He can make more money and invest his time into XIM4 which is the better business choice.
It's not complicated.
Yet another blanket statement that it doesn’t make business sense to roll out a firmware upgrade, without any explanation at all of WHY you think this is the case.
The only reason I can think of why a firmware upgrade doesn’t make business sense is if it takes ages to produce. I don’t have the tech knowledge to comment on this.
Subject to this point:
- A paid for firmware upgrade is something which he can sell at a very high profit margin. He designs the software. He encrypts it. People download it for payment. There are far fewer costs involved in that than in building and shipping an XIM4.
- Then release XIM4 down the line with additional functionality/ performance.
- Does the release of the firmware impact on XIM4 sales? Well, (i) arguably the effect would be limited assuming XIM4 has sufficient extra functionality/ performance, and (ii) even if it does, if the profit margin per unit on the new firmware is close enough to the projected figure for the XIM4, then it doesn’t matter anyway. He would need to give some thought to pricing the firmware. The question is NOT how much it costs him to develop/ sell the firmware and then add say a 10% margin (presumably this would result in a small sale price). The question is ‘what price will the market bear’ and it will bear a high price here. $30 doesn’t seem unreasonable to me.
- Also, give some thought to whether to limit the functionality of the firmware to make the XIM4 more desirable and/or whether to discount the XIM4 for people who bought the firmware. This isn’t black and white and also needs some thought. Depends on a lot of factors, including the expected capabilities of the XIM4.
- If it takes him 3-4 months to get to market with the XIM4 then without any doubt at all people will buy other things to allow them to use next gen. Money which could be going to OBsIV. As soon as he knows how long the firmware could take, and assuming it's under 1 month, he could release an announcement straight away saying how long it'll take to come out. That will stop people buying other stuff.
- Finally, from a customer engagement perspective, people (including me) want to play on next gen with M/KB as soon as possible.
Where exactly do you think I’m going wrong here? Apart from the point about the time cost of developing the firmware which I imagine only OBsIV himself can really comment on - and even he probably doesn’t have certainty as to the position until he receives a next gen console. And don’t you want to play with M/KB on next gen straight away??
(No more blanket statements like ‘it doesn’t make business sense’ or ‘it’s like asking MS for 1080p’ without covering explanations, please!
Microsoft will have very, very carefully considered the business case before making their decision on hardware capability, probably with hundreds of meetings between execs and tech people. It won’t just be some guy saying ‘I don’t want to,’ like a 7 year old!)