Microsoft lost $4 billion on the X-Box

bill makes that like.....in a week ahahaha,but anyway what do you expect it launched where they lost $200 per console.....and they were selling for $300

they droped down to $150,i know it was cheaper to produce but nvidia refused to lower prices of the GPU....which is why MS left them this console round
 
I believe Halo2 was the ONLY game to bring the software division into the black also, when it was released selling record numbers.

If you read the entire life story of the XBOX they knew they were going to lose money on it, it went from an idea to a shelf product in like 19 months total, and they knew they weren't going to have much software support, they just wanted to throw something out there to see how well it COULD compete with Sony.

Looks like they did their homework this round and actually trumped Sony in terms of having a product ready for launch. We'll see how they stack up once PS3 is released.
 
What few people realize is this: When you have enough money like microsoft to spend on a competing console, the loss doesn't matter. That's because one can easily think of it as 4 billion dollars of revenue that Sony did not get. That's why the money was spent, because it was kept from a competitor. How much of that 4 Billion was from a customer deciding between a PS2 and an Xbox? Likely quite a bit.
 
Thats not a good solid number. Its based off of projected profit/income meaning they are counting the % that they THINK they would have made if people wouldn't hack their xbox to store games or read pirated dvds. Im sure they lost a lot of money because it costs a lot to produce the actual system, but 4 billion is a bit steep for me to believe.
 
lloose said:
Thats not a good solid number. Its based off of projected profit/income meaning they are counting the % that they THINK they would have made if people wouldn't hack their xbox to store games or read pirated dvds. Im sure they lost a lot of money because it costs a lot to produce the actual system, but 4 billion is a bit steep for me to believe.
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I am finding it a little hard to believe as well.
 
It didn't say anything about that money being related to hacked ex-boxes. Consoles are generally sold at a loss, at least when first released (though the rumor is the new Gameboy Micro costs all of $8 for Nintendo to produce, so they are making out like bandits there). Microsoft lost a ton of money on hardware, and then even more in development on the software side, buying developers, paying them off for exclusive releases, doing its own in-house stuff, all the while there just aren't enough decent XBox games to make it all profitable, and not enough Xbox ownders to make the crappy games profitable.

If the Xbox had been released by any company other than Microsoft (or maybe Intel, or Wal-Mart, someone else with equally deep pockets) it would be a memory by now, and an embarassing fiasco the company would try to cover up. Microsoft has a chance to make the 360 profitable, but with the lack of next-gen DVD technology, specs pretty far inferior to the PS3, and still only a mediocre selection of exclusive games, I wouldn't put any money on it.
 
Of course PS3 has better specs.... because 1PPC+7SPE's=8 and xbox=3 power pc cores.

Ahem... nothing suggests sony has anything more than a better optical drive. Xbox360 has an interesting gpu we'll have to see in practice. The PS3's gpu may or may not be jup to snuff. You'd think cell would need to do some of the vertex shading or something. Some trick as xbox has that EDRam going for it and so on. The complexity of the cell in PS3 will make it difficult to utilize. Probably a better idea if they were first out of the gate with this kind of strategy. MS is stumbling on there marketing and the idea of a possible segregated market on HDD/no HDD and so on. I think if one were to jump to conclusions, from the looks of it, Sony is kind of late for how better it appears to be. There marketing will probably have to win out. Proof here it probably can. :eek:
 
Microsoft did indeed take a huge loss on the XBOX console, IE the actual hardware, but that’s ok ... Bill Gates found four million under his sofa cushions, so it’s all good.
 
Microsoft is a big company. Even they make lots of money. Their accounters will make it look like they are losing money. Then they can avoid lots of tax.
 
Traditionally the hardware starts off as a loss. It's the software that makes money. I'm not sure about the Xbox, but the PS2 also started off at a loss (and the PS3 will apparently be too, since the BD-drives will initially cost an arm to manufacture) and didn't become profitable until later. I *believe* the Gamecube was the first of this generation to cost less to manufacture than what it sold for.

Of course, for an initial console attempt, it's been a good try by Microsoft (except in the Japanese market, where it gets outsold by gameboy advances). Perhaps they have learned some new things for the new console war (and hopefully Nintendo too, we need more 3rd party!).
 
BillLeeLee said:
except in the Japanese market, where it gets outsold by gameboy advances.
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Hell I think the xbox is being out sold by second hand famcoms over there
:p Rim shot :D
 
[T5K]thrasher said:
Hell I think the xbox is being out sold by second hand famcoms over there
:p Rim shot :D
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The japanese market is the reason Xbox 360 looks like a fucking iPod on steroids. Japs love their cutey, curved, shiney and small electronic devices and hence it was one of many reasons the huge ass Xbox didn't do well, it didn't fit in with the Japanese electronic culture *no joke*
 
That, and the excessive amount of FPS games. I don't think the PS3 hardware is "far" superior to the X360, btw. I think it will be similar between the differences between the PS2 and X-Box this gen.
 
