corporation (MSFT) at 4:11PM PST on December 20, 2007. RE: Europe is key battleground, says Microsoft@ixaarii,
Sony has had some blunders in the past year when it comes to the European market. This includes, but not limited to: high price (which is a problem they had everywhere), the goat incident, the Resistance church incident, and stupid remarks from employees (which is also a problem they had everywhere).
I agree though that Microsoft has not been doing many special things for Europe as they have done in Japan, but they are tending to at least do most of what they are doing in the U.S. in Europe also. For example, they have brought the video marketplace to Europe now and they continue to pay attention to the sales landscape there. I do think they need a little bit more effort on their part with some special moves on the 360 geared towards winning over gamers in Europe though.[ Oracle ] [ Level 20 ] [ Rank: 294 ]bids
2lstormy10 posted on Microsoft Corporation (MSFT) at 4:06PM PST on December 20, 2007. RE: Europe is key battleground, says Microsoft@apujanata,
The only problem with the appeal of PS3 to casual gamers is that its high price right now is putting a damper on sales to casual gamers who tend to buy and play less titles than "hardcore" gamers and the fact that the Wii has already managed to gain a growing foothold in many parts of Europe. Also, as of now, Sony is still focusing more (advertising, etc.) on capturing the hardcore gamers so that it does not lose them to their main competitor, Microsoft. Compared to the Wii, the quantity of titles that appeal to casual gamers is also much less and a casual gamer would more likely want a larger selection of titles to choose from.
Switching topics. I agree with your comment towards ixaari - Nintendo has an advantage when it comes to first party titles when taken into account all the factors (quantity, quality, actual sales, etc.) over Sony. Also, recent exclusives (including all parties) on the PS3 have underperformed when it comes to sales and sometimes quality. Nintendo has more things going in the first party realm than Sony and Nintendo also has a growing number of second party titles to back it up the first party.[ Oracle ] [ Level 20 ] [ Rank: 294 ]bids
2ixaarii posted on Microsoft Corporation (MSFT) at 3:56PM PST on December 20, 2007. RE: Europe is key battleground, says Microsoft@welshbloke,
"I am not sure what Microsoft can do with its image. After all the things Sony have done to the Europeans it never seems to tarnished its reputation sufficiently to matter."
What things are you referring to about Sony? I can't think of any per se. Later next gen entry & high price are obviously horrible for sales and adoption, but I can't really see them as stains on their reputation. The competition has done great, but the product itself everybody seems to agree is a good product, reliable and with some unique features, MS on the other hand has got the huge stain of hardware failures which I think stopped a lot of people from buying in and I think continues to do. People want a console to play games, not to worry about crashing, noise, or have to take it in for repairs. Also buying a console should be an easy thing, a magical box that just works, not something that you have to worry about getting the one with the falcon chip/hdmi... something I suspect even harder in Europe where due to the slower adoption I'm guessing more of the older models are still in retail channels.
I think ms said so in the past too taht it's shifting focus to Europe, but while for Japan I can put my finger on what they're doing (specific games, pricing...) I can't really see what they're doing to convince people to go away from Sony, something particularly critical to do now as PS3 is starting to get up on it's feet. I'm so very curious how this will play out. Price would be a strong move from MS, but I wouldn't be surprised if Sony at least kept close if that happened.[ Oracle ] [ Level 20 ] [ Rank: 444 ]bids
2apujanata posted on Microsoft Corporation (MSFT) at 3:44PM PST on December 20, 2007. RE: Europe is key battleground, says Microsoft@lstormy10,
IIRC, Singstar (First party) is quite popular in Europe. Also Eyetoy is popular with casual in Europe. They are the reason why I think PS3 S/W has a good chance to get the Europe market (not US and not Japan for those two games). Eye of Judgement flops in Japan, but it is possible that it would be more successfull in Europe, who have the highest penetration (IRRC) of Eyetoy (compared to US and Japan).
@Ixaarii,
I am not saying that PS3 doesn't have good or very good first party, but the total output (quantity x quality) of Sony's First party are not comparable to Nintendo (if you talk about sales #, it is even bigger in Nintendo's favour).
