Console contract options are GOOD for the industry (intelligent discussion only)

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reach3

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#1 reach3
Member since 2012 • 1600 Posts

Console contracts were a CRITICAL necessity to maintain powerful systems and innovation. Now hear me out first.

The simple truth is, manufacturers have always done a horrible business practice, selling their consoles at a loss (mostly with the exception of Nintendo, they are smart). This business method puts the manufacturers deep in the red. Microsoft and Sony lost millions and millions doing this. The business model has to change. They can no longer take huge losses. They all want to be profitable day one, its the only way to survive. Nintendo has mostly always been profitable day one, they demonstrate how to run a business for profits.

So, the only way to be profitable nowadays, it to keep costs low. This will result in a far stripped down hardware console, lossing substantial potential power to remain profitable. The powerhouse consoles we all waited to hear and be announced and drool over specs, will all be long gone with this business model. Innovation and leaps forward, will be killed.

OR

They can have both powerful hardware and profits, IF the manufacturers adapt to the current industry, rather than stick to archaic business modeling.This new way of allowing powerful hardware, and remaining profitable, is contracts. Offer a powerful console with a cheap investment year by year contract. In the end, you pay a little more than you would have if you saved up.

What people need to realize is, this is an OPTION. A necessary one in fact. The masses will surely love it, but some hardcore gamers wont. The thing is, you don't have to get into the contract. There will surely be a separate console without a contract for $400-$500 separately, but many families wont be able to afford it.Please realize the good things in this model. It will allow a leap forward in tech, while remaining profitable. We would have barely better than current gen tech if someone didn't come up with this plan.

Its a great, and necessary option for the industry to offer powerful consoles and not take huge losses. You don't have to be in a contract, you can still buy an expensive separate product. There is an option for both hardcores and casual. It is not a bad thing, but a necessity for the industry to adapt and survive in the current environment, the old powerful hardware/huge losses model is heavily outdated, and no company will ever use it again.

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freedomfreak

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#2 freedomfreak  Online
Member since 2004 • 52566 Posts

>reach thread

>intelligent discussion

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ShadowDeathX

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#3 ShadowDeathX
Member since 2006 • 11699 Posts
I can see where it would fit in and I think it would work very well. I'm not falling for the contract thing at all though. Consoles are nice and all, but they aren't my primary gaming platform to keep dumping $10 - $20 a month for a silly contract. A good option for single console-only gamers. Not for me though.
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Nintendo_Ownes7

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#4 Nintendo_Ownes7
Member since 2005 • 30973 Posts

I might be good for the industry but it might be horrible for consumers because they are forced to have a contract for a couple of years what if they change there mind and don't feel like paying for something that they don't use anymore.

What if their console breaks do they still have to pay off the contract for that broken console?

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psymon100

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#5 psymon100
Member since 2012 • 6835 Posts

Choice is important. If I can choose to be a saavy consumer, save my pennies, get the best deal and buy outright, then I'm happy. If Microsoft/Sony/Nintendo want to pretend they're finance companies too, well, why the hell not? Consumers who don't care about paying interest will probably be happy enough paying any extra.

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Chris_Williams

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#6 Chris_Williams
Member since 2009 • 14882 Posts

I guarantee you if sony was doing this you would be on the opposite side of your argument.

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lundy86_4

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#7 lundy86_4
Member since 2003 • 62046 Posts

This will not spark intelligent discussion. The OP isn't even all that intelligent... It's pretty basic.

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GamingGod999

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#8 GamingGod999
Member since 2011 • 3135 Posts

I thought you was leaving System Wars?

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reach3

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#9 reach3
Member since 2012 • 1600 Posts

I thought you was leaving System Wars?

GamingGod999
I just had to get this off my chest. I am not back full time I assure you
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ShadowDeathX

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#10 ShadowDeathX
Member since 2006 • 11699 Posts
In addition, 1st party makers will be less likely to invest in first party games as much. All they require from the buyer is enough interest to get them to sigh the contract, not a long lasting relationship.
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carlisledavid79

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#11 carlisledavid79
Member since 2006 • 10522 Posts
Whopper Vs Big Mac go go go
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slimjimbadboy

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#12 slimjimbadboy
Member since 2006 • 1731 Posts

This thread reminds me of my sig.