Agreed, the PS3 has the more advance optical drive, but that's about it. Can't wait for my 360
 
I'm going to wait on the release of the PS3 before I make my "other console" purchase choice. See which one offers me better games, to go along with my Rev.

I just don't buy into it that the PS3 is "waaaaaay" ahead, despite the hypings and the falsified figures. And yes, it does come with BlueRay, but when I want to play the HD-era DVD discs, I'll go and buy a $100 player for it, which usually does it better. It was reported that the X360 has a better GPU anyway, so it may end up being almost even.
 
I'm just gonna wait until all three have been released. I wanna test drive the Revolution before I make any commitments, and I want to see what games each system gets.
 
I have been a play Station Fan Boy for a long time, Bought PSX, the cute PS1, PS2, the cute and insanely small PS2. I know I will be buying a PS3 because of the games.

Halo was the only real game that did very well for the Xbox. WHile Xbox has better games over all than the Game Cube; PS2 still has better games and more games.

PS3 here I come.
 
Majin said:
Halo was the only real game that did very well for the Xbox. WHile Xbox has better games over all than the Game Cube;
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Absolutely not. As an Xbox owner I've never found anything interesting outside of PGR2 and Forza that wasn't out on some other platform.
 
Majin said:
I have been a play Station Fan Boy for a long time, Bought PSX, the cute PS1, PS2, the cute and insanely small PS2. I know I will be buying a PS3 because of the games.

Halo was the only real game that did very well for the Xbox. WHile Xbox has better games over all than the Game Cube; PS2 still has better games and more games.

PS3 here I come.
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guys please list a sony game besides GT,MGS:athritis,and GTA


forget FF,i like 7 thats it


because honestly i hate MGS(probably because aiming sucks with ps2 controller)i like forza better,and GTA is shit on ps2

personally multy platform games are better on xbox to,better with its controller to
 
Have you played God of War? That's not bad.

I play the old school games and fighting games on my PS2. Capcom vs. SNK 2, Marvel vs. Capcom 2, Metal Slug 4/5.

I've been play We Love Katamari lately, it's fun.
 
paranoia4422 said:
guys please list a sony game besides GT,MGS:athritis,and GTA


forget FF,i like 7 thats it


because honestly i hate MGS(probably because aiming sucks with ps2 controller)i like forza better,and GTA is shit on ps2

personally multy platform games are better on xbox to,better with its controller to
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all the RPG's you nitwit!
 
fodder0 said:
all the RPG's you nitwit!
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heh

like what?the 109370912 incarnations of FF,i like my morrowind bloodmoon tribunal and fable(aka american orgined rpgs,infact bethsada studios is a 30min drive away lol)
 
Morphos said:
What few people realize is this: When you have enough money like microsoft to spend on a competing console, the loss doesn't matter. That's because one can easily think of it as 4 billion dollars of revenue that Sony did not get. That's why the money was spent, because it was kept from a competitor. How much of that 4 Billion was from a customer deciding between a PS2 and an Xbox? Likely quite a bit.
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what economics class you taking?

A 4 bil loss by Microsoft does not necessarily mean 4 bil market share...

You can lose 1 bil dollars and not even get to market .....
 
paranoia4422 said:
heh

like what?the 109370912 incarnations of FF,i like my morrowind bloodmoon tribunal and fable(aka american orgined rpgs,infact bethsada studios is a 30min drive away lol)
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Yep final fantasy awesome, i'm glad you like your xbox/pc rpgs.
 
Luke_Skywalker said:
Yep final fantasy awesome, i'm glad you like your xbox/pc rpgs.
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tri-Ace has been stomping Square's franchises lately though; I have no clue what happened to the Squaresoft of old that was responsible for Vagrant Story and the like.
 
paranoia4422 said:
guys please list a sony game besides GT,MGS:athritis,and GTA


forget FF,i like 7 thats it


because honestly i hate MGS(probably because aiming sucks with ps2 controller)i like forza better,and GTA is shit on ps2

personally multy platform games are better on xbox to,better with its controller to
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both Katamari games
Tony games (are UNPLAYABLE on any other controller IMO)
Jak and Daxter games
Hitman


I don't know... PS2 was good. Well, the games were good. I hate the design of the actual console (less than that of the alternatives). I've treated my PS2 like gold and somehow the tray still sounds like an old man.
 
paranoia4422 said:
heh

like what?the 109370912 incarnations of FF,i like my morrowind bloodmoon tribunal and fable(aka american orgined rpgs,infact bethsada studios is a 30min drive away lol)
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There are some great non-FF RPGs -

Lunar 1 and 2 (best RPGs ever)
Xenosaga series
.hack series
Beyond Good and Evil (total sleeper but awesome game)

hopefully we see a new addition to the Parasite EVe series on PS3.

