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PS3 wins a battle, Xbox 360 the war, Greenberg believes
BY Rain Anderson Oct. 15th, 2009 More on:

Microsoft’s Aaron Greenberg is not swayed by Sony’s recent price cut and the introduction of the PS3 Slim, he told GameInformer. While he does fully expect Sony to be on top when it comes to units sold in September (NPD data is expected to be released on Monday), he’s confident that at the end of the year, and this generation, Microsoft will be on top.

“This is frankly not a real surprise to us or the analysts that follow this industry, as it is typical to see a short term bump following the introduction of new hardware and pricing into the marketplace,” Greenberg said. “What I can tell you is we remain confident that Xbox 360 will not only outsell PS3 for the full calendar year, but for this entire generation … I actually think the story here is about much more than just hardware sales. It’s about the entire ecosystem and investing in the future; something we are very focused on. There is also the whole financial side of the equation that people rarely seem to pay attention to. Sony, for example, has publicly noted that they lose money on every console they sell and with the price cut, they’re now losing even more money – so even with the PS3 in the market today at $299, you have to question if their business model is sustainable.”

Greenberg believes Microsoft has “really diversified the business model and the economics of the industry” and that it’s not just about the hardware anymore, but also software and services, “These multiple revenue streams provide not only economies of scale for us and our partners, but award us the benefit of having a profitable business, which in turn allows us to continually invest in the future and remain focused on delivering new experiences and expanding our audience.”

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    1. Nico
      October 15th, 2009
      at 6:11 pm

      Sony, for example, has publicly noted that they lose money on every console (..) you have to question if their business model is sustainable.

      Yeah Microsoft, because you don’t have a past and you are and always and still selling with a different strategy than this one…

      the question Microsoft sides should think of is: how much money 360 Owners will still put on the 360 side… Now that I own both consoles (and a Wii), i don’t see that many game or services i will put money on in the next year to come on 360’s side… The last thig I put money for was taking a gold account (that i will not renew) for Netflix uses… some good exclusive games on the console would be a nice thing to start to think of maybe…

        Reply
      Bob
      October 15th, 2009
      at 7:10 pm

      They don’t have Japan, where neck and neck in the EU before the price drop and now its looking like a fight in the States, how is MS claiming that they’ll win the war? By announcing the next Xbox and overstating their #2 position as #1 over the PS3?

        Reply
      Bob
      October 15th, 2009
      at 7:12 pm

      More concerned about the damage they’d do the indusrty by moving on to the next thing when no one’s really got a handle on current tech. haven’t touched the mellow stage. Not that I think there is one.

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