Tech: Stopping the Bleeding
If you play video games, you've probably heard all the "rumors" of Xbox 360 hardware malfunctions. Some 360 owners tell of mysterious disc drive errors, strange glitches in gameplay, and most of all, the dreaded red ring of death. My Super Nintendo from 1991 still works fine, even after several years of daily use and a decade of being mothballed. I'm not sure why Microsoft, the world's largest software company and one of the world's largest companies period, can't get its act together.
The Sony PlayStation 3 has also had its troubles. Besides the scarcity of games (which has been a problem for all three of the major video game console makers), the PS3 launched at the high price of $600. Supplies were limited for the Christmas rush, but afterwards, PS3 demand predictably dropped sharply (call me crazy, but second-rate games like Motorstorm and Resistance aren't system sellers).
It comes as no surprise, then, that before E3, the industry's largest trade convention, both companies made big announcements. Microsoft will extend all Xbox 360 warranties by 3 years, and Sony will cut PS3 prices in North America by $100. While this is great news for gamers, it's not very good news for either company, since the warranty extension will cost an estimated 1 billion dollars for MS and Sony's already taking a loss on each PS3 sold.
Microsoft has been telling gamers for months now that there's no problem with the 360, when it's been apparent to everybody that an inordinate number of 360s are failing. Offering to extend warranties a year and a half after launch seems like a slap in the face, or at least a calculated move to avoid a massive lawsuit. Sony's stance on the PS3's price has been stubborn at best and arrogant at worst, so their $100 price drop six months after launch seems like a forced move.
I suppose the numbers don't lie. Microsoft has sold about 12 million 360s worldwide in 1-1/2 years. Sony has sold 4 million PS3s in 6 months. Nintendo has sold 8 million Wiis in 6 months. This next round of the console war should be very interesting...
The Sony PlayStation 3 has also had its troubles. Besides the scarcity of games (which has been a problem for all three of the major video game console makers), the PS3 launched at the high price of $600. Supplies were limited for the Christmas rush, but afterwards, PS3 demand predictably dropped sharply (call me crazy, but second-rate games like Motorstorm and Resistance aren't system sellers).
It comes as no surprise, then, that before E3, the industry's largest trade convention, both companies made big announcements. Microsoft will extend all Xbox 360 warranties by 3 years, and Sony will cut PS3 prices in North America by $100. While this is great news for gamers, it's not very good news for either company, since the warranty extension will cost an estimated 1 billion dollars for MS and Sony's already taking a loss on each PS3 sold.
Microsoft has been telling gamers for months now that there's no problem with the 360, when it's been apparent to everybody that an inordinate number of 360s are failing. Offering to extend warranties a year and a half after launch seems like a slap in the face, or at least a calculated move to avoid a massive lawsuit. Sony's stance on the PS3's price has been stubborn at best and arrogant at worst, so their $100 price drop six months after launch seems like a forced move.
I suppose the numbers don't lie. Microsoft has sold about 12 million 360s worldwide in 1-1/2 years. Sony has sold 4 million PS3s in 6 months. Nintendo has sold 8 million Wiis in 6 months. This next round of the console war should be very interesting...
posted by Mulliga @ 9:05 PM
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