You mentioned 3 to come (1 Team Ico game, GoW3, Heavy Rain). If we add 2 (Hot shot Golf and Gran Turismo), it made them 5. Compare that to 3 already released (Zelda:TP, Super Mario Galaxy, Super Paper Mario) and 3 coming soon (Super Smash Brawl, Mario Kart, Animal Crossing) and you will see the difference in quantity.[ Oracle ] [ Level 30 ] [ Rank: 14935 ]bids
2lstormy10 posted on Microsoft Corporation (MSFT) at 8:39AM PST on December 20, 2007. RE: Europe is key battleground, says Microsoft@apujanata,
I extremely doubt that the PS3 third party games will become interesting to casual gamers compared to Wii's third party. This is because there are not really any third party casual games I can think of coming to the PS3. Even if there were first party casual games coming to the PS3, the casual gamers would still remain more interested in the Wii. This can be seen in how the Xbox 360 has tried to appeal to the casual gamers and has not really made much strides in that category of gamers. I believe the PS3 will be the same about, maybe a bit better than the 360.[ Oracle ] [ Level 20 ] [ Rank: 294 ]bids
2welshbloke posted on Microsoft Corporation (MSFT) at 3:54AM PST on December 20, 2007. RE: Europe is key battleground, says Microsoft@Just_Ben,
Microsoft only need to concentrate on France, Germany and the UK. If they do that and win the market share in those 3 countries then Sony will be in trouble. So whatever they do in Europe those are the big three to tackle. I cannot see them ever winning over the Spanish, I mean they do not even seem to go for the Wii.
I am European (well sort of as the UK is just along for the ride) and my experience is that we are all price sensitive. You only have to look at how well the PS3 is doing now it has dropped to £300 for the basic model. Now if we shave another £80 pounds of the current pro model then I would suggest that would get the interest going.
I am not sure what Microsoft can do with its image. After all the things Sony have done to the Europeans it never seems to tarnished its reputation sufficiently to matter.
Rip off Britain was coined for a reason and it was not because we liked paying more for our goods.[ Oracle ] [ Level 30 ] [ Rank: 60 ]bids
2Just_Ben posted on Microsoft Corporation (MSFT) at 3:12AM PST on December 20, 2007. RE: Europe is key battleground, says Microsoft@welshbloke,
Well GT5 will help the PS3 in Japan. Big time, I would guess. Europe is a big question. The price of the PS3 is in the right ball park. We Europeans are used to such high price devices, and the $ worked in Sonys favor. I don't believe a price drop will help MS outside the U.K. The 360 is doing horrible in the southern European countries. MS needs better game for the market (Singstar, Buzz) but first and most: It needs a better Image.[ Oracle ] [ Level 21 ] [ Rank: 112 ]bids
2welshbloke posted on Microsoft Corporation (MSFT) at 2:33AM PST on December 20, 2007. RE: Europe is key battleground, says MicrosoftMicrosoft have stated this in the past although I have seen nothing to suggest that it is making any attempt to stem the flow of PS3 sales in Europe.
Europe is an interesting clutch of countries to assess. You have countries like Spain who heavily favour the PS3 then you have Germany who have a heavy PC slant.
Although the PS3 is experiencing a good end to a year they needed to and you could say they have done this despite the console not being at the price point to justify its current price. Next year is I think as most of us agree the year the PS3 really needs to perform but I suspect this will also be the year that Microsoft pull a few rabbits out of the hat most noticeable the price. If they can get the standard console down to £199 then that will be a magic number which could easily scupper the PS3 especially as most the top titles are multi console.
I have serious reservations whether MGS4, GT5 and the like are enough to push people in the direction of the PS3 if Microsoft pull a significant price reduction out the bang around Feb/March.[ Oracle ] [ Level 30 ] [ Rank: 60 ]bids
2ixaarii posted on Microsoft Corporation (MSFT) at 1:02AM PST on December 20, 2007. RE: Europe is key battleground, says Microsoft@apujanata,
I can't say I agree with you on Sony first party way below Nintendo first party: i think simply some of the big heavy hitters are not yet out. Personally of all the next gen games I'm expecting the biggest things in quality from some sony 1st party, I don't know if they'll sell, but for me I suspect the next Team Ico game is a must, and for many GoW3 will probably be, and though Heavy Rain isn't technically first party I do believe it's going to get pretty good Sony support with it being exclusive and that's absolutely up there. I'm saying this as a person who's been convinced too: i totally wasn't expecting Sony to have good internal studios, I'm into artwork and my preconception was that it's no way a hardware company will have a focus on artwork and content, but I've seen some of their internal studios and I'm wow-ed. It's just that bigger projects with the polish i saw them give take more time... but I believe they are doing work there through their multiple altrnating studios which I'm going to assume do share some technical resources at least...[ Oracle ] [ Level 20 ] [ Rank: 444 ]bids
2apujanata posted on Microsoft Corporation (MSFT) at 12:03AM PST on December 20, 2007. RE: Europe is key battleground, says Microsoft@lstormy10,
About the Wii's possible 200 USD price when PS3 is 300 USD, I agree with you. However, what is more important is the third party software on Wii.