Also, the hardware is pretty car superior, I've red specs showing fill rates and polygon counts twice as high as that of the 360, but even if the hardware were not as advanced, I'd still buy it just for the Blu-Ray drive, it will probably be the only BR DVD player under $1000 when they hit the streets.
 
NulloModo said:
There are some great non-FF RPGs -

Lunar 1 and 2 (best RPGs ever)
Xenosaga series
.hack series
Beyond Good and Evil (total sleeper but awesome game)

hopefully we see a new addition to the Parasite EVe series on PS3.

Also, the hardware is pretty car superior, I've red specs showing fill rates and polygon counts twice as high as that of the 360, but even if the hardware were not as advanced, I'd still buy it just for the Blu-Ray drive, it will probably be the only BR DVD player under $1000 when they hit the streets.
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Parasite Eve was a fucked up game, especially 2
 
Hitman and Beyond Good and Evil were multi-platform. Lunar and Xenosaga were precisely the type of RPGs he is suggesting he doesn't enjoy. At least, I assume so. If he finds PC/Xbox RPGs more enjoyable it is probably because of their more faithful Role Playing format. IE: Create and develop a character. Lunar and Xenogears are rather static in that regard.

Final Fantasy Tactics, and Vagrant Story may be more up his ally.

Whoever mentioned it, though, I would really like another Parasite Eve. I never played 2. The idea of going typical survival horror didn't apeal to me. The original, though simple, and didn't make any sense in realitiy had an equipment mod setup was freakin' awesome. Same for the battle system. I guess I could deal without the battle system, but the weapon/armor/stat modding (as retarded and illogical as it is) needs to come back. I had so much fun pimping out my weapons! Making absurd weapon types like Cynide-Traquilizer-Incindiary Automatic Shotguns! Again, I don't care how retarded it was realistically (not to mention every gun used the same ammo) it was freakin' fun! I would love to see an FPS, or 3PS that had a weapon mod system like this. Something with a huge ammount of depth, letting you to tweak damage, rate of fire, clip size, range, accuracy, and transfer stupid shit like ammunition types from weapon to weapon. Imagine having a gun like I just described above in an FPS. That would be intensely unfair, but for anyone who played the original Parasite Eve would know, fun as hell!! Dammit! Throw in awesome weapon (ammo) attributes like armor piercing, and even depleted uranium core ammunition that will fire through 20, 30 targets. If the system is dumb, let's go all the hell out and let the player make the most badass small arms in the world with a fucking wrench! I'm serious! I loved it because it made no sense but let you do it anyway!

I'm exciting myself too much, not to mention getting off topic, so I think it is time to shut up. Of course, gimme a shout out if anyone agrees with me. :D
 
Anybody take a look at the source?
Don't they have articles about "batboy" and how Elvis was abducted by aliens and had 2 kids who morphed into Paris Hilton and David Blaine?

Bad BAD BAD! source of info.

You have all seen these in your supermarkets checkout and have all laughed at the outrageous headlines..
50930.gif
 
Yeah, not the supermarket tabloid. Besides, even this Inquirer got their info from Forbes, the link was included.
 
theelviscerator said:
what economics class you taking?

A 4 bil loss by Microsoft does not necessarily mean 4 bil market share...

You can lose 1 bil dollars and not even get to market .....
Click to expand...


Couldn't agree more, although this would be more an accounting or finance class (both of which I major in). $4 Billion loss can mean a crapload of things. First, the most expensive thing is R&D, which has no bearing on market share. You have to remember, Microsoft was not a console builder before, but was able to develop and build a working console in just over 18 months. Imagine the cost of starting a project of this scale from scratch, both in knowledge and technology. Add to this the overload of advertising and marketing expense Microsoft had to get the Xbox name out there. Also, revenue can be a touchy thing as well. They may be only including revenue from the sales of the physical console (which, if rumors are true, is an expense) and accessories, not the software and related contracts.

Sorry for the boring paragraph, but I did want to clarify that $4 bil loss might not be a loss of Sony's share of the market.

Zero
 
GAMECUBE HAD INNOVATION! INNOVATION! *Hypnotized* Innovation. :p
Who am I kidding? Gamecube had a crappy time. Some great games, but overall crappy time. :[
 
Haha, I'm not an expert at this, but I don't think they'd be losing 200 million per X-Box. Launching a console involves a lot of costs, like R&D and hardware prototyping, which I would think is a big factor in the costs of developing a new console. I heard that Nintendo spent 6 billion (yen? USD? no clue) on the development of the Revolution. Not sure how accurate that is though. :confused:
 
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