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GamingGod999

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#13 GamingGod999
Member since 2011 • 3135 Posts

At least he's presented his views (Idiotic or not) in a respectable manner.

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MonsieurX

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#14 MonsieurX
Member since 2008 • 39858 Posts
"powerful systems and innovation" Why didn't they offer it when they launched the 360 then?
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Nintendo_Ownes7

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#16 Nintendo_Ownes7
Member since 2005 • 30973 Posts

Whopper Vs Big Mac go go go carlisledavid79
When I go to either of those places I don't really order any burgers there because I'm picky and I try to order things people can't mess up.

But I guess Whopper it tastes better.

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GamingGod999

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#17 GamingGod999
Member since 2011 • 3135 Posts

This thread reminds me of my sig.

slimjimbadboy

:o

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Basinboy

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#18 Basinboy
Member since 2003 • 14560 Posts

[QUOTE="slimjimbadboy"]

This thread reminds me of my sig.

GamingGod999

:o

This

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GamerwillzPS

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#19 GamerwillzPS
Member since 2012 • 8531 Posts

I don't like this model. I think the $99 Xbox 360 is bad. Very bad.

I would rather to pay £400 for a console and just use it without any kind of contract. It is preferable for me to play online for free. This is why I prefer the PS3, and the PS4 is surely going to be my only console in next generation.

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slimjimbadboy

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#21 slimjimbadboy
Member since 2006 • 1731 Posts

[QUOTE="slimjimbadboy"]

This thread reminds me of my sig.

Desmonic

Holy sh!t at that accident though ..:?

lol, I didn't realize that most of you were ok to see a guy reel in terror as your character shoots his jaw off yet a non-fatal accident is too much?

I am dissapointed that gamespot won't accept my attempts to edit the size so I've desided to share the rainbow.

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lundy86_4

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#22 lundy86_4
Member since 2003 • 62046 Posts

Whopper Vs Big Mac go go go carlisledavid79

Whop-Big-Mac!

I dunno... I have to say Whopper.

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JC_Spot

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#23 JC_Spot
Member since 2012 • 431 Posts
I thought you left? Just when I thought there'd be one less idiot on this board....
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GamingGod999

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#24 GamingGod999
Member since 2011 • 3135 Posts

[QUOTE="Desmonic"]

[QUOTE="slimjimbadboy"]

This thread reminds me of my sig.

slimjimbadboy

Holy sh!t at that accident though ..:?

lol, I didn't realize that most of you were ok to see a guy reel in terror as your character shoots his jaw off yet a non-fatal accident is too much?

I am dissapointed that gamespot won't accept my attempts to edit the size so I've desided to share the rainbow.

Stop being a pushover!

[spoiler] :P [/spoiler]

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SolidSnake35

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#25 SolidSnake35
Member since 2005 • 58971 Posts
It's called a credit card. Oh and they're usually a bad idea.
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Krelian-co

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#27 Krelian-co
Member since 2006 • 13274 Posts

a. didn't you gtfo? stop nerd raging and do it

b. seriously, gtfo

c. intelligent and reach are not compatible in the same post, so thread failed at its very creation

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Deathtransit

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#28 Deathtransit
Member since 2007 • 3086 Posts
Console contracts = me migrating to PC.
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g0ddyX

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#29 g0ddyX
Member since 2005 • 3914 Posts

Companies who seek profits and sales =
BAD gaming companies and BAD for the industry but are GOOD Business companies.

Companies who seek to improve the level of gaming and new IP's, whatever the costs =
GOOD gaming companies and GOOD for the industry but are BAD Business companies.

In a realistic family...
Let the KIDS play with the poor material and let the ADULTS play with better material = All round HAPPY companies and customers cos they all benefit.

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deactivated-5f26ed7cf0697

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#30 deactivated-5f26ed7cf0697
Member since 2002 • 7110 Posts

A reach3 thread

reach3 = babyCry_1517668c.jpg

Almost everyone else ohdamnlol.gif at you

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spiderluck

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#31 spiderluck
Member since 2012 • 2405 Posts

A brilliant idea whose time has come, hence the reason sony fanboys are against it

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lundy86_4

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#32 lundy86_4
Member since 2003 • 62046 Posts

It's called a credit card. Oh and they're usually a bad idea.SolidSnake35

On the contrary, i'd disagree. Credit scores are a necessity of life nowadays. Good look getting a mortgage with a poor/no credit score.

