Microsoft's PR announcement is kind of silly

[DracIsBack]

You know, I used to hate Microsoft. but in watching the company personally and professionally over the years, I've learned to admire certain aspects of the company. They are like no other when it comes to long-term strategy and planning. When they get their sites on something, they fight like tooth and nail to get it.

 

I can think of no other company that would be ballsy (or financially able to) jump into the video game market against established competitors with a plan to hemmorage money on the first console, break even on the second and excel on the third.

 

They also know how to work the media and influence the right influencers. in the last generation, the PS2 clobbered everything out there including the XBox. it was the number one system with the XBox a very, very distant second and the GameCube a close third. GameCube and PS2 both brought in billions in profits while XBox bled money endlessly. Yet that bled money bought a fortune in PR and perception as it gave the impression of Xbox being a lot closer to PS2 in terms of marketshare than it was. Games, store space, advertising, consumer perception -- you'd swear the XBox was many times bigger than it actually was. Absolutely brilliant.

 

For all its faults with quality, the XBox 360 has a killer library of games. It has a killer live setup. It's a hip console. Once they get the bugs worked out with failures (I have four friends with bricked XBox 360s), I'm all over it like a wet shirt.

 

So with all of these strengths, I'm looking at today's Microsoft announcement and thinking ... "guys, this smacks of desperation, a little." I get the importance of spin (everyone does it, especially MS's competitors) but this is a little too much.

 

 

 

Xbox 360 First Gaming System to Reach 10 Million in U.S. Console Sales This Generation

<H2 class=subtitle>Xbox LIVE tops 12 million members globally as Xbox 360 console sales hit more than 19 million worldwide.</H2>REDMOND, Wash. — May 14, 2008 — Microsoft Corp. today announced that the Xbox 360 video game and entertainment system has sold over 10 million units in the U.S., making it the first current-generation gaming console to break the 10 million mark in the U.S. The U.S. install base contributes to global sales of over 19 million.

 

“This year will be the largest in the history of the video game industry, with Xbox 360 leading the charge in the U.S. and abroad,” said Don Mattrick, senior vice president of the Interactive Entertainment Business in the Entertainment and Devices Division at Microsoft. “History has shown us that the first company to reach 10 million in console sales wins the generation battle. We are uniquely positioned to set a new benchmark for the industry.”

 

This announcement comes on the heels of one of the biggest entertainment launches in history, “Grand Theft Auto IV,” on April 29, 2008. Gamers eager to experience “Grand Theft Auto IV” online helped boost Xbox LIVE global membership to over 12 million this month. Fueled by an unparalleled combination of access to friends and family, the best online gaming features, and the best entertainment content, the Xbox LIVE service has doubled in membership in only one year’s time.

 

“Reaching an installed base of 10 million consoles in the U.S. is a significant achievement and an essential milestone on the road to market leadership,” said Billy Pidgeon, research manager at IDC. “Perhaps more important is the Xbox 360 worldwide online base — 12 million Xbox LIVE gamers is the largest community in the connected console games sector, which represents the greatest growth opportunity in the console market and where Microsoft has been the leader for two generations.”

 

Xbox 360 leads with the industry’s highest software attach rate, more than any other console this generation, and is home to the best-selling games. With the launch of “Grand Theft Auto IV” in April, Xbox 360 is now the home to more than 16 platinum titles that have sold through 1 million units or more, including hits such as “Halo 3,” “Madden NFL 07” and “Madden NFL 08,” “Gears of War,” “Guitar Hero II” and “Guitar Hero III: Legends of Rock,” and “Call of Duty^® 2,” Call of Duty 3” and “Call of Duty 4: Modern Warfare,” giving Xbox 360 two times more platinum-selling titles than the Wii and a 16:2 lead over the PlayStation 3 in game titles topping one million in sales. Games not only sell better on the Xbox 360, they play better, too: Xbox 360 has 91 titles with a Metacritic review score of 80 or higher, compared with just 22 titles for Wii and 50 titles for PlayStation 3.

