Low chip yields are causing Xbox 360 shortages
According to Next Generation Microsoft has attributed its XBox 360 production shortages to poor processor chip yields. Blackfriars had predicted this situation back in July based upon IBM's track record with Apple, and reiterated the chip production challenges in August. What was interesting in the article was that Microsoft had considered postponing the launch until chip yields were better; given the backlash that is currently occurring (especially given Microsoft's Live update slip-up last night, that might have been prudent.
Of course, Sony is subject to the same vagaries of IBM chip yields, and the cell processor is more complex than the XBox 360 one. But as is often the case, the issue here is not the technology problem, but how the business is marketing how it deals with problems. Microsoft has chosen to not talk about its chip yield problem until now, telling everyone that it was going to sell millions of XBox 360s in the first 90 days. Sony is taking a different tack. Sony has already been communicating challenging messages to consumers, such as the fact that its Playstation 3 will be "more expensive" (chip yield could be one of the factors that Sony is taking into account in this assessment). Given how much consumers value trust when buying expensive consumer electronics, I believe Sony's approach will garner it more customers and more customer loyalty than Microsoft's. The question is, how long will it take Microsoft to figure this out?
Of course, Sony is subject to the same vagaries of IBM chip yields, and the cell processor is more complex than the XBox 360 one. But as is often the case, the issue here is not the technology problem, but how the business is marketing how it deals with problems. Microsoft has chosen to not talk about its chip yield problem until now, telling everyone that it was going to sell millions of XBox 360s in the first 90 days. Sony is taking a different tack. Sony has already been communicating challenging messages to consumers, such as the fact that its Playstation 3 will be "more expensive" (chip yield could be one of the factors that Sony is taking into account in this assessment). Given how much consumers value trust when buying expensive consumer electronics, I believe Sony's approach will garner it more customers and more customer loyalty than Microsoft's. The question is, how long will it take Microsoft to figure this out?
Technorati Tags: Communication, Communications, Games, Gaming, Marketing, Microsoft, Playstation 3, XBox 360
posted by Carl Howe at
8:43 PM
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