Microsoft: Europe is key battleground, Sell More Console in 2008 Options

[Xbox-Scene]

Microsoft: Europe is key battleground, Sell More Console in 2008 Posted by XanTium | December 19 20:58 EST | News Category: Xbox360

From gamesindustry.biz: [QUOTE] Microsoft expects to sell more Xbox 360 consoles in Japan in 2008 than it did in 2007, but Europe will be the key battleground. The company told Reuters that recent and upcoming games from popular Japanese designers should help boost sales in Japan where the Xbox 360 lags behind both the PS3 and Wii. "We will sell more consoles next year than this year," said Jeff Bell, head of global marketing for Microsoft's games business. Bell said that the Xbox 360 was strong in Britain and gaining market share in France and Germany, but that sales of the PS3 had been lifted there by recent price cuts. [/QUOTE] Full Story: gamesindustry.biz

[88 Ecko Unltd 88]

Microsoft expects to sell more Xbox 360 consoles in Japan in 2008 than it did in 2007

lol expects that what they always say
wounder why they are changing their minds about Japan to Europe LOL go figure M$

[steveju]

lol expects that what they always say
wounder why they are changing their minds about Japan to Europe LOL go figure M$

Maybe because they said so?

[Swahili]

If they wanna win europe they need to change tactics. They need to level the price for live. Need to open VM in all the countries. Need to widen the game portfolio. And change the way they charge for accessories. And not allow games to be released at a later date then the us counterpart.

I also wonder why the prices are different around europe. I thought we in sweden got shafted and then I went to France...

[Quest]

If they wanna win europe they need to change tactics. They need to level the price for live. Need to open VM in all the countries. Need to widen the game portfolio. And change the way they charge for accessories. And not allow games to be released at a later date then the us counterpart.

I also wonder why the prices are different around europe. I thought we in sweden got shafted and then I went to France...

I totally agree, that's exactly what i wanted to write.
On my last trip to NYC, i bought some Xbox 360™ Rechargeable Battery Packs and a 12+1 month prepaid live card.
The stuff cost me about haft the money that I would have spent in Switzerland.... and to my surprise, the us xbox-live prepaid code worked

[Martinchris23]

Amen to the last two posts. If you want to sell more consoles in Europe, you MUST lower the price to match the US on ALL counts.

It's bad enough when the consoles, accessories, games and DLC (MS points) are all cheaper in the US - let alone the fact that apart from one little promotion in europe, we've had nothing extra.

Tell you what MS, sell the £99 core in the UK and you won't be able to stock the shelves fast enough. With the large range of retail and XBLA games available, the attach rate will be pretty darned healthy too.

[Chancer]

The console price is no worry for me. I think it is cheap for what you get. I just paid £269 for an extra pro with 3 games and a wireless controller thrown in on top.
Most stores are charging that for a new Wii at the moment, as they are in short supply.
I do however have issues with games being released earlier in the US (Blamed on certification or something?) and with the content that is available on XBL . The points should equate to the same price as everyone else pays.
Some work to do for MS yet, but here in the UK, I would imagine they have good sales and will continue to do so.

[1nsan3]

here in the U.S.A. we are the least strict on what can be released, as to other country's, they wont allow games like, Soldier Of Fortune: Payback, because u can blow off limbs. But gears of war is allowed, when you can stomp some guys head into the pavement. I don't get other country's.

Personally I dont care How long the release date is in other country's. Its there issue, not ours. Theres a ton of games, etc, that get released in other country's before us. I don't care, it will eventually get here.

Some people like the xbox 360 and some dont. M$ is trying to jam it down every country's throat. If anyone in Europe wants an xbox 360 they will buy one. If the price is too high well they will either have to wait or pay the price. I bought one before it ever dropped. we all know the price will keep dropping slowly.

So let each country buy what they want to buy. xbox 360 is a bad ass system with alot of perks. But shit, its not god!! some people dont give a rats ass for download content. I sure dont. if i want a movie i will go down the block and rent it. I could have it rented and watched and even brang back before a movie download completes.