 

About Xbox 360

 

Xbox 360 is a superior video game and entertainment system delivering the best games, unique entertainment features and a unified online gaming network that revolve around gamers. Xbox 360 has a portfolio of nearly 400 games in 37 countries. More information can be found online at http://www.xbox.com/xbox360.

 

About Xbox LIVE

 

Xbox LIVE is the first and most comprehensive unified online entertainment network seamlessly integrated throughout the entire console experience, making it easy for people to find the friends, games and entertainment they want from the moment they power on their Xbox 360 system. Xbox LIVE connects more than 12 million of members across 37 countries to enjoy hundreds of multiplayer games, downloadable games via Xbox LIVE Arcade, free and premium playable game demos, music videos, TV shows and movies in the United States as well as new game levels, characters and vehicles for all their favorite retail games. More information can be found online at http://www.xbox.com/en-us/live.

 

About Microsoft

 

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

 

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at http://www.microsoft.com/presspass on Microsoft’s corporate information pages. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at http://www.microsoft.com/presspass/contactpr.mspx.

 

 

Xbox 360 First Gaming System to Reach 10 Million in U.S. Console Sales This Generation

 

Great for them. A nice milestone to hit. Did it faster than the first XBox, if I recall which is growth. Also great for them.

 

But, they had a year head start on the competition. The Wii, which came out a year later is within a nose of of also hitting that goal in the US and has been cleaning the 360's clock in unit sales every month just about. The PS3 has recovered from its own issues and also being a fierce competitor.

 

Then there's the whole issue of the world being a big, big, big place. On a global basis, they're five million units BEHIND the Wii, despite coming out a year earlier. PS3 is also gaining strength elsewhere. But that's spin and I get it. Then, however, they jump to this crazy statement:

 

“History has shown us that the first company to reach 10 million in console sales wins the generation battle. We are uniquely positioned to set a new benchmark for the industry.”

 

This one made me howl with laughter and smacked of "Nintendo's been kicking our ass every month and Sony has been coming out of nowhere and we're terrified of what the competition is going to do".

 

I have no doubt that any of the consoles could win this war at this stage. This is not like the previous two generations but more akin to the SNES-Genesis battles of the early 1990s with fierce competitors going at it - only this time there are three of them fighting it out.

 

- Microsoft, who has a huge war chest, a whole back end experience and a determination to win, no matter what the cost.

- Sony, the previous leader of two generations, an enormous brand equity and a built in Blu-Ray player; and

- Nintendo, the company who took their primary strength of fun games and applied it to a killer blue-ocean strategy while being written off by their competitors.

 

All three have been investigated for illegal monopolistic practices and all three know how to play hard ball.

 

Which makes such a statement seem all the more weak and silly coming from Microsoft who KNOWS how to compete.

 

At least the games argument didn't smack of desperation, though there is obviously some spin there too.

 

Cmon Microsoft ... you can do better than this!

[Tempest]

Welcome to the world of PR, propaganda, and spin.

 

But seriously, other than a few fan boys, does anyone really care about these announcements? I think most people have picked which console they're going to support, and things like this aren't going to change that. Maybe it makes the investors feel all warm and fuzzy?

 

I'd love to see Atari's press release about 2600 Pac-Man. Over 2 Million cartridges Shipped

 

Tempest

[DracIsBack]

But seriously, other than a few fan boys, does anyone really care about these announcements? I think most people have picked which console they're going to support, and things like this aren't going to change that. Maybe it makes the investors feel all warm and fuzzy?

 

I think they push more to get good PR, investor hype and to win over ignorant consumers. But that only works if the reporters take your spin in reporting.

 

In most cases, this article seems to have backfired with most outlets honing in on the fact that it is just spin and pointing out the flaws in their logic.

 

And to be honest, usually Microsoft's PR group is a bit slicker and more skilled than this.

 

Reuters gave them the headline they wanted: "Xbox 360 sales surpass Wii, PS3" but most of the rest of the headlines are "be don't buy your PR hype" so far.

[DragonmasterDan]

You know, I used to hate Microsoft. but in watching the company personally and professionally over the years, I've learned to admire certain aspects of the company. They are like no other when it comes to long-term strategy and planning. When they get their sites on something, they fight like tooth and nail to get it.

