After I wrote the article about Microsoft's actions to battle the launch of the PS3 and the Wii, I started thinking:
Why doesn't Microsoft buy all 400,000 PS3 launch units? Let's imagine if Microsoft had 400 rooms that looked like this:
100 ps3's from Japan
So 400,000 PS3 units were projected by Sony, let's say an average price of $650 with tax for each unit. That would mean the whole lot would cost $260 Million, which is @20% of what Microsoft Entertainment lost in 2006. (Microsoft's Entertainment Division has lost $1.26 Billion in fiscal year 2006. source next-gen.biz) If they keep it away from the public during the busy gift buying Christmas holiday, people will just buy an Xbox 360 or a Nintendo Wii. But we're talking about slowing down Sony here.
After all the hype has finished for the PS3, maybe by summer 2007, and Sony has ramped up production so that they can sell again to the public, Microsoft can then donate all 400,000 units to charity. They earned $3.48 billion in the first fiscal quarter of 2007, so the $260 million write-off would help with taxes.
It won't make sure the PS3 fails but it will slow the sales and development down. Also there could be a big backlash against Microsoft from the public if this idea happened. I wonder if there are any laws preventing this? It's a bit too late now though.
Why doesn't Microsoft buy all 400,000 PS3 launch units? Let's imagine if Microsoft had 400 rooms that looked like this:
100 ps3's from JapanSo 400,000 PS3 units were projected by Sony, let's say an average price of $650 with tax for each unit. That would mean the whole lot would cost $260 Million, which is @20% of what Microsoft Entertainment lost in 2006. (Microsoft's Entertainment Division has lost $1.26 Billion in fiscal year 2006. source next-gen.biz) If they keep it away from the public during the busy gift buying Christmas holiday, people will just buy an Xbox 360 or a Nintendo Wii. But we're talking about slowing down Sony here.
After all the hype has finished for the PS3, maybe by summer 2007, and Sony has ramped up production so that they can sell again to the public, Microsoft can then donate all 400,000 units to charity. They earned $3.48 billion in the first fiscal quarter of 2007, so the $260 million write-off would help with taxes.
It won't make sure the PS3 fails but it will slow the sales and development down. Also there could be a big backlash against Microsoft from the public if this idea happened. I wonder if there are any laws preventing this? It's a bit too late now though.
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