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parkurtommo

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#33 parkurtommo
Member since 2009 • 28295 Posts
[QUOTE="carlisledavid79"]Whopper Vs Big Mac go go go

Whooper or something I've never had either.
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savagetwinkie

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#34 savagetwinkie
Member since 2008 • 7981 Posts

the problem isn't really the consoles..

its the software for the consoles, M$/sony should easily be able to make it back through royalties but game companies are folding left and right over over-budgeted games. If something needs to change its the resource management for software developers.

edit: although M$ new payment model should help move more consoles... which should help sell more software in the long run

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4dr1el

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#35 4dr1el
Member since 2012 • 2380 Posts

They could be good if they were not a blatant rip-off like the 360 one

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GamerwillzPS

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#36 GamerwillzPS
Member since 2012 • 8531 Posts

You people who insulted reach3 should be ashamed. This is a good thread. Why not at least praise him for that?

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KungfuKitten

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#37 KungfuKitten
Member since 2006 • 27389 Posts

They can be good if used properly. And that is where things go wrong.
Consumers buy them a little too easily.
And the manufacturers are unlikely to make them a decent deal. They already hold so much power over consumers that you have to wonder what situation you'd create. Banned consoles that are still being paid for, broken consoles with extra high repair costs.

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parkurtommo

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#38 parkurtommo
Member since 2009 • 28295 Posts

You people who insulted reach3 should be ashamed. This is a good thread. Why not at least praise him for that?

GamerwillzPS
IT IS AN EXCELLENT THREAD KEEP UP THE GOOD WORK TC
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Bebi_vegeta

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#39 Bebi_vegeta
Member since 2003 • 13558 Posts

Console contracts were a CRITICAL necessity to maintain powerful systems and innovation. Now hear me out first.

The simple truth is, manufacturers have always done a horrible business practice, selling their consoles at a loss (mostly with the exception of Nintendo, they are smart). This business method puts the manufacturers deep in the red. Microsoft and Sony lost millions and millions doing this. The business model has to change. They can no longer take huge losses. They all want to be profitable day one, its the only way to survive. Nintendo has mostly always been profitable day one, they demonstrate how to run a business for profits.

So, the only way to be profitable nowadays, it to keep costs low. This will result in a far stripped down hardware console, lossing substantial potential power to remain profitable. The powerhouse consoles we all waited to hear and be announced and drool over specs, will all be long gone with this business model. Innovation and leaps forward, will be killed.

OR

They can have both powerful hardware and profits, IF the manufacturers adapt to the current industry, rather than stick to archaic business modeling.This new way of allowing powerful hardware, and remaining profitable, is contracts. Offer a powerful console with a cheap investment year by year contract. In the end, you pay a little more than you would have if you saved up.

What people need to realize is, this is an OPTION. A necessary one in fact. The masses will surely love it, but some hardcore gamers wont. The thing is, you don't have to get into the contract. There will surely be a separate console without a contract for $400-$500 separately, but many families wont be able to afford it.Please realize the good things in this model. It will allow a leap forward in tech, while remaining profitable. We would have barely better than current gen tech if someone didn't come up with this plan.

Its a great, and necessary option for the industry to offer powerful consoles and not take huge losses. You don't have to be in a contract, you can still buy an expensive separate product. There is an option for both hardcores and casual. It is not a bad thing, but a necessity for the industry to adapt and survive in the current environment, the old powerful hardware/huge losses model is heavily outdated, and no company will ever use it again.

reach3

What is this, you said you were leaving!?!?!?!

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chilly-chill

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#40 chilly-chill
Member since 2010 • 8902 Posts
Whopper
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slimjimbadboy

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#41 slimjimbadboy
Member since 2006 • 1731 Posts

[QUOTE="slimjimbadboy"]

[QUOTE="Desmonic"] Holy sh!t at that accident though ..:?

GamingGod999

lol, I didn't realize that most of you were ok to see a guy reel in terror as your character shoots his jaw off yet a non-fatal accident is too much?

I am dissapointed that gamespot won't accept my attempts to edit the size so I've desided to share the rainbow.

Stop being a pushover!

[spoiler] :P [/spoiler]

Haha, that got a laugh otta me :P

If I could have edited the crash down to half the size, I would have kept it but rainbows are just as fun.