 

I can think of no other company that would be ballsy (or financially able to) jump into the video game market against established competitors with a plan to hemmorage money on the first console, break even on the second and excel on the third.

 

They also know how to work the media and influence the right influencers. in the last generation, the PS2 clobbered everything out there including the XBox. it was the number one system with the XBox a very, very distant second and the GameCube a close third. GameCube and PS2 both brought in billions in profits while XBox bled money endlessly. Yet that bled money bought a fortune in PR and perception as it gave the impression of Xbox being a lot closer to PS2 in terms of marketshare than it was. Games, store space, advertising, consumer perception -- you'd swear the XBox was many times bigger than it actually was. Absolutely brilliant.

 

For all its faults with quality, the XBox 360 has a killer library of games. It has a killer live setup. It's a hip console. Once they get the bugs worked out with failures (I have four friends with bricked XBox 360s), I'm all over it like a wet shirt.

 

So with all of these strengths, I'm looking at today's Microsoft announcement and thinking ... "guys, this smacks of desperation, a little." I get the importance of spin (everyone does it, especially MS's competitors) but this is a little too much.

 

 

 

Xbox 360 First Gaming System to Reach 10 Million in U.S. Console Sales This Generation

<H2 class=subtitle>Xbox LIVE tops 12 million members globally as Xbox 360 console sales hit more than 19 million worldwide.</H2>REDMOND, Wash. — May 14, 2008 — Microsoft Corp. today announced that the Xbox 360 video game and entertainment system has sold over 10 million units in the U.S., making it the first current-generation gaming console to break the 10 million mark in the U.S. The U.S. install base contributes to global sales of over 19 million.

 

“This year will be the largest in the history of the video game industry, with Xbox 360 leading the charge in the U.S. and abroad,” said Don Mattrick, senior vice president of the Interactive Entertainment Business in the Entertainment and Devices Division at Microsoft. “History has shown us that the first company to reach 10 million in console sales wins the generation battle. We are uniquely positioned to set a new benchmark for the industry.”

 

This announcement comes on the heels of one of the biggest entertainment launches in history, “Grand Theft Auto IV,” on April 29, 2008. Gamers eager to experience “Grand Theft Auto IV” online helped boost Xbox LIVE global membership to over 12 million this month. Fueled by an unparalleled combination of access to friends and family, the best online gaming features, and the best entertainment content, the Xbox LIVE service has doubled in membership in only one year’s time.

 

“Reaching an installed base of 10 million consoles in the U.S. is a significant achievement and an essential milestone on the road to market leadership,” said Billy Pidgeon, research manager at IDC. “Perhaps more important is the Xbox 360 worldwide online base — 12 million Xbox LIVE gamers is the largest community in the connected console games sector, which represents the greatest growth opportunity in the console market and where Microsoft has been the leader for two generations.”

 

Xbox 360 leads with the industry’s highest software attach rate, more than any other console this generation, and is home to the best-selling games. With the launch of “Grand Theft Auto IV” in April, Xbox 360 is now the home to more than 16 platinum titles that have sold through 1 million units or more, including hits such as “Halo 3,” “Madden NFL 07” and “Madden NFL 08,” “Gears of War,” “Guitar Hero II” and “Guitar Hero III: Legends of Rock,” and “Call of Duty^® 2,” Call of Duty 3” and “Call of Duty 4: Modern Warfare,” giving Xbox 360 two times more platinum-selling titles than the Wii and a 16:2 lead over the PlayStation 3 in game titles topping one million in sales. Games not only sell better on the Xbox 360, they play better, too: Xbox 360 has 91 titles with a Metacritic review score of 80 or higher, compared with just 22 titles for Wii and 50 titles for PlayStation 3.

 

About Xbox 360

 

Xbox 360 is a superior video game and entertainment system delivering the best games, unique entertainment features and a unified online gaming network that revolve around gamers. Xbox 360 has a portfolio of nearly 400 games in 37 countries. More information can be found online at http://www.xbox.com/xbox360.

