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Console makers in trouble this coming Christmas, says Today

Posted Jul 27, 2007 at 10:45PM EST by QJ Staff

Listed in: PS3, Wii, Xbox 360 Tags: Best Buy, eBay, Ethernet, Microsoft, Ring of Death, Sony

It's common knowledge that the Christmas holidays are very important for boosting market sales. This also applies to the gaming industry, as Paul Hochman of Today notes. He writes that the big three console makers will be having some problems this holiday season, facing their "biggest shakeup in years," due to some deficiencies on each console maker's part.

For the Xbox 360, Hochman cites its persistent problem of product malfunctions - the now-infamous Red Ring of Death - something that Microsoft is scrambling to fix with an allocated US$ 1 billion budget and an extended 3-year-warranty. Microsoft also advised customers to wait at least one week while their console is being repaired.

In Nintendo Wii's case, all seems peachy for the console. However, there's one spot that Nintendo hasn't managed to fully fix, and that's undersupply.

With an almost chronic case of undersupply, the quest for a Nintendo Wii usually involves the following inconveniences: queuing up in long lines in Best Buy once a fresh stock becomes available, getting overpriced Wiis on eBay, and limiting the allowance of sales to one console per buying group. This problem has prompted an apology from Nintendo's CEO Satoru Iwata, who promised to use Nintendo's Mario video game factory for Wii production.

Finally, Hochman cited the PS3's current underperformance, saying that Sony's PS3 trailed behind and sold only about 90,000 units in June, compared to Xbox 360's 198,000 and the Wii's strong 435,000. He also mentioned that Sony loses about US$ 300 every time a PS3 console is sold, with the total estimated loss of US$ 2 billion for the fiscal year that ended in March.

For those wondering why Sony is willing to take such losses, there is a reason behind that: According to Hochman, when Sony's Blu-ray wins the format wars and becomes the sought-after format for home viewing - partly with the help of the PS3 - then the PS3 losses will be more than worth it.

Despite these problems, we all know that true gamers couldn't be deterred from buying their favorite consoles by these 'minor' details. To help people decide on which one to buy, Hochman enumerated the good in each console:

Xbox 360

Has some of the most popular game series, which include Madden, Grand Theft Auto, and Halo
Can connect to the internet using Wi-Fi, and also has a built-in ethernet port
Plays DVDs, CDs, and can work with your personal MP3 music collection.

Wii

Innovative control scheme
Emphasis on party and casual gaming
The undersupply is an indicator on how well the Ninty console is doing

PS3

State-of-the-art hardware
Built-in ultra high definition Blu-ray player
Above-average networking capability
60GB unit now only US$ 499

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the hell you on about bob? whats the premium and core got to do with wifi? neither of them come with it, you still need to get the wifi adaptor for either of em, and its cheaper to just get a wireless bridge instead, does the same thing, oh and why do they always use that same picture with the stretched really tall 360? i have all 3 consoles next to my tellybox and i can tell you the ps3 is the tallest deepest and fattest of them all... thank god its so quiet, the 360's roaring dvd drive does my nut! godbless having a big ass sound system!

# What are you talking about? — Guest 2007-07-28 03:41

No Xbox360 SKU has built-in wifi unless they changed it like yesterday. Learn your facts Bob

# Hmm — Guest 2007-07-28 03:43

I could swear PS3 also had series like Madden and GTA. Built-in Wifi (since when does the 360) Pretty sure it plays dvds and cds and works with MP3 players as well.

# wii luv wii — Guest 2007-07-28 03:52

i think that ps3 will sell more than normal, but will not do as well as xbox or wii. wii will kill(pwn). I hate ds, but it will beat my favorite psp.

# Huh? — Guest 2007-07-28 05:22

I thought i read somewhere Sony has been turning a profit in since late march...what's this dude talking about?

# ... — Guest 2007-07-28 05:47

um ps3 can play stuff too like i dunno, DVDs, DVD-R, DVD-RAM, CD, CD-R, CD-RW, Super Audio CD, VCD, Blu-ray, BD-R, has built in wifi too unlike 360 which requires an adapter, can play MP3, AAC, WMA, ATRAC, oh and when did GTA become an exclusive for 360? Last time i checked GTA used to be a PS2 exclusive until San ANdreas and the GTA double pack for Xbox.