As you know, everyone know that Sony's first party are way below Nintendo's first party, and Sony's third party are way above Nintendo's third party. IF (a big if) there is no significant increase in quality of Wii's third party in 2008, then there is a slight possibility that PS3's third party are more interesting to many gamers (casual and hardcore alike) compared to Wii's third party.
Last gen, I have PS2 and GCN. I bought GCN for the first party offering, and I bought PS2 for the third party offering. Currently, I am happy with Wii as my one and only "next gen" console. However, I can imagine myself buying PS3 in the future if there are some key game that I like a lot (like Dynasty Tactics) that only show up on PS3 (and maybe X360), but not on Wii. I bought PS2 for FF series (which nowadays I am not too keen on playing, because of limited gametime) and Dynasty Tactics game.
Like you, I doubt Sony will lower PS3 price in the early 2008. But if things are not doing well (for PS3), there is a slight possibility that they will do that around Q3 or Q4 2008.
Summary : Never underestimate PS3. It might seem like a definite "loser" now, but there is always a slight possibility that 2008 might turn things around (althoug I really could not imagine PS3 as #1 console with market share as high as PS2).[ Oracle ] [ Level 30 ] [ Rank: 14935 ]bids
2lstormy10 posted on Microsoft Corporation (MSFT) at 8:17PM PST on December 19, 2007. RE: Europe is key battleground, says Microsoft@apujanata,
Sony does have a strong hold in parts of Europe, so I believe it is very possible that PS3 will pass up the 360, but I doubt that the Wii will have difficulty because of the fact that by the time the PS3 gets down to the equivalent of 300 USD in Europe, the Wii will probably have had a price cut down to somewhere around 200 USD and will have a stronger software line-up. Unless of course, Sony decides they want to take a real hard slam in their pockets and take even more losses on their hardware (very doubtful).[ Oracle ] [ Level 20 ] [ Rank: 294 ]bids
2apujanata posted on Microsoft Corporation (MSFT) at 7:58PM PST on December 19, 2007. RE: Europe is key battleground, says Microsoft@lstormy10,
Since this is a comment by Head of Global Marketing, it is not surprising if he dissed the competition (Wii). Good luck to them trying to maintain their lead on Europe. Even Wii might have difficulty maintaining their lead once PS3 got to the 300 USD (or the Europe equivalent) price level.[ Oracle ] [ Level 30 ] [ Rank: 14935 ]bids
2lstormy10 posted on Microsoft Corporation (MSFT) at 3:56PM PST on December 19, 2007. RE: Europe is key battleground, says MicrosoftAn interesting comment made in this article by the Microsoft employee is that he states that "clearly" third parties have not experienced success on the Wii.
I find this interesting in light of the great success that the third-party title of Guitar Hero III has had. Also combine this with the fact that many of the casual games have done okay and that Ubisoft had some success with the Wii with its launch titles (Red Steel and Raving Rabbids). The larger problem is that third-parties are not producing quality games for the Wii yet.
Back to the Xbox 360, it appears at least that Microsoft understands that it will not be able to even come in second in Japan in the present generation, but that they can try and make sure that they beat at least Sony in both the U.S. and Europe.[ Oracle ] [ Level 20 ] [ Rank: 294 ]bids
15lstormy10 posted on Microsoft Corporation (MSFT) at 3:50PM PST on December 19, 2007. Article: Europe is key battleground, says Microsoft
About Us - The simExchange is the video game stock market and the source
for video game sales forecasts.
2
"What things are you referring to about Sony?"
The classic is that Europe is treated as second best with Sony always willing to delay releases into Europe. That would be the one thing that sticks in my mind.