[Chancer]

here in the U.S.A. we are the least strict on what can be released, as to other country's, they wont allow games like, Soldier Of Fortune: Payback, because u can blow off limbs. But gears of war is allowed, when you can stomp some guys head into the pavement. I don't get other country's.

Personally I dont care How long the release date is in other country's. Its there issue, not ours. Theres a ton of games, etc, that get released in other country's before us. I don't care, it will eventually get here.

Well as long as you are ok.
I don't think that will be the line of attack Ms will need if they wish to increase business.
They need to level the playing field.
You might not care but in the scheme of things they are looking further than just you

[Devedander]

Aren't prices in some regions (much of Europe) higher because people make more and have more discretionary income? I thought it was like Japan where they charge more because it costs more to do business there (which is why people get paid more) and because you are getting about the same product for hour worked - ie if you work 2 hours in McDonalds here you can get about 1000 XBL points... if you work 2 hours over there doesn't it roughly equate to 1000XBL points?

[Chancer]

Aren't prices in some regions (much of Europe) higher because people make more and have more discretionary income?

Not in the UK. Don't believe these stats on average wages etc. It's bullshit mostly. Guys that live in my area have to have both partners in a relationship working and, sometimes multiple jobs. look at the price of stuff like fuel over here.. it would equate to over $10 for one gallon due to heavy tax burdens.

[Devedander]

Not in the UK. Don't believe these stats on average wages etc. It's bullshit mostly. Guys that live in my area have to have both partners in a relationship working and, sometimes multiple jobs. look at the price of stuff like fuel over here.. it would equate to over $10 for one gallon due to heavy tax burdens.

Most non affluent areas in the US have to have 2 incomes to sustain... even the higher wage homes tend to still have 2 incomes.

I know in my situation we have 2 incomes in my house and besides my full time job I work multiple side jobs... I would hardly say I am living large due to it also...

But really what I meant wasn't that everyone makes more in that you can work part time at McDonals and buy a nice house, I mean I thought it was like you get the same buying power with your money that you do here in terms of compensation.

Example: Secretary here makes $35000 a year and can comfortably afford to purchase a Honda civic for $15000.

In Europe same secretary makes 35000 pounds (which is worth like $70000 US) but can only also afford a civic because it costs 15000 pounds.

One might say she got screwed because a civic that costs $15000 in the US costs twice as much if you convert currency, but in reality, she had the same buying power.

That's how I always thought it worked over there... sure you pay more for something if you convert to the US dollar, but if you convert to the US dollar you also get more per hour for the same job. So it balances out.

While it's changing a lot, a similar thing happens when I go home to China, the average salary is a pittance compared to what we make in the US if you factor in a conversion ratio, but prices for many things are also lower (you can buy a DVD in walmart in China for $2 that would cost $15 here completely legal too) so while one would say people in China get paid squat, they can afford a similar level of living as we do in the US.

That is all changing now very much in China but the ideology is what I am talking about.

Isn't that kind of how it works? Isn't it basically that however much work a 1000 point XBL card represents here (x hours at a normal job) it represents the same there?

If it is then it would mean that accounting for the conversion ratio of money would give you guys a huge advantage... you would essentially pay half what we do (ie my 2 hours working at McDonalds gets me 1000XBL points but your 2 hours working at MCD over there gets you 2000XBL points).

[Chancer]

In Europe same secretary makes 35000 pounds

Over here a secretary would make £12000 to £15000. No way could they buy a £15000 car.
Top notch earners over here earn £35,000 up in the north where I am from.
As a fully qualified Electronics Technician over here, I could make around £16000 to £19000 per year working for someone.

2 hours working at Maccy Ds over here would earn £11.38.

[twistedsymphony]

Devedander, economics aren't that simple.

even across the US "cost of living" and "average wages" is dramatically different.

For instance my home in NH cost $220,000 but a similar home in CA costs 1,200,000 but someone living in that area would also make substantially more money than I do.

Food, Gas, and other consumables are typically more expensive there but items such as DVDs, Games and console are not.... the CA people pay just as much as those in NH.

Similarly you can expect that Europe would have consistent wages throughout, or that they make that much more than Americans. From those I've talked to who work in similar fields to my own... they make LESS after currency conversion for similar work...

