One of the things I love about working at Chelsea Market is the wide variety of food selections. Now lets say that it’s 1pm and I go down to eat. One restaurant is out of food, one restaurant has each entree worth $50 and one restaurant has their food served with a coupon for pepto bismol good for up to 3 hours after your meal. Not very appetizing, is it?
It’s not, but this is your situation in the video game world. X-BOX, in their race to rush their product to the market, finds out that they will lose over 1 billion dollars thanks to being forced to extending their warranty. The cause? A defective hardware base, so now the warranty, which must be extended to guarantee good will among consumers, will eat up much of Microsoft’s profit. That would make Nintendo’s Wii the best choice…if you could find one sometime before Easter of 2009. That would cost them million of dollars worth of game players who would move over to the PS3…if Sony didn’t price themselves out of the market with a $499 tag – and that’s only if you buy the inferior version. By not taking the hit now and making it up on games later, SONY is also losing millions of dollars to a public – like me and a number of people in the office – who would pick one up if they only move the cost down.
It’s one thing to have a great advertising campaign. It’s another thing to deliver on it. Speaking of which, that’s what my solution would be on the food dilemma – call out and delivery. I guess that’s what internet gaming is for.