 

About Xbox LIVE

 

Xbox LIVE is the first and most comprehensive unified online entertainment network seamlessly integrated throughout the entire console experience, making it easy for people to find the friends, games and entertainment they want from the moment they power on their Xbox 360 system. Xbox LIVE connects more than 12 million of members across 37 countries to enjoy hundreds of multiplayer games, downloadable games via Xbox LIVE Arcade, free and premium playable game demos, music videos, TV shows and movies in the United States as well as new game levels, characters and vehicles for all their favorite retail games. More information can be found online at http://www.xbox.com/en-us/live.

 

About Microsoft

 

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

 

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at http://www.microsoft.com/presspass on Microsoft’s corporate information pages. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at http://www.microsoft.com/presspass/contactpr.mspx.

 

 

Xbox 360 First Gaming System to Reach 10 Million in U.S. Console Sales This Generation

 

Great for them. A nice milestone to hit. Did it faster than the first XBox, if I recall which is growth. Also great for them.

 

But, they had a year head start on the competition. The Wii, which came out a year later is within a nose of of also hitting that goal in the US and has been cleaning the 360's clock in unit sales every month just about. The PS3 has recovered from its own issues and also being a fierce competitor.

 

Then there's the whole issue of the world being a big, big, big place. On a global basis, they're five million units BEHIND the Wii, despite coming out a year earlier. PS3 is also gaining strength elsewhere. But that's spin and I get it. Then, however, they jump to this crazy statement:

 

“History has shown us that the first company to reach 10 million in console sales wins the generation battle. We are uniquely positioned to set a new benchmark for the industry.”

 

This one made me howl with laughter and smacked of "Nintendo's been kicking our ass every month and Sony has been coming out of nowhere and we're terrified of what the competition is going to do".

 

I have no doubt that any of the consoles could win this war at this stage. This is not like the previous two generations but more akin to the SNES-Genesis battles of the early 1990s with fierce competitors going at it - only this time there are three of them fighting it out.

 

- Microsoft, who has a huge war chest, a whole back end experience and a determination to win, no matter what the cost.

- Sony, the previous leader of two generations, an enormous brand equity and a built in Blu-Ray player; and

- Nintendo, the company who took their primary strength of fun games and applied it to a killer blue-ocean strategy while being written off by their competitors.

 

All three have been investigated for illegal monopolistic practices and all three know how to play hard ball.

 

Which makes such a statement seem all the more weak and silly coming from Microsoft who KNOWS how to compete.

 

At least the games argument didn't smack of desperation, though there is obviously some spin there too.

 

Cmon Microsoft ... you can do better than this!

 

 

They have a history of using out of context and outright incorrect statements in press releases so that major news outlets who fail to do any sort of fact checking carry their bogus stories which they hope will be accepted as fact by consumers and shareholders alike.

 

Microsoft famously put out documents touting the technical specifications of the original Xbox ahead of the other two platforms of the time, the Game Cube and PS2. Microsoft just guessed what the Game Cube's clock speed was and listed it as about 95 MHZ slower than it actually was. They later admitted it was a mistake.

 

They then were listing refurbished systems and store kiosks as part of their "shipped" numbers in various releases. Meaning these were systems that were sold twice in the case of refurbs, or systems that weren't actually sold in the case of store kiosks. Again, it's VERY convenient that these mistakes are always ones to make their numbers look better.

[Bilnick]

Of course it is spin. Anyone who reads this site can see right through it.

 

Hype sells systems though, look at the Wii. I bet there are way more articles on the Wii in the mainstream media, and I bet if you asked the average person to name a videogame system they would say the Wii. how many articles have we seen about <insert random non gamer group here> organizing Wii Sports Bowling leagues??? That kind of publicity is priceless.

 

My wife, who has almost zero interest in videogaming asked me about Wii Fit the other day. Surprised me.

 

There probably will not be a dominant system this generation. I would be surprised if any of the three controlled more than 40% of the market. You wouldn't know it by reading the mainstream press though, they make it sound as if the Wii is the dominant system.

[DracIsBack]

Of course it is spin. Anyone who reads this site can see right through it.

 

But not very effective compared to usual. Usually, MSO, Apple or others are capable of spinning and taking a lot of media along with them, reprinting.

 

This article has largely backfired on Microsoft. Youch!