To use your example your hour would buy 1000 points, their hour would only buy 600 or 800 at the same price, but then they're being over charged so they can only actually buy 300 or 400 for an hours worth of work.

It comes down to this: People will sell products at the highest price they think they can get away with... Games in the USA cost $60 not because that's what they're "worth" but thats what some bean counter determined was the highest price they could charge and still sell them in large quantities.

Europe has a history of being overcharged for Gaming products, as a result the "bean counters" decided that they can get away with charging more ... so they do.

There are some other factors such as import taxes which are quite hefty in Europe and get incorporated into the final price of the product as well as sales taxes which are also quite hefty in comparison to the relatively small state sales taxes in the USA.

----------------------------------------

As for why Europe gets releases much later than the US... for one it has a lot to do with the BBFC which unlike the ESRB in the USA is most often the biggest bottleneck to release dates in the UK, not just because their process for review takes nearly 5 times as long but they're much more stringent meaning that game and movie publisher need to go back and revise some content before a release can be made.

On top of that since they like to release through all of Europe simultaneously they often need to perform localization in the forum of translating menus and other texts, or in extreme cases voice acting in video clips and or sub titles.

Not to mention Europe uses the PAL video standard so games need to be programmed to output at 50Hz and a slightly different resolution and get fully tested for those video types.

... it's not just as simple as shipping the discs to the other side of the Atlantic.

In most cases where there IS a simultaneous release, it's because they DELAYED the US or Japanese release until the process of getting Europe ready was complete.

[Devedander]

Over here a secretary would make £12000 to £15000. No way could they buy a £15000 car.
Top notch earners over here earn £35,000 up in the north where I am from.
As a fully qualified Electronics Technician over here, I could make around £16000 to £19000 per year working for someone.

2 hours working at Maccy Ds over here would earn £11.38.

2 Hours in MCD here would make you about $15 in California... I think we have higher minimum wage than most also...

11.38 pounds is roughly $24 or so right? So in that one example alone it would seem you would have unfairly more buying power... however in the other job markets it might be very different. That is not counting intangibles... every European country I have visited has awesome health care and vacation packages for the lowliest employees even... In Poland I think even base MCD workers get 2 months of vacation or something a year... over here it can take years to get over 1 week and many jobs simply have none... That all factors into buying power...

Another thing you mentioned was that gas was priced much higher per gallon over there than here... but don't people tend to drive smaller more fuel efficient cars and go shorter distances on average? In the US we tend to spread out a lot, so while prices are higher, again I would think that in terms of paying for average commute to work even with gas being much higher priced, you would still work the same hours at a similar job to cover your average commute per paycheck.

Again, all over simplified but the general idea...

Also I oversimplified my economics... I realize some things change cost due to region and some things are more or less set... and I know some places like Australia just get ripped the F off on electronics... but I had always felt that in Europe (well in many parts, especially those still based on pounds sterling which) things kind of worked out in terms of buying power... I know it's not the same across the country... my GF is from Poland and when we visit there I can see economic differences.

But in your example of NH vs California... cost of living is higher, and wages are higher (ha... well not my wage! ) so while in NH your 200k house would seem very affordable you would have little disposable income since wages might be lower... my higher wage would be eaten up by my expensive house... so while I make $20 an hour for a job you might make $10 for, yet we both pay $20 for the same number of XBL points, neither of us are getting a deal or getting ripped off... it might seem like you have to work twice as long to get it, but your lower expenses means 70% of your $10 can go towards leisure purchases while I can only put 40% of my wages towards leisure purchases... hence we really are paying the same in value (ie how much my time/life is worth) even though it would seem we are not.

Anyhow, it's all very complicated but that was my attempt at simplifying what I understood to be the relationship of economies... It requires a lot of generalizing and may be completely off base but I still get the feeling it's not as simple as 10 pounds is worth $20 so an item that costs us $20 should cost you 10 pounds... after all the truck drivers, internet companies, gas stations, taxes and whatever support infrastructure must be factored into the costs... and they may cost more over there... yet the money you pay extra for them comes back to you in wages... I dunnno now I am confusing myself...

This post has been edited by Devedander: Dec 20 2007, 11:18 PM