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Pachter: 'Microsoft Desperately Wants to Win' - VGChartz

Pachter: 'Microsoft Desperately Wants to Win' - News

by William D'Angelo , posted on 12 March 2015 / 5,173 Views

Wedbush Securities’ Michael Pachter has told Gaming Bolt that Microsoft is doing whatever it can to be number one in the console wars. He said that winning is more important than being profitable in the short term, since he knows that people will buy software to make up the difference with the recent $50 price cut.

"Microsoft desperately wants to win," said Pachter. "Winning matters more to them than short term profit and I emphasize short term because I think that they understand that the profit stream from an Xbox One owner is a long one, so if you give up fifty bucks of profit now because you price it at $349 instead of $399, you’re going to make that $50 back later because people will buy tons of software."

"I think that they’re being pretty smart about it," he continued. "I think they’re being pretty disciplined about it, but yes, I do think the price will stay down. The interesting thing is Sony’s probably not feeling too compelled to cut, so I think Sony’s probably going to stay at $399 and I’m curious to see if the Xbox One does outsell the PS4 at the lower price point because again, holiday was kind of mixed up with a bunch of bundles. We were getting a lot of free software. I don’t think – that Assassin’s Creed bundle was around in January, but I don’t think we’re going to keep getting software. Those bundles kind of are ending."

Pachter added that Microsoft was suprised at how much Xbox One sales dropped after the temporary price cut ended and the price went back up to $399, from $349. Microsoft quickly dropped the price of the Xbox One back down to $349 and told Pachter that sales for the Xbox One have improved.

"You know, I spoke with Microsoft after the numbers came out in January," said Pachter," and in a not so defensive way, but clearly they were shaken that after the price went back up to $399 that they fell behind again, and they assured me that since they cut the price in mid-month that their box started selling better. I don’t think they know the cadence of PlayStation 4 sales, so I’m not sure that Microsoft can actually gauge whether they outsold PS4 or not, but there was an increase in sales." 

 

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A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel dedicated to gaming Let's Plays and tutorials. Outside, in the real world, he has a passion for the outdoors which includes everything from hiking to having received his B.A. in Environmental Studies. You can contact the author at wdangelo@vgchartz.com or on Twitter @TrunksWD.


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29 Comments

Tachikoma (on 12 March 2015)

xbox 360 was cheaper than the ps3 for its entire lifetime, still caught up on that 1 year headstart, now this gen they dont have a headstart and are already 9m behind. However you paint your gnomes, it doesnt look good.


NuckinFutz2014 (on 12 March 2015)

Well Microsoft is desperate they won't be winning anything this console generation. It's over already and may get worse if anything...


sales2099 (on 12 March 2015)

You know they aren't last place. Better then PS3 for most of last gen.


  • -2
ExplodingBlock (on 12 March 2015)

Pacther desperately wants attention


bradm1978 (on 12 March 2015)

Tell that to the Yankees and everyone else that spent a lot of money in order to win and ended up losing big. If Microsoft didn't have all that money lying around from Windows and Android Royalties, this would be a much bigger story. In fact they would be another SEGA in the making. The real question is how much longer will the board continue to support the brand. I would bet next month Microsoft reports another down month for profits. Meanwhile PS4 is selling at a pace no Xbox console has ever achieved. They may want to win, but in reality they aren't going to win. You can take that to the bank.


Scisca (on 12 March 2015)

What Android royalties?


  • +1
HylianSwordsman (on 13 March 2015)

By Android I assume you mean Windows Phone?


  • +1
TheGreatGamerGod (on 14 March 2015)

No he's right, MS hold most of the patents for technology in android phones so they net billions annually from it by doing absolutely nothing.


  • 0
Nem (on 12 March 2015)

Microsoft is desperate to get our money, not exactly to please us. Wanting and doing what is needed to achieve the win are different things. Microsoft made it clear with their behaviour last gen and early this gen that they do not care once they have our hardware money in. Especially in europe, that is an image difficult to forget. It will takes years to repair it.


kraenk12 (on 12 March 2015)

Microsoft really seems to be out of touch with reality. Typical american cocky behaviour. They only had a chance last gen because Sony made a huge mistake in launching the PS3 a year late and more expensive. If MS really is in for the win prepare for a 199,- XBox One before Xmas. Add your comment...


binary solo (on 12 March 2015)

Pretty sure Pachter is only talking USA, esp since he is talking in terms of the effect of the $50 price cut.


loy310 (on 12 March 2015)

Unlike the PS3 I don't think the Xbox brand is strong enough to bounce back from such a colossal fumble. I thought that after the 180 and the price reductions folks would gravitate back to XBox especially North America, but that has not been the case. At this point in its life the PS3 was making a serious comeback, I am not seeing that for the XBox. Good luck to them.


GameAnalyser (on 13 March 2015)

Ps3 never had to make a comeback....it was sailing it's usual course until 2009 slim catapulted it to ahead of Xbox 360 progress.


  • 0
ReimTime (on 12 March 2015)

Who is this Pachter guy? I've seen several posts from him and it seems he earned his profession based on a major in Clickbait from IGN college


kraenk12 (on 12 March 2015)

With PS4 launch in China and Bloodborne release it is only going to get worse, especially since Japan seems to catch up lately.


SamLeheny (on 13 March 2015)

Desperate corporations who can afford to be dicks scare me...


FujiokaMidori (on 13 March 2015)

"Microsoft wants to win" OMG I WONDER IF IT TOOK HIM SEVERAL YEARS OF INVESTIGATION TO FIGURE THAT ONE OUT


ikki5 (on 12 March 2015)

I feel like this guy is anti everything but Sony.... Why do people still listen to him and how does he make money with the stuff he says. lol Maybe Sony is paying him to praise it but then... even that is unlikely as Sony probably sees him as a moron as well.


Landale_Star (on 12 March 2015)

Does Patcher have a second job? One where he is useful? I hope this video game analyst thing is just a hobby for him. Of course Microsoft want to win, so does Sony and so does Nintendo. He really isn't saying anything here that is insightful.


LivingMetal (on 12 March 2015)

Business is about providing the consumer a quality product at a reasonable price that the customer actually wants. Then whether you're number one or not becomes secondary. Otherwise, you're conducting bad business.


kraenk12 (on 12 March 2015)

It is not irrelevant since it does have an influence on th image of the brand if twice or more people decide to go with the competitor. It also influences publisher and developer decisions.


  • -2
mjk45 (on 12 March 2015)

No business is about making a profit .if that is done by making a quality product at a reasonable price all the better , but it looks like the customer wants the PS4 and sees it as the better product and the price reasonable despite the price difference.


  • -1
assclown (on 12 March 2015)

can agree more (wonder if mod will say i troll again MS) HUMM


qwertyDANIELqwerty (on 12 March 2015)

He is right. I don't care if you hat the guy, I hate him to, but he is not wrong just because you hate them. Quit acting like a 3rd grader and being so ignorant.


Ganoncrotch (on 12 March 2015)

I don't hat him.


  • +1
LivingMetal (on 12 March 2015)

Business is about providing the consumer a quality product at a reasonable price that the customer actually wants. Then whether you're number one or not becomes secondary. Otherwise, you're conducting bad business.


kraenk (on 12 March 2015)

why do you post the same stuff again?


  • 0

Comments below voting threshold

sales2099 (on 12 March 2015)

They are winning our hearts, and they aren't last place. That's what counts ;)


WebMasterFlex (on 12 March 2015)

It's okay buddy. Ass beating is harsh tho..


  • +3