# hmm — Guest 2007-07-28 07:56

im pretty sure the ps3 20gig has no wifi and gta became a xbpx 360 exclusive when rockstar wanted to back the winning console

# idiots — Guest 2007-07-28 08:06

haha i hate it when idiots talk lol

"XBOX 360 has promising titles like GTA, Madden and Halo". Are you an idiot, the PlayStation 3 also has GTA and Madden, and also has other killer titles that the press doesn't give enough recognition to. In fact, the PlayStation 3 is the only console with the widest variety of gameplay. It can also playback CDs, DVDs, Blu-Ray and MP3s. Don't forget WiFi. The only thing the XBOX 360 has then is Halo. People can't brag for things other consoles also have.

# Here's my two cents ^_^ — Guest 2007-07-28 08:31

Lol, don't get me wrong, but the 360 also has gears of war (I still prefer my PS3, but still). Dead Rising was an "ok" game in my opinion, it seemed a little bit repetitive after playing it for a while (But I like the concept). To me, it seems the Xbox 360 focuses more on sports games and FPS's, the Wii focuses mostly on their first-party characters, and the PS3 tries to get a balanced serving of every genre into its gaming library. And lol, apparently I haven't gotten my point out, but I highly doubt that Sony is truly losing money on each PS3 made, I think they know what they're doing, they either wouldn't waste their time making a console that would cause them to lose money, or they have quite a lot of pride in their new format, Blu-ray (I think I spelled it right lol). They've had so many years planning their next-gen console, that I think they would've have seen money loss coming from several miles away.

# Wifi is terrible for gaming online — AoxomamoxoA 2007-07-28 08:47

Wifi is terrible for gaming, any pc gamer will tell you that. It creates hellish lag and in the ps3s case it disconnects you every 3 seconds unless you open your router to the world so everyone can see what youre doing. For gaming, a cable is best. Another bad move by sony...

# lol nonsense nonsense nonsense — AoxomamoxoA 2007-07-28 08:52

um 360 can play all of those with the exception of SACDs, and of course BR and BR-Rs. Wifi is terrible for online gaming, and the 360 doesnt require you to have the adapter, its called choice little timmy. GTA was never exclusive to ps2. It started on PC all the way up until GTA:4 which was only exclusive for a short time (much like how MGS4 will be) and the same with GTA:SA. The 360 version of GTA4 will have exclusive episodic content making the 360 version somewhat exclusive and more complete than what the ps3 will be getting. Welcome to reality.

# ... — Guest 2007-07-28 09:12

Iv got my ps3 on wifi and I have NEVER had a problem with it. NEVER!!!!!!!

# MGS4 — Guest 2007-07-28 09:16

MGS4 is going to be way to big to fit on anything other than BR. So if it does get ported over to the 360 (and it wont) it wont be anything near the sheer awesomeness of the ps3 version!!!!!

# This article is bs! — Guest 2007-07-28 09:40

Sony is not losing any money on the PS3. Companies never introduce anything to the free market of capitalism to lose money. Man you guys need to take an economic class or understand the reason why these huge corporations exists, for the sole purpose of profits. Its like saying for every Honda car sold, Honda takes a 2000 dollar hit. No company in their right mind will take a huge gamble like that. The reason Microsoft and SONY losing money is simple, development costs for games went up! Slave labor and in house parts that cost virtually nothing to make is the name of the game. How these journalists come up with this nonsense always leaves me perplexed.

# ................... — Guest 2007-07-28 10:17

Sony is still losing money. Google it if you dont believe me. Also Dj Natas, your reasoning is just plain ignorant. First of all Sony and third parties sell accessories and games which recoupe losses. Plus sony recently announced a loss in there gaming division. I swear, people are just getting dumber and dumber. Some day the idiots are going to out number the people with half-a-brain. Youll see them going down the street with drool coming down there mouth. When youll greet them they reply with Dee Dee Dee. Damn I hate stupid people.

# But it's true... — Shatterdome 2007-07-28 10:28

IF you are using WEP or WAP encryption, then EVERY packet of information sent from and to your device on wi-fi, has to be encrypted and decrypted before it's read/sent.......this does, without any doubt create more lag then if on a wired connection. Not to mention wireless connections are just flakey period....