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SPYDER0416

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#42 SPYDER0416
Member since 2008 • 16736 Posts

[QUOTE="GamingGod999"]

I thought you was leaving System Wars?

reach3

I just had to get this off my chest. I am not back full time I assure you

Thank God, we have enough fanboys and fakeboys on the board.

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OhSnapitz

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#43 OhSnapitz
Member since 2002 • 19282 Posts

I might be good for the industry but it might be horrible for consumers because they are forced to have a contract for a couple of years what if they change there mind and don't feel like paying for something that they don't use anymore.

What if their console breaks do they still have to pay off the contract for that broken console?

Nintendo_Ownes7

That my friend is the million dollar question.. If your 720 RR's 4 times ( :evil: ) would your "contract" cover losses, hardware failure, mishaps.. because currently that's a separate fee for cell phone providers.. using it as an example. If it does.. that may not be the worst thing in the world.

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jg4xchamp

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#44 jg4xchamp
Member since 2006 • 64057 Posts

>Intelligent Discussion
>System Wars

6afa3192.gif

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Moriarity_

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#45 Moriarity_
Member since 2011 • 1332 Posts

>reach thread

>intelligent discussion

freedomfreak
/thread
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clone01

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#46 clone01
Member since 2003 • 29845 Posts

Console contracts were a CRITICAL necessity to maintain powerful systems and innovation. Now hear me out first.

The simple truth is, manufacturers have always done a horrible business practice, selling their consoles at a loss (mostly with the exception of Nintendo, they are smart). This business method puts the manufacturers deep in the red. Microsoft and Sony lost millions and millions doing this. The business model has to change. They can no longer take huge losses. They all want to be profitable day one, its the only way to survive. Nintendo has mostly always been profitable day one, they demonstrate how to run a business for profits.

So, the only way to be profitable nowadays, it to keep costs low. This will result in a far stripped down hardware console, lossing substantial potential power to remain profitable. The powerhouse consoles we all waited to hear and be announced and drool over specs, will all be long gone with this business model. Innovation and leaps forward, will be killed.

OR

They can have both powerful hardware and profits, IF the manufacturers adapt to the current industry, rather than stick to archaic business modeling.This new way of allowing powerful hardware, and remaining profitable, is contracts. Offer a powerful console with a cheap investment year by year contract. In the end, you pay a little more than you would have if you saved up.

What people need to realize is, this is an OPTION. A necessary one in fact. The masses will surely love it, but some hardcore gamers wont. The thing is, you don't have to get into the contract. There will surely be a separate console without a contract for $400-$500 separately, but many families wont be able to afford it.Please realize the good things in this model. It will allow a leap forward in tech, while remaining profitable. We would have barely better than current gen tech if someone didn't come up with this plan.

Its a great, and necessary option for the industry to offer powerful consoles and not take huge losses. You don't have to be in a contract, you can still buy an expensive separate product. There is an option for both hardcores and casual. It is not a bad thing, but a necessity for the industry to adapt and survive in the current environment, the old powerful hardware/huge losses model is heavily outdated, and no company will ever use it again.

reach3
How could it possibly an intelligent discussion if you made it? BTW, I thought you were taking some time off from here. Was that just a tease?
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santoron

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#47 santoron
Member since 2006 • 8584 Posts
Good for the industry? Not really. When you're locking people into multi year contracts just to get the basic hardware, they aren't likely to have the disposable income to make many game purchases. And charging the poorest people extra just makes it harder for them. Good for MS? Sure, I guess. But when did people start thinking what was good for multi hundred billion dollar corporations was important? How about what's good for the consumer?
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psymon100

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#48 psymon100
Member since 2012 • 6835 Posts
Good for the industry? Not really. When you're locking people into multi year contracts just to get the basic hardware, they aren't likely to have the disposable income to make many game purchasessantoron
A compelling point!
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BPoole96

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#49 BPoole96
Member since 2008 • 22818 Posts

It is impossible to have an intelligent discussion with you, TC.

Also, didn't you say you were leaving SW a few days ago when you had yet another butthurt meltdown?

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ActicEdge

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#50 ActicEdge
Member since 2008 • 24492 Posts

I don't see why you guys can't focus on the points he made instead of bringing up stuff that actually stops any actual discussion from taking place. Anyway, I don't see console contracts working unless the consoles can be made into something that is more of an investment than a box to play games.