# Uhh... No.. — Guest 2007-07-28 10:29

Console makers freqently lose money on hardware manufacturing as the begining. Sony in particular can afford to do so since they recoup costs through movies and game sales on the console later. So its not as simple as your high school economic class might paint.

However, there is a good chance this is BS since other sources had reported Sony to be marginally profitible on PS3, and Microsoft to still be losing money as of their warranty extension. Nintendo has been profitable since almost the begining since they built on last gen technology.

# Like this one — Guest 2007-07-28 11:05

People who live in glass houses shouldn't throw stones... i.e. AoxomamoxoA

Just because you don't know how to set up your Wi-fi connection to have good signal strength and security WITHOUT using WEP, not to mention the fact that you dont' have experience using Wi-Fi since your imaginary PS3 doesn't work on your router, doesn't mean that you are qualified to spout off more of your random BS...

# AoxomamoxoA lives in dreamland — Guest 2007-07-28 11:12

Hahahaaaaaa... Yes, AoxomamoxoA , MGS4 will be a timed exclusive... Sure... Stop wishing for one so you can play on your 360, since your imaginary PS3 doesn't seem to work...

You will have to buy a PS3 to play MGS4, Welcome to reality...

# YTMND>PTKFGS — Guest 2007-07-28 11:33

Sony are not losing that much money. Maybe on the US and JP market, but those 0 they will rip off from the EU (like always, sons of B I A T C H E S) wich costs more thn 0 more and consedering that the europian Market is bigger than the JP and US combined (EU:480 milj. US&JP 422milj.) they will get their profit.

But still, where the hell does the premium have native Wifi? Ive found it nowhere and the fkng adapter stil costs about €75=105 yankee bucks

# typo — Guest 2007-07-28 11:35

those 0's are 300 dollars

# stupid sony fan — AoxomamoxoA 2007-07-28 12:28

*sigh* Ive taken pics of it, Ive written my name on paper to prove it was me, Ive even posted my PSN tag (Sublime1985), yet all of you have never tried to look me up. It just proves youre either too dumb to send a friend request, too dumb to seek the truth that is, or youre just afraid that I really do have a ps3 and a 360 and that the 360 is miles ahead of something you paid more for. Either look me up on PSN or dont. Ive given enough proof that i have a ps3, and theres no other way for me to prove it.

# SUBLIME1985 — AoxomamoxoA 2007-07-28 12:30

nope, my imaginary ps3 works just fine. want proof? send a friend request to me, Sublime1985.

# Dee Dee Dee — Guest 2007-07-28 14:28

You're going to find this song funny, and you don't even know it's about you...

Posting an overall loss for the quarter doesn't mean they are still losing on every console.

# What in the sam he. .. — Guest 2007-07-28 17:40

Ok how is it that it seems there are more 360 fanboys clammoring over PS3 exclusives coming to 360 than there are ps3 fanboys clammoring over 360 titles coming to ps3? For the last time, MGS4 is PS3 EXCLUSIVE it's been confirmed by Sony, Konami, and even MICROSOFT.

# ha ha ha ha — Guest 2007-07-28 19:35

Oh I sent you something but it's not a friend request.

# not just mp3's, movies, videos... — Guest 2007-07-28 22:00

i've installed linux on my PS3 and now i can do EVERYTHING

i want not just videos music photos...

try of installing linux on 360 and wii. Nah,you are not gonna get it to work...

# ...... — Guest 2007-07-29 05:18

this artical is a space filler and NOOBS.......

# hmmm... — Guest 2007-07-29 06:10

well everything they listed for the 360 except Halo the PS3 has as well, so i guess the positives for the 360 could have been:

- Has Halo. Otherwise pretty much sucks.

# sure? — Guest 2007-07-29 06:51

I'm pretty sure the 20 gig PS3 doesn't exist in retail stores anymore, and that GTA 4 is coming to both 360 and PS3...unless the PSN is sending me trailers for games I can only play on the 360.

# ... — Guest 2007-07-29 08:39

well at least ps3 and 360 isnt like wii where it screws you over and force you to use wifi unless you buy a crappy usb adapter. and while ms pays 50mil to get some episodic content, rockstars giving ps3 a whole exclusive game without being bribed by them.

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